The state government has responded to criticism from Member for Northern Victoria Rikkie-Lee Tyrrell following Premier Daniel Andrews’ announcement that gas connections in new Victorian homes would be banned from next year.
The One Nation MP called on the government to provide an explanation regarding its assessment of the effects of the gas ban on small businesses within Victoria’s gas appliance retail sector.
She questioned whether the government had anticipated the ramifications for Victorian gas retailers, including the potential burden of excessive stock.
Ms Tyrrell expressed her concern over the impact of this ban on small, often family-owned, businesses that had already been grappling with the aftermath of the pandemic lockdowns, rising operational costs and reduced revenue due to the escalating cost-of-living crisis.
“It’s crucial for Victorians to understand whether the Andrews Government knowingly jeopardised these businesses as a consequence of their gas ban or simply overlooked their plight,” she said.
She said gas appliance businesses had invested significantly in preparing stock for the upcoming year, with limited means to recover their expenses.
“What the hell are these small businesses supposed to do with all this excess stock?” Ms Tyrrell said.
“These businesses, employing hundreds of Victorians, deserve an answer from the Andrews Government.”
In response, the government pointed out that the change directly affected new homes requiring a planning permit, which will be required to be all-electric from January 1, 2024.
This means new homes and residential subdivisions that require a planning permit will not be able to connect to the gas network.
The government said this would apply to new planning permit applications submitted from January 1, 2024 for new dwellings in both greenfield and infill sites, and apartments, as well as all new public and social housing delivered by Homes Victoria.
The government emphasised that the new policy would not impact new dwellings that did not require a planning permit, existing homes that had an existing gas connection, or renovations and extensions to existing dwellings.
The government said there would continue to be strong demand for plumbers and gas-fitters to install replacement gas appliances in Victoria’s homes (a market much larger than that for new homes).
In 2022 the Gas Substitution Roadmap removed the requirement for new housing estates to be connected to the reticulated gas network, and removed rebates for installing home gas appliances.
The government said the change should have put the gas industry on notice that demand for gas and gas appliances would decline.
“We’re working closely with industry, including gas appliance manufacturers and retailers, the building and construction sector, local government, trade unions and consumer organisations to manage business, workforce and consumer impacts and support the sector in the transition,” a government spokesperson said.
“Going all-electric will save up households up to $1000 off their annual energy bills while reducing household emissions, and up to $2200 if you have solar as well.”