Second Reading
Danny O’BRIEN (Gippsland South) (15:00): I am pleased to continue speaking on this bill. At the break I was just getting on to the issue of the effective gas ban that is included in this bill, and I do raise my concerns on that from the perspective of the representative of the region that historically has produced virtually all of Victoria’s gas and indeed all of the east coast gas originally. We have been doing so for 55 years in Bass Strait, coming into my electorate, to Longford, which has then provided, as I said, 90 per cent, up until recent years, of the gas.
Richard Riordan interjected.
Danny O’BRIEN: Where does it come from now? It is a fact that gas is running out. Esso expects that within the next 11 or so years the gas in Bass Strait will run out. I do hear a lot of debate in my local community in particular that there is heaps of gas out there, and I believe that is correct. There is heaps of gas out there in Bass Strait. Unfortunately, it is either very deep or very contaminated and therefore very expensive to produce and is not ever likely to be commercial, although at the rate that gas prices are increasing that might change, you never know. But that gas and oil over the decades has been fantastic for our region and has provided very good, very high paying jobs for those working either at the gas plant or offshore. Obviously the offshore component in particular is a very difficult job for people to do, to be away week on, week off – or two weeks on, two weeks off, as most are these days. But there have been fantastic benefits for our region, and I certainly continue to support that industry.
There may well be future opportunities. I know Lakes Blue Energy has reapplied for an exploration permit at its Wombat field onshore down near Sea Spray. As the member for Polwarth indicates, there seems to be a bit of onshore gas in his region. Indeed those opposite like to pretend that there is no onshore gas, but actually in the debate yesterday on the other bill, about gas storage, we pointed out that their own report indicates that there are significant prospective reserves onshore in Victoria.
What I am concerned about with the government’s attempt to ban gas now is that it is premature in the context of the transition to renewables. There are opportunities. They still are a way away, but the notion that we will stop or remove residential and business gas I think is very premature because, firstly, we do not yet know whether those potential onshore and other offshore gas reserves may be discovered and exploited and, secondly, there is the prospect in future of green hydrogen or indeed any hydrogen. I mentioned yesterday the Hydrogen Energy Supply Chain project in the Latrobe Valley, which has gone through its pilot phase, has been proven to be technically possible and is now under consideration by the Japanese government as to whether it goes to commercial stage. The reason I raised that is that if the government, particularly the Minister for Energy and Resources, would get out of the way of this project and actually allow it to occur, it would give my region and those of the member for Morwell, the member for Gippsland East and even the member for Narracan the opportunity for the development of a hydrogen economy.
As I said yesterday, there is a prospect in the future – and it is only a hypothetical at this stage – that if we had a number of offshore wind farms operating in Bass Strait off Ninety Mile Beach and south of Wilsons Prom, as is currently proposed, particularly at times of low demand in the middle of the day, when the sun is shining and all the solar panels are doing their job, the electricity generated by that offshore wind could in fact be converted to green hydrogen.
The problem with that is it is some way off, and indeed the opportunity to replace some of our energy supplies through offshore wind is also some way off, apart from anything else because the government has messed up where the construction port is going to be for this project. We, under freedom of information, received a ministerial brief that was dated 7 October 2022 asking the then minister for ports to sign off on some funding for the Port of Hastings, and that brief said that it ‘must commence as soon as possible’ and that the development of the Port of Hastings required ‘urgent planning, technical and environmental work’.
Here we are literally two years later, with the federal government having knocked back the Port of Hastings, and the government has done nothing further. There is no clarity as to where the offshore wind sector will be produced. I have always argued that we should be doing more with Barry Beach. I would say again to the government: if you are going to understand that gas is going to be phased out and that we are going to lose jobs in the oil and gas sector in my electorate, then make sure there are some replacement jobs coming with the offshore wind industry and that the jobs that may well be created are not actually going to go to Geelong or to Hastings – or to Tasmania, perish the thought. The government does need to actually do that work and make sure that Gippsland does in fact benefit from this, because we have provided cheap, affordable and reliable power and cheap, affordable and reliable gas, for 50 years in the case of the gas and 100 years in the case of the electricity, and yet we are being left behind by this government because it is not focused on Gippsland and its needs in this area.
We do not oppose the other elements of the bill, but I support the member for Brighton’s reasoned amendment for all the reasons I have outlined. The government should not be seeking to stop people from connecting to gas. That is a premature decision, and that is why we will be opposing this bill.