Susan McDonald (Queensland, National Party, Shadow Minister for Resources) | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Minister, in the context of the highest inflationary pressures in over 30 years, including huge energy price spikes, Victoria has banned gas connections in new homes from 2024. According to Victoria's own energy reporting, the average per unit electricity price is 2.6 times higher than gas. Minister, how does forcing Australians away from cheaper gas ease cost-of-living pressures?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I will start by reminding those opposite that they voted against the price caps and the energy bill relief that we put in place in December last year, which has significantly lowered the price that households will be paying this year, as supported by and acknowledged by the Reserve Bank, by the Treasury—

Opposition Senators:

Opposition senators interjecting—

Sue Lines (President) | Link to this | Hansard source

Minister, please resume your seat. Order! Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

Thank you. The government's focus, the Albanese government's focus, has been to put downward pressure on energy prices, including the energy bill relief that will flow to five million Australians winter bills in the next little while.

Our support for energy upgrades and energy efficiency is that gas in fact does have a role to play as we transition to a net zero economy. It is not federal policy to ban gas connections, but we do acknowledge that states and territories also are implementing their plans around their transition to net zero as well, and that this is a question that really should be asked of the Victorian government. But I can certainly stand here and answer the steps that we are taking. We are mindful. We know that energy prices are hitting households. That's exactly why we took the action we did in December last year. We got ahead of it.

Again, let's not forget, when we came into government, we had an energy crisis on our hands that Minister Bowen was dealing with from day one. He had to stabilise energy markets, to manage it, to work across energy providers and other stakeholders and do the work that, frankly, should have been done by those opposite in the 10 years they were in government.

Sue Lines (President) | Link to this | Hansard source

Senator McDonald, a first supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) | Link to this | Hansard source

Minister, was your government consulted prior to Victoria announcing their decision? Was this a topic at the recent AUSMIN conference? And will you provide an assurance to Australian families struggling with the cost of living and rule out any plans to extend this ban on gas connections across Australia?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I would again say it's not federal policy to ban gas connections, but this is an area where the states and territories have responsibility. Certainly, from our point of view, we're not considering a nationwide ban on new connections, but we recognise that states and territories are having to consider the future of gas in their own energy mix.

In terms of consultation, I know that Minister Bowen and Minister McAllister work very collaboratively with state and territory colleagues about how to transition Australia in an ordered way to a net zero future—which I think used to be your policy too, wasn't it? You just didn't have any detail about how you'd get there. We do work with state and territory governments because we have to work together in the national interest.

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) | Link to this | Hansard source

Before I call you, Senator McDonald, I'm going to remind senators in the chamber that conversations and calling out across the chamber is incredibly disorderly and I would ask all senators to listen respectfully to the questions that are being asked and the answers being provided without the constant interjections. Senator McDonald, a second supplementary?

Susan McDonald (Queensland, National Party, Shadow Minister for Resources) | Link to this | Hansard source

Minister, Labor governments across Australia, including the ACT government, continue to introduce policies that drive up cost-of-living pressures, such as banning access to cheaper energy. Why do Australians always pay more under Labor?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

That's simply not true. It's simply not true, and the example you give in relation to the ACT, which went to 100 per cent renewable energy years ago, when I was still in the assembly, actually saw their bills go down this year because they are using a renewable energy mix which is often cheaper than other sources of energy. So it's simply not true, and we have been 100 per cent focused on meeting cost-of-living pressures or supporting households to deal with cost-of-living pressures, including in the area of energy, where we inherited, frankly, a total and utter mess when we came to government. We have been methodically working through it—which has included the legislation that the Senate passed, without your help, at the end of last year, which put downward pressure on those energy bills—and supporting households. Five million households have had support on their winter bills, which you also opposed.