David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

I rise to make a statement on the parlous state of energy supply in Victoria. My once great state is now facing a high probability of electricity blackouts this summer due to the failures of the Andrews government. Let there be no doubt, the blame for these blackouts will be the energy policies of cynical and ideologically driven settings, produced to scrape a few votes from Labor's hard-Left green mates. As we've seen recently, Victorian power prices are now some of the highest in the country. This is a direct product of the Andrews government's politically driven but economically naive policies. Victoria used to have the lowest power prices in the country. And I can hear those opposite asking: 'Wow, why was that? And I'm happy to tell them.

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

We hadn't said anything.

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

Can I call the senator to order, please?

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

What about Hazelwood, though?

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

That was a product of your government's policy settings. I will get onto that, Senator Chisholm.

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

If you're going to encourage it, deal with it.

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr Acting Deputy President, if I could call to order Senator Chisholm, please.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Senator Van, resume your seat. Interjections are disorderly. I call both sides to order and allow Senator Van to make his contribution with silence in the chamber.

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr Acting Deputy President. Don't worry, you will get your turn. I was explaining to those opposite why we used to have the lowest power prices. This was not because of generation technologies; it was because of an abundant supply of fuel. I know those on my side understand supply-demand economics, but a quick lesson for those opposite. If you have more fuel than you can use, it drives down prices—simple. Labor and the Greens will chip in with, 'Well, we have all this sunshine; we have all this wind, more than we can use.' Of course they are right, to a point. When the sun sets and the wind stops, how does your supply look then? Pretty low, right? So what happens to prices, Senator Rice? They go up.

Senator Rice interjecting—

Have you heard of night-time?

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Senator Van, please resume your seat. Contributions should be addressed to the chair. Interjections are disorderly and are not usually from people making a contribution. Please continue and address the chair.

David Van (Victoria, Liberal Party) Share this | Link to this | Hansard source

Thank you, Mr Acting Deputy President. So this is worse at night-time. The price signals caused by the oversupply in daylight hours sends a signal to dispatchable generators that their supply is unviable. You can see a direct link between the policy settings arranged by 'Blackout Dan' and the closure of Hazelwood. So while Victoria had an oversupply of cheap generation that drove economic development and jobs based on low power prices, we now have to import higher priced energy, which means we will export jobs. So these price signals are leading to a lack of investment in coal generation which means less or no firm dispatchable power in the future. The product of this always will be blackouts in the once great state of Victoria.

The solution to this should be very simple. Let's use another abundant cheap power source that is dispatchable when the intermittent power supplies are not available. That solution is gas-fired electricity generation, or should be. Victoria has a long history of cheap, abundant, natural gas. This historically has come from our Bass Strait gas fields. However, they're getting to the end of their lives. Commonsense would dictate we use our other gas reserves to back fill. But no. 'Blackout Dan' has put a moratorium on all gas exploration and production in Victoria. So now we're importing gas from Queensland down a very long expensive pipe. Anna Palaszczuk must be loving her mate Dan because he's sending royalties and jobs to her state, not keeping them in his. The most galling part of this is that, in an attempt to stop blackouts from happening due to his stupid renewable energy target, Dan is rumoured—and I believe in these rumours—to be buying backup diesel generation for when the sun goes down and the wind stops. In case those opposite aren't aware, diesel is the most polluting and the most expensive form of energy generation. The people of Victoria are not stupid. They can see that the renewable target, while a noble aim, is a completely irresponsible energy policy. You can't claim to be looking out for Victorians and for the environment while pushing up the cost of living and polluting our cities and towns with diesel generation. Dan Andrews and his energy minister need to stand up and do the right thing by the people of Victoria. Lift the moratorium on gas exploration and production— (Time expired)