Bills

Planning, Development and Infrastructure (Gas Infrastructure) Amendment Bill

Second Reading

Adjourned debate on second reading.

(Continued from 9 June 2021.)

The Hon. C.M. SCRIVEN (22:02): I rise today in relation to the Planning, Development and Infrastructure (Gas Infrastructure) Amendment Bill and indicate that I am the lead speaker on behalf of the opposition.

Gas still plays a role in the energy market in South Australia as a transitional form of energy as we continue to work towards developing an energy system based on renewables. However, we also understand the concerns raised by South Australian families who are concerned about being locked into contracts with a lack of choice for the consumer when dealing with their household power needs.

I am advised that, while there are currently no laws that mandate gas connection to newly developed properties in South Australia, connections are nevertheless being mandated by property developers in new developments. I understand the original decisions in regard to ensuring that gas supply was offered in new developments were made with the best of intentions. I am advised it was to ensure there was a choice not only between electricity and electricity but between electricity and gas; however, while that may have been the intention at the time, things have moved on. Situations in terms of our energy market have moved on, and opportunities and options have moved on.

We note the Hon. Mr Simms' point that the bill is not seeking to stop people using gas; rather, the aim is to provide the market with more options and give consumers choice. It is, of course, important that the rights of consumers to choose are respected and that they are allowed to determine what type of energy source they would like to be connected to. The Hon. Mr Simms, in his second reading explanation, used the example of the Lightsview development, where the use of gas is a requirement of purchase of a new property from that development, and his case that there are no options available for the consumer to choose from, and that is an example of why the matter needs to be addressed.

The opposition understands this practice may be creating unnecessary costs for home owners who are building, and believe this bill will assist in giving attention to this issue and ensuring that in the future it can be addressed in a way suitable for our energy needs, our environmental needs and consumer needs. The opposition will therefore be supporting this bill.

The Hon. R.I. LUCAS (Treasurer) (22:04): The government will not be supporting this particular bill for the following reasons. The bill seeks to void any contractual arrangements requiring that a property be connected to gas, with the provision to take effect from 1 January 2022. As identified in his second reading speech, the Hon. Mr Simms notes that there are currently no laws in place in South Australia that mandate gas connection to newly developed properties. However, he identifies that some developers of new housing estates require a gas connection be provided to the house as part of the purchase contract.

In doing so, some developers have private encumbrance matters that they are seeking to enforce through the sale contract to recuperate costs. The bill seeks to avoid such contractual arrangements. While the sentiment of the bill is understandable, purchasers should not be locked into using a particular energy source or paying for an energy source they choose not to use. This type of legislative change is not a matter that should be dealt with under the Planning, Development and Infrastructure Act 2016.

In considering the government's position on this bill, advice has been sought from the Surveyor General, who agrees that this act is not the appropriate legislation to address the concerns raised by the honourable member. While the bill seeks to effectively override contractual purchase arrangements, these are private property dealings and should not necessarily be subject to legislative intervention.

The planning system has a very limited role in the provision of gas or other utilities to consumers. This limited role includes a state planning policy on climate change, which promotes green technologies and industries, and provisions in the Planning and Design Code that ensure strict controls on the development within close proximity to major gas pipelines and facilities.

The Climate Council's Kicking the Gas Habit report from May this year is the subject of the report referred to by the honourable member in his second reading speech. Their recommendation that governments remove any planning rules that require new residential developments to be connected to gas is already achieved in South Australia, as we have no rules which mandate this to occur. Additionally, the Australian Energy Regulator is already considering how future consumer choice will impact investment into domestic gas infrastructure through their recent paper, 'Regulating gas pipelines under uncertainty'.

The government has also committed to developing a hydrogen industry. This paves the way for the possibility of replacing natural gas with hydrogen in specific applications, including reticulated gas, but this is a consideration for the future. As drafted, the bill is opposed, as this act is not considered the appropriate legislative tool to address what are private contractual arrangements.

The Hon. R.A. SIMMS (22:07): I thank the members who have contributed to the debate. In particular, I thank the Hon. Clare Scriven for her contribution and for the support of the Labor Party for this bill and I thank the Hon. Rob Lucas for his contribution on behalf of the government.

I am disappointed to hear that the Liberal Party will not be supporting the bill. I am disappointed and surprised that the party of choice would deny homeowners the opportunity to choose the energy provider that they would prefer in their home, that the party, supposedly of choice, would say that that decision should reside with developers rather than consumers. That is a curious position for the Liberal Party to take and one that I would have liked to interrogate further, if I had more time.

In the interests of time, I will conclude my remarks. As has been stated by the Hon. Clare Scriven, this is a pretty simple reform that is being advocated here. It is not mandating gas connection. What it is doing is giving members of the community the right to choose the energy that they would prefer. When given the choice, we know that most consumers would prefer to take the clean green options, those that reduce their emissions and also reduce their energy costs. With that, I commend the bill.

Bill read a second time.

Committee Stage

Bill taken through committee without amendment.

Third Reading

The Hon. R.A. SIMMS (22:11): I move:

That this bill be now read a third time.

Bill read a third time and passed.