Tuesday, 19 March 2024

State Electricity Commission Amendment Bill 2023

Second reading

Ingrid STITT (Western Metropolitan – Minister for Mental Health, Minister for Ageing, Minister for Multicultural Affairs) (18:01): I thank everyone for their very thoughtful and passionate contributions during the debate today. I of course do not want to go back over a lot of the ground that my colleagues have already covered, but this is a pretty simple proposition that is now before us in terms of the State Electricity Commission Amendment Bill 2023. We committed as an election commitment to bringing back the SEC as a publicly owned, 100 per cent renewable energy market participant, and this bill is part of delivering on that election commitment – something, I might add, that was strongly supported by the Victorian community.

The bill abolishes the State Electricity Commission of Victoria as it is currently constituted in the State Electricity Commission Act 1958 to ensure that there is no confusion between the new SEC entity and the pre-existing SECV in Victorian legislation, and it will also allow the new SEC entity to use the terms ‘State Electricity Commission’ and ‘State Electricity Commission of Victoria’. So it is a very simple proposition that is now before the house. It certainly will make further amendments to clarify all remaining references to the old SECV.

Following privatisation of the Victorian electricity supply industry in the 1990s, legislation was enacted that has effectively limited the old SEC’s role to managing any residual property, rights and liabilities from its previous operation. Currently, the SEC act provides that the old SECV consists of an administrator. This officeholder, currently the Secretary of the Department of Energy, Environment and Climate Action, is responsible for the administration of residual assets and liabilities of the old SECV. The old SECV effectively has no employees and for practical purposes is no longer an operating entity under the State Electricity Commission Act. Abolishing the old SECV will allow the new SEC to operate without causing confusion between the pre-existing entity and the new SEC.

The new SEC will invest with industry to accelerate our transition to more affordable, reliable, renewable energy. It is interesting to see those opposite get all misty-eyed and sentimental about the SEC considering that they sold it off to private multinationals. Those multinationals increased prices and sacked workers, and it is now Victorian families that are paying the price for that in $23 billion in profits going overseas – and counting. That is why we brought back the SEC: to deliver government-owned renewable energy to push down prices for all Victorians.

We have got our first project under construction. Those opposite have been running a bit of a commentary on this project, saying that it would have happened anyway. There is absolutely zero evidence for that. The project would not have happened today without the SEC. That is a fact. I want to be very clear: because of the SEC this project is happening far sooner, it is going to be bigger and it will enable more renewables to come into the system. We cannot really expect those opposite to be on board with that, but what I want to say to them is, ‘Don’t peak too early, because we’ve got a lot of energy legislation coming in the next few months.’ We have got a big plan to transition to renewable energy, to give us that certainty of supply and to continue to drive down costs while doing the right thing by the climate and the environment.

Can I also just touch on the reasoned amendment in the name of Mr Welch and indicate that the reasoned amendment will not be supported by the government as it would duplicate existing annual reporting obligations. The annual reporting obligations set out in part 7, section 45, of the Financial Management Act 1994 will automatically impose an annual reporting obligation on the Department of Energy, Environment and Climate Action in relation to the property rights and liabilities of the former SEC.

Furthermore, the reasoned amendment would erroneously impose financial reporting obligations in relation to the former SEC on the Treasurer and the Department of Treasury and Finance, and this does not reflect the current administrative arrangements for the former SEC. The State Electricity Commission Amendment Bill will abolish the former SEC and transfer its property rights and liabilities to the state. Under the current general order the Minister for the State Electricity Commission and the Department of Energy, Environment and Climate Action will be responsible for managing legacy issues associated with the former SEC and for reporting on the former SEC’s property rights and liabilities in accordance with the Financial Management Act.

In summary, this is a very simple proposition that we are dealing with today in relation to the State Electricity Commission Amendment Bill. We are delivering government-owned, renewable energy to drive down power bills, and I commend the bill to the house.

The PRESIDENT: Mr Welch has moved a reasoned amendment to the State Electricity Commission Amendment Bill 2023. The question is that the reasoned amendment moved by Mr Welch be agreed to.

Council divided on amendment:

Ayes (15): Melina Bath, Gaelle Broad, Georgie Crozier, David Davis, Moira Deeming, Renee Heath, Ann-Marie Hermans, David Limbrick, Wendy Lovell, Trung Luu, Bev McArthur, Joe McCracken, Nick McGowan, Evan Mulholland, Richard Welch

Noes (22): Ryan Batchelor, John Berger, Lizzie Blandthorn, Jeff Bourman, Katherine Copsey, Enver Erdogan, Jacinta Ermacora, David Ettershank, Michael Galea, Shaun Leane, Sarah Mansfield, Tom McIntosh, Rachel Payne, Aiv Puglielli, Samantha Ratnam, Harriet Shing, Ingrid Stitt, Jaclyn Symes, Lee Tarlamis, Sonja Terpstra, Gayle Tierney, Sheena Watt

Amendment negatived.

Council divided on motion:

Ayes (23): Ryan Batchelor, John Berger, Lizzie Blandthorn, Jeff Bourman, Katherine Copsey, Enver Erdogan, Jacinta Ermacora, David Ettershank, Michael Galea, Shaun Leane, Sarah Mansfield, Tom McIntosh, Rachel Payne, Aiv Puglielli, Samantha Ratnam, Harriet Shing, Adem Somyurek, Ingrid Stitt, Jaclyn Symes, Lee Tarlamis, Sonja Terpstra, Gayle Tierney, Sheena Watt

Noes (15): Melina Bath, Gaelle Broad, Georgie Crozier, David Davis, Moira Deeming, Renee Heath, Ann-Marie Hermans, David Limbrick, Wendy Lovell, Trung Luu, Bev McArthur, Joe McCracken, Nick McGowan, Evan Mulholland, Richard Welch

Motion agreed to.

Read second time.

Third reading

Ingrid STITT (Western Metropolitan – Minister for Mental Health, Minister for Ageing, Minister for Multicultural Affairs) (18:16): I move, by leave:

That the bill be now read a third time.

Motion agreed to.

Read third time.

The PRESIDENT: Pursuant to standing order 14.28, a message will be sent to the Assembly informing them that the bill has passed without amendment.