Victorian restaurants say any move to phase out gas by stealth will cost thousands of jobs

Victoria’s restaurant industry has accused the Allan government of threatening the viability of thousands of businesses under new laws which critics say phase out gas by stealth.

Restaurants and cafes have savaged the Allan government for new laws that critics say are designed to phase out gas by stealth, saying the measures risk the closure of thousands of venues across the state.

The Australian Restaurant & Cafe Association said it was “deeply disappointing” Premier Jacinta Allan had this week flagged support for the use of gas, only for the government to then pass legislation which the gas industry says is designed to phase out the fuel source by stealth.

“Without proper compensation or support, thousands of hospitality businesses now face potential closure, massive losses, or costly conversions to electric appliances,” the association’s chief executive Wes Lambert said on Friday.

“These changes could devastate Victoria’s hospitality sector, which is already struggling to survive.”

Vivid Hawthorn executive chef Nobphadon Kaewkarn — aka Chef Bird — loves cooking with gas. Picture: Mark Stewart

Ms Allan has been accused of lying and misleading the Victorian public over the future of gas after new laws were quietly introduced to the parliament this week.

Clauses within the Building Legislation Amendment and Other Matters Bill 2024 allow the regulator to enact bans on gas connections in new homes.

The regulator also has the power to ban plumbers from installing new gas connections, or replace existing ones, in existing homes.

Gas advocates say the government is effectively phasing out gas by stealth.

They also accused Ms Allan of misleading the public after she said on Monday that “Victorians can keep cooking with gas” and households would be left to choose when they wanted to switch to electric appliances.

Mr Lambert said the clauses — part of the state’s Gas Substitution roadmap — had created confusion and uncertainty among thousands of hospitality businesses that rely heavily on natural gas for their daily operations.

“Affordable and fast access to natural gas is essential for running commercial kitchens, as well as for instant hot water – a critical need for nearly every restaurant and cafe,” he said.

“It is deeply disappointing that the Victorian government and premier signalled one course of action through the media earlier in the week, only to appear to reverse direction and introduce legislation that bans new or extended gas connections, the installation of gas appliances including cooktops, and fails to clarify the future of gas-powered instant hot water systems.”

Jacinta Allan has been accused of pushing new laws that will phase out gas by stealth. Picture: Daniel Pockett

Australian Pipelines and Gas Association chief executive Steve Davies on Thursday said the Victorian government’s move to strip away the rights of homeowners and renters because it “might need them later” would not pass the pub test.

“These draconian measures will not have any impact on improving gas supply for Victorians in the short-term and will instead have the opposite effect through chilling investment in new production,” Mr Davies said.

“Why would any energy company invest in delivering much-needed gas supply for Victoria when the state government is openly trying to destroy the business cases? It is completely counter-productive.

“This bill creates an economically unviable situation where the state government is essentially telling the 60,000 Victorian businesses on the gas network that they don’t want or need their business anymore.”

Australian Energy Producers Victorian Director Peter Kos said the government started the week promising people will still be able to use gas stovetops and ended it by secretly giving themselves the power to ban reticulated gas connections in future.

“It’s an extraordinary turn of events that adds to the confusion and inconsistency surrounding Victoria’s energy policy,” he said.

“Industry has not been consulted about these amendments to building codes for all existing homes.”