Opposition energy spokesman David Davis says Allan government ‘is in effect admitting their 10-year long war on gas was wrong’

The Allan government has been accused of a panicked back-pedal on its controversial gas policy after announcing it would now fast-track new gas projects.

The Allan government has been accused of a “panicked” back-pedal on its controversial gas policy after announcing it would now fast-track new gas projects.

Unveiling the government’s Economic Growth Statement on Tuesday, Premier Jacinta Allan announced an acceleration pathway for renewable energy projects will be expanded to include all new gas projects amid looming shortfalls.

This is despite the government powering ahead with ban gas connections in new homes, and as it consults about a plan to force Victorians to replace gas products at their end-of-life with electric appliances.

Energy Minister Lily D’Ambrosio, who has been an outspoken critic of gas and its suppliers, has said as early as 2022 that “Victorians have been at the mercy of private gas companies for too long … it’s time to put gas on the back-burner”.

But industry sources said the government’s “back-pedalling” may be too late to make any big difference at a time when gas supply is expected to dwindle.

Premier Jacinta Allan announced an acceleration pathway for renewable energy projects will be expanded. Picture: Nadir Kinani

Opposition energy spokesman David Davis said the policy shift proved the “anti-gas government … is in effect admitting their 10-year long war on gas was wrong”.

“The community has a right and the industry has a right to see these people as clowns who have botched energy policy so severely, and it’s down to Lily (D’Ambrosio). This is an admission that she’s been the worst energy minister in the state’s history,” he said.

“This is the ultimate stop-start approach.”

As part of the Economic Growth Statement, the number of regulators in Victoria will be cut in half in a bid to slash red tape and save businesses $500m over the next five years.

Premier Jacinta Allan declared the state’s 37 watchdogs will be cut to at least 18 by 2030.

The move has been welcomed by industry but their pleas for tax relief have fallen on deaf ears after Treasurer Tim Pallas ruled out any changes to the state’s tax regime.

Tim Pallas ruled out any changes to the state’s tax regime. Picture: David Crosling

Ms Allan said cutting the number of regulators — to the lowest of any state in Australia — will offer clearer points of contact, and fewer processes for businesses who would ultimately have less forms to deal with.

“We have to do better to save business the confusion and frustration of all of this red tape,” she said.

“Regulation should be a guardrail not a stop sign – protection for customers, not blockers to businesses.”

While it’s unclear which business regulators will face the chop, the government said it will begin by focusing on regulators in the construction and food industries.

A road map detailing the plan will be published next year.

The government’s Economic Growth Statement outlines a plan to drive investment across Victoria, signalling a keenness to partner with big business.

But in a blow to businesses, who have been pleading for tax relief, Mr Pallas on Tuesday said there would be “no specific tax cuts contained within this package”.

It comes after the Herald Sun revealed Ms Allan had enlisted some of the nation’s biggest business minds – including AFL boss Andrew Dillon, Herald and Weekly Times chairman Penny Fowler, VISY chairman Anthony Pratt and Bunnings chief Mike Schneider – to steer a new task force aimed at boosting relations between government and industry.

The Premier’s Business Council will meet on a quarterly basis.

Ms Allan on Tuesday also announced a new $20 million fund to help Victorian companies scale-up.

The cash splash is expected to turbocharge five “high-potential” sectors.

They include advanced manufacturing and defence, health technologies and medics research, circular economy, digital technologies and agribusiness. The new development fund would encourage industry to match grants and loans to innovate start ups and scale ups, Ms Allan said.

The Premier said the initiative would cut red tape for businesses, pointing to the newly announced reforms for cafes, pubs and restaurants that remove the requirement to apply for a planning permit to serve alcohol.

Despite Mr Pallas’ refusal to incorporate tax cuts, Gurner Group chief executive Ahmed Fahour, who will head up the business council, said everything would be on the table when discussions kick off with the government early next year.

“Everything that we think should be put on table, will be put on the table,” Mr Fahour, who was former Australia Post chief, said.

“There’s not one single topic that we’ve been told: ‘don’t discuss this with us.”

While Australian Industry Group chief Tim Piper welcomed the slashing of red tape, he said it was disappointing that no tax relief was included.

“Tax cuts are really important to get things moving within the state,” he said.

“We are highly taxed, and the government does need it for its own finances, but at the same time, we need to get momentum going within business.”

Victorian Chamber of Commerce and Industry chief executive Paul Guerra said the new strategy was a “good start” and one that would map out a clear path to much-needed growth.

“Business is in good hands,” he said.

“We now have strong engagement back with the state as well.”