The Australia Institute made a submission to the Environment and Planning Committee of the Victorian Legislative Council Inquiry into Unconventional Gas in Victoria. Our submission addresses three myths of Australia’s unconventional gas industry:

• That there is a gas shortage
• That expanding gas supply will reduce Australian gas prices
• That gas development creates lots of jobs

Our recommendations are:

• An urgent review of policy and programs that subsidise/support the expansion of gas networks is required, in particular Victorian Government’s $100M Energy for the Regions program.
• Remove subsides that encourage uneconomic gas use.
• Remove subsidies that encourage expansion of the gas grid.
• Provide Victorian households with accurate information on the relative costs of electrical and gas systems for cooking, hot water heating and space heating, and encourage people to switch to efficient electrical systems where it is cost effective to do so.
• Facilitate identification and financing of energy efficiency and economic fuel switching alternatives to gas use in the commercial and industrial sectors.
• Maintain the current moratorium on unconventional gas development.