Paul Nicolaou slams City of Sydney’s gas ban, warns of blow to hospitality sector

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Business Sydney executive director Paul Nicolaou has criticised the City of Sydney’s new “all-electric” policy, warning it could force restaurants out of the city and impose significant costs on small businesses.

The plan, passed unanimously by council, bans gas connections in new residential developments and limits food and beverage venues in mixed-use buildings to a single gas connection from December 31.

It aims to improve indoor air quality by eliminating fossil fuel appliances, though outdoor gas barbecues are exempt.

Nicolaou said the air quality concerns were “unfounded” and the decision represented a “blunt instrument,” especially given that modern, flued appliances are safe.

“Councils should not be unilaterally applying their own DIY building standards separate from the state government,” he said, warning the ban could make it harder for new restaurants to open.

“Banning gas connections may suit a long-term emissions agenda, but in the short term it risks imposing major costs on small businesses and critical industries,” Nicolaou added.

The state government has distanced itself from the move. Premier Chris Minns called the ban an “overstep,” and Planning Minister Paul Scully clarified the council’s controls are non-binding guidelines under its development control plan (DCP).

Nicolaou has written to Lord Mayor Clover Moore and the premier, urging reconsideration.

Hospitality leaders including Luke Mangan and Nahji Chu echoed concerns, citing higher costs and inferior cooking outcomes with induction equipment. “You can’t do Asian cooking on induction woks,” Chu said.

The City of Sydney says it will review the policy after a year, citing research that supports the viability of induction cooking alternatives.

Source: Daily Telegraph.

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