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Additional estimates 2005–06

28 march 2006

View the report as a single document - (PDF 247KB)

Membership of the Committee

Report to the Senate

Introduction
Hearings
Questions on notice – date for response
Portfolio specific issues
Communications, Information Technology and the Arts portfolio
Environment and Heritage portfolio
Acknowledgements

Appendix 1 – Public hearing agenda

Appendix 2 – Documents tabled at the hearings

Appendix 3 – Correspondence from the Minister for the Arts and Sport

Membership of the Legislation Committee

Members

Senator Alan Eggleston, Chair (LP, WA)
Senator Kate Lundy, Deputy Chair (ALP, ACT)
Senator the Hon Kay Patterson (LP, VIC)
Senate the Hon Michael Ronaldson (LP, VIC)
Senator Rachel Siewert (AG, WA)
Senator Dana Wortley (ALP, SA)

Participating Members

Senator the Hon Eric Abetz (LP, TAS)
Senator Judith Adams (LP, WA)
Senator Lyn Allison (AD, VIC)
Senator Andrew Bartlett (AD, QLD)
Senator the Hon Ron Boswell (NATS, QLD)
Senator George Brandis (LP, QLD)
Senator Bob Brown (AG, TAS)
Senator George Campbell (ALP, NSW)
Senator Kim Carr (ALP, VIC)
Senator Grant Chapman (LP, SA)
Senator the Hon Richard Colbeck (LP, TAS)
Senator Stephen Conroy (ALP, VIC)
Senator the Hon Helen Coonan (LP, NSW)
Senator Trish Crossin (ALP, NT)
Senator Christopher Evans (ALP, WA)
Senator the Hon John Faulkner (ALP, NSW)
Senator Alan Ferguson (LP, SA)
Senator Jeannie Ferris (LP, SA)
Senator Steve Fielding (FFP, VIC)
Senator Michael Forshaw (ALP, NSW)
Senator the Hon Bill Heffernan (LP, NSW)
Senator John Hogg (ALP, QLD)
Senator Gary Humphries (LP, ACT)
Senator Barnaby Joyce (NATS, QLD)
Senator Ross Lightfoot (LP, WA)
Senator Joseph Ludwig (ALP, QLD)
Senator the Hon Ian Macdonald (LP, QLD)
Senator Gavin Marshall (ALP, VIC)
Senator Brett Mason (LP, QLD)
Senator Julian McGauran (NATS, VIC)
Senator Jan McLucas (ALP, QLD)
Senator Christine Milne (AG, QLD)
Senator Claire Moore (ALP, QLD)
Senator Kerry Nettle (AG, NSW)
Senator Kerry O'Brien (ALP, TAS)
Senator Robert Ray (ALP, VIC)
Senator Rachel Siewert (AG, WA)
Senator John Watson (LP, TAS)
Senator Ruth Webber (ALP, WA)
Senator Penny Wong (ALP, SA)

Committee Secretariat

Dr Ian Holland, Secretary (Legislation)
Dr Jacqueline Dewar, Secretary (References)
Ms Jacquie Hawkins, Research Officer

Committee Address

Environment, Communications, Information Technology and the Arts Legislation Committee
S1.57, Parliament House
Canberra ACT 2600

Tel: 02 6277 3526
Fax: 02 6277 5818
Email: ecita.sen@aph.gov.au
Internet: http://www.aph.gov.au/senate/committee/ecita_ctte/index.htm

Introduction

1.1 On 8 February 2006 the Senate referred the following documents to legislation committees for examination and report:

Particulars of proposed additional expenditure in respect of the year ending on 30 June 2006 [Appropriation Bill (No. 3) 2005-2006];
Particulars of certain proposed additional expenditure in respect of the year ending on 30 June 2006 [Appropriation Bill (No. 4) 2005-2006);
Statement of savings expected in annual appropriations made by Act No. 72 of 2005 (Appropriation Act (No. 1) 2005-2006) and Act No. 73 of 2005 (Appropriation Act (No. 2) 2005-2006);
Final budget outcome 2004-05 (tabled 5 October 2005) and the Issues from the Advance to the Finance Minister as a final charge for the year ended 30 June 2005 (tabled 7 February 2006).^[1]
1.2 Legislation committees were required to report to the Senate on 28 March 2006.[2]

Hearings

1.3 The Committee conducted public hearings on the Communications, Information Technology and the Arts portfolio on 13 and 14 February 2006 and on the Environment and Heritage portfolio on 14 February 2006.

1.4 Written answers and information provided to the Committee on notice arising from the hearings are tabled in the Senate and posted on the Committee’s web page. The answers are also compiled as volumes of Additional Information.

1.5 Links to the transcripts of the public hearings and to answers and additional information are available on the Internet at:

http://www.aph.gov.au/senate/committee/ecita_ctte/estimates/index.htm

Questions on notice – date for response

1.6 In accordance with Standing Order 26(9)(a), the Committee agreed that the date for the submission of written answers or additional information in response to questions placed on notice at the hearings be Friday, 7 April 2006.

1.7 Once again, the Committee expressed its concern about the considerable time taken by the Communications, Information Technology and the Arts portfolio to provide answers to questions put on notice at the Supplementary Budget Estimates hearings in October/November 2005, noting that several answers were still outstanding at the time of the Additional Estimates hearings. It reiterates its expectation that answers to questions on notice should be provided to the Committee by the due date.

Portfolio specific issues

Communications, Information Technology and the Arts portfolio

1.8 On the first day of its examination of the 2005-2006 Additional Estimates, the Committee examined the telecommunications and broadcasting sectors of the portfolio.

1.9 The Committee welcomed Senator the Hon Helen Coonan, Minister for Communications, Information Technology and the Arts.

1.10 During its examination, the Committee raised a range of issues which are noted below. The page references beside each issue refer to the proof transcript for Monday, 13 February 2006.

Outcome 3—Development of services and provisions of a regulatory environment which encourages an efficient and effective communications sector for the benefit of all Australians

Telecommunications issues

Australia Post

workers compensation costs (p. 4)
injury management early intervention policy (pp 4-6, 9-12)
restructure of mail centres in south-east Queensland and the impact on staff (pp 6-9)
facility nominated doctors program (pp 12-18)

Telstra

attendance of Mr Trujillo at the additional estimates hearing (pp 21-22)
time spent overseas by Mr Trujillo (pp 22-23)
appointments of non Australians to Telstra positions (pp 24-25)
proposed switch-off of the CDMA network and introduction of the 3G network (pp 25-41)
transitional costs for CDMA customers moving to the 3G network (pp 36-38)
roaming provided by Telstra on government funded mobile sites to other mobile providers (pp 38-39)
megabit download speed available on 3GGSM (p. 39)
copper network faults, Telstra Media Release re extra funding (pp 41-45, 49-51, 53-55)
cost of maintenance and repair in rural and regional Australia (pp 45-47)
fault rates for Telstra Country Wide areas (pp 47-49)
fibre to the node program (pp 51-61, 81-82)
local presence plan (pp 61-65, 86)
closure of research labs (pp 65-68)
roles of Cosby Textor and Carnegie Wylie (pp 68-69)
removal of public pay phones in WA country towns (pp 76-77)
rollout of broadband services to rural Australia, application of Xtel and Newground (pp 77-79)
cost of creating and maintaining website (p. 83)
costs of complying with regulations (p. 84)
costs of mail outs to shareholders by the CEO (p. 85)
reduction of wholesale customers' contract terms to six months (pp 87-90)
backhaul pricing levels (pp 90-94)
increase in wholesale basic access charge (pp 94-96, 103-105)
use of CDMA network after the introduction of the 3G network (pp 97-98)
spectrum required for the 3G network (pp 99, 105-106)
outsourcing of IT capabilities to overseas contractors and impact on Australia based staff levels (pp 101-103)

DCITA Output 3.1–Policy advice and program management which encourages competitively priced and reasonably accessible telecommunications and postal services

ACCC report on unconditioned local loop services wholesale access pricing (pp 106-109)
Government funding of the CDMA network (pp 109-110)
development of the operational separation framework (pp 111-113)
current status of the Do Not Call Register discussion paper (pp 113-114)

Broadcasting issues

Australian Broadcasting Corporation

resignation of the Managing Director, Mr Balding (p. 116)
current status of Mr Cox in Tasmania (pp 116-117, 117-119, 127-128)
current status of Mr O'Keefe (pp 117-118)
release of the KPMG report on triennial funding (p. 119)
release of complaints about ABC coverage of Middle Eastern affairs and costs incurred by the ABC in the freedom of information application (pp 120-121)
health concerns at the Toowong studio (p. 121)
review of the ABC's anti-bullying policy and procedures (pp 122-124)
access to capital city program by WA regional listeners (pp 124-127)
appointment of new managing director (pp 129-130)
cost of the KPMG review (pp 132-133)
breaches of editorial policies, news division style guide rules and inappropriate political comments on air (pp 136-152)

Special Broadcasting Service

funding sought in the triennial funding submission (p. 153)
spectrum available for broadcasting (p. 154)
monitoring of radio programs for inappropriate material (pp 155-157)
programming on SBS TV (pp 158-160)
biased reporting and factual errors (pp 160-161)

1.11 Due to time constraints the Australian Communications and Media Authority (ACMA) and outputs 3.2 and 3.3 were held over to the following morning. Outputs 3.4 and 3.5 were not required to attend.

1.12 On the second day of hearings, those areas not concluded the night before were called and examined ahead of the arts and sports sectors. The Committee welcomed back Senator Coonan in her own capacity and representing the Minister for the Arts and Sport, Senator the Hon Rod Kemp.

1.13 The page references beside each issue refer to the proof transcript for Tuesday, 14 February 2006.

Telecommunications issues in continuation

Australian Communications and Media Authority

Voice over Internet Protocols (VoIP) services (pp 4-8)
network faults, disparity between Telstra figures and the former ACA's quarterly monitoring reports (pp 8-11)
adequacy of the then ABA's enforcement powers, as reported in its annual report (p. 11)
release of a discussion paper on possible enforcement enhancements for ACMA (pp 11-14)
allocation of spectrum for datacasting (pp 15-17)
audit on regional licensing (pp 17-20)
reallocation of spectrum used by TV broadcasters for electronic news gathering and live sport to wireless internet service (pp 20-22)

DCITA Output 3.2–Policy advice and program management which promote accessible high quality broadcasting services

release of media policy discussion paper (pp 23-24)
status of digital television reviews reports (p. 26)
appointments to vacancies on the ABC Board (p. 27)
locally produced drama on the ABC (p. 28)
status of the review of mobile content regulation (p. 29)

DCITA Output 3.3–Policy advice and program management that assist the development of the Information and Communications Technology Industry

development of IT skills in Australia (pp 30-33)
reduction in undergraduate IT enrolments (p. 32)

Cultural issues

Outcome 1–Development of a rich and stimulating cultural sector for all Australians

National Museum of Australia

overview of 2005 exhibitions (pp 34-36)
changes to exhibition program resulting from the Carroll review (p. 36)
use of Braille signage on exhibits (p. 37)

Australia Council

findings of the national survey report of theatre companies (pp 37-39)
restructure of the New Media Arts Board (pp 39-40)
impact on and implications for orchestras of divestment from the ABC (pp 41-43)
development of a commercial code of conduct for dealings with Indigenous artists (pp 43-44)

Australian Film Commission

resignation of the CEO, Mr Dalton, and appointment of a successor (pp 44-45)
funding for a script development program (pp 46-47)
collecting of non Australian film, television and music at the National Film and Sound Archive (pp 47-48)
funding of the Australian Screen Online program (pp 48-49)

1.14 The Committee welcomed Senator the Hon Ian Campbell, Minister for the Environment and Heritage, representing the Minister for the Arts and Sport, Senator the Hon Rod Kemp, and continued its examination of the arts sector.

Film Finance Corporation

current funding levels (p. 50)
marketing of FFC funded films or documentaries (pp 50-51)
methods for evaluating films for FFC funding (p. 51)
status of the 10A and 10B film tax review (pp 51-52)

National Archives of Australia

impact of operating budget on staffing allocation (pp 52-53)
touring exhibitions (p. 54)

National Gallery of Australia

implications of the Auditor-General's report Safe and accessible national collections (pp 54-56)
proposed changes to the Gallery, overview of stages 1 and 2 (pp 56-58)
the Gallery's role in the National Library's exhibition National Treasures from Australia's Great Libraries (p. 58)

National Library of Australia

National Treasures exhibition: visitor numbers in Canberra; touring itinerary (p. 59)
status of the digitising of original materials, eg pictures, rare maps and publications such as music scores (pp 59-60)

DCITA Output 1.1–Policy advice, program management and agency support which promotes access to and excellence in Australia’s cultural activities and preservation and development of our cultural collections

Clause 11 (IP) of the new funding agreements with Indigenous organisations (pp 60-63)
national Indigenous languages survey report of 2005 (pp 63-64)
progress of the resale royalty scheme and the related discussion paper (p. 64)
the UNESCO convention on cultural diversity (pp 65-66)
grants made under the Cultural Development Program (p. 67)
increased allocation of funding for the new National Portrait Gallery (pp 67-68)
details about the proposed national music education summit (pp 68-69)

Sport issues

1.15 At the conclusion of the arts sector, representatives from the sporting bodies and the Department were called and examined together.

Outcome 2–Development of a stronger and internationally competitive Australian sports sector and greater encouragement in sport by all Australians

Australian Sports Commission

Australian Sports Drug Agency

DCITA Output 2.1–Policy advice, program management and agency support in relation to sports, anti-doping and industry development measures which support the Australian sports sector

absence of Mr Peters from the estimates hearing (p. 69)
revised estimate of the Commonwealth contribution to the 2006 Commonwealth Games (pp 69-71)
transitional arrangements for ASADA (pp 71-73)
proposed ASADA organisational structure (pp 73-74)
employment of consultants (p. 74)
anti-doping initiatives (p. 75)
interaction between the Get Moving campaign and the Active After School Communities program (pp 75-77)
the Active After School Communities program (pp 77-79)
progress of the sports facilities program (pp 80-81)

1.16 The Committee notes that the Minister for the Arts and Sport, Senator the Hon Rod Kemp, has written to it explaining the absence of Mr Peters from the estimates hearing in February. To allay the concerns expressed at the hearing, the Minister's letter is attached at Appendix 3.

Environment and Heritage portfolio

1.17 At the conclusion of the examination of the Communications, Information Technology and the Arts portfolio, officers from the Environment and Heritage portfolio were called.

1.18 The Committee welcomed Senator the Hon Ian Campbell, Minister for the Environment and Heritage.

Outcome 2—Australia's interests in Antarctica are advanced

Australian Antarctic Division

oversupply of whale meat in Japan (pp 83-84)
updates on diplomatic efforts to stop whaling (pp 84-85)
progress report on the construction of the runway in Antarctica (pp 85-86)

Outcome 1—The environment, especially those aspects that are matters of national environmental significance, is protected and conserved

Great Barrier Reef Marine Park Authority

current staffing numbers (pp 86-87)
progress of the review of the Great Barrier Reef Marine Park Act 1975 (pp 87-87, 112)
recommendations made in the Authority's submission to the review (pp 89-91)
visitor numbers and revenue figures for the reef rescue aquarium (p. 92)

Department of the Environment and Heritage

Director of National Parks and Parks Australia Division

coral bleaching at Ningaloo (p. 92)
extent of coral bleaching in other Commonwealth marine parks in the northern waters (p. 92)
status of the organisational reviews in Kakadu and Uluru national parks (p. 93)
rehabilitation projects on Christmas Island (p. 94)

Approvals and Wildlife Division

timetable for amendments to the EPBC Act (pp 95-97)
timing of the final EIS on Christmas Island (p. 97)
approval process in relation to False Cape, Cairns (pp 97-102)
compliance and penalties under the EPBC Act (pp 102-103)

Heritage Division

overseas travel details of officers of the department and members of the Heritage Council or the Heritage Commission (pp 103-104)
involvement in heritage work in Iraq (pp 104-105)
current status of the National Heritage List (p. 109)
status of the Shark Bay World Heritage area and the listing of Ningaloo (pp 110-111)

Industry, Communities and Energy Division and International Land and Analysis Division

climate change issues (Four Corners program, 13/02/06) (pp 112-124)
renewable energy targets (pp 125-127)
current status of the Solar Cities program (pp 127-129)
the department's role in the Asia-Pacific climate pact meeting (pp 129-132)

Land, Water and Coasts Division

development of a coastal policy (pp 132-133)
progress on water sharing plans with New South Wales and Queensland (p. 135)

Marine Division

Great Barrier Reef Marine Park RAP restructure grants process (pp 135-140)

National Resource Management Programmes Division

status of reviews of national resource management and national action plan programs (pp 140-141)

Acknowledgements

1.19 The Committee thanks the Minister for Communications, Information Technology and the Arts, Senator the Hon Helen Coonan, and the Minister for the Environment and Heritage, Senator the Hon Ian Campbell, along with officers from both portfolio departments and agencies, for their assistance during this additional estimates process.

Senator Alan Eggleston
Chairman

Appendix 1

The Senate

BUSINESS OF COMMITTEES

This document is issued as a guide to Senators

Business listed is subject to change

It should be noted that times allocated for the consideration of outcomes, items and agencies within portfolios are indicative only.

Senators, staff and departments should liaise with secretariats on the progress of portfolios during the estimates process.

SENATE ENVIRONMENT, COMMUNICATIONS, INFORMATION TECHNOLOGY AND THE ARTS LEGISLATION COMMITTEE

Public Hearings: Additional Estimates 2005–2006

Monday, 13 and Tuesday, 14 February 2006

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 12 and broadcast on Radio 91.1

http://webcast.aph.gov.au

AGENDA

MONDAY, 13 FEBRUARY 2006

9.00am	Communications, Information Technology and the Arts Portfolio
	Department of Communications, Information Technology and the Arts
	Outcome 3—Development of services and provision of a regulatory environment which encourages a sustainable and effective communications sector for the benefit of all Australians and an internationally competitive information economy and information and Communications Technology industry

9.00am	Australia Post
	Telstra
	DCITA Output 3.1 Policy advice and program management which encourages competitively priced and reasonably accessible telecommunications and postal services

	Australian Broadcasting Corporation
	Special Broadcasting Service
	DCITA Output 3.2 Policy advice and program management which promote accessible high quality broadcasting services

	Australian Communications and Media Authority

7.00pm	DCITA Output 3.3 Policy advice and program management that assist the development of the Information and Communications Technology Industry
	DCITA Corporate Services

	DCITA Output 3.4 Policy and program management of copyright issues that encourage the production of content and promote reasonable access to research and cultural materials

	DCITA Output 3.5 Strategic advice, activities and representation relating to Australia's development as an information economy, nationally and internationally

11.00pm	Adjournment

TUESDAY, 14 FEBRUARY 2006
	Communications, Information Technology and the Arts Portfolio
	Department of Communications, Information Technology and the Arts
9.00am	Outcome 1—Development of a rich and stimulating cultural sector for all Australians
	National Museum of Australia
	Australia Council
	Australian Film Commission
	Film Finance Corporation
	National Archives of Australia
	National Gallery of Australia
	National Library of Australia
	DCITA Output 1.1 Policy advice, program management and agency support which promotes access to and excellence in Australia’s cultural activities and preservation and development of our cultural collections (including matters related to the Film Finance Corporation Australia Limited)

	DCITA Output 1.2 Preservation of and access to Old Parliament House and the *National Portrait Gallery* and their respective collections

	Outcome 2—Development of a stronger and internationally competitive Australian sports sector and encouragement of greater participation in sport by all Australians
	Australian Sports Commission
	Australian Sports Drug Agency
	DCITA Output 2.1 Policy advice, program management and agency support in relation to sports, anti-doping and industry development measures which support the Australian sports sector.
(at conclusion	Environment and Heritage Portfolio
of CITA portfolio)	Department of Environment and Heritage

	Outcome 2—Australia's interests in Antarctica are advanced
	Australian Antarctic Division

	Outcome 1—The environment, especially those aspects that are matters of national environmental significance, is protected and conserved
	Bureau of Meteorology
	Great Barrier Reef Marine Park Authority
	Director of National Parks and Parks Australia Division
	Department of the Environment and Heritage Approvals and Wildlife Division Heritage Division Industry, Communities and Energy Division International, Land and Analysis Division Land, Water and Coasts Division Marine Division Natural Resource Management Programmes DivisionPolicy Coordination Division

11.00pm	Adjournment

BREAKS	Morning tea	10.45am approx
	Lunch	1.00pm - 2.00pm
	Afternoon tea	3.45pm approx
	Dinner	6.00pm - 7.00pm
	Tea break	9.30pm approx

Appendix 2 - Documents tabled

Monday, 13 February 2006

Senator Ronaldson tabled a copy of Telstra Media Release No 219/2005 dated 6 July 2005, concerning $200 million program to improve Telstra's copper network.

Tuesday, 14 February 2006

Senator the Hon Ian Campbell, Minister for the Environment and Heritage, tabled a copy of his letter to The Hon Dr Judy Edwards MLA, then WA Minister for the Environment, dated 18 October 2005, concerning the preparation of a World Heritage nomination for North West Cape/Ningaloo Reef.

Appendix 3 - Correspondence from the Minister for the Arts and Sport
(Available in PDF version only)

For further information, contact:

Estimates Officer
Senate Standing Committees on Environment, Communications and the Arts
PO Box 6100
Parliament House
Canberra ACT 2600
Australia

Phone: +61 2 6277 3526

Fax: +61 2 6277 5818

Email: ecita.sen@aph.gov.au

Phone:	+61 2 6277 3526
Fax:	+61 2 6277 5818
Email:	ecita.sen@aph.gov.au