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Budget estimates 2003-04

June 2003

© Commonwealth of Australia 2003

ISBN 0 642 71257 3

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Contents

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
Addendum
Appendix 1 - Public hearing agendas

Membership of the Legislation Committee

Members
Senator Alan Eggleston, Chair (LP, WA)*
Senator Sue Mackay, Deputy Chair (ALP, TAS)
Senator Andrew Bartlett (AD, QLD)
Senate Kate Lundy (ALP, ACT)
Senator Santo Santoro (LP, QLD)
Senator Tsebin Tchen (LP, VIC)
*Senator Tchen, Chair on 29 and 30 May 2003

Substitute Members
Senator Brian Greig (AD, WA) to replace Senator Bartlett for matters relating to the Information Technology portfolio
Senator Aden Ridgeway (AD, NSW) to replace Senator Bartlett for matters relating to the Arts portfolio

Participating Members
Senator the Hon Eric Abetz (LP, TAS)
Senator the Hon Nick Bolkus (ALP, SA)
Senator the Hon Ron Boswell (NPA, QLD)
Senator Bob Brown (AG, TAS)
Senator George Campbell (ALP, NSW)
Senator Kim Carr (ALP, VIC)
Senator Grant Chapman (LP, SA)
Senator John Cherry (AD, QLD) for matters relating to the Communications portfolio
Senator Stephen Conroy (ALP, VIC)
Senator the Hon Helen Coonan (LP, NSW)
Senator Christopher Evans (ALP, WA)
Senator the Hon John Faulkner (ALP, NSW)
Senator Alan Ferguson (LP, SA)
Senator Jeannie Ferris (LP, SA)
Senator Brian Harradine (Ind, TAS)
Senator Leonard Harris (PHON, QLD)
Senator Susan Knowles (LP, WA)
Senator Meg Lees (Ind, SA)
Senator Ross Lightfoot (LP, WA)
Senator Julian McGauran (NPA, VIC)
Senator Jan McLucas (ALP, QLD)
Senator Brett Mason (LP, QLD)
Senator Shayne Murphy (Ind, TAS)
Senator Kerry Nettle (AG, NSW)
Senator Robert Ray (ALP, VIC)
Senator John Watson (LP, TAS)
Senator Penny Wong (ALP, SA)

Committee Secretariat
Mr Michael McLean, Secretary
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

Report to the Senate

Introduction

On 13 May 2003 the Senate referred the following documents to legislation committees for examination and report:

• Particulars of proposed expenditure for the service of the year ending on 30 June 2004.

• Particulars of certain proposed expenditure in respect of the year ending on 30 June 2004.

• Particulars of proposed expenditure in relation to the parliamentary departments in respect of the year ending on 30 June 2004.[1]

The Committee was required to report to the Senate on 19 June 2003.[2]

Hearings

The Committee conducted public hearings on the Communications, Information Technology and the Arts portfolio on 26, 27, 28 and 29 May 2003 and on the Environment and Heritage portfolio on 29 and 30 May 2003. The original agenda and each of the four revisions made by the Committee in response to changed circumstances are shown in Appendix 1. The evidence given is recorded in Hansard and is available on the Internet at:

http://www.aph.gov.au/hansard/senate/commttee/s-ecita.htm

Written responses and information provided to the Committee on notice arising from the hearings are compiled as volumes of Additional Information. These volumes are tabled in the Senate and the responses are posted on the Committee’s web page at:

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

Questions on notice - date for response

In accordance with Standing Order 26(9)(a), the Committee has fixed Friday, 8 August 2003 as the date for written answers or additional information to be provided in response to questions placed on notice.

Once again, the Committee expresses its concern about past failures to provide responses in a timely manner and its expectation that responses to questions on notice should be provided to it by the due date.

Portfolio specific issues

During its examination of the 2003-2004 Budget Estimates, the Committee raised a variety of issues which are noted below.

Communications, Information Technology and the Arts portfolio

The Committee welcomed Senator the Hon Richard Alston, Minister for Communications, Information Technology and the Arts.

The Committee notes that the Department reviewed its Outcome and Output structure during the past year to improve the alignment of its activities and programs.[3]

Outcome 3 - Development of services and provision of a regulatory environment which encourages an efficient and effective communications section for the benefit of all Australians

Broadcasting

Australian Broadcasting Corporation

• Closure of digital multichannels (pp. 4-12, 41)[4]

• Enhanced radio services to regional communities (p. 12)

• National interest initiative program (p. 13)

• Local television services in Far North Queensland (p. 13, 27)

• Retransmission of ABC services on Foxtel’s digital platform (p. 14)

• Appointments to the ABC Board (pp. 16-18)

• Impact of budget funding on programs (pp. 18-21)

• Multichannels Fly TV and ABC Kids (pp. 21-23)

• ABC staff salaries (p. 25)

• Costs of redundancies flowing from restructuring (p. 26)

• Viewer numbers for the ABC digital channels and uptake rate (p. 27)

• Balance of ABC news and current affairs presentation (pp. 28-37)

• ABC coverage of the Iraq war (pp. 29)

• ABC’s online reporting of opinion polls (p. 33)

• Fulfilment of ABC Charter obligations (pp. 38-39)

• Triennial funding (pp. 39-40, 43)

• ABC audience numbers (p. 41)

• New certified agreement (p. 45)

• Costs of rolling out digital infrastructure (pp. 45-46)

Special Broadcasting Service Corporation

• Departure of senior staff (pp. 46-49, 57)

• Staff statistics (p. 51)

• Sponsorship of The Business Program (p. 51-56)

• Staff cuts (pp. 50, 59)

• Office accommodation in Melbourne (pp. 60-61)

• Purpose of offices in Melbourne and Sydney (pp. 62-63)

Australian Broadcasting Authority

• Number of complaints about SBS programs (p. 109)

• Regulation of online content (pp. 110-113)

• Monitoring of chat rooms (pp. 113-115)

• End user education about the use of filters on PCs (p. 121)

• Review of commercial radio codes (p. 124)

• Review of local news and information programs in regional Australia (pp. 124-125)

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

• Numbers accessing digital free-to-air television (pp. 540-541)

• Types of standard definition receivers (p. 541)

• Strategies to promote digital television (p. 542)

• Report on antisiphoning list (p. 543)

• ACCC report on Foxtel (p. 543)

• Funding for NetAlert (pp. 544-545)

Communications

Telstra

• Government’s current policy on further sale of Telstra (pp. 66-67)

• Formal response to the Estens inquiry (pp. 67-70)

• Replacement of some pair gains systems (pp. 70-73)

• Staff numbers (pp. 73-74, 76-81)

• Direct credit of share dividends (pp. 74-75)

• Telstra line rental increases (pp. 81-83)

• Retirement terms of CEO’s contract (pp. 84-88)

• Capital costs estimates to replace all pair gains (pp. 89-90)

• Capital expenditure cuts (pp. 90-94)

• IT suppliers to Telstra (pp. 94-96)

• Telstra broadband eLab in Launceston, Tasmania (pp. 96-104, 106-107)

• Steps to reduce spam emails (pp. 107-108

• Faults and overtime days in Melbourne (pp. 126-128, 142-147, 154-155, 190-191)

• Use of Visionstream in Melbourne (pp. 127, 197)

• Pair gains, MiniMUX trial (pp. 128-133, 191-194)

• Provision of plasma TVs to the Minister and Prime Minister (pp. 148-154)

• Telstra’s IT outsourcing (pp. 155-162)

• Security of Telstra’s information systems (pp. 162-165)

• Corporate entertainment and sponsorship (pp. 165-168)

• Role of Pracom in Perth (pp. 169-173)

• Use of external contractors in the customer field work force (p. 174)

• Benchmarking/quality controls in place for managing contractors (pp. 174-175)

• Corporate governance issues (pp.84-86, 180-183, 198-199)

• Cable air pressure issues (pp. 184-185)

• ADSL system (pp. 194-196, 198)

Australia Post

• Return and destruction of terrorism kits (pp. 199-210, 215-216)

• Projections for net profit, ordinary dividends and special dividend for 2002-03, commercial-in-confidence claim (pp. 210-213, 228-229)

• Dispatch of centenary medals (p. 213)

• Staff numbers (p. 214)

• Proposed amendment bill (pp. 216-218)

• Number of corporate and licensed post offices and community postal agencies (p. 218)

• Number of street posting boxes (p. 219)

• Tullamarine mail screening facility (pp. 219-222, 232)

• Use of temps or employment agency staff on mail runs (p. 225)

• Relationship between Australian Post and the Licensed Post Officers of Australia (pp. 225-227)

• Review of payments to licensees in South Australia and the Northern Territory (pp. 227-228, 229-230)

• Concessional mailing rates for ADF overseas (pp. 230-231)

Australian Communications Authority

• Role of ACA re Telstra mass service disruption notices (pp. 232-235, 237)

• Discussion paper on broadband monitoring (pp. 235-236)

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

• Update on the TAPRIC program (pp. 239, 536)

• Modelling on the effects of recent line rental increases on Telstra’s revenue (p. 239)

• Update on the postal industry ombudsman paper (p. 240)

• Networking the Nation funding and residual funding (p. 532, 534)

• Assessment of BARN applications (pp. 539-540)

Information Technology

Corporate

• Development of the DCITA web site (pp. 240-267)

National Office for the Information Economy

• Costs of moving NOIE (p. 268)

• Involvement of NOIE in the development of the DCITA web site (p. 269, 274, 509-513)

• NOIE budget implications (p. 269)

• NOIE report on spam (pp. 269-271)

• Use of Gatekeeper by agencies and departments (pp. 271-272)

• ITOL grant funding (pp. 272-274, 513)

• Funding for research and development in security and privacy and international comparison of funding amounts (p. 514, 515)

• Interactions with NetAlert (p. 514)

• Radio frequency ID (p. 515)

• Broadband Advisory Group report (pp. 516-517)

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

• Changes to the Department’s Outcome/Output structure (p. 518)

• Action arising from recommendations of Framework for the Future report (pp. 518-521)

• SME working group (pp. 521-522)

• Monitoring of IT contracts (pp. 522-529)

• Future funding for the BITS incubator program (pp. 529-530)

Arts and Sport

The Committee welcomed Senator the Hon Rod Kemp, Minister for the Arts and Sport.

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

Australian Sports Drug Agency

• Adoption and implementation of the WADFA code (pp. 280-282)

• Frequency of tests (pp. 282-283)

• Numbers of user pays tests (p. 284)

• ASDA process of testing and advice of violations (pp. 286-287)

• Introduction of new reporting requirements (pp. 290-292)

• Matter relating to Stuart Rendell (pp. 301-304)

Australian Sports Commission

• Staffing of ASC (p. 305)

• Compliance of NSOs with new reporting requirements (pp. 309-311)

• ASC involvement in the Stuart Rendell matter (pp. 313-315)

• Women in Sport conference (p. 316)

• Soccer Australia (pp. 316-318)

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

Australia Council

• Funding arrangements (pp. 320-322)

• Grants program (pp. 322-325)

• Opera Australia (pp. 325-333)

Australian Film Commission

• Additional budget funding (p. 334)

• Amalgamation with ScreenSound Australia (pp. 334-337)

Australian Film, Television and Radio School

• Funding for upgrade of equipment (p. 339)

Australian Film Finance Corporation

• Appointment of new CEO and length of contract (p. 340)

• Review of the FLICs program (p. 342)

• Representations made in relation to free trade discussions (p. 342)

Australian National Maritime Museum

• Impact of budget (p. 344)

• Visitor numbers (p. 344)

• Expiry date of Director’s contract (p. 345)

National Archives of Australia

• Impact of budget reduction (p. 346, 362)

• Staffing levels (pp. 346-347, 362-364)

National Gallery of Australia

• Impact of budget reduction (p. 347)

• Update on the Comcare inquiry and final report (pp. 349, 353, 356-357)

• Gallery disaster recovery plan (p. 350)

• Staff relations and staff obligations (pp. 350-353, 357-361)

• Progress of gallery building project (p. 355)

National Library of Australia

• Impact of budget measures (pp. 364-366)

• Progress of the digitisation project (p. 367)

National Museum of Australia

• Carroll review of the museum (pp. 371-395)

• Staffing of the review secretariat (pp. 378-380)

• Cost of the review (p. 380, 381-382)

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

• Budget measures resulting from the review of cultural institutions (pp. 399-401)

• Department of Finance and Administration guidelines for the treatment of assets (p. 402)

• Proceeds of the closure of the government bookshops (pp. 408, 409)

• Recommendations of the Myer report for increased funding (p. 411)

• Grant allocation for Playing Australia (pp. 413-415)

Output 1.2 - Preservation of and access to Old Parliament House, the National Portrait Gallery, ScreenSound Australia and their respective collections

• Appointment of Mr Andrew Sayers to the position of Director of the National Portrait Gallery (p. 417)

• Amalgamation of ScreenSound Australia with the Australian Film Commission (pp. 334-338)

Output 1.3 - National leadership in engaging people in science and technology through development of programs and exhibitions, support for science and learning in schools and interaction with industry partners

• National Science and Technology Centre (Questacon) (p. 418)

This agency has been transferred to the Department of Education, Science and Training as from 1 July 2003.

Environment and Heritage portfolio

Over its two days of hearings on the portfolio, the Committee welcomed Senator the Hon Robert Hill, Minister for Defence, and Senator the Hon Judith Troeth, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, representing the Hon David Kemp MP, Minister for the Environment and Heritage.

The Secretary, Mr Beale, made a statement concerning the portfolio accounts and noting structural and accounting changes.

Outcome 2 - Australia’s interests in Antarctica are advanced

Antarctic Division

• Research on seals at Macquarie Island (p. 422)

• Proposal for Antarctic runway (p. 422)

• Restoration of Mawson’s Hut (pp. 422-423)

• Shipping support for Australia’s Antarctic programs (p. 423)

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

Supervising Scientist Division

• Impact of budget reduction (pp. 424-425)

• Costs of relocation from Jabiru to Darwin (p. 425)

• Resources allocated by OSS to the committee’s uranium inquiry (pp. 426-427)

• Water treatment review by OSS (pp. 427-428)

• ERA monitoring of bores (pp. 429-430)

• Staged rehabilitation at Ranger (p. 430)

• Exposure to elevated levels of radiation of roofing workers at the Ranger mine (pp. 431-433)

Great Barrier Reef Marine Park Authority

• Impact of revenue reduction on programs (pp.433-435)

• Issues about the environment management charge - ATO review of GST liability (p. 436)

• Staffing levels at the authority (p. 437)

• Further funding of the crown of thorns starfish program (pp. 437-438)

• Great Barrier Reef coastal wetland protection program (pp. 439-440)

National Oceans Office

• Review of the agency (pp. 440-443)

• Status of the draft south-east regional management plan (pp. 443-444)

• Status of the northern region management plan (p. 445)

• Costings for the two current and remaining proposed nine regional management plans (p. 446)

Sydney Harbour Federation Trust

• Increased funding (pp. 449-450)

• Proposed capital works (p. 450)

• Sources of revenue (pp. 450-452)

• Asset sales (p. 451)

• Proposed walking track through HMAS Penguin (p. 452)

• Resolution of ownership of the North Head site (pp. 452-453)

Australian Greenhouse Office

• Budgetary measures, forward estimates (pp. 453-456, 461-462)

• Aggregation of program figures in the budget papers (pp. 457-460)

• Proposed staffing losses (pp. 460-461)

• Land clearing in Queensland of regrowth and remnant vegetation (pp. 462-471)

• Ethanol, studies into greenhouse benefits of ethanol (pp. 472-473)

• Climate action partnership with the United States (pp. 473-475, 477-478)

• Reduced rebate level under the Photovoltaic Rebate Program (p. 478)

• Update on the Alternative Fuels Conversion Program (pp. 479-481)

• The Energy Grants (Credits) Scheme (pp. 481-482, 483)

Parks Australia

• Staff reductions (pp. 484-495)

• Effectiveness of the crazy ant control program on Christmas Island and any impact on non-target species (pp. 485-486)

• Budget allocations for Kakadu and Uluru National Parks (p. 487)

• Proposed increase to park fees (pp. 487-489)

Department of the Environment and Heritage

Approvals and Wildlife Division

• Impact of the development of the detention centre and port facility on Christmas Island heritage values (p. 486)

• Proposed greenhouse trigger in the Environment Protection and Biodiversity Conservation legislation (p. 491)

• Listing of threatened species and ecological communities (pp. 492-494)

• Processes for dealing with complaints about land clearing which may breach the act (pp. 494-495)

• Concerns about the proposed nuclear waste repository at preferred site 40a (pp. 497-498)

Heritage Division

• Changes to budget calculations for world heritage funding (pp. 498-499)

• Funding for proposed initiative ‘Distinctively Australian’ (pp. 499-501)

• Funding for the Wet Tropics Management Authority and the Wet Tropics Board (pp. 501-503)

Natural Heritage Division

• Budgeted items for the Cape Your Natural Heritage Trust Plan (p. 503)

• Funding for the weeds and feral animals program (pp. 504-505)

• Adding properties to the national reserve system (pp. 505-506)

• EA and AFFA budget environmental allocations (pp. 548-555, 556-557, 559-561)

• Funding for water quality (pp. 558-559)

• EA input to the Murray-Darling Basin Council (pp. 561-562)

• Reduction of staffing levels in the department (pp. 562-564)

• Review and restructure of the division (pp. 564-565)

• Staff losses in the natural heritage division (p. 565)

• Permits for land clearing (pp. 565-569)

• Regrowth clearing in the reef catchment areas (pp. 569-570)

• Land clearing agreement with Queensland (pp. 571-572)

• Status of native grasslands in the agreement (p. 572)

• Planting saltbush to address salinity and carbon sinks in WA (pp. 572-573)

• Commonwealth’s approach to methyl bromide and any current research funding (pp. 573-575)

• Storage and sale of halon (pp. 576-580)

Acknowledgements

The Committee thanks the Minister for Communications, Information Technology and the Arts, Senator the Hon Richard Alston; the Minister for the Arts and Sport, Senator the Hon Rod Kemp; the Minister for Defence, Senator the Hon Robert Hill and Senator the Hon Judith Troeth, Parliamentary Secretary, both representing the Minister for the Environment and Heritage, along with officers from both portfolio departments and agencies, for their assistance during this additional estimates process.

Senator Alan Eggleston
Chairman

Addendum to the Environment, Communications, Information Technology and the Arts Committee’s
Report on the Budget Estimates 2003-04

ALP members of the Committee note the refusal of Australia Post to answer questions on their budget for the 2002-03 financial year on the grounds of commercial confidentiality.

ALP members note resolutions of the Senate, dating back to 1971, that statutory bodies have no discretion to refuse to answer questions on the expenditure of public money, and that there was no basis to the refusal of Australia Post to answer these questions

ALP members condemn this attempt to close down reasonable and proper Senate estimates questions on the Australia Post budget.

Senator Sue Mackay
Senator Kate Lundy

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 to 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: 2003-2004 Budget Estimates

Monday, 26 May 2003 to Thursday 29 May 2003

and Friday, 30 May, if required

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1
http://webcast.aph.gov.au

AGENDA

MONDAY, 26 MAY 2003

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 to 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: 2003-2004 Budget Estimates

Monday, 26 May 2003 to Thursday 29 May 2003

and Friday, 30 May, if required

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1
http://webcast.aph.gov.au

REVISED AGENDA

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 to 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: 2003-2004 Budget Estimates

Monday, 26 May 2003 to Thursday 29 May 2003

and Friday, 30 May, if required

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1
http://webcast.aph.gov.au

REVISED AGENDA

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 to 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: 2003-2004 Budget Estimates

Monday, 26 May 2003 to Thursday 29 May 2003

and Friday, 30 May, if required

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1
http://webcast.aph.gov.au

REVISED AGENDA

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 to 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: 2003-2004 Budget Estimates

Monday, 26 May 2003 to Thursday 29 May 2003

and Friday, 30 May, if required

Committee Room 2S3

Parliament House

Canberra ACT

To be televised on Channel 11 and broadcast on Radio 91.1
http://webcast.aph.gov.au

REVISED AGENDA

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