2.1
This chapter provides an overview of some of the matters raised during the committee's October and November hearings on Budget Estimates 2022–23. The discussion follows the outcome and agency structure.
Climate Change, Energy, the Environment and Water portfolio
Department of Climate Change, Energy, the Environment and Water
2.2
The committee commenced its examination of the Climate Change, Energy, the Environment and Water portfolio on 28 October 2022, with general questions of the Department of Climate Change, Energy, the Environment and Water (DCCEEW). In his opening statement the Secretary, Mr David Fredericks, noted it was the newly-created department's first appearance at estimates and set out some of its priorities:
This includes a strong role in delivering the government's agenda to invigorate Australian climate action and leadership; facilitate the smooth transformation of our energy system; capture the opportunities of a clean energy economy; protect, restore and manage Australia's land and ocean environment and heritage; and improve the health of our rivers and fresh water ecosystems. In this, we will also be focused on achieving environmental and economic outcomes, including growing our economy and ensuring regional communities continue to drive.
2.3
Mr Fredericks also expressed his gratitude for the diligent and conscientious work of departmental staff to manage the machinery of government changes required to establish DCCEEW, as well as the support of other agencies including the Department of Industry, Science and Resources, and the Department of Agriculture, Fisheries and Forestry.
2.4
The following matters were discussed during general questions:
Selection of the date for the Energy Ministers' Meeting;
International Energy Agency World Energy Outlook report; and
Powering Australia plan and Rewiring the Nation Fund.
Outcome 1: Provide international and national leadership and coordination to: support the transition of Australia's economy to net-zero emissions by 2050; transition energy to net zero while maintaining security, reliability and affordability; support actions to promote adaptation and strengthen resilience of Australia's economy, society and environment; and re-establish Australia as a global leader in responding to climate change.
2.5
On Monday, 7 November 2022, the committee resumed its examination of the Climate Change, Energy, the Environment and Water portfolio with Outcome 1.
2.6
In relation to Program 1.1: Reducing Australia's greenhouse gas emissions, the committee discussed the following matters:
COP27 delegation and events;
Energy Safeguard Mechanism;
Beetaloo Basin oil and gas production;
Northern Territory's commitment to implementing the recommendations from the Pepper review;
Spending of $105 million from the Climate Solutions Fund;
43 per cent emissions reduction target for 2030;
'Loss and Damage' Fund for Vulnerable Countries; and
Australia's contribution to the Global Environment Facility.
2.7
In relation to Program 1.3: Developing reliable, secure and affordable energy, the committee discussed the following issues:
Global factors influencing energy prices;
Projected gas supply shortfalls;
Australian Energy Market Operator renewable energy forecasts;
Costs of establishing nuclear energy generation in Australia;
Default market offer price for electricity;
Native forest biomass in the Renewable Energy consultation paper; and
Rewiring the Nation Plan.
Snowy Hydro Limited
2.8
The committee called officials from Snowy Hydro Limited. In his opening statement the new Chair, Mr David Knox, discussed Snowy Hydro's role in providing on-demand power generation during market events in June and July 2022, and the resulting depletion of hydro fuel resources. Mr Knox also noted significant progress in major projects, including Snowy 2.0, despite the impacts of high costs of materials, global supply chain constraints, COVID-19, labour shortages and ongoing weather conditions.
2.9
The committee also discussed the following issues:
Use of hydrogen for electricity generation;
Kurri Kurri power plant retrofit costs;
Construction of overhead transmission lines in Kosciuszko National Park;
Performance of former Chair and contract termination payment;
Current water storage levels in the Snowy scheme;
Timelines, costs and total project value for Snowy 2.0 project; and
Costs relating to use of gas or diesel instead of hydro power.
Australian Energy Infrastructure Commissioner
2.10
The committee called Mr Andrew Dyer, the Australian Energy Infrastructure Commissioner. In his opening statement, Mr Dyer outlined issues of key importance, including: large-scale transmission project impacts; off-shore wind energy; the benefits and challenges of Renewable Energy Zones; fairness of commercial agreements between landholders and project proponents; responsibility for decommissioning of projects; and workplace and community safety.
2.11
The committee also discussed the following issues:
Public complaints related to electricity transmission projects; and
Social licence development for wind farm projects.
Clean Energy Regulator
2.12
The committee called officers from the Clean Energy Regulator and discussed the following matters:
Wentworth Group of Concerned Scientists' submission to the Independent Review of Australian Carbon Credit Units, led by Professor Ian Chubb;
Draft report by Dr Rod Fensham on impacts of grazing on tree and shrub cover in the Australian rangelands;
Development of Emissions Reduction Fund methods;
National Greenhouse and Energy Quarterly Report;
Decline in installation of solar and wind energy infrastructure; and
Potential termination of particular methodology determinations under the Emissions Reduction Fund.
Outcome 2: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances
2.13
In relation to Program 2.1: Sustainable Management of Natural Resources and the Environment (funding), the committee discussed the following matters:
Saving Native Species funding;
Modelling on funding required to achieve zero new extinctions;
Threatened species action plans; and
Recovery plans for Leadbeater's possum, greater gliders and the Tasmanian devil.
2.14
In relation to Program 2.2: Environmental Information and Research, the committee discussed:
2021 State of the Environment Report; and
Climate change and natural disaster projections.
2.15
In relation to Program 2.4: Conservation of Australia's Heritage and Environment (regulation), the committee discussed the following topics:
Regional Forestry Agreements and logging of native forests;
Conservation of koala habitat;
30 by 30 conservation plan;
First Nations Heritage Protection legislation;
Threat abatement plans and the impact of invasive species on native species; and
Funding for recovery of giant kelp forests and Great Southern Reef.
2.16
In relation to Program 2.5: Environmental Regulation, the committee discussed the following matters:
Environmental law reform; and
Market model for conserving biodiversity on private lands.
2.17
In relation to Program 2.6: Management of Hazardous Wastes, Substances and Pollutants, the committee discussed:
Disposal of toxic waste in takayna / Tarkine forest; and
Australian Packaging Covenant Organisation review of targets for 2025.
Bureau of Meteorology
2.18
The committee called officials from the Bureau of Meteorology. In his opening statement, Dr Andrew Johnson, Chief Executive Officer and Director of the Bureau of Meteorology, noted the essential support that the Bureau provided for the safety and security of Australians during recent severe weather events. Dr Johnson went on to discuss a range of services introduced over the past five years, including thunderstorm asthma advice, protection against heatwaves, tropical cyclone advice, improved fire weather services, and commencing development of a project to provide forecasts in languages spoken by First Nations people as well as culturally and linguistically diverse Australians.
2.19
The committee also discussed the following issues:
Organisational branding and visual identity;
Coincidence of La Nina events with a negative Indian Ocean Dipole;
Ownership and operation of river gauges across Australia;
State of the Climate report; and
Financial impacts of climate change policy settings, particularly for energy prices.
Great Barrier Reef Marine Park Authority
2.20
The committee called officials from the Great Barrier Reef Marine Park Authority and discussed the following issues:
Report of the UNESCO reactive monitoring mission to the Great Barrier Reef;
Water temperatures and recovery from coral bleaching events;
Clean up and restoration activity on Douglas Shoal;
Management of water quality under the Reef 2050 Plan; and
Reporting regime for the Special Envoy for the Great Barrier Reef.
Australian Institute of Marine Science
2.21
The committee called officials from the Australian Institute of Marine Science (AIMS). In his opening statement, Mr Basil Ahyick, Acting Chief Executive Officer, noted that although the Great Barrier Reef had recovered since major bleaching events in 2016 and 2017, recent bleaching events in 2020 and 2022 indicated that the reef had crossed a threshold: severe and widespread coral bleaching can now occur in any given summer. Mr Ahyick also discussed AIMS' management of the release of the Global Coral Reef Monitoring Network's Status of Coral Reefs of the World report, which found that all the world's reefs are facing similar challenges, with climate change presenting the greatest threat.
2.22
The committee also discussed the following issues:
ReefWorks partnership with the Department of Defence;
Marine defence technology including underwater drones;
Perfluoroalkyl and polyfluoroalkyl substances (PFAS) in the marine environment; and
Support for staff mental health.
Outcome 3: Advance Australia's strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region.
2.23
In relation to Program 3.1: Antarctica: Science, Policy and Presence, the committee discussed the following matters:
Construction of the Antarctic and Science Precinct;
Sports and entertainment precinct in the Macquarie Point area;
East Antarctic Ice Sheet;
Independent Review by Professor Meredith Nash into gender equity, diversity and inclusion in the Australian Antarctic Program; and
Independent Review by Ms Leigh Russell concerning the Australian Antarctic Division's workplace culture.
Infrastructure, Transport, Regional Development, Communications and the Arts portfolio
Department of Infrastructure, Transport, Regional Development, Communications and the Arts
2.24
The committee commenced its examination of the Communications and the Arts outcomes of the Infrastructure, Transport, Regional Development, Communications and the Arts portfolio on 8 November 2022 with general questions of the department. Senator the Hon Carol Brown, representing the Minister for Communications and the Minister for the Arts, gave an opening statement discussing investment in the National Broadband Network to expand full fibre internet access, additional funding for the Australian Broadcasting Corporation, and investments in connectivity for rural, regional and remote communities.
Outcome 5: Promote an innovative and competitive communications sector, through policy development, advice and program delivery, so all Australians can realise the full potential of digital technologies and communications services
2.25
In relation to Program 5.1: Digital Technologies and Communications Services, the committee discussed the following matters:
Funding for the Mobile Black Spot Program;
Regulations enacted in response to the Optus data breach of September 2022;
Better Connectivity Plan for Regional and Rural Australia;
Funding to support community broadcasting;
Online Safety Grants Program;
Funding to support regional, local and community newspapers;
National audit of mobile connectivity using Australia Post vehicles;
Australia Post and NBN Co executive and non-executive bonuses;
Data sharing agreements with financial institutions and other entities in response to the Optus data breach;
Penalties for breaches of written agreements;
Closing the Gap concerning digital inequality in Indigenous and Torres Strait Islander communities;
Communications resilience funding;
Australian Competition and Consumer Commission interim report No. 5;
Protections for consumers against digital scams; and
Consultation on the Telecommunications Legislation Amendment (Information Disclosure, National Interest and Other Measures) Bill 2022.
Special Broadcasting Service Corporation
2.26
The committee called officials from the Special Broadcasting Service Corporation (SBS). In his opening statement, Mr James Taylor, Managing Director, discussed the role of SBS in providing coverage of the 2022 Federal Election in more languages than ever before, including live translation of debates as well as community based election exchanges, all languages election videos and electoral participation information for newly arrived migrants. Mr Taylor also noted the 10th anniversary of the National Indigenous Television Service as part of the SBS network and raised concerns that the News Media Bargaining Code was not providing sufficient incentive for social media companies to negotiate with SBS.
2.27
The committee also discussed the following issues:
Broadcasting of the 2022 FIFA World Cup;
SBS On Demand video streaming services;
Policies relating to advertisements on SBS, particularly relating to gambling; and
SBS's negotiations with Meta under the News Media and Digital Platforms Mandatory Bargaining Code.
Australian Communications and Media Authority
2.28
The committee called officials from the Australian Communications and Media Authority (ACMA). In her opening statement, Ms Nerida O'Loughlin, Chair, discussed the role of ACMA in responding the Optus data breach of September 2022.
2.29
The committee also discussed the following issues:
Complaints and rules related to gambling advertising;
BetStop national gambling self-exclusion register;
Timeline of formal investigation of the Optus data breach;
Online and phone phishing, and other scams; and
Advertising related to COVID-19 vaccinations.
NBN Co Limited
2.30
The committee called officials from NBN Co Limited. In his opening statement, Mr Stephen Rue, Chief Executive Officer, described NBN Co's response to recent storms and floods, including establishing emergency satellite services. Mr Rue also discussed the company's progress in providing fibre-to-the-premises services, as well as implementation of 5G and improvements to 4G services to enhance speed and coverage.
2.31
The committee also discussed the following issues:
Authorisations for end users and contractors that install or modify NBN equipment within a user's premises;
Decisions regarding which premises to include in planned network upgrades;
Strengthening Technology Against Natural Disasters (STAND) program; and
Employee remuneration and bonuses.
Australian Postal Corporation
2.32
The committee called officials from the Australian Postal Corporation (Australia Post). In his opening statement, Mr Paul Graham, Group Chief Executive Officer and Managing Director, discussed COVID-19 accelerating growth in ecommerce and use of online services, resulting in letter volumes decreasing 66 per cent since their 2008 peak, whereas revenue from parcels increased 65 per cent over the past three years. Mr Graham also noted several community support initiatives, including a partnership with Beyond Blue, raising $1.7 million on behalf of the Australian Red Cross, and delivering over 280 000 books to children living in remote First Nations communities in conjunction with the Indigenous Literacy Foundation.
2.33
The committee also discussed the following issues:
Proposed increase in postage costs;
Preparations for holiday peak delivery period;
Launch of 2025 Sustainability Roadmap;
National audit of mobile connectivity using Australia Post vehicles; and
Concerns relating to passport photo signage at an Adelaide post office.
Australian Broadcasting Corporation
2.34
The committee called officials from the Australian Broadcasting Corporation (ABC) and discussed the following matters:
Role, gender, place of work and remuneration band of ABC employees;
Increased funding and moving to a five-year funding cycle;
Changes to anti-siphoning rules for televised sport;
Western Sydney office construction project;
ABC journalist's speech to Women Lawyers Association ACT;
Exemptions to local content rules for streaming video on demand services;
Use of personal social media accounts by ABC journalists;
Mental health support for staff working in conflict zones;
Dr Norman Swan's comments in relation to the late Senator Kimberly Kitching and the late Shane Warne;
Policies regarding ABC employees engaging in commercial or paid external work;
Use of Mr Bill Bowtell as a commentator on COVID-19;
Climate reporting by the ABC;
Compliance with a February 2022 order for the production of documents; and
Concerns relating to ABC's privacy collection statement.
Office of the eSafety Commissioner
2.35
The committee called officials from the Office of the eSafety Commissioner and discussed the following issues:
New ownership and management of Twitter;
Implementation of the Online Safety Act 2021; and
Increasing prevalence of cyberbullying.
Outcome 6: Participation in, and access to, Australia's arts and culture through developing and supporting cultural expression
2.36
In relation to Program 6.1: Arts and Cultural Development, the committee discussed the following matters:
Status and funding of the National Cultural Policy;
Requirements for Australian-made content for free-to-air broadcasters and streaming services;
Ministerial and departmental engagement with the streaming video services and other stakeholders;
Discontinuation of the Restart Investment to Sustain and Expand (RISE) program;
National Performing Arts Partnership Framework funding; and
Role and appointment of the Special Envoy for the Arts.
Screen Australia
2.37
The committee called officials from Screen Australia and discussed the following issues:
Equity investments and ownership of intellectual property; and
Support for video game development.
Bundanon Trust
2.38
The committee called officials from the Bundanon Trust. In her opening statement, Ms Rachel Kent, Chief Executive Officer, discussed the completion of its master plan, as well as the opening of a new art museum and Bridge for Creative Learning in 2022.
2.39
The committee also discussed the following issues:
Accommodation and restaurant facilities; and
National Museum of Australia
2.40
The committee called officials from the National Museum of Australia and discussed the following matters:
Ancient Greeks exhibition;
Launch of new gallery spaces including Great Southern Land; and
Online and travelling exhibition programs.
Cross portfolio Murray-Darling Basin Plan matters
2.41
On 11 November 2022, the committee examined the water outcomes and agencies of the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
2.42
In his opening statement, Mr David Fredericks, Secretary, DCCEEW, discussed the following issues:
high rainfall across the east coast of Australia in 2022;
the department's work with state and territory governments to manage water resources; and
the appointment of Mr Andrew McConville as Chief Executive of the MDBA and Dr Simon Banks as the Commonwealth Environmental Water Holder.
Outcome 2: Conserve, protect and sustainably manage Australia's biodiversity, ecosystems, environment and heritage through research, information management, supporting natural resource management, establishing and managing Commonwealth protected areas, and reducing and regulating the use of pollutants and hazardous substances
2.43
In relation to Program 2.3: Commonwealth Environmental Water, the committee discussed the following matters:
Environmental water allocation and use in the Murray-Darling Basin;
Delivery of objectives and potential impacts of the Water for the Environment Special Account plan; and
Commonwealth Environmental Water Office portfolio holdings and valuation.
Outcome 4: Improve the health of river and freshwater ecosystems and water use efficiency through implementing water reforms, and ensuring enhance sustainability efficiency and productivity in the management and use of water resources
2.44
In relation to Program 4.1: Water Reform the committee discussed the following matters:
Water recovery through efficiency measures; and
Sustainable Diversion Limit Adjustment Mechanism projects and Bridging the Gap water recovery target.
Murray-Darling Basin Authority
2.45
The committee called officers from the Murray-Darling Basin Authority and discussed the following issues:
Water flows to South Australia;
Mr Andrew McConville's appointment as Chief Executive; and
Progress of the Murray-Darling Basin Plan.
National Water Grid Authority
2.46
The committee called officers from the National Water Grid Authority and discussed the following matters:
Machinery of government changes assigning the National Water Grid Authority to DCCEEW;
Staffing allocation, structure and office locations;
Changes to the budget allocation for dam and irrigation projects; and
Correspondence with Infrastructure Australia.
Inspector-General of Water Compliance
2.47
The committee called officers from the Inspector-General of Water Compliance. In his opening statement, Mr Daniel Blacker, Acting Inspector-General of Water Compliance, gave an overview of the agency's progress in building confidence, trust and transparency in compliance with the Murray-Darling Basin Plan since it was established in 2021:
We are about enforcing the basin plan rules based on evidence. We have legislative powers which provide us with the ability to audit, investigate and inquire into certain matters.
The Inspector General of Water Compliance was established just over 12 months ago now and, like any new agency or regulator, we have spent this time gathering evidence and producing some foundational pieces of work. We have been assessing state systems which manage individual water use compliance. We have been assessing compliance with sustainable diversion limits under the basin plan. We are auditing compliance against accredited water resource plans, and we are investigating compliance with basin plan water trading rules. We published our first annual sustainable diversion limit statement of compliance, which showed all states and territories with a water resource plan in place have been compliant with sustainable diversion limits under the basin plan in the 2020–21 water year.
2.48
Other matters discussed by the committee included:
Information sharing arrangements with state and territory authorities for the purpose of investigations;
Funding arrangements in the October 2022 budget;
Memorandum of Understanding with basin states on compliance with the Murray-Darling Basin Plan; and
Sustainable Diversion Limit compliance by states and territories.
Senator Karen Grogan
Chair