Chapter 2Portfolio specific issues
2.1This chapter provides an overview of some of the matters raised during the committee’s February 2024 hearings on Additional Estimates 2023-24. The discussion follows the order of appearance of outcomes and agencies, organised by portfolio.
Climate Change, Energy, the Environment and Water portfolio
Department of Climate Change, Energy the Environment and Water
2.2The committee commenced its examination of the Climate Change, Energy, the Environment and Water portfolio on 12 February 2024 with general questions of the Department of Climate Change, Energy, the Environment and Water (DCCEEW). On 27 February 2024 the committee concluded its examination of the Climate Change, Energy, the Environment and Water portfolio with questions for the Bureau of Meteorology and the Australian Institute of Marine Science.
2.3The following matters were discussed during general questions:
The timeline and processes underlying allocation of grants to the Environmental Defenders Office and review of alleged Environmental Defenders Office misconduct;
Concerns relating to conflicts of interest of EY consultants working on climate policy.
Outcome 1: Support the transition of Australia’s economy to net-zero emissions by 2050; transition energy to support net zero while maintaining security, reliability and affordability; support actions to promote adaptation and strengthen resilience of Australia’s economy, society and environment; and take a leadership role internationally in responding to climate change.
2.4In relation to Program 1.1: Reduce Australia’s greenhouse gas emissions, and Program 1.2: Support reliable, secure and affordable energy,the committee discussed the following matters:
Impact of the Glasgow accords on government policy formation;
Reforms to the Safeguard Mechanism regarding the reporting requirements of new industrial projects and ministerial powers in relation to the Safeguard Mechanism;
The Australian National Audit Office’s (ANAO) report on the governance of the government’s climate change commitments;
The timeline for the Powering Australia program;
Solar panel rollouts in Australia, the extent of modern-day slavery in the solar panel supply chain, and the cybersecurity risk of remote controlled solar power inverters;
Discrepancies between RepuTex’s and DCCEEW’s Safeguard Mechanism emissions modelling;
New Vehicle Efficiency Standard consultation and impact analysis, type of analysis that DCCEEW provided to the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA);
Variations concerning international best practice emissions intensities under the Safeguard Mechanism;
Transition to renewable energy, and use of carbon capture, utilisation and storage in conjunction with new gas supply;
Australia’s current fuel stocks supply and reserves, in accordance with international agreements and stock-holding obligations;
Response to the Australian Energy Infrastructure Commissioner’s Community Engagement Review report.
Australian Renewable Energy Agency
2.5The committee called officers from the Australian Renewable Energy Agency and discussed the following matters:
The rollout of large-scale battery projects across Australia, proposed completion dates and their role in the energy grid.
Clean Energy Finance Corporation
2.6The committee called officers from the Clean Energy Finance Corporation and discussed the following matters:
Financing for the Household Energy Upgrades Fund for the electrification of homes and the rate at which homes are being electrified;
The Rewiring the Nation project, expenditure and engagement with stakeholders.
Climate Change Authority
2.7The committee called officers from the Climate Change Authority and discussed the following matters:
Consideration of energy prices in formulating advice to the government regarding future emissions reduction targets;
Provision of advice regarding the operation of the Safeguard Mechanism;
Consulting work by EY for the Climate Change Authority.
Snowy Hydro Limited
2.8The committee called officers from Snowy Hydro Limited and discussed the following matters:
Progress of the Florence tunnel borer and allocation of budget towards contingencies if necessary;
Capacity and ownership of water in Snowy Hydro reservoirs, allocations and licences in relation to yearly release quotas;
Issues related to the modelling of the costs of Snowy 2.0 and impact on energy prices for consumers.
Offshore Infrastructure Registrar and Offshore Infrastructure Regulator
2.9The committee called officers from the Offshore Infrastructure Registrar and the Offshore Infrastructure Regulator and discussed the following matters:
The responsibilities of the two new bodies, including environmental considerations in relation to the track record of applicants;
Processes relating to granting of feasibility licences in the Gippsland and Hunter offshore infrastructure declared areas, including consultation with local communities.
Clean Energy Regulator
2.10The committee called officers from the Clean Energy Regulator and discussed the following matters:
Role of the Clean Energy Regulator in the transition to clean energy sources;
Value and purpose of contracts with EY to provide auditing services;
Uptake of rooftop solar panels across Australia and the enforcement of rooftop solar standards.
Australian Energy Regulator
2.11The committee called officers from the Australian Energy Regulator and discussed the following matters:
Concerns regarding the Australian Energy Market Operator’s formulation of the Integrated Systems Plan;
Operation of the emergency backstop mechanism in Queensland and the role of states and the Commonwealth in managing the energy grid;
The Australian Energy Regulator’s compliance and enforcement priorities.
Outcome 2: Conserve, protect and sustainably manage our natural resources including through a nature positive approach; protect and conserve our natural and cultural heritage; reduce and regulate the use of pollutants and hazardous substances; and take a leadership role on these issues internationally.
2.12In relation to Program 2.1: Conserve, protect and sustainably manage Australia’s natural environment through a nature positive approach, and Program 2.2: Protect Australia’s cultural, historic and First Nations heritage the committee discussed the following matters:
Lake Malbena ecotourism proposal in Tasmania including consultation with local Indigenous communities;
Timeline for the introduction of the revised Environment Protection and Biodiversity Conservation legislation to Parliament;
Status of conservation advice and actions taken in relation to prevent species loss, including the Maugean skate, in Macquarie Harbour, Tasmania;
Amount of funding allocated to fieldwork to protect threatened species;
Progress on recovery plans for Leadbeater’s Possum and Swift Parrot and the involvement of the states in the process;
Status of Jabiluka mineral lease and rehabilitation efforts including rehabilitation timelines and costings by Energy Resources of Australia;
Consultation on development of an applications process for sea dumping permits;
Status of projects under Resilient Landscapes Hub;
Timeline for the First Nations cultural heritage bill and the identification and recording of underwater cultural heritage sites.
Bureau of Meteorology
2.13The committee called officers from the Bureau of Meteorology (BOM) and discussed the following matters:
Conduct of senior BOM officials in recent court appearances;
A request from the minister for departmental advice in relation to BOM’s court case;
Turnover rates of BOM’s senior officers, and the duration of their employment with the agency;
Accuracy of BOM’s weather forecasting—long and short term;
BOM’s progress towards establishing water market date reporting;
Progress reports for BOM’s ROBUST IT project (addressing security and resilience risks) and Australis II (climate extremes alert IT system);
Staffing at BOM, staff culture and satisfaction.
Australian Institute of Marine Science
2.14The committee called officers from the Australian Institute of Marine Science (AIMS) and discussed the following matters:
Work on the refurbishment of the AIMS headquarters in Townsville;
Timelines and costing in relation to the multiple projects and related funding packages;
Goals of AIMS in the near future.
Infrastructure, Transport, Regional Development, Communications and the Arts portfolio
Department of Infrastructure, Transport, Regional Development, Communications and the Arts
2.15The committee commenced its examination of the Communications and the Arts outcomes of the Infrastructure, Transport, Regional Development, Communications and the Arts portfolio on 13 February 2024 with general questions of DITRDCA. The following matters were discussed during general questions:
Role of the Better Connectivity Plan for Regional and Rural Australia;
Expenditure on processing Freedom of Information (FOI) applications and the number and status of FOI applications;
Update on security clearances for access to the Minister’s office;
Funds to be recovered via the emergency services levy.
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.
2.16In relation to Program 5.1: Digital Technologies and Communications Services, the committee discussed the following topics:
How DITRDCA is responding to the recommendations in the final report from the House of Representatives social policy committee’s online gambling inquiry;
Interactions between the existing Ministerial power to direct the Australian Communications and Media Authority (ACMA) to investigate matters and the proposed mis- and disinformation laws;
Implementation of the Roadmap for Age Verification and the potential for the trial of age assurance technologies;
Information provided by DITRDCA regarding failed 000 calls during the Optus network outage;
Departmental monitoring and actions in relation to the prices of retail and wholesale broadband products.
Australian Broadcasting Corporation
2.17The committee called officers from the Australian Broadcasting Corporation (ABC) and discussed the following matters:
Management decisions regarding Antoinette Lattouf’s period as an ABC radio presenter;
Editorial standards and guidelines relating to reporting on the Israel-Gaza conflict;
Implementation of the ABC’s five-year plan;
Editorial approval of ‘vertical video’ and social media content;
Progress on the ABC racism review and related instances occurring at the ABC;
Conventions for references to ‘Australian Day’ and ‘Invasion Day’ in reporting on January 26 as well as editorial standards in relation to political viewpoints;
Effect of online abuse on ABC staff, specifically in relation to general staff turnover and wellbeing, and the impact on rural and remote staff;
Renumeration of the ABC Managing Director, as well as the renewal of his contract;
Risks to wellbeing of rural ABC journalists posed by adverse weather events;
Breakdowns of the costs of promotional content as well as the processes and briefs received in relation to the expenditure.
Australian Communications and Media Authority
2.18The committee called officers from the ACMA and discussed the following matters:
Details on the ACMA’s advice to DITRDCA regarding the proposed Misinformation and Disinformation Bill and the ministerial powers to instruct the ACMA to conduct investigations on Minister’s behalf;
Scope of the ANAO audit into the ACMA;
The ACMA’s role and participation in DITRDCA’s review into the Optus outage as well as scope of the ACMA’s own investigation into the Optus outage;
The ACMA’s response to breaches to the Broadcasting Services Standards code by ABC and SkyNews;
Number of sign-ups and feedback received from key stakeholder groups on Bet Stop initiative;
Progress of SMS ID pilot to combat scammers.
Australian Postal Corporation
2.19The committee called officers from the Australian Postal Corporation and discussed the following matters:
Welfare and advancement of female staff, the ratio of women in executive roles as well as across the organisation and the departure of senior female staff from the organisation;
Distribution and viability of rural, regional and urban post offices;
Staff diversity programs in relation to the performance of Australia Post;
Review of cost allocation processes and models and points raised by the Australian Competition and Consumer Commission (ACCC) in relation to the modelling;
Legal matters underway relating to the underpayment of Australia Post staff and licensed post offices.
Office of the eSafety Commissioner
2.20The committee called officers from the Office of the eSafety Commissioner and discussed the following matters:
Enforcement powers available for removing fight videos posted on social media;
The eSafety Commissioner attendance at the World Economic Forum and the effectiveness and authority of the eSafety Commissioner;
Appropriateness of links to third party websites on the eSafety Commissioner website;
Progress on online age verification;
Regulating the use of deepfakes;
Capacity for the eSafety Commissioner to enforce its infringement notices against multinational technology corporations;
Entities that assist the eSafety Commissioner to engage with schools and other relevant stakeholders to improve esafety for schoolchildren.
NBN Co Ltd
2.21The committee called officers from NBN Co Ltd. and discussed the following matters:
Comparison of uptake and cost of the rollout of NBN networks in greenfield and brownfield developments;
Market share of satellite and terrestrial services;
Trajectory of NBN Co cashflow and services provided;
Developments in low orbit satellite technology and the implications for NBN services;
Government equity funding for new projects and the composition of debt and equity on the NBN Co balance sheet.
Classification Board
2.22The committee called officers from the Classification Board and discussed the following matters:
Progress on DITRDCA’s review of Australian classification regulation;
Self-classification of published material.
Creative Australia
2.23The committee called officers from Creative Australia and discussed the following matters:
Levels of grant funding in regional areas and the ability of small rural creative organisations to access those grants.
Cross portfolio Murray-Darling Basin Plan matters
2.24On 16 February 2024, the committee examined the water outcomes and agencies of the Climate Change, Energy, the Environment and Water portfolio and the ACCC.
Inspector-General of Water Compliance
2.25The committee called officers from the Inspector-General of Water Compliance (IGWC) and discussed the following matters:
Commencement of new Water Market Data Standards and the reporting processes related to the new standards;
Concerns about disclosing of sensitive water market information to the media;
Feedback from surveys of water license holders on changes brought about by the Basin Plan;
Decreased perception of independence of the IGWC;
Adequacy of staffing levels of the IGWC office and challenges with recruiting staff including competition with similar governing bodies;
Number of current open IGWC investigations and how different categories of activities are captured in these investigations;
Progress of accreditation of NSW water resource plans.
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.
2.26In relation to Program 4.1: Water Reform the committee discussed the following matters:
Status and scope of complaints referred to the ACCC regarding water-related matters;
The ACCC’s capacity to act on complaints about water market intermediaries;
Cooperation from industry and key stakeholders in developing and designing an intermediaries code;
Improving information and transparency across water markets and the implementation of the recommendations of the Water Market Reform: Final Roadmap report;
Progress on the implementation of the plan to improve water flows in the Upper Murrumbidgee and engagement with NSW, Victoria and Indigenous Australians;
Issues relating to Snowy Hydro 2.0’s revenue from selling insurance policies;
Update on the flora and fauna impacts post-flood in South Australia;
Status of the Government’s strategic water purchasing tender of 44.3gigalitre per year (GL/y) to deliver the Murray–Darling Basin Plan;
The Murray-Darling Basin Authority’s (MDBA) Bridging the Gap tender process and catchments specific amounts;
Methodology for calculating cost recovery of the 450 GL/y and 650 GL/y targets;
Scope of consultation with locals regarding individual valley targets in the Restoring our Rivers draft framework released by DCCEEW;
Commonwealth powers in relation to compulsory acquisitions from the basin;
Impact of delivering additional water to South Australia on bank degradation/erosion along the Murray-Darling;
Implications for states of not signing the August 2023 agreement with the Commonwealth, to deliver the Murray-Darling Basin Plan in full;
Status of review into the MDBA’s two existing contracts with PwC and KPMG;
Geographical distribution of the 450 GL/y target outlined in the consultation for delivering the Basin Plan;
Shepherding of environmental water through Menindee Lakes;
Implications for water usage and availability resulting from South Australia's proposed hydrogen project;
Details of contract between DCCEEW and consultancy firm Marsden Jacobs Associates;
Division of state and Commonwealth funding associated with the Wilcannia weir project in NSW;
Status of committed federal funding to Cairns Regional Council;
Update on the Aboriginal water entitlements program.
Senator Karen Grogan
Chair