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Membership of the Legislation Committee

Members

• Senator Alan Eggleston, Chair (LP, WA)
• Senator Kate Lundy, Deputy Chair (ALP, ACT)
• Senator the Hon Kay Patterson  (LIB, VIC)
• Senate the Hon Michael Ronaldson (LIB, 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 Cory Bernardi (LP, SA)
• 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 John Watson (LP, TAS)
• Senator Ruth Webber (ALP, WA)
• Senator Penny Wong (ALP, SA)

Committee Secretariat

• Dr Ian Holland, 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

1.1        On 9 May 2006 the Senate referred the following documents to legislation committees for examination and report:

• particulars of certain proposed expenditure in respect of the year ending on 30 June 2007;
• particulars of proposed expenditure in respect of the year ending on 30 June 2007;
• particulars of certain proposed supplementary expenditure for the year ending 30 June 2006;
• particulars of proposed supplementary expenditure for the year ending 30 June 2006.[1]

1.2        The Committee was required to report to the Senate by 20 June 2006.[2]

Hearings

1.3        The Committee conducted public hearings on the Communications, Information Technology and the Arts portfolio on 22, 23 and 24 May 2006 and on the Environment and Heritage portfolio on 25 May 2006. The agenda is at Appendix 1.

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

http://www.aph.gov.au/senate/committee/ecita_ctte/estimates/bud_0607/index.htm

1.5        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.

Questions on notice – date for response

1.6        In accordance with Standing Order 26(9)(a), the Committee has fixed Friday, 28 July 2006 as the date for written answers or additional information to be provided in response to questions placed on notice.

Portfolio specific issues

Communications, Information Technology and the Arts portfolio

1.7        On the first day of its examination of the 2006-2007 Budget Estimates, the Committee examined the telecommunications area of the portfolio.

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

1.9        During its examination of estimates, the Committee raised a variety of issues which are noted below. The page numbers beside each issue refer to the proof transcript for Monday, 22 May 2006.

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

Telecommunications issues

Australia Post

• armed robberies at post offices, including LPOs and franchised outlets (pp 4-6)
• use of Australia Post nominated doctors (FNDs) (pp 6-14)
• impact of the Australian Industrial Relations Commission decision that the use of clause 26.5.10 to direct injured workers to attend an FND is unlawful (pp 6-9)
• change of policy in relation to sick leave taken before a public holiday (pp 12-15)
• conversion of corporate and LPO outlets to franchises (pp 15-16)
• impact of rising fuel prices on mail contractors (pp 17-18)
• ban on posting firearms and firearm parts (pp 18-22, 25)
• access to staff records (pp 22-24)
• mail services to northern Western Australia (p. 24)

Telstra

Questioning of Telstra took up most of the day (11.00 am to 8.40 pm) and covered a wide range of issues, including

• representation at estimates hearings (pp 25-28)
• roll-out of a fibre to the node network (FTTN) (pp 28-37)
• joint venture proposal for a fibre to the node network (pp 32-37, 53)
• trial of the New Ground program (pp 37-39)
• roll-out of Extel (pp 39-43)
• broadband infrastructure: fibre based and wireless technologies (pp 44-46)
• the Broadband Connect program (pp 46-47)
• requirement to obtain a broadcasting licence for the provision of IPTV services (pp 27-49, 53)
• timing for the introduction of 3G network and switching off the CDMA network (pp 48-53, 54-56)
• costs of 3G handsets and equipment (pp 52-53)
• provision of PC based filters (pp 59-61)
• filtering of spam (p. 61)
• filtering of sites containing offensive, violent and child pornographic images (pp 62-63)
• safety concerns about mobile phone towers installed on the roof of the RMIT building in Melbourne (pp 65-66)
• installation of mobile towers (pp 66-67)
• administration of and contribution to the Now we are talking website (pp 67-72, 83-85)
• procurement and tendering practices, including matters raised in
  • an Australian Financial Review article of 5 May entitled 'Connections line up at Telstra';
  • tabled document entitled 'Alcatel issues'
  • selection of Accenture for the BSS billing contract; and
  • the role of Mr Lamming (pp 72-79, 87-136)
• effects of cyclones Larry and Monica on services in North Queensland (pp 79-83)
• staff numbers and costs of the government relations area (pp 85-87)
• use of Google's add word service (pp 137-138)
• requirement for staff to work on public holidays (pp 138-139)
• provision of premium SMS services (p. 140)

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

• status of consultancy reports on the provision of disability equipment and on the concept of an any-to-any connectivity server (pp 141-142)
• installation of mobile towers on existing infrastructure (pp 143-144, 147-148)
• operation of the HiBIS scheme (pp 144-146)
• progress of negotiations between Telstra and the ACCC regarding the roll-out of the fibre to the node network (pp 148-149, 156-157)
• funding under the Broadband Connect program (pp 150-152, 157-160)
• the CDMA switch-off working group (pp 160-163).

1.10      The Committee continued its examination of this portfolio on its second day of hearings, commencing with the Australian Communications and Media Authority. The page numbers refer to the proof transcript for Tuesday, 23 May 2006.

Broadcasting issues

Australian Communications and Media Authority (ACMA)

After welcoming the new Chair of ACMA, questioning commenced on the following issues:

• protecting children from pornographic material on the internet, filters and the monitoring role of ACMA (pp 6-12)
• ACMA's oversight of the government's response to the RTI Connecting regional Australia report (pp 12-14)
• monitoring role of ACMA over services provided by the government funded Broadband Connect program (pp 15-16)
• review of ID checks for prepaid mobile phone customers (p. 17, 38)
• IPTV regulation in Australia (pp 19-25)
• ACMA discussion paper on the use of unassigned TV channels (pp 26-29)
• monitoring of the anti-siphoning list (pp 29-31)
• monitoring of mobile phone coverage initiatives (pp 31-32)
• review of the Spam Act (pp 33-34)
• capacity of commercial broadcasters to engage in multichannelling (pp 34-37)
• review of funding arrangement for ACMA (pp 37-38)

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

• the discussion paper on media policy and related matters (pp 38-44)
• roll-out of digital television services and switch off of analogue TV (pp 44-46)
• digital issues and multichanneling (pp 47-48)
• regulation of IPTV services (pp 50-52)
• internet filtering (pp 54-56)
• filtering of internet services in public libraries (pp 58-59)
• digital conversion for Imparja Television and digital roll-out in remote areas (pp 62-64)
• antisiphoning regime and listing of events (pp 64-72)
• status of the discussion paper on options for ACMA powers (pp 72-73).

1.11      Output 3.3, dealing with the Information and Communications Technology Industry and Output 3.4, dealing with the information economy were not called for questioning. The remainder of the day's hearing involved questioning of the Australian Broadcasting Corporation.

Australian Broadcasting Corporation (ABC)

• labelling of groups and organisations as terrorists or militants; use of expressions such as 'our' (pp 73-87)
• staffing and salary bands (pp 87-89)
• review of the ABC's anti-bullying policy and procedures (pp 89-90)
• funding for and projected output of drama productions (pp 90-94)
• current status of matters relating to Mr Kerry O'Keefe and Mr Cox (pp 94-96)
• staff training (pp 96-97)
• the decision not to renew Anne Sergeant's contract (pp 101-102)
• possible introduction of charges for downloading podcasts of ABC programs (pp 103-108)
• processes for the selection of the new Managing Director (pp 109-111)
• breaches of the editorial policy and style guides (pp 112-129).

1.12      Due to time constraints officers from the Special Broadcasting Service Corporation were not called, however the Committee flagged that questions would be put on notice to this agency.

Arts and Sport issues

1.13      On Wednesday, the Committee concluded its examination of the portfolio with its examination of the arts and sports outcomes, commencing with sport. The page numbers refer to the proof transcript for 24 May 2006.

1.14      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

Areas of inquiry included:

Australian Sports Anti-Doping Agency (ASADA)

• introduction of a Stamp Out Doping hotline via a website address and a toll free telephone number (pp 5, 51-52)
• staff and business structure for the new agency (pp 7-8)
• recruiting procedures for filling vacancies (pp 8-12)
• terms and conditions under the certified agreement (pp 12-19)
• consultancies, process for selection (pp 19-22, 27-30)
• role of Mr Richard Young (pp 23-26)
• transfer of staff from ASDA to ASADA (pp 34-39)
• testing procedures (pp 43-47)
• education processes, including mandatory face-to-face education session (p. 50)
• appropriations for past three financial years, disaggregating expenditure related to the Commonwealth Games (pp 54-55)

Australian Sports Commission (ASC)

• annual figures for the high performance athlete development, coaching, sports science and sports excellence programs (pp 52-54, 55-63)
• appropriations for past three financial years (p. 63)
• direct athlete support (DAS) payment program (pp 66-70)
• compensation package for regional universities to offset the impact on sport of the VSU legislation (pp 70-71)
• current membership of the board (pp 72-74)
• current status of the active after school hours program (pp 74-76)
• changes to the AIS caffeine policy (p. 77)

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

• appropriations for the past three financial years for outcome 2 (p. 63).

1.15      At the conclusion of the examination of the sports sector, the Australia Business Arts Foundation was called, with other arts agencies questioned until the conclusion of the day's hearing.

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

Issues canvassed included:

Australia Business Arts Foundation (AbaF)

• breakdown of the funding for AbaF's programs to support artists (p. 81)

Australia Council

• performance indicators for recent initiatives to boost incomes and employment opportunities for Australian dancers, writers, visual artists, musicians and Indigenous artists (pp 83-84)
• funding for new media projects (pp 85-87)
• impact for orchestra members of moving from Comcare to state compensation schemes (pp 88-89)
• grants to the Melba Foundation (pp 90-93, 94)
• appointment of a new Chair (p. 93)

Film Finance Corporation

• status of review of the 10B and 10BA film tax incentives and the film tax offset (p. 95)
• input to the review of the full range of government support measures for funding films in Australia (pp 95, 97)

Film Australia Limited

• input to the review of the full range of government support measures for funding films in Australia (p. 97)
• extra hours of documentary content to be produced (p. 98)

Australian Film, Television and Radio School

• input to the review of the full range of government support measures for funding films in Australia (p. 98)
• update on progress for moving the school to new premises (p. 99)

Australian Film Commission

• update on the progress of the appointment of a new CEO (pp 99, 101-103)
• input to the review of the full range of government support measures for funding films in Australia (p. 99)
• impact of additional funding on the script development project (p. 101)
• appropriations for the past three financial years (p. 105)
• transfer of the national film and video lending collection from the National Library to the National Film and Sound Archive (NFSA) (p. 105)

Australian National Maritime Museum

• impact of the introduction of free admission on visitor numbers (pp 106-107)
• measures taken to protect the museum's fleet (pp 107-112)

National Archives of Australia

• archiving of electronic documentation project (pp 112-113)
• progress of the digitisation project (p. 113)

National Gallery of Australia

• funding for proposed upgrades (p. 114)
• occupational health and safety issues at the NGA (pp 116-123)

National Library of Australia

• proposed changes by the National Capital Authority to the precinct at the front of the Library (pp 124-125)
• transfer to the NFSA of the national film and video lending collection (pp 125-126)

National Museum of Australia

• process for adding to the national historical collection (pp 126-131)

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

• proposal for a resale royalty scheme (pp 134-138)

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

• progress of the construction of the new National Portrait Gallery (pp 132-134).

Environment and Heritage portfolio

1.16      Having concluded its examination of the Communications, Information Technology and the Arts portfolio, the Committee called officers from the Environment and Heritage portfolio on the fourth day of hearings.

1.17      The Committee welcomed Senator the Hon Ian Campbell, Minister for the Environment and Heritage, and then moved to specific items on the agenda. The page numbers refer to the proof transcript for Thursday, 25 May 2006.

Outcome 2—Australia’s interests in Antarctica are advanced

Antarctic Division

• status of the anti-whaling nations leading into the next International Whaling Commission meeting (pp 3-7, 10)
• protection of mineral resources in the Antarctic Territory (pp 8-9, 10-12)
• nomination of Antarctica as a World Heritage site (pp 16-17)

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

Supervising Scientist Division

• number of incidents reported of leaks and problems associated with Ranger (p. 19)
• rehabilitation measures at Jabiluka (pp 20-21)

Bureau of Meteorology

• additional funding for replacement and upgrade of radars (pp 21-22)
• progress report on the tsunami warning system for the Indian and Pacific oceans (pp 22-24)
• upgrade and replacement of equipment for the National Tidal Centre (p. 24)
• categorisation of cyclones (pp 24-25)
• VHF radio marine weather forecasts in Far North Queensland (pp 25-26, 29)
• current and projected sea level rises around Australia (pp 26-28)

Great Barrier Reef Marine Park Authority

• current staffing figures (pp 29-30)
• funding for a rapid response vessel (pp 30-31)
• progress report of the review of the Authority (pp 36-37)
• establishment of the Marine and Tropical Sciences Research Facility (MTSRF), research funding (pp 39-43)
• number of Indigenous staff (p. 44)
• activities to strengthen the partnerships with traditional owners and other Indigenous groups (p. 44)
• level of NHT funding (pp 44-45)
• impact of the representative areas rezoning program on fishing interests (pp 45-53)

Office of the Renewable Energy Regulator

• number of renewable energy certificates (RECs) issued under the mandatory renewable energy target (MRET) and anticipated target date (pp 53-54)
• fines imposed for failure to meet REC targets (pp 54-55)

Director of National Parks and Parks Australia Division

• progress of the crazy ant control program on Christmas Island (p. 56)
• responsibility for rehabilitation programs on Christmas Island (pp 57-58)

Department of the Environment and Heritage

Approvals and Wildlife Division

• protection of endangered species (pp 59-61)
• construction of wind farms and the protection of the orange-bellied parrot (pp 64-92)
• approved quotas for kangaroo cull (pp 95-96)
• approval and monitoring of the False Cape, Queensland, development (pp 100-106)

Policy Coordination Division

• international environment aid projects (pp 98-100)

Environment Quality Division

• Government response to the Sustainable cities report (pp 107-108)
• biodiesel and the standards for biodiesel (pp 108-110)

Heritage Division

• cultural heritage reference group report on Iraq cultural property and records (pp 111-112)
• funding provided to certain churches for repair and maintenance programs (pp 112-115)
• listings on the National Heritage List (pp 115-117, 119)
• nomination of the Burrup Peninsula to the National Heritage List (p. 118)

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

• establishment of the Asia-Pacific clean development and climate pact (pp 120-121, 123)
• placements of sea level monitoring equipment (pp 128-129)

Land, Water and Coasts Division

• government response to the ECITA References Committee's report on invasive species (pp 129-130)
• evaporation levels of the Menindee storage lakes system (p. 131)

Marine Division

• implementation of the UN resolution on deep sea/bottom trawling (pp 133-134)
• national plan of action for the conservation of sharks (p. 134)

National Resource Management Programmes Division

• appointment of the Cape York Natural Resource Advisory Group (pp 134-138).

1.18      There were no questions for the Policy Coordination Division. Nor were officers from the Sydney Harbour Federation Trust called before the Committee.

Matters arising during the inquiry

Late return of responses to questions on notice

1.19      The Committee has repeatedly expressed its concern in previous reports 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.

1.20      The Committee again raised the issue at this round of hearings, indicating there was still one answer outstanding from the Communications, Information Technology and the Arts portfolio.

1.21      In setting 28 July 2006 as the deadline for answers to questions on notice from the current round of hearings, the Committee believes that it is allowing ample opportunity for answers to be carefully considered and submitted in a timely manner.

Comprehensiveness of Budget Estimates process

1.22      The Committee has held the longstanding view that all Government agencies should expect to have to account for their activities at Budget estimates. The Senate has also frequently stated its view that there are no areas in connection with the expenditure of public funds where any person has a discretion to withhold details or explanations from the Parliament or its committees unless the Parliament has expressly provided otherwise.

1.23      During this round of Estimates, several agencies and departmental output areas (for example, the Special Broadcasting Service (SBS) and DCITA outputs 3.3 and 3.4) were listed on the program but were not called for examination. However, as the Chair has noted in previous estimates,[3] the Committee expects that all agencies will be available for the main round of Budget Estimates, unlike Supplementary Estimates where senators nominate agencies they wish to examine.

1.24      In previous estimates hearings, in the interests of comprehensiveness and transparency, the Committee resolved to list all government companies in the program under the relevant departmental outcome. It was left to the discretion of officials to determine whether company representatives needed to attend the hearings in person or whether departmental officers were sufficiently knowledgeable to respond to the Committee's inquiries on their behalf.

1.25      The Committee continued this practice for this Budget round. While not all government companies were the subject of questioning on this occasion, the Committee believes that, by including all relevant government agencies in the hearing program, senators are made aware of the opportunity to be able to hold them to account for their activities at least once a year.[4]

Acknowledgements

1.26      The Committee thanks Senators Coonan, Kemp, and Campbell, and officers from portfolio departments and agencies, for their assistance during this Budget 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:          Budget Estimates 2006–2007

                                      Monday, 22 to Thursday, 25 May 2006

                                      and, if required, Friday, 26 May

                                      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, 22 May 2006

Committee Chair: Senator Eggleston
Contact:  Jacquie Hawkins 02 6277 3528
Committee Room 2S3; Ph: 02 6277 5853

Appendix 2 - Documents tabled

Monday, 22 May 2006

• Senator Conroy - copies of two envelopes relating to questions asked of Australia Post
• Senator Conroy - Telstra document marked 'Commercial-in-confidence' entitled Alcatel issues

Thursday, 25 May 2006

• The Minister - copy of a Department of Sustainability and Environment (Vic) document entitled Flora & Fauna Guarantee Action Statement #43 Orange-bellied Parrot
• The Minister - a copy of an undated letter he sent to the electors of McMillan prior to the last federal election
• Senator Carr - copies of three emails:
  1. dated 7 April 2006, sent 10.11 am, from Ian Smales to Ashley Stephens;
  2. dated 7 April 2006, sent 10. 28 am from Ashley Stephens to Ian Smales; and
  3. dated 7 April 2006, sent 10.53 am from Ian Smales to Ashley Stephens.
• The Minister - copies of two letters and a doorstop transcript:
  1. letter from Mr Mark Latham, Leader of the Opposition, dated 31 August 2004;
  2. letter from Mr Christian Zahra MP dated 10 September 2004;
  3. transcript of doorstop with Federal lab or Leader Mark Latham, Perth, 27 September 2004 re Election Campaign 2004.
• The Minister - for incorporation into Hansard a copy of an email, tabled earlier by Senator Carr, dated 7 April 2006, sent at 10.11 am, with certain passages underlined.

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