Labor senators note that exploration of the Beetaloo has been underway for many years. This activity has contributed to the economy of the Northern Territory through direct and indirect jobs and spending.
However, Labor senators maintain concerns about transparency and accountability of federal government support for private companies undertaking petroleum exploration in the Beetaloo, particularly the actions of ministers and some private companies.
Throughout the inquiry, the Senate and the committee have sought to obtain information from the Minister for Energy and Emissions Reduction, the Hon Angus Taylor MP, and the Minister for Resources and Water, the Hon Keith Pitt MP (collectively, ‘the Ministers’), to enable full and proper scrutiny of the Beetaloo Cooperative Development Program (BCD Program).
In support of this inquiry, the Senate agreed to two orders for the production of certain documents from the Ministers. The committee also placed two sets of written questions on notice with the Ministers: the first seeking clarification of information provided earlier to the Senate; and the second requesting the Ministers to furnish full and proper answers to the request for clarification (‘the correspondence dated 22 October 2021’).
The Ministers purported to comply with the Senate’s first order for production, concurrently forwarding to the committee their responses to the correspondence dated 22 October 2021. However, the Ministers did not provide the unredacted documents specified, providing instead the exact same heavily redacted document released under the Freedom of Information Act 1982 (FOI Act) and erroneously citing the application of that Act, which does not apply to Senate Orders.
Labor senators note that the Ministers’ attention had been specifically drawn to Senate Procedural Resolution 51, which recalls statements made by the Senate Standing Committee on Procedure that:
(i) there is no basis in law for the application of the FOI Act to the production of documents to a House,
(ii) if a minister were to regard all of the exemption provisions in the FOI Act as grounds on which to claim a privilege against disclosure of information to a House, this would considerably expand the grounds of executive privilege hitherto claimed, and
(iii) the use of the provisions of the FOI Act as a checklist of grounds for nondisclosure does not relieve a minister of the responsibility of carefully considering whether the minister should seek to withhold documents from a House, or from considering the question in the context of the importance of the matters under examination by the House.
On 1 December 2021, the Senate again ordered the Ministers to produce the unredacted documents sought by the committee. The Ministers made no claim for Public Interest Immunity, a recognised grounds for non-production, they simply responded that they had ‘complied’, leading to a third request from the committee for the unredacted documents. This request noted that ‘it would be reasonable for personal details to remain redacted’ however, much of the redaction did not relate to personal details.
It is unacceptable that the Ministers’ behaviour has been deliberate and designed to cause maximum disruption to the committee’s examination of these important matters. Equally, the Ministers’ actions clearly demonstrate the disdain the federal government has for the proper scrutiny of the use of taxpayers’ money.
As Senator Murray Watt stated:
…when taxpayers' funds are being provided to private sector interests, whether it be in the gas industry or any other industry, we need to be confident that those grants have been administered and approved on a completely above-board basis. I think we are right to be concerned about the distribution of these grants in particular… [W]e have at least four occasions when ministers or other witnesses appear to have given misleading information to either the Senate or this inquiry... Labor will use the Senate inquiry to pursue this apparent misleading evidence from witnesses. What we will also do is move another motion for an order to produce documents this week in this chamber to seek all correspondence relating to Minister Taylor's visit to the Northern Territory, there is a stench around these grants.
Labor senators will continue to ensure the actions of the Ministers do not go without due scrutiny. Following the tabling of the Interim Report, Ms Madeleine King MP, Shadow Minister for Resources, Senator the Hon Kristina Keneally, Deputy Leader of the Opposition in the Senate, along with the Leader of the Australian Greens, raised serious probity concerns about the administration of the BCD Program and requested an audit by the Australian National Audit Office (ANAO). Whilst there is no current intention for the ANAO to conduct an audit, Labor senators hope this will be a possibility in the future.
In addition, the Interim Report of August 2021 focussed on the BCD Program, which aims to encourage and facilitate oil and gas exploration in the Beetaloo, and an associated funding instrument, the Industry Research and Development (Beetaloo Cooperative Drilling Program) Instrument 2021 (Instrument).
On 17 December 2020, Minister Pitt announced the BCD Program. This program provides up to $50 million over two years for petroleum exploration that occurs in the Beetaloo before 30 June 2022. Eligible applicants can apply for grants of up to 25 per cent of eligible project expenditure, with a minimum of $750 000 and a maximum of $7.5 million per well.
On 7 July 2021, Minister Pitt announced the first grants under the BCD Program. Imperial Oil and Gas, a fully owned subsidiary of Empire Energy Group Ltd, was successful in its applications for up to $21 million for three exploration wells in the Exploration Permit 187 area. These grants were examined in some detail in Chapter 2 of the Interim Report.
The BCD Program is open for funding applications until 30 June 2022 or until fully subscribed (whichever is the earlier). Since tabling of the Interim Report, a fourth grant has been made under the program—to Sweetpea Petroleum Pty Ltd (Sweetpea) for $7.5 million.
Tamboran Resources Ltd (Tamboran) owns 100 per cent of Sweetpea. Tamboran declined to appear at any of the public hearings, including when summoned to do so on 25 March 2022. The committee therefore had no opportunity to ask Tamboran about the project, including, for example, the status and extent of its environmental approvals.
The committee considered it critical to the inquiry that Tamboran attend a public hearing to answer questions about Tamboran and Sweetpea’s joint venture in the Beetaloo, to ensure transparency and accountability of the BCD Program and that taxpayer funds are being expended appropriately and in the public interest.
Labor senators note the details contained in the Second Interim Report detailing the multiple invitations and follow-ups issued to Tamboran prior to the decision of the committee to issue a summons.
At that time, the committee noted that there would not be sufficient time to allow for a referral and consideration of this matter by the Standing Committee of Privileges in the 46th Parliament. However, the committee has commenced this process and will pursue it further in the 47th Parliament.
It is highly unsatisfactory for information and evidence from Tamboran not to be available to the committee. Collectively, the failure of the federal government, the Ministers and this private company to provide adequate information across the course of the inquiry in various respects results in the public’s faith in the spending of public money, and ultimately in the process for the exploration of the Beetaloo Basin, being undermined.
Senator Nita Green
Member
Senator Malarndirri McCarthy
Member
Senator Glenn Sterle
Member