Chapter 2Portfolio-specific issues
2.1This chapter provides an overview of some of the matters raised during the committee's May 2023 hearings on Budget 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 22 May 2023 with general questions of the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
2.3The following matters were discussed during general questions:
Funding arrangements for the Environmental Defenders Office and Environmental Justice Australia;
Level of departmental resourcing allocated for coal mine approvals;
Rationale for renaming the divisions of the department;
Increase in administered assets and liabilities;
Assurances from PwC Australia relating to its consulting work for the department; and
Collaboration with the Property Management and Projects Branch of the Department of Finance.
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:
Climate Change Authority Chair, Mr Grant King, conflict of interest declaration;
Departmental advice to the Minister for the Environment and Water relating to the Isaac River coal mine in Central Queensland;
Whether the rate of clean energy investment and development is sufficient to meet the Government’s 82 per cent renewable energy share of the National Electricity Market by 2030;
Department’s awareness of the issue of modern slavery in solar panel supply chains;
Funding for, and departmental collaboration with, the new net zero authority;
Concerns relating to electric vehicle range and safety;
Financial support for, and modelling relating to, Hydrogen projects;
Projection of 1.5 degree global temperature increase and Australia’s climate policy;
Clarification of methodology for reporting forestry carbon credits;
When Snowy Hydro projects will be operational;
Emissions projections from the Beetaloo gas development;
Application of the Safeguard Mechanism to particular industrial facilities and its impact on supply chains;
$500 household energy bill relief payment and reducing power prices;
Northern Territory Fracking Inquiry and potential for an Environment Protection Biodiversity Conservation Act (EPBC Act) Water Trigger;
Assumptions underlying the CSIRO’s GenCost report relating to cost of electricity generation from renewable and non-renewable energy sources;
Cost effectiveness of community batteries;
Full Carbon Accounting Model assessment of land use and land cover changes;
Stakeholder engagement for, and efficacy of, Rewiring the Nation projects;
Federal funding for the ACT Sustainable Household Scheme;
Implementation of the Powering the Regions Fund and Driving the Nation scheme;
Outcomes of Government funded carbon capture projects; and
Rationale for the level of funding for transmission projects under Rewiring the Nation.
Director of National Parks
2.5The committee called officers from the Director of National Parks and discussed the following matters:
The proposed expansion of the Macquarie Island Marine Park and associated fishing industry;
Access to clean water and sanitation for the Mutitjulu community, located near Uluṟu;
Concerns regarding the construction of transmission lines and potential degradation of national parks; and
Funding for national parks under Budget appropriations.
Australian Energy Regulator
2.6The committee called officers from the Australian Energy Regulator and discussed the following matters:
Regulation of gas disconnection charge;
Objectives of reducing emissions and reducing the cost of energy;
Rationale for undergrounding transmission lines;
Application of state landholder compensation requirements to transmission projects; and
Release of the electricity price safety net.
Clean Energy Finance Corporation
2.7The committee called officers from the Clean Energy Finance Corporation (CEFC) and discussed the following matters:
Collaboration with retail energy companies;
Additional funding for the CEFC in the Budget;
Rate of return on the CEFC’s renewable energy investments;
Conditions and benefits of the CEFC’s green home loan products;
CEFC’s investment in Sunman and other clean technology companies; and
CEFC’s loan and equity balance sheet.
Snowy Hydro Limited
2.8The committee called officers from Snowy Hydro Limited (Snowy Hydro). In his opening statement, CEO Mr Dennis Barnes outlined how Snowy Hydro is addressing issues related to the completion timeline delay and changes to the cost schedule of Snowy 2.0. He also sought to emphasise progress that has been made on tunnelling to the project’s underground power station, and excavation on water intakes at the Tantangara and Talbingo reservoirs.
2.9The committee also discussed the following matters:
Timelines for tunnelling progress and delays;
Payments made to the former Snowy Hydro CEO Mr Broad on his resignation;
Capital costs of electricity generation from Snowy Hydro projects; and
Upwards revisions of Snowy Hydro project budgets.
Australian Renewable Energy Agency
2.10The committee called officers from the Australian Renewable Energy Agency (ARENA). In his opening statement, CEO Mr Darren Miller discussed the funding ARENA had been allocated in the Budget for the Hydrogen Headstart program, and the ways it would be used to support the Australian green hydrogen industry.
2.11The committee also discussed the following matters:
Selection of recipients of solar R&D grants; and
ARENA investments in Hydrogen projects.
Australian Energy Infrastructure Commissioner
2.12On 23 May 2023 the committee resumed its examination of the Climate Change, Energy, the Environment and Water portfolio with the Australian Energy Infrastructure Commissioner. The committee discussed the following matters:
Project overviews, including the Victoria to NSW Interconnector West project and the Marinus Link;
Stakeholder engagement and compensation relating to energy infrastructure projects;
Responsibility for, and costs associated with, decommissioning energy infrastructure;
Taking and resolving complaints about wind and solar projects; and
Managing the impacts of energy infrastructure development on biodiversity and communities.
Clean Energy Regulator
2.13The committee called officers from the Clean Energy Regulator and discussed the following matters:
Impact of Safeguard Mechanism and Carbon Border Adjustment Mechanism on Australian exports;
Status of suspended human-induced regeneration projects and plans for an independent review;
Methodology for measuring Australia’s carbon emissions;
Capacity to oversee a future Nature Repair Market;
Timeline for the release of carbon estimation areas;
Application of renewable energy shortfall charge and renewable power percentage; and
Australian Carbon Credit Unit accreditation process for farmers.
Climate Change Authority
2.14The committee called officers from the Climate Change Authority (CCA) and discussed the following matters:
Climate-related financial disclosure under the Safeguard Mechanism requirements;
Contribution of the expansion of Australia's coal and gas industry to national emissions;
Progress on the review of methane reporting;
Carbon farming methods; and
Management of conflicts of interest and the application of Authority Charter to board members.
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.
2.15In 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:
Implications of EPBC Act reforms for regional forestry agreements;
Cessation of native timber forestry in Victoria by 2023;
Status of an Environmental Impact Statement for the Middle Arm Sustainable Development Precinct;
Protection of Indigenous sacred sites under cultural heritage laws;
Progress on marine bioregional plans;
Establishment of Environment Protection Australia;
Funding for threatened species and biodiversity protection in the Budget;
Modelling of demand for biodiversity certificates under the Nature Repair Market;
Approval process for the Isaac River coal mine, the Bowen Basin coal mine and the Towrie gas development in Queensland;
Use of megafrackers in the Beetaloo Basin;
Recovery Plan for the Leadbeater's Possum;
Delays in the publication of decisions made under the EPBC Act;
Proposed agreement for the importation and storage of carbon dioxide in Australia;
Assessment of a proposed tailings dam in Tasmania's Tarkine region;
Conservation of Tasmanian Devils and Maugean skates;
Impacts of renewable energy projects on biodiversity; and
World heritage assessment and protection of the Great Australian Bight.
2.16In relation to Program 2.3: Accelerate the transition to a circular economy, while safely managing pollutants and hazardous substances, the committee discussed the following matters:
Initiatives for developing recycled materials and products industries;
Environmental and health impacts of per- and polyfluoroalkyl substances;
Additional funding and revenue associated with recycling; and
Regulatory model for plastic packaging recycling.
Bureau of Meteorology
2.17The committee called officers from the Bureau of Meteorology and discussed the following matters:
Release of parallel temperature data from Brisbane Airport;
Margin of error and tolerances for meteorological observations;
Trends in global average temperatures;
Cost recovery for aviation meteorological services; and
Responsibility for elements of the flood warning system.
Great Barrier Reef Marine Park Authority
2.18The committee called officers from the Great Barrier Reef Marine Park Authority and discussed the following matters:
Distribution of publications and other information;
Engagement with the Special Envoy for the Great Barrier Reef;
Crown-of-thorns starfish outbreaks and monitoring; and
Non-lethal shark mitigation initiatives.
Australian Institute of Marine Science
2.19The committee called officers from the Australian Institute of Marine Science (AIMS). Dr Paul Hardisty used his opening statement to outline some of milestones AIMS had achieved since he became CEO in 2017, including a doubling of externally sourced revenue, the publications of the ninth edition of the AIMS index of marine industry, embarking on a macroalgae carbon sequestration research project to double the size of the National Sea Simulator, and establishing a standard of free, prior and informed consent from traditional owners for all AIMS projects. Dr Hardisty stated that the extra funding allocated to AIMS in the Budget would allow it to ‘continue to deliver the world-leading science that we need to face the challenges of the future as climate change, biodiversity loss and pollution continue to degrade the world's oceans and the life they contain’.
2.20The committee also discussed the following matters:
Funding and staffing levels following the Budget;
Seaweed carbon sequestration project; and
Maritime assets and facilities.
Outcome 3: Advance Australia’s environmental, scientific, strategic and economic interests in the Antarctic region by protecting, researching and administering in the region, including through international engagement.
2.21In relation to Program 3.1: Contribute to Australia’s national Antarctic interests through science, environmental management and international engagement, including delivering Australia’s scientific research and operations in Antarctica and the Southern Ocean, the committee discussed the following matters:
Progress on the Macquarie Point Antarctic and Science Precinct proposal;
Interdepartmental collaboration on the Macquarie Wharf upgrade;
The effects of climate change on the Antarctic ice sheet; and
Implementation of the recommendations of the Independent Review of Workplace Culture and Change at the Australian Antarctic Division.
North Queensland Water Infrastructure Authority
2.22On 26 May 2023, the committee resumed its examination of the water and environment outcomes of the Climate Change, Energy, the Environment and Water portfolio with the North Queensland Water Infrastructure Authority (NQWIA). The committee discussed the following matters:
The disbandment of the NQWIA and the continuation of the projects it manages; and
Water supply and the needs of North Queensland's growing population.
Threatened Species Scientific Committee
2.23The committee called Professor Helene Marsh, Chair of the Threatened Species Scientific Committee (TSSC). In her opening statement, Professor Marsh outlined the role of the TSSC of providing advice to the Minister relating to the listing of threatened species and ecological communities, including advice which informed 107 ministerial decisions to list fire affected species and ecological communities.
2.24The committee also discussed the following matters:
TSSC recommendations regarding the risks posed by native forest logging and climate change to species;
Adequacy of funding for threatened species recovery;
Research and conservation actions in relation to the Maugean skate; and
Approvals of Threat Abatement Plans and critical habitat declarations.
Infrastructure, Transport, Regional Development, Communications and the Arts portfolio
Department of Infrastructure, Transport, Regional Development, Communications and the Arts
2.25The committee commenced its examination of the Communications and the Arts outcomes of the Infrastructure, Transport, Regional Development, Communications and the Arts portfolio on 24 May 2023 with general questions of the Department of Infrastructure, Transport, Regional Development, Communications and the Arts.
2.26The following matters were discussed during general questions:
Resourcing and data related to Freedom of Information requests; and
Increases in staffing and resourcing levels.
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.
2.27In relation to Program 5.1: Digital Technologies and Communications Services, the committee discussed the following topics:
Implementation of the Regional Connectivity Program;
Allocation and delivery of the Mobile Black Spot Program sites;
Timeline for, and consultation on, a review of the anti-siphoning legislation;
Potential for mobile tower-sharing between service providers;
Applications of the proposed mis- and disinformation legislation package;
Ministerial response to journalist Mr Stan Grant stepping down from his role at the Australian Broadcasting Corporation (ABC);
Status of the News Media Assistance Program;
Contracts with PwC Australia;
Changes in the level and model for eSafety Commissioner funding;
Ministerial meetings with gambling companies and harm reduction advocates;
Implementation of the BetStop national gambling self-exclusion register;
News Media bargaining code negotiations on behalf of SBS; and
Plans for cell broadcast messaging system for use during national disasters.
Australian Broadcasting Corporation
2.28The committee called officers from the Australian Broadcasting Corporation (ABC) and discussed the following matters:
Response to online racial abuse of Stan Grant following King Charles’ coronation coverage;
Diversity of the ABC Board and senior executive;
Staff experiences of racism at the ABC;
Scrutiny of the ABC by other media outlets;
Funding and implementation of the ABC’s People Hub HR system;
Application of impartiality standards to political coverage and employee personal social media use;
Moderation of comments from the public on ABC social media posts;
Pay rise for ABC employees;
Legal complaints and litigation relating to ABC reporting;
Progress of News Media Bargaining Code negotiations with Facebook and Google; and
Engagement with the anti-siphoning review and content quota proposals.
Special Broadcasting Service Corporation
2.29The committee called officers from the Special Broadcasting Service Corporation and discussed the following matters:
Funding allocation for NITV;
Proportion of revenue from gambling advertising; and
Proposed relocation of SBS headquarters and studios to Western Sydney.
Australian Communications and Media Authority
2.30The committee called officers from the Australian Communications and Media Authority (ACMA) and discussed the following matters:
Establishment of the National Anti-Scam Centre and the SMS ID scam registry;
Research on gambling during sporting events and progress on the BetStop self‑exclusion registry;
Powers to regulate digital platforms hosting scams;
Breaches of, and issues, with media editorial codes;
Potential regulatory approaches to use of artificial intelligence in the media industry; and
ACMA’s responsibility for actions under the Interactive Gambling Act.
Office of the eSafety Commissioner
2.31The committee called officers from the Office of the eSafety Commissioner (the eSafety Commissioner). Commissioner Ms Inman Grant’s opening statement highlighted the benefits of predictable baseline funding for the eSafety Commissioner:
It helps us to plan, move forward, realign and become a stronger regulator, focused on education and awareness and the execution of our regulatory and investigative schemes. That's really necessary, because in the first three months of this year we have seen a tripling of child sexual abuse image reports. We've also seen a tripling of sexual extortion reports into our office.
2.32The committee also discussed the following matters:
Funding arrangements since the creation of the eSafety Commissioner in 2015;
Investigations into online posts of criminal activity;
Monitoring and reporting of social media posts;
Remedies available under the Online Safety Act for abusive content hosted on Twitter; and
Application of hate speech rules to online platforms.
Australian Postal Corporation
2.33On 25 May 2023, the committee resumed its examination of the Infrastructure, Transport, Regional Development and Communications and Arts portfolio with the Australian Postal Corporation (Australia Post). In his opening statement, CEO Mr Paul Graham discussed the need for a modernisation of postal services in the context of the continued decline in Australia Post’s letter business and foot traffic across its post office network, highlighting the need for Australia Post to become financially sustainable as a self-funded entity. Mr Graham indicated that digitisation of services and expansion of Bank@Post would be central to this modernisation program, and also drew the committee’s attention to several social and environmental initiatives that Australia Post funds, including a $100million sustainability bond.
2.34The committee also discussed the following matters:
Australia Post’s role in auditing the Mobile Black Spot Program;
Bank@Post and the viability of financial services in regional Australia;
Support for regional and rural post offices;
Value of Australia Post's consulting contracts;
Restrictions on Licenced Post Offices accepting parcels from other carriers;
Increase in the costs associated with parcel deliveries and services; and
Rollout of electric delivery vehicles.
NBN Co Limited
2.35The committee called officers from NBN Co Limited (NBN Co). In his opening statement, CEO Mr Stephen Rue outlined recent activities of NBN Co, including meeting the revenue target set out in its corporate plan (achieving an annual revenue of $3.95 billion), expanding access to the National Broadband Network (NBN) to 8.5 million households and businesses across Australia, and making speeds of 50 megabits per second or above available to three-quarters of connections. He also discussed the need for NBN Co to explore replacement options for its aging Sky Muster satellite, the delivery of the Fibre Connect program to expand fibre to the premises services, and progress towards a special access undertaking with industry and the Australian Competition and Consumer Commission, with the intention of delivering a sustainable long-term pricing framework for the NBN.
2.36The committee also discussed the following matters:
Consumer choice between Sky Muster and Starlink’s satellite internet services;
NBN upgrades in the ACT;
Investments in satellite and network infrastructure; and
Progress on the School Student Broadband Initiative.
Classification Board
2.37The committee called officers from the Classification Board and discussed the following matters:
Process for the classification of submittable publications;;
Classification of graphic novels with sexual content; and
Classification system for video games.
Outcome 6: Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression.
2.38In relation to Program 6.1: Arts and Cultural Development, the committee discussed the following topics:
Reinvestment of the Live Performance Support Fund;
The objectives and makeup of the Board of Music Australia;
Creative Workplaces element of the Creative Australia Bill;
Ministerial responsibility for the legislation to establish a minimum Australian content quota for streaming services; and
Support for the Australian digital games industry.
Australia Council
2.39The committee called officers from the Australia Council and discussed the following matters:
Planned merger with Creative Partnerships Australia;
Consultation on the establishment of Music Australia and Creative Workplaces;
Challenges faced by artists in Australia;
Support for regional arts organisations and projects; and
Agency electricity supply.
Screen Australia
2.40The committee called officers from the Screen Australia and discussed the following matters:
Funding streams for video games, television and film;
Support for First Nations game and screen productions;
Developing Australian content for export and co-productions; and
Opportunities for newcomers to the film and games industries.
National Museum of Australia
2.41The committee called officers from the National Museum of Australia (NMA). In her opening statement, Acting Director Ms Ruth Wilson welcomed additional funding for the NMA and the launch of the National Cultural Policy, which she stated would underpin the NMA’s new strategic plan for 2023-27.
2.42The committee also discussed the following matters:
Recent NMA visitation numbers; and
Funding for NMA building repairs and capital works.
National Archives of Australia
2.43The committee called officers from the National Archives of Australia (NAA). Mr Simon Froude briefly discussed the work he had overseen since becoming Director-General of the NAA:
In the 12 months since I commenced in the role, I've focused on leading National Archives through a process of necessary change to meet the future needs of government and the expectations of the Australian public. The National Archives operating model is shifting to a digital-first and audience-centred approach, with national offices supported by local expertise. Continuing to embed this model in the coming year will enable National Archives to manage the evolving collection; share the collection in an equitable and efficient way, in particular to support First Nations people access; and lead in government accountability.
2.44The committee also discussed the following matters:
Funding requests for NAA capital works and building repairs;
Acquisition and digitisation of NAA materials;
Receipt and appraisal of materials for additions to the NAA collection; and
Release of Cabinet records.
National Library of Australia
2.45The committee called officers from the National Library of Australia and discussed the following matters:
Funding requests and challenges associated with building repairs and maintenance; and
Additional funding for the Trove online research portal.
National Gallery of Australia
2.46The committee called officers from the National Gallery of Australia (NGA). In a brief opening statement, Director Dr Nick Mitzevich highlighted how additional funding of $119 million would assist the NGA to recover from the impact of COVID-19 lockdowns and building failures. He also drew the committee’s attention to the NGA’s seven touring exhibitions, its 40-year survey of Australian artist Cressida Campbell, and the Sharing the National Collection initiative to make the NGA’s art available to regional and remote communities.
2.47The committee also discussed the following matters:
Regional touring of national collection;
Provenance of Indigenous art included in the NMA collection; and
Funding for critical capital works.
National Film and Sound Archive of Australia
2.48The committee called officers from the National Film and Sound Archive of Australia (NFSA). In his opening statement, Chief Executive Officer Mr Patrick McIntyre briefly outlined how the NFSA will use the additional funding it had received in the Budget to digitise at risk materials, expand its collection into new forms of media, and undertake critical capital works.
2.49The committee also discussed the following matters:
Infrastructure renewal at NFSA facilities;
Acquisition of video games software and hardware; and
Different forms of digital media collected by the NFSA, including social media posts and television advertisements.
Cross portfolio Murray-Darling Basin matters
Inspector General of Water Compliance
2.50On 26 May 2023 the committee commenced its examination of Cross portfolio Murray-Darling Basin matters with the Inspector General of Water Compliance (IGWC). Inspector General the Hon Troy Grant began his opening statement by highlighting his role in ensuring that transparency and accountability is upheld in the implementation of the Murray-Darling Basin plan. Expanding on this theme, he outlined an IGWC review into how the $13 billion allocated for Murray-Darling Basin plan implementation had been used. Mr Grant initiated the review after reviewing a related IGWC response to a question on notice from the 2022-23 Supplementary Budget Estimates round which provided little detail. Mr Grant stated that the findings of the review would be provided as a submission to the Productivity Commission’s current inquiry into Murray-Darling Basin plan implementation, and also highlighted the Australian National Audit Office’s parallel role in ensuring transparency and accountability in relation to the plan.
2.51The committee also discussed the following matters:
Progress towards protocols and standards for interstate consistency of compliance activities;
Water theft and illegal water trading investigations;
Stakeholder engagement in the Murray-Darlin Basin;
Adequacy of IGWC staffing levels;
Engagement with Federal and State government bodies; and
Contracts held with PwC Australia.
Outcome 4: Improve the health of rivers and wetlands and enhance the sustainable, efficient and productive use of Australia’s water resources.
2.52The committee called officers in relation to Outcome 4.1 Protect, restore and sustainably manage Australia’s water resources. In relation to the National Water Grid Authority, the committee discussed the following matters:
Funding for the Southern Forests Irrigation Project in Western Australia;
Development of a water data hub;
Consultation on and funding for First Nations water holding arrangements;
Issuance of floodplain harvesting licences in NSW;
Establishment of the Goyder water research hub in Goolwa, South Australia;
Funding for works at Paradise Dam in Queensland, and Waragamba and Dungowan Dams in NSW;
Implementation of waterbird habitat restoration and water infrastructure projects in the Coorong by the South Australian Government;
Water buy-back program timeline; and
Process and timeframes for the strategic water purchasing tender program.
Australian Competition and Consumer Commission, Water Regulation and Compliance Division
2.53The committee called officers from the Water Regulation and Compliance Division of the Australian Competition and Consumer Commission and discussed the following matters:
Reform of water market rules;
Engagement with irrigation infrastructure operators; and
Development of a code of conduct for intermediaries.
Commonwealth Environmental Water Office and Commonwealth Environmental Water Holder
2.54The committee called officers from the Commonwealth Environmental Water Office, and the Commonwealth Environmental Water Holder, and discussed the following matters:
Management of environmental water in the Werai State Forest in NSW;
Listing and monitoring of Ramsar wetlands;
Policies relating to blackwater events; and
Impact of river velocity on environmental outcomes.
Murray-Darling Basin Authority
2.55The committee called officers from the Murray-Darling Basin Authority and discussed the following matters:
Reviews into the Murray-Darling Basin plan;
Water diversions from the Murray-Darling Basin to proposed hydrogen power projects;
Accuracy of the Sentinel satellite flood and forestation modelling;
Withdrawal of seven water resource plans by the NSW Government;
Barmah Choke alluvium feasibility study;
PwC Australia consulting contracts;
Levels of water recovery against legislated targets;
Modelling to account for increased urban water usage; and
Funding for the Barkandji Rangers in Menindee, NSW.
Senator Karen Grogan
Chair