2.1
This chapter provides an overview of some of the key matters raised during the committee's hearings on the additional estimates 2021–22. The discussion follows the outcome and agency structure.
Industry, Science, Energy and Resources portfolio
Department of Industry, Science, Energy and Resources
2.2
The committee commenced its examination of the Industry, Science, Energy and Resources portfolio on 14 February 2022 with general questions of the Department of Industry, Science, Energy and Resources (DISER) and discussed the following matters:
The Positive Energy Program advertising campaign (pp. 4–6);
Applications, grants and contracts under the Underwriting New Generation Investment (UNGI) and Carbon Capture Use and Storage (CCUS) Hubs and Technologies programs (pp. 7–8); and
The 2021 United Nations Climate Change Conference (COP26) (pp. 9–10).
Outcome 2: Reduce Australia’s greenhouse gas emissions, contribute to effective global action on climate change, and support technological innovation in clean and renewable energy, through developing and implementing a national response to climate change
2.3
The committee called officers in relation to Program 2.1: Reducing Australia's greenhouse gas emissions and discussed the following matters:
Funding for hydrogen hubs as part of the National Hydrogen Strategy (pp. 10–11);
Projected emissions impacts of 114 major projects listed in the Resources and Energy Major Projects report (pp. 11–13);
Impact on energy supply of early closure of coal–fired power stations (pp. 13–14, 16–18);
Value of contracts for modelling of the long–term emissions reduction strategy (pp. 14–15, 18–20); and
Australian resources and energy companies attending the COP26 conference (pp. 20–22).
2.4
In relation to Program 2.2: Developing clean energy technology, the committee discussed matters including:
Public subsidy or underwriting of projects under the National Gas Infrastructure Plan (pp. 22–24); and
Compatibility of opening new gas basins with net zero emissions targets (pp. 23–24).
Outcome 3: Support the affordable, reliable, secure and competitive operation of energy markets for the long term benefit of the Australian community through improving Australia’s energy supply, efficiency, quality, performance and productivity
2.5
In relation to Program 3.1: Supporting reliable, secure and affordable energy, the committee focused on the following matters:
Support for new energy generation projects under the UNGI program (pp. 24–30);
The role of hydrogen in new energy technologies (p. 30);
Federal Government support for the Marinus Link and Battery of the Nation projects (pp. 30–34); and
Snowy 2.0 – Commonwealth expenditure and expected date for linking the project to the national grid (pp. 36–38).
Snowy Hydro Limited
2.6
The committee called officers from Snowy Hydro Limited and discussed the following matters:
Use of hydrogen in the Hunter Power Project (pp. 38–41);
Kurri Kurri energy plant use of diesel (p. 41);
Use of hydrogen in Snowy Hydro systems (pp. 42–43);
Sources of steel for Snowy 2.0 construction (pp. 43–46); and
Required Annual Release of water from storages (pp. 46–47).
Australian Renewable Energy Agency
2.7
The committee called officers from the Australian Renewable Energy Agency and discussed the following issues:
Lawfulness of ARENA funding for carbon capture and storage and gas–derived hydrogen projects (pp. 47–48); and
Use of pumped hydro for energy storage (pp. 48–49).
Clean Energy Regulator
2.8
The committee called officers from the Clean Energy Regulator and discussed the following matters:
Data–gathering methods concerning methane leakage from coal mines and gas fields (pp. 49–51); and
Additionality tests for funding of carbon capture and storage projects (pp. 51–52).
Agriculture, Water and the Environment portfolio
Department of Agriculture, Water and the Environment
2.9
The committee commenced its examination of the Agriculture, Water and the Environment portfolio on 14 February 2022 with general questions of the Department of Agriculture, Water and the Environment (DAWE). In his opening statement, the Secretary, Mr Andrew Metcalfe, marked two years since the restructuring of the department and commended the efforts of departmental staff in assisting communities coping with bushfires, severe floods and the COVID–19 pandemic. Moreover, he noted that:
[T]here have been other achievements across the department over the last four months since we last appeared before you, including the successful first voyage of Australia's new icebreaker, the RSV Nuyina, a huge advance for Australia's scientific and resupply capability in the Antarctic; a range of new, innovative recycling initiatives; and significant funding announcements towards the Great Barrier Reef and a species preservation package for koalas.
2.10
Mr Metcalfe also outlined the department's commitment to working with Indigenous Australians towards Closing the Gap:
It's timely, given the anniversary yesterday of the national apology, that we as a department have built on our reconciliation action plan and have now developed an Indigenous platform for shared benefits realisation that's designed to establish the foundations and accountability to deliver on our shared purpose and generate value and sustained benefits. It's vital that we embrace and embed Indigenous knowledge, perspectives and unrealised potential in everything we do.
The platform will also contribute to whole–of–government priorities that will contribute to the four priority reforms of Closing the Gap through working in partnership, developing improved data and transforming the way we work with Indigenous Australians. It will help to advance the National Roadmap for Indigenous Skills, Jobs and Wealth Creation, including by developing policies with traditional owners and Indigenous Australians that unlock the potential of land, water and sea rights and interests throughout agricultural production and natural resource management activities. This focus is critical to enhancing the potential of northern Australia, where Indigenous rights and interests cover almost three–quarters of its land mass.
The Indigenous platform and our future department blueprint initiatives will enable us to become even more capable as an organisation to deliver on our role as the Commonwealth's integrated natural living resources management and heritage department and portfolio, to support the government and, through it, the communities, industries and environment that we serve.
2.11
The following matters were discussed during general questions:
Antarctic and Science Precinct project at Macquarie Point in Hobart
(pp. 55–59);
Modelling and drafting of proposed reforms to the Environment Protection and Biodiversity Conservation Act (pp. 59–62);
Viability of the Remade in Australia logo for use on goods containing recycled materials (pp. 63–64);
Commonwealth funding for the Great Barrier Reef Foundation (pp. 64–65); and
Reef Restoration and Adaptation Plan (p. 66).
Outcome 1: 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, and coordination of climate change adaptation strategy and climate change science activities.
2.12
In relation to Program 1.1: Sustainable management of natural resources and the environment (funding), the committee discussed matters including:
Crown of thorns starfish control (pp. 68–69);
Koalas: listing as endangered and habitat destruction (pp. 69–71);
State Party Report to the UNESCO World Heritage Committee (pp. 72–73);
Cultural implications of the decline of the bogong moth for First Nations peoples (pp. 73–76);
Expenditures under the Environment Restoration Fund (p. 76);
Environmental impacts of retaining feral deer populations in the Tasmanian Wilderness World Heritage area (p. 77);
Impact of a 1.5 degree warming scenario on coral reefs (pp. 77–79); and
Cancellation or sunsetting of threatened species recovery plans (pp. 82–85).
2.13
In relation to Program 1.2: Environmental information and research, the committee discussed:
Progress of the State of the Environment report (pp. 99–100);
Possibility of recovering extinct species via cloning (p. 100); and
Tasmanian devil recovery plan (p. 100)
2.14
In relation to Program 1.4: Conservation of Australia's heritage and environment (regulation), the committee discussed matters including:
Government consultation with the First Nations Heritage protection Alliance (pp. 85–86);
Murujuga Rock Art Strategy and World Heritage listing (pp. 86–87);
Exmouth Gulf World Heritage listing and cultural tourism funding (p. 87);
Damage to places on the National Heritage List and Commonwealth Heritage List (pp. 88–89);
Leadbeater's possum recovery plan and regional forest agreements
(pp. 90–92); and
Applications for protection under the Aboriginal and Torres Strait Islander Heritage Act (pp. 92–93).
2.15
In relation to Program 1.5: Environmental regulation, the committee discussed:
Warragamba Dam raising project EPBC assessment (pp. 101–103);
Approval processes for projects that impact koala habitat (pp. 103–105);
Sandhill dunnart conservation plan for Mulga Rock uranium mine site (p. 105); and
Masked owl conservation plan for MMG tailings dam proposal in Tarkine/takayna (pp. 105–107).
2.16
In relation to Program 1.6: Management of hazardous wastes, substances and pollutants, the committee discussed matters including:
Plastic packaging recycling (pp. 107–111); and
PFAS listing in the National Pollutant Inventory (p. 111).
Outcome 2.1 Advance Australia's strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region
2.17
In relation to Program 2.1: Antarctica: science, policy and presence, the committee discussed the following matters:
Commissioning and seaworthiness of RSV Nuyina (pp. 114–116);
Decision to not build an all–weather runway at Davis research base (p. 117); and
Geopolitical and national security considerations (p. 117).
Bureau of Meteorology
2.18
The committee called officials from the Bureau of Meteorology and discussed:
Outsourcing and use of labour hire services (pp. 93–95);
Funding for the Australian Climate Service (pp. 95–96); and
Long–term temperature forecasts and the State of the Climate report
(pp. 96–99).
Director of National Parks
2.19
The committee called officials from the Director of National Parks and discussed the following matters:
Kakadu National Park closures (pp. 111–112);
Facilities investment in Kakadu National Park (pp. 112–113); and
Management plans and consultation on marine parks (pp. 113–114).
Great Barrier Reef Marine Park Authority
2.20
The committee called officials from the Great Barrier Reef Marine Park Authority and discussed the following matters:
UNESCO World Heritage assessment (pp. 118–119);
Modelling impacts of warming scenarios (pp. 119–122); and
Management of the crown–of–thorns starfish (pp. 122–123).
Infrastructure, Transport, Regional Development and Communications portfolio
2.21
The committee examined the communications and the arts outcomes and agencies of the Infrastructure, Transport, Regional Development and Communications portfolio on 15 February 2022.
Australia Post
2.22
The committee opened the hearings by calling officials from Australia Post. The Chair thanked Mr Lucio Di Bartolomeo, Chair of Australia Post, for attending the hearing via videoconference. In his opening statement, Mr Paul Graham, Group Chief Executive Officer and Managing Director of Australia Post, outlined Australia Post's achievements, including over 51 million parcels delivered in both November and December 2021 and record usage of the Australia Post website and mobile app, while continuing to manage the effects of the COVID–19 pandemic. Mr Graham also described Australia Post's continuing investment in facilities and systems:
Our strong network investment continues in earnest, having committed an additional $400 million by mid 2022 in new parcel facilities, fleet, and technology to help service the growing demand for parcel services. This brings our total committed investment over a three–year period to June 2022 to more than $1 billion. This includes the new major parcel processing facilities in Brisbane, Sydney, Melbourne, and Adelaide–as well as brand new facilities underway including in Perth, Melbourne, and Western Sydney. The investment also includes $20 million in upgrading our systems to cloud based solutions as we improve parcel scanning and tracking across our network. It is all part of a broader push to become a modern postal service, as we upgrade technology and invest in the digital experience for our customers to benefit from.
2.23
Other matters discussed by the committee included:
Safety issues with electric delivery vehicles (pp. 4–6);
Executive remuneration, bonuses and retention incentives
(pp. 6, 8–12 and 14–16);
Payments to licenced post office operators (pp. 6–7);
Plans for increased levels of postal voting at upcoming federal election (p. 10);
Increased use of e–commerce and demand for parcel delivery (p. 13);
Banking services in licensed post offices (pp. 13–14); and
Gender balance in executive and senior management levels (p. 15–16).
Department of Infrastructure, Transport, Regional Development and Communications
2.24
The committee proceeded to general questions of the Department of Infrastructure, Regional Development and Communications and discussed the following matters:
Triennium funding for the Australian Broadcasting Corporation
(pp. 17–18);
Impact of the COVID–19 pandemic on the arts, entertainment and creative industries (pp. 19–20);
Restart Investment to Sustain and Expand (RISE) Fund, Arts Sustainability Fund and Regional Arts Fun Recovery Boost (pp. 19–21);
Ministerial statements of expectations for ABC and SBS (pp. 21–22);
Expectations for ABC and SBS concerning Australian content and rural and regional reporting (pp. 22–23); and
Online Safety Act advertising campaign (p. 23).
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:
auDA introduction of direct registration of .au domain names (pp. 50–53);
Neutral host model for remote mobile telecommunications coverage
(pp. 53 and 64–66);
Spectrum capacity and customer experience challenges associated with the NBN fixed wireless network (p. 54);
NBN Co plans to upgrade the fixed wireless network from 4G to 5G (p. 55);
Designation of Tier 1 and Tier 2 entities in relation to Australian content on streaming video on demand (SVOD) services (pp. 56–58);
New coverage under the Mobile Black Spot Program and Regional Connectivity Program (pp. 58–59);
Making telecommunications networks more resilient to natural disasters (pp. 59–60);
Future of the universal service obligation to rural and remote customers (pp. 60–61);
Local government areas without regional newspaper coverage (pp. 62–64);
Lack of mobile coverage on Albany Highway (pp. 66–67);
Code of Practice on Disinformation and Misinformation (pp. 67–70);
Government response to green paper on the future of television regulation (pp. 70–71);
Anti–siphoning scheme for televised sporting events (p. 71); and
ACCC review of NBN regulatory framework (pp. 71–72).
Outcome 6: Participation in, and access to, Australia's arts and culture through developing and supporting cultural expression
2.26
In relation to Program 6.1: Arts and Cultural Development, the committee discussed:
Extension of Supporting Cinemas' Retention Endurance and Enhancement of Neighbourhoods (SCREEN) funding and Temporary Interruption Fund for independent cinemas (pp. 38, 40–42); and
Australian content on SVOD services (pp. 42–45).
Office of the eSafety Commissioner
2.27
The committee called officers from the Office of the eSafety Commissioner. In her opening statement, Ms Julie Inman Grant, Commissioner, Office of the eSafety Commissioner, discussed preparations for implementing the Online Safety Act 2021, which commenced the previous month.
As part of our preparations for the new Act, we have significantly scaled up our investigative capability. In recent months, we have also re–engineered the eSafety website, which is the principal gateway for reporting, to help people through the process of lodging a report or finding more advice, guidance or support... Under our new and expanded schemes, we are assessing complaints and taking action through a range of pathways to remove harmful content and reduce trauma, emotional distress and revictimisation. These schemes are also providing intelligence and data from the digital frontlines to help inform and shape our regulatory response and guidance for citizens, now and into the future. We have set out our regulatory posture and regulatory priorities for the
2021–22 financial year and released a Compliance and Enforcement Policy explaining the powers available to eSafety and to encourage and enforce compliance with the Online Safety Act. Additionally, we have released a suite of regulatory guidance documents which explain how eSafety implements each of the regulatory schemes included in the Act. These include regulatory guidance for the Adult Cyber Abuse Scheme, the Cyberbullying Scheme, the Online Content Scheme, the Image–Based Abuse Scheme and for our Abhorrent Violent Conduct Powers.
2.28
Other matters discussed by the committee included:
Memoranda of Understanding and liaison with state police forces to address juvenile crime and online safety issues associated with 'internet challenges' (pp. 24–29 and 32–35);
Government advertising and media activity concerning the Online Safety Act (pp. 29–30); and
Research into online harms (pp. 31–32).
Australia Council
2.29
The committee called officers from the Australia Council and discussed RISE and Arts Sustainability funding for the arts and creative sector (pp. 45–46).
Screen Australia
2.30
The committee called officers from Screen Australia and discussed the following issues:
Lobbying concerning opposition amendments to the Treasury Laws Amendment (No. 5) Bill 2021 (pp. 46–47);
Changes in commercial free–to–air spending on Australian drama
(pp. 47–48);
Funding for Australian documentaries (p. 49); and
Second round applications for SCREEN funding (pp. 49–50).
Special Broadcasting Service Corporation
2.31
The committee called officers from the Special Broadcasting Service Corporation (SBS) and discussed the following issues:
Triennium funding arrangements for SBS (pp. 72–73);
Funding for in–language and audio description services (p. 73);
Ministerial statements of expectations (pp. 73–74);
Negotiations with Facebook in relation to the News Media Bargaining Code (p. 75); and
Translations of the Uluru statement (p. 76).
Australian Communications and Media Authority
2.32
The committee called officers from the Australian Communications and Media Authority (ACMA) and discussed the following matters:
ACMA's role in relation to misinformation and disinformation (pp. 76–77);
Legislative and regulatory frameworks in international jurisdictions in relation to misinformation (p. 77);
Review of anti–terrorism standards (pp. 78–79);
Self–help retransmission services (pp. 79–81);
Carrier definitions and licence fees (p. 81);
Monitoring of low earth orbit satellites (pp. 82–83); and
Australian content quota for commercial television (pp. 83–84).
Australian Broadcasting Corporation
2.33
The committee called officers from the Australian Broadcasting Corporation (ABC). In his opening statement, Mr David Anderson, Managing Director of the Australian Broadcasting Corporation, noted the ABC's role as Australia's most trusted broadcaster:
The ABC entered 2022 with the value of its services widely recognised and appreciated across the Australian community. Against the backdrop of a challenging year, the ABC achieved its highest reach in a decade in 2021... ABC NEWS finished 2021 as the number one digital news brand in Australia with more than 63% of Australians connected with ABC NEWS platforms. The ABC is the leading Australian radio network with the highest reach and share of listening. ABC iview was the number one Broadcast Video on Demand Service. Importantly, 78% of Australians trusted the information provided by the ABC, which is significantly higher than all other media institutions and information providers.
2.34
Mr Anderson also affirmed the ABC's commitment to providing services for regional Australia:
[T]he ABC's commitment to regional and rural Australia has never been stronger. A range of industry measures and surveys show that the vast majority of people living in regional and rural Australia overwhelmingly support and trust the ABC, and we are delivering on those relationships. This includes recent research commissioned by the Page Research Centre which found that 76% of people living in regional Australia trust the ABC to deliver balanced, accurate and reliable news. 73% of those surveyed believe the ABC had a 'good and realistic interest in and understanding of, all aspects of regional Australia.' The completed agreements with Google and Facebook will enable us to take our commitment to regional and rural Australia further and employ even more journalists to add to the 550 content makers that we have outside the capital cities. By March there will be an additional 50 ABC journalists living, working and reporting in regional and rural Australia; vital growth for the delivery of services at a time when those communities have witnessed the reduction of media services by some commercial outlets.
2.35
Other matters discussed by the committee included:
Resumption of indexation of the ABC's base funding (pp. 84–85);
Code of conduct and personal use of social media guidelines (pp. 86–88);
Use of the ABC logo by ABC Friends (pp. 88–89);
Subscription model for ABC iview (pp. 89–90);
Ministerial statement of expectations in relation to Australian content (p. 91);
Time spent on reporting and transparency (pp. 91–92);
Reporting on transgender issues (pp. 93–94);
Exemptions to Victorian lockdown directions for journalists (pp. 94, 98);
Arrangements to rectify underpayment of staff (pp. 94–95);
Differences between current Pacific presence and the former Australia Network (pp. 96–97, 102);
Independent review into Exposed: The Ghost Train Fire program (p. 98);
Staff use of ABC vehicles (pp. 98–99);
Legal advice, costs and policies in relation to responsibility for private social media posts by ABC journalists (pp. 99–101); and
Number of ABC staff in legal roles (p. 100).
NBN Co
2.36
The committee called officers of NBN Co. In his opening statement, Mr Stephen Rue, Chief Executive Officer, NBN Co, provided an update on the NBN rollout and increased customer demand for higher download speeds:
Right now, more than 8.4 million homes and businesses are connected to the nbn network. That’s more than 17 million Australians relying on our network every day for education, health, work, commerce and entertainment. In addition to this enormous growth in activations in recent years, we are seeing big changes in how people use the network and what they expect from it. Just five years ago only 17 per cent of our customers chose plans with download speeds of 50 Mbps or above. Today, this number has grown to 76 per cent, and around 15 per cent of premises are on plans that offer download speeds of 100 Mbps or higher. We remain on track to make 75 per cent of the fixed line network close to gigabit capable by the end of next year through our network investment program. When you look at the growing appetite for speed and data, you can see why this investment is essential. The United Nations digital economy report estimates that global internet traffic in 2022 will exceed all traffic from the beginning of the internet up to 2016. On the nbn network, in 2016 the average monthly download was 112 Gigabytes, and today that stands at around 400 Gigabytes.
2.37
Other matters discussed by the committee included:
Fixed wireless fair use policy (p. 103);
Rebates to retail service providers to re–sign former Sky Muster Plus customers (pp. 103–104);
Sky Muster outage on 21 December 2021 (pp. 104–105);
Fibre to the Node (FTTN) network coexistence period (pp. 105–106);
FTTN upgrade trial (pp. 106–107);
Special Access Undertaking (pp. 109–110);
Wholesale pricing for various speed tiers (pp. 110–111);
Regional Connectivity Program (pp. 111–112);
NBN contractor remuneration (p. 113).
Senator Andrew Bragg
Chair