2.1
This chapter provides an overview of some of the matters raised during the committee’s hearings on the budget estimates 2021-22. The discussion follows the outcome and agency structure.
Agriculture, Water and the Environment portfolio
Department of Agriculture, Water and the Environment
2.2
The committee commenced its examination of the Agriculture, Water and the Environment portfolio on 24 May 2021 with general questions to the Department of Agriculture, Water and the Environment (DAWE). In his opening statement, the Secretary, Mr Andrew Metcalfe, outlined the Minister for the Environment’s announcement of the new Threatened Species Strategy and highlighted a number of policy initiatives supported by the Budget for the environment portfolio:
We have a significant agenda going forward, including strengthening our leadership in ocean conservation through a $100 million package to restore blue carbon ecosystems, expand and further strengthen our marine park estate and establish new Indigenous protected areas over sea country; tackling waste and helping to transform the recycling industry in Australia to reduce waste impacts on our environment, to create jobs, and to grow the economy; being much better informed about the impacts of our changing climate through the establishment of the Australian Climate Service; and enhancing our natural assets on land and in the sea around us by tackling the threats posed by invasive pests, animals and weeds and through a range of practical on-ground recovery actions.
2.3
The following matters were discussed throughout general questions:
Breakdown of the $486.29 million funding allocation for the environment in the 2021-22 Budget (pp. 6 and 12–13);
Planned pilot of a Commonwealth-accredited bioregional plan to support and accelerate development in a priority regional area (pp. 7–8);
Breakdown of the $29.1 million allocated to protect threatened species from invasive pests and weeds (pp. 9–11 and 17–21);
Breakdown of funding allocated to maintain the timeliness of environmental assessments and approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) (pp. 13–15);
Figures surrounding total expenditure of the department for protecting threatened species since 2014 (pp. 15–18);
Dedicated funding in the Budget for koalas, Leadbeater’s Possums, and Swift Parrots (p. 18);
The Minister for the Environment’s participation in roundtables with stakeholders since May 2019 (pp. 18–19);
DAWE’s preparation for the passage of legislation enabling bilateral agreements with states and territories for state-administered environmental assessments and approvals under the EPBC Act (pp. 21–22 and 25–26); and
Internal processes and staffing arrangements for the processing of Freedom of Information requests (pp. 23–25).
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
2.4
In relation to Program 1.1: Sustainable management of natural resources (funding), the committee discussed matters including:
Allocation of the $100 million oceans leadership package (pp. 26–30 and
48–50);
The accreditation and auditing processes for organisations on the Register of Environmental Organisations (p. 33);
Advice received from the Threatened Species Scientific Committee to apply conservation advice rather than implement recovery plans for 150 listed threatened species (pp. 40–42);
Expenditure to date from the $216 million funding commitment for Kakadu National Park (pp. 42–43);
Breakdown of expenditure for the bushfire recovery expert panel
(pp. 43–44);
Allocation and expenditure of the $150 million package to support the bushfire recovery for species and landscapes (pp. 44–45);
The Greater Glider and Leadbeater’s Possum conservation status and recovery plans (pp. 46–48);
Details surrounding the new Threatened Species Strategy (pp. 51–54 and 55–56);
Allocation and expenditure of the Landcare and Regional Partnerships program (pp. 54–55);
Federal funding for the Save the Tasmanian Devil Program and DAWE’s position on the status of the Tasmanian Devil, including threats like Devil Facial Tumour Disease (p. 55);
DAWE’s work towards delisting the humpback whale as a threatened species under the EPBC Act (pp. 62–63 and 66–67); and
Update on the number of overdue recovery programs for threatened species and the department’s efforts to resolve them (pp. 65–66).
2.5
In relation to Program 1.2: Environmental information and research, the committee focused primarily on three matters:
Communications between DAWE and researchers from the National Environmental Science Program (NESP) regarding the publication of the Spending to Save research paper (pp. 30–36 and 63–65);
Governance and staffing arrangements for the Australian Climate Service (pp. 56–59); and
Application and selection process for the resilient landscapes hub under the NESP, including details on two competitive bids—the University of Western Australia and the University of Melbourne (pp. 59–62).
2.6
The committee discussed the following matters in relation to Program 1.4: Conservation of Australia’s heritage and environment (regulation):
The full Federal Court’s findings in the case of VicForests v Friends of Leadbeater’s Possum Inc [2021] FCAFC 66 and its impact on DAWE’s administration of the Regional Forest Agreement framework (pp. 66–68 and 87–88);
Australia’s participation in the upcoming 44th World Heritage Committee meeting and the government’s response to the issue of whether the Great Barrier Reef will be listed as in-danger (pp. 81–83);
DAWE’s response to the recommendations of the Auditor-General’s report on Implementation of the Great Barrier Reef Foundation Partnership (p. 84);
New key threatening processes listed and threat abatement plans completed under the EPBC Act since 2013 (pp. 84–86);
Role of the government in the banning of the domestic trade of elephant and rhino ivory (pp. 86–87);
DAWE’s oversight of the expansion of aquaculture operations in Tasmania (pp. 88–89);
Update on DAWE’s review of the Aboriginal and Torres Strait Islander Heritage Protection Act 1984, and recommendations regarding Indigenous heritage made by Professor Samuel in the Independent Review of the EPBC Act (the Samuel Review) (pp. 91–95); and
Update on the report commissioned by the Minister for the Environment into the possibility of heritage listing the Djaki Kundu site (p. 95).
2.7
In relation to Program 1.5: Environmental regulation, the following matters were discussed by the committee:
The number of approved projects that have required offsets as part of conditional approval, ongoing requirements in terms of management and maintenance of offsets, and the consolidation of offsets into a central offset management system (pp. 74–75);
DAWE’s response to the referral of Commonwealth purchases of environmental offsets for the Western Sydney Airport to the NSW Independent Commission Against Corruption (pp. 75–77);
The government’s decision-making in relation to the Orchard Hills biodiversity offset site (pp. 77–80);
DAWE’s processes for monitoring and investigating compliance in relation to the Adani project (pp. 98–99);
The proposed development at Toondah Harbour in the Moreton Bay Ramsar-listed wetland (p. 100);
Communication between the Minister and the Yuwaal Thiithaar Warra Aboriginal Corporation regarding the Galalar silica mine (pp. 100–101); and
Findings of DAWE’s investigation into the Cairns Regional Council’s flying fox dispersal program (p. 101).
2.8
In relation to Program 1.6: Management of hazardous wastes, substances and pollutants, the committee canvassed the following matters:
DAWE’s preparation for the incoming ban on unprocessed recyclable waste exports, including the ongoing expansion of Australia’s recycling capacity through the Recycling Modernisation Fund (pp. 96–98);
Implementation of the recommendations of the ‘2020 Review of the Product Stewardship Act 2011’ (pp. 101–102);
Plans to expand the Product Stewardship Investment fund (p. 102); and
Timeline surrounding the government’s intended accreditation of the Australian Packaging Covenant as a product stewardship scheme under the Recycling and Waste Reduction Act 2020 (pp. 103–105).
Outcome 2: Advance Australia’s strategic, scientific, environmental and economic interests in the Antarctic region by protecting, administering and researching the region
2.9
In relation to Program 2.1: Antarctica: Science, policy and presence, matters discussed by the committee included:
Update on the status of the new icebreaker vessel RSV Nuyina, as well as the Nuyina and Tasman Bridge compatibility assessment being undertaken by TasPorts (pp. 127–128);
Findings from the Australia Antarctic Division’s inspection of foreign Antarctic stations (p. 127);
The Australia Antarctic Division’s cyber security strategy for Antarctic stations (p. 128); and
Timeline for the release of the review of the Australian Antarctic Strategy
(p. 128).
Threatened Species Scientific Committee
2.10
The committee called Professor Helene Marsh, Chair of the Threatened Species Scientific Committee (TSSC), and discussed the following topics:
Update on the preparation of recovery plans for the Greater Glider and Leadbeater’s Possum (pp. 36–37);
TSSC’s involvement in the development of either the environmental standards recommended in the Samuel Review or the government’s proposed national environmental standards (pp. 37–38); and
TSSC’s advice to the department regarding priorities in relation to conservation advices and recovery plans for threatened species (pp. 38–39).
Director of National Parks
2.11
The committee called officers from the Director of National Parks and examined the following matters:
Progress towards the establishment of new marine parks in Australia’s Indian Ocean Territories (pp. 106–107);
Funding for removal of ghost nets and other marine debris and consultation with Indigenous stakeholders (pp. 106–107);
Breakdown of expenditure from the $216 million funding commitment for Kakadu National Park (pp. 107–109); and
Ongoing engagement with the Northern Territory Aboriginal Areas Protection Authority regarding the closure of the Gunlom Fall’s site in Kakadu National Park (pp. 109–111).
Great Barrier Reef Marine Park Authority
2.12
The committee called officers from the Great Barrier Reef Marine Park Authority (GBRMPA) and the following matters were covered:
Timeline for the release of the Reef 2050 Long-Term Sustainability Plan and how the economic benefit of the reef is measured (pp. 111 and 115);
Staffing profile of the Reef HQ Aquarium (p. 112);
The nature of GBRMPA’s partnership with the Reef Trust Partnership
(pp. 112–115);
Details of GBRMPA’s crown-of-thorns starfish control program (p. 114);
Impact of COVID-19 on the Great Barrier Reef tourism industry (p. 115);
Details of the joint funding arrangements between the Commonwealth and the Queensland Government for the construction of the Reef Resilience patrol vessel (pp. 115–116); and
GBRMPA’s position on the impact of climate change on the Great Barrier Reef (pp. 116–117).
Bureau of Meteorology
2.13
The committee called officers from the Bureau of Meteorology (BOM) who answered questions on the following topics:
BOM’s climate modelling capacity and its recent upgrades to its supercomputer resources (pp. 118–119);
BOM’s relationship with the newly established National Recovery and Resilience Agency (pp. 119 and 122–123);
BOM’s forecasting of extreme weather events for the remainder of the year, as well as its work with state agencies to prepare for extreme weather events
(pp. 119–120);
The data homogenisation process used in the reporting of Australia’s temperature records (pp. 120–121);
BOM’s aviation meteorology services and the continuation of the Airservices waiver fee (p. 122);
Governance and staffing arrangements of the Australian Climate Service (pp. 122–123);
Staff redeployment and redundancies as a consequence of the automation of regional weather stations (pp. 123–125);
The source of temperature data reported in 2016 and 2018 State of the Climate reports (pp. 125–126); and
Update on plans for the construction of a weather radar in Tennant Creek in the Northern Territory (p. 126).
Australian National Audit Office
2.14
The committee called officers from the Australian National Audit Office and discussed the following topics:
ANAO’s report on the Purchase of the ‘Leppington Triangle’ Land for the Future Development of Western Sydney Airport and the potential for future audits into offsets for the Western Sydney Airport (pp. 68–70);
Communications between ANAO and DAWE following the Auditor-General’s report on Referrals, Assessments and Approvals of Controlled Actions under the Environment Protection and Biodiversity Conservation Act 1999, and the conclusions of that report (pp. 69–71);
Powers under the Auditor-General Act 1997 (p. 70–71); and
Scope of the Auditor-General’s report on Implementation of the Great Barrier Reef Foundation Partnership and its conclusions (pp. 71–73).
Industry, Science, Energy and Resources Portfolio
Department of Industry, Science, Energy and Resources
2.15
On 23 May 2021, the committee began examining the Industry, Science, Energy and Resources portfolio by asking general questions of DISER. The following matters were discussed:
Timeline regarding the government’s decision to allocate $600 million in funding for the development of a gas-fired power plant at Kurri Kurri
(pp. 4–7 and 29–30);
Snowy Hydro Limited’s (Snowy Hydro) projected control over the peaking electricity market following the completion of the Snowy 2.0 and Kurri Kurri power plant projects, and the role of the department in managing any potential conflicts of interest (pp. 7–8, 18–19, 22–23 and 74–75);
Legal advice sought by DISER regarding the expansion of the remit of the Australian Renewable Energy Agency (ARENA) through delegated legislation (pp. 8–9);
The Energy Security Board’s proposal to develop a capacity market for the National Energy Market (NEM) and the role of the Energy National Cabinet Reform Committee (pp. 9–10);
Wholesale electricity price spikes in the New South Wales market throughout May 2021 and the impact of these high price events on the smelting industry, in particular the Tomago aluminium smelter (pp. 10–11, 19 and 21);
The Liddell Taskforce’s modelling of the projected reliability gap between energy supply and demand in New South Wales following the upcoming closure of the Liddell Power Station, and the role of the Australian Energy Market Operator (pp. 11–14 and 17–18);
The role of different energy sources in the NEM (pp. 14–15);
Commentary surrounding the Kurri Kurri power plant development from policy bodies, industry groups and unions (pp. 15–17 and 20);
The timeline of the closure of the Liddell Power Station (p. 20);
The capacity of Snowy Hydro’s existing gas-fired power plants (p. 21);
How wind energy fits within the government’s energy mix and DISER’s advice to the Minister for Resources, Water and Northern Australia and the Minister for Minister for Energy and Emissions Reduction regarding the decision not to fund the Kaban Green Power Hub in North Queensland
(pp. 24–29); and
The possible impacts of the expansion of ARENA’s remit on the local economy (p. 31).
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
2.16
In relation to Program 2.1: Reducing Australia’s greenhouse gas emissions and Program 2.2: Developing clean energy technology, the following matters were discussed by the committee:
Details of the proposed regulations to expand ARENA’s remit to allow investment in blue hydrogen, carbon capture and storage technology
(pp. 32–34, 39–40 and 45);
Policy recommendations of the International Energy Agency’s Net Zero by 2050 report (pp. 34–39 and 44–45);
Updates to the medium-term climate targets of countries in the G7 and Australia’s Nationally Determined Contribution under the Paris Agreement (pp. 40–43 and 47);
Allocation of $1.2 billion funding over ten years for a Technology
Co-Investment Facility (pp. 43–44 and 46);
Number of jobs created under the Technology Investment Roadmap (p. 45);
DISER’s involvement in Australia’s participation in United States President Biden’s Climate Leadership Summit (pp. 46–47);
Contribution of land-use, land-use change and forestry activities to Australia’s total emissions reductions since 2005 (pp. 48–50);
Timeline surrounding the finalisation and release of the government’s
long-term strategy on emissions reduction (pp. 50–51);
DISER’s consultation with DAWE regarding the protection of the Great Barrier Reef from the impacts of climate change (pp. 51–53); and
The number of countries that have ratified the Kyoto Protocol and achieved their targets by the end of 2020 (p. 54).
Update on the development of the offshore clean energy infrastructure regulatory framework and funding in the Budget for an offshore electricity registrar (pp. 67–68).
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
2.17
In relation to Program 3.1: Supporting reliable, secure and affordable energy, the following matters were examined by the committee:
Update on DISER’s work on the Marinus Link project and engagement with the Tasmanian Government (pp. 55–58);
Update on the Battery of the Nation project (p. 59);
Modelling used to determine projected energy market benefits and economic contributions of the Marinus Link project, including the estimated number of jobs created (pp. 59–60);
Vulnerability of the National Energy Market to blackouts (pp. 61–62);
DISER’s work in relation to the Australian Local Power Agency Bill
(pp. 62–63);
Details on the government’s decision to allocate a $30 million grant to Australian Industrial Power for a proposed gas-fired power station at Port Kembla, New South Wales (pp. 63–65);
Breakdown of the allocation of $24.9 million over three years to support the development of hydrogen-ready gas generation infrastructure (pp. 65–66);
Timeline regarding the finalisation of the fuel security service payment
(pp. 68–70);
Update on the release of the final report of the Liquid Fuel Security Review (pp. 70–71);
Update on the National Energy Security Assessment (pp. 72–73); and
Details on Australia’s crude oil reserves and supply chain arrangements with the United States (pp. 73–74).
Snowy Hydro Limited
2.18
Mr Roger Whitby, Chief Executive Officer of Snowy Hydro Limited (Snowy Hydro), highlighted the necessity of ensuring sufficient supply in the energy market in his opening statement:
Obviously the criticality of supply is high. Not to be too glib, if those outages or blackouts occur over extended periods people literally die: people on life support in homes and hospitals, traffic lights go out. There is absolute chaos. Communications in the long run rely on electricity supplies, and day-to-day businesses, obviously, and homes. To put it in an economic sense, the value of lost load in electricity is extremely high. Numerous studies look at this. It's not to say all loads have this value but critical loads have a value of lost load somewhere between $25,000 and $50,000 a megawatt hour, simply because of those issues.
2.19
The committee then discussed the following matters:
Timeline for the release of Snowy Hydro’s business case for the Kurri Kurri power plant development (pp. 75–76, 80 and 82);
Snowy Hydro’s potential market share of the peaking electricity market after the completion of the Kurri Kurri power plant development (pp. 77–78 and 81);
Capacity and average run-time of Snowy Hydro’s Colongra gas-fired power plant (p. 78);
Projected savings resulting from the construction of Snowy 2.0 and an update on the status of the construction of the project (pp. 78–80 and 93);
Snowy Hydro’s actions throughout the NSW wholesale electricity price spikes in May 2021, the subsequent impact on Tomago aluminium smelter, and Snowy Hydro’s decisions in relation to dispatching electricity from the Colongra plant (pp. 80–81 and 83–85);
Impacts of the construction of Snowy 2.0 on the local community and economy and the expected impact of the Kurri Kurri power plant development on the Hunter Valley region (p. 86);
Snowy Hydro’s communications with developers and the Regrowth Kurri Kurri joint venture, and its accountability and transparency processes in relation to procurement (pp. 88–91);
Impact of drought on the running of Snowy Hydro’s hydro turbines and other power plant assets (p. 92);
Use of domestically-sourced steel in the Snowy 2.0 project and the use of steel standards (pp. 93–94);
Details regarding executive bonuses and remuneration (pp. 94–95); and
Snowy Hydro’s internal policies regarding local content requirements in contracts and its position on the use of local manufacturers (pp. 95–97).
Australian Renewable Energy Agency
2.20
The committee called officers from the Australian Renewable Energy Agency (ARENA) and examined the following matters:
ARENA’s input into the proposed regulations to expand its remit to allow investment in blue hydrogen, carbon capture and storage technology
(pp. 97–98 and 101);
Status of the Memorandum of Understanding between ARENA and the government in relation to ARENA’s delivery of programs to invest in blue hydrogen, carbon capture and storage technology (pp. 98–99);
The Australian Renewable Energy Agency Act 2011, the functions of ARENA and the expectations of independence (pp. 99–101);
ARENA’s understanding of the scope and definition of ‘low-emissions technologies’ (p. 100);
The basis of expanding ARENA’s remit through delegated legislation
(pp. 100–101);
Questions in relation to ARENA’s report on ‘Insights From the First Wave of Large-Scale Solar Projects in Australia’ (pp. 101–102); and
The reliability and affordability of solar and wind-derived energy
(pp. 102–104).
Clean Energy Finance Corporation
2.21
The committee called officers from the Clean Energy Finance Corporation (CEFC) who answered questions in relation to the CEFC’s operating surplus (pp. 104–105), its impairment provision figure at 30 June 2020 and projections for impairment over the next five years (pp. 105–106), and its preparation for the passage of legislation to establish the Grid Reliability Fund (p. 106).
Clean Energy Regulator
2.22
The committee called officers from the Clean Energy Regulator (CER) and examined the following matters:
The definition of ‘clean energy’ in regard to CER’s schemes (p. 107);
The costs on business to comply with CER-administered regulations
(p. 107);
Details regarding the establishment of the Corporate Emissions Reduction Transparency report scheme (p. 108);
The continuation of the Renewable Energy Target subsidy beyond the achievement of the Renewable Energy Target (pp. 108–109); and
The future of projects established under the Emissions Reduction Fund after the initial contract with CER lapses (pp. 109–111).
Climate Change Authority
2.23
The committee called officers from the Climate Change Authority (CCA) and discussed its report ‘Prospering in a Low-Emissions World: An Updated Climate Policy Toolkit for Australia’ and its position on the cost-competiveness of various renewable energy sources (pp. 112–113). The committee also asked questions in relation to CCA’s briefings to government agencies following the release of its report ‘Economic recovery, resilience and prosperity after the coronavirus’ (p. 114), as well as its engagement with agencies in relation to its review of the Emissions Reduction Fund (p. 114).
Australian Energy Infrastructure Commissioner
2.24
The committee called Mr Andrew Dyer, the Australian Energy Infrastructure Commissioner. Mr Dyer tabled a detailed statement which provided an overview of the number and nature of complaints received, outlined the expanded role of the Commissioner, and noted the funding allocated in the Budget to extend the role of the Commissioner for another four years from
1 November 2021:
Following a comprehensive review of the Commissioner’s role in 2018 by the Climate Change Authority (CCA), the government accepted the review’s recommendations. As a result, the government renewed the Commissioner’s role for a further three years, from 1 November 2018 until 31 October 2021. The Commissioner’s terms of reference were also expanded to include large-scale solar and energy storage projects, consistent with the CCA’s recommendations.
On 26 March 2021, the Minister for Energy and Emissions Reduction announced the further expansion of the Commissioner’s role to include new large-scale transmission projects, along with a change of the role’s title – to be now known as the Australian Energy Infrastructure Commissioner.
In the recent May 2021 budget, the government announced funding for the continuation of the role for an additional four years from 1 November 2021.
2.25
The committee discussed matters including the role of the Australian Energy Infrastructure Commissioner (p. 114), the nature of complaints from the public regarding renewable energy, including complaints about infrasound
(pp. 114–115), and questions in relation to the potential environmental risks posed by wind turbines such as through decommissioning and the disposal of waste at their end of life (p. 115).
Infrastructure, Transport, Regional Development and Communications portfolio
2.26
The committee examined the communications and the arts outcomes and agencies of the Infrastructure, Transport, Regional Development and Communications portfolio across three days: 26-27 May and 7 June 2021.
Department of Infrastructure, Transport, Regional Development and Communications
2.27
The committee commenced its examination of the Infrastructure, Transport, Regional Development and Communications portfolio on 26 May 2021 by asking general questions of the Department of Infrastructure, Transport, Regional Development and Communications (DITRDC).
2.28
In his opening statement, Mr Simon Atkinson, Secretary of DITRDC, updated the committee on the department’s work to support the arts and creative sectors in their recovery from the COVID-19 pandemic:
Although the arts and creative sectors have been disproportionately affected by the pandemic, parts of these sectors are reactivating with the government's targeted support. The minister has also announced an additional $300 million for the sector in the last budget. Under the first three batches of the RISE Fund, 242 arts projects have been supported across all Australian states and territories and in regional and remote Australia, with $100 million in funding, reaching an audience of millions in more than 2,000 locations and generating jobs. The Australian screen production industry is also thriving, with the government's location incentive attracting 23 large-budget international productions to film in Australia, which will inject over $1.74 billion into the economy. The government's $50 million Temporary Interruption Fund has also enabled 51 Australian film and television projects to secure financing and start filming.
2.29
The following matters were discussed throughout general questions:
Breakdown of funding in the Budget for e-safety measures and protecting women online (pp. 4–9 and 12–13);
Staffing arrangements for the new adult cyberbullying investigations team
(pp. 4–6);
Update on the negotiations around the next Australian Broadcasting Corporation (ABC) triennium funding agreement (pp. 9–10);
Update on arrangements made between media organisations and Google and Facebook under the News Media and Digital Platforms Mandatory Bargaining Code (pp. 10–12);
Government support for media publishers and broadcasters in regional areas, including through the Public Interest News Gathering (PING) program (pp. 13–16);
Breakdown of $222.9 million allocated to support the arts sector through its recovery from the impacts of COVID-19 (pp. 16–18 and 25–26);
Extension of the Restart Investment to Sustain and Expand (RISE) fund, additional funding, and the number of applications received and grants to be delivered (pp. 18–20);
Process to appoint members to the ABC Board (pp. 20–23);
Discussions surrounding the ABC’s digital platform transformation (p. 23);
Impact of international border closures on the arts sector (p. 26);
Update on the Support Act grant scheme (pp. 26–27);
Support for live productions impacted by state border closures and lockdowns (pp. 27–28);
Update on the Show Starter Loan Scheme (pp. 28–30);
Eligibility criteria and terms of agreement for PING program funding grants (pp. 35–37);
Government’s decision to provide an additional $15 million in the Budget to the Australian Associated Press (pp. 37–38); and
Government’s decision to set the date of 30 June 2021 for the transition to online broadcasting for community television (pp. 39–42).
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
2.30
Officers were called in relation to Program 5.1: Digital Technologies and Communications Services. Some of the matters canvassed included:
Households on the NBN network unable to access minimum download and upload speeds and the requirements under the Statutory Infrastructure Provider rules (pp. 42–47);
Update on the Mobile Black Spot Program (pp. 47–53);
Details on the Media Reform Green Paper (pp. 53–57);
DITRDC’s work in relation to gambling advertising and online gambling (pp. 57–69);
Misinformation in relation to 5G and an update on the $1.8 million funding announced in December 2019 for an information campaign to build community confidence in 5G safety (pp. 60–62);
Overview of proposed trial services under the Alternative Voice Service trials program, including the grant provided to NBN Co (pp. 62–66);
Breakdown of $400 million allocated to upgrade the Hybrid Coaxial Fibre (HCF) network (pp. 66–68);
Status of the DITRIDC’s review of Australian classification regulation
(pp. 68–69);
DITRIDC’s research regarding the effects of video games on children (pp. 69 and 74);
The Boston Consulting Group’s strategic review of Australia Post
(pp. 69–72); and
Update on DITRDC’s implementation of recommendations from the Australian Competition and Consumer Commission’s digital platforms inquiry (pp. 73–74).
Outcome 6: Participation in, and access to, Australia’s arts and culture through developing and supporting cultural expression
2.31
In relation to Program 6.1: Arts and cultural development, matters discussed by the committee included details of contracts entered into by the National Museum of Australia (pp. 108–109), a breakdown of grants awarded under the RISE program (pp. 109–113), and the proposed reform of the producer offset for Australian film and television productions (pp. 113–116).
Australian Broadcasting Corporation
2.32
In his opening statement to the committee, Mr David Anderson, Managing Director of the Australian Broadcasting Corporation (ABC) spoke to the importance of the ABC’s public interest journalism and highlighted the contribution of ABC reporting to policy reform and industry accountability:
This public service media model that the ABC operates under, where it is independent of both government and commercial interests, contributes to high levels of public interest. We should never lose sight of the value the ABC offers and the significance of the contribution we make to Australian communities everywhere. It is the impact of the work we do and the value we provide to the community that should be the real measures of the ABC's success.
Two of Australia's most important royal commissions have come from public interest broadcasting at the ABC—misconduct in the banking, superannuation and financial services industry, and aged-care quality and safety. Work done by our journalists in reporting on these issues and bringing them to national attention has ultimately led to government responses and policy reforms which have made a real difference to the lives of many Australians.
2.33
The committee then examined the following matters:
ABC’s coverage of the events of 6 January 2021 at the United States Capitol building (pp. 76–77);
Staff bonuses and performance payments (pp. 77–78 and 98)
ABC’s documentary series Exposed: The Ghost Fire Train (pp. 78–79, 84–85 and 88);
Implementation of a mandatory login for ABC iview (pp. 79–80 and
101–103);
Coverage of conflict in Israel and Palestine (pp. 80, 90–92, 99–100 and
103–104);
ABC’s new diversity and inclusion commissioning guidelines (p. 81);
ABC’s position on whether a public broadcasting ombudsman is needed (pp. 81–82 and 91);
Ongoing negotiations with the Minister for Communications, Urban Infrastructure, Cities and the Arts and DITRDC regarding the next tranche of triennium funding (pp. 82–84);
ABC’s guidelines and code of conduct for journalists in relation to the use of social media (pp. 86–87 and 98–99);
Legal advice sought regarding Four Corners episode ‘Inside the Canberra Bubble’ (p. 87);
ABC’s cyber security strategy (pp. 88–89);
Appointment of new members to the ABC board (pp. 89 and 92–93);
Editorial guidelines regarding coverage of criminal allegations (p. 91);
Discretionary leave for employees to receive COVID-19 vaccinations (p. 93);
Foreign bureaus held by the ABC (pp. 93–94);
ABC’s engagement of contractors (pp. 94–95 and 104);
ABC’s work to support media literacy in Australia (pp. 96–97);
ABC’s position in relation to the government’s Media Reform Green Paper (pp. 97–98);
The future of ABC’s outside broadcast vans and plans to engage an external provider (pp. 100–101);
The number of corrections and clarifications issued by ABC (pp. 104–105); and
Staffing arrangements for ABC’s in-house legal team (p. 105).
2.34
Officers from ABC were called to appear again before the committee at a spillover hearing held on 7 June 2021, where the committee discussed the following matters:
Communication between the ABC and the Prime Minister’s office regarding the ABC’s reporting on Mr Christian Porter or in relation to his defamation case against the ABC (p. 3);
Details of the terms of settlement of Mr Porter’s defamation case against the ABC, including the costs of mediation and related costs borne by the ABC (pp. 3–5, 9, 17–19, 23–26 and 35);
Timeline of the mediation process and settlement (pp. 5 and 9);
Costs incurred by the ABC in legal proceedings (pp. 5 and 34);
Commentary from ABC journalists on social media, and the ABC’s internal guidelines on the personal use of social media by employees (pp. 6–7, 14–17, 19–20, 24–25 and 32–34);
Internal policies governing the diversity of perspectives broadcast by the ABC (p. 7);
Communication between the government and Mr Porter regarding his costs incurred by defamation proceedings (pp. 10–11);
ABC’s media statement regarding the settlement (pp. 11–12);
The government’s support of the independence of the ABC board and position on the current ABC Chair (pp. 21–23 and 35–36);
Four Corners episode ‘the Great Awakening’ (pp. 26–30);
Discussion between ABC and the Prime Minister’s office regarding ABC funding (p. 30);
Services provided by the ABC throughout the COVID-19 pandemic (p. 31);
Update on the ABC’s plan to have 75 percent of its content makers located outside its central Sydney-based Ultimo headquarters by 2025 (p. 34); and
ABC’s position on content obligations and quotas (pp. 34–35).
Special Broadcasting Service Corporation
2.35
Mr James Taylor, Managing Director of the Special Broadcasting Service Corporation (SBS), provided an opening statement to the committee which highlighted SBS’s plans to expand its language services:
SBS continues to deliver trusted, independent and impartial news and in-language services to keep Australians informed and safe. We've been covering the evolving COVID-19 crisis for quite a while now, and most recently our video explainers, in more than 60 languages, informing diverse communities about the coronavirus vaccine and the national rollout plan, have had one million viewers.
At a time when such services are more vital than ever, SBS welcomed the recent federal budget outcome and, in particular, the additional funding of $29 million over three years to extend our language services...As part of our broader subtitling initiative, we'll be doing more subtitling of our distinctive, original Australian content in simplified Chinese and in Arabic, two of the nation's largest and fastest-growing language groups. We will be enhancing our news and language services by producing our own bespoke 30-minute television news bulletins in Mandarin and Arabic five days a week, and, building on the success of services like our existing Settlement Guide, we will be providing more resources for newly arrived migrants in Australia to assist with contextual English language skills.
2.36
The committee then examined the following matters:
Confidentiality of SBS’s board deliberations (p. 106);
SBS’s cyber security strategy (pp. 106–107);
Messaging to staff regarding the freedom of expression of journalists
(p. 107);
Plans to highlight Torres Strait Islander culture in future programming
(p. 108); and
Performance of SBS productions in international markets (p. 108).
NBN Co. Limited
2.37
On 27 May 2021, Mr Stephen Rue, Chief Executive Officer of NBN Co Limited (NBN Co) updated the committee on the rollout of the NBN network in his opening statement:
The people of NBN Co have worked hard to build our nation's digital backbone and continue to evolve the product offering and improve our customer service to support Australia's long-term prosperity. In February this year we reached our biggest milestone yet: connecting eight million homes and businesses to NBN. As we move away from a construction focus to being a customer-led service organisation, we continue to invest in the network and in product solutions. Last year, we were able to announce continued network upgrades and further plans to make our highest wholesale speed tiers available across the nation. By 2023, our highest wholesale speed plans will be available to up to 75 per cent of premises in the fixed-line footprint. This work is already underway with the announcements of the suburbs and towns representing 1.1 million homes and businesses set to benefit from the extension of fibre deeper into the communities. We're also seeing strong demand for our higher speed tiers, with more than 1.4 million customers on speed tiers of 100 megabits per second and above. That all points to very strong progress the company is making.
2.38
The committee then examined the following matters:
Executive bonuses and remuneration (pp. 6–10, 12–14, 17–18 and 32);
Figures in relation to the cancellation of technician appointments (pp. 10–12 and 39);
Role of the copper network within the NBN (pp. 12–13);
Overview of NBN Co’s 2021 third quarter financial performance (pp. 14–16);
Communications between NBN Co and the Communications, Electrical and Plumbing Union of Australia (pp. 18–19);
Internal policies and procedures regarding subcontractors (pp. 19–26, 29–32 and 34–40);
Rollout of the ServiceMax application to delivery partners and subcontractors (pp. 22–23 and 40–41);
Update on the Business Fibre Initiative (pp. 26–28);
NBN Co’s response to natural disasters (pp. 32–33);
Ongoing issues regarding delivery of high-speed internet in parts of the HFC network (pp. 41–44);
Update on installation of G.fast technology on the Fibre to the Curb network (pp. 44–46); and
Pricing structure for the installation of lead-in conduits (pp. 46–48).
Australian Postal Corporation
2.39
The committee welcomed officers from the Australian Postal Corporation (Australia Post). Mr Rodney Boys, Acting Group Chief Executive Officer and Managing Director of Australia Post, updated the committee on Australia Post’s performance and the changed postal environment since the COVID-19 pandemic in his opening statement:
…post the onset of COVID, sees us delivering on average around one million less letters every day. The pandemic has changed how we live, work and interact… online purchases in 2020 grew by 57 per cent and Australians spent a record $50 billion online. As a percentage of total retail, online sales now account for 16.3 per cent—a figure we did not expect to see for another two years…We now have an additional 1.1 million households shopping online each month.
At the beginning of the pandemic the federal government granted Australia Post temporary regulatory relief, enabling us to continue to deliver for Australia, despite the enormous restrictions, reductions in air capacity, border closures and associated costs of addressing these impacts. These temporary measures, including the change to delivering letters every second business day in metropolitan areas, are due to expire on
30 June, and I want to assure you that we have been anticipating this for some months. We have been, and continue to be, heavily focused on lifting our service, speed and reliability, and we are confident we will achieve our prescribed performance standards this year…we have been able to improve our letter and parcel service levels towards our pre-COVID prescribed standards.
2.40
Other matters raised by the committee included:
The Boston Consulting Group’s review of changes to Australia Post’s regulations in 2020 (p. 50);
The shift to high-capacity vehicles such as electric delivery vehicles and vans from small-capacity vehicles such as motorbikes, and the use of Australia Post staff and contractors (pp. 50–51);
Arrangements for additional staff to support the higher postage demand experienced during the 2021 Tasmanian state government election (pp. 52, 55 and 56);
Plans for the return to Australia Post’s original service standards after the lapse of COVID-19 regulatory relief (pp. 52–55);
Adherence to letter performance standards (p. 56);
Process undertaken to appoint the new Chief Executive Officer (pp. 56–57);
The McKinsey Report commissioned by Australia Post (pp. 57–58);
Terms of the Boston Consulting Group’s contract with Australia Post (pp. 58 and 60–61);
Engagement with public relations firm Domestique (p. 59);
Process to capture electronic advance data required for outbound international parcels (pp. 61–63);
Communication with Licensed Post Offices (LPOs) following the departure of previous Chief Executive Officer, Ms Christine Holgate (pp. 63–64); and
Communication between Australia Post and the Shareholder Ministers regarding executive bonuses (p. 65).
Australia Council
2.41
In his opening statement, Mr Adrian Collette, Chief Executive Officer of the Australia Council, reflected on the resilience of the arts and creative sector in its recovery from the COVID-19 pandemic:
Earlier this month, I had the pleasure of joining arts leaders from around the country at a residential program we were running in Wagga Wagga in the New South Wales Riverina...I was struck by the energy, enthusiasm and passion of the leaders of our arts organisations, particularly after the profound disruption of COVID-19. It reinforced for me the tremendous commitment of those who work in our cultural and creative industries…
I also had the opportunity to meet with the representatives from the Wagga Wagga City Council about their active support for local arts programs and to learn about their regional cultural plan stretching out to 2030...Over the next few months, there will be festivals across the country—from Hobart in the south to Darwin in the north—that will engage, entertain and enlighten audiences from all walks of life and backgrounds…
This year's budget for the Australia Council includes additional funding for the Playing Australia program, which will enable more Australians in regional and remote communities to enjoy the performing arts as we continue to rebuild from the disruption of COVID.
2.42
Officers from the Australia Council then answered questions on the following matters:
Australia Council’s input into the RISE grant selection process (pp. 66–67 and 70–72);
Expenditure of the $5 million allocation for the Playing Australia fund
(pp. 67–68 and 70);
Proportion of Australia Council grants awarded to regional and rural arts organisations (pp. 68–69 and 70);
Application process for the National Performing Arts Partnership Framework (pp. 69–70); and
Conditions for the Playing Australia and RISE Fund grants in the case of COVID-related cancellations or delays of events (p. 72).
Screen Australia
2.43
The committee called officers from Screen Australia and discussed three matters. Firstly, the committee asked about producer offsets in relation to the paper, co-authored by Screen Australia and Australian Communications and Media Authority, titled ‘Supporting Australian stories on our screens options paper’ (p. 73). Secondly, information was sought in relation to Australian documentaries funded by Screen Australia and the impact of raising the expenditure threshold for the producer offset for documentaries (pp. 73–74). Lastly, the communications between Screen Australia and DITDRC regarding changes to the funding of documentaries was also discussed (pp. 74–76).
Office of the eSafety Commissioner
2.44
The committee called officers from the Office of the eSafety Commissioner.
Ms Julie Inman Grant, eSafety Commissioner, tabled a statement that updated the committee on the increase in numbers of public reports of cyber harm received by the Office of the eSafety Commissioner:
In 2020, reports of illegal and harmful content were the highest seen in the Online Content Scheme's 20-year history with over 21,000 reports made. Sadly, this trend is continuing in 2021 with reports in the first four months of this year 53% ahead of where they were at the same time last year. Two thirds of these reports concern child sexual abuse material…
Reports of youth-based cyber bullying to eSafety have risen by 34% in the first quarter of 2021 compared to the same quarter in 2020, which was also a record reporting year…
In a similar fashion, we have continued to see an increase in adult cyber abuse complaints - which have now outpaced cyber bullying reports. In the first quarter of this year, the rate of these reports has doubled compared to the same period in 2020, supporting the need for the legislative reforms to enable us to expeditiously remove seriously harmful content targeting adults as well.
2.45
Other matters raised by the committee included:
Breakdown of $18 million allocated for the investigation of image-based abuse and other harmful online content (p. 77–78);
Threshold test for cyber abuse under the new adult cyber abuse scheme
(pp. 78–85);
Breakdown of $3 million allocated for a pilot program to develop technology to address image-based abuse (pp. 83–84);
The Office of the eSafety Commission’s powers to issue formal end-user notices (pp. 85–86);
Role of the Office of the eSafety Commissioner in raising community awareness about misinformation online (pp. 87–89);
Office of the eSafety Commissioner’s research regarding young people and the impact of video games (pp. 89–91); and
Details of stakeholder meetings attended by the eSafety Commissioner
(p. 91).
Australian Communications and Media Authority
2.46
The committee called officers from the Australian Communications and Media Authority (ACMA) and examined the following matters:
ACMA’s position on the current regulations in relation to the blackout period during elections (p. 92);
Update on the ACMA’s investigation into complaints regarding ABC’s program ‘Fight For Planet A’ (pp. 92–94);
Breakdown of complaints received by the ACMA about the ABC over the past three years (pp. 94–95);
Role of ACMA in raising community awareness about misinformation online (pp. 95–98);
ACMA’s position on the removal of COVID misinformation from social media platforms (pp. 98–99);
Expenditure of the Regional and Small Publishers Innovation Fund
(pp. 99–102);
Update on ACMA’s register of arbitrators to support the implementation of the News Media and Digital Platforms Mandatory Bargaining Code
(pp. 100–101);
Update on ACMA’s development of the National Self-Exclusion Register
(p. 102); and
Noncompliance of television networks in regard to Australian content quotas (pp. 102–103).
Classification Board
2.47
The committee called officers from the Classification Board and discussed: the impact of the government’s review of classification regulation on the work of the Classification Board (pp. 103–104); the current caseload of the Classification Board (pp. 104–105); the Classification Board’s staffing arrangements (p. 105); and the classification of video games (pp. 106–107).
Australian National Audit Office
2.48
The committee called officers from the Australian National Audit Office and discussed three matters. Firstly, the committee asked for an update on the ANAO’s consideration of the referral of the $40 million grant awarded to Fox Sports for audit and, more broadly, its plans for its annual audit work program for the 2021-22 year (pp. 30–31). Secondly, the committee asked about the ANAO’s audit of the methodologies used for the valuation of NBN Co Limited (pp. 31–34). Lastly, the ANAO’s audit of NBN Co’s executive bonus payments from the 2020 financial year, including executive revenue key performance indicators and bonus-linked targets was discussed (pp. 34–35).
Senator the Hon David Fawcett
Chair