1.1
On 25 June 2008, the Senate established the Senate Select
Committee on Fuel and Energy (the committee) to inquire into and report on the
impact of higher petroleum, diesel and gas prices and several related matters.
1.2
The full terms of reference for this inquiry are extensive and can be
found at appendix 1. As the committee's terms of reference are broad, the
committee concentrated on evidence received regarding energy and fuel security
in the final stage of its inquiry, specifically addressing the following parts
of the inquiry's terms of reference:
(e)
the existing set of federal and state government regulatory powers as
they relate to fuel and energy products;
(f)
taxation arrangements on fuel and energy products including:
(i) Commonwealth excise,
(ii)
the goods and services tax, and
(iii)
new state and federal taxes;
(g)
the role of alternative sources of energy to coal and alternative fuels
to petroleum and diesel, including but not limited to: LPG, LNG, CNG, gas to
liquids, coal to liquids, electricity and bio-fuels such as, but not limited
to, ethanol;
(h)
domestic energy supply and the domestic oil/gas exploration and
refinement industry, with particular reference to:
(i)
the impact of Commonwealth, state and local government regulations on
these industries,
(ii)
increasing domestic oil/gas exploration and refinement activities, with
a view to reducing Australia's reliance on imported oil,
(iii)
other tax incentives, and
(iv)
securing Australia's future domestic energy supply;
1.3
The committee has tabled two interim reports since it was established.
The first interim report, The CPRS: Economic cost without environmental
benefit, mainly addressed term of reference 'd' which referred to the
possible impact of an emissions trading scheme on the fuel and energy industry.
The committee's second interim report, The mining tax: Still bad for the
economy‑Still bad for jobs, covered the committee's examination of
the Australia's Future Tax System Review (Henry Tax Review), the government's
subsequent proposed policies and the impact these policies may have on the fuel
and energy industry.
1.4
This final report summarises the work the committee has undertaken since
its establishment.
1.5
The inquiry was advertised in The Australian and details of the
inquiry were placed on the committee's website. The committee invited
submissions from a wide range of interested organisations, government
departments and individuals, and sought supplementary submissions specifically
addressing the terms of reference outlined above, from those submitters who had
provided submissions to the first stage of the inquiry. The committee continued
to accept submissions throughout the inquiry, and to date the committee has
received 138 submissions, which are listed at appendix 2, and
21 submissions on the Henry Tax Review Report and the government's
response, which are listed at appendix 3.
1.6
Since its first interim report, the committee has held 13 public
hearings in Canberra, Perth, Hobart, Melbourne, Sydney and Adelaide. In total
the committee has held 25 public hearings since it commenced its inquiry
on 25 June 2008. Details of the public hearings, including a list of
the witnesses who gave evidence are provided at appendix 4. A list of the
documents tabled at the committee's public hearings is at appendix 5.
1.7
The committee has also undertaken a further nine site visits since its
first interim report. On 14 September 2009, the committee visited
Infigen Energy's Capital Wind Farm to learn about wind power and how wind farms
operate. In late September 2009, the committee undertook a week of
intensive travel to a number of sites, in an attempt to gain a practical
understanding of the operations of various sectors of the fuel and energy
industry. On 21 September 2009 the committee flew out to the
Geodynamics Innamincka Geothermal Tenement to gain an appreciation of the
concept of Hot Fractured Rocks geothermal energy and its expected potential as
an energy source in the future. The committee then continued to the Santos
Moomba facility where they observed the production processes for both oil and
gas. On 22 September 2009, the committee attended BHP Billiton's
Olympic Dam mining operation to gain a practical understanding of the uranium
production process, and the extent of Australia's uranium resources. Following
this, on 23 September 2009, the committee visited the Karratha Gas
Plant to gain an appreciation of the process of producing and developing gas
for domestic use and export. Finally, on 24 September 2009, at the
end of a rigorous week of site visits, the committee attended TRUenergy's
Yallourn mine and power station to observe the operation of the facilities and
gain an understanding of the role they play in providing a source of power.
1.8
Following the intensive site visit program, the committee travelled to
Sydney on Monday 7 December 2009 to visit the Australian Nuclear
Science and Technology Organisation (ANSTO) to gain an understanding of the
work conducted by ANSTO and some of the issues associated with nuclear science.
Later that day the committee also travelled to the School of Physics at the
University of Sydney to learn about the school's work in the nuclear science
field.
1.9
The committee undertook its most recent site visit on
15 March 2010, attending Country Energy's Intelligent Networks
Research and Demonstration Centre, where they observed smart grid and smart
metering technology. Since the committee commenced its inquiry a total of
12 site visits have been undertaken to inform the committee's
understanding of the operation of various sectors of the industry, and a list
of these site visits can be found at appendix 6.
1.10
On 19 July 2010, the Governor-General prorogued the 42nd Parliament and
dissolved the House of Representatives. Due to the timing of the election, the committee
was unable to complete its third and final report. Accordingly, the committee
recommends that, in the new Parliament, the Senate re-establish the Select
Committee on Fuel and Energy with the same terms of reference as the current
committee, empowered to consider all the evidence and records received by it
and for the specific purpose of completing and tabling a comprehensive report
on the findings of the committee.
1.11
The committee thanks those organisations, government departments and
individuals who made submissions and gave evidence at the committee's public
hearings. The committee would also like to express its appreciation to those
who hosted the committee during its site visits.
Recommendation 1
1.12
The committee recommends that, in the new Parliament, the Senate
re-establish the Select Committee on Fuel and Energy with the same terms of reference
as the current committee, empowered to consider all the evidence and records
received by it and for the specific purpose of completing and tabling a
comprehensive report on the findings of the committee.
Senator
Mathias Cormann
CHAIR
Navigation: Previous Page | Contents | Next Page