Chapter 3
Industry, Innovation and Science portfolio
3.1
This chapter summarises certain key areas of interest raised during the
committee's consideration of additional estimates for the 2018–19 financial
year for the Industry, Innovation and Science portfolio. This chapter of the
report follows the order of proceedings and is an indicative, not exhaustive,
account of issues examined.
3.2
On 21 February 2019, the committee heard evidence from Senator the Hon.
Matthew Canavan, Minister for Resources and Northern Australia[1],
along with officers from the Department of Industry, Innovation and Science
(the department) and agencies including:
- Anti-Dumping Commission;
- Australian Nuclear Science and Technology Organisation (ANSTO);
- Commonwealth Scientific and Industrial Research Organisation
(CSIRO);
- Office of Innovation and Science Australia;
- Northern Australia Infrastructure Facility (NAIF); and
- National Offshore Petroleum Safety and Environmental Management
Authority (NOPSEMA).
3.3
Senators present over the course of the day's hearing included Senator Hume
(Chair), Senator Ketter (Deputy Chair), and Senators Carr, Patrick, Sinodinos,
Stoker, and Storer.
Department of Industry, Innovation and Science—Programme 3
Women in STEM
3.4
The committee asked representatives from the department about government
initiatives relating to women in science, technology, mathematics and
engineering (STEM).
3.5
Officials from the department noted that work on encouraging women's
participation in STEM was an important part of the National Innovation and
Science Agenda (NISA). Specifically, the NISA introduced initiatives including the
Male Champions of Change, the Women in STEM and Entrepreneurship grants
program, the Superstars of STEM, and the Science in Australia Gender Equity
project.[2]
3.6
Officials also noted the recent appointment of the first women in STEM
ambassador, Professor Lisa Harvey-Smith. The role
of the ambassador is to work on a national scale to raise awareness of the
issues that can hold girls and women back from STEM study and work:
She will increase
understanding of the opportunities available to girls and women in STEM, aiming
to increase their participation. Through her advocacy, the Ambassador will help
drive cultural and social change for gender equity.[3]
3.7
Officials from the department commented that the government is committed
to supporting women in STEM:
This is reflected in the 2018-19 budget, where the government
committed over $4.5 million over four years to support long-term strategic approaches
to encourage more women and girls to pursue STEM education and careers. This
work has included developing the inaugural Women in STEM strategy; support to
the sector to develop the decadal plan; and support to develop a Girls in STEM
Toolkit to really open up the eyes of school-age girls to the exciting careers
that can be there for them in STEM.[4]
Complementary medicines
3.8
The committee discussed the use of the Australian Made logo for complementary
medicines. The committee noted the introduction of legislation relating to the
Australian Made logo in early 2017, and that the Australian Competition and
Consumer Commission's interpretation of the legislation had revealed unintended
consequences of the legislation. Specifically, that:
The new definition of 'substantial transformation' focuses
more on the imported content of a product than the previous definition. Some
products which previously met the substantial transformation test will no
longer do so, meaning that they will no longer qualify to carry the Australian
Made logo.[5]
3.9
The committee asked what the department was doing to resolve this issue,
noting that a resolution may be possible through the introduction of new
regulations. Departmental officials noted that 'the government has announced
and established a task force to investigate this issue'.[6] Officials commented:
The work of the task force, including meeting with industry
and representations of industry, has demonstrated that this issue is more
complicated and more difficult than the claims that may have been made. For
example, two of the majority exporters, Blackmores and Swisse, have informed
the task force that they don't use the logo on their export products and have
enjoyed considerable success overseas.[7]
3.10
Officers from the department advised the committee that the taskforce
was due to complete its report and provide advice to the minister by the end of
February 2019.[8]
Department of Industry, Innovation and Science—Programme 1
R&D tax incentive
3.11
The committee discussed the research and development tax incentive
(RDTI) with departmental officials. In particular, the committee sought an
update of the work of the National Reference Group (NRG). Departmental
officials confirmed that the NRG had not met since March 2017; however, also
noted that consultations had taken place with a number of organisations that
form the NRG in relation to proposed changes to the R&D tax incentive in
July 2018.[9]
3.12
Departmental officials advised the committee that a new consultation
group called the RDTI Roundtable, that comprised existing NRG members as well
as other organisations, would have its first meeting on 7 March 2019.[10] Departmental officials clarified:
The difference as well from the NRG to the new RDTI
roundtable is that it will be a rolling membership, which means there are a
considerable number of members. We are talking about a number of around 30.[11]
Square Kilometre Array
3.13
The Square Kilometre Array (SKA) is a global project that aims to build
the world's largest and most capable radio telescope. The department's website
explains:
During its more than 50 year lifetime, the SKA will expand
our understanding of the universe and drive technological developments
worldwide. Australia and South Africa will each host SKA components. The
project is in the pre-construction phase.[12]
3.14
Departmental officials provided the committee with an update on the
progress of the SKA over the last 12 months:
The SKA has made a lot of very positive progress over the
last 12 months. Both France and Spain have joined the current SKA organisation,
and the project is now moving towards a signing ceremony for the SKA
Observatory Convention that we've been negotiating. That signing ceremony will
take place in Rome on the 12 March. It will involve all the member countries.
3.15
There are currently 12 member countries of the SKA project, which is
still in the pre-construction design phase.
3.16
The committee asked about what outstanding funding allocation still
needed to be made by the Australian Government as part of the SKA. Officials
from the department noted that there was still a range of funding allocations
to be made:
We have an obligation to continue to fund the SKA
organisation, so that's the UK company where the headquarters are located. We
are also still supporting some companies or institutions that are
participating. As I mentioned earlier, we're getting close to the end of the
pre-construction phase, so there's still some funding for that. But then we
still move into a bridging period, which is between the end of pre-construction
to construction. The Australian government is providing some funding to support
those activities also.[13]
3.17
Specifically, there is an allocation of $25 million over 2018–19 and
2019–20, which is part of the $293 million total that takes the SKA project
through to
2025–26.[14]
Department of Industry, Innovation and Science—Programme 2
Australian Space Agency
3.18
The committee discussed the establishment of the Australian Space Agency
(ASA). The head of the ASA is Dr Megan Clark AC. Dr Clark is a geologist and
former director of CSIRO.
3.19
The committee noted the government's announcement in December 2018 that
the ASA's headquarters will be located in South Australia. Dr Clark advised the
committee that the ASA would be set up inside Lot 14—the site of the former
Royal Adelaide Hospital and would be the base for 20 staff.[15] Dr Clark noted that construction on that site is due to commence in mid-2019.[16]
3.20
Dr Clark also informed the committee of progress that the ASA had made
in relation to establishing agreements with industry:
The agency, in its first eight months, has already done
statements of strategic intent with three industry partners: Airbus, Sitael and
Nova Systems. Inside those agreements, relevant to South Australia, Airbus has
agreed to relocate one of its satellites in the Skynet network and the control
centre of that to South Australia. Sitael is an Italian satellite manufacturer,
and has committed to manufacturing satellites up to 300 kilograms in South
Australia. And Nova Systems, which is based in South Australia, is looking at
areas to expand in space situational awareness—that is, the debris in space—and
the analytics around that, next generation ground systems and, also, capability
assurance services.[17]
Australian Institute of Marine Science
3.21
The Chief Executive Officer (CEO) of the Australian Institute of Marine
Science (AIMS), Dr Paul Hardisty, made an opening statement which highlighted
some of AIMS's activity over the last six months. In particular, Dr Hardisty
noted the effect of the recent Townsville floods on AIMS's operations:
I would also like to thank all the AIMS staff, who kept
working, even as floodwaters threatened their homes. They volunteered to keep
our facilities at Cape Cleveland running, even as our road was cut, and then
banded together to help our colleagues whose homes were flooded to clean up and
dig out. It was a pretty bad time for a lot of people. I just wanted to
acknowledge that. Thank you.[18]
3.22
Dr Hardisty also noted that the Reef Restoration and Adaptation Program
was nearing a conclusion. The aim of the program is to provide governments with
options for at-scale restoration and adaptation of the reef. Dr Hardisty noted
that '[c]urrently, such options do not exist'.[19]
3.23
Dr Hardisty also noted that AIMS will shortly release the latest edition
of its biennial 'AIMS Index of Marine Industry', which measures the economic
value of Australia's marine industries:
In 2001 and 2002 total income, based on the marine
environment, was about $27 billion. In 2015–16 it was $68.1 billion, an
increase of over 250 per cent during that period. And for the first time in the
history of the index, in this latest version, which will be issued next month,
tourism and recreational activities have eclipsed offshore oil and gas production
as the main contributor to the Australian economy amongst marine industries.[20]
3.24
Dr Hardisty concluded:
As Australia's north continues to grow and develop, the
marine estate will increasingly deliver more value and be subject to mounting
stresses. Vast areas of our northern marine estate remain virtually unexplored.
Meanwhile, key marine ecosystems, such as coral reefs, are in decline and will
require significant investment if we are to safeguard them and the economic and
social benefits they represent for the future.[21]
3.25
The committee asked AIMS about the vessels of its research fleet.
Dr Hardisty answered that AIMS has two major vessels: RV Solander and RV Cape Ferguson. The RV Cape Ferguson is 20 years old, and AIMS has
advised the committee it is looking to with replace the vessel or enter it into
a life-extension program.[22]
3.26
Dr Hardisty noted that replacement of the vessel would be in the order
of
$50 million; whereas a life-extension program would be in the $1–3 million
range.[23]
Australian Nuclear Science and Technology Organisation
3.27
The committee asked ANSTO about its plans for the use of Building 23. Dr
Adi Paterson, CEO of ANSTO, noted that ANSTO had toured the building with the
new minister to show her key elements of the challenges that ANSTO will face in
Building 23.[24] Dr Paterson noted:
I think there is a consensus forming that the replacement
plans for building 23 in terms of long-term supply of nuclear medicines in a
reliable way in Australia is a matter that many different actors are looking at
in a structured way.[25]
3.28
Dr Paterson explained that whether the plan for refurbishment of
Building 23 was planned on a five year or eight year plan, that ANSTO's
priority remained the 'proper sustainment of the existing facility'.[26]
3.29
Dr Paterson also noted that ANSTO had expanded its activities in
Building 54 over the last few years. He noted that 'about five years ago that
was three to four per cent of world supply. We now undertake 16 per cent of
world supply'.[27]
3.30
In relation to Building 54, Dr Paterson specified:
The building 54 plant is the one that was built in the middle
of the 2000s. The ANM plant is currently undergoing its final commissioning. I
had a meeting with the regulator in relation to that last week. It is also
undergoing the approvals from nuclear medicine authorities both in
Australia—that is, the TGA—and in the United States—the FDA. When those nuclear
medicine authority approvals are received and the regulator is satisfied with
the safe operation, we will be able to begin supply from the ANM facility to
the market.[28]
Commonwealth Scientific and Industrial Research Organisation
Artificial intelligence
3.31
The committee asked CSIRO about work being done in relation to
artificial intelligence. Dr Larry Marshall, CEO of CSIRO, noted that work on
artificial intelligence is principally undertaken by Data61, the digital part
of CSIRO. However, Dr Marshall also noted that artificial intelligence was
becoming a more prominent part of CSIRO overall:
...over
the last few years, many of the other areas of CSIRO, like agriculture, have
become increasingly digital, so that digital capability is diffused throughout
the organisation. A lot of the creations inside Data61 find their way into the
different industries through the other CSIRO business units. In fact, that
tends to be the largest source of growth for Data61. We use artificial
intelligence, for example, in our climate modelling now. We call it machine
learning. It's an early form of AI, but it is AI. We're using it to improve our
seasonal and decadal climate prediction, we're using it in our drought
modelling and we're using it in our health group, where we're trying to use AI
to analyse and do early detection of cancers.[29]
3.32
Dr Marshall considered that, for CSIRO, artificial intelligence is 'all
about energy, water, health, and, of course, jobs'.[30] He pointed to some recent work done by Data61 to map out the impact of digital
technologies on the future of work in Australia.[31]
3.33
The committee asked about the application of such work on artificial
intelligence to the public service. Dr Smith, Secretary of the department,
noted that a number of departments were beginning to look at how artificial
intelligence would impact the future of their work; in particular, Dr Smith
pointed to the Department of Human Services and the Department of Home Affairs.[32]
3.34
Dr Smith considered that more research needed to be done in order to
determine what the more precise impact of artificial intelligence might be on
jobs, noting:
There are various studies, both those that are quite dramatic
and those that are more assuring, in terms of what that means for the changing
nature of work. We are still trying to do mapping work between the two
departments—the Department of Jobs and Small Business and my department—in understanding
the sectoral implications. But, really, it's trying to get that balance between
where the opportunities are and where the jobs are that are going to be
impacted. There's also work going on in the Public Service to think about what
jobs within the public sector will be impacted. There will be opportunities,
but there will also be different types of jobs.
That's a longhand way of saying that there's quite a bit of
work in train. It hasn't all come together yet, but we're not unique, as a
country, in trying to understand the various dimensions of it and really think
about what the positives are, what we need to plan for in terms of the
transformation of jobs going forward and how we engage the population, in a
digital sense, on where the jobs of the future are.[33]
Murray-Darling report
3.35
The committee noted the recent release of the South Australian
Murray-Darling Basin Royal Commission report and asked CSIRO about its
involvement in the inquiry. Officers from CSIRO noted the following sequence of
events in relation to CSIRO's participation:
In terms of the sequence of events there, in early June we
received a request for current and former CSIRO employees or staff to appear.
Shortly after that, the Commonwealth instituted a High Court action, an
injunction, to prevent past and current Commonwealth employees from appearing.
We advised the commissioner on 29 June that we would be respecting the High
Court process and let it run its course, and then we would advise after that
how CSIRO would respond to the commission. That High Court action was
discontinued towards the end of August, and there was advice from the
Australian government solicitor that there would be voluntary submissions made.
CSIRO also advised the royal commissioner on 12 October that we would be making
a voluntary submission on the relevant scientific matters. We submitted that on
5 November.[34]
3.36
The committee raised concerns that CSIRO did not appear at a public
hearing the inquiry. However, CSIRO noted that they did make a submission to
the inquiry, and that beyond that, there was no particular need to appear.
3.37
Dr Marshall stated: 'Our science is published. It is clear. It stands on
its own merits'.[35]
National Offshore Petroleum Safety and Environmental Management Authority
Seismic testing in the Great
Australian Bight
3.38
The committee asked representatives from the NOPSEMA about a recent
approval given by NOPSEMA for seismic testing to be undertaken in the Great
Australian Bight. In particular, the committee raised concerns about the effect
of such testing on local marine life.[36]
3.39
Officials from NOPSEMA noted that an assessment of
the impacts seismic testing on marine fauna had been undertaken:
The short answer is yes, we did answer the impacts on a full
range of relevant marine fauna at that time of year and that location,
including southern right whales. It was part of the assessment decision-making
and also drove part of the conditions that were being established that you
mentioned that were attached to the approval.[37]
3.40
Officials also noted that NOPSEMA had reviewed the environmental impact
assessment report on the seismic testing and highlighted that:
We don't have any role in conducting seismic surveys,
releasing exploration permits or promoting oil and gas development. We're
purely considering whether the environmental impact of the survey, for example,
if it's a seismic survey, could be conducted without unacceptable impacts.[38]
3.41
NOPSEMA confirmed that seismic testing had been approved for between
September and November in 2019 and 2020.[39]
Other topics raised
3.42
The committee discussed a wide range of topics during the hearing with
the Industry, Innovation and Science portfolio. The above reporting of
discussions is not complete. Other topics discussed by the committee included:
- Possible privatisation of the National Measurement Institute;
- SAGE—Science in Australia Gender Equity;
- European southern observatory;
- Building Ministers' Forum
- Australian Building Codes Board;
- Building regulators' forum—flammable cladding;
- Non-conforming building products;
- Shergold and Weir report recommendations;
- Science policy review;
- Meetings of the Commonwealth Science Council;
- Advanced Manufacturing Growth Fund;
- Space agency activities relating to launches from Port Lincoln;
- Refurbishment and management of asbestos in space agency site;
- Seafood origin working group;
- Australian anti-dumping system;
- Commercial concerns regarding trade diversion;
- Public availability of the trade remedies index;
- Revenue implications of non-compliance;
- Paper dumping investigation and progress of subsequent report;
- AIMS' strategy to 2025;
- Staffing at ANSTO;
- Regulation for nuclear medicines;
- National radioactive waste management facility in South
Australia;
- Menindee Lake fish kill;
- Northern Australia Water Resources;
- Coal—demand for exports in Asia/Pacific;
- NOPTA—Bight Petroleum exploration activities;
- Update on investment decisions of the NAIF;
- NAIF Board donations to political parties;
- NAIF Board selection process;
- NAIF Projects in central Queensland;
- Equinor drilling in Great Australian Bight;
- Sound of seismic survey effect on marine animals;
- Prelude project safety issues; and
- Passive acoustic monitoring.
Senator Jane
Hume
Chair
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