Chapter 1 - Introduction

Chapter 1Introduction

1.1On 9 May 2023, the Senate referred the following documents to the Senate Rural and Regional Affairs and Transport Legislation Committee (the committee) for examination and report:

particulars of proposed additional expenditure in respect of the year ending on 30 June 2023 [Appropriation Bill (No. 3) 2022-2023].

particulars of certain proposed additional expenditure in respect of the year ending on 30 June 2023 [Appropriation Bill (No. 4) 2022-2023].[1]

1.2A reporting date of 19 March 2024 was set for the committee’s report to the Senate on its consideration of the 2023–24 Additional estimates.[2]

Portfolio coverage

1.3In accordance with the resolution of the Senate on 27 July 2022, the committee is responsible for the examination of the expenditure and outcomes of the following portfolios:

Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts); and

Agriculture, Fisheries and Forestry.[3]

Hearings

1.4The committee examined witnesses from the Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio on 12 February 2024, and witnesses from the Agriculture, Fisheries and Forestry portfolio on 13 February 2024.

1.5On 28 February 2024, the committee agreed to hold an additional hearing on 25March 2024 to continue the examination of the Australian Maritime Safety Authority.

1.6The committee heard from the following ministers:

Senator the Hon Carol Brown, Assistant Minister for Infrastructure and Transport;

Senator the Hon Anthony Chisholm, Assistant Minister for Regional Development; and

Senator the Hon Murray Watt, Minister for Agriculture, Fisheries and Forestry, and Minister for Emergency Management.

1.7Evidence was also provided by the following departmental secretaries who were accompanied by officers from the portfolio departments and agencies:

Mr Jim Betts, Secretary, Department of Infrastructure, Transport, Regional Development, Communications and the Arts; and

Mr Adam Fennessy PSM, Secretary, Department of Agriculture, Fisheries and Forestry.

1.8The following portfolio agencies were not required to appear:

Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio:

National Capital Authority;

National Transport Commission; and

National Intermodal Corporation Limited

Agriculture, Fisheries and Forestry portfolio

Australian Wool Innovation Limited

Cotton Research and Development Corporation;

Dairy Australia

Grains Research and Development Corporation;

Meat and Livestock Australia

Regional Investment Corporation;

Rural Industries Research and Development Corporation; and

Wine Australia.

1.9The committee thanks the minister, departmental secretaries and officers for their assistance and cooperation during the hearings.

Questions on notice and Hansard Transcript

1.10In accordance with standing order 26(9)(a), the committee set Thursday, 4 April 2024 as the date for the return of written answers or additional information in response to questions placed on notice during the initial hearings.

1.11Written answers and information provided to the committee in response to questions on notice arising from the hearings have been tabled in the Senate and published on the committee’s website. Links to the Hansard transcripts of these public hearings, and to answers, tabled documents and additional information are available on the committee’s webpage www.aph.gov.au/Parliamentary_Business/Senate_Estimates/rrat.

Record of proceedings

1.12This report does not attempt to analyse the evidence presented during the hearings. However, it does provide a summary of some of the key issues that were covered by the committee for each portfolio.

Answers to questions on notice – Budget estimates 2023–24

1.13The committee held Budget estimates hearings on 22 and 23 May 2023 for the Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio and on 24 and 25 May 2023 for the Agriculture, Fisheries and Forestry portfolio.

1.14The Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio took 405 questions on notice. The Agriculture, Fisheries and Forestry portfolio took 239 questions on notice.

Timeliness of answers to questions on notice

1.15The committee set Friday, 14 July 2023 as the return date for answers to questions taken on notice, both written and those placed on notice during the hearing.

1.16The Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio submitted 17 responses by the due date. The remaining outstanding responses were received during August, September and October 2023. The final responses were received on 20October 2023, the Friday immediately before the next round of estimates.

1.17The Agriculture, Fisheries and Forestry portfolio submitted all 239 responses to the committee on time.

Answers to questions on notice – Supplementary Budget estimates 2023–24

1.18The committee undertook Supplementary Budget estimates hearings on 23October 2023 for the Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio and on 24 October 2023 for the Agriculture, Fisheries and Forestry portfolio.

1.19The Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio took 463 questions on notice. The Agriculture, Fisheries and Forestry portfolio took 200 questions on notice.

Timeliness of answers to questions on notice

1.20The committee set Friday, 15 December 2023 as the return date for answers to questions taken on notice, both written and those placed on notice during the hearing.

1.21The Infrastructure, Transport, Regional Development, Communications and the Arts (excluding Communications and the Arts) portfolio submitted 94 responses by the due date. The remaining outstanding responses were received during January and February 2024. The final response was received by the committee on 12 February 2024, the first day of Additional Estimates 2023–24 hearings.

1.22The Agriculture, Fisheries and Forestry portfolio submitted 169 responses to the committee by the due date. The remaining responses were received in December, January, and February. The final responses were received on 1February 2024.

Public interest immunity claim

1.23On Monday, 12 February 2024, during the examination of the Department of Infrastructure, Transport, Regional Development, Communications the Arts, the committee was discussing the New Vehicle Efficiency Standard (NVES); and the Strategic Review of the Infrastructure Investment Program (IIP) when department officials declined to provide information requested.[4]

1.24When questioned further on the NVES modelling, Senator the Hon Anthony Chisholm, Assistant Minister for Regional Development, and Assistant Minister for Education (on behalf of the Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government) provided a copy of the response to Senate Order for the Production of Documents No. 458 as tabled out-of-session in the Senate on 12 February 2024. The response claims public interest immunity (PII) over documents relating to the NVES modelling as it would reveal the deliberations of Cabinet.[5]

1.25The response also noted that the disclosure of NVES modelling would not be in the public interest due to:

… future market sensitivities relating to the credit trading mechanism central to the operations of the NVES. Providing Government forecasts of credit volumes in a standalone credit trading system would be a signal to the market, creating the risk of significant flow-on effects for the effectiveness of the NVES.[6]

1.26When questioned further on the Strategic Review of the IIP, the Assistant Minister and departmental officials reminded senators of Minister Catherine King’s response to Senate Order for the Production of Documents No. 424 (including reference to OPD No. 407), as tabled in the Senate on 5December2023, which claimed PII noting the documents were ‘sensitive and/or Cabinet-in-Confidence’.[7]

1.27Throughout the hearing, the Deputy Chair, Senator the Hon Matthew Canavan, and Senator the Hon Bridget McKenzie sought to better understand the basis of both of these claims, in particular, the nature of the association of NVES modelling with cabinet deliberations. The Minister and department officials continued to refer back to the returns to order in response to these questions.

Note on references

1.28References to the Hansard transcript are to the proof Hansard and page number may vary between the proof and official Hansard transcripts.

Footnotes

[1]Journals of the Senate, No. 46, 9 May 2023, p. 1337.

[2]Journals of the Senate, No. 76, 19 October 2023, p. 2171.

[3]Journals of the Senate, No. 2, 27 July 2022, p. 73.

[4]Mr Jim Betts, Secretary, Department of Infrastructure, Transport, Regional Development, Communications and the Arts, proof committee Hansard, 12 February 2023, p. 8.

[5]Senator the Hon Anthony Chisholm, Assistant Minister for Regional Development and Assistant Minister for Education Copy of the response to Senate Order for the Production of Documents No. 458 as tabled out-of-session in the Senate on 12 February 2024 by Senator the Hon Anthony Chisholm on behalf of the Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government, February 2024, [p. 2] (tabled 12 February 2024).

[6]Senator the Hon Anthony Chisholm, Copy of the response to Senate Order for the Production of Documents No. 458 as tabled out-of-session in the Senate on 12 February 2024 by Senator the Hon Anthony Chisholm on behalf of the Hon Catherine King MP, Minister for Infrastructure, Transport, Regional Development and Local Government, February 2024, [p. 2] (tabled 12 February 2024).

[7]Senator the Hon Murray Watt, Minister for Agriculture, Fisheries and Forestry and Minister for Emergency Management, Order of 28 November 2023 (407) relating to the Infrastructure Investment Program, December 2023, [p. 2] (tabled 5 December 2023).