Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I present three government responses to committee reports as listed at item 12 on today’s Order of Business, as well as the government’s response to the report of the Finance and Public Administration References Committee on matters relating to the Gallipoli Peninsula. In accordance with the usual practice, I seek leave to have the documents incorporated in Hansard.

Leave granted.

The documents read as follows—

GOVERNMENT RESPONSE TO THE INQUIRY BY THE SENATE STANDING COMMITTEE ON ECONOMICS INTO THE CURRENT STATE OF AUSTRALIA’S SPACE SCIENCE AND INDUSTRY SECTOR

November 2009

Background

On 19 March 2008, the Senate referred the following matter to the Senate Standing Committee on Economics for report no later than October 2008 with an interim report by 23 June 2008:

The current state of Australia’s space science and industry sector, examining options to strengthen and expand Australia’s position in fields that strongly align with space science and industry, giving consideration to any national strategic coordination requirements and taking into account findings and policy options of the National Innovation System Review, with particular reference to:

a.

Australia’s capabilities in space science, industry and education, including:

i.

existing Australian activity of world-class standard, and

ii.

areas in which there is currently little or no activity but that are within the technical and intellectual capacity of the country;

b.

arguments for and against expanded Australian activity in space science and industry, including:

i.

an assessment of the risks to Australia’s national interest of Australia’s dependence on foreign-owned and operated satellites,

ii.

the potential benefits that could accrue to Australia through further development of our space capability,

iii.

economic, social, environmental, national security and other needs that are not being met or are in danger of not being met by Australia’s existing space resources or access to foreign resources,

iv.

impediments to strengthening and expanding space science and industry in Australia, including limiting factors relating to spatial information and global positioning systems, including but not limited to ground infrastructures, intergovernmental arrangements, legislative arrangements and government/industry coordination, and

v.

the goals of any strengthening and expansion of Australia’s space capability both in the private sector and across government; and

c.

realistic policy options that facilitate effective solutions to cross-sector technological and organisational challenges, opportunity capture and development imperatives that align with national need and in consideration of existing world-class capability.

The Senate inquiry received eighty-eight submissions and held public hearings in Canberra on 16 May, 29 July and 23 September 2008; in Adelaide on 23 May and 22 June 2008; and in Sydney on 1 August 2008.

The Senate Standing Committee on Economics released its interim report on 23 June 2008. The interim report summarised what the Committee saw as the key questions that needed to be answered to assess in what ways, if any, the Government needs to act to optimise Australia’s capabilities in space science, industry and education; and their contribution to the nation.

The Senate Standing Committee on Economics released its final report on 12 November 2008. The report is called Lost in Space? Setting a new direction for Australia’s space science and industry sector. The six recommendations in the report’s final chapter ‘chart a course towards Australia regaining an important place in global space science and industry by gradually developing a dedicated space agency.’¹

Government Response

Recommendation 1

The committee recommends as a first step that the Government give the existing unit within the Department of Innovation, Industry, Science and Research more resources to enable the establishment of an Australian Government Space Information Website. This would provide information on government programmes and contacts, and links to Australian companies working in the space industry as well as Australian universities offering courses in space science and space engineering.

Response

The Government notes the recommendation.

The Government committed in the 2009-10 Budget $48.6 million to establish the Australian Space Science Program over four years.  The Program contains $40 million for the Australian Space Research Program and $8.6 million for a Space Policy Unit to coordinate and be the central point of contact for Australia’s national and international civil space activities.

The Department of Innovation, Industry, Science and Research has acquired the domain www.space.gov.au, and through this intends to improve the visibility of the Australian Government Space Portal, including information on the Australian Government’s space related activities and industry capability.

Recommendation 2

The committee notes that Australia is the only OECD country without a national space agency and, as a consequence is missing out on opportunities to engage in this important area of innovation and technology. The committee also notes the comments by the Chief Scientist and the conclusion of the Cutler Report in relation to the importance of the space industry for innovation within Australia. The committee recommends that immediate steps are taken to coordinate our space activities and reduce our over reliance on other countries in the area of space technology.

Response

The Government has established a Space Policy Unit in the Department of Innovation, Industry, Science and Research to coordinate and be the central point of contact for Australia’s national and international civil space activities.  The Space Policy Unit will liaise with Government agencies on space matters and serve as a focal point for the exchange of information and the development of new policy.  The Space Policy Unit will convene, on an as-required basis, a forum of national security agencies to assess security and intelligence aspects on civil space matters.  The Department of Defence will continue to have the lead on defence and military space related matters.

The Government is committed to improving Australia’s capacity to independently develop and utilise space technology.  In this regard, the Government is establishing an Australian Space Research Program to support space research, innovation and skills development in areas of national significance.  This program will be managed by the Space Policy Unit.

In its 2009 Defence White Paper, the Government has recognised the importance of being able to protect Australian space-based assets from counter-space technologies and from accidental damage caused by space debris. While the Government noted that we rely on the United States for much of our space advantage, the White Paper identified that we should also seek ways to develop our nascent but growing expertise in space capabilities, including by strengthening Australia’s space situational awareness and mission assurance capability, and developing a career stream for space specialists in the Australian Defence Force.

The Defence White Paper also places a high priority on assured access to high-quality space-based imagery to meet Defence’s needs for mapping, charting, navigation and targeting data. In addition, the Government announced its intention to improve Australia’s intelligence collection capabilities by acquiring a satellite with a remote sensing capability, most likely to be based on a high-resolution, cloud-penetrating, synthetic aperture radar.

The Government considers that Australia derives considerable benefit from arrangements with other countries and commercial bodies that facilitate access to space technology and the data derived from its applications.  Such arrangements will remain an important component of Australia’s space capability.  The Government notes that risk mitigation measures, such as treaty provisions embedding Australian personnel at foreign-owned space tracking stations, are in place to protect Australia’s interests in these arrangements.  The Government will continue to consider, as appropriate, opportunities to improve the efficacy of such arrangements. 

Recommendation 3

The committee notes the wealth of expert, well informed evidence received by the committee. Despite some deviations, the overwhelming majority of witnesses strongly supported the formation of a government unit to coordinate Australian space activities, including those in the private sector. The committee supports this conclusion and notes that there must be a proper balance between industry and government involvement.

Response

The Government notes the recommendation and has established a Space Policy Unit and is establishing an Australian Space Research Program, referred to in the response to Recommendation 2.  These initiatives will contribute to better coordination of civil space activities, including those in the private sector. The Space Policy Unit will consult as appropriate with key industry stakeholders and will secure private sector involvement in the Australian Space Research Program.

Recommendation 4

The committee notes the various models of space agency within the OECD and emerging economies and supports Australia having a space agency. The committee recommends initially establishing a Space Industry Advisory Council comprising industry representatives, government agencies, defence, and academics. The committee recommends that the advisory Council be chaired by the Minister for Innovation Industry Science and Research or his representative.

Response

The Government intends to establish a Space Industry Innovation Council. Membership will draw on the knowledge and expertise of innovation leaders from business, unions, science and research agencies, and government.

The Government will continue to hold the Australian Government Space Forum to facilitate confidential information sharing and coordination across government.

The Space Policy Unit will support the activities of the Space Industry Innovation Council and the Australian Government Space Forum to better coordinate civil space activities, including those in the private sector.

Recommendation 5

As a precursor to the establishment of the space agency the Advisory Council would:

Conduct an audit of Australia’s current space activities within six months of the establishment of the Council;

Analyse the strengths, weaknesses opportunities and threats to Australia’s emerging space industry;

Focus on the key “workhorse” space applications of Earth observation, satellite communications and navigation as the most practical and beneficial initial priorities;

Systematically evaluate the medium/long-term priorities for a space agency including the national benefit of defence related activities, Earth observation, environmental, land management, exploration, national disaster prevention and management, treaty monitoring, e-commerce and telemedicine;

Examine the benefits to Australia of improved international collaboration including membership of the international space groups;

Develop a draft strategic plan for the establishment of a space agency and the most appropriate form of that agency, including public/private funding, budget and staffing priorities; and

Identify critical performance areas such as research, technological development, development of the skill base, effective partnerships, delivery of new services, and financial management.

Response

The Government notes the recommendation and advises that a number of the recommended tasks will be progressed through the new initiatives dedicated to civil space activities.

The Space Industry Innovation Council, referred to in the response to Recommendation 4, will examine Australia’s current civil space activities, risks and strategic priorities with a focus on Earth observation, satellite communications and navigation.

The Space Industry Innovation Council will also consider relevant implications for space science and industry arising from the Defence White Paper and the National Security Science and Innovation Strategy.

The Australian Space Research Program will coordinate and support relevant Australian public and private research and development organisations, and will improve international collaboration by linking Australian organisations with appropriate international space research and education institutions and partners.

The Space Policy Unit will coordinate national policy making and international engagement on civil space issues, ensuring activities including the Australian Space Research Program and the Space Industry Innovation Council, are aligned to appropriate national policies and priorities.

Recommendation 6

The committee recommends that any Australian Space Agency reassess the case for Australia becoming more closely linked to an international space agency.

Response

The Government notes the recommendation.

The Government has established links to several international space agencies, including the National Aeronautics and Space Administration (NASA), the European Space Agency, and the Russian Federal Space Agency.  The Government’s relationships with these space agencies have been formalised by bilateral treaties.

Australian and United States agencies, including Airservices Australia and the Federal Aviation Administration, are cooperating on the civil use of the Global Positioning System (GPS) and space-based position, navigation and timing (PNT) systems and applications.

Australia, through Geoscience Australia and the Bureau of Meteorology, has cooperative arrangements for earth observation and weather data with key international bodies and foreign agencies, including those from the United States, Europe, Japan, China and India.

In Australia, the Australian Communications and Media Authority (ACMA) licences satellite communication links (up and down), and facilitates international satellite filings with the International Telecommunication Union.  The Department of Broadband, Communications and the Digital Economy (DBCDE) has primary responsibility for communication treaty matters, including those relating to satellite issues.

The Government will consider further arrangements for engaging with international space organisations following advice from the Space Industry Innovation Council and the Space Policy Unit and will continue to consider approaches to broader national and international coordination and engagement on space matters.

———

¹ Lost in Space? Setting a new direction for Australia’s space science and industry sector, report of the Senate Standing Committee on Economics inquiry into the current state of Australia’s space science and industry sector, Commonwealth of Australia, November 2008, page 1.

REPORT OF THE SENATE STANDING COMMITTEE ON ECONOMICS

MATTERS RELATING TO THE GAS EXPLOSION AT VARANUS ISLAND, WESTERN AUSTRALIA

GOVERNMENT RESPONSE

Introduction

The Australian Government welcomes the opportunity to respond to the report of the Senate Standing Committee on Economics entitled Matters relating to the gas explosion at Varanus Island, Western Australia.

The Government is committed to the provision of cleaner, adequate, reliable and affordable energy to meet future energy consumption needs and to underpin strong economic growth. It is vital that not only Western Australia, but the nation as a whole has access to secure supplies of energy, including gas.

Ensuring Australia’s energy security is a high priority for the Government and to this end the Government has undertaken a number of initiatives, including the development of a National Energy Security Assessment (NESA) and development of an Energy White Paper, which are part of a comprehensive strategy to meet Australia’s long-term energy needs.

On 26 March 2009, the Hon Martin Ferguson AM MP, Minister for Resources and Energy, released the NESA which identifies the key strategic energy security issues currently facing Australia’s liquid fuels, natural gas and electricity sectors, and those likely to influence energy security in 5 (2013), 10 (2018) and 15 (2023) years.

The Energy White Paper will include a review of the Government’s energy policies and the development of a policy framework through to 2030 to ensure cleaner, adequate, reliable and affordable supplies of energy to support the functioning of the economy and social development. In March 2009, the Government released the Energy White Paper’s Strategic Directions Paper which sets the scene for the development of the Energy White Paper by broadly mapping out its intended scope and identifying some of the specific work being undertaken.

The Government is also committed to ensuring that Australia’s offshore petroleum safety regulation is world’s best practice. On 9 January 2009, the Commonwealth and Western Australian Governments announced a joint independent inquiry into the effectiveness of regulation for upstream petroleum operations, with a focus on the 3 June 2008 gas pipeline rupture at the Apache Energy Ltd operated facilities on Varanus Island.

Following a successful Federal Court challenge by Apache Energy Ltd in May 2009, the Terms of Reference for the Inquiry were altered, with two reports prepared for the Commonwealth on better practice regulation and the role of the National Offshore Petroleum Safety Authority (NOPSA) and improving the interface between NOPSA and the Australian Maritime Safety Authority (AMSA).

The two Reports, Better practice and the effectiveness of NOPSA (the NOPSA Report) and Marine issues (the Marine Report), were provided to the Hon Martin Ferguson AM MP, the Minister for Resources and Energy in June 2009.  The Minister released the reports at the 9th meeting of the Ministerial Council on Mineral and Petroleum Resources on 9 July 2009. The two reports are available on the Department of Resources, Energy and Tourism website (www.ret.gov.au).

Recommendation 1

6.11 The Western Australian Government should convene a forum comprised of gas producers, suppliers, power companies, industry groups, media outlets and community representatives to discuss and develop a range of standardised emergency response measures in the event that another gas crisis is experienced in Western Australia.

6.12 The forum should examine initiatives, including but not limited to, providing increased transparency and improved communication during periods of disruption to gas supply. Improved communication from government to the community and industry groups to their members would assist in the dissemination of timely and relevant information to the public and industry throughout Western Australia. In addition an analysis of the feasibility of improved contingency planning by government and the market should be undertaken.

6.13 The forum should also discuss the operation of the Gas Supply Coordination Committee and the Gas Supply Disruption Recovery Committee and whether there are improvements that can be made to the operation of these committees if another gas crisis eventuates. An assessment should be made of the Office of Energy priority schedule for gas supply and, whether, in hindsight, any improvements or modifications should be made to the schedule.

Government Position:

The Australian Government notes recommendation one. The Government also notes that State and Territory governments have constitutional responsibility for planning and coordinating emergency responses within their jurisdictional boundaries.

The Government supports relevant stakeholders working together to ensure that Western Australia’s (WA) emergency response measures are efficient and consistent across the state and federal levels. The Government supports measures to improve transparency and communication between relevant stakeholders in a timely manner during periods of disruption to gas supply. A forum comprised of gas producers, suppliers, power companies, industry groups, media outlets and community representatives could be an appropriate way to discuss these issues.

Any review of WA’s emergency management arrangements should consider the emergency management arrangements in other jurisdictions, and take account of the current Ministerial Council of Energy’s review of arrangements for the management of emergencies in the national energy markets. At present, there are separate arrangements in place in the electricity and natural gas supply systems. However, with the creation of a single market operator, the Australian Energy Market Operator, and the convergence of the gas and electricity markets, it is an appropriate time to consider consistent national emergency management arrangements in the future.

Recommendation 2

6.14 The Western Australian Government should conduct an internal analysis of the effectiveness and appropriateness of the legislative framework to deal with periods of energy crisis in Western Australia. Issues such as the government’s capacity to invoke emergency powers in the public interest and the effectiveness of government intervention in a market-based industry should be analysed. In particular the response to emergencies under the Energy Coordination Act 1994 (WA) and the emergencies under the Emergency Management Act 2005 (WA) legislation should be assessed for their appropriateness following the experience of the Varanus Island gas explosion crisis.

Government Position:

The Australian Government notes recommendation two. The Government also notes that State and Territory governments have constitutional responsibility for planning and coordinating emergency responses within their jurisdictional boundaries. This includes the implementation of jurisdictional emergency powers under the Energy Coordination Act 1994 (WA) and the Emergency Management Act 2005 (WA).

The Energy Coordination Act 1994 (WA) is the legislative framework underpinning the planning and coordinating energy supply in WA. The Emergency Management Act 2005 (WA) provides for coordinated management of emergencies in Western Australia. It formalises WA’s ability to mitigate or prevent, prepare for, respond to and recover from incidents of a large scale or catastrophic nature.

Recommendation 3

6.15 The Western Australian Government should conduct, as soon as practicable, the review of gas security announced on 6 August 2008. The review should be conducted in coordination with the Commonwealth’s National Energy Security Assessment currently being conducted by the Commonwealth Department of Resources, Energy and Tourism.

Government position:

On 26 March 2009, the Hon Martin Ferguson AM MP, Minister for Resources and Energy, released the National Energy Security Assessment (NESA) which is an important milestone towards developing a comprehensive strategy to meet Australia’s long-term energy needs. The NESA provides a clear picture of the challenges affecting Australia’s energy security and highlights the opportunities that we may encounter in the future.

The NESA was developed by the Department of Resources, Energy and Tourism (RET) in consultation with industry, and Commonwealth, State and Territory government agencies. RET consulted with Western Australian (WA) Government officials and energy industry participants through formal consultation workshops conducted in Perth on 15 August 2008 which provided an opportunity for interested parties to raise their concerns about the WA gas market and other energy security issues.

The Australian Government notes that on 29 January 2009, the Hon Peter Collier MLC, WA Minister for Energy, announced a review to be undertaken by the Gas Supply and Emergency Management Committee, which will identify risks to WA’s supply of gas, including the amount of gas reserves available to the domestic market as well as processing and gas delivery. It will also examine ways to improve the management of energy emergencies.

The WA Office of Energy is conducting an assessment of WA’s gas security which will inform the review. The WA Office of Energy consulted with RET on a draft assessment report with the intention of ensuring that its assessment is consistent with the NESA.

Recommendation 4

6.16 To support increased competition and provide the community with improved information the Western Australian Government should establish a permanent gas bulletin board. Any permanent gas bulletin board should include the provision of information on pipeline capacity and flows to increase the transparency of the gas market in Western Australia. The committee also recommends that the state government explore options to provide the Office of Energy with powers to examine and publish transportation figures from the Dampier Bunbury Natural Gas Pipeline and the Goldfields Gas Pipeline.

6.17 The Western Australian Government should actively engage with the alternative energy industry in Western Australia in order to progress energy diversification through increased alternative energy capacity.

6.18 The Western Australian Government should also examine whether the current market-based approach to energy supply is providing sufficient information, openness and competition to Western Australian consumers.

Government Position:

The Australian Government supports the proposal for the Western Australian (WA) Government to establish a permanent gas bulletin board. The establishment of a permanent gas bulletin board would improve transparency and efficiency in the gas market in WA. It would also disseminate information that would help manage gas emergencies. 

The Government considers there would be benefit in WA joining the national gas market Bulletin Board and notes that the Bulletin Board can be expanded to cover non-interconnected pipeline systems operating in WA and the Northern Territory at an incremental cost.

The national gas market Bulletin Board (www.gasbb.com.au), which was launched in July 2008, is a website covering major gas production fields, storage facilities, demand centres and transmission pipelines in South Australia, Victoria, New South Wales, the Australian Capital Territory, Queensland and Tasmania.  It serves the purpose of providing transparent, real-time and independent information on the state of the gas market, system constraints and market opportunities and can also help the market respond to gas emergencies.  It will complement a new short-term trading market in gas, expected to start in 2010, which will improve price signals and be of particular advantage during systems constraints and emergencies.

The Government notes the recommendation for the WA Government to explore options to provide the Office of Energy with powers to examine and publish transportation figures from the WA pipelines. The publication of energy and resources statistics should be consistent with the appropriate management of commercial information and other sensitivities.

The Government recognises the role that alternative and renewable energy can play in Australia’s future energy mix, and has a variety of policies including the expansion of the national Renewable Energy Target which will ensure that 20 per cent of Australia’s electricity supply comes from renewable energy by 2020.

Recommendation 5

6.19 The Western Australian Government should commence discussions with energy suppliers on the need to balance the market approach with community and industry needs during a period of gas shortage. In particular, the need for improved transparency and accountability from the gas and energy industry during periods of crisis should be addressed. Given the perception of “price gouging” and unfair contracts it is in the interest of the industry and the government to examine increased transparency and accountability during periods of energy supply crisis.

Government position:

The Australian Government notes recommendation five. The Government supports transparency and accountability in the operation of energy markets. As mentioned in its response to recommendation four, the Government believes that the establishment of a permanent Gas Bulletin Board in Western Australia would improve transparency and accountability within the gas industry, particularly in times of supply constraints.

Recommendation 6

6.20 The committee received evidence from several contractors in the south west who were severely affected by the gas shortage. It was reported that Centrelink are limited in the assistance they can provide to independent contractors. The Department of Human Services should undertake an investigation of these concerns.

Government position:

The Department of Human Services (DHS) is responsible for coordinating improvements to policy on service delivery and reform across the Human Services agencies (including Centrelink) from a whole-of-government perspective. Centrelink is the Commonwealth’s Service Delivery Agency and it delivers services on behalf of relevant policy departments. Neither Centrelink, nor DHS, determine eligibility requirements for Centrelink payments and Centrelink cannot provide assistance contrary to established eligibility criteria set by policy departments such as the Department of Families Housing, Community Services and Indigenous Affairs and the Department of Employment, Education and Workplace Relations (DEEWR) and accompanied by relevant legislation.

In special circumstances the relevant Commonwealth policy agency may relax some of the normal arrangements for income support payments, but claimants wou

John Williams (NSW, National Party) Share this | Link to this | Hansard source

by leave—I move:

That the Senate take note of the documents.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.