17 Jun 1997 Estimates E—Mines and Energy 287 ESTIMATES COMMITTEE E resolved that it will automatically grant leave to any non-Committee member who wishes to question the Minister. Also in accordance with the Sessional Mr J. A. Elliott (Chair) Mr H. Palaszczuk Orders, each of the Ministers is permitted to make an Hon. T. McGrady Mr T. P. Radke opening statement of up to five minutes. Mr G. E. Malone Mr R. E. Schwarten The first item for consideration is the Estimates of expenditure for the portfolio of Minister for Mines and Energy. The time allotted is 2 hours and 40 DEPARTMENT OF MINES AND ENERGY minutes. I now declare the proposed expenditure for IN A TTENDANCE the Minister for Mines and Energy to be open for examination. The question before the Committee is: Hon. T. J. G. Gilmore, Minister for Mines and Energy "That the proposed expenditure be agreed to." Dr R. Day, Director-General Minister, would you like to make a brief introductory Mr M. Montefiore, Deputy Director-General statement or do you wish to proceed direct to Mr P. Chard, Manager, Finance and Property questioning? If you do wish to make a statement, the Committee asks you to limit that to five minutes. Ms K. Taylor, Principal Finance Officer Mr GILMORE: Yes, I would like to make an Mr P. Dent, A/Director, Safety and Health opening statement. Mr Chairman and members of the Division Estimates Committee, good morning and welcome. Mr S. Edwell, Director, Queensland Electricity Along with officers of my department, relevant Reform Unit Government owned corporations and the Queensland Electricity Reform Unit, I am ready to respond to questions regarding the 1997-98 budget. The Committee commenced at 8.30 a.m. Before doing so, I would like at the outset to briefly The CHAIRMAN: Ladies and gentlemen, I outline some of the more important features with declare the meeting of Estimates Committee E now respect to the budget. At last year's Estimates open. The Committee will examine the proposed Committee examination, I presided over a expenditure contained in the Appropriation Bill No. 2 department that had essentially lost its way. After six for the areas as set out in the Sessional Orders. The years of Labor administration it had been, organisational units will be examined in the following metaphorically speaking, reviewed to death. It was order: Minister for Mines and Energy, 8.30 a.m. to not properly focused on its core businesses; staff 11.20 a.m.; Minister for Primary Industries, Fisheries morale was at an all-time low; and a number of and Forestry, 11.30 a.m. to 3.10 p.m.; and Minister fundamental activities, rather than being funded from for Natural Resources, 3.30 p.m. to 6.30 p.m.. The base budget, were surviving in a hand-to-mouth Committee has also agreed that it will suspend the fashion on special funding. hearings for the following breaks: morning tea, 10.10 I am pleased to say that since then, following a a.m. to 10.20 a.m.; lunch, 12.30 p.m. to 1.30 p.m.; and thorough and rigorous audit of the department's afternoon tea, 5.10 p.m. to 5.30 p.m. activities, we now have a department better focused I remind members of the Committee and the on its core businesses of facilitating and regulating Ministers that the time limit for questions is one the mining and energy industry in Queensland. Just minute and answers are to be no longer than three as important, vital activities covering native title and minutes. A single chime will give a 15 second environmental compliance matters have in this warning, and a double chime will sound at the budget for the first time been included as part of that expiration of these time limits. The questioner may base funding. Much has been achieved as a result of consent to an extension of time for answers. A last year's budget. Our commitment to the Moura double chime will also sound two minutes after an implementation process has been pursued without extension of time has been given. Three chimes will deviation. Almost all of the Moura recommendations ring at the conclusion of each 20-minute block. The have now been implemented, including the review of Sessional Orders require that at least half the time the inspectorate and the trialling of inertisation available for questions and answers in respect of equipment for underground coal mines. each organisational unit be allotted to non- The recent amalgamation of the coal and Government members and that any time expended metalliferous inspectorates into a single and when the Committee deliberates in private is to be significantly enlarged and resourced Queensland equally apportioned between Government and non- Mines Inspectorate is a major step towards a safer Government members. The Committee has agreed mining environment. True to its word, the that the first 20 minutes of questions will be from Government has provided the required additional non-Government members. money in this budget to fund the bigger and better I ask departmental witnesses to identify inspectorate. In a wide range of activities during themselves before they answer a question so that 1996-97 the department continued to make progress. Hansard can record that information in the transcript. Environmental rehabilitation was completed at In accordance with the Sessional Orders dated 4 Agricola and at Irvinebank. Shaft capping continued June 1997, a member who is not a Committee at Gympie and commenced at Charters Towers. member may, with the Committee's leave, ask a Significant progress was made in reconciling the Minister questions. In this regard the Committee has competing interests of parties who are operating 288 Estimates E—Mines and Energy 17 Jun 1997 under both the Mineral Resources and Petroleum operational. In the meantime, we will have an interim Acts and who are seeking to extract coal seam competitive market in place by the end of this year, methane. In terms of reconciling the legitimate and the first contestable customers will be on line by interests of land-holders and coalminers, a 1 January 1998. This aggregation of AUSTA Electric consultative process involving all of the interested into three separate independent power producers on parties has been moving steadily towards a mutually 1 July will introduce real competition into the satisfactory outcome. Queensland market and, at the same, help prepare our generators for the full effects of the national One of the aims of this Government is to help market in 2001. These and other developments in the Queensland prepare for the challenges and to take electricity industry in the next year will help make our advantage of the opportunities for growth and once great electricity industry again the most prosperity in the 21st century. I am absolutely competent in the country. convinced that we can do this only if we have abundant supplies of competitively priced gas and We have, I believe, provided a very good electricity. Accordingly, the Government is pursuing budget. I now invite members to address questions courses of action in both the gas and electricity to me. Those requiring detail which I cannot provide industries which will help underpin industrial and will be referred to departmental, GOC or QERU staff. commercial development on a scale that Queensland The CHAIRMAN: I will now invite the could only dream of in the past. Opposition to start questions. The Queensland Government is committed to a Mr McGRADY: I refer to the changes in policy of promoting gas on gas and pipeline on salaries for the inspectorate, particularly those in the pipeline competition. Following the recent opening coal side of the industry, and I refer to the district of the Ballera to Wallumbilla gas pipeline, workers' representatives. There were some construction has started on the Ballera to Mount Isa discussions regarding them coming under an award. pipeline which is due for completion in the first half Could you tell the Committee if anything has been of 1998. The planned expansion of the Barcaldine to done about placing those employees under an award Gilmore pipeline through to Cheepie will link the and, if so, when you propose to offer increases in power station at Barcaldine to the Ballera to salaries to those four officers? Wallumbilla pipeline. Gas supplies to the east coast Mr GILMORE: There are a couple of aspects will be enhanced by the Gatton to Gympie pipeline to this question. The first one is that, in respect of and a proposed pipeline from the PGT Queensland the district workers inspectorate, I have no pipeline at Injune to Brisbane. A pipeline from information to hand in respect of that, because it is Gladstone to Bundaberg is also planned with the just not covered in the brief. So we will take it on feasibility of an extension to Maryborough and notice, and I will get you an answer within the Hervey Bay currently under investigation. The most requisite three days. However, I would like to say significant proposal, however, is a development something at this time about the inspectorate and the linking the gas fields of the highlands of Papua New expansion of the inspectorate, particularly in relation Guinea to north Queensland and to central to the increased wages and better conditions that Queensland. This development would provide a the inspectorate now has in hand. tremendous economic boost to both of these regions. As a result of the Moura inquiry, of course, we discovered that the inspectorate in Queensland was The recent report of the Queensland Gas underpaid and underresourced and, quite clearly, did Industry Task Force, comprising 10 major not have sufficiently good conditions to attract international and national companies, found that people from around the country and, indeed, given the right conditions a sixfold increase in the possibly internationally.