COMMONWEALTH OF AUSTRALIA PARLIAMENTARY DEBATES

SENATE Official Hansard

MONDAY, 26 MAY 1997

THIRTY-EIGHTH PARLIAMENT FIRST SESSION—FOURTH PERIOD

BY AUTHORITY OF THE SENATE CANBERRA CONTENTS

MONDAY, 26 MAY

Representation of Western Australia ...... 3519 Senators: Swearing In ...... 3519 Representation of Victoria ...... 3519 AIDC Sale Bill 1997— Second Reading ...... 3519 In Committee ...... 3528 Third Reading ...... 3535 Questions Without Notice— Media Ownership ...... 3535 Economy ...... 3536 Wallis Inquiry ...... 3537 Interest Rates ...... 3537 Social Security: Income Stream Products ...... 3538 Aboriginal Reconciliation ...... 3539 Public Service: Wage Levels ...... 3539 OECD: Multilateral Agreement on Investment ...... 3540 Public Servants: Authorisation of Expenditure ...... 3541 Youth Unemployment ...... 3542 Mr David Oldfield ...... 3543 Distinguished Visitors ...... 3544 Questions Without Notice— Small Business ...... 3544 Taxation ...... 3545 Australian Broadcasting Corporation ...... 3545 Minister for Transport and Regional Development ...... 3546 Lake Eyre Basin ...... 3548 Answers to Questions On Notice— Question No. 482 ...... 3549 Answers to Questions Without Notice— Minister for Transport and Regional Development ...... 3549 Condolences— Sir William John Aston KCMG ...... 3556 Petitions— Australian Broadcasting Corporation ...... 3558 Radio Triple J ...... 3558 Housing ...... 3558 Repatriation Benefits ...... 3558 Repatriation Benefits ...... 3559 Notices of Motion— Aboriginal and Torres Strait Islander Affairs ...... 3559 Aboriginal and Torres Strait Islander Affairs ...... 3560 Landmines ...... 3561 Logging and Woodchipping ...... 3561 Energy Research and Development Corporation ...... 3561 Scrutiny of Bills Committee ...... 3561 Consideration of Appropriation Bills by Legislation Committee ..... 3561 Legal and Constitutional References Committee ...... 3562 Days and Hours of Meeting ...... 3562 Papua New Guinea ...... 3562 Nigeria: Ogoni People ...... 3562 Hazardous Waste ...... 3563 Foreign Affairs, Defence and Trade Legislation Committee ...... 3563 Legal and Constitutional Legislation Committee ...... 3563 Higher Education Council Report ...... 3563 Iran: Baha’i Faith and Human Rights ...... 3563 Logging in Indonesia ...... 3564 Sri Lanka ...... 3564 Committees— CONTENTS—continued

Economics Legislation Committee—Extension of Time ...... 3565 Order of Business— Rural and Regional Affairs and Transport References Committee .... 3565 Workplace Relations Regulations ...... 3565 Public Interest Secrecy Committee ...... 3565 Finance and Public Administration References Committee ...... 3565 Corporations and Securities Committee ...... 3565 Qantas ...... 3565 Logging in Malaysia ...... 3565 Logging and Woodchipping ...... 3565 Customs Tariff Amendment Bill (No. 2) 1997— First Reading ...... 3566 Second Reading ...... 3566 Logging and Woodchipping ...... 3567 Committees— Superannuation Committee—Meeting ...... 3567 Documents— Department of the Senate ...... 3567 Assent to Laws ...... 3567 Committees— Electoral Matters Committee—Membership ...... 3568 International Tax Agreements Amendment Bill (No. 1) 1997, Crimes Amendment (Forensic Procedures) Bill 1997, Constitutional Convention (Election) Bill 1997— First Reading ...... 3568 Second Reading ...... 3568 Hazardous Waste ...... 3572 Order of Business— Rearrangement of Business ...... 3577 Customs and Excise Legislation Amendment Bill (No. 2) 1996 (No. 2)— Second Reading ...... 3577 Documents— Separation of Aboriginal and Torres Strait Islander Children from their Families ...... 3586 Customs and Excise Legislation Amendment Bill (No. 2) 1996 (No. 2)— Second Reading ...... 3586 Hearing Services Administration Bill 1997, Hearing Services and AGHS Reform Bill 1997— Second Reading ...... 3601 In Committee ...... 3613 Adjournment— Job Losses in Canberra ...... 3618 ACT Brumbies ...... 3618 Protection of Privacy ...... 3620 Kurwongbah By-Election ...... 3622 Brisbane Strikers ...... 3622 Queensland: Document Archiving ...... 3623 Documents— Tabling ...... 3624 Questions On Notice— Consumer Representatives—(Question No. 557) ...... 3626 Energy Research and Development Corporation Grants—(Question No. 558) ...... 3627 SENATE P3519

Monday, 26 May 1997 staff—although our concerns in this area have, to some extent, been alleviated. The AIDC was established in 1970 as an The PRESIDENT (Senator the Hon. investment bank to finance Australian indus- Margaret Reid) took the chair at 12.30 p.m., try. Its role, when established, was essentially and read prayers. to fill a gap that was not then adequately covered by the banking sector and other REPRESENTATION OF WESTERN financial lenders. It, essentially, was estab- AUSTRALIA lished to cover cases where the development The PRESIDENT—I inform the Senate would not otherwise have taken place or that I have received, through the Governor- would have been possible only in circum- General, from the Governor of Western stances—unless local finance was available— Australia, a facsimile copy of the certificate that involved ownership of control going to of the choice of the houses of the Western foreign investors. Australian parliament of Philip Ross Lightfoot Over the years, the AIDC has pioneered to fill the vacancy caused by the death of infrastructure financing and it has a unique Senator John Panizza. I table the document. capability to turn public policy into reality through reacting as a policy lever for national SENATORS: SWEARING IN development. It developed widely recognised Senator Philip Ross Lightfoot made and project resource and infrastructure financing subscribed the oath of allegiance. expertise. Two of the many significant exam- ples of developments which occurred with REPRESENTATION OF VICTORIA AIDC financing include the Woodside North The PRESIDENT—I inform the Senate West Shelf gas project, which involved that I have received, through the Governor- $US1.6 billion of financing, and the Argyle General, from the Governor of Victoria the Diamond project, where the AIDC was the certificate received by the Governor-General only Australian financier. There would have of the choice of the houses of the Victorian been no Australian equity in it but for the parliament of Senator Karen Margaret Synon AIDC. The Eraring Power Station project was to fill the vacancy caused by the resignation also financed through the AIDC, as was the of Senator the Hon. Jim Short. I table the nucleus telectronics pacemaker, which AIDC certificate. underwrote the initial financing of. In addition to all of those very worthwhile and significant AIDC SALE BILL 1997 infrastructure investments, the AIDC has contributed some $130 million in dividend Second Reading payments to the Commonwealth since 1983. Debate resumed from 20 March, on motion Overall, the AIDC has performed well. It by Senator Hill: did make a loss in 1991, but most banks That this bill be now read a second time. reported major losses in that period. But it did Senator SHERRY (Tasmania—Deputy not, through its difficult period, need to draw Leader of the Opposition in the Senate) on the government guarantee. The loss occur- (12.35 p.m.)—The AIDC Sale Bill 1997 was red largely because in the mid- to late 1980s introduced into the House of Representatives the AIDC had moved away from its core on 22 February and makes the legislative business of infrastructure and resources. We, amendments to enable the sale of the Austral- as a Labor Party, believe that there is still a ian Industry Development Corporation, known need for activity in this area. as the AIDC. Labor will not oppose the bill, The AIDC currently employs some 200 despite having concerns with the legislation people. The Labor Party does not want to see as it relates to the AIDC shareholding in the overly generous golden handshakes or, in the Australian Submarine Corporation and with case of some, golden handshakes going to the the employment terms and conditions of the AIDC’s senior management. Apart from that P3520 SENATE Monday, 26 May 1997 group, we are concerned that the ordinary But there still remains a significant gap in workers in the organisation not be disadvan- the market; the AIDC is no longer specifically taged by the sale. I note that concerns were focused towards filling that gap. The govern- expressed about this during the Senate com- ment is doing nothing to fill this gap because mittee hearings. Labor is pleased that assuran- it does not believe that it has a role in the ces have now been given that the existing area. Worse, it is cutting away all of the terms and conditions of employment for these existing support mechanisms: the DIFF workers will be maintained. scheme, the R&D tax concessions, the bount- ies, Austrade and AusIndustry to name a few, The AIDC is one of two Australian con- with a total of $3.9 billion cut out of the last trolled and independent investment houses. budget. The export market development grant There is a real chance that, through this sale, scheme is another. it could be purchased by overseas interests, particularly as there are no special provisions This year the axe looks set to fall further on in the bill to deal with foreign ownership. the Australian motor vehicle industry. We Labor notes the assurances of the Assistant could see its demise if the government adopts Treasurer, Senator Kemp, that, if the buyer is the majority recommendations of the Produc- overseas owned, the AIDC’s 48½ per cent tivity Commission. Pharmaceuticals, informa- holding in the Australian Submarine Corpora- tion technology, textiles, clothing and foot- tion could be excluded from the sale. We wear and, once again, research and develop- welcome that assurance but believe we need ment concessions have all been under the to legislate to ensure that assurance is main- microscope. Labor strongly opposes the huge tained. That is the purpose of the amendment cost cutting exercise that Treasury and this I will be moving when we consider the detail government have been involved in in wanting of this bill. We will essentially be moving to zap industry and literally wipe out many of that the Australian Submarine Corporation these industry sectors. We see a real need for component be removed from AIDC Ltd and government involvement and a real role for located within the corporation, which is to government involvement in these areas. stay in place under this legislative arrange- I certainly hope—although I am not terribly ment to manage the borrowings and loan sure this hope will be realised—that some on portfolio and to manage such national interest the back bench opposite understand the assets as the Commonwealth’s Australian destruction that the Treasurer, Mr Peter Submarine Corporation shareholding. Costello, is creating in terms of our manufac- turing base. It is about time they backed the Essentially, the AIDC will remain in exist- manufacturing industry in this country. ence. It needs to manage certain activities. We are saying that this is where the Australian On Monday 17 March, Labor sought exam- Submarine Corporation shareholding should ination of the issue through the Senate Fi- be parked to ensure the guarantee, the assur- nance and Public Administration Legislation ance, that was given by Senator Kemp. It will Committee. It was a process which yielded also ensure that the AIDC as well as the some useful information, including the fact Australian Submarine Corporation do not that legislation had been drafted without become foreign controlled. reference to the AIDC board. This is a great government for consultation. It said, ‘We are Labor recognises that, to some extent, the going to wipe you out, board members, but AIDC has moved from its original charter and we will not tell you about it. We will keep it that the need for capital private sector invest- secret and we will drop it on you in the ment in major infrastructure projects, while parliament. You can read about it in the just as significant, now needs to be addressed newspapers.’ It was only through the hearings in different ways. The AIDC itself has con- we had in the Senate that the board was able firmed that there is no function that it now to flag three problems that they had with the performs which cannot be carried out equally legislation. This is a hallmark of this govern- as well by the private sector. ment: it announces particular legislation, it Monday, 26 May 1997 SENATE P3521 consults afterwards and then it does not listen Senator MURRAY (Western Australia) as a consequence of that consultation. We (12.45 p.m.)—The AIDC was established by have seen many examples of that in the the Gorton Liberal government in 1970, Senate over the past year. nearly 30 years ago. It was a marvellous Unless Labor had actually gone through the initiative, established by a great Australian accountability exercise in the Senate commit- nationalist who believed that the resources tee we would not have known about this. The and ingenuity of Australians should result in government would not have sought to ask an increase in the national income of Austral- them about these difficulties. These difficul- ians rather than that of foreign investors. ties should have been sorted out well before Hence the AIDC was set up to help finance the legislation was tabled. It does reflect the the development of new Australian industries undue haste with which the government seems and businesses. It was a great initiative in to continually introduce legislation, as well as 1970 and, as the government’s proposition of its inability to manage the process of govern- a venture capital fund shows, it still serves a ment. great need. Labor has a second reading amendment Since financial deregulation in 1983 a with regard to this legislation. I move: whole range of merchant banks have been At the end of the motion, add: established and have thrived to the extent that "whilst recognising that there were difficulties it seems that any corporate raider can now associated with the way the Australian Industry obtain finance if they want it. The AIDC was Development Corporation (AIDC) had moved acquired by the previous Labor government from its original charter, the Senate nevertheless: to compete with them and in recent years has (a) reaffirms its commitment to the principles operated basically as a merchant bank rather underpinning the AIDC’s creation; than as a tool of national economic develop- (b) condemns the Government for not putting a ment policy. Many of its current problems structure in place which addresses the must be laid at the door of the previous failure of Australia’s capital markets to government. Yet the original argument for provide sufficient long-term, patient funds setting up the AIDC is even stronger now for industry development; and than it ever was. In 1996, Australia’s net (c) calls on the Government to establish an foreign liabilities, that is debt and equity, effective means of supporting patient capital constituted 60 per cent of gross domestic investment and to determine remedial product, up from 42 per cent of GDP a strategies appropriate to today’s environ- ment". decade ago and 20 per cent a decade before that. I would indicate to the Senate that, in addition to that second reading amendment, in the In the last decade, net foreign equity invest- consideration in detail stage of committee we ment in Australia has more than doubled, will seek to move amendments to require that from 9.5 to 20 per cent of GDP. Income the Submarine Corporation’s shares be parked payable on those investments, on debt and in the AIDC. The purpose is to ensure that equity, constitutes virtually all of our $20 the Submarine Corporation and the activities billion annual current account deficit. No that spin off from it, which have seen enor- other OECD country has a current account mous leverage given to the defence systems deficit problem comparable to Australia’s, and heavy engineering capacity of this coun- stemming from the failure to finance our own try and the critical mass that it established investments domestically. Indeed, it is quite and which would have not been backed by clear that there is a continuing need for a the Australian financiers but for the AIDC, national investment bank with the objective of are kept. They are to be kept properly through raising our national income and our economic the corporation’s structure and ensure that it independence. An AIDC committed to the is does not come under foreign control. I will national interest would fulfil this role. But the seek the opportunity to address those details AIDC as it is presently structured cannot. It in the committee stage. is just a merchant bank, a merchant bank P3522 SENATE Monday, 26 May 1997 trading off its government guarantee to to let the government bill go through with our borrow cheap and lend dear. That is hardly support, subject to an amendment which we the sort of business that a government instru- will be putting to clear up some of the areas mentality should be in, and we would like to where there are problems. Those I will ad- see it return to its original charter. dress during the committee stage. For a while the AIDC seemed to become a Senator MARGETTS (Western Australia) law unto itself. The accountability regime (12.50 p.m.)—The sale of the AIDC has been established by the previous government on the cards for some time. We will not simply did not work. Former AIDC exec- oppose this measure, in spite of our general utives awarded themselves huge wage rises. view that the public sector representing the In 1995, four AIDC executives had packages public interest has a place in direct market of over $1 million. Another six were paid activity and indeed to retain control through over $700,000, well above the market rate public monopoly critical sectors of the econ- even for moderately successful merchant omy. The reason we do not oppose the sale is bankers. All of this was done, often with the that AIDC has not, in our opinion, done much government appointed member of the board of anything to actually stimulate industry. excluded from board meetings or prevented Various specific sectoral industry policies from reporting back to government what was have been much more important. In fact, the going on, even though such payments serious- AIDC has been used to stimulate some quite ly affected the AIDC dividend to government. dubious sectors of the economy, for example I note with approval that AIDC salaries have the defence industries and defence trade, in since been substantially reduced. what amounts to subsidies for those indus- The Democrats believe that the Australian tries. Industry Development Corporation should The AIDC is, as honourable senators prob- remain in public ownership. But we believe ably know, the minority shareholder in Aus- that its subsidiary, the AIDC Ltd, the corpo- tralian Submarine Corporation. About one- rate subsidiary, should be sold or wound up eighth of AIDC’s capital is tied to the Aus- and its assets transferred back to AIDC the tralian Submarine Corporation, giving it 49 corporation, or there should be a combination per cent shareholding, enough to give of both sale of AIDC Ltd and assets transfer. Kockums, the Swedish submarine company, The corporation should be then given a clear which is the other direct partner in AIDC, national interest agenda, with a particular controlling interest without expending a cent focus on small business development, industry more than is required. So AIDC is doing great development and regional development and things in terms of benefiting submarine then set out to fill the holes in our financial manufacturing here and corporate profits in sector and the provision of cheap and acces- Sweden. sible finance. Of the $100 million invested in companies This bill does not achieve that. It does not not wholly owned, about $26 million or one attempt to achieve that. It merely allows quarter is with Australian Submarine Corpora- AIDC Ltd to be sold. As a trade sale it is tion and $20 million each with Textile Indus- likely to be to another merchant bank or a tries Australia and Venture Stores Ltd, respec- foreign bank. That will hardly deepen or tively a textile manufacturer and a chain of broaden our financial sector. It will not retail stores. About $10 million is with appli- address the problems that I have outlined and ance manufacturer Kambrook and other minor which were also outlined by Labor earlier. It amounts are with other manufacturers. will certainly do nothing to improve our I personally do not see how we are greatly economic independence. benefiting industry development in Australia Despite the fact that many of the problems with this sort of investment profile. We are that the AIDC experiences can be laid at benefiting indefensible defence policy for Labor’s door, we will be supporting Labor’s subsidising defence industries. We are benefit- second reading amendment. But we do intend ing Kambrook a little and the manchester Monday, 26 May 1997 SENATE P3523 industry, which would potentially help electri- consumer of manufactured products of all cal goods manufacturing and textile produc- sorts, including, ironically, various kinds of tion, but I am not sure who we are meant to foodstuffs. be benefiting in investing in Venture Stores, A lot of noise has been made in this parlia- a retail chain. It does not seem to me that ment and academia about the wonders of the there is a shortage of retail stores or that Asian economies. It is time we took a real industry will grow as a result of such invest- look at what they did. They did not grow by ment. lowering all barriers to imports and foreign I note that AIDC divested its investment in investment. They did not grow by severing Berrivale Orchards a few years ago. I think it government involvement in the market and was at about the same time fruit juice manu- ‘allowing the market the freedom to develop facturers were complaining about the impact and thrive’. They kept shelters whilst stimu- of the World Trade Organisation bills on the lating their own development through strong, Australian fruit juice industry generally and directed investment policies and through the citrus industry specifically. Perhaps that direct support for what they considered key was a bit embarrassing. At least some of the industries. They did not simply accept the investments in wholly owned companies, wisdom of corporate heads and major Western about $200 million worth, have also been of economies. They did not allow themselves to questionable benefit in terms of industry be producers of cheap labour products and policy. Investment includes items like Interna- primary produce, and consumers of their ex- tional Parking (Liverpool) Pty Ltd and the imperial masters’ manufactured goods. China Water Company (Hacaing) Ltd. Also, Asian governments actively promoted and a lot of investments are in bonds and other developed manufacturing, secondary industry, speculative areas. particularly in the areas of import replacement As a business, AIDC has not done badly. It and value adding. They adopted the highest has returned profit to the Commonwealth. Our technological means of production available, objection previously was based on an objec- produced at the highest technological level tion of the AIDC itself that the mechanism for that their infrastructure could support and sale would devalue the company and the actively sought to increase the level of their problems associated with the repurchase of infrastructure. This is why China is now stock issued on the basis that AIDC would producing televisions, electronic goods and, not be sold. At this point, however, AIDC increasingly, computer hardware and software. seems to feel content with the sale plan. So This is why countries like Taiwan have there is no real objection to its going ahead. virtually turned away from low labour cost In the absence of any clear national interest goods. They do not want their position to be agenda, I would like to point out, though, dependent on the poverty of their people. where in our opinion AIDC has, through They have aspirations for more than that and government policy changes, missed the mark. as a nation they have been willing to act, AIDC was established as a vehicle for invest- through government, to pursue such goals. ment in the pursuit of industry policy. I Here in Australia we seem to have the believe the pursuit of industry policy is still opposite aspiration. Government seems to be a valid goal. I would love to see this govern- determined to impoverish people and ensure ment make a commitment to industry devel- that a low wage regime will come into play. opment—particularly the development of a That is why they do nothing about employ- manufacturing sector in Australia. We badly ment, why there is no investment policy, why need value added industry, and it is clear that there is no industry policy and why they are the corporate boardrooms globally do not dismantling industrial relations law as a currently see Australia as a source of manu- mechanism to protect workers and turning it factured goods. The global corporate map has into a mechanism to ensure their exploitation. Australia pencilled in as a provider of cheap This is why they are dismantling the social minerals, wheat, wool and woodchip, and a support structure under the guise of economic P3524 SENATE Monday, 26 May 1997 necessity. This is why we see a work for the overwork, insecurity, and breakdown of dole scheme and a move to user-pays and familial and social relationships. We absolute- lower taxes. ly do not need divisive policies that pit parts This government is here for the corpora- of our community against others, against tions and the rich. It is involved in major Aboriginals or migrants—yet that seems to be redistribution of wealth—upwards, from the the direction this government has chosen. mouths of workers and those struggling The term ‘sustainable development’, almost outside the work force. And make no mistake: since its coining, has been raised whenever if there is any area of waste, it lies in the people call for protection of nature. It is time corporate excesses for the upper management. to call for the protection of nature and for It lies in the lives of the wealthy in Australia. social welfare to be considered whenever we No, this government is selling Australia talk about development. I believe the funds down the river. Its idea of development is to from this sale should be used in this fashion. mine uranium in a world heritage area. Its I will not be holding my breath. Nevertheless, idea of development is to give a green light we will be supporting this bill. to loggers to decimate the few remaining pockets of old-growth forest to turn it into Senator McGAURAN (Victoria) (12.59 woodchips. It would not even rate for being p.m.)—The purpose of the AIDC Sale Bill is turned into disposable chopsticks; it will be to privatise the Australian Industry Develop- ground into little pieces. This government is ment Corporation Ltd, the AIDC, in line with determined to turn wealth into dross. other government announcements with regard to asset sales—namely, the airports and ANL, The government’s only excuse is the so- the Australian National Line—which will reap called international free market. Attitude is billions of dollars for budget repair. I know not policy, despite what they say on soft drink the other speakers in essence are supporting commercials. What we need for effective this bill, but they were giving false sentiment development is a commitment to doing what to the AIDC as it is about to be auctioned off. we need to do to create a world we all wish It is always a sentiment you can give and to live in—a radical concept—one where no- have the luxury of when in opposition. one is in great economic hardship and one that supports community and supports life I would have to say that particularly the with a capital ‘L’, the beauty of our natural Australian Democrat speaker gave the best heritage and the integrity of an ecosystem that case of exactly why it should be sold, and makes all our lives possible. that is that it is no longer acting in its original We need positive industry and investment role. Its lending is now no longer at favour- policy, but we need more than that. We need able rates—they are indeed at market rates— policies of vision, policies that include the and therefore its profits are very slim indeed. future, where development gives more than Without the government guarantee, it can be incidental thought to the long-term state of said that it would be making massive losses. the earth and our local environment. We need So the government guarantee is all that is policies for the development of technologies holding up this particular organisation. that have positive physical and social effects, Added to that was the great credibility loss policies that take an integrated approach to of this organisation when it increased exec- the future, policies that include at all levels utive salaries to the tune of a million dollars. the need to address issues like the greenhouse This is just a relatively small merchant bank effect—remember that?—and the ultimate and the executives—they were given this pay well-being of our water and land. rise under the previous government, of We also need socially oriented develop- course—were paying themselves an amount ment. We need development that will create equivalent to that earned by Don Argus or a more equitable and diverse society; policies Don Mercer from the National Australia Bank that create full employment under benign and the ANZ Bank. So I feel that the organi- conditions—not policies that encourage sation lost a great deal of credibility and the Monday, 26 May 1997 SENATE P3525 right to any sentiment that it may get from the imagined the deregulated economy that we opposition. have today, the deregulated financial sector But it is worth looking at the organisation’s and all the options now open to Australian history from whence it began because it is in business. I think he would have understood, fact entrenched in National Party history, would have accepted and would have wanted Senator Sherry, which you fail to give due the sale of the AIDC. The fact is that it has credit to. The library digest gives us the run its course. It no longer the relevancy or source. The AIDC was established in 1970 usefulness that it did have—and it certainly and it was mainly the initiative of the Rt Hon. did have—at its establishment. John ‘Black Jack’ McEwen, who was then Its sale now very much fits this coalition minister for trade and industry. government’s privatisation program and debt Senator Sherry—Who is the current Black reduction strategy. The sale is generally Jack? supported by the opposition. However, the Senator McGAURAN—Senator Sherry, Senate Finance and Public Administration you interject in relation to ‘Black Jack’ Legislation Committee reports that there was McEwen. The trade portfolio has been held some discussion with regard to the disposal of by the National Party since time immemorial the AIDC interest in the Australian Submarine and it is still held in this coalition government Corporation Pty Ltd, of which the AIDC by the Leader of the National Party and holds some 48.5 per cent. That is a genuine Deputy Prime Minister, Tim Fischer, who is concern and not inappropriate, but it is one overseas at this very moment progressing that has been understood by this government Australia’s position. The then minister for and has been dealt with. I quote the Assistant trade, Jack McEwen, saw the need to counter Treasurer (Senator Kemp): Australia’s growing dependence on foreign . . . it is not the government’s intention and, capital to support its enterprises and indus- clearly, if there was a potential problem in that area, (the Commonwealth’s shareholding in ASC) tries. At a time of its creation in 1970, the would be pulled out of the sale. AIDC was the only merchant bank in the country. It was set up as a state owned Just to restate that: there is a proper concern merchant bank to provide capital in mining, that, when the AIDC is sold, inappropriate manufacturing, processing and resource foreign investors may take up the AIDC’s 48 development sectors. per cent share of the submarine corporation. But, as that quote says, the government is McEwen was not opposed to foreign invest- aware of this and would not allow inappropri- ment per se and in fact he acknowledged the ate foreign ownership of that particular corpo- importance of the availability of such capital ration. Therefore, this bill enables the to Australia, as it is today. The AIDC was Minister for Finance to remove any asset from created to fill a gap then not adequately AIDC Ltd and invest it elsewhere. So we covered by the banking sector and other have that open option, Senator Margetts. It is financial lenders. It assisted Australian resi- important to note that, with the sale of the dents to match the share capital required to AIDC, any government asset and funds create or maintain large enterprises so as to received will go towards government debt avoid too often becoming the minor party in reduction. This is in stark contrast to the an enterprise which was the target of foreign privatisation program of the previous Labor investment or a takeover. government, which wasted billions of dollars Since its origins, the Australian financial of asset sales in recurrent expenditure. sector has grown to an extent where there is a multitude of merchant banks and financial Senator Sherry—What have you done with institutions accommodating particularly the Telstra? sectors that the AIDC was particularly inter- Senator McGAURAN—Senator Sherry, I ested in or targeted, and they were the mining honestly do not know why half the time you and manufacturing sectors. I doubt whether bother to interject. You are way over there the Rt Hon. Black Jack McEwen would have and I am way over here. Just let me progress P3526 SENATE Monday, 26 May 1997 through this speech. It is really not worth on the previous government. So politics interjecting, given that I am so far over here prevented the sale in the national interest on on the back bench and you are way over there that occasion. on the front bench. Why don’t you just hold The point to be made here is that this your tongue? Save your energies for question government has a clear, transparent and time or something a little more appropriate for determined policy towards privatisation. It is one of the heavyweights over there. Just let based on the criteria of producing competitive me get on with my speech in the backblocks benefits for the economy—for example, the here of cocky’s corner. Telstra sale, which will produce an efficient The point I was trying to make was the company and has allowed new entrants into stark difference between this government’s the telecommunications field—and, of course, asset reduction program and the previous the government will use its sales to reduce the government’s. The previous government just long-term debts which we now face. frittered away on spurious causes the billions Senator CAMPBELL (Western Australia— of dollars that were raised through asset sales. Parliamentary Secretary to the Treasurer) This was a negligent approach to this (1.10 p.m.)—In summing up the second country’s valuable assets. Look at their reading debate, firstly I thank honourable record. Not only was the sale of the AIDC senators who contributed. It is important that botched when it was first announced in about the government put its view in relation to the 1990 and is only now coming to fruition in pious second reading amendment moved by 1997, but what of the sale of Qantas? the Australian Labor Party. The government On four different occasions the Qantas sale will be opposing the amendment, you will not appeared in the previous government’s budget be surprised to learn. We believe that it is as a deficit reduction item which never even- vaguely hypocritical coming from the Austral- tuated. Not only was this very disruptive to ian Labor Party who, indeed, sought unsuc- Qantas operations and a dishonest approach cessfully to sell the AIDC over a period of to budget reporting but its eventual sale in time. I have taken an interest in privatisation 1994, which reaped billions of dollars, was issues since I arrived in this place. When the spent to no long-term advantage of finances. Australian Labor Party finally decided that In fact, we know in the Keating government’s ‘privatisation’ was not a dirty word, they did term that government debt jumped from $30 seek to sell the AIDC. billion to $100 billion. In many of the budgets over the past four Then there was the dishonest sale of the or five years of the Labor Party’s final period Commonwealth Bank. Time does not permit in government, the proceeds of the sale of me to go too deeply into that sale except to AIDC were included in budget figures. It was say that a commitment was made by the then one of those items that was announced for Treasurer that the then government would sale virtually every time Mr Keating, Mr hold its 51.3 per cent holdings in the Willis or Mr Kerin brought down a budget, Commonwealth Bank. By the way, he wrote but it never quite got done. There were good to every shareholder saying that, and every reasons for that or, indeed, bad reasons—there mum and dad bought shares on that basis. He were problems getting the sale together. It is wrote to every shareholder and then, with a somewhat hypocritical that the Labor Party flick of a pen, dishonestly sold the rest of the should come to this debate and start con- Commonwealth Bank. demning the process which we are putting Then, of course, there was the debacle of into place and it looks as though, with the the ANL sale. Again, time does not permit me endorsement of the Senate, it could be suc- to go into the history of that sale except that cessful. we know one thing: the stop-start sale of that Let me turn to the principles underpinning incompetent and loss-making shipping line the wording of the opposition’s pious amend- was only stopped for one reason, that is, the ment. Paragraph (1) talks about a reaffirma- Maritime Workers Union weighed in heavily tion of the principles underpinning the Monday, 26 May 1997 SENATE P3527

AIDC’s creation. Senator McGauran, in his development. Paragraph (3) relates to the excellent contribution to the second reading government needing to establish an effective debate, said that Mr McEwen, if he were with means for supporting capital investment. This us today, would probably have supported the government, through a whole serious of sale for the reason that the AIDC was estab- policies, is, indeed, addressing those issues. lished in the way it was to promote industry Clearly the Labor Party did much to destroy and development in Australia because there investment in Australia, particularly invest- was a paucity of, particularly, merchant ment in manufacturing—in fact, investment in banking skills within Australia at that time. anything. They went so far as to engineer a Anyone who could possibly say that there recession that wiped out tens of thousands of is a lack of merchant bankers out there trying businesses; a recession that knocked 500,000 to fund anything that moves would basically people out of jobs. not know what they are talking about. The The centrepoint of Labor’s economic and application and implementation of the recom- industry policies seemed to be to engineer a mendations of the Campbell committee of recession so that so many of those people got inquiry—as established by the then Treasurer, wiped out. Australia is only just beginning to John Howard, and implemented, to the great recover from those industry and economic credit of the man, by Paul Keating when he policies. This government— was elected Treasurer in 1983—have ensured Senator Bishop—You are doing your best that the banking system in Australia is far to make it worse. more vigorous and competitive than it was in 1970. Senator CAMPBELL—Senator Bishop interjects that they had to make it worse so Some of my colleagues have argued that it that they could make it better. Dee Margetts needs to be more competitive and, as we see would understand: it was the clear-felling the implementation of the Wallis committee— approach to economic and industry policy— the daughter of the Campbell committee— just wipe out thousands of hectares. Senator report recommendations, we hope that that Mark Bishop needs to be on the record: this will be achieved. The principles underpinning was the Keating economic and industry AIDC’s creation may well be, in broad terms, policy—we needed to restructure, so we clear- good principles but to argue that the princi- felled the Australian economy and hoped that ples from 27 years ago are applicable now in something would emerge. Wipe out 500,000 1997 is more a reflection of the Labor Party’s people’s jobs and tens of thousands of busi- approach to policy at the moment. What this nesses and see what you are left with. is really saying is that what they did over the We do not take that view. We are imple- last 13 years was a failure, that they want to menting a range of policies. I will run through go back to the 1950s policies of the Labor them as quickly as I can. To enable banks to Party, the 1950s policies generally—that they invest five per cent of their core capital in want to stop any tariff reduction, they want to small business without prior consultation with stop reform of the tax system and they really the Reserve Bank, we have changed the want to call a halt to any sort of reform at all. prudential requirements. We have changed the They are saying that everything was hunky- tax treatment of equity investment by finan- dory in the 1950s and that we should go back cial intermediaries in small and medium to then. That seems to be Labor’s new policy enterprises, so that such investments will be approach and it seems to be reflected again in liable for capital gains rather than income tax. this amendment. Through the business equity information The government, of course, cannot support service, we have sponsored several private the proposition that we have not put a struc- finance matching services. We have initiated ture in place. Paragraph (2) of the pious a review of the pooled development funds amendment addresses the failure of program, in an effort to find ways of encour- Australia’s capital markets to provide suffi- aging greater capital raising and attracting cient long-term patient funds for industry greater participation from superannuation P3528 SENATE Monday, 26 May 1997 funds in equity provision. We have initiated (1) The Minister for Finance must, by written a significant study to look at the feasibility of notice given to AIDC Ltd. direct that body an alternative equity market. In the area of to transfer all of its holdings in the Austral- ian Submarine Corporation to the Corpora- corporations law, we have initiated a program tion. called the corporate law economic reform (2) The direction may impose on AIDC Ltd program, which will look at easing prospectus requirements that are ancillary or incidental provisions to make the raising of equity to the transfer, including, but not limited to, capital a lot easier for small and medium any of the following requirements: enterprises and at changing the exemptions (a) a requirement that the transfer must be within the corporations law to ensure that completed no later than 30 June 1997; small and medium enterprises can access (b) a requirement that the transfer must be equity capital. undertaken as a specified manner. (3) AIDC Ltd must comply with a direction So this government is doing a whole range given under subsection (2). of things that the previous government ig- (4) To avoid doubt, nothing in this or any other nored for 13 years which will make it easier Act authorises the Minister to transfer from to access investment capital, for small and the Corporation its holding in the Australian medium enterprises particularly. They are Submarine Corporation. things that, I am sure, John McEwen—and (2) Schedule 1, item 39, page 15 (line 13), omit even Senator McGauran—would support. "The Minister for Finance", substitute "Subject Ours is a 1990s approach to raising invest- to section 33HA, the Minister for Finance". ment in Australia and not the 1950s approach (3) Schedule 1, item 39, page 16 (line 5), omit of the Beazley-led opposition. They would "The Minister for Finance", substitute "Subject have Australians believe that some sort of to section 33HA, the Minister for Finance". back to the future policy manifesto develop- I also point out that amendment 4 would have ment program is appropriate. to be carried if this issue was to be dealt with correctly and legally. It deals with the same We will be opposing this second reading issue. amendment for those reasons. I urge all The effect of the amendments we have honourable senators to be very careful in circulated, as I foreshadowed in my speech in supporting what is clearly a very pious the second reading debate, is to separate out amendment coming from the political party the sale of the Australian Submarine Corpora- which did so much to destroy industrial tion and to ensure that it is not sold without investment in Australia and which itself parliamentary approval—certainly at this proposed the sale of AIDC but failed to sell stage. I have outlined in my speech in the it. This is clearly a very pious amendment. I second reading debate the reasons we believe urge all senators to oppose this amendment that is important. and support the second reading of the bill. We have amendments from the Australian Amendment (Senator Sherry’s) agreed to. Democrats which deal with the same issue but Original question, as amended, resolved in in a very different way. As I am advised, the the affirmative. Democrat amendments separate out the Bill read a second time. Submarine Corporation. However, it can be left to a minister at a future date, without In Committee reference to parliament, to sell the Submarine The bill. Corporation. That is the first area of differ- ence. Secondly, the Democrat amendments Senator SHERRY (Tasmania—Deputy give preference to the buyer of the AIDC if Leader of the Opposition in the Senate) (1.19 that is a foreign corporation. If the purchaser p.m.)—by leave—I move: of the AIDC—excluding the Submarine (1) Schedule 1, page 15 (after line 10), before Corporation—is a foreign corporation, it has section 33J, insert: first preference. Then, if a foreign buyer 33HA Minister for Finance to direct AIDC declines that first preference, the AIDC is to Ltd to transfer asset be put on the market in Australia. As I under- Monday, 26 May 1997 SENATE P3529 stand it, those are the Australian Democrat his amendment—under the definition in the amendments. Foreign Acquisitions and Takeovers Act We think they are very wishy-washy cannot buy it. The long-term outcome of what amendments, for the reasons I have outlined. happens to the Submarine Corporation is Above all else, if we are going to separate out something that we can only guess at. the sale of one of the assets of the AIDC and It would be in Australia’s interests if that it is not to be sold, it should come back to corporation was able to move into other parliament for sale. That is a very important industrial areas and to create other businesses principle, which I would have thought that the than building submarines. That is something Democrats would agree to. I am surprised that is being speculated upon. Clearly, this they have effectively agreed to the minister— government would like to see a major indus- in this case, the Minister for Finance—selling try like that move into other areas of indus- it off. This is at best a holding operation for trial enterprise, servicing the South-East Asian the Submarine Corporation until the govern- and Asia-Pacific region, but that is something ment goes through the process of selling the that we as politicians and bureaucrats in the rest of the AIDC. I do not want to talk too federal government cannot tend to second long on this issue. I know that time is press- guess. ing and we have a heavy commitment legisla- As far as AIDC goes, one would hope tively. Could Senator Campbell let us know that—ensuring that as a merchant banking when he anticipates the conclusion of the sale operation it is moving out of the restrictions of the AIDC? of being a Commonwealth owned enterprise— Senator CAMPBELL (Western Australia— it may well be able to grow and expand and Parliamentary Secretary to the Treasurer) create opportunities. I would hope that what (1.23 p.m.)—We will seek to achieve the we are doing has got more upside for employ- transfer of the 100 per cent ownership to the ment than downside, and that would be my corporation before September of this year and own guess. we would hope to achieve a sale by the end Senator MARGETTS (Western Australia) of this calendar year. (1.26 p.m.)—From what the minister has said, Senator MARGETTS (Western Australia) I think he is indicating that he will not be (1.24 p.m.)—There is no doubt amongst supporting Labor’s amendment but will be honourable senators that I have had concerns supporting the Democrats’ amendment. This for quite some time in relation to Australia’s brings me to the question: if the multilateral push for Collins class submarines and whether agreement on investment comes to pass and or not that was a wise way to spend our Australia signs up to that, won’t the defence dollar let alone a wise way to spend Democrats’ amendment be worth nothing, budget money, considering the other commit- because we won’t be able to make laws—we ments that are before us. What will be the will have to change our laws, won’t we—that impact in relation to employment? Does it actually impact on the level of Australian make any difference to employment whether ownership, even if it is perceived by Australia or not the AIDC, along with the Australian to be in the public interest? Submarine Corporation, is sold? Senator CAMPBELL (Western Australia— Senator CAMPBELL (Western Australia— Parliamentary Secretary to the Treasurer) Parliamentary Secretary to the Treasurer) (1.27 p.m.)—That is a bridge that we will (1.25 p.m.)—The effect of the amendment have to be concerned about if that all comes that Senator Murray will be moving will be to pass. I might use this opportunity, rather that the Submarine Corporation is transferred than having to jump up again, to say that the to the Australian Industry Development reason we will support Senator Murray’s Corporation, and it also contains restrictions amendment is that it does put in place a about who can buy the Submarine Corpo- number of sensible restrictions in relation to ration. It ensures that a foreigner—and Sena- the transfer of what we regard as a strategic tor Murray can correct this when he moves asset for Australia, and it creates a sound P3530 SENATE Monday, 26 May 1997 legislative framework to do that. It ensures the first act taken before the transfer of that it cannot be sold. minorities makes AIDC Ltd a wholly owned What Senator Sherry said about the first AIDC body, which is how other transfer right of Kockums to buy the shares out I am provisions in the bill are drafted. Yet subsec- advised is correct but we could not legislate tion 2(a) requires transfer by 30 June 1997. to override that because you would be travers- Technical problems arise from the creation ing an agreement that is already in place and of a separate, independent power of direction you would have to pay compensation. I do and a lack of proper cross-referencing within not even think the Australian Labor Party the legislation. So, under the amendments, would want the Senate to override a contrac- any transfer would not be exempt from stamp tual obligation that was negotiated when they duty under section 33X, and proceeds of the were in power. What we are saying is that, asset transfers, if any, may be extracted from once Kockums’s right was at an end— AIDC Ltd under section 33U only if they are whether or not they had exercised it—under transfers under 33J. More significantly, the proposed amendment to be moved by proposed amendment No. 4 would prevent the Senator Murray, the sale could not take place corporation from subsequently disposing of to a foreigner under the definition used in the the holding without further legislation. It foreign takeovers act. would defeat the government’s policy objec- It is not using the Foreign Acquisitions and tive of ultimately abolishing the corporation Takeovers Act to create that power under this and repealing the act. bill. All it is doing—I think I am correctly advised—is to use the definition used under Opposition amendment No. 4, which would that act, so it is giving the minister quite a prevent the repeal of the Australian Industry specific amount of power. To go to the Development Corporation act, is not necessary hypothetical situation that Senator Margetts in any case. The corporation cannot be abol- has moved— ished so long as it has any assets under the Senator Margetts—I don’t think hypotheti- commencement provision in clause 2 of the cal. AIDC Sale Bill. I am advised that that is not likely to occur for some 10 years at least Senator CAMPBELL—It is hypothetical because of the existing assets and commit- at the moment because what you have said ments of the corporation. has not happened. It may happen and a lot of people think it would be a good thing if it did Senator MURRAY (Western Australia) happen. I am not up with negotiations in (1.31 p.m.)—I will be speaking to Senator relation to deregulating foreign investment, Sherry’s criticisms in respect of the AIDC but I would imagine that national govern- Sale Bill when I come to deal with my own ments would retain some significant powers amendment. I will signify, for the purposes of in relation to the ownership of defence manu- the committee, that we will not be supporting facturing and things like that. I do not know Labor’s amendment because we think ours is but it would be an interesting debate for superior to their intention. another time. I will certainly research it. It is not germane to this specific bill. Senator SHERRY (Tasmania—Deputy Leader of the Opposition in the Senate) (1.32 We have some significant misgivings about p.m.)—It does not surprise me that you think the effect of the Australian Labor Party’s it is superior, but it is inferior in our view. amendments, which were moved in the House There are some issues that I want to raise in of Representatives as well. They are techni- respect of the Democrats’ amendment. I know cally flawed. I will say for the record why that we have crossed over somewhat in this they are technically flawed and why Senator debate. Senator Campbell, if you do not think Murray’s amendment achieves a similar result that amendment 4 is necessary, we would be but in a better structured way. very happy if you would accept amendments There is a timing problem. Proposed 1, 2 and 3. I reiterate that we believe the amendment No. 1 requires the transfer to be Submarine Corporation should be separated Monday, 26 May 1997 SENATE P3531 out. It is a strategic asset. Senator Campbell, that is the way they intend to vote on this who are the owners of Kockums? occasion. Senator Campbell—I am advised that it is Senator CAMPBELL (Western Australia— partially the Swedish government and partial- Parliamentary Secretary to the Treasurer) ly Swedish private interests. We are just (1.36 p.m.)—The rhetoric of Senator Sherry trying to find out whether Abba have shares. does not match the rhetoric of the Labor But I am advised they do not. government and particularly of Senator Ray, when he was defence minister, who actually Senator SHERRY—Mamma Mia! We jest, negotiated this pre-emptive right for but I think it is a serious issue. Our intention Kockums. is to park the Submarine Corporation sepa- rately— Senator Sherry—Yes, but we didn’t sell it to them, did we? Senator Campbell—Moor it. Senator CAMPBELL—No, but you have Senator SHERRY—Sorry, we are mooring negotiated the arrangement whereby Kockums it. Goodness knows where—maybe out in the have a right. This government has not done Pacific somewhere. Seriously, we are propos- anything about that arrangement whatsoever. ing to park it. This is a strategic asset. We This bill does not change that amendment. face the prospect, as I understand the This bill, as amended by Senator Murray’s Democrats’ amendment, that Kockums, which amendment—if it is passed in this place, and has a substantial foreign shareholding of I put money on the fact that it will at this Swedish interests, will have first preference. stage; I join you on that—ensures that, if the We are not attempting to override the contrac- shareholding in the Australian Submarine tual agreement that the government has. We Corporation is to be sold, it cannot be sold to are saying that it should not be sold—full a foreign person as described by the FAT— stop. If Kockums chooses to purchase—as I the Foreign Acquisitions and Takeovers Act. understand the Democrats’ amendment—we could face the potential of the ownership of However, the exercise of Kockums’s pre- the Australian Submarine Corporation passing emptive rights, I am advised, would require into the hands of a Swedish company. Foreign Investment Review Board approval under the FAT Act. So there still is a require- I would contend that that is not in the best ment there, but it is quite unbelievable that a strategic interests for Australia. I am not just Labor Party senator should come in here and talking from a military point of view; I am criticise the fact that a Swedish owned com- talking from an industry policy point of view. pany should not have a right to purchase the Longer term, where the Swedish submarine balance of the company when it was actually interests come into conflict with the Austral- the Australian Labor Party minister and ian operations, if that ownership change government who negotiated that right. For the should occur, I cannot imagine the Australian Senate to then seek to overturn that would be national interests being put before Swedish a government breach in that contract. It could national interests. That is what concerns me quite clearly give rise to issues of compensa- about the Democrats’ approach. tion if the Australian government was forced Time is pressing on. I understand the to do that. situation with the numbers. The Democrats, Senator SHERRY (Tasmania—Deputy in the longer term, are going to sell out Leader of the Opposition in the Senate) (1.38 Australian strategic interests with their amend- p.m.)—But we are not seeking to override the ment. That is a great pity. I know the way the contractual agreement that has been entered votes are going to fall, and I think it would be into, as you point out, by a Labor minister. futile to waste the time of the chamber in a We are saying that here, now, today, given long and lengthy debate on this issue. I think the circumstances of Australian industry, it is very regrettable that the Democrats’ given what you have been doing to industry action does not meet rhetoric once again. But policy in this country, the Submarine Corpo- P3532 SENATE Monday, 26 May 1997 ration should remain in public ownership. Senator MURRAY (Western Australia) That is the way we see it—full stop. (1.47 p.m.)—by leave—I move: Question put: (1) Schedule 1, item 39, page 16 (after line 23), at the end of section 33K, add: That the amendments (Senator Sherry’s)be agreed to. (6) If a share in a company vests in a person under this section, the company must The committee divided. [1.43 p.m.] register the person as the holder of the (The Temporary Chairman—Senator S.M. share. Murphy) (7) Subsection (6) has effect despite anything Ayes ...... 24 in the Corporations Law. Noes ...... 42 (2) Schedule 1, item 39, page 16 (after line 23), —— after section 33K, insert: Majority ...... 18 33KA Special provisions relating to shares in —— the Australian Submarine Corporation AYES (1) If an AIDC body is the holder of legal or Bishop, M. Bolkus, N. beneficial interests in shares in the Austral- Carr, K. Childs, B. K. ian Submarine Corporation, the Minister for Collins, R. L. Conroy, S. Finance must: Cooney, B. Denman, K. J. Faulkner, J. P. Foreman, D. J. * (a) make such a declaration under section Forshaw, M. G. Gibbs, B. 33K as will result in the Australian Indus- Harradine, B. Hogg, J. try Development Corporation becoming Lundy, K. Mackay, S. the holder of those interests before 1 McKiernan, J. P. Murphy, S. M. September 1997; or Neal, B. J. O’Brien, K. W. K. (b) make such a series of successive declara- Ray, R. F. Schacht, C. C. tions under section 33K as will result in Sherry, N. West, S. M. the Australian Industry Development NOES Corporation ultimately becoming the Abetz, E. Allison, L. holder of those interests before 1 Septem- Alston, R. K. R. Bourne, V. ber 1997 as a consequence of one or Brown, B. Brownhill, D. G. C. more interposed transfers to other AIDC Calvert, P. H. Campbell, I. G. bodies. Chapman, H. G. P. Coonan, H. (2) If the Australian Industry Development Eggleston, A. Ellison, C. Corporation becomes the holder of those Ferguson, A. B. Ferris, J interests as a result of the declaration or any Gibson, B. F. Heffernan, W. of those declarations, this Act does not Herron, J. Hill, R. M. prevent those interests from being subse- Kemp, R. Knowles, S. C. quently sold or transferred. Lees, M. H. Lightfoot, P. R. Macdonald, I. Macdonald, S. (3) If the Australian Industry Development MacGibbon, D. J. Margetts, D. Corporation becomes the holder of those McGauran, J. J. J. Minchin, N. H. interests as a result of the declaration or any Murray, A. Newman, J. M. of those declarations, the Australian Industry O’Chee, W. G. * Parer, W. R. Development Corporation must not subse- Patterson, K. C. L. Payne, M. A. quently sell or transfer those interests to a Reid, M. E. Stott Despoja, N. foreign person (within the meaning of the Synon, K. M. Tambling, G. E. J. Foreign Acquisitions and Takeovers Act Tierney, J. Troeth, J. 1975) unless: Watson, J. O. W. Woodley, J. (a) immediately before the commencement of PAIRS this section, the foreign person had an Collins, J. M. A. Boswell, R. L. D. entitlement to acquit those interests; and Cook, P. F. S. Vanstone, A. E. (b) immediately before the commencement of Crowley, R. A. Kernot, C. this section, the foreign person was a Reynolds, M. Crane, W. registered shareholder in the Australian * denotes teller Submarine Corporation; and Question so resolved in the negative. (c) that entitlement: Monday, 26 May 1997 SENATE P3533

(i) arises out of a shareholders’ agreement; tee. That committee, again quite rightly, or raised serious issues which were pursued (ii) relates, directly or indirectly, to the further by Labor and by us. When we had a foreign person’s capacity as a regis- look into it, we established that AIDC Ltd’s tered shareholder in the Australian principal asset at the moment is the Australian Submarine Corporation; and Submarine Corporation. So far that corpora- (d) the sale or transfer: tion has produced one out of five submarines. (i) gives effect to that entitlement; or When that contract has finished, the effect (ii) would have given effect to that entitle- will be that unless the ASC continues with ment if it were assumed that AIDC other work or in some other form, that will be bodies and the Australian Industry the end of it. It will have a residue of depreci- Development Corporation were the ated assets, some intellectual property and the same entity. overhang of government investment in it over (4) For the purposes of this section, a person is the years. entitled to acquire any thing if the person is absolutely or contingently entitled to Labor and the Democrats were both con- acquire it, whether because of any constitu- cerned to see that the ASC was not immedi- ent document of a company, the exercise of ately sold off with AIDC Ltd, and that it be any right or option or for any other reason. transferred into the AIDC. We both achieved (5) In this section: that result. We were both concerned that it Australian Submarine Corporation means was not sold to foreign interests, except with Australian Submarine Corporation Pty regard to the pre-emptive right that Kockums Limited. has. Once again, we have both achieved that Senator Campbell was quite right in his result. However, we have taken the view that remarks, because no government—I am the only way in which government can deal referring to the previous government— with this issue is by having its hands relative- negotiates a pre-emptive right with a commer- ly untied. For us the most important thing is cial institution without having a potential sale that the jobs and the investment and the in its mind. Quite clearly, the previous contracts which matter so much to South government kept that option open. The fact is Australia are preserved and do continue. We that the Swedish consortium, Kockums, was have the government’s assurance that they are given that right by Labor, has that right and going to make sure that that happens. In fact, has the entitlement to exercise it if it so they are contractually bound to make sure that wishes. that happens. I want to say something in reaction to Our amendments followed a briefing discus- Senator Sherry’s remarks. Labor has a long sion with the Minister for Finance. We thank history of the sale of public assets. It has a you for the courtesy accorded us. Therefore, committed history of economic rationalism. I we put together our amendment to the AIDC stood in this chamber and heard the best Sale Bill, which would achieve a number of possible speech I have ever heard against the objectives. These were: firstly, to oblige the sale of airports from Senator Bob Collins. minister to transfer their ASC shareholding to Then Labor trooped over to the other side and the Australian Industry Development Corpora- flogged off yet another set of our assets. tion, which is a statutory authority and is not When I hear you—again, to use Senator subject to sale; secondly, to require AIDC Ltd Campbell’s words—coming the pious on us, to follow the minister’s direction to transfer I look forward to the days when Labor finally shares, which was vital from a legal point of gives up its old record of economic rational- view; thirdly, to preclude the transfer of the ism. shareholding in any subsequent sale of the Let us look at my amendments and where shares to a foreign person; and, fourthly, to we agree with and differ from Labor. Labor use the Foreign Acquisition and Takeovers quite rightly referred the bill to the Senate Act 1975 to establish the meaning of a for- Finance and Public Administration Commit- eign person. P3534 SENATE Monday, 26 May 1997

When the bill was considered by the Senate transferred to the corporation when their Finance and Public Administration Legislation shares are moved, possibly involving negotia- Committee, of which I am a member, the tion with the other principal shareholder, the ALP members issued a minority report pro- 48½ per cent shareholder, Kockums. The posing an amendment which required the ASC shares are held through a series of transfer of the shares to the corporation. This subsidiary companies, AIDC Defence Hold- also prevented those shares being sold in the ings, which is 100 per cent owned by AIDC future. That proposed amendment was drafted Investments, which in turn is 100 per cent as a stand-alone section of the bill. owned by AIDC Limited. Section 33KA(l)(b) The amendment responding to the Demo- allows the shares to be moved through the crats’ concerns has been prepared to be companies if that fits with the intercompany consistent with and take advantage of the relationships. powers provided by other sections of the bill. The Foreign Acquisitions and Takeovers It is to be inserted immediately after section Act 1975 provides for a range of circum- 33K to take advantage of the power provided stances in determining a foreign person by 33K which enables the minister to vest the covering direct shareholdings, substantial shares without the need for conveyance and interests, associations, trust arrangements and this minimises the risk of triggering any pre- residency issues. Subsections 33KA(3)(a) to emptive rights held by the shareholders in the (d) are included to ensure that the amendment Australian Submarine Corporation. does not constitute an appropriation of exist- The drafting uses the term ‘AIDC body’, ing shareholders’ rights that the other parties defined elsewhere in the bill as ‘the corpora- may have. Without this, it would be necessary tion or a wholly owned subsidiary of the to provide for compensation to the other corporation’. This is important, as the minister existing shareholders or the legality of the is only obliged to move the shares following move of the ASC shareholding could be in the acquisition of AIDC Ltd shares from the question. The shareholder rights that would be two minority shareholders in that company, protected would only be those that existed at which again were a hangover from previous the commencement of the bill. Any other re-acquisitions. Transfer of the ASC shares regulatory requirements that would apply to prior to that action could give rise to prob- those shareholder rights, such as satisfying the lems in relation to minority shareholders’ normal provisions of the Foreign Acquisitions rights. and Takeovers Act, would not be removed. Subsections 33KA(4) and (5) are included for The utilisation of 33K powers by the the purpose of clarifying the meaning of minister ensure that the powers provided certain references in the section. elsewhere in the bill oblige AIDC Ltd to follow the minister’s direction. Division 11 of We think that our amendment meets the the bill provides a series of injunctive powers. needs of the Senate. It meets the needs of the A date has been inserted to provide comfort FPA committee, as expressed in their report. that the move of the shares will take place in It meets many of the concerns of Labor. It a reasonable time and that provides sufficient certainly meets most of the concerns of the flexibility to ensure that the Office of Asset Democrats and therefore we commend the Sales and its advisers have had the opportuni- amendment to the House. ty to ensure that related issues concerning Senator MARGETTS (Western Australia) rights and obligations associated with the (1.55 p.m.)—As I indicated earlier, one of my shareholding are properly addressed at the concerns is that the multilateral agreement on time the move takes place. investment, which is being negotiated interna- AIDC Ltd holding the shares in a subsidiary tionally at the moment, will in fact, if and company and intercompany arrangements when it is signed—and it may not be too long associated with the shareholding will need to from now—have the effect of requiring be addressed. AIDC Ltd has certain rights as Australia to change its laws in relation to a principal shareholder which will need to be access to investments. There could be a whole Monday, 26 May 1997 SENATE P3535 range of laws, including media laws or laws Amendments agreed to. involving investment in defence industry. Bill, as amended, agreed to. We do not know what the wording of this Bill reported with amendments; report agreement currently is or what it will be in its adopted. final form. I think our negotiators probably have a better idea than we do. Obviously, it Third Reading would be a very good idea if we do know Bill (on motion by Senator Campbell) read what this will be, because in the end it may a third time. well mean that our laws will have to change to conform with the multilateral agreement on QUESTIONS WITHOUT NOTICE investment. Media Ownership Many things have changed as a result of the World Trade Organisation, including issues of Senator SCHACHT—My question is quarantine, customs standards and so on, to directed to the Leader of the Government in the detriment and concern of many people in the Senate and the Minister representing the the community. These were not mentioned by Prime Minister. Minister, was the Prime either the government or the opposition at the Minister correctly reported in the Sydney time these were signed on to. I do think it is Morning Herald as describing the Melbourne time now that we started looking at what it is Age as appalling, the Sydney Morning Herald we are signing on to. I do not think from the as too liberal and the Australian Financial sound of it that it would make much differ- Review reporters as being out of control? ence whether or not the Greens support it, Having made these comments in private to the because the numbers are obviously there. If cabinet and to at least one media proprietor is we are going to get a warm fuzzy feeling, we the Prime Minister now willing to make them should remember that that warm fuzzy feeling public? To what extent will these views drive may not be around for very long. We may not government policy in the area of media necessarily be protecting this industry. ownership? If there are exemptions within the multi- Senator HILL—I suspect there would be lateral agreement on investment, there are not a range of views around this chamber in many exemptions in the way of the World assessment of various journalists within those Trade Organisation agreement through the publications. Senator, if you want me to ask Uruguay Round of GATT that specifically say the Prime Minister whether he was reported that Australia can operate in its own interest correctly I will do so but the important thing in relation to whom we trade with and de- is that when the government is ready it will fence issues. It is only if there is a specific make a decision on the cross-media matters security risk to Australia and that would be and it will do so against a background of hard to justify if it was a middle eastern encouraging diversity whilst at the same time country or somewhere in Europe. looking to the least amount of regulation that is necessary to achieve that objective. If we make an ethical decision that is not currently already part of the World Trade Senator SCHACHT—Madam President, I Organisation agenda, one would wonder ask a supplementary question. Minister, will exactly what exemptions there would be and government policy be sensitive to Minister why it would be limited to trade and defence Moore’s stated concerns that ‘any movement and not a whole lot of other issues. We still towards lack of diversity would not be in the have to know these things, but I would not national interest’? Has Mr Moore spoken to necessarily hold my breath and assume that the Prime Minister on his concerns? this amendment—which is likely to be going Senator HILL—I think I have answered through—will in the long run mean that we the question. You can expect from us objec- will not have Australian Defence Industries tive and sound policy in contrast with Labor’s owned and operated almost totally, if not record in relation to media control, a record totally, by overseas concerns. which has a long and dark history, unfortu- P3536 SENATE Monday, 26 May 1997 nately. We are approaching this matter with home loans. Under the coalition government care. That is not surprising. Senator Alston we have the lowest interest rates in 24 years. has conducted an inquiry and is well informed Small business, as I said, is also the winner, in the matter. Advice has been given to the with business variable loan rates falling to cabinet and, at an appropriate time, a decision 9.25 per cent. will be made as to whether there should be The reduction in interest rates is consistent change. with the government’s strategy which is to Economy produce a growth, low inflation and low interest rate environment. It indicates the Senator KNOWLES—My question is to benefits that can flow from the decisions that the Leader of the Government in the Senate. this government has been prepared to take. It Last week marked the fourth reduction in is a reward for the battlers—never let that be interest rates since the coalition came to forgotten. It is a reward for those who have office; a further vindication of the been prepared to practice wage restraint government’s economic strategy, I might add. despite what they are encouraged to do by the How will the environment of low interest Australian Labor Party. It would be even rates, low inflation and strong business invest- better if the Australian banks would pass on ment assist Australian families and small the full benefit. I take the opportunity to business? welcome Aussie Home Loans’ example, Senator HILL—More good news as a which has dropped its home loan variable result of coalition government policy; a interest rate to 6.99 per cent by passing on the further dividend to the Australian people interest rate reduction in full. resulting from good, sound economic manage- Let us briefly compare the coalition record ment. It was interesting that practically every- with that of Labor. Home loan interest rates one within our country applauded it, except under Labor were 17 per cent in 1989-90 and the Australian Labor Party—perhaps because under the coalition they are 7.2 per cent. For of the contrast with their record in relation to small business they were over 20 per cent in interest rates. Yes, it is good news for Aus- 1989-90 and under the coalition they are just tralian families and it is good news for small over nine per cent. Credit card rates under business as well. It vindicates what was a Labor were over 25 per cent and under the sound budget, a budget of consolidation to coalition they are 16 per cent. This continues build on the difficulties of the previous year the environment of low interest rates, low when we had to address the inherited deficit inflation and strong business investment. of $10.3 billion. I am very pleased that we Profits are rising—and that is more good have been able to rein in that deficit, reduce news. expenditure—and, therefore, keep pressure off It was interesting to see organisations such interest rates—continue an even lower infla- as the Housing Industry Association and the tionary environment and encourage expanded Real Estate Institute applauding the economic growth. government’s decision. What did they say? Senator Sherry—Did you see Roy and HG They said that this creates the environment for on Saturday night? more jobs. That is good news for Australia Senator HILL—That is something that you and adds to the other benefits that have should applaud, Senator Sherry. It is good flowed from coalition decisions: the $1 billion news for all Australians, particularly for those family tax initiative, $600 million being put seeking jobs. It is, as Senator Knowles said, back into private health insurance, the savings the fourth reduction in interest rates since the rebate and the decision to reduce the provi- coalition was elected just over a year ago and sional tax uplift factor. That is sound eco- already we have been able to see four reduc- nomic management, with benefits for all tions in interest rates with a sum total of two Australians. per cent. Interest rates are now at their lowest Senator KNOWLES—Madam President, level in 24 years: 7.2 per cent on variable I ask a supplementary question. Could the Monday, 26 May 1997 SENATE P3537

Leader of the Government in the Senate tell When we are ready to make them, we will the Senate whether this environment of low make them. interest rates, low inflation and strong busi- ness investment will be assisted by any other Interest Rates reforms the government has in place? Senator McGAURAN—My question is to Senator HILL—I could talk about the the Assistant Treasurer, Senator Kemp. I refer industrial relations reforms, for example. to last Friday’s cut in official interest rates by Really what we did in the first year was to the Reserve Bank, which means that interest tackle all the big decisions: cut back expendi- rates have now fallen a full two percentage ture, IR reform, reduce red tape for small points in 14 months since the coalition have business, give business a chance to grow and been in government. We have heard Senator to improve. I do welcome the supplementary Hill espouse its benefits but, from the Assist- question because it reminds me that economic ant Treasurer’s perspective, how did the growth is now accelerating: 3.25 was the government’s responsible and prudent eco- projected figure, now it is 3.75. There is nomic management help create the conditions improved housing affordability—the best for an interest rate cut? What is the figures for years and years—and a strong government’s view on the failure, thus far, of outlook for investment growth with 16 per the big four banks to pass on the full cut in cent in 1996-97, up from eight per cent. official rates? Retail sales are rising. There is lots of good news as a result of sound coalition policy. Senator KEMP—Thank you for your question, Senator. It is clear that, once again, Wallis Inquiry you are focusing on the main game—issues Senator SHERRY—My question is to the of concern to families and to business. These Leader of the Government in the Senate. Has are the sorts of questions that we never get the minister’s attention been drawn to com- from the opposition. ments by a member of the Wallis inquiry into The government’s budget received a re- the Australian financial system, Mr Bill sounding endorsement on Friday, with a Beerworth—you appointed him—in London further cut in official interest rates. recently? Is Mr Beerworth correct in asserting that the government is unlikely to implement Senator Sherry—What did the banks do? the Wallis reforms because of the tough decisions facing it on Wik? Is he right when Senator KEMP—I am coming to that, he says that the government has adopted Senator; just contain yourself. As was men- Wallis’s ‘weasel words’ on foreign owner- tioned by my colleague, Senator Hill, the ship? Is Mr Beerworth correct in asserting Reserve Bank announced on Friday, for the that the ACCC is only interested in highly fourth time since the election, a fall of two photogenic cases and is not interested in percentage points. Of course, the government being a retail protection agency? welcomes the cut in official interest rates which, I assume, the Labor Party welcomes. Senator HILL—One thing you cannot say about this government is that it is not reform- Senator Bob Collins—We do. ist. I am amazed to hear this question. The Senator KEMP—Good to hear. It does complaint of Labor until now has been that promise help to long-suffering families who there was too much reform in the first year. struggled under the very high interest rates What we will do now is try and build on burden that the Labor Party imposed on them. those changes. It is a period of consolidation to give business the chance to grow and to Senator Sherry—Madam President, I rise expand and to employ more Australians—and on a point of order, which relates to repeti- all you do is come back and knock us again. tion. This is exactly the same as Senator That reform package is still on the table. It is Hill’s answer. He should be sat down. It is being considered by government and appro- exactly the same answer: same wording but priate decisions will be made in due course. with a much poorer delivery, I might say. P3538 SENATE Monday, 26 May 1997

The PRESIDENT—Order! There is no can you confirm that the changes to the point of order. He is answering a different treatment of income stream products under the question. social security income and assets test will be Senator KEMP—It is quite clear, as one retrospective? Can you confirm that pension- of my colleagues said, that the Labor Party ers who invested in these products on the really do not like good news. This budget advice of their financial advisers some years strategy is conducive to low interest rates. In ago will now be disadvantaged by your just three years the government is turning changes? around Labor’s $10.3 billion deficit, which Senator NEWMAN—I think the question they left the government, into a $1.6 billion shows a lack of understanding about the surplus. This is a turnaround of some $12 measure that is being proposed. I would billion—a major achievement of this govern- suggest to the honourable senator that perhaps ment. While other factors do help determine he might go back and have a look at the fine interest rates, including wages, the fact re- print. mains that the budget strategy is very import- This is a measure which has been wel- ant in this regard. comed around Australia by retirees as well as The big four banks are now offering home by the retirement income industry. This is a loan rates of 8.2 per cent, which represents an measure which will make sure that financial interest saving on a loan of $100,000 of some planners are not able to advertise that you can $275 a month compared to when we came be a millionaire and still get a social security into office. This represents a benefit of around pension. If the Labor Party is suggesting that $70 a week. The government is concerned they want to see a continuation of that, which that the big banks have not passed on the flourished under their years in government, official interest rate cut fully to lower home well they should make it very clear. On this loan rates. Official interest rates are done for side of the parliament we believe that people the benefit, we hope, of consumers—not for who have the means to support themselves the benefit of banks. The government believes should be expected to do so to the extent that that the battlers deserve to have their reward they are capable of before they ask their quickly and fully. neighbour or the taxpayer for assistance. That The ACCC has written to the banks asking is the first part of this answer. them to explain their actions in only passing In addition, the reform to the income and on 0.35 per cent of the rate cut. It is, of assets testing of income streams is designed course, up to the ACCC to determine if any to give retired people more choice in how breaches of the Trade Practices Act have they invest their money, to be fairer to them occurred. and to encourage them to go for long-term The government is putting in place a low income streams. A habit of recent times has inflationary, low interest rate, strong growth been for the financial industry to recommend environment which delivers sustained reduc- that prospective retirees should put their tions in unemployment. In contrast, what is money into short-term measures. The way our the Labor Party offering? The Labor Party has tests are determined in the Department of consistently opposed the government’s poli- Social Security means that notionally those cies to eliminate the huge deficit that was left assets are seen to disappear from the assess- to us by the Labor Party. The Labor Party has ment. Those are the sorts of short-term pro- a strong record of big deficits, big taxes and ducts of something like five years maximum. high interest rates. That is not the People have the opportunity to change those government’s policy; that is the policy of the by the time the proposal becomes law. They Labor Party. have plenty of time ahead of them now over the next year to change the way they have Social Security: Income Stream Products invested. Senator FOREMAN—I direct my question I believe that the nation will endorse, as I to the Minister for Social Security. Minister, have found in this past week going around a Monday, 26 May 1997 SENATE P3539 number of states in Australia, this measure as is so close, Minister, can I ask you to put this a fair and beneficial measure. The only people on the record: given that the Prime Minister who will be affected are those people who are this morning expressed deep personal sorrow being persuaded to hide their assets from the for the impact of the policy, are you able as Department of Social Security. That is not fair Minister for Aboriginal Affairs to extend that to Australians generally. deep personal sorrow to an apology at the Senator FOREMAN—I ask a supplemen- government level, or do you have some tary question. Minister, can you confirm that advice which tells you that the minute you it is your department’s assessment that pen- say sorry or apologise you open the flood- sioners will need more help from financial gates for some kind of compensation? Is it not information services officers as a result of the true that people can pursue their rights to changes, not less? compensation irrespective of what this government decides to do? Senator NEWMAN—Yes, I will confirm that. And yes, we have made provision for Senator HERRON—Yes, people can extra financial information services officers to pursue them and are pursuing them. As you deal with that item that we are introducing in know, there are two cases before the courts at the budget in addition to the deferred pension the moment. I do not think any prejudging of bonus plan. So we have recognised the need that is appropriate. As I said previously, I will people will have for that information. They make a statement on behalf of the government will need to make sure that the advice they at the appropriate time after the report has are getting from the commercial sector is not been tabled. self-interested on the part of the private sector Senator Bolkus—You are hopeless. You but geared at trying to maximise a retiree’s are a disgrace. You create embarrassment for total retirement income. That is what we are Australia. about—making sure that older people have Senator HERRON—I am pleased that my maximum retirement income, not allowing staff are in the gallery. You will understand people to run a horse and cart through the what I am referring to if you heard Senator social security system, as you allowed to Bolkus’s statement. An appropriate response happen for all those years. to the report will be given at the appropriate Aboriginal Reconciliation time. Senator KERNOT—My question is to the Senator Faulkner—No-one else does, you Minister for Aboriginal and Torres Strait can be certain of that. They might but no-one Islander Affairs. Minister, do you think that else will. acknowledging the past honestly is a funda- Senator HERRON—I was referring to the mental prerequisite for reconciliation? Does sledging that goes on from the other side. I honest acknowledgment of the past allow you just thought that I would draw it to their as, Minister for Aboriginal and Torres Strait attention while they were in the gallery. Islander Affairs, on behalf of Australian gov- Public Service: Wage Levels ernments past and present, to apologise for the mistaken policy of forced separation of Senator HOGG—My question is to Sena- Aboriginal children from their families? tor Alston, as minister representing the Minister Assisting the Prime Minister for the Senator HERRON—I thank Senator Public Service. Minister, has your attention Kernot for the question. The answer to the been drawn to recent comments by the Secre- first part of the question is yes. The answer to tary to the Department of the Prime Minister the second part is that a formal response to and Cabinet, Mr Max Moore-Wilton, that the tabling of the report into the separation of higher pay was required to overcome a children will be given at an appropriate time vacuum at the senior levels of the Public and it will be tabled this afternoon. Service? Is there a vacuum at the senior levels Senator KERNOT—Madam President, I of the Public Service and how does Mr ask a supplementary question. Given that that Moore-Wilton’s call for higher pay fit with P3540 SENATE Monday, 26 May 1997 the government’s views on enterprise bargain- intending to point to—rather than it simply ing? being interpreted as it was: as a sort of Senator ALSTON—I did see some remarks straight-line ambit claim for everyone to get attributed to Mr Moore-Wilton. I have not a BMW—was that we do need to ensure that canvassed them with him or sought any there are attractions to the package. You official response so I can only go about as far blokes were masters at this idea of dressing as Senator Hogg is able to go, I think, in things up, offering all sorts of untaxed returns, terms of interpreting what was being said. to the point where the tax system started But, as I understand it, Mr Moore-Wilton was creaking at the edges because of salary sacri- simply making the point that it is important fice and other arrangements. to have sufficient incentives and sufficient Clearly, I think what he was pointing to wage levels in place to attract the best people. was the fact that we cannot simply assume There can be no doubt that the fundamental that a particular sum of money is sufficient; direction and impetus and enthusiasm of that there are other add-ons that need to be government departments is overwhelmingly— looked at, in examining the total attractiveness Senator Forshaw—How much extra are of a package. I do not think he should have you going to give the ABC so they can been taken as suggesting that somehow there employ Jana Wendt? was a straight-line transfer that whatever the Governor of the Reserve Bank gets is appro- Senator ALSTON—Pardon? priate for any particular public servant. The PRESIDENT—Order! Senator Alston, you should be answering Senator Hogg’s OECD: Multilateral Agreement on question. Investment Senator ALSTON—The ABC has done Senator MARGETTS—My question is very nicely, I would have thought. The ABC directed to the Minister representing the has basically managed to adapt very nicely to Minister for Foreign Affairs and the Minister what we gave them in the last budget. So I do for Trade. I refer to the current negotiations not think the complaint comes from that within the OECD for a multilateral agreement corner. on investment, and I ask: what assessment has the government done on the impacts of this The point that is more important is that the agreement on areas such as the Foreign secretary to a department, the person who has Investment Review Board; Australian laws the ultimate responsibility, overwhelmingly limiting overseas investment or cross-owner- sets the direction for the pace of reform, the ship, such as media cross-ownership laws; way in which that department accommodates laws regulating investments themselves, such it and the way in which those who are respon- the regulations requiring a certain level of sible for reporting carry out their duties. I Australian content in television; and any think Mr Moore-Wilton was simply trying to manufacturing regime requiring a minimum make the point that it is very important Australian content or requiring re-investment indeed that we have wage structures that of profits in this country? When would any enable those people to be attracted to the government assessment of these effects be service and indeed to remain in the service. made available, and would this be made Senator HOGG—Madam President, I ask available to the parliament for debate before a supplementary question. Does the govern- any agreement is signed? ment share Mr Moore-Wilton’s view that Senator HILL—Obviously we take into departmental secretaries should have access to account in these negotiations our domestic a BMW in the same way that the Reserve situation and our practices in relation to Bank Governor, Mr Ian Macfarlane, has? manufacturing industry, international flows of Senator ALSTON—Again, I am not sure capital and the like. With respect, I think of the precise context in which those reported Senator Margetts is approaching the issue a remarks might have been made, but I think touch negatively. Really the issue is what what Mr Moore-Wilton was presumably benefits Australia and other communities can Monday, 26 May 1997 SENATE P3541 gain from the multilateral agreement on capital can actually benefit Australia and help investments. create more jobs. If we come back to what it is all about, we Senator MARGETTS—Madam President, believe that if a regime is in place that enfor- I ask a supplementary question. The way I ces non-discrimination and greater transparen- read that is there will not be an assessment cy in investment rules, then that will help and it certainly will not be available to the contribute to economic expansion in much the Senate or to the public before any agreement same way as we have been able to do through is signed. By way of a supplementary ques- the regime on multilateral trading. So we tion: the Prime Minister has acknowledged think that it is not conceptually possible to the high levels of community disillusionment separate the two. Expanding the international and uncertainty as a result of international community, with the benefits that flow in agreements signed already. Given the assuran- terms of higher living standards and jobs, ces that government gave us about our sover- requires an expansion in the movement of eignty in relation to such things as quarantine international finance as it does an expansion barriers under the World Trade Organisation in international trade. agreement, and given the subsequent debacle as a result of our lack of control in such These negotiations, as the honourable agreements, why should we imagine that after senator will know, have been going on for signing this agreement any parliament in some time under the auspices of the OECD. Australia will retain the ability to discriminate I understand it has not been an easy negotia- between overseas and Australian investment tion. In fact, the deadline for completion has or to regulate terms at variance with the had to be extended. That is quite a good sign multilateral agreement on investment under in some ways because it indicates the interna- which investment may occur? tional community is looking for a high quality Senator HILL—Again, it is a very nega- agreement and it is not going to compromise tive approach from Senator Margetts. What with a lower quality outcome simply to she does not appreciate is that we are negoti- comply with the earlier time restraints that ating this agreement for Australia’s advantage, had been applied. not Australia’s disadvantage, otherwise we So the concept I think is sound and in the would not be negotiating it at all. We can see national interest. Australia will continue the benefits that flow from capital. We have constructively negotiating towards a good built Australia in part on foreign capital, and outcome. As I understand it, when we reach if we have in place a more transparent, non- a conclusion, it will have to go through the discriminatory capital flow regime that will be treaty process that we have in relation to other of benefit to Australia. I simply urge her not such agreements. to approach all these things quite as negative- ly as she is, but to actually look at the advan- Senator Margetts—Madam President, I tages that can come from them. The advanta- raise a point of order. The minister still has ges in this instance include economic growth not answered the question about whether an and jobs. assessment has been done or when it will be made available. Public Servants: Authorisation of Expenditure The PRESIDENT—Senator Hill, do you wish to make any further comments? Senator FAULKNER—My question is directed to the Leader of the Government in Senator HILL—I said that we obviously the Senate. Minister, has your attention been negotiate against the background of our drawn to a recent Federal Court decision domestic economic environment, and that upholding an earlier ruling by the Public includes the regulatory regime that we have Service and Merit Protection Commission that in place. But we do not negotiate negative- a public servant who authorised and signed ly—we negotiate positively—because we see for his own receipt of a meal allowance that a more transparent flow of international should be demoted and forced to repay the P3542 SENATE Monday, 26 May 1997 money? Minister, are you aware that in this you. That has been addressed and found to be case the commission found that the public in order in this instance. servant ‘had the sole approving and account- ing function at the post and was required to Youth Unemployment satisfy himself as to the correctness and legality of the payment in terms of his Senator SYNON—My question is directed authority’? Minister, are you also aware that to the Minister for Employment, Education, the disciplinary appeals committee found that Training and Youth Affairs. The Howard the conduct constituted a breach of the stan- government has brought down its second dard of behaviour expected of an officer? budget, which will greatly assist the economy Minister, what is the difference between these and provide substantial benefits to ordinary circumstances and the case involving Mr Max Australians. Will the minister inform the Moore-Wilton? Senate of what measures announced today will provide increased assistance to young Senator HILL—I have answered before, people facing real barriers to participating in and we had some discussion on this in the employment, education and training? estimates committee, that the practice adopted by Mr Max Moore-Wilton in relation to that Senator VANSTONE—I thank Senator matter was consistent with previous practices. Synon for that question. If any Australian We talked about the range of departmental who wants a job cannot get a job, that is a officials who were involved in that process. matter of concern to the government. With the We talked about the fact that the benefits that high unemployment that we have at the flowed to Mr Max Moore-Wilton were in fact moment, there are far too many people in that less than what could have been possible position. But it is of particular concern I think through other alternatives. I understand that to all Australians when a young Australian even since then there has been some third who wants to get a job cannot get one. We all party assessment of the process, I think again seem to have a softer spot for unemployed through the merit authority, which has con- youth than for other Australians who perhaps firmed that the practices adopted in that case have already had their first go. were all in order. Youth unemployment is one of the very real Senator FAULKNER—Madam President, and enduring legacies of the Keating govern- I ask a supplementary question. Minister, how ment. I do not deny for one minute that youth did Mr Max Moore-Wilton get away with his unemployment rates are higher because of the self-approval of temporary accommodation structural changes in the economy—such that arrangements when the public servant was the pool of jobs for low skilled and unskilled treated in the way that I outlined in my young people who unwisely, I think, chose to question? Why hasn’t Mr Max Moore-Wilton leave school as soon as they could is dimin- been asked to repay his forgone officer ishing all the time. Consequently, we have an contribution towards the weekly cost of his increased youth unemployment rate. Canberra accommodation? Nonetheless, I am pleased to inform the Senator HILL—I have answered the Senate that today we had the national launch question. The practice that was adopted in of the job placement, employment and train- that case was consistent with previous practice ing program, which will fund over 90 agen- and in actual fact was cheaper than some cies nationally to assist young people across other alternatives that were available. That is Australia. This government is committed to not a point that Senator Faulkner has been working with young people. While we recog- prepared to recognise. So there is really, I do nise the diverse achievements of young not think, much more that can be added to people in many of their endeavours and that matter. It was all in order. There is a congratulate them for that, we also acknow- difficulty, when you get to the top of the ledge the need to provide for young people departmental line, as to who has the final that have not enjoyed anything like the same approval when they are matters that concern level of opportunity. Monday, 26 May 1997 SENATE P3543

There is still a section of young Australians his defection to her staff and throughout the within our community that needs special period that he was employed by Mr Abbott. assistance from the government. This govern- Given that the Liberal Party has investigated ment is aware of the circumstances that his mobile phone use during this period, and confront those young people and today has that the Liberal Party has acknowledged that announced $11 million of direct assistance. moves are afoot to investigate his use of a We are absolutely committed in this task to departmental laptop computer, do you intend working with community organisations that to conduct any investigations of Mr Oldfield’s can provide services to young people that activities whilst he was employed by Mr need assistance in our community. We are Abbott? Minister, are you concerned that Mr determined that each member of the com- Oldfield may have obtained confidential munity has a real chance to contribute to information in his capacity as a staffer that society and to reach their own full potential. could now be misused in his new job? Are The service is funded under the JPET you concerned that Mr Oldfield may have scheme. As I say, over 90 agencies will misused departmental resources whilst he was provide that sort of assistance to over 8,000 employed by Mr Abbott? young Australians. The JPET program pro- Senator KEMP—Thank you, Senator vides services to ensure that young Austral- Bishop, for the question. I have some advice ians with special needs overcome the barriers here from the Minister for Administrative to their participation in employment, educa- Services concerning the investigation into tion or training. The young people who will allegations of improper use of office facilities be helped by this sort of service around and staff entitlements by David Oldfield. The Australia are or have been wards of the state minister advises that the department will and some have been involved with the law. provide any assistance to the Hon. Tony They might be students, young refugees or Abbott in respect of records held by it. ex-offenders. So JPET will offer ongoing Should the Department of Administrative support and referral services to those under 21 Services identify any non-official use of and especially for those 15- to 19-year-olds equipment or services, appropriate action will who have significant problems. be taken to seek reimbursement. I do not Once those underlying problems are man- think there is anything more I can add. aged effectively, participants in the program Senator BISHOP—Madam President, I ask will then be assisted in their efforts to gain a supplementary question. Will the govern- access to education, entry level training or ment broaden its inquiry to see whether any employment and in particular will be support- other ministerial staffers have been involved ed to maintain their participation in those in contact with the One Nation Party? Has the activities. Funding of $11 million per annum government issued instructions to its staff for the next two years is available to assist about such contact and what is the nature of young Australians who are homeless or at risk such instructions? of becoming so. I am very pleased that over 8,000 young people will receive support from Senator KEMP—I do not think you lis- JPET in the next year and will help these tened carefully to my answer, Senator Bishop. young people realise their full potential. I think what you did was, you had something prepared which did not relate to the answer I Mr David Oldfield gave, and you hopped to your feet. What I Senator BISHOP—My question is directed said—and it was not what you inferred—was to the Minister representing the Minister for that ‘the department will provide any assist- Administrative Services. I refer the minister ance to the Hon. Tony Abbott in respect of to recent reports that a former staffer of records held by it.’ Parliamentary Secretary to the Minister for Employment, Education, Training and Youth Senator Forshaw—Yes, we heard. Affairs, Mr Tony Abbott, was in regular Senator KEMP—That is what I said. Then contact with the member for Oxley prior to I went on to say: P3544 SENATE Monday, 26 May 1997

Should the Department . . . identify any non- ously, the government will closely consider official use of equipment or services, appropriate the recommendations in the report and, at an action will be taken to seek reimbursement. appropriate time, the government will make That is what I said, Senator. The views of this its views known on that. Senator, you men- side of the parliament towards the One Nation tioned your concern for small business. I Party are extremely well known and Mr wonder whether, in your supplementary Howard, the Prime Minister, has made some question, you will be able to indicate to us very strong comments on that. whether you will be supporting the govern- ment in relation to its recent announcement DISTINGUISHED VISITORS on unfair dismissals in small business. The PRESIDENT—I draw the attention of Senator Bob Collins—That would be out honourable senators to the presence in the of order Minister; you can’t do that; you can’t President’s Gallery of a delegation from the make a speech. Diet of Japan. I trust that your visit to this country will be both informative and enjoy- Senator KEMP—No; the question involved able. help for small business and, in the spirit of proper debate and with Senator Murray’s Honourable senators—Hear, hear! alleged concern for small business, I would be QUESTIONS WITHOUT NOTICE very interested in his response to that issue. There is a whole range of things this govern- Small Business ment has done for small business. There is the Senator MURRAY—My question is range of measures which were announced in addressed to the Assistant Treasurer. Minister, our response to the Bell report. We have done for many years the coalition, out of deference various things like reduce the provisional tax to its big business backers, has turned a deaf uplift factor; provide special exemptions for ear to the pleas from small business for CGT rollovers; and improve the FBT report- protection in the Trade Practices Act against ing arrangements which were very complex. unfair trading practices. Was it not the case So there is a whole range of measures which that the best you would do for small business we have brought down to assist small busi- was to promise an inquiry after the 1996 ness. election in this matter? Is it not the case that This government is the party of small the inquiry’s report tabled today, a report of business, Senator. Rather than being lectured your own backbenchers, amongst others, has by you about small business, what we want is concluded that ‘concerns about unfair busi- your assistance on some real help to assist ness conduct towards small business are small business. That is the assurance that we justified and should be addressed urgently’? are looking for from the Democrats. What urgent action will you be taking to Senator MURRAY—I wish to ask a provide small business with protection against supplementary question but, by the way, unfair business conduct by big business, Minister, I would appreciate it if you did not protection which should have been delivered refer to ‘deaf ears’. I am sure you did not years ago; or will you need another round of mean anything by it, but there are people who open-ended consultations with your big are offended by it. Is it not the case that this business backers first, denying small business government is only interested in small busi- action on their most pressing concern? ness reforms that do not upset big business? Senator KEMP—Thank you again, Senator That was my question earlier. You are quite Murray, for your question. Senator Murray, prepared to strip 1.3 million workers of legal you do take an interest in the issues of small protection against unfair dismissal law to fix business, which my colleague Senator Parer a non-existent problem with your own unfair has noted from time to time. I have to say, dismissal laws to appear to be helping small the implications in your question are unneces- business, but when it comes to taking on the sary and unwarranted. I notice you mention banks, Coles Myer, shopping centre owners that a report has been brought down. Obvi- and the oil companies, where are you? Is it Monday, 26 May 1997 SENATE P3545 the case that you will go to water? Will relation to infrastructure schemes, some very indefinite delay be the order of the day? In real problems that emerged which led to the other words, be precise: within what time Treasurer making the press statement on 14 frame will we see the amendments to the February. The test for the Labor Party will be Trade Practices Act recommended by your just how it will come down and support the committee today—amendments the committee government in relation to its moves there. and small business say are urgently needed— and brought forward as legislation? Senator CHILDS—Madam President, I ask a supplementary question. Minister, given that Senator KEMP—Again, Senator, you your government and your industry minister range far and wide, and you make a whole have done nothing to protect the jobs of steel- host of allegations. I think small business will workers in the Hunter region, why will you be absolutely fascinated to hear that you do not show a bit of leadership and intervene to not believe that the unfair dismissal laws are ensure that this important project, with all its a particular problem in relation to small benefits for the Hunter Valley, can proceed as business. I would be fascinated to hear you planned? wipe that, Senator. It rather suggests your concern for small business is highly selective. Senator KEMP—I have to say that I have now heard absolutely everything: the Labor This government has instituted a vast range Party complaining about employment! It was of measures—tax measures, record-keeping under your government, Senator, that unem- measures—to assist small business. You ployment—not only amongst people formerly mentioned the banks. In response to an earlier in the steelworks but across the whole econ- question from this side, I thought there were omy—reached record levels. You are the high some rather strong words put forward in unemployment party, and don’t you get up relation to the problems we are having with there and lecture to this government, which the banks in making sure that the full cut in has to deal with the mess that you left. interest rates is passed on. We play it straight, Senator, and I hope that the Australian Demo- Australian Broadcasting Corporation crats will too. Senator PATTERSON—My question is to Taxation Senator Alston, the minister for communica- tions. Minister, I refer to the Mansfield report Senator CHILDS—My question is directed on the future role and functions of the ABC. to Senator Kemp, the Assistant Treasurer. I To what extent has the development of the refer you to the Treasurer’s press release of federal government’s response to such critical 14 February, in which Mr Costello stated in issues as the ABC’s relevance in the 21st regard to the infrastructure borrowings tax century been influenced by the submissions— concession that, in an examination of existing particularly that of the ALP—to the Mansfield applications, ‘schemes being proposed are review? exploiting the concession for tax minimisation purposes’. Are you aware that, according to Senator ALSTON—That is a very good Mr Roy Alper, the director of National Power, question indeed, because what we announced if the government had not terminated the in the budget was a precise delivery of the infrastructure borrowing scheme on 14 Feb- promise we made back in July last year. We ruary, the Redbank power project would have have given the ABC half a billion dollars— commenced today, leading to an estimated just over $500 million dollars—and we have 1,000 jobs in the Hunter region? How does made a number of other very important this application, which will create 1,000 jobs, refinements, for which the ABC will, I am constitute a tax minimisation scheme? sure, be very grateful. Senator KEMP—There was an inquiry this But the people of Australia are entitled to morning, which you referred to, and I am an explanation not just about the outcome but sorry that you were not up here to hear the about the inputs, because it is very significant responses which were given. There were, in that at the next election they will have to P3546 SENATE Monday, 26 May 1997 make a choice between the competing parties ating. To say it is ‘dubious’ as to whether the and the views that they express. inquiry can make any reasonable recommen- Senator Schacht—We won’t be destroying dations, to say that some of the programs are the ABC like you are. ‘quintessential’ in their reflection of Austral- ian culture, and then to end up saying, ‘I Senator ALSTON—Madam President, you accept without prejudice your invitation to might recall that back in August last year have further discussions’—what on earth does Senator Schacht was very keen to tell us that that mean? Clearly, mindless regurgitation of he had put in a submission on behalf of the legalities. ALP. In order to get hold of that submis- sion—which of course was nine months What it really means is, ‘I can’t tell you. I ago—Senator Coonan had to put in three don’t want you to tell anyone either, because separate letters pleading with Senator Schacht I really don’t have any views on the ABC.’ I to let that document see the light of day. would have thought we should all be very What he finally did on 30 April was to say grateful indeed that none of this saw the light that he was prepared to hand it over—to come of day before the recent shadow cabinet clean. He said that he had had wide-ranging massacre, because, clearly, Senator Schacht discussions with Mr Mansfield, and he had was much more interested in going off to been told—presumably he had asked—to Japan—trotting out his industry policy to simply outline the Labor Party’s broad policy shore up his preselection—than addressing position. any of the real issues. What we then got was a letter. The first Opposition senators interjecting— thing was a letter dated 30 August. This is Senator ALSTON—Well if you are being what Senator Schacht said: rolled by the Bolkus left faction, all I can say I understand the official closing date for submis- is there will be no-one left in South Australia. sions is today. As you will be aware, I have been The fact is that there is nothing in this very busy with some Senate references committees. My submission will be sent to you within a fort- document that tells you anything about not night. If you want any more information, give my only the ALP’s view on the ABC, but no- office a call. one’s view. There are a few mindless inani- Seven weeks later, what did we get? We got ties, a bit of trite rhetoric about believing that a document which can charitably be described the ABC should continue to play a role as a as a submission, outlining the ALP’s broad public broadcaster. We get a bit of scare policy position. campaigning about regional stations—‘We don’t want to see them closing down; we Firstly, it starts off by saying, ‘The opposi- want to see the importance of independent tion opposes the inquiry’s terms of reference news and current affairs.’ There is nothing and, therefore, we do not believe it is neces- about whether you support changes to the sary to make a detailed submission.’ So what charter. I presume you will in due course. It was the point of all that? Why did you go on is an absolute disgrace—2½ pages of about seeking special leave to put in a docu- mindless rhetoric, not in any shape or form ment six or seven weeks down the track? addressing the policy issues, and it will be Then you say it would be very difficult for judged accordingly. (Time expired) the opposition to support recommendations produced by the inquiry, unless you turn a Minister for Transport and Regional blind eye to the terms of reference. That is all Development very helpful to Mr Mansfield. Quite clearly Senator BOB COLLINS—My question is you were not prepared to await the outcome, to the Minister representing the Minister for to make a judgment on the merits of what he Transport and Regional Development. Did the recommended. You are simply saying, ‘In minister for Transport and Regional Develop- advance, we cannot support anything.’ ment, travelling as a passenger, directly access I have to say, in passing, the strangulation air traffic control at Sydney airport by a of the English language is absolutely excruci- mobile telephone from on-board the aircraft Monday, 26 May 1997 SENATE P3547 in an attempt to jump a 14-plane landing about it. All that Mr Sharp is doing is taking queue at Sydney airport—a slot system which advantage of about all that is left to those the minister himself is responsible for admin- who suffer the ongoing frustrations of regular istering? Did the minister, during that tele- air users. Mr Sharp is perfectly entitled, as he phone conversation with the controller, identi- did on this occasion, to make inquiries. He fy himself by name and ask on three separate did no more than any other pilot does when occasions whether something could be done facing delays in getting into Sydney. I know to prioritise the landing slot that had been and Mr Sharp knows that Senator Collins and allocated to his aircraft at Sydney airport? his ilk do not want in any shape or form to Senator ALSTON—The general answer to know the true facts of the matter, but I have most of that question is no. outlined them and I think they speak for themselves. Senator Bob Collins—No? Senator BOB COLLINS—I ask a supple- Senator ALSTON—But it probably de- mentary question in response to that fascinat- serves a more detailed explanation than ing answer that the minister gave. Minister, Senator Collins has clearly been able to get are you aware that the 1-800 number that you his mind around from a newspaper report. I just talked about that can in fact be accessed can confirm that Mr Sharp was a passenger by any person in Australia, when it is ac- on a chartered light aircraft—not a jet as cessed by any person in Australia other than reported in today’s Sydney Morning Herald— a pilot, puts you through to the switchboard on a flight between Goulburn and Sydney on at CASA here in Canberra? Are you aware 17 May last. After take-off from Goulburn, that, if a pilot wishes to access air traffic they were advised by air traffic control of a control to talk to the controller, he has to delay to the intended arrival time. Mr Sharp prefix that 1-800 number with a PIN number did make use of an 1-800 free call telephone provided to pilots only? Did the minister use number published by Airservices Australia, a pilot’s prefix in front of the 1-800 call? which allows people with particular concerns Senator ALSTON—It is extraordinary, about landing times to make inquiries about isn’t it? We now all know why Senator traffic conditions and traffic sequences. Collins got comprehensively dumped from the Opposition senators interjecting— front bench. If ever a bloke had no interest at Senator ALSTON—You are not aware of all in his nominal portfolio responsibilities— that? Is that right? Okay. Well, the fact is that Opposition senators interjecting— this is a right that is available to every other Senator ALSTON—He is a local member pilot or person nominated by the pilot of an now. aircraft. Mr Sharp simply determined whether to persevere with the delay in getting into The PRESIDENT—Order! Senators on my Mascot or whether it made more sense to left should notice that their leader is on his divert to Bankstown. He made inquiries feet. which, I recall reading in this morning’s Senator Faulkner—Thank you, Madam paper, were not categorised in any shape or President. My point of order is one of rel- form as an attempt to apply pressure. They evance. It is a very direct supplementary were simply inquiries that any other reason- question that Senator Collins has asked. able person who had some concern about Interesting though the other matters may be whether the planes fly on time and arrive on that Senator Alston has been canvassing, I ask time would have made. you, Madam President, given that it is a I understand why you cannot be bothered supplementary question, to direct the minister finding out whether a plane is going to arrive to answer the question that Senator Collins on time, because you know that basically you asked. are responsible for the mess in the first place. The PRESIDENT—The minister clearly You simply folded your hands for years on was giving a little more information than was end and were not prepared to do anything asked in the question, but I am sure you P3548 SENATE Monday, 26 May 1997 should have in mind the actual question sustainability of both the economic and asked, Minister. environmental assets. That is vitally import- Senator ALSTON—The short answer is ant, and it shows that finally in this country that I do not know whether there were PIN we are learning from the mistakes of the past. numbers involved or any other of those We now recognise, for example, what we mindless technical details that you seem to be did wrong with the Murray-Darling Basin. We absorbed with, to the detriment of the inter- now recognise that it is important to get the ests of your constituents—to those sitting science right, to get in place a cooperative behind you who expect you to reflect on arrangement between all relevant parties and issues that you have been given responsibility then to implement such arrangements to for. This is another example of an obsession. preserve these assets before it is too late. We The bottom line in this is whether or not Mr recognise that, to maintain the economic Sharp acted in any improper manner and the advantages of a basin such as this, it is short answer is that he did not. He simply important to protect the natural systems as took action that is available to any other well. person. He was quite properly anxious to In this instance, it is important to protect know just how much longer he would have the continued health of river systems such as wait as a result of your policies.(Time ex- the Thomson, the Barcoo, the Cooper, the pired) Georgina and the Diamantina, which encom- Lake Eyre Basin pass the states of Queensland and South Australia. That is why a cooperative mecha- Senator FERGUSON—My question is nism, in which particularly the upstream state directed to the Leader of the Government in is prepared to cooperate with the downstream the Senate. Minister, I understand that the state, is vitally important. Senator Ferguson, Queensland cabinet has agreed with South this will be good news for our constituents in Australia to sign a heads of agreement on South Australia. joint arrangements for the future management of the Lake Eyre Basin. Can the Minister What the state governments have agreed to please inform the Senate of what arrange- is that they will enter into a cooperative ments are being made to conserve the natural agreement for the purposes of establishing heritage of this major region in Australia, and arrangements for the integrated catchment what role the Commonwealth is playing in management and water resources management these arrangements? of the Lake Eyre Basin, something that is long overdue. In doing so, they will adopt Senator HILL—I thank Senator Ferguson management plans or policies for flow man- for that important question. Yes, the Queens- agement regimes that reflect current near land and the South Australian governments natural variable flows of the river systems. have signed this historic heads of agreement, That is great news, Senator Ferguson. In other and the Commonwealth government will be words, a regime that will protect near natural signing in support of both state governments. flows of the river system really does show This approach to land management contrasts that we are learning from past experiences. starkly with the previous approach of Labor, The agreement will put in place policies for and it demonstrates what can be achieved objectives for land and water management in through a cooperative approach. the basin, including water quality objectives What is important is that the Lake Eyre and river flow objectives. We are talking Basin—which is one of the great unregulated about both the quality and the quantity of the catchments of the world really, which has water flow into South Australia. It will put in priceless assets of international ecological place policies that will provide for catchment significance and also vitally important eco- management strategies to ensure that, as far nomic assets—is now to be managed in a as practicable, those objectives are met— cooperative way by these two states, with the including the promotion of community action support of the Commonwealth, to ensure the to achieve the objectives for land and water Monday, 26 May 1997 SENATE P3549 management identified under the agreement cooperation to achieve a better outcome. or management plan or policy—and processes (Time expired) for dealing with current usage of water for Senator Hill—Madam President, I ask that domestic and stock watering requirements and further questions be placed on the Notice processes for dealing with significant water Paper. related development proposals for the basin. ANSWERS TO QUESTIONS ON It is a first. Before the damage is done, in NOTICE this instance two states—Queensland and South Australia—have got together and said, Question No. 482 ‘Let’s put into place cooperative policies Senator MURRAY (Western Australia)— which will ensure both the quality and quanti- Pursuant to standing order 74(5), I ask the ty of flows within the river system and there- Minister representing the Attorney-General for fore ensure, in the long term, the sustaina- an explanation as to why an answer has not bility of the great Lake Eyre Basin, sustaina- been provided to question on notice No. 482, bility both for its economic assets and for its which I asked on 7 March 1997 and for environmental assets. which I advised you I needed an answer to in I say on behalf of the Commonwealth the last sitting week. government that we are pleased to be a part Senator VANSTONE (South Australia— of this initiative. We are pleased to sign it. Minister for Employment, Education, Training We look forward to supporting those two and Youth Affairs)—Senator, I do not have states as the plan is implemented in the an answer for you, but I will get one this months ahead. afternoon. Senator FERGUSON—Madam President, Senator MURRAY (Western Australia)—I I ask a supplementary question. Could the move: minister further explain the circumstances that That the Senate take note of the explanation. gave rise to this significant agreement when the most recent history of environmental Question resolved in the affirmative. issues in the Lake Eyre Basin has been ANSWERS TO QUESTIONS WITHOUT marked by controversy and distrust? NOTICE Senator HILL—It is simply a different approach of government. Our approach is to Minister for Transport and Regional work cooperatively with stakeholders. Development Opposition senators interjecting— Senator BOB COLLINS (Northern Terri- The PRESIDENT—Order! tory) (3.06 p.m.)—I move: Senator HILL—In this instance it is to That the Senate take note of the answer given by work cooperatively with the state govern- the Minister for Communications and the Arts ments, with the pastoralists and with other (Senator Alston), to a question without notice asked users within Queensland. by Senator Bob Collins today, relating to the Minister for Transport and Regional Development Government senators interjecting— (Mr Sharp) and air traffic control at Sydney The PRESIDENT—Order! The level of Airport. noise is far too high. I must say that the Minister representing the Senator HILL—I understand the embar- Minister for Transport and Regional Develop- rassment on the side of Labor because their ment, the Minister for Communications and approach was a regulatory approach—try to the Arts (Senator Alston), surprised me with enforce an outcome. They wonder why it got his answer today. The story that I based the so many stakeholders offside, and they did question on was carried in today’s Sydney not get the outcome they wanted in the end in Morning Herald. Therefore, I assumed that any event. This is a different approach. It is the minister would have a brief on it and that demonstrated through the Natural Heritage he would be prepared for it. I was therefore Trust philosophy—an approach through somewhat surprised to hear him suggest that P3550 SENATE Monday, 26 May 1997 the Minister for Transport and Regional Senator BOB COLLINS—I am not com- Development (Mr Sharp) had done nothing plaining about that, Senator, at all and I am more than what was available—to quote the not suggesting you cannot. I have done it minister in here today—to anyone else in myself on light aircraft, not on jets. But, as Australia. you would know, Senator, it is not possible on a commercial aircraft nor is it possible in Does the minister representing the minister the VIP fleet either. They observe the rule for for transport seriously suggest, as he told the safety reasons as stringently as commercial Senate today, that if anyone in Australia—I aircraft do because mobile phones, being invite him to be one of them—rings the 1800 unshielded as they are, have a potential to free call number, which he just referred to, affect the navigational instruments on board that person would be connected with air modern-day aircraft. traffic control at Sydney airport, which is what he told the Senate today would hap- That is not the thing I am complaining pen—because Mr Sharp had done nothing about at all. It is the absolute effrontery of the else than do what was available to any other minister, who is responsible for administering person in Australia? the slot system at Sydney airport, a system which everyone else in Australia is expected Is the Minister representing the Minister for to comply with, to try to get himself shoved Transport and Regional Development in the up the line by big-noting himself to a control- Senate seriously suggesting that CASA would ler at Sydney airport and thereby abusing the run a system enabling anyone inquiring about position that he holds as a minister. That in the arrival time of an aircraft at an airport to fact is a substantive matter to raise here in the be connected to a senior controller at Sydney parliament, and I did not expect the nonsense airport who in fact was responsible for allo- we heard today. cating the slots at Sydney airport for the arrival of all the aircraft? The answer that the Of course, the answer—and the reason this minister gave the Senate today was utter intrigues me—is that we know the minister nonsense. I have to say I would be astonished did this, and Senator Alston has confirmed if that information was given in the brief that that. But the answers Senator Alston gave surely would have been provided to the raise a whole lot of questions; they do not minister as a result of the publicity given to provide any answers. Did in fact the pilot of these allegations, but the minister did confirm the aircraft attempt to get an upgrade of the that the call indeed was made. slot into Sydney? Why was it a passenger on You do not have to be too clever to work board his rcraft, no matter how self-important out just precisely what happened. It was in the passenger was, who tried to get this real terms the arrogance of office. It was this upgrade? minister big-noting himself in a way that I do We know that transcripts of these conversa- not think does him any credit. Certainly, it tions are available because they are taped, as does not do the government any credit—it is honourable senators on the appropriate com- only 14 short months since the election—for mittees in here know full well. We know that the minister to get this big headed about a transcript would be available to us to prove being a federal minister in this government. whether the minister did in fact use the words The minister was flying into Sydney from attributed to him in the Sydney Morning Goulburn, which I think is his home airport. Herald today, as I have no doubt he did. I I understand that he was in fact flying on a challenge the minister, particularly this chartered aircraft from a company that oper- minister who gave such a silly answer today, ates here in Canberra at Fyshwick, not on a to table the transcripts of the tapes that I jet, as reported in the story, but Senator know are held by air traffic control in Sydney Alston confirmed today the call was made so we will know beyond any doubt whatso- from the aircraft on a mobile phone. ever what the minister said to the controller Senator Calvert interjecting— at Sydney airport. (Time expired) Monday, 26 May 1997 SENATE P3551

Senator FORSHAW (New South Wales) problems with respect to air safety in this (3.11 p.m.)—This demonstration of arrogance country. by the Minister for Transport and Regional This is a minister who treats the protests of Development (Mr Sharp), of course, is typical concerned citizens in my area of Sydney with of a ministry that seems to think that when absolute disdain. A month or two ago a they get on a plane they can get preferential deputation came to this parliament, compris- treatment. This is not the first occasion that ing 10 local council shire mayors of Sydney, we have had a situation like this. representing well over one million people. Senators will recall in the early days of the They came to this parliament to meet with the new government the Minister for Defence (Mr minister and other members of the govern- McLachlan) arranging for an army helicopter ment and the opposition to talk about the to pick up his wife from a golf course to take issue of the siting of Sydney’s second airport. her to a show. Senators will recall The Hon. The minister refused to see them. The Mrs Bishop being involved in an incident on minister has consistently refused to see depu- an aircraft where the stewards of the plane tations from residents groups, shire council complained about the pressure that was representatives and others on this issue of applied to them because the plane was going Sydney’s second airport. to be late getting into an airport. I want to point out to the Senate while I Now what do we have? We have the have the opportunity that again today and for minister who is in charge of transport, John the next two days in this parliament there are Sharp, the minister who has actually imple- representatives of various citizens groups who mented the system at Mascot airport that he are campaigning against the choice of Hols- and the Prime Minister (Mr Howard) said was worthy airport. They will be in this parliament going to solve the problem of congestion at today, tomorrow and Wednesday. There is an Sydney airport, trying to queue jump and, open invitation to the minister and other furthermore, doing it in a most extraordinary members of the government to go and talk to and, I would suggest, very improper way. those representatives and hear their concerns As Senator Bob Collins has pointed out, the about the problems of Sydney’s second airport minister has utilised a service which is de- and air traffic congestion and aircraft noise in signed to be there for pilots of aircraft to use, Sydney. The minister should do that rather those who have a legitimate right to contact than ignoring their legitimate concerns. But air traffic control with respect to landing when he happens to get himself caught in a times at any airport. But, no, we have a position where he is a little bit inconveni- minister on a chartered aircraft, as it would enced by getting into Sydney late, what does appear, getting on the phone and, in effect, he do? He quickly gets on the phone and tries trying to take over the role of the pilot and to stand over air traffic control. I say to the putting pressure on air traffic control at minister that it is about time he changed this Sydney to get in earlier. arrogant attitude that he has adopted and he This minister, I have to say, has been should go and talk to those people who are probably one of the most arrogant ministers now in Senate committee room 1S2. in an arrogant ministry. For instance, you will Senator ROBERT RAY (Victoria) (3.16 recall this is the minister who wanted his own p.m.)—Just a couple of weeks ago in this way so much with respect to appointments on Senate a question was raised about 78 flights the board of the Civil Aviation Safety Auth- landing on the east-west runway when the ority that he ran a public campaign denigrat- cross-winds were in excess of 15 kilometres ing the reputations of certain members of that an hour. The question of safety was raised. authority and, at the same time, publicly So, when Senator Alston in his answer today supporting a particular candidate who now accuses everyone else of problems at Sydney happens to have been appointed to CASA and airport, he had better look very closely at the who, many would argue, at least bears some problems generated by this government in a responsibility for some of the pre-existing politically motivated decision to spread noise P3552 SENATE Monday, 26 May 1997 over Sydney. I would not be at all surprised traffic controllers in Sydney. What we do not that Mr Sharp’s difficulty of getting into know is that if he did access the 008 number, Sydney on this particular day was caused by how come he got put through to the air traffic the runway pattern that he himself has put controllers? If he did, did he have to use a out, mostly at the behest of Mr Howard, to special pin number that the pilot gave him? If stop planes flying over the Bennelong elector- it was only a moderate friendly little inquiry ate and to spread and ease the noise around from the Minister for Transport and Regional Sydney, irrespective of whether it hits safety. Development, who pays their salary, maybe As I think Senator Collins has pointed out, it is only an impolitic thing to have done. We there is nothing wrong with Mr Sharp taking will be able to find out because the transcripts a charter flight from Goulburn to Sydney, will be there. although I will say that the degree to which If Mr Sharp wants to hold his ground and National Party ministers are using charter say he did absolutely nothing wrong at all, let flights out of Canberra to go home on Friday us release the transcripts. There will certainly nights when the rest of us trudge out to the not be any commercial-in-confidence aspects airport is quite startling. That particular or any legal matters to do with it. There provision was never intended for National cannot be. Let the transcripts come out, let Party ministers to whip out to the airport after them be put down and we will make a judg- a parliamentary session. I do not know wheth- ment on whether this was a concerned citizen er your brother takes you; oh, there is no innocently ringing to find out when he was airport at South Yarra, is there, Senator getting into Sydney or whether it was a self- McGauran? important minister trying to queue jump 14 Ministers pick up a plane as a taxi out of slots to get in, based on an airport design that Canberra airport to go down to Gippsland and had political connotations in its very exist- up to Mr Anderson’s electorate and those of ence. Mr Sharp and Mr Fischer. They all do it. That I am also concerned, even though the was not really the intention of charter aircraft. instrumentation on light aircraft is different, They were to get you from spot A to spot B that he was using a mobile phone. There are on ministerial duty, not home quickly at two things here: there is a safety aspect, night. However, if it can be shown over time which we would not like to highlight because that this is a cheaper method than, for exam- it is less likely to occur in a light plane than ple, Mr McGauran flying to Melbourne and a jet; but also all the telecommunications getting a Comcar down to Traralgon or companies have objections to mobile phones wherever he lives—I do not want to identify being used in the air. I think the reason for where he lives but I think he lives down that that—I am not a technical person— way—that might be fine too. Senator MacGibbon—They are just preser- What we have in this situation is Mr Sharp ving their bailiwick. getting on his charter aircraft and he is so Senator ROBERT RAY—As you would self-important that he does not want to be acknowledge, Senator MacGibbon, it is just held up going into Sydney airport. The bat- the case that they jump over the cells so tlers can though. They can sit up there and fly quick, you cannot be charged. So it is prob- round and round in circles, as long as this ably not a safety issue; it is a telecommunica- bloke gets priority and gets in. I know he is tions issue. I want to know whether Mr Sharp a busy minister. He is so busy restructuring was actually billed for the call or whether the the Airservices board and assassinating its plane was going quick enough so that he got members in public that he probably had to get a real free call. But then it was an 008 num- to Sydney in a hurry. But no-one in Australia ber, so we are getting into very complex likes queue jumpers. Trying to jump 14 slots territory here. What it comes back to is ahead is not a particularly politic thing to do. simply a very arrogant minister on all appear- Senator Collins is absolutely right. Not all ances. The only way you will be able to Australians have the right to ring the air disprove that in my view is by publishing the Monday, 26 May 1997 SENATE P3553 transcripts so we can all have a read. And if four years ago, and he has done very nicely. it is not Mr Modest Sharp, we will drop the By his own admission, he has had a capital issue. gain of $60,000 on his home. Senator CALVERT (Tasmania) (3.21 I was going to raise the particular matter, p.m.)—I find it unusual with all the questions which people here today have been talking that were asked today that we have to come about, of so-called slot times. I might be in here and listen to a series of allegations. wrong but, in evidence given to us at the Senator Robert Ray—About ministers aircraft noise hearing the other day, we were abusing their office. told that one of the things that Sydney airport Senator CALVERT—That is all they are— and the FAC were looking at and going to use allegations. Given the record of your govern- to reduce the noise were slot times; they were ment about these sorts of things, about which going to introduce slot times so that aircraft you would know—using charter aircraft to go can do as they do at Heathrow airport from— and open dog shows and when you got there Senator Robert Ray—I bet you’ve never the dog show had finished— jumped a queue. I bet you never have. Senator Robert Ray—You were making it Senator CALVERT—No. a relevant thing three years ago. Senator Robert Ray—No! Absolutely, you Senator CALVERT—I do not condone wouldn’t. any of that at all. But the fact of the matter is that you are saying things here today about Senator CALVERT—I would not know Sydney airport. I know it is a favourite how to use a mobile phone, for a start. subject of Senator Forshaw, but Senator Senator Carr—That’d be right. And they Ferguson and I just happen to have had two made you whip! days up there last week. Senator Bob Collins—I’ve heard that Senator Robert Ray—Up where? Tasmanian senators don’t know how to use Senator CALVERT—At Sydney airport. mobile phones. We were listening to evidence from the Lane The DEPUTY PRESIDENT—Order on Cove action group, from people from Leich- my left! Senator Calvert, would you direct hardt, Barry Cotter from Marrickville—who your response through the chair. gave us a very good dissertation on what is going on—and the No Aircraft Noise Party. Senator CALVERT—I just thought that In fact, we asked questions about what has those honourable senators opposite might be happened. I observed at first hand that after interested to know that there were moves about 11 o’clock the whole operation afoot to introduce slot times at Sydney airport switched to the east-west runway and con- in an attempt to reduce the noise, as happens tinued that way until about 3 o’clock in the at Heathrow airport with a parallel runway afternoon. I asked some of the people who system. One of the Qantas pilots told me once were giving evidence, and who were obvious- why it happens in Sydney the way it does. A ly biased against aircraft noise, if this sharing lot of the noise is caused by the fact that they of the noise had made any difference and they do not get a glide path far enough out and said, yes, it had. they cannot glide in. But, for the information of honourable Senator Robert Ray—When were you at senators who are very concerned about air- Heathrow? craft noise at Sydney airport, the thing that interested me was that the noise remediation Senator CALVERT—This particular program that was instigated by the former aircraft pilot was telling me that when you fly government and continued by this government into Heathrow airport you can come in from seems to be working quite well. In fact, we 15 miles out. met one particular person who chose to buy Senator Bob Collins—Is this in defence of a house in the flight path at Sydenham about the minister? P3554 SENATE Monday, 26 May 1997

Senator CALVERT—I am just trying to Victoria, I know that much: you built a third give you some information on how this runway and then shut one down. government is trying to alleviate noise at I will offer some advice to the minister. Sydney airport. As Senator Collins would Given the queues at Sydney airport and the know— debacle that has followed over the past 10 Senator Bob Collins interjecting— years because of previous policies, it is Senator CALVERT—Madam Deputy probably timely for me to mention that that President, don’t I get any protection from the sort of delay would not happen in Victoria, chair at all? currently. If he were to land at the Essendon airport, he would get an instant result. There Senator Carr—No! are no queues at the Essendon airport, being The DEPUTY PRESIDENT—Order! as efficient as it is. It is Melbourne’s second Senator Carr! airport and it should remain so and remain open. I just offer that timely advice to the Senator CALVERT—Here I am trying to minister: these sorts of delays and frustrations give some very important information to the just do not occur in Victoria, because of our opposition, who do not seem to know any- good airport system and the two that are in thing about aircraft or airports. Senator the inner city. Collins should know that in a charter aircraft you can use a mobile phone. Obviously Mr In a week when we have had good econom- Sharp was doing that. The rest of what we ic news, namely the lowering of interest rates, have heard today are only allegations. Surely in today’s question time there was not one to goodness, until we have further proof, it single question from the opposition on the was a waste of half an hour of government economy—not one single question. What we business time today. have had are all these lightweight issues today, such as the minister chartering into Senator McGAURAN (Victoria) (3.26 Sydney airport. We have had a question on a p.m.)—I also have been provoked to join this political adviser to Tony Abbott, for heaven’s debate. I will be brief, because I want to hand sake, and what he could take out of the office, over to my— and also several questions from the Leader of Senator Carr—Tell us about South Yarra. the Opposition (Senator Faulkner) on the Senator McGAURAN—parliamentary position of the Prime Minister’s senior Public leader, Senator Boswell, to defend Mr Sharp, Service adviser, Mr Max Moore-Wilton— the good minister for transport, and a National none of them relevant. None of them are Party colleague. It is not for me as a Victori- relevant to the everyday lives of Australians. an to venture into the great debate of the I accept that they are probably trying to build Sydney airport and all the debacles that have up some sort of political perception, some sort followed it over the last 10 years. But Senator of flawed political perception. Ray got up in here and talked about political But the fact of the matter is that, in a week bias because this government opened the third that we have had good economic news in this runway. Well, I would have thought that is economy, the opposition is attempting to why you built three runways—to open it up distract the government and the Australian and maximise your ability to land. people—and the media no doubt—to focus on But for him to talk about this minister these shallow pathetic issues that do not go to opening up the third runway to gain some sort the heart of government. of political advantage for the Prime Minister Senator BOSWELL (Queensland—Leader (Mr Howard) in his seat of Bennelong is of the National Party of Australia in the absolute nonsense when we all know that it Senate) (3.30 p.m.)—I would like to make a was the previous minister, Laurie Brereton, contribution on this matter because I think whose absolute motivation was to shut down that what the opposition are trying to do is one complete runway so that it would not go build a mountain out of a molehill over this; over his particular electorate. Coming from and that is their role—to attack. They have to Monday, 26 May 1997 SENATE P3555 exploit every opportunity they have, but this We have these sorts of parliamentary one is fairly hollow because Mr Don Brown, contributions from the government whip, a chief of the air controllers, said that there was government whip who says he does not know no impropriety at all in the matter. What Mr how to use a mobile phone—and I under- Sharp has obviously done is rung up because stand, on very good authority from the oppo- he has been late for an appointment; but there sition whip, he cannot count either. We also has been no pressure put on the air controllers have a contribution from poor old Senator in any way. He rang up and made a request— McGauran, whose brother is over there in the and that was for a better slot. That was House of Representatives. His brother is also rejected by the air controller and there was no trying to angle in on Tim Fischer’s leadership; pressure at all put on that air controller. Mr he is also in the hunt, but he has not got Sharp accepted that he would have to get in Senator Boswell’s support, Senator Mc- the queue like everyone else. Gauran. He may have your support, but he To put paid to that matter, the chief of the certainly has not got Senator Boswell’s air controllers, Mr Don Brown, said, ‘There support. Poor old Senator McGauran comes is absolutely no impropriety; there is nothing in and makes a contribution to the debate, to investigate.’ But, of course, the opposition, talking about Mr Sharp landing at Essendon after a week of interest rates going down and Airport—but that is in a different state. You small business getting on top, has got to go need a geography lesson, Senator McGauran in and exploit an opportunity. Everyone —you really do. knows that is what an opposition is expected What this issue is about is Mr Sharp, the to do—and you have done it. But do not try putative leader of the National Party and to go over the top—you are going right over Deputy Prime Minister of Australia, misusing the top on these issues. It is clear that the and abusing his ministerial responsibility. Minister for Transport and Regional Develop- That is what it is about: misusing his office ment, Mr Sharp, has committed no impropri- and trying to queue jump; getting in a light ety. If there were anything there, Mr Brown plane and finding out that there are 14 other would have made some note or certainly planes in front in— would not have come out and given him a Senator Bob Collins—Probably a jet clean bill of health. Not a bad try—three out aircraft. of 10—and just wait— Senator FAULKNER—Maybe jet aircraft, Senator Bob Collins—And nothing out of maybe international flights, maybe domestic 10 for the response. flights; but 14 aircraft in front of him and all, Senator BOSWELL—Three out of 10 for according to Mr Sharp, having to stand back you guys—and you certainly have not kicked and let him and his light aircraft go into a goal on this one. Sydney first. Senator FAULKNER (New South Wales— Senator Bob Collins—Sharp practice. Leader of the Opposition in the Senate) (3.32 Senator FAULKNER—Probably. Probably p.m.)—I rise to join this important debate. the pilot of Mr Sharp’s plane objected— Senator Boswell talks about mountains out of molehills. The only molehill that Senator Senator Carr—You’d hope so. Boswell is interested in is, of course, the Senator FAULKNER—You would hope failing leadership of Mr Tim Fischer. The so. Probably the pilot said, ‘Oh, well, mate, reason that Senator Boswell comes into the handle it yourself,’ which is what Mr Sharp chamber behind Senator Calvert and behind did. Mr Sharp got on the mobile phone and— Senator McGauran is to support his candidate for the leadership of the National Party—Mr Senator Bob Collins—This is only a Sharp. Mr Sharp is Senator Boswell’s boy. It Cessna. is Mr Sharp whom Senator Boswell wants to Senator FAULKNER—Mr Sharp probably make Leader of the National Party in Austral- thought he was in some sort of fighter plane ia. at the time. Really and truly! Mr Sharp gets P3556 SENATE Monday, 26 May 1997 on the mobile phone at the back of the plane Citizen Military Forces and soon transferred and rings 1800. It may have gone through to to the 2nd Australian Imperial Force. He the CASA switch because, if you are not a served in New Guinea and rose from gunner pilot, that is where you are supposed to go to the rank of lieutenant with the 82nd Aus- through; or he may have even used the pilot’s tralian Mobile Searchlight Battery. Even pin number. We will find that out, too, when before entering federal parliament, he had we get the transcript, I hope. given active and successful service in local This is about abuse of office—and no politics. He was an alderman of the Waverley attempt on your part, Senator Boswell, or on Municipal Council from 1949 to 1953 and the part of any of your other cronies in the served as mayor from 1952 to 1953. National Party will be able to sweep that He became a member of the House of under the carpet. This is a minister who wants Representatives in 1955, winning the seat of one rule for him flying into Sydney airport Phillip for the Liberal Party. He held the seat while all other Australians—everyone else until 1961 and then again from 1963 to 1972. who uses the place—has to wait in line, wait His maiden speech characterised his concern in the queue and take his turn. There is one for the issues facing Australia in the Cold rule for a minister in the Howard government War era and the difficulties confronting the and another rule for all other Australians. It wheat and wool industries. He also spoke of is not on; you stand exposed, and Mr Sharp the need for the government of the day to has an awful lot of explaining to do to get out communicate and explain its policies to the of this one. people and the need for streamlining the Question resolved in the affirmative. country’s industrial relations system: issues which are, perhaps not surprisingly, equally CONDOLENCES pertinent and important today. Sir William John Aston KCMG During his 15 years in the parliament Sir The DEPUTY PRESIDENT—It is with William contributed extensively to the work deep regret that I inform the Senate, on behalf of a range of parliamentary committees. He of the President, of the death on Wednesday, was, as I said, elected as Speaker of the 21 May 1997 of the Hon. Sir William John House of Representatives in February 1967. Aston KCMG, member of the House of The six years that he occupied the Speaker’s Representatives for the division of Phillip, chair saw some colourful episodes and turbu- New South Wales, from 1955 to 1961 and lent debates in the House which tested his from 1963 to 1972, and Speaker of the House mettle and his impressive parliamentary and of Representatives from 1967 to 1972. political skills. Senator HILL (South Australia—Leader of His public service was recognised both the Government in the Senate) (3.37 p.m.)— overseas and at home. In 1969 he was award- by leave—I move: ed the Korea Order of Distinguished Service That the Senate expresses its deep regret at the Merit 1st Class for his contribution to the death, on Wednesday, 21 May 1997, of the Hon- promotion of friendly relations between the ourable Sir William John Aston KCMG, Member of the House of Representatives for the Division of Republic of Korea and the Commonwealth of Phillip, New South Wales, from 1955 to 1961 and Australia. In 1970 he was appointed a Knight from 1963 to 1972, Deputy Government Whip from Commander of the Most Distinguished Order 1959 to 1961 and 1963 to 1964, Government Whip of St Michael and St George. from 1964 to 1967 and Speaker of the House of Representatives from 1967 to 1972, places on Sir William’s passing will be mourned by record its appreciation of his long and meritorious all those who knew him. On behalf of the public service, and tenders its profound sympathy government I extend to his wife, Lady Betty to his family in their bereavement. Aston, and his daughters Margaret and Anne, Sir William was born on 19 September 1916 son-in-law Edward, and grandchildren Wil- in Sydney. His service to the nation began liam, Elizabeth and Catherine, our most during World War II when he enlisted in the sincere sympathy in their bereavement. Monday, 26 May 1997 SENATE P3557

Senator FAULKNER (New South Wales— 1963 to 1964, and then as Government Whip Leader of the Opposition in the Senate) (3.40 from 1964 to 1967. But it was as Speaker of p.m.)—On behalf of the opposition, I support the House of Representatives that Bill Aston’s the condolence motion moved by the Leader service to this parliament was most notable. of the Government in the Senate on the death He held that position of Speaker from 1967 of the Hon. Sir William Aston who, of until the defeat of the McMahon government course, had distinguished service in this in 1972. It was a long parliamentary career parliament, most particularly as Speaker of for Bill Aston in a tough inner metropolitan the House of Representatives. Labor senators electorate in Sydney that was famous for its join with senators from all sides of the cham- close fought struggles. ber in expressing regret at his death and Bill Aston was noted also for the nature of offering our sincere condolences to his family. many of his parliamentary contributions. He I think it is proper to say that Bill Aston was noteworthy, I think, for many of the served his country well, both in peace and rulings he made as Speaker of the House of war. He fought in World War II, enlisting Representatives. Not all times were these firstly in the CMF in March 1942 and trans- rulings accepted with good grace by the then ferring to the 2nd AIF in July of that same opposition, the Labor Party, but I think on year. During the course of the war he rose both sides of the parliament and certainly in from the rank of gunner to the rank of lieu- the Labor Party we acknowledge the signifi- tenant. cance of the parliamentary contribution that He had a long and, I think it is fair to say, Bill Aston made. On behalf of the opposition, turbulent parliamentary career, being first we offer our sincere sympathy to his family elected to the House of Representatives in and his friends. 1955. He won the seat of Phillip from Joe Senator BOSWELL (Queensland—Leader Fitzgerald, a great Labor stalwart who had of the National Party of Australia in the won the seat of Phillip when it was created in Senate) (3.45 p.m.)—I would like to associate the 1949 redistribution. Bill Aston won Phillip the National Party senators with the condo- again in 1958 but in the election of 1961, lence motion moved by the Leader of the where Labor clawed back many seats, he was Government in the Senate (Senator Hill) and defeated along with 15 other Liberal mem- supported by the Leader of the Opposition in bers. the Senate (Senator Faulkner). Sir William Aston was a man whom many of us had only New South Wales electoral folklore has heard of but he did establish his place in the always been characterised by really tough, history of the federal parliament. He served knock-down, drag-out, hard fought contests in his nation in local government and federal the seat of Phillip. Having been defeated in government and in war over a period of some 1961, Bill Aston was successful in the 1963 40-odd years. He was 15 years in the federal election until he was defeated in 1972 by Joe parliament where he was knighted and be- Riordan, who went on to become a minister came the Speaker of the federal House of in the Whitlam government. The 1969 result Representatives. He carved out his name, and was a classic example. Bill Aston won the people of our vintage who have come into seat in 1969 by 221 votes. Of course, there parliament over the last 10 or 12 years do was much muttering from the Labor Party remember his name. I would like to extend afterwards about possible Court of Disputed the sympathy of the National Party senators Returns appeals and the like. But that really to his family and friends and remember them did characterise what occurred in Phillip right in this sad time. through until the seat was recently abolished. Question resolved in the affirmative, hon- During his time in the parliament, Bill ourable senators standing in their places. Aston was a member of many committees, including the Joint Parliamentary Committee PETITIONS on Foreign Affairs. He also served as Deputy The Clerk—Petitions have been lodged for Government Whip from 1959 to 1961 and presentation as follows: P3558 SENATE Monday, 26 May 1997

Australian Broadcasting Corporation The petition of certain citizens of Australia, To the Honourable the President and Members of draws to the attention of the Senate the fact that the Senate in the Parliament assembled. members of the Royal Australian Navy who served in Malaya between 1955 and 1960 are the only The petition of the undersigned recognises the Australians to be deliberately excluded from vital role of a strong and comprehensive Australian eligibility for repatriation benefits in the Veterans’ Broadcasting Corporation (ABC) and asks that: Entitlements Act 1986 (the Act) for honourable 1. Coalition Senators honour their 1996 election ‘active service’. Australian Archives records show promise, namely that "The Coalition will that the only reason for the exclusion was to save maintain existing levels of Commonwealth money. Members of the Australian Army and Air funding to the ABC". Force serving in Malaya were not excluded, and the 2. The Senate votes to maintain the existing role costs associated with the land forces was one of the of the ABC as a fully independent, publicly main reasons for the exclusion of the Navy. An funded and publicly owned organisation. injustice was done which later events have com- 3. The Senate oppose any weakening of the pounded. Charter of the ABC. There are two forms of benefits for ex-service- by Senator Bourne (from 875 citizens). men, Disability Pensions for war caused disabilities (denied the sailors referred to but introduced in Radio Triple J 1972 for ‘Defence Service’ within Australia) and To the Honourable the President and Members of Service Pensions. Allied veterans of 55 nations the Senate in Parliament assembled. The petition of involved in conflicts with Australian forces until the undersigned shows that the potential funding the end of the Vietnam War can have qualifying cuts to Radio Triple J will drastically affect ser- eligibility for Service Pensions under the Act. vices and public broadcasts Service by 5 countries in Vietnam was recognised after RAN service in Malaya was excluded. The to the youth of Australia. Department of Veterans’ Affairs confirms that 686 Your petitioners therefore ask the Senate to ex-members of the South Vietnamese Armed retain the current level of funding for triple J. Forces are in receipt of Australian Service Pen- by Senator Schacht (from 109 citizens). sions; 571 on married rate and 115 on single rate. In effect, 1,257 Service Pensions, denied to ex- Housing members of the RAN, are being paid for serving To the Honourable President and Members of the alongside Australians in Vietnam. Senate in Parliament assembled: It is claimed that: We the undersigned respectfully submit that (a) Naval personnel were engaged on operational Social Housing is a major social ‘safety net’, duties that applied to all other Australian service crucial for all Australians. personnel serving overseas on ‘active service’. Your petitioners therefore call upon the Senate They bombarded enemy positions in Malaya and to maintain a commitment to the buying and secretly intercepted enemy communications; building of new housing properties. The new (b) Naval personnel were subject to similar Commonwealth State Housing Agreement must dangers as all other Australian service personnel provide the States with monies to buy and build serving in Malaya and there were RAN casualties, more Public and Community Housing. Dismantling none of which appear on the Roll of Honour at the the ‘safety net’ of Social Housing will mean Australian War Memorial; homelessness, overcrowding and the scrapping of public housing redevelopment plans, all of which (c) the Royal Australian Navy was ‘allotted’ for will impact on the most disadvantaged groups in operational service from 1st July 1955 and this is the Australian society. documented in Navy Office Minute No. 011448 of 11 November 1955, signed by the Secretary to the Your petitioners support an increase in assistance Department of the Navy. The RAN was then to low income earners in the private rental market, apparently ‘unallotted’ secretly to enable the but not at the expense of Public and Community excluding legislation to be introduced; Housing. (d) the Department of Veterans’ Affairs has said Your petitioners thus urge the Senate to reject it can find no written reason(s) for the RAN current plans in the area of public and community exclusion in the Act. In two independent Federal housing. Court cases (Davis WA G130 of 1989 and Doessel by Senator Faulkner (from 69 citizens). Qld G62 of 1990) the courts found the two ex- members of the RAN had been ‘allotted’. Davis Repatriation Benefits had served in Malaya in 1956 and 57. As a result To the Honourable the President and Members of of these cases ex-members of the RAN who served the Senate in Parliament assembled in Malaya and who had, at that time, claims before Monday, 26 May 1997 SENATE P3559 the Department of Veterans’ Affairs for benefits, (iii) ‘They were in no danger’, (November 1956 had their claims accepted. Eight weeks after the The Hon. Dr Cameron representing the Minister for Doessel decision the Act was amended to require Repatriation in the Senate). They shared the same allotment to have been by written instrument. In danger as all other Australian Service personnel parliament, it was claimed the amendment was serving in Malaya at the time. necessary to restore the intended purpose of the (iv) ‘They were not on Special Overseas exclusion, reasons for which can not, allegedly, be Service’, (in a letter from the office of The Hon. found. Bronwyn Bishop Minister for Defence Industry (e) Naval personnel were not, as claimed, bound Science and Personnel to Mrs Williams of Adelaide by the ‘Special Overseas Service’ requirements, dated October 1996). Requirement for Special introduced in the Repatriation (Special Overseas Overseas Service was introduced in 1962 without Service) Act 1962. This Act became law some two retrospective conditions, therefore has no relevance years after the war in Malaya ended; to events of 1960. (f) as Australian citizens serving with the Royal (v) ‘They were not on Active Service’, (in a Australian Navy they complied with three of the letter from the office of The Hon. Bronwyn Bishop four requirements for ‘active service’. The fourth, Minister for Defence Industry Science and Person- for ‘military occupation of a foreign country’ did nel dated October 1996). It is now, as it was then, not apply to Malaya. that Service Personnel had to comply with one of Your petitioners therefore request the Senate to three requirements for Active Service, this group remove the discriminatory exclusion in the Act complied with two, or twice as many as is needed. thereby restoring justice and recognition of honour- The one that they did not comply with was ‘is in able ‘active service’ with the Royal Australian military occupation of a foreign country’. Navy in direct support of British and Malayan Your petitioners therefore request that the Senate forces during the Malayan Emergency between should remove the discriminatory exclusion in the 1955 and 1960. Act, thereby giving the Australian sailors involved by Senator Cooney (from 10 citizens) and, comparative recognition with the Army and RAAF personnel that served at the same time, and all Senator Kernot (from 39 citizens). other Australians who have served their Country on Repatriation Benefits active service overseas. To the Honourable the President and Members of by Senator Reynolds (from 12 citizens). the Senate in Parliament assembled: Petitions received. The Petition of the undersigned shows that only one group have been excluded from eligibility for NOTICES OF MOTION the repatriation benefits in the Veterans Entitle- ments Act 1986 (the Act) where such group has Aboriginal and Torres Strait Islander performed honourable overseas ‘active service’. Affairs That group being members of the Royal Austral- Senator BOLKUS (South Australia)—I ian Navy who served in Malaya between 1955 and give notice that, on the next day of sitting, I 1960 which were excluded under ‘Operational shall move: Service’ at Section 6. (1)(e)(ii) of the Act. That the Senate— The various claims made in Statements to the House and the Senate and the contents of corres- (a) recognises that 27 May 1997 is the 30th pondence from various Ministers to maintain the anniversary of the referendum that amended exclusion are answered as follows, the answers are placitum 51 (xxvi) of the Constitution, from documents obtained under FIO and from the giving the Commonwealth the power to public record: make special laws for any race, in particular Aboriginal and Torres Strait Islanders; (i) ‘They were never allotted for operational service’, (contained in a letter from the Hon. Con (b) reaffirms its support for the outcome of the Sciacca Minister for Defence Science and Person- referendum which received the unprecedent- nel 1995). A letter from the Secretary Department ed support of 90.77 per cent of the Austral- of the Navy to Treasury dated 11 November 1955 ian people; stated ‘the date that the Navy were allotted for (c) recognises that the referendum was passed operational service was 1 July 1955’. with the intent that the power conferred on (ii) ‘Members of the RAN were only doing the the Commonwealth should only be used for duty for which they had enlisted’ October 1956 The the benefit of the Aboriginal and Torres Hon. Dr Cameron representing the Minister for Strait Islander peoples; Repatriation in the Senate. This applies to Service (d) affirms the statements made at the time by personnel everywhere. the political leaders of the time, in support P3560 SENATE Monday, 26 May 1997

of the referendum, in particular the com- Reaffirming the abhorrence of racism shared by ments made by: the Australian people and their Federal and State (i) the Prime Minister, Mr Harold Holt, who Governments; said: Reaffirming Australia’s recognition of the ‘We cannot allow it to be said that our Universal Declaration of Human Rights, the Constitution discriminates against some International Convention on the Prevention and people who live within our shores—the Punishment of the Crime of Genocide and the Aborigines. Nor is it, we believe, accept- International Convention on the Prevention of All able to the Australian that the national Forms of Racial Discrimination; parliament should not have power to Recalling the Parliament’s commitment in make special laws for the people of the October 1996 to the principles of racial toler- Aboriginal race where that is in their best ance; and interests.’, Recognising the profound economic and social (ii) the Deputy Leader of the Country Party, disadvantage suffered by Aboriginal and Torres Mr Doug Anthony, who said: Strait Islander people: ‘. . . words which can be read as discri- (a) affirms that the tabling of Bringing them minating against the Aboriginal race will Home, the report of the National Inquiry be removed. This would give the into the Separation of Aboriginal and Torres Commonwealth, for the first time, power Strait Islander Children from Their Families, to make special laws for the benefit of presents the nation with an unprecedented Aboriginal people throughout Australia historical opportunity to render justice and ...’, and restitution to indigenous Australians, for the (iii) the Leader of the Opposition and Leader good of all Australians; of the Australian Labor Party, Mr Gough (b) acknowledges the immense trauma inflicted Whitlam, who said: on the Aboriginal and Torres Strait Islander ‘The welfare of Australian Aboriginals peoples of Australia as a result of the requires this referendum be carried. The separation of Aboriginal and Torres Strait good name of Australia demands it be Islander children from their families under carried overwhelmingly . . .’, and past government policies in place from ‘. . . The Commonwealth...must now before the time of Federation until the early be empowered to accept that responsibili- 1970s; ty on behalf of Aboriginals, as it already (c) affirms that: does for all other Australians.’; (i) these racially discriminatory policies and (e) recognises the importance, both domestically their continuing consequences are a and internationally, of this referendum in matter of national shame, and defining Australia’s commitment to act in a (ii) current and future Federal and State non-racially discriminatory manner and to Governments are responsible for assisting the pursuit of reconciliation and social Aboriginal and Torres Strait Islander cohesion; and people to rectify the ongoing effects of (f) calls on all Australian Governments and those policies; Parliaments to respect and honour both the (d) affirms its commitment to a just and proper letter and spirit of the referendum. settlement of the grievances of people The DEPUTY PRESIDENT—That is a adversely affected by those policies; and very long notice, Senator. It may be edited in (e) on behalf of the nation: publishing. (i) unreservedly apologises to Aboriginal and Aboriginal and Torres Strait Islander Torres Strait Islander Australians for the separation policies, Affairs (ii) calls on the Federal and State Govern- Senator FAULKNER (New South Wales— ments to establish: Leader of the Opposition in the Senate)—I (A) in consultation with the Aboriginal and give notice that, on 29 May, I shall move: Torres Strait Islander community, That the Senate— appropriate processes to provide com- Recalling the Australian people’s overwhelming pensation and restitution, including decision in the 1967 referendum to confer upon assistance for the reunification of fami- the Commonwealth Parliament responsibility for lies and counselling services, and enhancement of the rights and well-being of (B) appropriate education programs to Aboriginal and Torres Strait Islander people; enhance community awareness of the Monday, 26 May 1997 SENATE P3561

history and continuing consequences of (v) undisturbed and protected forest account past practices and policies of racial for a tiny 0.3 per cent of Australia’s land discrimination, and mass; and (iii) calls on the Federal Government to de- (b) calls on the Government to: clare a national day in recognition and (i) reduce the unsustainable rate of logging remembrance of the great suffering which in East Gippsland forests and the conver- flowed from the separation policies, and sion of native forests to shining gum to affirm Australia’s commitment to plantations, and justice for indigenous Australians, today and for the future. (ii) support the growing eco-tourism industry in East Gippsland. Landmines Energy Research and Development Senator MARGETTS (Western Austral- Corporation ia)—I give notice that, on the next day of sitting, I shall move: Senator STOTT DESPOJA (South Aus- That the Senate— tralia)—I give notice that, on the next day of sitting, I shall move: (a) notes: That the Senate— (i) the decision by the new Labour Govern- ment in Britain to enforce a total ban on (a) notes the budget cut to the Energy Research landmines by the year 2005, and Development Corporation (ERDC); (ii) that 26 May 1997 is the National Day of (b) expresses concern that this cut is inappropri- Action in Australia run by the Australian ate as it will result in: section of the ‘International Campaign to (i) a cut back to research and development ban Landmines’, and into alternative and renewable energy (iii) the International Campaign is calling for resources for efficient and sustainable the Australian Government to enforce its energy use in Australia, and promised total ban on landmines by (ii) destruction of a vital link between the destroying Australia’s own stockpile of innovation and implementation of that weapons and working seriously towards innovation; and a global unconditional ban; and (c) expresses concern that the Coalition has: (b) calls on the Government to: (i) broken its election promises to retain (i) destroy its stockpile of anti-personnel support for the ERDC and continue its landmines, funding at current levels, and (ii) take a leading role globally to ensure (ii) cut back yet another innovative industry landmines are banned, and of the future. (iii) pursue a ban through the pro-ban country Scrutiny of Bills Committee forum known as the Ottawa process. Senator COONEY (Victoria)—I give Logging and Woodchipping notice that, on the next day of sitting, I shall Senator LEES (South Australia—Deputy move: Leader of the Australian Democrats)—I give That the Standing Committee for the Scrutiny of notice that, on the next day of sitting, I shall Bills be authorised to hold a meeting during the move: sitting of the Senate on 28 May 1997, from 9.30 am to 10.30 am, to complete its deliberations in That the Senate— relation to the Crimes Amendment (Forensic (a) notes: Procedures) Bill 1997. (i) at the time of white settlement, 10 per cent of Australia was forested, Consideration of Appropriation Bills by Legislation Committee (ii) today only 5 per cent of Australia is forested, with 3 per cent being eucalypt Senator CAMPBELL (Western Australia— forest and 2 per cent other types of forest, Parliamentary Secretary to the Treasurer)—I (iii) only 1 per cent of Australia is covered give notice that, on the next day of sitting, I with protected forest, shall move: (iv) only 1 per cent of Australia is covered That the order of the Senate of 12 December with undisturbed forest, and 1996, relating to estimates hearings, be varied to P3562 SENATE Monday, 26 May 1997 provide that the Environment, Recreation, Com- (iii) the arrest of civilian protest leaders, who munications and the Arts Legislation Committee be face court proceedings on 25 June 1997 authorised to meet to hear evidence in relation to on charges of unlawful assembly, and the 1997-98 Budget estimates on 5 June and 6 June (iv) commentary that these peaceful protests, 1997. with the actions of Brigadier General Legal and Constitutional References Singirok and anti-war soldiers, stopped the mercenary initiative by PNG with Committee Sandline International on Bougainville; Senator CHRIS EVANS (Western Austral- and ia)—At the request of Senator McKiernan, I (b) calls on the Australian Government to: give notice that, on the next day of sitting, he (i) communicate to the PNG Government, in will move: the strongest possible terms, its opposition That the time for the presentation of the report to the arrest and trial of peaceful protest- of the Legal and Constitutional References Com- ers and the public order law, and mittee on the need to protect Australian citizens (ii) oppose the use of mercenaries on against discrimination and vilification on the Bougainville and the aiding and abetting grounds of their sexuality or transgender identify, of any personnel, aid or equipment trans- as dealt with by the Sexuality Discrimination Bill fer to assist PNG with the war on 1995 [1996], be extended to 30 October 1997. Bougainville, including Australian assist- Days and Hours of Meeting ance. Senator CAMPBELL (Western Australia— Nigeria: Ogoni People Parliamentary Secretary to the Treasurer)—I Senator BROWN (Tasmania)—I give give notice that, on the next day of sitting, I notice that, on the next day of sitting, I shall shall move: move: That the Senate meet on Friday, 30 May 1997, That the Senate— and that: (a) notes: (a) the hours of meeting shall be 9.30 am to 4.25 pm; (i) the current visit to Australia of Nigerian Ogoni leader, Komene Famaa, and (b) the routine of business shall be government business only; and (ii) the massive social dislocation and envi- (c) the question for the adjournment shall be ronmental damage being done to the proposed at 3.45 pm. homelands of the Ogoni people; (b) calls on the Australian Government to: Papua New Guinea (i) push for the expulsion of Nigeria from Senator MARGETTS (Western Austral- the Commonwealth when the Common- ia)—I give notice that, on the next day of wealth Heads of Government meet in sitting, I shall move: Britain later in 1997, That the Senate— Senator Abetz—That will help a lot. (a) notes: Senator BROWN—It will do more than (i) the peaceful protests held in Papua New doing nothing, which is what your govern- Guinea (PNG) by the non-government ment is doing. The motion continues: organisation movement, including the Melanesian Solidarity Group, the Individ- (ii) offer increased aid assistance for Nigerian ual and Community Rights Advocacy refugees who have fled to Benin, and Forum, the PNG Watch Council, trade (iii) relocate the Australian regional High unionists and students, to exercise their Commission office from Nigeria to an- socio-political rights, to protect democra- other west African country; and cy in PNG and to stop the war on (c) calls on the President of the Senate to write Bougainville, to the new British foreign secretary express- (ii) the existence of the public order law in ing the concerns of the Senate about the PNG which restricts the rights of PNG treatment of the Ogoni people and urging citizens to exercise their political rights the British Government to also push for the through public meetings, assembly, dem- expulsion of Nigeria from the Common- onstrations or pickets, wealth. Monday, 26 May 1997 SENATE P3563

Hazardous Waste grounds, have all been negatively affected by fee paying, and Senator LEES (South Australia—Deputy Leader of the Australian Democrats)—I give (iii) the report found that, after the introduc- tion of fee paying postgraduate programs notice that, when business of the Senate is in 1989, fees have had a ‘clearly observ- called on at a later hour this day, I shall able deterrent effect’ on enrolments, in withdraw business of the Senate notices of particular on women, Aboriginal students motion Nos 2 and 3 standing in my name for and people of low socio-economic status; today for the disallowance of the Hazardous and Waste (Regulation of Exports and Im- (b) calls on the Government to: ports)(OECD Decision) Regulation, as con- (i) acknowledge that fees are a direct deter- tained in statutory rules 1996 Nos 284 and rent for disadvantaged students to under- 285 made under the Hazardous Waste (Regu- take a postgraduate education, and lation of Exports and Imports) Act 1989. (ii) avoid the same results in declining access Foreign Affairs, Defence and Trade and equity for the undergraduate tertiary system by totally removing upfront fee Legislation Committee paying from higher education. Senator CALVERT (Tasmania)—At the request of Senator Troeth I give notice that, Iran: Baha’i Faith and Human Rights on the next day of sitting, she will move: Senator ABETZ (Tasmania)—I give notice That the time for the presentation of the report that, on the next day of sitting, I shall move: of the Foreign Affairs, Defence and Trade Legisla- That the Senate— tion Committee on the examination of annual reports be extended to 31 July 1997. (a) strongly condemns: (i) the death sentences for apostasy imposed Legal and Constitutional Legislation by the Iranian courts on Mr Musa Talibi Committee and Mr Dhabihu’llah Mahrami, two Senator ABETZ (Tasmania)—I give notice members of the Baha’i Faith, particularly that, on the next day of sitting, I shall move: noting the gross violation of freedom of religion these sentences involve in contra- That the time for the presentation of the report vention of the Universal Declaration of of the Legal and Constitutional Legislation Com- Human Rights and the International mittee on the provisions of the Human Rights Covenant on Civil and Political Rights, to Legislation Amendment Bill 1996 be extended to which Iran is a party, and 17 June 1997. (ii) the imposition of death sentences against Higher Education Council Report two other Baha’is, Mr Kayvan Khalajabadi and Mr Bihnam Mithaqi, Senator MARGETTS (Western Austral- held by the Iranian authorities, again for ia)—I give notice that, on the next day of reasons arising from their religious be- sitting, I shall move: liefs; That the Senate— (b) calls for the immediate revocation of all (a) notes: such death sentences and the immediate release of individuals involved; (i) the launch of the Higher Education Coun- cil report, The effects of the introduction (c) deplores the continuing practice in Iran of of fee paying postgraduate courses on short- and long-term detention of Baha’is access for designated groups, for their religious beliefs and other grave (ii) the report shows that, based on compre- breaches of human rights against the hensive statistical analysis of 1993 and Baha’is in Iran, including: 1995 data of the Department of Employ- (i) the banning of the sacred institutions of ment, Education, Training and Youth the Baha’i community and the criminali- Affairs, designated groups, such as sation of membership of these institutions, women, Aboriginal and Torres Strait (ii) denial of education and employment of Islander people, people with disabilities, individual Baha’is, rural and isolated students, socio- economically disadvantaged people and (iii) continuing failure to remedy the confis- people from non-English speaking back- cation and destruction of holy places and P3564 SENATE Monday, 26 May 1997

community and personal property of (i) the 6-year battle of the people of Baha’is, Yamdena Island, in the Tanimbar Islands (iv) continuing restrictions on freedom of of Indonesia, to save their forests, which movement and the right of assembly, and they depend on for their economic and physical survival, from destruction by (v) discrimination by the judiciary; and logging companies, (d) calls on the Government of Iran to ensure (ii) that, despite Yamdena being designated a that no more Baha’is are subjected to sen- conservation area by the Indonesian tences of death or imprisoned for their Government in 1971, the same Govern- religious beliefs and that all current senten- ment has awarded licences since 1991 to ces of this nature against Baha’is are re- logging companies which are destroying voked and the individuals involved immedi- the environment, ately released; (iii) the Yamdena people have been brutally (e) notes, with concern: suppressed, beaten, detained and tortured (i) the failure of Iran to respond to the rec- in protests against loggers since 1991, ommendations of Mr Abdelfattah Amor, culminating in the loggers leaving Indo- the United Nations Special Rapporteur for nesia in 1993 when the Indonesian Religious Intolerance, regarding the Government was forced to review the violation of religious freedom in Iran, and situation, and urges the Government of Iran to take immediate steps to implement all those (iv) the Indonesian Government reissued recommendations, particularly as they logging licences in 1995 to State-owned relate to Baha’is and Protestant religious logging companies and are presently in a minorities, court battle with Yamdena people newly charged with anti-government activities; (ii) the general continuation of violations of and human rights in Iran, including the high number of executions in the absence of (b) calls on the Government of Indonesia and, internationally recognised safeguards, in particular, the Indonesian Minister of cases of torture and cruel, inhuman or Forestry to: degrading treatment or punishment, (i) cancel the logging concession on Yamd- (iii) the failure to meet international standards ena Island immediately, with regard to the administration of (ii) recognise the traditional land rights of the justice and the absence of due process of people of Yamdena, and law, and (iii) ensure that the local people are fully (iv) violations of the right to peaceful assem- involved in any future decisions so that bly and restrictions on the freedom of fair sharing of benefits and environmental expression, thought, opinion and the sustainability from natural resource ex- press, ploitation in the Tanimbar Islands is (f) calls on the Government of Iran to ensure ensured. full respect for human rights within its Sri Lanka borders; (g) commends successive Australian govern- Senator MARGETTS (Western Austral- ments for their long-standing and continuing ia)—I give notice that, on the next day of support of religious freedom of the Baha’is sitting, I shall move: in Iran, particularly in United Nations That the Senate— forums; and (a) notes: (h) urges that further bilateral and multilateral diplomatic measures be taken in support of (i) the current major Sri Lankan military religious freedoms of the Baha’is and push into the Tamil-held Wanni mainland religious freedom generally. involves 20 000 troops, airforce attacks, naval shelling and artillery fire directed at Logging in Indonesia civilian centres, Senator MARGETTS (Western Austral- (ii) the continuing war between Sri Lanka ia)—I give notice that, on the next day of and the Tamil people has had profound sitting, I shall move: social, human and environmental effects, with 825 000 displaced Tamil people That the Senate— living with no access to water, food or (a) notes: medicine, and abuses, such as disappear- Monday, 26 May 1997 SENATE P3565

ances, extra-judicial killings, rape, torture, Public Interest Secrecy Committee arbitrary arrests and indefinite detention, occurring in the context of the ongoing Motion (by Senator Murray, at the request conflict, and of Senator Kernot) agreed to: (iii) at the 53rd session of the Human Rights That general business notice of motion No. 1 Commission in April 1997, 53 non-gov- standing in the name of Senator Kernot for today, ernmental organisations called for the relating to the establishment of a select committee immediate withdrawal of the Sri Lankan of party leaders on public interest secrecy, be security forces from the occupied Tamil postponed till 23 June 1997. homeland and for peace negotiations to commence with third-party mediation; Finance and Public Administration and References Committee (b) calls on the Australian Government to: Motion (by Senator Allison) agreed to: (i) take urgent action to press the Sri Lankan Government to work for a political solu- That business of the Senate notice of motion No. tion to the conflict between the Sri 6 standing in the name of Senator Allison for Lankan Government and the Tamil peo- today, relating to the reference of matters to the ple, and Finance and Public Administration References (ii) use opportunities in United Nations for- Committee, be postponed till the next day of ums to press the Sri Lankan Government sitting. to withdraw its security forces from the occupied Tamil homeland and to instigate Corporations and Securities Committee peace negotiations to bring an end to the Motion (by Senator Chris Evans, at the conflict. request of Senator Murphy) agreed to: COMMITTEES That general business notice of motion No. 405 standing in the name of Senator Murphy for today, Economics Legislation Committee relating to reference of a matter to the Joint Extension of Time Committee on Corporations and Securities, be postponed till 16 June 1997. Motion (by Senator Ferguson)—by leave—agreed to: Qantas That the time for the presentation of the report Motion (by Senator Woodley) agreed to: of the Economics Legislation Committee on the provisions of the Taxation Laws Amendment That general business notice of motion No. 563 (Infrastructure Borrowings) Bill 1997 be extended standing in the name of Senator Woodley for today, to 28 May 1997. relating to Qantas employees, be postponed till 28 May 1997. ORDER OF BUSINESS Logging in Malaysia Rural and Regional Affairs and Transport References Committee Motion (by Senator Margetts, at the request of Senator Brown) agreed to: Motion (by Senator Woodley) agreed to: That general business notice of motion No. 537 That business of the Senate order of the day No. standing in the name of Senator Brown for today, 1 relating to the presentation of the report of the relating to the Penan people of Malaysia, be post- Rural and Regional Affairs and Transport Refer- poned till the next day of sitting. ences Committee on the commercial utilisation of native wildlife, be postponed till a later hour. Logging and Woodchipping Workplace Relations Regulations Motion (by Senator Margetts, at the Motion (by Senator Murray) agreed to: request of Senator Brown) agreed to: That business of the Senate notice of motion No. That business of the Senate notice of motion No. 5 standing in the name of Senator Murray for 4 standing in the name of Senator Brown for today, today, relating to the disallowance of a Workplace relating to the disallowance of Export Control Relations Regulations (Amendment), be postponed (Regional Forest Agreements) Regulations, be till 16 June. postponed till the next day of sitting. P3566 SENATE Monday, 26 May 1997

CUSTOMS TARIFF AMENDMENT A doubling of motor vehicle exports to 100,000 BILL (No. 2) 1997 units per year. A trebling of components exports to $3 billion First Reading Up to 10,000 new jobs. Motion (by Senator Chris Evans at the That’s jobs growth and balance of payments request of Senator Cook) agreed to: correction—the two most pressing economic issues That the following bill be introduced: facing the nation. A Bill for an Act to amend the Customs Tariff This measure does not breach Australia’s APEC Act 1995, and for related purposes. commitment to free trade—that remains a vital Motion (by Senator Chris Evans) agreed goal. to: Nor does it signal a return to the 50s, 60s or 70s. That this bill may proceed without formalities Rather, it continues the scheduled reductions in and be now read a first time. place to 2000, it puts in place a 5-year freeze to Bill read a first time. 2005, recognising that we are already well ahead of the game, and it ensures that the rest of the Second Reading world catches up to us, because unilateral disarma- ment on tariffs is not in Australia’s best interest. Senator CHRIS EVANS (Western Austral- In announcing labor’s car plan we called for a ia) (4.11 p.m.)—I table the explanatory bipartisan approach—because industry needs the memorandum, and move: certainty that goes beyond a single term of the That this bill be now read a second time. parliament. I seek leave to have the second reading So far the government has delivered the industry speech incorporated in Hansard. anything but certainty. Leave granted. While the prime minister has said there would be no "slash-and-burn" policy on the car industry, the The speech read as follows— treasurer asks, over port and cigars at the common- This bill puts into place key elements of labor’s wealth club, "why don’t we just let mitsubishi go?" new automotive industry plan. This sort of confusion is bad for investment and Its object is to give the Australian automotive bad for jobs. industry what it needs most of all—certainty. And the federal government is the only major The bill gives members a simple choice—a vote for player to have not responded to labor’s plan. or against the Australian automotive and compo- This bill, which encompasses the key elements of nents industry. labor’s car plan, will force the government to This bill provides a level of certainty in Australia’s respond. motor vehicle and components industry by provid- ing that: That response should be to back the bill, because the Australian automotive industry isn’t just ford, The tariff remains at 15 per cent until at least 31 holden, mitsubishi and toyota. December 2004; The industry includes over 200 components manu- There be continuation of a scheme designed to facturers across the country (such as BTR engineer- enhance the industry’s integration into the interna- ing, for example, which employs 600 people in the tional marketplace (currently the export facilitation deputy prime minister’s electorate). scheme), which meets our international trade obligations, until at least 31 December 2004. This is a government which has hidden on every major industry policy issue. Labor’s plan also provides for: The prime minister has hidden rather than go A comprehensive review of the industry’s to Newcastle to see the damage caused to the position in 2003 to determine the assistance lives of 2,500 steelworkers. needed beyond 2005, (taking full account of the impact on regional Australia and the progress of The industry minister hid at the crown casino our trading partners in reducing their barriers to when he should have been at Newcastle. trade). And now the government are hiding the final Continuation of the duty-free allowance and report of the productivity commission rather more support for industrial research and develop- than release it to the public. ment. With the introduction of this bill the time for hiding Against our plan, industry has committed to: is over. Monday, 26 May 1997 SENATE P3567

The bill gives members a simple choice—a vote for AYES the Australian automotive industry or a vote against Ray, R. F. Schacht, C. C. it. Stott Despoja, N. West, S. M. This bill is not about standing still. If not imple- Woodley, J. mented, it’s about opportunities foregone—10,000 NOES jobs and a 200-300 per cent increase in exports. Abetz, E. Alston, R. K. R. I urge all senators to support this bill. Boswell, R. L. D. Brownhill, D. G. C. Calvert, P. H. * Campbell, I. G. Debate (on motion by Senator Calvert) Coonan, H. Crane, W. adjourned. Eggleston, A. Ellison, C. Ferguson, A. B. Ferris, J LOGGING AND WOODCHIPPING Gibson, B. F. Heffernan, W. Motion (by Senator Margetts) proposed: Herron, J. Hill, R. M. Kemp, R. Knowles, S. C. That there be laid on the table by the Minister Lightfoot, P. R. Macdonald, I. for the Environment (Senator Hill), no later than Macdonald, S. MacGibbon, D. J. the moving of the adjournment of the Senate on 26 McGauran, J. J. J. Minchin, N. H. May 1997, all documents from 1 January 1996 to Newman, J. M. O’Chee, W. G. the present, held by Environment Australia, includ- Parer, W. R. Patterson, K. C. L. ing the Australian Heritage Commission, relating Payne, M. A. Reid, M. E. to: Tierney, J. Troeth, J. (a) the 1997-99 export licences for woodchips Vanstone, A. E. Watson, J. O. W. from Western Australian native forests PAIRS which are listed or interim-listed on the Cook, P. F. S. Tambling, G. E. J. Register of the National Estate; and Reynolds, M. Synon, K. M. (b) the Deferred Forest Agreement and the Sherry, N. Chapman, H. G. P. Regional Forest Agreement, as they relate * denotes teller to Western Australian native forests which are listed or interim-listed on the Register of Question so resolved in the affirmative. the National Estate. COMMITTEES Question put: That the motion (Senator Margetts’s) be agreed Superannuation Committee to. Meeting The Senate divided. [4.17 p.m.] Motion (by Senator Calvert on behalf of (The Acting Deputy President—Senator Senator Watson)—by leave—agreed to: D.J. MacGibbon) That the Select Committee on Superannuation be Ayes ...... 35 authorised to hold a public meeting during the sitting of the Senate on 26 May 1997, from 8 p.m., Noes ...... 34 to take evidence for the committee’s inquiry into —— the appropriateness of current unfunded defined Majority ...... 1 benefit superannuation schemes’ application to —— judges and parliamentarians. AYES Allison, L. Bishop, M. DOCUMENTS Bolkus, N. Bourne, V. Brown, B. Carr, K. Department of the Senate Childs, B. K. Collins, J. M. A. The ACTING DEPUTY PRESIDENT Collins, R. L. Conroy, S. Cooney, B. Crowley, R. A. (Senator MacGibbon)—I present a report, Denman, K. J. Evans, C. V. * prepared by Quadrant Research Services, Faulkner, J. P. Foreman, D. J. entitled Department of the Senate: survey of Forshaw, M. G. Gibbs, B. senators’ satisfaction with the services provid- Harradine, B. Hogg, J. ed by the department, dated May 1997. Kernot, C. Lees, M. H. Lundy, K. Mackay, S. ASSENT TO LAWS Margetts, D. McKiernan, J. P. Murphy, S. M. Murray, A. Messages from His Excellency the Gover- Neal, B. J. O’Brien, K. W. K. nor-General were reported informing the P3568 SENATE Monday, 26 May 1997

Senate that His Excellency had, in the name I seek leave to have the second reading of Her Majesty, assented to the following law: speeches incorporated in Hansard Hindmarsh Island Bridge Act 1997 Leave granted. COMMITTEES INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (No. 1) 1997 Electoral Matters Committee This bill will provide legislative authority for the Membership entry into force of an Exchange of Notes amending the comprehensive double taxation agreement The ACTING DEPUTY PRESIDENT—A between Australia and Vietnam. The bill will insert message has been received from the House of the text of the Notes into the International Tax Representatives acquainting the Senate of a Agreements Act 1953 as a schedule to that act. variation in the membership of the Joint The Exchange of Notes with Vietnam took place Standing Committee on Electoral Matters. on 22 November 1996. The notes give effect to Australia’s undertaking in 1992, at the time the INTERNATIONAL TAX double taxation agreement with Vietnam was signed, that Australia would grant tax sparing for AGREEMENTS AMENDMENT BILL specified Vietnamese tax concessions. (No. 1) 1997 Tax sparing describes the situation under which CRIMES AMENDMENT (FORENSIC Vietnam offers tax concessions to attract foreign investment. Under the proposed tax sparing credit PROCEDURES) BILL 1997 arrangements, an Australian investor taking advan- tage of specified tax concessions is deemed to have CONSTITUTIONAL CONVENTION paid the tax actually forgone by Vietnam for the (ELECTION) BILL 1997 purposes of Australia’s foreign tax credit rules. First Reading Without tax sparing credits, Vietnamese tax concessions granted to Australian residents could Bills received from the House of Represen- be negated by Australia’s foreign tax credit rules, tatives. which would effectively "top up" Vietnamese taxes paid to the level of tax that would be payable on Senator HILL (South Australia—Minister an equivalent amount of Australian domestic for the Environment)—I indicate to the Senate income. that those bills which have just been an- To qualify for tax sparing under these notes, nounced by the Acting Deputy President are three tests must be met. First, the activity must being introduced together. After debate on the qualify for a tax concession under a Vietnamese motion for the second reading has been law specified in the notes. Secondly, the incentive adjourned, I will be moving a motion to have must be for a specified activity, targeted to genuine economic development and active business income, the bills listed separately on the Notice Paper. which is listed in the notes. A third test excludes I move: certain activities and arrangements from tax sparing That these bills may proceed without formalities, and a general anti-avoidance provision is also may be taken together and be now read a first time. included. Question resolved in the affirmative. A benchmark rate of 20 per cent has been set to determine the Vietnamese tax otherwise payable. Bills read a first time. This is because at the time the notes were negoti- ated a variety of nominal tax rates were applicable Second Reading to foreign investors in Vietnam ranging from 25 per cent down to 10 per cent. Consequently it was Senator HILL (South Australia—Minister essential to establish an underlying tax rate to act for the Environment) (4.24 p.m.)—I table a as a benchmark to calculate the amount of tax correction to the replacement explanatory forgone by Vietnam under a relevant tax conces- memorandum relating to the Crimes Amend- sion. ment (Forensic Procedures) Bill 1997 and a As is customary in Australian tax sparing revised explanatory memorandum relating to arrangements, the tax sparing benefit is provided to the Constitutional Convention (Election) Bill Australian residents for a limited period of 10 years 1997 and move: commencing from the date of effect, of the 1992 Agreement—that is, from the commencement of the That these bills be now read a second time. year of income that began on 1 July 1993. There Monday, 26 May 1997 SENATE P3569 is provision for a subsequent extension of this CRIMES AMENDMENT (FORENSIC period. Provision is also to be made for amendment PROCEDURES) BILL 1997 of assessments made before the notes enter into force. 1. This bill is long overdue. Its purpose is to amend the Crimes Act 1914 to implement the recommen- The notes will enter into force when further dations of the ALRC Report No. 2 on Criminal diplomatic notes are exchanged advising that the Investigation. necessary constitutional processes to give the Even in 1975, the ALRC was of the view that agreement the force of law in Australia has been ‘the probative value of this kind of evidence is such completed. The finalisation of the tabling processes that it ought to be obtainable and admissible, related to taking binding treaty action and the provided that enforceable safeguards for the enactment of this bill will complete the processes accused are built into the system’. required of Australia for those purposes. 2. The Review of Commonwealth Criminal Law It is not possible to quantify the tax forgone by the noted that there was no general commonwealth law Australian Revenue in providing tax sparing credits dealing with the medical or forensic examination for the Vietnamese tax incentives with precision. of a person in lawful custody, and that the majority Much depends on the amount of the income subject of State and Territory laws merely authorised a to tax sparing, the amount of the reduction or medical examination where reasonable grounds exemption applied to the particular income, the exist to believe that an examination of a person nature of the investment income, the legal struc- will afford evidence as to the commission of the tures used by Australians to make these investments crime or offence involved (cf s.353A(2) Crimes Act and the ability of Australian taxpayers to utilise the (NSW), s. 236 of the Criminal Code (WA), and s.8 tax spared foreign tax credits. Subject to these 1 of the Summary Offences Act 1953 (SA)) qualifications, an annual cost to Revenue of around $10—15 million is estimated. 3. In such general provisions, doubt exists as to the extent of the power, even on the basic question of Under new arrangements introduced by this whether or not samples may be taken without Government to promote greater community aware- consent. The recent Fernando case in NSW clearly ness and discussion of treaty obligations, these demonstrates this. In that case, the two men notes and a National Interest Analysis were tabled charged with the murder of nurse Sandra Hoare, in this House on 11 February 1997. The notes have refused to supply blood samples and challenged the already been reviewed by the Joint Standing NSW legislation. Committee on Treaties. The NSW Court of Criminal Appeal held that the This is the first tax treaty to be reviewed by the legislation did not in fact authorise the taking of Committee. It held two hearings on this treaty and blood samples without consent. took submissions from the Australian Taxation 4. Following this decision, an amendment was Office, the Institute of Chartered Accountants and quickly made to enable blood, hair or saliva the Australian Society of Certified Practising samples to be taken in NSW without consent, Accountants. During that process a number of although no safeguards were added at that time. important issues concerning these notes were Indeed, the fact that safeguards vary between clarified. The Committee reported on this treaty in jurisdictions is of concern. Some of the current March. legislation contains virtually no safeguards at all. The tabling and Committee hearings have permitted Other acts have basic protections such as examin- significant public debate and clarification of these ation by a medical practitioner, limitation on the notes already. presence of persons of the opposite sex during the examination, and provision to the person of a copy The Committee recommended that the exclusion of of the report. Even the requirement for a court accounting and auditing services from tax sparing order is not consistently provided where there is should be kept under review and if Vietnamese lack of consent or where the use of force is re- legislation is amended, negotiations commence to quired. For example, none is required in South provide tax sparing. Importantly, the Committee Australia or Western Australia. supported early ratification. 5. Fulfilling the need for consistent, and if possible The Government will be responding to the recom- uniform, laws throughout Australia, especially those mendations shortly. laws which profoundly affect the rights of Austral- The Government believes that this Exchange of ian citizens in the criminal justice system, is a Notes will contribute positively to the strengthening priority for this government. We have seen the of trade, investment, and wider relationships passage of the foundation provisions of the Model between Australia and Vietnam. Criminal Code, which is a major step in modelling a co-operative scheme for removing basic inconsis- I commend the bill to the Senate. tencies in principles of criminal responsibility P3570 SENATE Monday, 26 May 1997 throughout Australia. The Crimes (Search Warrants and if necessary require, suspects to undertake and Powers of Arrest) Act 1994 performed the relatively simple procedures either to exonerate same function in relation to arrest and search themselves or to provide evidence that could powers. confirm their involvement in a relevant offence. 6. The Model Criminal Code Officers Committee 11. The bill provides a comprehensive scheme for (which is the body working towards a uniform obtaining forensic samples from adults, children criminal Code to be adopted by all Australian under the age of 18 years, and persons incapable of jurisdictions) prepared a model Forensic Procedures managing their own affairs. It sets out the powers Bill which was widely circulated for comment to and obligations of police when carrying out the about 600 groups and individuals, representing procedures, and details the many safeguards to many interests defence lawyers, investigators, protect the rights of individuals, with particular prosecutors, judges, academics, law societies, bar provisions for Aboriginal persons, Torres Strait councils, civil liberties groups, human rights Islanders, children and incapable persons. These organisations, women’s groups, victims groups, safeguards include the right to an interpreter and legal aid organisations, government Departments the provision of full information about the relevant and interested individuals. When the Common- procedure and the suspect’s rights, in a language wealth commenced its own consultation process, a likely to be understood by the person. revised bill was again circulated. Over 60 submis- 12. However, in my view, a most potent safeguard sions were received, analysed, and as far as practi- in the present bill is provided by the legislative cable, recommendations were incorporated into the barrier to admissibility of evidence obtained from bill. Few submissions advocated the complete a forensic procedure carried out in breach of the abandonment of the exercise. Most were concerned legislation. If there is any breach, the prosecution with striking the correct balance between the civil must justify to the court that there are good reasons liberties of the individual and the requirement for why the statutory scheme was not followed. In such the police to have adequate investigative powers. a case, the probative value of the evidence will not, 7. Both the Model Criminal Code Officers Commit- by itself, justify its admission. The bill indicates a tees Bill and the commonwealth bill are modelled number of matters which the court must take into on the Victorian legislation, which, in turn imple- account in considering whether to admit such mented the recommendations of the Victorian evidence, including the gravity of the contravention Consultative Committee on Police Powers of and whether it was intentional or reckless. Investigation. Seldom has a proposal requiring a Evidence is also inadmissible by the prosecution, delicate balance of civil liberties and law enforce- with no discretion on the part of the court, where ment concerns been subjected to such a degree of material is not destroyed in the circumstances scrutiny. required by the legislation. 8. This bill was introduced in Parliament and 13. I commend the bill to the Senate. passed by the House of Representatives in late 1995. The bill lapsed when the Parliament was CONSTITUTIONAL CONVENTION prorogued in 1996. This government has made (ELECTION) BILL 1997 minor but important changes to the bill, most of The bill provides for the election of fifty percent which increase the safeguards for suspects who of delegates to the constitutional convention which undergo a forensic procedure. The changes to the is to meet for one session of up to ten days in bill are in the most part, a response to the recom- December this year. The convention will provide mendations of the Senate Legal and Constitutional a forum for discussion about whether or not our Legislation Committee. That committee made present Constitution should be changed to a repub- twenty recommendations, the majority of which lican one. In particular, will be implemented by this proposed legislation. The changes to the original bill fulfil another of - whether or not Australia should become a this government’s election commitments; namely republic; to "review the Forensic Procedures Bill to ensure - which republic model should be put to the that the bill does not unduly infringe the rights and electorate to consider against the status quo; liberties of citizens." and 9. It is crucial to this legislation that it be framed - in what time frame and under what circum- to balance the public interest in obtaining evidence stances might any change be considered. relevant to the offence, against the public interest In establishing the convention, I am conscious of in upholding the physical integrity of the suspect. the view among many Australians in favour of a The government believes that this bill now achieves change to a republican form of government. that balance. Equally, I am conscious that the existing constitu- 10. I believe that it is quite reasonable, in the tion has served the country well, providing stable interests of effective law enforcement, to request, and effective democratic government. There are Monday, 26 May 1997 SENATE P3571 sincerely held views on both sides which deserve government can facilitate sensible consideration of full debate in public view. the more significant of these proposals. The commitment to hold the convention does not The convention will comprise 152 delegates. Half represent any decision by the government that a of the delegates will be elected by the people and change is necessary or desirable, nor any dissatis- half will be appointed. faction with the workings of the current system. The appointed delegates will include Madam President, we have always advocated that . 40 parliamentary delegates: matters of national identity should not be party political issues to be fought over by politicians. We - 20 of these will be delegates from state and are strongly committed to the principle that it is for territory parliaments. The Premier, the Leader the Australian people to determine these issues. of the Opposition and a third parliamentarian nominated by the Premier will be invited from The government’s aim is to ensure that if there each state as will the Chief Ministers of the is to be any change to our system of government, ACT and the Northern Territory; that change is achieved through a process that unites rather than divides the Australian communi- - the other 20 will be Commonwealth parlia- ty. mentary representatives, drawn from the government (12 members), the opposition (6 The constitutional convention will serve as a members), the Australian Democrats (one forum for mature discussion on the range of issues member) and one independent. This distribu- surrounding our system of government and propo- tion broadly reflects the representation of sals for an Australian republic. It will provide a parties in the parliament. process by which the wider community can become engaged in the debate. . 36 non-parliamentary delegates will be directly appointed by the government, with a view to We recognise that if people are really to have a achieving broad representation: say, to participate in the debate in some meaningful way, they must have an informed appreciation of - The appointments will ensure that groups the issues they are being asked to decide. which might not otherwise be properly represented, such as Aboriginal people and Balanced and easily understood information on Torres Strait Islanders, are able to partici- the issues will be prepared and distributed widely pate. before the election of delegates. It will explain, in - Consistent with our earlier commitments, plain English, how the existing constitutional local government will be represented. system operates. It will identify the arguments for and against change. We will approach the Austral- - At least 10 percent of government appoint- ians for Constitutional Monarchy and the Australian ments to the convention will be young Republican Movement, and others, to provide input. people aged between 18 and 25 years of The material will seek to fairly represent all sides age. of the debate and present the options with com- The government will also ensure that the ap- ments which will help the reader to work through pointments reflect a proper balance between men the advantages and disadvantages of those alterna- and women. tives. In considering appointments I will have discus- To engage the wider community in the debate, sions with the Leader of the Opposition and the public submissions will be invited to allow the government will announce its appointments to the community to inject into the convention ideas on convention before electors cast their votes for the the issues. This additional information will help to elected delegates. inform delegates of the range of views in the community. The number of delegates to be elected for each state and territory is broadly based on representa- The Coalition had previously contemplated tion in the Commonwealth Parliament. The 76 referring other constitutional issues to the conven- elected delegates will be divided as follows: tion, but has decided that on balance, this conven- tion should deal only with the question of a change NSW—20 delegates; to a republican form of government. Victoria—16; That is of course a complex subject which will Queensland—13; inevitably need considerable time for discussion in Western Australia—9; the convention. South Australia—8; The government is conscious of the advocacy of other proposed constitutional changes within the Tasmania—6; and community, and will consider ways in which the The ACT and Northern Territory—2 each. P3572 SENATE Monday, 26 May 1997

Delegates will be elected through a non-compul- another person. This includes pre-printing each sory secret postal ballot conducted by the Austral- return envelope with the elector’s name and address ian Electoral Commission. and a unique bar-code. In designing the election process set out in this Before votes can be counted, voters will be bill we have drawn on provisions of the Common- required to sign declarations that they have only wealth Electoral Act 1918 with changes where voted once, and include their date of birth on the necessary to cater for the differences in the election declaration. This will be checked against the Roll, process. and if there is some uncertainty the Returning Universal postal ballot systems have been used Officer must be satisfied that the declaration was with success by the Australian Electoral Commis- signed by the elector. This requirement will help to sion in a number of elections. They have also been deter or detect attempts at wholesale abuse by, for used successfully by the Victorian, Western Aus- example, fraudulent lodgement of other people’s tralian and Tasmanian State Electoral Commissions. ballot papers taken from letter boxes. Voting will be open to all those on the electoral Where an elector claims not to have received roll, and will be voluntary. ballot material, replacement ballots will be provid- ed. To ensure an elector does not vote twice, where Eligibility to nominate as a candidate will be both ballot papers are received, the Returning open to Australian citizens who are 18 years of age Officer will decide which vote, if any, will be or older and who are entitled to vote. The bill counted. provides for a non-refundable nomination fee of $500. Sitting Commonwealth, state and territory The bill provides offence and penalty provisions parliamentarians will not be able to stand for for interference with votes and electoral processes election. which draw on provisions of the Commonwealth Electoral Act 1918. The Australian Electoral Commission will send The bill allows for an appeal process similar to ballot-papers and a list of candidates to electors that used in federal elections. eligible to vote. The list will show the names of all candidates and their group or individual names. Madam President, the convention will be an opportunity to involve the Australian people, as To assist voters in making their choice, candi- well as parliamentarians, in discussing whether or dates may also submit a brief statement to the not Australia should become a republic. It will Australian Electoral Commission containing provide a forum for all voices in the debate. I hope information about their group or themselves and that it will have the broad support that will help what they stand for. These statements will also be ensure it is a constructive and unifying occasion. sent to electors. I commend this bill to the House. A Senate style voting system will be used, with the option of voting above-the-line, which 94.4 per Debate (on motion by Senator Conroy) cent of electors chose to use at the last federal adjourned. election, or below-the-line. Ordered that the bills be listed on the Voting above-the-line, in Part A of the ballot- Notice Paper as separate orders of the day. paper, will involve voting for a group or non- grouped candidate in a ticket voting system. HAZARDOUS WASTE Grouped candidates will be represented on the ballot-paper by the name of the first candidate in Senator LEES (South Australia—Deputy the group and a short group name requested by the Leader of the Australian Democrats) (4.28 group. The names of those candidates not in a p.m.)—Pursuant to notice given earlier this group will be printed in Part A and they may also day, I now withdraw business of the Senate request that a name, similar to a group name, be notices of motion Nos 2 and 3, and move: printed. Grouped and ungrouped candidates may That the Hazardous Waste (Regulation of Exports submit a ticket showing the order of preferences to and Imports) (OECD Decision) Regulations, as be followed for the purpose of the distribution of contained in Statutory Rules 1996 No. 283 and preferences. made under the Hazardous Waste (Regulation of Electors choosing to vote below-the-line in Part Exports and Imports) Acts 1989, be disallowed. B of the ballot paper will vote by writing the randomly allocated candidate numbers for their The Democrats are seeking to disallow this preferred candidates in preference boxes in their one small section of the hazardous wastes order of choice. regulations because we believe that it is in The Australian Electoral Commission will put contravention of both the spirit and the letter into place mechanisms to detect any attempts to of the Basel Convention. The Basel Conven- vote more than once, and to vote in the name of tion is intended to cover all trade in hazard- Monday, 26 May 1997 SENATE P3573 ous waste—trade between OECD countries is consideration than is allowed for under these not exempt from the Basel Convention. regulations. Surely the precautionary principle Article 4(8) of that convention clearly demands that the minister must be required to requires all transboundary movements of actually make a decision, not just let them hazardous waste to be managed in an slip through in the paperwork system some- environmentally sound manner. One of the where, not get caught up in someone’s in-tray regulations we seek to disallow, regulation and not simply be deferred because a decision 21(5)(a) states: was very difficult to make. If the Minister has not granted or refused the This regulation similarly does not result in permit by the end of the day by which the Minister hazardous wastes being dealt with in an is required by regulation 20 or this regulation to environmentally friendly or environmentally have done so, the Minister is taken to have sound manner as is required by the Basel (a) for an application relating to amber list hazard- Convention. The convention is designed to ous waste (other than that waste mentioned in cover all hazardous waste trade. The OECD regulation 22)—granted the permit. is not, and should not, be exempt from that. In other words, if nothing is done, the permit The Basel convention is designed to is granted. If the minister cannot make a minimise the transboundary movement of decision, the waste gets exported anyway. If hazardous wastes. Article 4(9) suggests that the paperwork gets held up on an officer’s trade in hazardous wastes should only be desk somewhere, the waste gets exported. allowed if the state of export does not have Effectively, if it is in the too hard basket and the technical capacity and the necessary a decision cannot be made, the waste gets facilities to deal with this material—to find a exported. We are arguing here today that that suitable way of handling waste and to dispose is not environmentally sound management. of it in an environmentally sound and effi- What exactly are these amber list materials cient manner. which sound quite innocuous? If we look at So these regulations at the moment are the regulations, they are ashes and residues of really just encouraging export to get rid of the zinc, copper, aluminium, vanadium, thallium, material if treatment or disposal facilities are arsenic and mercury. They are leaching not presently in existence. In other words, residues from zinc processing, dusts and they encourage decisions to permit trade sludges such as jarosite. They are precious which could hinder the development of metal bearing residues in solid form which domestic treatment and recycling technologies contain traces of inorganic cyanides. They and facilities and, of course, they inhibit the could be lead acid batteries, whole or crushed. widely held belief that we should be They might be a list of other things. That is minimising the production of these materials just a few of them, and to go on to some of in the first place. those lists they might be wastes containing We believe that regulation 16(4) should principally inorganic constituents which may require the Australian government to consider contain metals or organic materials. They the desirability of developing, as well as might be wastes containing principally organ- using, recovery facilities in Australia so that ic constituents which may contain metals or we do not have a situation where hazardous inorganic materials, and wastes which may waste that could be dealt with here is export- contain either inorganic or organic com- ed, thus continuing a cycle where the market pounds. to recycle and treat such waste domestically I would argue very strongly that these are remains basically unstimulated. In summary, not innocuous substances. They are substances in disallowing these regulations we are seek- about which we should be highly concerned ing to bring them in line with both the spirit and indeed they are officially classified as and the letter of the Basel convention. hazardous or potentially hazardous materials. Senator HILL (South Australia—Minister We are arguing that the precautionary princi- for the Environment) (4.31 p.m.)—In some ple demands that they receive more serious ways we are revisiting a previous debate P3574 SENATE Monday, 26 May 1997 because the Australian Democrats objected to set of rules but not a set of rules that are less the provisions in the Hazardous Waste (Regu- environmentally sound. So the fear that lation of Exports and Imports) Amendment Senator Lees is seeking to introduce into this Bill, which was passed shortly after we came debate by suggesting that this process is to government. In fact, from my memory it environmentally unsound is, I submit, base- was the first bill that was passed by the less. incoming government. I have to concede that I refer to the third point that Senator Lees it did not originate with the new government. makes. I remind you that, although she In fact, it was a bill of the previous Labor seemed to be specifically debating only one government that was not passed at the time of aspect of the regulations, the effect of passing the election. this motion would be that you strike down all It was improved slightly by the incoming the regulations in respect of the OECD agree- government and then received passage in this ment. The provision that she has specifically place. But there were some parties within the referred to relates to the amber list, which she Senate which objected to the article 11 agree- specifically argues is environmentally less ment then, and still do, and they are now rigorous. attacking it at the next stage, that is, they are To start off with, she was speaking about attacking the regulations to implement the the export of hazardous wastes and argued article 11 agreements. that there is a less onerous obligation on the The first point I want to make is that minister in that regard. The relevant provision Senator Lees said that what is being done in actually relates only to the import of amber these regulations is inconsistent with the spirit wastes, Senator Lees, as I understand it. There of the bill. In fact, it is specifically provided is nothing that stops me, as minister, from for in the convention that parties can enter prohibiting that import. into article 11 agreements whereby they Senator Lees—Export. regulate the transfer of hazardous wastes, and the detail of the rules under which the transfer Senator HILL—Import as I read it and occurs may be slightly different than if such import as I am advised by my objective an agreement had not been entered into. advisers. Provided that I act within the 30 days, I prohibit the import. So again I respect- I understand the agreement for OECD fully suggest to you that your fear is unfound- countries was entered into in 1992. It is ed. referred to as the decision on transboundary movements of hazardous waste destined for Senator Lees interjecting— recovery operations. That is relevant because Senator HILL—There is no reason why I the previous legislation did not provide for would not make a decision one way or the trade in wastes. We now cover within the other. The argument you are seeking to legislation the potential for trade in wastes. develop is that there is a risk associated with The OECD countries rely on the agreement this. I suggest to you that that risk is not that they entered into in 1992, which is present, because the power is there for the specifically provided for in article 11 of the government of the day—you might not like convention. So there is nothing extraordinary the government—to stop the import. You are in this at all. protected in that regard. The next point that is made by the Austral- I am also advised that one inadvertent ian Democrats to attack that is the argument consequence of striking down these regula- that the regime is less stringent than it other- tions would be that the protective mechanism wise would be under the act. I draw to Sena- that exists in relation to some amber substan- tor Lees’s attention that, whilst the agreement ces would be removed all together. In other under article 11 may contain different rules, words, as it is at the moment, they are not it ‘shall stipulate provisions which are not less included within the red list but they are environmentally sound’ than those in the included within the OECD list, so they are convention. So it can provide for a different subject to this protective regime. But if you Monday, 26 May 1997 SENATE P3575 strike down all of these regulations, that movement in this country, and I have no protective regime will not exist in relation to doubt that it is not going to fill with confi- those substances at all. If you are interested dence and assuredness the members of the in that, we can get you a list of those. environment community who specifically For those reasons specifically—because we work in the area of hazardous waste. have had this debate before, and it was the If I understand her correctly, Senator Lees will of the Senate that the OECD agreement said that the Senate cannot amend these and Australia’s participation within it be regulations. These regulations are short of the supported—I urge the Senate to defeat this mark. By opposing the regulations, we do not motion. I remind the Labor Party that it was wipe out the need for tightening up of the their government in 1992 that entered into the laws regarding the trade in hazardous waste. OECD agreement. It was their decision as a We simply say to the minister, ‘Go back and government to legislate to provide for it come in with specific regulations which show through an amendment to our hazardous waste us what you are going to do to regulate the act. The incoming government agreed with importing’—as he would have it—‘of the Labor in that regard and thus implemented the specific hazardous wastes that are called the provision. For all those reasons, I urge the amber group.’ In other words, in that group, Senate to defeat this motion. the warning light is flashing. Even if the Senator BROWN (Tasmania) (4.39 p.m.)— wastes in this group are not regarded as the I support Senator Lees’ motion and I do so most toxic things that could float around the for two reasons. First of all, Senator Lees world, you get the amber light which says, from the Democrats has outlined a list of ‘Treat with great caution.’ We have the shortcomings which will exist if the regula- minister saying, ‘Trust us,’ and we have tions which are unsatisfactory go through. The Senator Lees saying, ‘It could be left in the minister at the table, the Minister for the minister’s too-hard basket.’ And simply by Environment (Senator Hill), says, ‘Trust me,’ default, the proposition put to Australia but, for environmentalists around this country, involving the trade in these hazardous wastes that has become less and less an attractive will proceed. proposition. So either the minister can make a decision We have to remember that the minister at against the environmental interests of the the table is asking us to trust him with the country in regard to the trade in these wastes import—he confines it to just the import, not or he can simply fail to act—as Senator Lees the export—of a certain category of hazardous put it—and the trade will occur. Failure to act waste. But as far as environmentalists are is not a safeguard. Failure to act allows the concerned, we have seen him support the trade to occur. opening of the flood gates for the export of On both those counts, I would have to side uranium and for the export, in record levels, very clearly with the disallowance of these of woodchips from our high quality forests in regulations, and I hope the Senate does so and this country. That is just to name two, but I I hope the Labor Party does so, too. This is could go on and list his irresponsible role simply an instruction to the minister to go when it comes to the national obligation to back and do this properly. Make it clear in put some sort of cap on this country’s green- these regulations how you are going to treat house gas emissions that are contributing to this category of toxic waste and do not leave the world-wide global warming problem. We it to us to accept on trust that you or your know that when he goes to Kyoto he will subsequent ministers will do the right thing. default on that as well. That is not good enough. The minister said to Senator Lees, ‘These Senator FAULKNER (New South Wales— regulations are okay because I’ll make sure Leader of the Opposition in the Senate) (4.43 the environmentally excellent thing is done.’ p.m.)—These regulations are made under Go and tell that to somebody else, Senator section 13(c) of the Hazardous Waste (Regu- Hill. It does not rub with the environment lation of Exports and Imports) Act. This is the P3576 SENATE Monday, 26 May 1997 section of the act which refers to article 11 pretty active role in Senator Hill’s responsi- arrangements under the Basel convention. bilities. Although I do not always agree with Article 11 arrangements provide for bilater- the speeches that Senator Brown makes, he al, multilateral or regional agreements or has made a sound case about the number of arrangements regarding transboundary move- occasions that the current government has ments of hazardous wastes or other wastes sold out environment protection in this coun- with parties or non-parties provided that such try. I do not know how an embarrassed agreements or arrangements do not derogate environment minister can sit through some of from the environmentally sound management these contributions. of hazardous wastes and other wastes as On this particular occasion, as these regula- required by the Basel convention. All tions provide the framework for the operation transboundary movements provided for under of the arrangements made in the OECD these regulations must therefore be compatible decision, the opposition does support these with environmentally sound management of regulations. Hence, we will not be supporting hazardous wastes and other wastes as required the disallowance motion. I repeat that the by the convention. strength of the arguments about this Article 11 arrangements must not be less government’s environmental performance and environmentally sound than those provided by Senator Hill’s stewardship of his own port- the Basel Convention. Therefore, in our view folio have been very strong. A very strong these regulations do not dilute the environ- case has been presented by Senator Brown mental requirements set out in the Basel and Senator Lees today in relation to that Convention. These regulations provide a legal matter, but I am confident that the hazardous framework for an OECD decision that was waste regulations that were put in place by an agreed to by Australia in 1992. This process administration that did care about the environ- includes a three-tiered system to classify ment will stand the test of time. hazardous wastes into green, amber and red, Question put: obviously with the strictest controls being That the motion (Senator Lees’s) be agreed to. placed on hazardous wastes classified in the red tier. The Senate divided. [4.53 p.m.] (The President—Senator the Hon. Margaret As I understand it, in some instances the Reid) OECD decision provides stricter controls on Ayes ...... 9 hazardous waste transportation than is re- quired under the Basel Convention. An Noes ...... 53 —— example is aluminium ash waste controlled Majority ...... 44 under these regulations but it is not controlled —— under the Basel Convention. In addition to AYES providing greater control over some waste, Allison, L. Bourne, V.* particularly those in the green tier, these Brown, B. Kernot, C. regulations streamline the process for trans- Lees, M. H. Margetts, D. portation between OECD countries while Murray, A. Stott Despoja, N. ensuring that the arrangements are not less Woodley, J. environmentally sound. NOES Bishop, M. Boswell, R. L. D. The former Labor government supported the Brownhill, D. G. C. Calvert, P. H.* arrangements contained in the OECD deci- Carr, K. Chapman, H. G. P. sion. I agree with many of the arguments that Childs, B. K. Collins, J. M. A. have been put forward about the inadequacy Collins, R. L. Conroy, S. of the current government’s protection of our Coonan, H. Cooney, B. Crane, W. Crowley, R. A. environment and, of course, the hopelessness Denman, K. J. Eggleston, A. of the current environment ministers—I mean, Evans, C. V. Ferguson, A. B. minister. It probably is ministers actually, Ferris, J Foreman, D. J. because Senator Parer seems to be playing a Forshaw, M. G. Gibbs, B. Monday, 26 May 1997 SENATE P3577

NOES The scheme was introduced in its current Gibson, B. F. Heffernan, W. form in 1982. Prior to the 1982 rebate Herron, J. Hill, R. M. scheme, exemptions were provided by way of Hogg, J. Kemp, R. Knowles, S. C. Lightfoot, P. R. an exemption certificate scheme to mining, Lundy, K. Macdonald, I. farming and fishing industries. The exemption Macdonald, S. MacGibbon, D. J. scheme was introduced in 1958-59. The Mackay, S. McGauran, J. J. J. scheme assists Australian mining operations McKiernan, J. P. Minchin, N. H. and primary production to remain internation- Murphy, S. M. Neal, B. J. ally competitive by making sure we do not Newman, J. M. O’Brien, K. W. K. Parer, W. R. Patterson, K. C. L. unnecessarily tax business inputs. Diesel is, to Payne, M. A. Reid, M. E. these industries, as important as electricity or Sherry, N. Synon, K. M. natural gas is to manufacturing operations. Tambling, G. E. J. Tierney, J. Electricity and gas are not subject to excise. Vanstone, A. E. Watson, J. O. W. West, S. M. The continuation or otherwise of the diesel fuel rebate scheme has been the subject of * denotes teller some debate over a long period of time. Question so resolved in the negative. Indeed, when Labor was in government, Treasury often took a view that the scheme ORDER OF BUSINESS was a subsidy paid to industry. That was a Rearrangement of Business view that we clearly disagreed with. Motion (by Senator Parer) agreed to: The Labor government has, on a number of occasions, tightened eligibility in various That intervening business be postponed till after areas of the scheme. We accept that that has consideration of the following government business orders of the day: had to happen. We have also always accepted that the scheme should be retained. With No. 3, Customs and Excise Legislation Amend- regard to the retention of the scheme and this ment Bill (No. 2) 1996 (No. 2); current government’s position, it was very No. 7, Hearing Services Administration Bill 1997 interesting, both prior to the election and Hearing Services and AGHS Reform Bill 1997. immediately after, that there was some specu- CUSTOMS AND EXCISE lation about whether or not the scheme was LEGISLATION AMENDMENT BILL going to continue. Indeed, I think the Treasur- er (Mr Costello) and a few others indicated (No. 2) 1996 (No. 2) that maybe the scheme would end. I suppose Second Reading that was speculation. In so far as agricultural purposes were intended, it was the Prime Debate resumed from 10 February, on Minister (Mr Howard) back in late May who, motion by Senator Campbell: with a nod, nod, wink, wink speech to the That this bill be now read a second time. NFF, said, ‘No, farmers are all A-OK. You’ll Senator MURPHY (Tasmania) (4.58 be protected.’ Then, of course, just before the p.m.)—In debating the second reading of the budget, Deputy Prime Minister, Tim Fischer, Customs and Excise Legislation Amendment told the mining industry: Bill (No. 2) 1996, I would just like to go back . . . in consultation with the mining industry there to a little bit of history with regard to the will be some adjustments by legislation to limit diesel fuel rebate scheme. The diesel fuel eligibility, but the core thrust and coverage of the rebate scheme provides rebates of excise or scheme will be maintained. customs duty on diesel fuel purchased for The Treasurer in his budget speech said: specific off-road uses in mining operations There are measures to tighten eligibility and clamp and primary production—for example agricul- down on misuse, but the Diesel Fuel Rebate ture, fishing and forestry operations, although Scheme remains. the forestry operations have been somewhat As I understand it, it was foreshadowed in the limited in more recent times. budget documents that there would be a P3578 SENATE Monday, 26 May 1997 saving of around $440 million over four amendments that are proposed fail to recog- years. In the budget statement No. 3, the nise or even take account of concerns raised government said: by the mining and cement industries—and, The operation of the Diesel Fuel Rebate Scheme indeed, even the rural sector. This is despite . . . is to be revamped from 1 January 1997 to curb the fact that the government claims the overclaiming of the rebate and contain the associat- amendments have come about as a result of ed growth in outlays. This measure will address the extensive consultations and despite statements concerns raised by the Australian National Audit from their own colleagues—government Office about ‘leakages’ from DFRS, and curtail the excessive growth of outlays stemming from Admin- members—of support for the existing scheme. istrative Appeals Tribunal/Federal Court decisions. The minister will remember that the govern- With regard to those matters, the amendments ment set up this high level negotiation group to the bill before us are primarily intended to of which Senator Parer and Mr Prosser were restrict eligibility in the mining operations members. There was some discussion and, for category; to close loopholes; to address, as I all intents and purposes, an agreement was said, the recent Federal Court and AAT reached. But it would seem to me that the decisions that have had the effect of widening industry is still far from being happy—the the definition of mining operations as that mining industry in particular—with the relates to the diesel fuel rebate scheme; and outcome of those consultations and, indeed, to improve accountability of the scheme and the shape of the agreement that was finally reduce expenditure under the scheme from reached. It has been reached to some extent misuse, following strong criticism of the but there is still significant concern with Customs administration by the Auditor-Gener- regard to the ongoing problem that will be al. With regard to the Auditor-General’s associated with the intent of this scheme. report and recommendations, I would particu- What is the real intention of the scheme? The larly like to go to recommendation 2 which in Prime Minister said the group was established part says: to undertake a specific task. The Prime Minister stated: ANAO recommends that DIST, in consultation with Customs and other relevant departments, compre- . . . the intent of the changes should be to achieve hensively examine DFRS— the dual objectives of facilitating an expanding, competitive minerals sector while containing the And dot point one states: expenditure growth flowing from widening eligibili- seek clarification of its purpose and objectives. ty beyond the intent of the Scheme. I think that is one of the most important The changes were announced on 31 October things that the ANAO has suggested with and both Senator Parer and Mr Prosser made regard to the diesel fuel rebate scheme. The much about the extensive consultations that response from Customs is cited here as being had taken place. Yet, even following that, the accepted in relation to administration of the Minerals Council of Australia still have some scheme and DIST’s response is that it is concerns. Mr Ellis, on behalf of the Minerals accepted. Council, stated: The proposal there was to clarify the pur- . . . the legislation and the comments made by the pose and objectives. If you look back at most, minister in his Second Reading Speech appear to go beyond that agreement. They do not provide the if not all, of the court and AAT appeals and certainty integral to our agreement. Following a challenges to its application, it has been detailed analysis of the legislation, the Council will probably because there has never been a very be seeking the Government’s cooperation to rectify clear and specific intent and objective for this the apparent unintended consequences... scheme. Even now, the government has not It still comes back to the point that there is no really addressed that question. clear definition of what is intended to be Whilst it is recognised and accepted that achieved from the diesel fuel rebate scheme. some tightening up of the scheme is needed There is a broad recognition that it is there to to make sure the rebate applies to specific off- assist industries and create a level playing road uses, what is disturbing is that these field. Even when you look at some other Monday, 26 May 1997 SENATE P3579 countries where diesel fuel, as an input into reason they are not receiving the rebate is producing goods, is significantly cheaper than because, in 1995, we removed it. it is here in Australia, there is still this prob- Senator Parer—That’s true. lem. Senator MURPHY—Senator Parer says Of course, we have not heard the govern- that is true but it is not so. It is true that we ment dispel the speculation that there may did tighten up the eligibility but it was always well be a cap placed on the diesel fuel rebate the intention that the amended legislation scheme, which would create total uncertainty. would continue to provide a rebate for diesel It is a ridiculous situation. I do not know how fuel used for the purpose of mining calcite, or you would work it; maybe you can explain calcium, from limestone for the production of that, Minister. If you have a cap and you get cement. That is even supported in a letter all of the claims in, what percentage of the from Mr Prosser, the Minister for Small claim will be paid, to whom and on what Business and Consumer Affairs. Firstly, just basis? There is nothing worse, in so far as our to dispel this myth that you people keep mining industry and our agricultural industry trying to push about, I refer to a letter dated are concerned, than having those sorts of 9 August 1995 from the then Minister for uncertainties hanging over them. Small Business, Customs and Construction, What is of particular concern to me is the Senator Schacht, in which, in part, he says: issue that relates to the cement industry. I However, the law continues to allow rebate to be guess I am referring to the cement industry in paid where an activity can be said to be ‘mining for my own state because it has a significant minerals’ and does not simply constitute the investment in Tasmania, both in terms of extraction of the now excluded materials. infrastructure and employment. In 1993 Therefore, the legal test is whether the activities Australian Cement Holdings, which is Goliath of a claimant are carried out with a view to recov- Portland Cement at Railton, completed the ering from the limestone ore, a mineral or minerals such as calcium carbonate (or calcite). If this is the bulk of its site upgrade—a capital expenditure case, then the rebate is payable. on site which is ongoing. At the completion, in excess of $100 million will have been In a further letter from the now minister, Mr spent. In addition, a $50 million ship was Prosser, dated 16 October 1996, the minister, purchased in the same year for the specific in part, says: purpose of transporting cement products to Most quarrying materials previously eligible for mainland markets. diesel fuel rebate became ineligible on 1 July 1995. The only materials presently eligible are limestone A major investment is also taking place in for use in de-acidification of soil in agriculture and the form of a new limestone mine. This materials from which the mineral content is extract- development involves some 100 trucks operat- ed, such as rutile. ing at any one time and, consequently, their Minister, that somewhat makes a bit of an diesel fuel usage is quite significant. Some untruth what you have been saying and what 200 people are employed directly at Goliath you told me in estimates. and the flow-on employment effect is substan- The cement industry, in its submission to tial. Shaw Contracting, a Tasmanian based the Economics Legislation Committee inquiry company which is employed by the company, into the Customs and Excise Legislation Bill has as many as 100 vehicles on site at any (No. 2) 1996, highlighted the inequity of the one time. In Tasmania, Australian Cement situation. I would like to refer to that submis- Holdings owns Besser and Cornwall. In all sion because they also acknowledge the fact they employ somewhere in the vicinity of 350 that the then minister, Senator Schacht, had people. written to them. It was their view that what Since June 1995, Goliath Portland Cement he had said was correct. In their submission— has not received the diesel fuel rebate, despite and I will read part of it—they said: the fact that one company within the Austral- The Cement Industry mines limestone for the ian cement group is receiving the rebate. This sole purpose of recovering the mineral calcite or government has been claiming that the very calcium from what is a naturally occurring raw P3580 SENATE Monday, 26 May 1997 material. Under the ‘mining for minerals’ test we ed by the list of other things that are de- believe we are eligible for the diesel fuel rebate. scribed as not being minerals for the purposes The Cement Industry enjoyed the benefit of the of the legislation, it will be very interesting to diesel fuel rebate prior to the legislation passed in see what sort of position the Minerals Council July 1995. With the introduction of the Customs will adopt. I raised this question with them. and Excise Legislation Amendment Act 1995 (Act No. 87 of 1995), which came into effect on July 1, Minister, when I asked some questions of 1995, some confusion arose as to the continuing you in the estimates you indicated that, should eligibility of the Cement Industry in respect of its Customs lose their court processes, they mining activities directed to the recovery of calcite would be paying. The information that is or calcium. This legislation introduced a clause which excluded— being conveyed to the cement industry ap- pears to be: ‘We are still not going to pay you and this is the important point— even if you win in the Federal Court because sand, sandstone, soil, slate, clay (other than benton- we will have this legislation up and we will ite or kaolin) basalt, granite, gravel or water, or knock you over on the basis of quarry.’ I will limestone (other than agricultural use limestone). be very interested to hear the minister’s The insertion of limestone in the 1995 amend- explanation of that when the times comes. I ment, was intended to exclude limestone which was also ask you, Minister: even if at some point quarried but not to exclude limestone which was in time you win the argument about quarry- mined, where mining was undertaken in the pursuit of mineral recovery (calcite or calcium). The ing, will it also be the case that you will not blanket exclusion of ‘limestone’ has created be paying the cement industry retrospectively unintentional and undue confusion. The intent was for those claims they had before this legisla- to clarify the quarrying issue. tion became law? I will come to this a little bit later. The Senator MURRAY (Western Australia) situation with regard to the cement industry (5.28 p.m.)—In the second reading speech on is that Customs has always contended—and the Customs and Excise Legislation Amend- indeed may well now, as a result of these ment Bill (No. 2) 1996 the government amendments, contend—that they are quarry- proposes savings of $160 million. The bill ing. does this by narrowing eligibility and exclud- If it is the case that, although Customs have ing formerly claimable activities. It tightens been fighting a losing battle in the courts with administration and acts to close off claims regard to this matter, and it seems to be allowed as a result of appeals to the AAT and getting more confused by the day—I think the Federal Court. These changes will impact they are fighting a losing battle; I notice the directly on the bottom line of most claimants. minister nodded with regard to that—and they The government has not provided any are now changing the course of their attack on analysis of the consequences of last year’s the basis that if this legislation goes through budget cut in terms of industry viability, jobs, they will say: ‘You might have won the battle investment or exports. Nor am I aware of any with regard to the minerals mining test, but government cost-benefit analysis of the diesel we are going to knock you over on the basis fuel rebate and its effect on the mining indus- of the quarrying test, which we think you will try, regional economies and the broader not meet,’ that provides a somewhat interest- economy. ing set of circumstances. One would have to During the federal election campaign in wonder about coalmining in so far as it relates February 1996 Senator Cheryl Kernot, leader to open-cut. The mining industry would be of the Australian Democrats, said that if faced rather interested in such an interpretation of with a choice of cuts to essential services and quarrying. budgets, particularly the environment, it If a company is mining limestone and then would be wise to consider a package of cuts going for a process to extract a mineral which including to—and I quote—‘reduce the to all intents and purposes, as I understand energy inefficient diesel subsidies to the it—and I will be very interested to hear mining industry, subsidies which are worth whether my opinion is wrong—is not exclud- over $800 million a year and which are not Monday, 26 May 1997 SENATE P3581 available to industries such as tourism, ser- significantly change the financial climate in vices and manufacturing, all of which raise which the industry operates. Accordingly, a more export revenue than mining’. graduated phased reduction would be prefer- The Australian Democrats recommended able for industry financial planning. I am reducing the DFR for the mining industry aware from the running sheet that the Greens during that election campaign. We recom- (WA) will be putting up an amendment for a mended that it be reduced by 50 per cent, so fast-phase reduction but, in view of the achieving revenue savings of $400 million. comments I have just made, we will not be This bill, by cutting the DFR by $160 million, able to support that view. meets 40 per cent of the target we set. Obvi- The third item in our policy consideration ously we will therefore be supporting the bill relates to the inefficiency of the DFR as an for that reason. export or industry motivational device. The The Australian Democrats have three prime ANAO picked up problems with the DFR motivations for our policy. Firstly, we believe scheme in the 1996 performance audit and the mining industry has the capacity to sub- recommended that the purpose and objective stantially improve fuel efficiency by reducing of the scheme be clarified. The government its reliance on diesel, a move that would says that the primary purpose of the DFR is assist in reducing Australia’s greenhouse to maintain competitiveness in these key emissions. Removing the rebate would make export industries. In this statement it did not diesel less attractive on cost grounds. Second- say that the primary purpose is for govern- ly, we accept that there are limits to the ment to refund or rebate moneys to which it budget capacity of government and in a is not entitled, and that is the argument of the climate of strong budget cuts and strong mining industry. community demands the Australian Democrats We are well aware that the mining industry believe it is appropriate for the mining indus- strongly asserts that the DFR is not industry try to make this contribution to budget out- assistance but is a refund of diesel fuel excise lays. Thirdly, we believe that the DFR is an which is not applicable in specified circum- inefficient and inappropriate industry and stances. However, the rail industry, manufac- export motivator. With regard to the first turers and many exporters do not get the item, we recognise that, in trying to induce rebate and could mount similar arguments for fuel efficiencies, there should be a carrot as it. They are paying a higher price for diesel well as a stick. Incentives could be considered which they, too, may use as a business input. to encourage a speedy switch for the mining Equitable principles would require the DFR industry out of diesel usage into energy usage, to be provided across the board on a common which delivers a better environmental out- basis to those with an equivalent export or come. industry case. Instead, the DFR is applied on With regard to the second item, budget a discriminatory basis. This discrimination in needs are immediate and continue to be favour of the mining, fishing and farming immediate. The coalition government and industries clearly identifies the DFR as an many business and economic commentators assistance measure extended to select groups. have advocated cuts to the DFR for budget The Australian Democrats, consequently, do reasons. The Australian Democrats recognise consider the DFR to be an industry assistance that investment in the mining industry often measure. On that basis, its efficacy must be has a long lead time before the returns kick evaluated. Australian Democrat support for in. Investors in the mining industry frequently appropriate industry assistance is well doc- need to take a long-term view and for some umented—including for assistance the coali- current projects the DFR may be an important tion government has cut, such as DIFF, the contributor to viability and the bottom line. 150 per cent R&D tax allowance, the EMDG For that reason, despite the fact that we scheme and so on. The Australian Democrats support a reduction in DFR, we believe that believe that the DFR as applied is arbitrary, it would be profoundly unfair to suddenly and discriminatory, administratively complex and P3582 SENATE Monday, 26 May 1997 poorly targeted. We believe that export The third way in which the DFR could be motivation and industry assistance for the applied by government to the mining industry mining industry needs to be re-examined. is as a capped amount. For this to work the That will require a re-look at taxes, including rebate would have to be altered from a speci- those on inputs and outputs, and a re-look at fied amount per litre of diesel used to a pro impediments to competitive exports by the rata application of funds to all those eligible mining industry. Well crafted change in these on the basis of funds available. This, in our areas could well put the industry in an even view, is the best way of reducing the DFR on better shape than it is currently even if the a known cost basis but of then being able to DFR were to be withdrawn. extend the scheme to all industry participants Given the existing tax and policy milieu, on a fair and non-discriminatory basis. industry witnesses clearly stated that they Fourthly, the DFR could be applied by would prefer government to raise taxes out of government to the mining industry as a profits rather than to cut assistance measures, targeted and specified industry assistance which affect costs. The Australian Democrats measure designed as a mechanism to grow will therefore support a reduction in the total mining, fishing or farming sectors or budget allocation for the DFR as proposed by subsectors, or organisations which warranted the government, but we do believe that the special interventionist attention on sound proposed legislation needs amendment in economic and social grounds. terms of fairness and rationality within that broad budget constraint, and we have circulat- When the Senate report came down, the ed amendments to that effect. majority report correctly summarised the discriminatory, arbitrary, complex and capri- Any further reduction in the DFR we cious way in which the DFR is being applied believe should be laid out in advance by in the mining industry—and it was the same government on a phased and graduated basis case, incidentally, with the previous govern- so that the industries affected can proceed ment as well as with this bill. Changed defini- with sound financial planning. In terms of the tions to mining operations and beneficiation arguments I outlined earlier, we accept that have resulted in very considerable concern. that should be done within the purview of an The industry witnesses produced a telling list overall look at the tax system and competitive of mining processes and minerals which are export assistance. illogically excluded from the present and There are four ways in which the DFR proposed scheme. Land mining operations are could be applied by government to the mining favourably treated in comparison with sea industry—firstly, as a general rebate to the mining operations. There appears to be no mining industry. This, we recognise, as does rational process for the inclusion of certain government, would result in a growing and minerals in the scheme and the exclusion of open-ended budget cost. Both the present and others. Salt, mined limestone, petroleum, the previous governments rejected this route, rutile and kaolin rank amongst the losers; selectively restricting eligibility. copper, gold, uranium and alumina are The second way in which it could be amongst the winners. Natural gas is at a applied by government to the mining industry disadvantage compared with coal. In electrici- omissions is as a rebate selectively applied to favoured ty generation, with regard to CO2 constituent parts of the mining industry. This natural gas plants are far preferable to coal system is currently in place. This restricts the fired plants, and we believe that natural gas total potential cost but it is still open-ended should be supported. for those so favoured. In an attempt to hold These DFR changes will cut eligibility for down the budget cost, this bill increases the a number of claimants who have been eligible discrimination between those mining activities for many years. We need to be cognisant of which attract the DFR and those which do not the possibility that these DFR changes could on a basis which does appear to us rather tip some operations into a loss making situa- arbitrary and rather capricious. tion. Such operations may need a little time Monday, 26 May 1997 SENATE P3583 to get their affairs in order. It would seem Income Tax Assessment Act 1936—which did desirable, Minister, that any person or organi- apply to prospectors. The government’s sation which formerly operated at a profit and decision in this bill to end the DFR for light which will now operate at a loss solely vehicles under 3.5 tonnes gross weight is because of the DFR changes should be able another hit at this small business sector. Light to appeal to you for special dispensation to vehicles are the main off-road item used in claim for at least one further financial year. prospecting. It is our intention to move an The majority report well summarises the amendment to correct this. evidence that the revised administrative I now want to move to probably the only arrangements will be too onerous. Witnesses area which really affects farmers in our advised that the proposed amendments would discussions and our amendments, and that is result in excessive compliance costs. In taking away the right to silence and the rights evidence, an AMEC witness read out a list of to appeal. The Senate Scrutiny of Bills Com- the day-to-day DFR administrative problems mittee in Alert Digest 1/97 identified a prob- consequent to the amendments. That submis- lem of civil liberties and natural justice. Item sion would have been very funny if it was not 25 of schedule 1 and item 10 of schedule 2 of so damning. For a government committed to this bill would insert proposed subsection reducing business compliance costs, this bill 164AC(15) into the Customs Act 1901 and does not appear to do much for their cause. proposed subsection 78AD(15) into the Excise The exclusion of some and the inclusion of Act 1901. The committee said: others in the proposed amended DFR scheme These sections refer to the powers of the Chief is unfair and, in the opinion of many in the Executive Officer of Customs . . . to obtain infor- industry and its experts, is not determined on mation for the purposes of auditing a particular sound and defensible grounds. The govern- diesel fuel rebate application . . . These subsec- ment has quite properly determined to reduce tions, if enacted, would take away the right of a person to remain silent . . . that may result in the the cost of the scheme and the levels of person incriminating himself or herself, thus expenditure on it. Unfairness can only be exposing the person to prosecution for, and perhaps eliminated by either capping the scheme and conviction of, a criminal offence. Taking away this paying pro rata, as discussed above, or by right undoubtedly trespasses on personal rights and limiting the payment very considerably to a liberties. Whether it trespasses unduly on personal few narrowly defined activities or by deliber- rights and liberties will depend on the context in ately picking sectoral winners in the industry. which it is done. The issue is whether the advan- tage to the common good outweighs the loss to the It seems to me that the government, in its individual of taking away the right to silence . . . negotiations and intended resolution of this The adverse effect of taking away the right to issue, has achieved an outcome which is silence is partially mitigated by the protection included in the proposed subsections . . . The unsatisfactory to many key industry constitu- protection, however, is quite inadequate because it ents and it has to some extent lost their trust does not grant immunity from prosecution under as a result. Industry witnesses spoke strongly paragraphs 234(1)(c) or (d) of the Customs Act to the economics committee concerning a 1901 or 120(1)(vc) or (vi) of the Excise Act 1901 breach of faith and a failure to honour agree- in relation to the diesel fuel rebate. ments or a deal that they believed had been I and the Democrats are opposed in principle reached. to the erosion of such rights. Citizens and I want to turn to prospectors, a small organisations need safeguards against the business group within the mining industry. power of the state. Many government entities, The Australian Democrats believe that pros- including Customs, have historically had to be pectors undertake an essential, high risk and reprimanded and constrained by the courts. difficult task for the mining industry. It is also The other problem is a lack of rights to a major small business and entrepreneurial appeal some Customs and chief executive sector in the mining industry. The coalition officer decisions. Customs is an organisation government has already ended a tax exemp- with considerable powers, sometimes exceed- tion concession—paragraph 23(pa) of the ing those of the police. I do not accept that P3584 SENATE Monday, 26 May 1997 there should be situations where Customs can oppose the diesel fuel excise rebate which be accuser, judge and executioner. I propose goes to the mining industries in Australia. to introduce appropriate amendments for There is a move in this legislation to tighten rights of appeal where they do not exist. the criteria for eligibility for that rebate but, Judging by the experience of the cement when we look at the figures, we see that the industry, as outlined in the hearings, one mining industry will receive $1,437 million would be wise to be cautious of expecting and, together with the rural industries, we will Customs to always operate consistently and then see that figure go to $1.708 billion three fairly. In the case of the cement industry, years down the line. DFR claims are accepted at three sites and Senator Parer—Wrong. rejected at eight. I understand they are now Senator BROWN—The minister opposite going to be reviewed for the three that they says, ‘Wrong,’ but I do not know what he is were accepted at. talking about—they are his figures. However, Senator Bishop—They have been. what he will know is that the lion’s share of Senator MURRAY—It has happened. The the $1 billion or so per annum for the next basis for differentiation appears to be four years does go to the mining industry. Customs’ refusal to grant the DFR unless In fact, in the current year the big Austral- forced to by the courts or the AAT. That is an ian, BHP, will be handed a cheque for over unnecessarily costly course for eligible claim- $100 million as its gift from this government, ants to have to follow and is unsatisfactory. which, at the same time, is cutting overseas The economics committee did not hear from aid by $16 million, has a $5 million cutback persons or organisations opposed to the DFR to SBS, is cutting the Human Rights and on policy grounds, which is a regret I have. Equal Opportunity Commission budget by 40 I have made clear the Australian Democrats’ per cent, is going to eliminate Aboriginal position. Also not addressed in the committee Austudy assistance over the next four years— inquiry was the issue of rail versus road and that is a $39 million cut—is going to cut the the effect of diesel on taxes and charges that Aboriginal reconciliation budget by five per affect the relative usage of either. A review or cent, is going to raise immigration application change of these could affect diesel costs. fees—that is $18 million there from people Another matter has not been addressed by who might not have as much money in their the committee. In October 1996 the Demo- pockets as BHP—and so on. crats raised in the Senate the problem of a Senator O’Chee—You people don’t want major leakage and loss of diesel fuel at a migration anyway. You want zero net mining site which may have been subsequent- migration. ly claimed for DFR. The minister’s answer to the question, read in part, states: Senator BROWN—Senator O’Chee can get up and misrepresent who he likes in his own I am advised that it is not possible to determine good time but I suggest to you, Madam whether all or part of the diesel lost was, or was not, subject to rebate claim without an extensive Acting Deputy President, that he should not search of both Customs and GEMCO’s records, misrepresent through interjection. Of course, even then, a conclusive outcome may not result . . . I will be a little better than him by trying to Under the existing legislation, payment of rebate is ignore his unruly and out of order interjec- based on intended use for eligible activities. tions as best I can, particularly when they It seems profoundly odd to me that a claim come from such profound ignorance as he is can be made for intended and not actual use. so readily able to display. So, Minister, it is a curate’s egg from us. We The Australian Greens will be supporting will be supporting your bill, but we will be the move by Senator Margetts to eliminate moving amendments to correct those areas this $1 billion per annum hand-out to the big which we regard as unfair. mining corporations, some of which, by the Senator BROWN (Tasmania) (5.37 p.m.)— way, bounces back in terms of hundreds of First of all, I make it clear that the Greens thousands of dollars going to the major Monday, 26 May 1997 SENATE P3585 parties through electoral donations year after own good time, he can respond positively to year. I am sure that they will say that has— that. Senator Parer—You are making that up. What I am talking about is the component of the diesel fuel rebate which produces Senator BROWN—I am reading the electricity for people on the land. This will documents which are released each year. test Senator O’Chee. It means that people will Senator Parer, who says that that is being be able to cash in the equivalent of their made up, might care to look at those figures diesel fuel rebate over the next 10 years and, himself and cavil with the mining corpora- in return from the government, have that tions—they think it is a good investment. No rebate over 10 years put into up-front capital doubt, one of the things they think it is a investment in solar alternatives for the pro- good investment in protecting is this $800 duction of electricity, particularly domestic million this year, moving to more than $1 electricity which they will be dependent on. billion, hand-out which they are getting This means that they will be producing clean, courtesy of his government’s very biased green energy instead of using one of the most policy as far as the mining companies on one environmentally destructive forms of fossil hand and the poor immigrant Australians on fuel energy production. So it is a win-win the other hand are concerned. situation for people on the land. The problem Having looked at the negative side of the for many people on the land is that they are diesel fuel rebate, which has been so ably having hard times at the moment and capital protected by this government when they are is very hard to come by. Senator O’Chee cutting ordinary Australians to the bone in laughs at that, but it is a serious matter, their other budget policies, I want to be Madam Acting Deputy President. positive and to challenge the positive side of Senator O’Chee—I am laughing still at the government in doing so. What we Greens your suggestion. propose is a sun fund. The amendments which I will be moving in the committee stages will Senator BROWN—I take it seriously even set the basis for this revenue-neutral option to though he thinks it is a joke. the diesel fuel rebate for farmers in particular, Senator O’Chee—Madam Acting Deputy for people in the bush. What it means is that President, I rise on a point of order. My point people will be able to cash in their diesel fuel of order is not Senator Brown’s deliberate rebate and use the money instead to subsidise misrepresentation. My point of order is that the capital cost of installing solar panels, wind Senator Brown is deceitfully trying to impute or solar thermal systems. to me a quite erroneous motive for my laugh- Senator Parer—For their trucks? ter. That is not why I am laughing; I am laughing because of his absurd proposal to Senator BROWN—The senators opposite have solar powered tractors. To impute any do not understand the difference between other motive is quite unparliamentary, and I diesel fuel rebate coming from their trucks, as ask that the imputation be withdrawn. Senator Parer says and Senator O’Chee screams in laughter in backing up, and the The ACTING DEPUTY PRESIDENT fact that many farmers—thousands of them— (Senator Crowley)—Senator O’Chee, there are getting the fuel rebate for their diesel is no point of order. If you feel that you have generators producing electricity. been misrepresented, you can, at a later time, seek leave to make a personal explanation. Senator O’Chee—What about their trac- Senator BROWN—That is absolutely tors? correct. I do not withdraw what I said. I stand Senator BROWN—Senator O’Chee can by it absolutely, because it was correct. As come up with a scheme for their tractors. I am I said, Senator O’Chee might find room for sure he is short of the wit and wisdom to do laughter here, but I take it seriously. We are anything positive on his own, but I am putting putting a serious alternative to the people in forward a positive initiative here and, in his the bush who do not have the cash in hand to P3586 SENATE Monday, 26 May 1997 move towards an alternative like this, even nesses—which are at the forefront of techno- though many of them may aspire to it. logical innovation for energy production. It is a win-win situation. It is based on So the government wins, the farmers win similar schemes elsewhere in the world. For and the sunrise energy production industries example, for many years the electricity auth- win as well. I hope the government will ority in New Zealand made an interest-free consider very seriously the amendments which capital grant available to householders to I will be putting forward, because there is a insulate their homes. In return, the household- great opportunity to have something very ers had diminished electricity bills which positive and green come out of this legisla- allowed them to pay off that capital loan quite tion. The government likes to say that the rapidly. The electricity authority had spare Greens oppose the proposals it brings forward electricity which it could sell on to new and that they have a negative viewpoint. buyers. That was a win-win situation. While I disagree with that, here is a great opportunity for the government to be positive, In the United States, private corporations to follow its own line of thinking and to take have gone further than that. In a move which up an alternative which has everybody in the is simple to understand, one private electricity community winning and which will do a great utility has been handing out the new energy deal to enhance the government’s own image efficient light bulbs free to householders. both with environmentalists and with people These bulbs, which are eight times as efficient in the bush. as the old bulbs, have allowed energy to be Debate interrupted. freed up and passed on to new buyers. That is energy efficiency. It takes a bit of lateral DOCUMENTS thinking, but it is a very wise way to be moving. Separation of Aboriginal and Torres Strait Islander Children from their I put this idea of a sun fund for the bush Families very seriously: people can take up this option which, besides helping with the capital invest- Senator PARER (Queensland—Minister ment up front, will mean that over the coming for Resources and Energy) (5.50 p.m.)—I years—ad infinitum—they will not be paying table the report of the National Inquiry into any diesel fuel bills for electricity production. the Separation of Aboriginal and Torres Strait It is a very exciting and positive alternative. Islander Children From Their Families, It fits in very much with the world’s aspira- entitled Bringing them home. I propose to the tion to reduce greenhouse gases. It also fits in Senate that any debate on this report be de- very much with the stimulation of sunrise layed until later this week, when it is expect- industries which this country should be at the ed that the government will make a statement forefront in assisting. in relation to this report. This is not small pickles. If we look at the CUSTOMS AND EXCISE rural sector which this fund is aimed at, if all LEGISLATION AMENDMENT BILL those farms were to convert their electricity (No. 2) 1996 (No. 2) production from the current diesel generation Second Reading to solar alternatives, the energy displacement would be equivalent to 600 megawatts. Six Debate resumed. hundred megawatts is equivalent to half the Senator McGAURAN (Victoria) (5.51 total potential output of Tasmania’s hydro- p.m.)—Today we are discussing the Customs electric system—the 39 dams in Tasmania. It and Excise Legislation Amendment Bill (No. is a big domestic market. So the third compo- 2) 1996 (No. 2). The bill gives effect to the nent of the good news about this option is 1996-97 budget announcement of the govern- that it would be a tremendous stimulus to ment, and its intention is to amend the diesel those Australian businesses—not least small fuel rebate legislation. The fact that we have businesses, which are labour intensive busi- the government’s first budget legislation now Monday, 26 May 1997 SENATE P3587 overlapping with the government’s second I think we all had a good laugh at Senator budget is a fair indication of the sort of log Brown from the Greens party when he seri- jam this Senate is facing and of the obstruc- ously suggested that we have sun-powered tionism this government is facing in the tractors. This is very relevant to the debate, Senate. The guilty party is sitting across the isn’t it! This legislation contains a billion other side on the Greens benches. dollar-plus scheme to tighten up eligibility and that wacky Senator Brown walks in here The best example of their obstructionism and suggests that the farmers would do well was only about a fortnight ago when we had to have sun-powered tractors. I have never the delay to the Natural Heritage Trust of heard of the scheme before— Australia Bill. You would have thought that that bill—which was doing no more than The ACTING DEPUTY PRESIDENT setting up a billion dollar trust for the good of (Senator Crowley)—Senator, I ask you to the environment—would have been rushed remove the word ‘wacky’ from your assess- through this chamber with the support of all ment of your colleague. the parties in the Senate. But the Green Senator McGAURAN—I withdraw the senators vexatiously and frivolously delayed word. it, simply on the grounds of politics. They Senator O’Chee—Unbelievable. were very fearful that, with this government on the front foot on the environment, it would Senator McGAURAN—To be replaced by put their party out of business. ‘unbelievable’. Thank you, Senator O’Chee. I have never heard of such a scheme before. In discussing this bill, I cannot help but I do not think it is even on the drawing board. mention the previous three speakers. I was I think it has just come from Senator Brown. amused by Senator Murphy’s detailed and Sun-powered tractors! As if the farmers studied contribution. He went in to bat to haven’t enough problems without taking up defend the very industries he has spent a that absurd suggestion. But we all had a good career—particularly under his union hat, let laugh and we did not take it at all seriously, alone his senatorial position at the moment— Senator Brown, if you thought for one fleet- pulling down: the mining and forestry indus- ing moment that we did. try, to say nothing of the farmers. In his Getting to the essence of the scheme before contribution he even said something in the us, which escaped the speakers before me, the defence of the farmers. Of course, his party, scheme does provide rebates of excise or when in government, spent 13 years—each customs duty on diesel fuel purchased for budget—ratcheting up petrol taxes. specific off-road users mainly in the mining, agricultural, fishing and forestry operations. He was followed by the Democrat Senator The figures from 1994-95 show that there Murray. I tried to understand the scheme that were some 213,000 claims involving some he put forward; I really made an effort. He $1.25 billion. himself admitted that it was complex, and he is dead right about that. It seemed to be a The scheme is pretty clear. There is no scheme that brought in more restriction, yet mystery to it, as defined by the Australian also broadened the scheme, to use his words. National Audit Office. The bill gives effect to It broadened and restricted. Isn’t that typical the government’s intention to achieve savings of the Democrats? There is something for all. in the scheme by tightening eligibility and I suggest that the mining industry or any of containing growth in the outlays. This particu- the industries that at present have the advan- lar intention is endorsed by the audit office, tage of the diesel fuel rebate study Senator which recommended that the purpose and Murray’s scheme and not fall for it, because, objectives of the scheme be somewhat clari- as usual, it has not only the gloss of the fied, and that a range of measures be intro- Democrat fairness on it but also the complexi- duced to improve accountability. ty and the uselessness that the Democrats According to the government’s explanatory bring to this particular debate. memorandum, the amendments fall into three P3588 SENATE Monday, 26 May 1997 broad categories. The first excludes from abolished the scheme in their time in govern- mining operations the eligibility for rebate in ment, they would have. We know they tried— respect of nearly all light vehicles and certain but failed—in their last budget to place a one off-road activities. Further amendments per cent levy on the administration cost, restricting eligibility relate to sea transport, which would have raised around $12 million, off-site rail, sea and public road use and which is about the cost of the administration quarrying. of this scheme. The second broad amendment has the effect This government has no plans to introduce of counteracting the effect of certain AAT and such a levy or to fundamentally change the Federal Court decisions, specifically the diesel fuel rebate. We know just how much Dampier Salt decision. In his second reading the major export industries—the mining speech, the Minister for Small Business and industry and the rural sector—depend on this Consumer Affairs (Mr Prosser), said: scheme and how important it is to their The particular amendments will ensure the continu- competitiveness to reduce input costs. Why ation of rebate for diesel fuel used in carrying out should these two major export schemes not mining activities but will preclude from eligibility have the advantage of the diesel fuel rebate? certain activities, best described as undertaken for The mining industry exports $33 billion a economic/marketing reasons, rather than the year and claims only some $750 million a physical extraction of minerals, and activities which essentially involve the transport of inputs/materials year—a very low percentage in regard to the for mining or beneficiation. diesel fuel rebate. The rural industry exports As the audit office requested, that certainly $21 billion a year and claims around the $400 does clearly define the purpose of the diesel million mark, which is a very small price for fuel rebate, if there is indeed any doubt at all. the government coffers in respect of support- In relation to the Dampier Salt case, the ing, giving incentives to and lowering input concern of the government was that the costs for these major export industries. interpretation had the potential to substantially The National Farmers Federation, a staunch widen the eligibility under the scheme. On defender of the diesel fuel rebate—as are the this matter, the minister said: National Party in government; and Senator The full Federal Court’s judgment is considered to Crane, from Western Australia, who knows be the most far reaching ever delivered in relation only too well the importance of the diesel fuel to the diesel fuel rebate scheme. It represents a rebate to his state—submitted a very exten- fundamental shift from a scheme based on the sive report on the importance of the diesel concept of an activity (in this case mining) being fuel rebate to the farming sector. Part of that regarded as a physical act (that is the extraction of report says: a product from the ground) to a concept of the activity being an economic one. Over the two decade period, consumption has grown on average by about 2.4% per annum. This The third broad based amendment relates to would, in part, be due to substitution of diesel for accountability and administration. In his petrol— second reading speech, the minister said: with— A range of amendments are proposed which will improve accountability requirements, assist in the wider availability of diesel powered vehicles enabling a clamp down on misuse of the scheme and equipment— and improve its administration. such as four-wheel drives and grain harvest- I will not go into too much detail on the third ers. amendments. Given the strict time which we Over the same period, the area sown to grain has government members are under, I would like risen by about 3 million ha, about 25% in total, an to jump to the main point, which relates to average annual growth of 1.1% in the area sown to the defence of the diesel fuel rebate. It is so grain. often under attack from those on the other The relationship of that to the diesel fuel side of the house and from many out in the rebate scheme is that it is an important factor community. We know from those on the other in supplying, and giving incentive to, the side of the house that, if they could have expansion of the rural sector. In the mining Monday, 26 May 1997 SENATE P3589 sector, we need only to look at two industries. In this debate I wish to briefly address the The Minerals Council has submitted a paper following issues arising out of the bill: firstly, in regard to the importance of this scheme. the impact on the goldmining and exploration activities in Western Australia through the I will pick out two major export industries. removal of the DFR for light vehicles less The first is the major export industry—the than 3.5 tonnes; secondly, the adequacy of the coal industry. The paper says that, should the financial impact statements; thirdly, the some- scheme be abolished, it would have an effect what confused and apparently contradictory on the coal industry. It says: position of industry participants in this debate; . . . cancellation in the Rebate will: and fourthly, particular industries that are (a) increase input costs by about $1 a tonne for affected by this bill and recent amendments coal with no ability to pass the cost increase on to circulated by the government. I refer here to customers. the salt industry and concerns of major or- For the coal industry, which is the most ganisations like the Minerals Council, AMEC competitive industry, particularly with exports and APPEA. to Japan, any increase in cost almost means I turn firstly to the impact on the goldmin- death. ing and exploration activities through the removal of the diesel fuel rebate for light The second industry that would be most vehicles. It is critical to understand at the affected is the gold industry. The paper says outset how the mining exploration industry that the abolition of the diesel fuel rebate and its people work. It is a quintessential, risk would: driven industry. It comprises individuals, significantly increase the input costs of Australia’s small groups and small companies. A feature gold industry— of this industry is high risk at the outset and particularly in remote areas where diesel is a major continuing high risk, often over many years. fuel source with virtually no likelihood of alterna- It requires initial raising of capital. This tive fuel sources such as electricity or gas due to capital funds exploration and continuing the remoteness of mines from the national grids. exploration. That exploration is carried out in This has the potential to impact on low grade both brown field and green field sites. mining operations. For example, for the remote mine of Telfer in Western Australia, abolition of Brown field sites are existing geological the Rebate would require the mine head grade to formations, and exploration tends to follow improve by over 70% to maintain mining income. trends of possible or potential mineral depos- That is fairly significant in respect of the its. Green field sites are pure exploration. It importance of the scheme. In conclusion, the is increasingly done by radio beams from amendments that the government is bringing satellites which identify particular mineral to this scheme to tighten its eligibility are formations under the ground. In either green necessary and creditable while maintaining field or brown field sites, actual physical our commitment to the scheme. follow-up is required. This involves soil sampling, pit exploration, geological survey- Senator BISHOP (Western Australia) (6.04 ing, site marking and site identification. p.m.)—The Customs and Excise Legislation Amendment Bill, currently the subject of These activities all require four-wheel drive debate, seeks the reduction of Commonwealth vehicles to carry out physical work. The cost expenditure to the tune of some $160 million. of the diesel fuel is critical to that exploration This will be achieved by saving about $35 process. The removal of the rebate is thus a million by restricting eligibility in the mining high cost impost to the early exploration and operations category; saving about $100 identification work conducted by individuals million by containing the effect of a series of and small end mining companies. allegedly expansionary court decisions which The process of exploration, initial capital impose significant cost obligations on the raising and physical checking is high risk and Commonwealth; and saving some $25 million very expensive. As the process continues and through amendments to accountability. potential sites are identified, the value of that P3590 SENATE Monday, 26 May 1997 site increases. This outcome is used as the Failure to introduce these changes however could incentive to raise further additional capital result in additional outlays of up to $100m per through placement of additional shares. This annum. then funds further exploration, building up the Paragraph (c) refers to : further value in potential sites. . . . amendments to improve accountability under In Western Australia in the goldmining the Scheme and its administration. areas, the gold ratio is higher than for other It says: minerals. Hence, the removal of the rebate is Savings of around $25m per annum are estimated an attack on the gold exploration industry. from these measures. One asks the obvious question: what are the So the assertions of savings of millions of attributes of individual geologists and pros- dollars are made. The government chooses to pectors involved in this industry? They are provide no supporting evidence of how these highly educated, small business people or figures were determined, the method of often battlers, entrepreneurial in outlook and calculation, the detail of any cost-benefit risk takers by nature. The removal of this analysis that may have been carried out, rebate is thus an attack on the backbone of whether any cost-benefit analysis was carried this industry. out and which department or agency did this So, in summary on this aspect of the de- job, and whether any figures were the subject bate, I would submit that this industry em- of review by either Treasury or the Depart- ploys many people from this battler sector and ment of Finance. My suspicion is that the many people who are generally entrepreneuri- figure grossly underestimates the amount of al in their outlook; it is a high risk industry savings, particularly with reference to para- with any return many years in the future; the graphs (a) and (b) on page 7 of the financial process of capital raising is critical to fund impact statement. exploration, which is the heart of the industry; Indeed, in the budget the government the only government concession is the diesel announced that, whilst the DFR scheme fuel rebate; the removal of this rebate for light would be tightened, it would remain. The vehicles less than 3½ tonnes directly attacks budget figure costed savings to outlays of the cash flow of all in this industry; the $441 million over four years. This can be prospectors’ main tool of trade is their four- contrasted with the EM, which proposed a wheel drive vehicle used extensively in financial impact of $60 million per year, or remote off-road situations in the search for $240 million over four years, plus $100 minerals; any extra cost associated with the million per annum in savings. If these two use of four-wheel drive vehicles will impact savings in the explanatory memorandum are upon exploration activities; and the conse- added, the saving is really $406 million over quences of the removal of the DFR will be to the four-year period. So two different docu- limit exploration, make capital raising more ments show alternatively a saving of $441 difficult and restrict the comparative advan- million or $640 million over four years. At tage of the Western Australian goldmining best, it is fair to conclude that the government industry. is confused. I now turn to the financial impact state- This issue of exactness of financial figures ments. As is customary in the EM, there is a was raised in the additional estimates. It was financial impact statement. The form of the raised in the Economics Legislation FIS in this EM is no different from that Committee’s consideration of the current bill. prepared for other bills. At best, it is a most Indeed, Senator Cook specifically asked the cursory document. On page 7, paragraph (a) government a series of questions. A particular simply identifies savings of around $35 question was: million in the mining operations category. Has the government conducted any cost benefit Paragraph (b) says: analysis or is it aware of any cost benefit analysis The amendments are designed to contain expansion conducted by a reputable non-government agency in the Scheme and not designed to achieve savings. or private sector consultancy into the impact of Monday, 26 May 1997 SENATE P3591 federal government taxes and charges in the mining Notwithstanding these differences, the follow- sector? ing is clear: the high-level group, on behalf of The government on 6 May responded to these industry, intended to concede areas that may questions with the simple response of ‘No’. have been held to be areas of legitimate So in arriving at its costings and savings, the claim, thus confining the scope of the rebate government did not carry out any cost-benefit quite tightly in exchange for an agreement analysis and is still not aware of any such from the government not to put a cap on analysis being conducted by any private claims in the remaining legitimate areas of the sector agency. act. So at the end of the day the Senate is Industry associations testified that the bill requested to add an impost on industry or explicitly dishonours the agreement reached. make a savings to forward outlays of between These disagreements go to: the inclusion of $441 million and $640 million over a four- the salt industry; the definition of benefici- year period. At best, these two parameter ation where it is involved; and the involve- figures are dubious and more likely to be a ment of the cement industry without its back-of-the-envelope consideration. apparent knowledge or support. Details of that In addition, the government refuses to confused position are outlined at paragraph 13 provide any of the relevant financial informa- of the minority report. This is indeed a most tion to the Senate. This is a matter for con- unsatisfactory conclusion, the result of an cern because it goes to the question of finan- industry process. cial responsibility, accountability and transpar- The opposition does not wish to be particu- ency. These are all matters addressed by the larly difficult on this aspect of the debate. government in its charter of budget honesty Normally industry-government agreements are and it is about time they were put into prac- to be applauded and are a powerful indicator tice in bills presented to the Senate. to the legislature. Normally it should and I now wish to turn to the apparently con- would be supported by the opposition. How- fused position of industry and government in ever, subject to any comments to be made this debate. The minority report outlines the later by Senator Parer, it is not proper at this apparent position reached between govern- stage to offer any further comment than to ment and industry on this bill. The minority simply point out the apparent inconsistencies. report makes the following points. Firstly, the Turning fourthly to particular industries, I basis of the bill is an agreement struck be- refer specifically to the salt industry in West- tween a high-level group and a government ern Australia. It is the opposition’s view that negotiating committee. Secondly, that govern- this matter needs to be resolved with the ment committee comprised the Minister for industry. The amount of their savings identi- Small Business and Consumer Affairs, Mr fied in figures provided to the Economics Prosser, and on occasions Senator Parer. References Committee and in the EM is of Thirdly, that agreement was the result of a the order of $600,000 per annum. The issue negotiation exercise carried out by the high- of that saving arises from the use of a dry level group, broadly representative of the stockpile in the mining of that particular mining industry and the Commonwealth. product. My understanding is that the concern Fourthly, that agreement attempted to resolve of the government is for flow into other areas, from the Commonwealth’s perspective the presumably the iron ore industry and other issues of growth and budget costs of rebate large extraction type industries in Western due to unintended claims, and from the high- Australia. level group’s position the industry objectives The inclusion of Dampier Salt from West- of certainty. ern Australia and the limitation of their This agreement of course is most critical. existing right to claim the rebate has a wholly There are different views on the nature of the unsatisfactory and unsavoury flavour. The agreement and different final documents from high-level group never claimed to have the high-level group and the government. authority to negotiate and conclude a bargain P3592 SENATE Monday, 26 May 1997 on their behalf. The likely saving to the because, again, it has the capacity to intro- Commonwealth of $600,000 per annum is a duce inefficiencies in planning, layout and fairly heavy impost on a commodity extrac- production processes. tion and export oriented export firm and In cost terms, an inefficient or technically industry. It is really a tax on the productive backward method of production or value inputs of the salt industry. To the extent that adding may be referred to a mining company it affects the price received for the end pro- because of a rebate entitlement, whilst the duct, it is quite inefficient. It is also, by more advanced, efficient or technically com- definition, an unworthy slug on a Western petent process may be jettisoned. This flawed Australian based mining industry. approach really penalises those companies The solution, if the government is of a committed to innovation, product development mind, is fairly simple and straightforward. It and process improvement and has the real is simply to circulate an amendment to the capacity to retard the ongoing introduction of effect that nothing contained in the bill shall state-of-the-art technology. It is a regrettable affect the current entitlement of Dampier Salt example of public policy restraining the Pty Ltd in respect of their location in a potential growth of leading edge and world- particular site in Western Australia. Indeed, class firms. the real criticism of the proposed amendment to the definition of beneficiation is that it In summary, it would be useful for the unfairly discriminates against salt producers mining industry to have had some certainty relative to other mining operators. for the future. There seems little rationale for the bill except cost savings. The process I now turn to recent amendments of the entered by the high-level group and the Commonwealth. During the Senate inquiry Commonwealth seems to have had a worth- Senator Parer announced further amendments while objective, if not a confused outcome. to the bill. They are now tabled in the Senate. The DFR does appear to be the subject of a The Minerals Council of Australia has advised somewhat complex and cumbersome applica- of a number of concerns. In its correspond- tion. Capricious interference through the ence of 19 March it says: customs department seems to be accepted as The Minerals Council’s support for the amendments a norm. One can only shudder at how this is qualified by the statement that any suggestion of impacts upon industry planning. As Senator the introduction of a cap on expenditure in the Murray outlined in his minority report at page diesel fuel rebate scheme or any increase in diesel fuel excise would be seen as a breach of faith of 39: the industry/government High Level Group agree- There appears to be no rational process for the ment and opposed by the industry. inclusion of certain minerals in the scheme and the In particular, the Minerals Council goes on to exclusion of others. Salt, mined limestone, petro- point out the discriminatory treatment meted leum, rutile and kaolin rank amongst the losers. Copper, gold, uranium and alumina are winners. out to Dampier Salt in Western Australia by singling out particular company activities In conclusion, I would recommend that both unfairly. The Minerals Council is correct to the Commonwealth and the high-level group point out that the amendments could have reactivate the negotiation process and that unintended consequences for the future. process concentrate on what they have identi- Obviously, a technically satisfactory way of fied as their core interests. In that way the drying and cleaning the salt exists. The diesel fuel rebate may survive as a legitimate passage of the bill may force the company to business input cost and not be the subject of consider a more inefficient way of stockpiling errant classification as business assistance or to retain the rebate of $600,000 per annum. business subsidies by minority parties like the Similarly, AMEC is correct to point out that Australian Democrats. the structure of the legislation is flawed. As Senator MARGETTS (Western Australia) it identifies, the bill does not provide for (6.21 p.m.)—The Customs and Excise Legis- complete coverage for all activities in a lation Amendment Bill (No. 2) 1996 (No. 2) mining operation. Thus, it is to be regretted deals with the diesel rebate for mining. It Monday, 26 May 1997 SENATE P3593 should be noted that there are effectively mineral as solid, liquid or gas and then three diesel rebate schemes: the rebate for excludes sand, water, clay, soil, gravel and mining, that for farmers and pastoralists—in other elements, which implies that they would fact, all non-primary producers, including have been included without this exclusion. By fishing and forestry—and the one for residen- example, we have been approached on the tial power use in remote areas, including basis that mining involves extraction of a some remote communities. This bill only mineral and that extraction of a mineral is, or relates to the mining rebate. I would like to should be, therefore, mining; that where such make it clear that the Greens (WA) have quite an extraction occurs it is not just to exclude different attitudes towards the various types an extractive industry. of rebate. The amendments here really relate But this is not the principle in law. Coal is to what kinds of mining attract a rebate and not extracted from an ore. It is just dug up which do not. and used in that form. It is quarried under the In the inevitable lobbying whenever we deal stated principle. It is not a mineral in the with the diesel rebate scheme, various inter- sense that it is not constant or homogeneous. ests have pushed for extensions of the mining It varies with the pattern of vegetative decay rebate. While the Greens support the agri- in its formation, yet it is covered. Salt is not pastoral rebates, we do not support the rebate extracted from an ore. It is covered, although for mining. We will be putting forward obviously we have some issues there. Lime- amendments to phase that out. In line with stone quarrying is not covered. Yet it is that attitude, the Greens (WA) generally covered, but only where the limestone goes to resisted extensions of the mining rebate. farmers. This is not a principled system. It is Our approach has been to adjudge what is an arbitrary one. Things are specified as either just and fair. For example, we opposed a in or out. retrospective extinction of the rebate a few In this regard, we do not feel that we are years ago, although we were quite happy to obliged to extend the rebate to cement pro- support a prospective extinction of them and ducers. We do not feel obliged to extend the told the mining lobby so. In this debate, rebate to tenders for offshore rigs. The however, some miners have complained of government and the Senate can or not as they injustice on the basis of various principles of like. There are no principles under which what mining is. In our opinion, there are no groups are being treated unjustly. They are real principles in operation about what is simply excluded. Others are simply included. included and excluded in this bill. It is based We might argue about whether we wish to on arbitrary decisions, regardless of what include or exclude them, but no-one is in by people indicate in speeches or statements. right. The principle here seems to be that A certain amount of effort is being put in these are generally extractive industries to try to define mineral as based on the need involved in extracting non-renewable re- for extraction of something called a mineral sources. from something else, which might be called Why should we subsidise depletion of non- an ore. Whilst this has a certain logic, it is not renewable resources? What is so special about what this act says. ‘Mining for minerals’ as a them that we want to pay to have resources phrase does not imply this any more than taken away? In many cases—bauxite, mineral ‘prospecting for minerals’ or ‘exploration for sands, iron ore, gold—we have large portions minerals’ does. The phrase ‘mining for of the world’s economically recoverable minerals’ occurs precisely where it is meant deposits. Why do we need to provide special that mining, exploration and prospecting are assistance for others to use it? Surely it is all included in the definition of a mining madness to build our economy on extraction activity. of non-renewable resources? Surely it is It is the definition of mineral that is critical, counterproductive to fail to maximise our but not usefully provided. The definition that return for something the world wants, which does appear simply says that it could be a is present in limited quantities. I say this P3594 SENATE Monday, 26 May 1997 without raising the question of what these The human impact on this planet is increas- limited resources are used for and what ing logarithmically. For most of human planetary impacts occur as a result of subsi- history, natural forces dwarfed or overrode dising consumption and waste of our physical human activity. But from the point where we resource heritage. learned to use tools and precipitated Pleisto- If we decide to use subsidies to promote the cene overkill, a large number of the large economy and jobs, why subsidise this indus- species present at that time were wiped out. try? What goals is the government seeking to Human agricultural and logging activity in achieve? If it is employment, this is certainly other areas resulted in significant desertifica- a low employment industry per unit of invest- tion in northern Africa, the Tigris-Euphrates, ment. How is government or taxpayer largess and the south-western deserts of the United distributed and on what basis? Manufacturers States—all occurring over 2,000 years ago. do not get a diesel subsidy for transporting Scientific literature has pointed out that only their goods or running a generator or what- in the recent past can human activity really be ever. Why is that? What is the justice of that? considered equivalent to a geological force in Which employers are subsidised and why? terms of its shifting of material, mainly minerals, and its impact on global atmosphere There seems to be little rationale and little and aquatic systems. justice here. It is simply a decision that the previous government made and the coalition In 1800, that is less than 200 years ago, the went along with it—or sort of. Where is the global human population is estimated to have debate and the rationale about what kinds of been under one billion. It has been only about industries we want and what industries are 100 years since the internal combustion best able to meet communities’ wants and engine, the use of petroleum, the car, and the needs? These are social and economic deci- electric generator became significant. It has sions, the kinds of decisions many people still been 100 years since the use of radio, tele- expect a responsible government to consider. phones and the first sound recording devices. They are political decisions, and ones that In 1890, the population of the planet was look beyond how governments can assist big about 1½ billion. For most people in the corporations to maximise profits. This kind of world—the peoples of Africa, Asia, South and debate has largely disappeared in Australia. Central America—these technological innova- tions and their associated products were not We should be sharing in a community widely in use until the last few decades. For vision of a more socially and ecologically well over half the world’s population, they are sustainable future. But, instead, we have a still not being used. great policy abyss, which is the result of a blind belief by government of the interna- It has been in only the last 50 years that we tional free market ideology. The Greens (WA) have seen really wide scale and effective disagree with the emphasis that puts interna- exploitation of the fish populations of the tional competitiveness above all other values. oceans. It has been in the last 25 years that There are other choices, such as increased we have seen a dramatic collapse of several regional self-reliance, less dependence on pelagic fish species. It has been about 50 low-value exports, more import replacement, years since the first major transnational more industries involved in value adding—all corporations began to shift mineral resources within a context of sustaining the ecology, for processing in a truly global way. finding solutions to global problems, improv- It has been only about 50 years since the ing social amenity, more efficient use of wide scale use of chemicals in agriculture, energy and resources and, particularly, more pharmaceuticals, food, and production has reliance on renewable energy, reduced use of become common. It has been only 50 years non-renewable resources and reduced use of since they entered the ecosystem, our food renewable resources, especially where they chains, our atmosphere and our oceans to any are being used close to, or beyond, their rate large extent. We have seen dramatic change of renewal. in climate, change in incident solar radiation, Monday, 26 May 1997 SENATE P3595 changes affecting the formation of birds’ afford food and the lack of resources to eggs, and changes in the growth of plants, the produce their own food in sufficient quanti- survival of fish and aquatic plants, and the ties. We already see famine creating a class respiration of algae. We have seen DDT, of environmental refugees and interacting PCBs, and CFCs, photochemical smog, with conflict within and between nations. cyclodienes, acid rain and global warming. It has been about 35 years since Rachel All these are extremely recent on the scale of Carson wrote Silent Spring, Von Forster human existence or ecological time in terms published his population article and, general- of global impacts. ly, environmental issues attained prominence. Humans have seen increases in cancers; we Green thinking has really developed from that have seen growing problems with chemical point. It is 25 years since the Tasmanian sensitivities, immune system faults and major Greens became the world’s first green party. increases in technology-related diseases. In Since then, we have seen green parties with 1950, there were still only about 2¼ billion the same core values arise in many nations people on the planet; around four-fifths of around the world and at all levels of political these people remained users of pre-industrial activity. technologies. The impact of modern technol- ogy was the impact experienced from its use Contrary to those who claim that the greens by about 300,000 people. want people to starve in the cold and dark, it is clear to anyone examining green thought It has been about 50 years since television that most greens are not Luddites or began to be common anywhere and there have misanthropes. The basic premise of green been 50 years of radar and 40 years of UHF thinking is that we must look open-eyed at broadcasting. It has been about 25 years since the future and adapt ourselves, create limits the advent of personal computers and photo- for ourselves and develop technological and copy machines, and under 10 years since the social structures that will allow all people— advent of mobile and cordless phones. In the and their children, grandchildren and great- last 50 years, we have been in a period of great-grandchildren—to live in relative har- wildly accelerated environmental exposure to mony with each other and nature; to have chemicals and electromagnetic fields. what they need to form rich lives; and to The population of the planet is now nearly foster a peaceful, tolerant and more equitable six billion. An increasing number of people society, one in which all members of the are not only using modern technology but are community take an active part in determining dependent upon it. Worldwatch Institute the social frameworks for our future. This is believes that soon it will be impossible to the meaning of the four pillars of green feed the population without general, almost politics; that is, ecological sustainability, universal, use of modern chemical or me- social equity, peace and participatory democ- chanical agriculture. It warns that this is not racy. sustainable nor is future population growth For decades now green thinkers have sustainable for long in terms of available proposed solutions and pointed to the tech- food. Our food resources—a renewable nologies that would enable us to retain a resource—are being used faster than is sus- developed way of life without destroying the tainable. life systems, biodiversity and beauty of the We are mining our soil; it is dependent on world around us. Often these were ways that petroleum-fuelled agriculture. Major global would require a major re-orientation and petroleum experts estimate that global oil commitment—including capital commit- production is peaking and will soon decline ment—but which would result in transforma- and become markedly more expensive. This tions that would see us better off, with more is a major threat to providing the food to options and lower ultimate maintenance costs. sustain a population where millions of people It is difficult to re-orient the direction of each year already die from a lack of food. In sociotechnical development. The greens have part, this translates to the lack of ability to been cognisant of that and have stressed the P3596 SENATE Monday, 26 May 1997 need to act early, phase in and make the manufacturing, design, contracting and areas transition as easy as possible. We have with high value-added components and stressed the need for urgent action, in part to potentially high levels of employment. If we reduce the costs of transition. We have said went so far as to challenge the road- freight again and again that if we wait until we are and private car structure, we could reduce the forced by events to address these problems, ultimate imports of oil we will soon have to the costs will be horrendous. have. We would have another system with We now see the outcome in relation to associated manufacturing technologies to sell greenhouse emissions. After years and years in places like Bangkok, Bombay and Beijing. of Australian governments ignoring the calls There are implicit agendas; there may be to create a viable policy, after years of pursu- principles we make decisions on, whether or ing policies to attract energy intensive indus- not we recognise them. In this place, we are tries without addressing the need to come up actively creating the future, particularly where with cleaner energy sources, the current we support one industry or activity over government is now trying to undermine the another. The Greens have opposed spending global response to greenhouse and, in case roughly a billion dollars a year subsidising that fails, it is trying to claim exemption on energy use and digging up our resources to the basis that we should be pitied because we sell them cheaply. We do not believe that the use too much energy, and it would cost us Australian community is helped by promoting money to do our part, so we shouldn’t need extractive industries over manufacturing and to. we do not believe that taxpayers are getting In this regard, we will put an amendment to any fair return on the billion dollars they are end the subsidy of energy use to fuel the giving to the mining industry. cheap use of non-renewable resources. We Senator HOGG (Queensland) (6.37 have options in this country other than dig- p.m.)—I rise this evening to speak in this ging it up, cutting it down or killing it and debate on the issue of cement in particular shipping it all away and seeing the profits because of the interest in Queensland in the shipped away with it by the transnationals mining of limestone. Limestone, of course, is that own these mainly low-labour, low-em- used predominantly in the cement manufactur- ployment industries. ing, flux and smelting of lead and copper. If we want to provide public subsidies to The industry is not an insignificant contribu- industry, I would like to see us move towards tor to the Australian economy: it employs creating a sustainable energy industry here. some 2,600 people, has fixed assets of over We could vastly improve our impacts on the a billion dollars and a tax on profit last year, planet in the process. But, guess what? In the I believe, of in excess of $62 million. The budget a substantial chunk was cut from the industry mines limestone for the sole purpose Energy Research and Development Corpora- of recovering the mineral calcite, or calcium, tion funding, and the national energy efficien- from what is a naturally occurring raw materi- cy program is being wound up—tiny amounts al. compared with the massive handouts to some of our largest energy consumers. The industry enjoyed the diesel fuel rebate, as we have heard already in this debate, prior There is a future for sustainable energy, for to legislation in July 1995. However, arising devices that make use of sun, wind, tide and out of legislation in that year there was co-generation. There is a major global market confusion as to the application of the DFR to for this, particularly if the international com- certain industries. That was later clarified by munity manages to put hard targets on green- the then Minister for Small Business, Customs house emissions. We used to be world leaders and Construction in a letter dated 9 August in these areas. 1995. The letter, in part, says: There is another entire market for making . . . rebate is no longer payable on diesel fuel goods that allow energy to be conserved and purchased on or after 1 July 1995 for use in the used efficiently. These industries are in extraction of limestone per se, as the law now Monday, 26 May 1997 SENATE P3597 clearly excludes limestone, amongst other things, clearly establishes there the confusion that from the definition of ‘minerals’. However, the law reigns. In the minority report my colleagues continues to allow rebate to be paid where an have clearly outlined the position and, for activity can be said to be ‘mining for minerals’ and does not simply constitute the extraction of the now posterity, it is worth going through some of excluded materials. those key points. Point No. 6 in the minority report says: It went on—and this is the crux of the letter: This Inquiry has revealed that the actual basis for Therefore, the legal test is whether the activities this Bill is an Agreement struck between a High of a claimant are carried out with a view to recov- Level Group (HLG) and a Government negotiating ering from the limestone ore, a mineral or minerals committee... such as calcium carbonate (or calcite). If this is the case, then the rebate is payable. So that was the basis, we are led to believe Whilst there was some comfort gained from from this report, of the legislation that is that, with the change of government there was before us. As you read down in the minority a further item of correspondence, which was report, at point No. 9 one sees that: referred to in the debate earlier this evening, All of the Industry Associations testified that the dated 16 October from the current Minister Bill explicitly dishonoured the agreement reached. for Small Business and Consumer Affairs, Mr Here we have a breakdown between the Prosser. It is most confusing because it says industry group and the government. As my that: colleague, Senator Bishop, said before, this is Most quarrying materials previously eligible for a most unfortunate aspect of what has taken diesel fuel rebate became ineligible on 1 July 1995. place in this particular case. The report goes The only materials presently eligible are limestone on to talk about the areas in dispute: for use in de-acidification of soil in agriculture and materials from which the mineral content is extract- . . . there remain areas of continuing dispute. For ed, such as rutile. example, the Government contends that the Indus- try agreed in the HLG that the Salt Industry would Therein lies the dilemma—just in that letter not be included in the rebate. Industry strongly itself. Really, the cement miners maintain that reject this. They claim that their position has there is an extraction process anyway from always been that the Salt Industry is entitled to the limestone and it should therefore attract remain eligible. and retain the diesel fuel rebate. The Further down it talks about government minister’s letter went on: involvement: While the government is presently considering . . . the Minister for Customs unilaterally and further changes in eligibility, particularly in the without consultation, with the industry varied the mining sector, these are directed at containing Agreement... eligibility. Budget circumstances preclude consider- ation of proposals to widen eligibility or re-instate No wonder there is dissatisfaction. No wonder activities which may have received the rebate there are problems with this piece of legisla- previously. tion that the government has brought here on What we have is a debate about whether or this occasion. Point No. 12 in the minority not limestone used in cement should attract report says: the DFR and, if so, whether it is proper that While the HLG appears to have been broadly these people should receive the DFR. I be- representative of mining interests, it did not repre- lieve this has been subject to court action and sent, nor did it purport to represent the Cement the courts are currently trying to deal with it. Industry. Whilst the courts are still trying to deal with That point further says: this issue we now have legislation before the . . . the concern of the Cement Industry to continue Senate which seeks to exclude these people to be eligible to claim the rebate has been set aside from any further chance of accessing the by the Government. DFR. That sets the framework in which this legisla- It is interesting to look at the inquiry tion has appeared in this chamber. It is inter- conducted by the Economics Legislation esting to note that the conclusion drawn in the Committee into this particular legislation. It minority report says: P3598 SENATE Monday, 26 May 1997

It is clear that the Cement Industry mine lime- tive gap between Australia and our South East stone in order to break down that raw material and Asian competitors. obtain Calcinite as a key ingredient in the manufac- ture of cement. Clearly, this is about the viability of a major industry in my state. I did at the outset outline It goes on: that there are $1 billion of assets in this It is also clear that this industry has previously had industry, which employs more than 2,600 an entitlement to receive the rebate. That entitle- people Australia-wide. So we are not talking ment is on hold at the present time because of legal action to reassert it in the face of the withdrawal of about a small employer or a small industry. If the rebate by Customs from some, not all, Cement there were a competitive edge that gave this operations. industry a degree of viability, it was access to the diesel fuel rebate. They seem to have been They go on to say: excluded in the debate to a substantial extent I note that Customs, on learning that some cement by the HLG itself and also by the govern- operations received the rebate, indicated to the ment. Committee that it would withdraw the entitlement from all Cement companies. So these people have, in my view, a real That is like saying: ‘We are now going to gripe and a real axe to grind with the govern- take our bat and ball and stumps and go off, ment on this legislation. The government has and that is your bad luck; you will have to not thought this out well. It is patchy at best. play on the field without any equipment.’ The It is about time the government took a close minority report says at point 7: look at the impact of this legislation, stopped It would appear that the Customs decision with trying to pick winners in this game—whether respect to the Cement Industry has been spurred by it be the mining industry or the farming the obligation placed on it by the Government to industry—and looked at doing something make savings in the scheme rather than the Cement positive for the maintenance of the competi- Industry’s right to eligibility. tiveness of the cement industry. That is the real nub of this debate. It seems to It is interesting to look further at the views be about a disagreement between the govern- as outlined in the letter by the Association of ment and the industry. It seems that the Mining and Exploration Companies to mem- cement industry are finding themselves out on bers of the Senate, which piece of correspond- a limb. In the face of real challenges to their ence says: industry, they are seeking to claw back something which makes their industry viable. AMEC believes however that the legislation still This is supported in their submission to the does not go far enough. Senate Economics Legislation Committee. It Of course, this is after there has been a is worthwhile noting, looking at the degree of supposed consultation between the HLG and expenditure over a 10-year period in my state the government and those people who may alone, that some $26 million has been invest- well have been disaffected by the govern- ed by Queensland Cement Ltd in Gladstone ment’s decision. The letter then goes on to in the processing and manufacture of cement. say: The Cement Industry Federation’s submission says: AMEC seeks your assistance in this matter so as to ensure that the reduction in the mining industry’s The potential for surplus capacity in the South East eligibility to access the DFRS is limited only to Asian region over the coming years will expose the those items listed in the agreement reached in the Australian Cement Industry to the threat of place- high level negotiations last year. Until that time it ment of larger quantities of imported cement. is our view that the CELA Bill (No. 2) 1996 is a Existing anti-dumping legislation in Australia will breach of the agreement and will have a significant not serve to protect the domestic industry in the negative impact on the international competitive- event that Asian economies can produce cement at ness of the Australian mining industry. a lower cost. Any additional imposts make the task all the more Surely the government is going to take note difficult. The potential loss of the diesel fuel rebate of that sort of plea coming out of industry. further increases the load and widens the competi- They go on to say: Monday, 26 May 1997 SENATE P3599

Government has indeed not kept faith with the some retrospective legislation to stop an mining industry in that, following the agreement, appeal by three major construction companies it sought to attain its objectives by stealth. in Australia—CRA, Boral and Pioneer—who Nothing can be more damning than those were claiming between them, as a result of an words coming out of AMEC, which obviously AAT determination, up to about $80 million has a great interest in seeing that the DFR is going back to 1986 or 1987. This was a real applied equitably throughout the mining try-on. I asked the Senate to support legisla- industry. tion so that these companies would not be So in summary, I believe that what I have able to claim that. They had already spent the put to the chamber here this evening warrants money in running the projects. They had the government not pursuing its current already paid for the diesel. This was a try-on legislation. In Senator McGauran’s contribu- by some consultants who said to them, ‘If we tion to the debate he talked about how im- win this case, give us our percentage cut,’ portant the mining industry was. He talked which I imagine would have been quite about any increase in costs being the death sizeable. knell of the industry. I can only echo and When I proposed that in this Senate, I was support those words because I think in that roundly attacked by National and Liberal respect he is quite correct. Justice has to be Party members for doing something outra- done for the cement industry. The DFR has to geous in relation to retrospectivity. In the end, be reinstated so that the cement industry can I could not convince a majority of the Senate remain competitive in the Australian market- in relation to that and the retrospectivity was place and can continue to operate as a major lost. My last recollection is that the AAT contributor to the Australian economy and, in decision was overturned in the Federal Court, particular, to the Queensland economy. but I suspect a challenge is before the High Senator SCHACHT (South Australia) Court at the moment because of the amount (6.52 p.m.)—I rise to speak in this second of money at stake. I certainly support the reading debate on the Customs and Excise customs department fighting that case all the Legislation Amendment Bill (No. 2) 1996, way through. which I suppose euphemistically could be I was roundly attacked as doing something described as the diesel fuel rebate scheme really evil about retrospectivity in this area. debate. I rise to speak not at any length. It is Then we looked at ways to tighten up some not my area of shadow ministry responsibility, definitions which were very much based on but I could not help but become involved by previous Auditor-General’s reports and gener- saying a few words in this debate as a former al comments around the place about the customs minister in the previous government looseness of the administration, which is not who dealt with this scheme and made recom- Customs’ fault. This scheme is almost impos- mendations in I think the 1995 budget about sible to administer accurately and in a way changes to the diesel fuel rebate scheme. that guarantees that the policy intent of When I proposed certain changes, which government and parliament is carried out and were very modest compared with what this that all claims, totalling I think between government is putting up today as far as the $1,200 million and $1,300 million, if not effect on expenditure is concerned—it was a $1,400 million, can accurately be said to have few hundred thousand dollars in some cases been claimed for the legitimate purpose for or a few million dollars in other cases—I do which the scheme was established. not think that in any particular area did I When I made recommendations in those propose changes that were to rake in tens of areas—the debate went on, I think, for several millions of dollars or hundreds of millions of days—I was roundly condemned that this was dollars in expenditure in relation to the diesel an attack on the mining industry, on farmers fuel rebate scheme. and on the productive capacity of Australia. There was one particular aspect for which The senators who led the charge in this place I sought support from the Senate: the need for were the late Senator John Panizza, Senator P3600 SENATE Monday, 26 May 1997

Crane, Senator McGauran, other National and Senator Panizza would have physically Party senators and Senator Ferguson. They taken action against us. They would have were the most vociferous about this being an screamed the roof off in this place and gone evil and terrible thing I was doing on behalf around Australia even further than they had, of the government to tighten up eligibility that saying what a dreadful government this was. may save the taxpayers of Australia a few Now we find dead silence, utter silence, from million dollars and no more. those senators opposite who shouted and I look forward to hearing Senator Crane and screamed in an hysterical way. other Liberal Party senators and National Sitting suspended from 7.00 to 8.00 p.m. Party senators who were so vociferous in their Senator SCHACHT—Before the dinner remarks only two years ago justify these break I was pointing out the hypocrisy of a changes to this scheme that are going to save, number of members of the government who, under one estimation I have seen, $660 when in opposition in 1995, were making million over four years, with a minimum of very strong, bitter and hysterical attacks, in $110 million plus per annum. my view, on a proposal I had as minister for When I read the second reading speech customs to change some administrative provided by the Parliamentary Secretary to the matters that would have saved revenue of Treasurer (Senator Campbell), I find that all only a few million dollars at the most. As I the reasons given for justifying this are the pointed out before the dinner break, this was same ones I gave to save $10 million or $15 attacked as though this was a wholesale attack million. The Auditor-General’s reports—I by the government on the viability of the think there have been four or five over a mining industry and, in particular, farming in decade or more—were dismissed by Senator Australia. They were hysterical attacks, but Crane, Senator Ferguson and the late Senator they were used with considerable political John Panizza as irrelevant in this administra- effect and a number of my amendments were tion. Now this government comes in here and defeated—although a number were carried, quotes pages of Auditor-General reports to despite the bitter opposition from some justify their saving $110 million plus per senators opposite. annum in the diesel fuel rebate scheme. As I pointed out before dinner, we now When I had the temerity to point out in have a bill before us in which, in various Senate estimates hearings as well as in this estimates—whether you look in the second chamber to the taxpayers of Australia that this reading speech, the explanatory memorandum scheme was growing at a rate of hundreds of or the government’s own budget documents— millions of dollars per annum and that people you could calculate there are savings to the ought to understand that this is a major government over the next four years of over expenditure item for the Australian taxpayer, $600 million, which is certainly over $150 I was again accused by those senators oppos- million per annum. Another estimation is that ite of trying to undermine the scheme and it could be just over $100 million. Whichever undermine the mining and rural industries of way you look at it, they are significant and Australia. substantial changes to this scheme. Senators from our side have spoken most I look forward to the justification from eloquently about the way in which the indus- senators like Senator Crane, Senator Ferguson try is being dudded in the negotiations as the and National Party senators who were so Treasurer (Mr Costello) and the Minister for vociferous in their opposition when only a Finance (Mr Fahey) have driven a program to few changes were made. As I pointed out, the make savings from this scheme. I suggest justification in the second reading speech by that, if we had tried two years ago to make a the Minister for Small Business and Con- minimum saving of $110 million a year from sumer Affairs (Mr Prosser) was to quote the the diesel fuel rebate scheme by doing a Auditor-General’s report. When I quoted that, number of the things that are being suggested it was ignored at the time as not being rel- in this bill, Senator Crane, Senator Ferguson evant. All the arguments I used for a few Monday, 26 May 1997 SENATE P3601 million dollars worth of savings have now HEARING SERVICES AND AGHS been used by the government to reduce REFORM BILL 1997 expenditure on diesel fuel rebate by some $600 million over four years. Second Reading Debate resumed from 5 March, on motion There is no doubt, and I accept the fact, by Senator Campbell: that, in any fiscal planning, when you have a program that has grown in 1983-84 from That these bills be now read a second time. under $200 million to now $1,400 million or Senator FORSHAW (New South Wales) $1,500 million and it may reach $2 billion by (8.06 p.m.)—The legislation before the Senate the year 2000 in revenue forgone, no govern- is the Hearing Services Administration Bill ment is going to be able to ignore the conse- and the Hearing Services and AGHS Reform quences of such expenditure. I only wish the Bill 1997. The position of the opposition is members opposite had the good grace to at that we are opposed to this legislation. We are least apologise for what they said in 1995, opposed to this legislation for very good compared with what they are now putting to reasons. In particular, it is our view that what the parliament. the government has in mind here—namely, to make changes to the operations of Australian The opposition will be moving a second Hearing Services to exclude certain clients reading amendment at the vote on the second from being able to access those services—is reading. I look forward to participating in simply unnecessary. Secondly, the proposal to some aspects of the committee stage of this corporatise Australian Hearing Services is one bill when we start dealing with definitions, which we believe is not necessary and indeed where, as they say, the devil is in the detail is contrary to the public interest. on these matters. I will look forward, in particular, to listening to Senator Crane and I understand from the Parliamentary Secre- Senator Ferguson use the same words as they tary to the Minister for Health and Family did two years ago in attacking my legislation Services (Senator Ellison) who is at the table to now defend the government, which is that the government will be moving certain taking a much larger sum out of the program amendments later which relate to the original and is doing so in a way that clearly, by all proposal to reduce the qualifying age from 21 the evidence I have seen, has even dudded the years to 18 years. That would have had the industry groups who were involved in discus- effect of excluding, as clients able to access sions through 1996 and into early 1997. the services available under the scheme, persons between the ages of 18 and 21 years. This bill really proves that, even if you are I understand that on review, and no doubt in opposition for a long time, you should try due to the persuasive arguments put by the to maintain some consistency about how you opposition senators on the Senate Community argue fiscal and expenditure matters. If you Affairs Legislation Committee, and due to the do not, it will always come back to haunt you opposition from people involved in the provi- when you become the government. That is the sion of assistance to those who have impaired main reason why I wanted to speak in this hearing, the government has revised their second reading debate. It is with some ironic position and will no longer proceed with that amusement that I look at members opposite proposal. That is a very welcome move by the in the government now justifying a much government, we would say. It demonstrates bigger change to diesel fuel rebate than they that, as we said at the outset, this legislation were ever willing to support when in opposi- was ill-conceived, it was rushed, it was not tion. properly thought through and it would have Debate (on motion by Senator Ellison) harsh consequences for certain groups within adjourned. the community, one of those groups being students, school leavers and others between HEARING SERVICES the ages of 18 and 21 years. There are still ADMINISTRATION BILL 1997 aspects of this legislation which the opposi- P3602 SENATE Monday, 26 May 1997 tion believes make it contrary to the public ultimate privatisation of AHS. The legislation interest and should, therefore, be opposed. was appropriately referred to the Senate I indicated a moment ago that this legisla- Community Affairs Legislation Committee tion was rushed. As was pointed out in the which considered the bill and handed down other place by the shadow minister, Mr Lee, its report in March of this year. I would urge on 26 February, this legislation was put on all honourable senators to read that report and the Notice Paper and introduced the same particularly to take note of the minority or day—on 5 February—with the intention that dissenting report of the opposition, and also, it would operate from 1 March this year. That in certain aspects, the Australian Democrats. was a totally unreasonable proposition for the The report clearly acknowledges the im- government to put forward and one which pacts that these proposals were going to have clearly would not have allowed sufficient time upon client groups in the community and also for the public, particularly those involved in upon the continued operation of Australian the health sector and, indeed, the parliament, Hearing Services. I do not need to go through to give it adequate scrutiny. So from the all the arguments advanced during the outset the legislation had the major and committee’s deliberations. Other speakers who fundamental flaw that it was clearly rushed will follow me who were members of the legislation. committee when the legislation was looked at The major impacts of the legislation go to will no doubt address them. four specific areas which can be looked at as What I want to say—and to reiterate—is essentially two major proposals. The four key that once practitioners, affected parties and impacts of the legislation were, firstly, as I senators had a chance to look at the impact of have said, to remove access for 18- to 21- the legislation as it affected young people, it year-olds. That will apparently be addressed became clear that it was a pretty stupid by an amendment to delete that proposed proposal in the first place. The government change from the bill. The second major area had said that this legislation was going to of impact, and therefore public concern, was improve cost-effectiveness and efficiency. Yet that the legislation proposed that persons it also said that the overall impact would be currently eligible under the scheme because cost neutral. they hold senior health care cards would no Clearly, now that the government has longer be eligible. recognised the error of its way in proposing The third major impact of the proposed to exclude 18- to 21-year-old young people, legislation was the introduction of a voucher now that it has recognised that that proposal system whereby the minister, through the was wrong and will now withdraw it, it has department, would oversee a system of clients acknowledged that the original cost saving for being issued with vouchers with which they that proposal was only of the order of half a could then seek to have services provided million dollars. A very small amount was from either Australian Hearing Services or going to be saved by that measure, notwith- some other private sector provider. Fourthly, standing the fact that many young people the proposed legislation seeks to corporatise were likely to be affected as a result of it. Australian Hearing Services leading, we While I applaud the government for having would suggest, to its ultimate privatisation in come to its senses on that proposal, I have to the future. say that it is something that should never They are the four key areas of the proposed have been there in the first place. bills but, as I said, they fall into two broad The other issue is the one that I have categories: firstly, those proposed changes highlighted, namely, the proposal to corpora- which remove entitlements from certain tise Australian Hearing Services. It is noted groups within the community, namely young that, overall, there are no net savings to people between 18 and 21 years of age and Commonwealth expenditure from this measure persons holding senior health care cards; and, or, indeed, from the legislation in total. As the secondly, the issue of corporatisation and opposition senators said in the minority Monday, 26 May 1997 SENATE P3603 report, we do not oppose corporatisation for Because of its buying power, its ability to buy in the sake of it. Indeed, when we were in large quantities, the AHS is able to provide batter- government, we were on occasion criticised ies at a 33 per cent and hearing aids at a 50 per cent discount on what people would pay privately. for some of the decisions that we made with AHS hearing aids are provided to people at a price respect to the corporatisation—or the eventual that is $400 lower on average than private sector privatisation—of government instrumentali- providers. This represents a massive saving to most ties. I understand that, and accept it. people. But there comes a time where, rather than The Centre for International Economics said that jumping in holus-bolus—as this government not only were the AHS’ costs per new adult client lower than the fee paid for private sector services, would—on an agenda of corporatisation but the AHS kept its prices well below the OECD and/or privatisation, you have to look at the average. service itself and its effectiveness and deter- The AHS’ joint venture with Australian Hearing mine whether or not it is doing what it is Aids Pty Ltd means the AHS is not having to supposed to do. This government has caught import hearing aids and is creating highly skilled the corporatisation-privatisation disease and jobs and foreign investment, sales and exports in is—as in this legislation—proposing to divest high quality hearing aids and devices worth $200 itself of its involvement in these entities million. without giving any consideration to their Corporatisation of services is certainly beneficial effectiveness. where greater efficiencies can be achieved. In this instance, the Australian Hearing Services is provid- I would like to conclude on this point by ing an efficient, cost effective and high quality referring to the committee’s report—pages 13 service to Australian taxpayers, the deaf and and 14, in particular—where the Labor sena- hearing impaired and the Government. It is also tors put the position most appropriately. The helping generate skilled employment and Australian report states: export and development in hearing technology. There is no evidence that this change to the struc- The second aspect of this bill is the administrative ture of AHS will increase the efficiency or quality changes and corporatisation of the AHS. The first of the service. step is to split the two functions of the AHS being regulator and service provider. The regulatory I have not heard from the government that functions will be transferred to a new body and the they challenge the fact that AHS is cost service provision will be retained by the AHS. We effective and that they challenge that summa- are not in principle opposed to this division but the ry of what AHS contributes, firstly, to im- benefits of corporatisation appear questionable when the additional costs of restructuring and proving the hearing ability of those people duplication of administration are provided by the unfortunate enough to be hearing impaired cutting of benefits to the deaf and hearing impaired. but, secondly, does so in a way which is cost effective for the taxpayer and for the govern- Further on the report states: ment. The Australian Hearing Service points out that the cost efficiency and effectiveness of the AHS has One has to ask why it is that the govern- been independently audited and verified by the ment would want to corporatise, to privatise Australian national Audit Office and the Centre for such a service. Why would they want to National Economics. "To date the cost to the introduce a system which clearly, firstly, will taxpayer of AHS direct services has been signifi- be disadvantageous to certain client groups, cantly less than that of comparable private sector services." particularly those on seniors health care cards but, secondly, brings with it the clear prospect The Deafness Forum of Australia said in its of a less efficient, less uniform, less beneficial submission that the AHS has been instrumental in setting and improving the quality and standards of system for those people in need of these services provided by audiometrists in Australia, and services. The opposition does not support this has worked to improve training in audiometry and legislation and it will be opposing it in due to have better hearing technology developed and course. manufactured in Australia. The Deafness Forum wants to see existing services maintained, and this Senator ALLISON (Victoria) (8.24 p.m.)— will not necessarily be achieved by the private The two bills that we are considering today, sector. the Hearing Services Administration Bill 1997 P3604 SENATE Monday, 26 May 1997 and the Hearing Services and AGHS Reform ment does not intend to move an amendment Bill 1997, will bring about very significant to restore the eligibility of seniors health changes to the provision of hearing services cardholders to government funded hearing within this country. services. Removing eligibility for seniors These bills facilitate several of the measures health cardholders flies in the face of the which were outlined in the 1996-97 budget, coalition’s pre-budget social security policy including the introduction of a voucher which was ‘to maintain all current Common- system for the delivery of government funded wealth concessions’. It is very difficult to hearing services; the introduction of managed understand why the government would want competition between the government and the to break one of these election promises when private sectors in relation to the provision of the full extent of the savings to be derived hearing services; the introduction of full from this measure, by the government’s own commercial practices to the Australian Hear- figures is, as I understand it, zero dollars. So ing Services; and the corporatisation of the with the saving of zero dollars, the Democrats Australian Government Health Service. do not see how this little measure can be justified and we will be supporting the ALP’s The Hearing Services and AGHS Reform amendments to fully restore the eligibility of Bill also removes the eligibility of seniors seniors health cardholders to hearing services. health cardholders for government funded hearing services and it lowers the eligibility While the Democrats view the move to age limit for young people from 21 to 18 corporatise hearing services in Australia with years of age—although, as I understand it, the some degree of caution, we are not surprised government will be moving an amendment at all by the course that this government is tonight which will restore the full range of taking. It is very much in line with stated hearing services to young people between 18 policy goals and the policies we have seen and 21. The Democrats were pleased to see introduced in other areas. However, we urge that the report of Senate Community Affairs the government to closely monitor and to Legislation Committee was taken on board to evaluate the effects of these reforms once they some degree by the government and that it are put in place and to ensure that all com- has decided to reverse its previous decision to munity service obligations continue to be met remove the eligibility of young people in that by the Australian Hearing Services. age group. It is refreshing to see that, at least The Democrats will not be opposing Part 2 on this measure, commonsense, it appears, of the Hearing Services and AGHS Reform will prevail. Bill, which sets up transitional provisions for We think this is an important win for young the corporatisation of the Australian Govern- hearing impaired people because it means that ment Health Service. However, I do want to the government seems to be acknowledging make a few comments about the corporatisa- the many additional obstacles that these tion of the AGHS. We have supported the young people face during their formative and corporatisation of statutory authorities when educational years. These additional obstacles we have felt a real benefit will result from the mean that most young people who are hearing process. While I could not say the arguments impaired are far more likely to complete their in support of the corporatisation of the AGHS formal education at a later age than their non- are compelling, it is a fact that this organisa- hearing impaired counterparts. This also tion has been operating as a business unit—on means that young people who are deaf are a full cost recovery basis—within the Depart- much more likely to enter the work force and ment of Family Services and Health for some begin to earn their own income at an older years. As such, there seems also to be no age as well. especially compelling reason for not corpora- For these reasons, the Democrats will be tising it. happy to support the government’s amend- Of course, we all know that the process ments to this section of the bill. We are, commenced under this bill—that of establish- however, disappointed to see that the govern- ing a government business enterprise—is Monday, 26 May 1997 SENATE P3605 usually the precursor to full privatisation. I with is a body which is still wholly owned by think the minister should be a bit more the taxpayers of Australia but for which the forthright about the government’s intentions federal government is no longer accountable in this regard because what is happening here and for which the minister no longer accepts is that an element of uncertainty is being any responsibility. introduced into this area. Whilst I would not The corporatised body often no longer has be so concerned about the privatisation of any requirement placed upon it to act in the some aspects of the AGHS, I would be very public interest and has no or few service concerned about the loss to the public sector obligations to low income or disadvantaged of some of the expertise, for instance, which clients. It often ends up being a rather secret- has accumulated within the AGHS. ive and shadowy agency for which, at the end We are currently seeing the effects of the of the day, nobody takes much responsibility. winding back of public health inspectors and You can look no further than the AIDC or the health inspection functions around this coun- ADI for examples. try. The health consequences could be equally We all know that the people most likely to disastrous if the AGHS was privatised and the benefit from corporatisations are senior government completely gave away its capaci- managers who transfer from fully public ty to conduct health and medical assessments. bodies to the corporatised body and then on For example, as I understand it the AGHS to the private body, usually presiding over currently carries out asbestos screening for reductions in services along the way and a former and civilian members of the armed hike in fees as well. forces and, as of fairly recently, for World So the Democrats have not supported, and War II merchant mariners. That seems to me do not support, corporatisations where such a to be an important function which could not loss of accountability and transparency occurs. necessarily be provided at a reasonable cost I place this government on notice that we will in a private sector environment to those who not support those outcomes when later legisla- need it most. tion relating to this corporatisation comes to The flip side of that, of course, is that a the Senate. corporatised AGHS may very well be able to There are a couple of matters which have market this particular kind of assessment as come to my attention just today. The first is being something in which it has expertise and the implications of this bill for health and, in for which it may develop a clientele. I do not particular, the use of hearing aid technicians think it is any secret that the AGHS has not and the additional costs of providing such always enjoyed the greatest of reputations. paramedical staff with adequate supervision. Many people, particularly in the disability The second is the impact this legislation will sector, have long been critical of the AGHS’s have on our local and very successful hearing processes, medical staff and standards of aid manufacturing business. Neither of these service. I know that a number of people in the issues was canvassed during the inquiry into disability services sector are not unhappy this legislation a couple of months ago. But about the AGHS being corporatised and the they have emerged. These are two matters I idea of federal and state departments having put on notice to the government that I will a greater choice in who, or what services, ask quite a few questions about once we provides their health assessments. move into the committee stage. So, in short, while the Democrats express Senator GIBBS (Queensland) (8.34 p.m.)— some reservations about where the AGHS The Hearing Services Administration Bill corporatisation may end up, we will not be proposes significant changes to the way in opposing these transitional amendments. which hearing services are delivered in the However, I do want to make the point that the future. It will ensure that those people who Democrats have been very unhappy with the need and who can afford hearing aids will be loss of accountability which usually accompa- fine, but those who are on low incomes will nies corporatisation. What we often end up end up on long waiting lists and others, like P3606 SENATE Monday, 26 May 1997 students, will miss out altogether. We now ment can create enough jobs, which will lead know that the government has reviewed their to jobs for these students that will make them position, but it is important to put on the self-sufficient members of society. We have record what this legislation would have here a group of people with disabilities who meant. have an excellent chance of leading produc- How many students can afford $3,000 to tive lives, and this government plans to put $5,000 to pay for two hearing aids and then impediments in their way. Where is the logic pay $100 to $150 per year for batteries as in this? It seems as if no government minister well as hundreds of dollars whenever repairs thought to ask Treasury that question when are needed? I do not know too many students this ridiculous slash was made in the budget or young people who can afford those sorts of process. costs. Would the government prefer to see these The Deafness Forum of Australia has people forced to give up their education and received a great deal of reaction to the pros- become reliant on the government for assist- pect of 18-, 19- and 20-year-olds having to ance? How many of these 18- to 21-year-old bear these costs themselves. The Deafness students are still completing their secondary Forum has said that the community is very education because their disability has ham- worried about this aspect of the legislation in pered the progress of their education? Because particular. According to the 1996 budget, the of this factor, these students deserve extra saving on making 18- to 21-year-olds ineli- consideration. gible for government hearing services is just One of the first witnesses at the Senate half a million dollars. This very small saving inquiry on the Hearing Services Administra- for the government is surely not worth the tion Bill 1997 and the Hearing Services and angst it will cause in the community and the AGHS Reform Bill 1997 was a 22-year-old difficulties for dependent students who al- woman who was completely reliant on her ready have to overcome their hearing disabili- hearing aid or her lip reading abilities. Her ty to complete their high school or tertiary name was Amanda Moir. With the assistance studies. of her hearing aid, she has been able to Tertiary students already have HECS fees complete her HSC, is in her third year of an which will have to be paid in the future associate diploma of child care and works in because most students cannot afford to pay a centre for hearing impaired children from the fees up front. Now they will have an extra three to five years of age. She has done fee which they will not be able to defer, even extremely well and is obviously making a though they may not be able to afford it. very positive contribution to the community According to the Deafness Forum—the in general and to those with a disability like government should be aware of this as these hers. She does, however, have very serious figures were part of a submission to the reservations about the threat to cut assistance hearing services bills inquiry by the Senate to 18- to 21-year-olds with a hearing disabili- Community Affairs Legislation Committee— ty. there are currently around 2,500 to 3,000 Since the age of four, her mother has clients of the government’s hearing services brought Amanda and her brother up on her program who are in the age group of 18 to own. As Amanda pointed out, it would have 21. About 800 of these are provided with been extremely difficult for her to afford a services in any one year. The cost of servic- hearing aid and also complete her education. ing these 800 clients is about $250,000 per The very short times that her hearing aid was year or less. Not everyone needs full cost in for repairs were almost impossible for her. services each year, and many merely need She felt isolated socially and struggled with maintenance. communication and her studies. What this government is doing is putting at Thanks to the service that was in place and risk the ability of these students to complete supported by the previous Labor government, their education—an education, if the govern- this young woman has been able to educate Monday, 26 May 1997 SENATE P3607 herself and has found positive employment. quantities under a long-term contract. In fact, Most importantly, she has a very positive self- the report stated that the AHS purchasing concept and had enough confidence to appear arrangements appeared to save the govern- in front of a Senate inquiry. This govern- ment at least $8 million per year over a five- ment’s alternative is to shatter the aspirations year period. of young people like Amanda, make them The AHS will lose business under the reliant on government benefits and leave them proposed voucher system. Therefore, their with a much lower feeling of self-worth. ability to secure lower prices will be lost and The holders of Commonwealth seniors so will their $8 million savings. I do not health cards have already lost the Common- believe that the private sector, which will not wealth dental health program. Now they will have the tax exemptions which the AHS have also have to find the $3,000 to $5,000 cost and will not have the monopoly of the AHS, for new hearing aids. To qualify for these will be able to provide the hearing aids for a seniors health cards, a person must have an lower cost. income of less than $20,841.60. The cost of So how is the government going to save the two new hearing aids would come close to a money they claim? Clearly, there are two quarter of that income. Indeed, 16.4 per cent alternatives if the government is determined of people between 65 and 69 years of age to keep to their budget slashing targets. One have a hearing impairment, and 22.6 per cent alternative is that the voucher system will of 70- to 74-year-olds and 31.8 per cent of only give people vouchers which will pay for those over 75 also have hearing impairments. part of a hearing aid. As time goes by, the These figures show that there will be many voucher will pay for a steadily declining people in the community affected by these percentage of a hearing aid. In reality, vouch- changes in eligibility. This government does ers will merely give people a discount on not have any compassion or mercy for these hearing aids. Everyone will have to top up people. ‘Let the old and the young who have their voucher to a greater extent every year. a low income suffer,’ seems to be the This top up factor for the voucher system is message the government is strongly sending already being openly discussed by potential out. recipients out in the community. It must be obvious to everybody in the The only other obvious alternative will be community that this government has no to create waiting lists. If the budget for concept of social justice. People who are vouchers runs out, people will simply have to retired have contributed to this country in wait goodness knows how long to obtain a many ways and have paid their taxes for hearing aid. This is not just my fear. People many years. They are now going to have to out there in the community are also quite pay the full amount for hearing aids. They are fearful of this prospect. going to be punished by this government This of course is a perfect way for the because their hearing has failed them. Effec- government to divert attention away from tively, this government is making them pay hospital waiting lists. The answer is to create doubly for their disability. waiting lists in other areas so Australians will On the government’s figures, it expects to become accustomed to waiting for all manner save about $1.5 million over four years of services. The cost of such budget cuts and through these cuts to the under 21 year olds waiting lists will be borne by the innocent and does not expect to save on the cuts to the who already have to cope with a disability. Commonwealth seniors health card holders. 1 The consequences of people being without But the figures do not add up. hearing aids for weeks, months or longer will The report of the hearing services review be enormous. Many will lose the ability to noted that Australian Hearing Services was communicate, others will lose self-confidence able to supply hearing aids to consumers for and their quality of life and others may even a much lower price than private sector suppli- lose their jobs or their place in an educational ers, mainly because it purchased enormous institution. This is a disgraceful and shameful P3608 SENATE Monday, 26 May 1997 action being perpetrated by this government. those who could be easily persuaded. This is It is a disgraceful and shameful action for another example of a government making ill- abolishing the Commonwealth’s dental health thought-out decisions based on political scheme, for the increased charges for home philosophy rather than commonsense. We will and community care, for introducing entry lose the expertise of a government body that fees for nursing homes and forcing many is good at speedily assessing Commonwealth elderly to sell the family home, for increasing clients because this government is hell-bent the cost of pharmaceuticals, for not increasing on privatising large sections of the Public the pension to take into account all of those Service. cost increases and for denying many the Senator DENMAN (Tasmania) (8.48 assistance of acquiring hearing aids. Is this p.m.)—I rise to speak on the Hearing Services not the government who, in the run-up to the Administration Bill 1997 and the Hearing last election, assured Australians that it was Services and AGHS Reform Bill 1997. This working for all of us? What rubbish! legislation, if it passes, would mark the start The other half of this legislation is even of an era of uncertainty for those who are more puzzling. The Australian Government deaf or hearing impaired. With regard to Health Service is going to be corporatised. particular groups of hearing impaired, it will Why? According to the government, it is cause hardship that is needless and pointless. being corporatised so that it can provide With the introduction of these bills, promis- mainly health assessment services for es made at election time have been breached. Commonwealth clients. But the AGHS is As we have said on this side of the chamber already doing this quite efficiently. The on many occasions, those who have been AGHS carries out medical assessments on singled out in the first 12 months of this people who apply for positions in the government have been those in need of an Commonwealth Public Service, migrant element of assistance to help them get start- applications and others who are required to be ed—to get them on an equal footing. So it is assessed by the Commonwealth. Why does with the deaf and hearing impaired. By and the AGHS need to be corporatised to compete large, that is the position. with the private sector if this is the service it so adequately provides? Quite obviously, it is There has been no better exemplification of being prepared for privatisation. how this government will attack those in need than the measures contained in these bills. This government has already made it easy That came out clearly in the committee for companies like Woolworths to sell petrol, hearings into these bills. I was heartened to even if it will send many small retail petrol hear though that the government will make outlets to the wall. It is also going to make it amends to the 18- to 21-year-olds. This easy for supermarket chains like Woolworths particular group would have been severely and others to sell pharmaceutical products. disadvantaged, as will other groups, but it is Surely it is not going to suggest that a com- heartening to see that there will be amend- pany like Woolworths will be allowed to do ments made to the legislation for that particu- medical assessments for the Commonwealth. lar age group. Maybe that is a little far-fetched, even for this On the north-west coast of Tasmania, where government. I live, for example, there are currently ap- However, if this is opened up to private proximately 50 young people who are in the medical practices, the applicant who is apply- age group that would have been affected by ing for a Commonwealth job or a migration the changes. Many of these people in the 18 application and who is, after all, paying the to 21 age group would, I suspect, either be doctor for the service, will be able to shop continuing their studies or be in the unfortu- around for the most lenient doctor who will nate position of being unemployed. Not only give the most glowing medical report. Most have many of these young people had troub- doctors, of course, would be too professional les recently—for example, with their Austudy to be influenced. However, there are always entitlements or with the withdrawal of the Monday, 26 May 1997 SENATE P3609 benefits they have received from the Depart- professionally services to the hearing impaired ment of Social Security—but they were not in the region, will, with the proposed reforms, going to be able to have access to the Burnie see the loss of jobs and a related falling away Hearing Centre. Their access would have of service. At the moment, there are private been—I hope it is not going to be—severely enterprises providing visiting services to the curtailed. This would have been at a period in region. But I doubt whether such services will their lives when they need to have their set up a regional based service equivalent to confidence and their self-assuredness boosted that currently provided, employing locals and and not shattered. Again, I make the point spending money locally. This type of situa- that I am delighted that amendments will be tion, I suspect, will be replicated all over moved. regional Australia. The fact that these bills would have jeopar- I would hope that, within the next decade, dised the ability for young people to com- one would be able to look back and observe municate as effectively and properly as they a change for the better. I believe prima facie have in the past with a model public service these bills do not augur well for the future provider as Australian Hearing Services is a level of service in Tasmania. I concede that true travesty. As I said earlier, many of the competition may lead to benefits in the larger 18- to 21-year-old deaf students are still at metropolitan areas, but I cannot see those school. Having this service removed would, benefits flowing at the same level to the deaf as ACROD stated, ‘Significantly impact upon and hearing impaired community in Tasmania. these students and their access to higher From a consumer perspective, there has not education’. been any real problem or disadvantage with The services provided by the Australian waiting times in Tasmania. I guess smallness Hearing Service for the 18- to 21-year-olds has an advantage. Anyway, the argument is does not just include the fitting of hearing put that waiting lists reflect a system where aids, but also other assistance devices which there is no client choice. It may also likewise can be very expensive. For parents of stu- be argued that they reflect the comprehensive dents, the financial impost in purchasing a level of ongoing after-care services that are normal hearing device so that there is ad- provided by the Australian Hearing Services. equate access to lectures and tutorials would There is, on my understanding, an expectation have caused much unnecessary hardship. I that a smaller number of private providers also wonder whether, for those young people will visit the north-west coast of Tasmania on the north-west coast and throughout and other parts of the state. But how that will Tasmania who suffer hearing loss, placing a provide a service other than offering devices, model public service provider such as the as opposed to a whole rehabilitation approach, Australian Hearing Service in a competitive is anybody’s guess. environment will lead to an improvement. Tasmania needs a public service provider It must not be forgotten that Australian like the Australian Hearing Services, as it Hearing Services currently provides hearing does not possess the mass of people to drive aids to its clients at an average price which is a competitive environment. What I fear is that $400 lower than the private sector providers over the next decade we will end up with an and can, for example, due to buying powers, inferior hearing service because, like many achieve discounts of more than 33 per cent on industries and professions in Tasmania, the batteries. Australian Hearing Services also, gains to be made from adopting the Hilmer through a joint venture, produces hearing aids, competition reforms are unknown at this stage creating highly skilled jobs and $200 million in my home state. in foreign investment with the resultant sales We hear a lot about the fact that those in and exports of high quality hearing aids and the affected age group who will lose eligibili- devices. ty for full services will be able to take advan- Unfortunately, it is more likely that the tage of the extension of the hearing aid Burnie Hearing Centre, which has provided so maintenance service support package for a P3610 SENATE Monday, 26 May 1997 period of up to five years. For a young relation to the eligibility for hearing aids for hearing impaired person, there will not be those young Australians between the ages of much solace gained from knowing that he or 18 and 21. I have to say very strongly that it she may be eligible for maintenance when the was not an amendment that was won with body of a hearing aid falls on the floor and great ease, for it was a debate that went on at breaks or where electronic components fail. length within the Senate community affairs There will be no regular supply of batteries committee. In fact, the major focus of the and this would impose a cost of upwards of dissenting report of both the opposition and $150 per annum. There will also be a cut-off the Democrats was the particular callousness of the Commonwealth seniors health card of taking away the entitlement for that par- holders from access to Australian Hearing ticular age group. I suppose I should be Services. grateful that the government has seen sense I understand that there are presently 15 and has agreed to reinstate that entitlement. clients of the Australian Hearing Services on But in my view it does not entirely correct the the north-west coast of Tasmania who are measures that are contained in these bills. I Commonwealth seniors health card holders. would like to spend a little time in talking Obviously there are many more in the rest of about those issues. Tasmania. There is no doubt that the number Just before I do that, I would like to go will increase with the ageing of the popula- back to the fundamental issue before us and tion. whether this government is really, honestly As stated in the Labor members’ dissenting putting forward its program as it promised in committee report on this measure, the govern- the election. I might remind you of something ment is also being mean spirited when those that John Howard, the Prime Minister, said in to be affected will largely be self-funded his third headland speech to the Australian retirees who may be asset rich but are income Council of Social Service. He promised to poor. I thought this government was going to ‘maintain all current Commonwealth look after self-funded retirees but, alas, it concessions’. In my view, to take away the would appear that if you have a hearing entitlement to hearing aids of those senior problem you will have to pay in future or go health cardholders is in complete contradic- without. Realistically, most will not be able tion to and shows complete disregard for this to afford the cost. promise. Senator NEAL (New South Wales) (8.58 I know that we have had a lot of debate p.m.)—I feel that it is important to rise to about core promises and non-core promises, speak on the Hearing Services Administration but I think it is very difficult to say that this Bill. Although I no longer have the conduct particular promise of maintaining current of this area, I certainly feel that it is a matter Commonwealth concessions would have been of sufficient importance that some time should seen by the vast majority of Australians—and, be spent on speaking on it this evening. in particular, the vast majority of Australians When the changes were first put forward in who had the benefit of those Commonwealth relation to the Commonwealth dental health concessions—as anything but a core promise. services I thought I had seen some of the I think there are many members of the com- most callous budget cutting that I had ever munity who would see it as a betrayal; that seen and probably would ever see. But I have now that this government has control of to say that, during the hearing of the Senate policy and control of our budget it sneaks community affairs committee, the budget cuts around behind people’s backs and takes away disclosed in these particular pieces of legisla- an entitlement that people rely on to maintain tion surpassed even the callous indifference of a reasonable lifestyle. those cuts to the Commonwealth dental health Returning just quickly to the 18- to 21-year- program—and that is really saying something. olds, one of the matters that I think is worth I am pleased to see that there has been an focusing on, in particular, is to look at the amendment proposed by the government in budget impact of the change proposed by the Monday, 26 May 1997 SENATE P3611 government and to examine the amount of people are affected by lack of hearing or their money that was at stake in relation to 18- to hearing becomes impaired. 21-year-olds. I really think it is quite shock- It is this particular group of people that this ing. In order to save the huge sum of budget change so seriously affects because $500,000, this government were prepared to they will not be provided with assistance in throw away the lives of those deaf and hear- the future. It is not a very small group of ing impaired young people between the ages people, either. In fact, the total number of of 18 and 21. I think that is really quite people that have been assisted by the Austral- horrifying. If you were looking at maybe a ian Hearing Services is 180,000. What propor- much larger sum I suppose you could under- tion of that are seniors cardholders? It is stand why the government might be tempted, almost impossible to estimate. The department but when you are looking at what I might made some attempt to but, in giving evidence describe as piddling sums for which they are to the committee, they admitted quite freely prepared to wreak damage on people, whose that it was not possible to exactly say. We do lives are extraordinarily difficult already, for know that for a lot of people it will have an that sort of money it really makes me feel ill. effect on their lifestyle and it will mean that That is the truth of it and I think the people they will not enjoy the sort of life that they who gave evidence to us in the Senate Com- expected when they retired. munity Affairs Committee felt pretty much the same way. I am certain that even though The interesting thing about the 33,000 you have reversed your decision, the betrayal Commonwealth seniors health cardholders that was contained in this bill will not be who are not obtaining this benefit is that this easily forgotten. cut, according to the budget documentation, shows no savings whatsoever. That is a fairly remarkable statement that this government, in We have remedied the situation. The the case of seniors, are prepared to go even government have seen fit to withdraw from further than they did for young people. For their proposition for the affected young young people they were prepared, for the people in Australia but they have not felt that princely sum of $500,000, to take away the they should extend this generosity to those quality of their lives. For the 33,000 people who are at the senior end of the spec- Commonwealth seniors cardholders, they are trum, those people who have a seniors health prepared to do that for nil savings. That is card and who are entitled to the benefit of a really quite an astonishing proposition. hearing aid. They have not reinstated this one. They have shown a little bit of humanity Essentially, this government should be towards the young people but they have not rethinking their entire approach in relation to seen fit to show that same humanity to the this bill. They should be stepping back from older people in our community. this callous approach. They should be step- ping back from this niggardly penny-pinching A lot of older people in the community do which, in the end, will affect only those who have a difficult time. They have, in large part, are the most vulnerable in our society and the provided substantial amounts of taxation most likely to be adversely affected. The money to the community during their working government should start to have a little bit lives. Now they have retired with maybe a more of a generous heart and a little bit more little bit of money set aside and they have regard for the promises they made when they been told that a benefit that they have relied wanted to get into power and should not so on for some time—that is, a hearing aid—will quickly disregard the people who are relying no longer be available to them because of a on them. decision of this government. The trouble with Senator ELLISON (Western Australia— elderly people is that many of them when Parliamentary Secretary to the Minister for they first left the work force may not have Health and Family Services and Parliamentary had difficulties with their hearing but, as we Secretary to the Attorney-General) (9.07 all know, as time marches on, more and more p.m.)—At the outset I would like to thank the P3612 SENATE Monday, 26 May 1997 senators from the opposition for their contri- mean a benefit for the people of Australia. bution and Senator Allison from the Demo- There will be no diminution at all in the crats for her contribution. I can confirm that provision of hearing services. There will not the government will be moving the amend- be the harsh consequences for those people ment mentioned previously, which will re- under 21 that were mentioned because, as I instate hearing services in the 18- to 21-year- said, the government will be moving that old group. I can also confirm that the govern- amendment. ment will be opposing the amendment which, It is not just the opposition who can say I understand, will be moved by Senator that they thought this amendment was import- Forshaw. I will advance the reasons for that ant because I notice that the Democrats during the committee stage. alluded to that very amendment themselves, The government is not being mean-spirited, as did the chair of the committee, Senator as Senator Neal has stated. Senator Neal fails Knowles, from the government. It was recog- to mention that, in this recent budget, the nised universally by the members of the government announced extra funding of $2 committee, by people who gave evidence and million for cochlear implants for profoundly also as a result of consultation carried out by deaf children. That was not something we the government that the amendment was went to the election with; that was something necessary. we saw a need for in the community. There I acknowledge the frankness with which are just under 400 young Australians who Senator Forshaw admitted that the previous could lead a normal life with such an implant government was no stranger to corporatisation and funding was provided for that. Senator or privatisation in any way. I refer to the Neal also does not mention the mess that we federal airports, Australian Defence Industries, found the finances of this country in when we the Commonwealth Bank, Qantas and Telstra. took power or that we had to take steps to There was a definite corporatisation spirit in make sure that the deficit, which had blown the opposition when it was in government. out to $10 billion, was addressed. Therefore, I fail to see how it can say that Let me deal specifically with the matters corporatisation here is such an evil thing, that were raised by the opposition. Senator especially when it will provide consumers Forshaw made the statement that the govern- with a choice. That entirely destroys the ment was not supporting AHS as being cost argument of the opposition. effective. The government believes that AHS The two bills that we have before us deal has done a good job in improving standards not only with the Australian Hearing Service throughout the hearing services industry. But but also with the Australian Government that does not mean that things should just stay Health Service. Senator Allison mentioned forever there. There are better ways and the that the AGHS had been given the job of government is pursuing this. screening for asbestosis in marine seamen The government will retain the same level who were involved in the last war. The of monitoring in standards as in the present AGHS won that on a full cost recovery, system. It will remove the conflict of interest competitive basis and there is no reason at all between the AHS providing a regulatory to assume that, under the new system, the service whilst also being a service provider AGHS will not be able to fulfil that function itself. What the government proposes is that in the future. It will, of course, continue with there will be an office of hearing services, that screening. which will oversee the voucher system. The These measures are innovative. They will AHS will be free to compete with the private provide competition in both the health and sector on an equal footing in relation to the hearing services. They will give the people of provision of health services. This competition Australia a choice of provider. The AHS will will improve the system and will allow retain its charter to service children, those consumers that all important free choice people who fall into special categories and, in between service providers. That can only particular, those people living in rural and Monday, 26 May 1997 SENATE P3613 remote areas such as Aboriginal and Torres Question put: Strait Islander communities. So there will be That Schedule 1, item 3 stand as printed. a safety net there. Perhaps the other aspects which are more The committee divided. [9.22 p.m.] detailed can be dealt with during the commit- tee stage. I would commend this bill to the (The Chairman—Senator S. M. West) Senate. Ayes ...... 30 Noes ...... 31 Question resolved in the affirmative. —— Bill read a second time. Majority ...... 1 —— In Committee AYES HEARING SERVICES Abetz, E. Boswell, R. L. D. Brownhill, D. G. C. Calvert, P. H.* ADMINISTRATION BILL 1997 Campbell, I. G. Eggleston, A. The bill. Ellison, C. Ferguson, A. B. Ferris, J Heffernan, W. Motion (by Senator Ellison) proposed: Herron, J. Knowles, S. C. Clause 5, page 4 (line 7), omit "18", substitute Lightfoot, P. R. Macdonald, I. "21". Macdonald, S. MacGibbon, D. J. McGauran, J. J. J. Minchin, N. H. Senator FORSHAW (New South Wales) Newman, J. M. O’Chee, W. G. (9.14 p.m.)—I am not sure that I have that Parer, W. R. Patterson, K. C. L. running sheet in front of me but, as I under- Payne, M. A. Reid, M. E. stand it, this relates to the decision by the Synon, K. M. Tambling, G. E. J. Tierney, J. Troeth, J. government not to proceed with the original Vanstone, A. E. Watson, J. O. W. proposal to reduce the age to 18. NOES Senator Ellison—That’s right. Allison, L. Bishop, M. Bolkus, N. Bourne, V. Senator FORSHAW—Thank you. As I Brown, B. Carr, K. outlined in the second reading debate, the Childs, B. K. Collins, J. M. A. opposition’s position is that we are pleased Collins, R. L. Conroy, S.* the government has done a backflip on its Cooney, B. Crowley, R. A. original proposal and has recognised the error Denman, K. J. Evans, C. V. of its ways on this matter, so we will not be Forshaw, M. G. Gibbs, B. Harradine, B. Hogg, J. opposing this amendment or indeed the Lees, M. H. Lundy, K. amendments as they relate to this issue of Mackay, S. Margetts, D. age. Of course, as I have made it clear, when McKiernan, J. P. Murphy, S. M. we come to it later in the committee stage, we Murray, A. Neal, B. J. will be opposing that aspect of the bill which O’Brien, K. W. K. Ray, R. F. relates to the removal of eligibility for seniors Stott Despoja, N. West, S. M. health care cardholders and the legislation as Woodley, J. a whole. PAIRS Amendment agreed to. Crane, W. Cook, P. F. S. Kemp, R. Faulkner, J. P. Bill, as amended, agreed to. Chapman, H. G. P. Sherry, N. Gibson, B. F. Schacht, C. C. HEARING SERVICES AND AGHS Alston, R. K. R. Foreman, D. J. REFORM BILL 1997 Hill, R. M. Reynolds, M. Coonan, H. Kernot, C. The bill. * denotes teller Senator FORSHAW (New South Wales) Question so resolved in the negative. (9.17 p.m.)—The opposition opposes schedule 1, item 3. Schedule 1, item 5 negatived. P3614 SENATE Monday, 26 May 1997

Amendments (by Senator Ellison)—by did not suggest nor indicate the necessity of leave—agreed to: medical and audiological follow up at the time of the assessment. (2) Schedule 1, item 24, page 20 (line 28), omit "Australian children", substitute "young Aus- Some months later, the woman consulted an tralians". audiologist and attended the Audiology department of a metropolitan hospital. The results of the (3) Schedule 1, item 29, page 21 (line 22), omit audiologist’s assessment showed a unilateral "Australian children", substitute "young Aus- sensorineural hearing loss. On the basis of the tralians". results, a subsequent urgent otological follow up (4) Schedule 1, item 29, page 21 (line 23), omit was initiated. The woman was found to have an "Australian children", substitute "young Aus- acoustic neuroma on her right auditory nerve. This tralians". was removed in a neurosurgical procedure in a (5) Schedule 1, item 29, page 22 (lines 29 to 31), major metropolitan neurosurgery unit. However, omit the definition of Australian children. due to the size of the tumour on the acoustic nerve, the patient had a resultant complete loss of hearing (6) Schedule 1, item 29, page 23 (after line 12), on the right side, and slight facial weakness on the after the definition of referred Commonwealth right side. employee, insert: She subsequently contacted the original non- young Australians means: audiologist tester, seeking a refund for her hearing (a) Australian citizens under 21 years of age; or aid which was now useless to her. The tester (b) Australian permanent residents under 21 refused to make a refund for the hearing aid fitted years of age. to the right ear. The tester also refused to provide details of their assessment, despite the signed Senator Allison—Mr Temporary Chairman, request of the patient. I wanted to raise a couple of questions con- cerning this legislation. I wonder if this is an The person who wrote to me on this subject appropriate time for me to do that. says that there is a real health danger here to people being tested by such non-professionals, The TEMPORARY CHAIRMAN (Sena- or at least hardly trained technicians, and that tor MacGibbon)—If you do not raise them this is likely to be exacerbated by the passing now, you will not get the chance, Senator. of this bill. I gather that this correspondence Senator ALLISON (Victoria) (9.27 p.m.)— has also been sent to the Minister for Health A number of audiologists and audiology and Family Services (Dr Wooldridge) for his organisations have raised some questions with opinion. me. One relates to hearing aid technicians I just wondered whether perhaps Senator who are known as audiometrists. The effect Ellison could give us the government’s of the Hearing Services and AGHS Reform response to this, because I am actually quite Bill is, as I understand it, to increase the concerned about this matter. If it is a matter number of opportunities for audiometrists to for this bill, and perhaps an amendment which practise and that the Office of Hearing Ser- ought to have been put forward, then perhaps vices would supervise the work by medical we need some time to think about what that practitioners in private industry. amendment should be and whether it should The concern which was raised with me was be put tonight or whether there should be a that more of these hearing aid technicians suspension of consideration of this bill until would be operating. A correspondent who there is a time to consider it more thoroughly. says that a number of errors can be made in Senator ELLISON (Western Australia— the licensing of audiologists has given me a Parliamentary Secretary to the Minister for case history showing the implications of this. Health and Family Services and Parliamentary It concerns a woman—I will read it out to the Secretary to the Attorney-General) (9.31 Senate because it is interesting—who: p.m.)—There will be no lessening of services . . . attended a non-audiologist tester in a rural by the passing of this bill. AHS and the community, who performed a hearing assessment without the use of a soundproof facility. The tester private sector use audiologists. In fact reported the presence of a unilateral sensorineural audiometrists do work in the private sector hearing loss, and subsequently recommended the and organisations which are contracted by the fitting of a hearing aid in her right ear. The tester AHS. I am not aware of the particular case Monday, 26 May 1997 SENATE P3615 you mentioned. Certainly I can undertake to this work than previously? Is it a risk or is it pursue that. But that case would indicate more not? a problem with the current system rather than Senator ELLISON (Western Australia— the one proposed by the passing of this bill. Parliamentary Secretary to the Minister for It has to be remembered that, with the Health and Family Services and Parliamentary passing of this bill, there will be an Office of Secretary to the Attorney-General) (9.34 Hearing Services, which will carry out the p.m.)—It will be the same as the current regulatory role and will not have the conflict system provides. Audiometrists would be able of interest the AHS currently has. The AHS to test just as they can at the moment. There currently is both a provider and a regulator at will be no difference. It will be the same as the same time. That would not happen in the the current system. situation were this bill to be passed, because Senator NEAL (New South Wales) (9.34 you will have the OHS overseeing this. There p.m.)—In taking evidence on the Australian will be no lessening at all of any of the Hearing Services, we received evidence that services that are being provided for. In fact I about 180,000 people are serviced by them. believe that, by having the OHS, there will be Of these, about 75 per cent are fitted with greater control. As for the particular case you hearing aids. From my rough calculations, mentioned, I can undertake to follow that up that is about 135,000 people. One of the and get back to you. major advantages of the Australian Hearing Services is that they are able to provide these Senator ALLISON (Victoria) (9.32 p.m.)— hearing services extraordinarily cheaply. I I think one of the other issues associated with suppose we see the positive side of having a that is the extra cost which would be associat- government monopoly in that sense. It ap- ed with this supervisory role of OHS. I recall pears that the cost of a hearing unit is, in during the hearing raising the questions of some cases, $400 a unit less than comparable whether the OHS would be appropriately private providers. How can we be assured or resourced in order to provide this service and, will you assure us that in fact those people given that hearing aid technicians are more who are eligible for a concessional hearing likely to be the testers in these cases, whether unit will not have to pay more? What steps or not there were adequate safeguards both in will be taken to monitor the cost? If there is terms of accreditation and in terms of re- a rise in cost, will some sort of compensation sources within OHS to deal with this issue. be provided for those people? Senator ELLISON (Western Australia— Senator ELLISON (Western Australia— Parliamentary Secretary to the Minister for Parliamentary Secretary to the Minister for Health and Family Services and Parliamentary Health and Family Services and Parliamentary Secretary to the Attorney-General) (9.33 Secretary to the Attorney-General) (9.36 p.m.)—This will be budget neutral, in effect. p.m.)—Private sector providers have told the The current regulatory role that AHS carries government that they want a level playing out will be taken over by the Office of Hear- field. They want to compete with the AHS on ing Services, OHS. So there will be no added the same level. They say that they are happy cost. The OHS will simply take up that area to compete with the Australian Hearing which the AHS will be abandoning. There Services as long as they are paid what the will be the same maintenance of standards. Australian Hearing Services gets paid—that There will be no alteration in accreditation. is, they will compete at current price levels. Senator ALLISON (Victoria) (9.34 p.m.)— So I think that answers your question. There Can you assure us that there will be not more will not be any increase in costs, because the audiometrists who will test people seeking competition will be on the same price levels hearing aids? Can you just advise us what the as at the moment. changes are in this sense? What is the likeli- I noticed that in the earlier debate Senator hood that there will be more of these techni- Gibbs, I think, said that people would have to cians—rather than audiologists—performing top up. The government has given an absolute P3616 SENATE Monday, 26 May 1997 assurance that consumers will continue to give the committee an assurance that there receive the same standard of service as they will be no increase in cost either to the do now at no charge. They can go beyond government or to the individual on a per item what is clinically needed. If they wanted to basis? get some optional extras, they can pay for Senator ELLISON (Western Australia— that; but, otherwise, there will be no extra Parliamentary Secretary to the Minister for charge at all. Health and Family Services and Parliamentary Senator NEAL (New South Wales) (9.37 Secretary to the Attorney-General) (9.40 p.m.)—I might not have made myself com- p.m.)—The tendering process is yet to be pletely clear. At the moment the Australian finalised and I cannot answer that question Hearing Services is able to get a very low until that tendering process has been an- unit cost for their hearing aids. They purchase swered. about 135,000 a year so they can go to a Senator NEAL (New South Wales) (9.40 manufacturer and get that very low cost. That p.m.)—Parliamentary secretary, if you are means that, obviously, they are applying unable to assure us that, in fact, the unit cost pressure against anybody else. My concern is, will be lower, which translates that the provi- if Australian Hearing Services is no longer sion of the hearing aids would be more providing 135,000 hearing aids, they will not efficient, what is the purpose of the second be able to buy them as cheaply. I am asking: half of the bill which corporatises the Austral- could the parliamentary secretary provide an ian Hearing Services, splits off the regulatory assurance that this corporatisation will not body and commences contracting out? Is it mean we will be paying more for our hearing merely an ideological pursuit, not really a aids? Are you prepared to give that assur- pursuit of more efficient practice at all and ance? clearly not a benefit to individuals who are Senator ELLISON (Western Australia— affected, the community at large or the Parliamentary Secretary to the Minister for government in a budgetary sense? Health and Family Services and Parliamentary Senator ELLISON (Western Australia— Secretary to the Attorney-General) (9.38 Parliamentary Secretary to the Minister for p.m.)—I can give an assurance to Senator Health and Family Services and Parliamentary Neal that individual customers will not have Secretary to the Attorney-General) (9.41 to pay more. p.m.)—The tendering process will naturally Senator NEAL (New South Wales) (9.39 force down the price that the government will p.m.)—But will you also give the assurance have to pay. The competition will force that that the government, in purchasing those price down, there is no question about that. I hearing aids, will not, in fact, be paying more just cannot give you the exact figure. It will for each individual item? The whole process be in the same ballpark figure as what is paid of corporatisation is based on the assumption at present. The tendering process will do that, that the provision of services will be more but that process has not been finalised and we efficient. That assumes, on a per item basis cannot give you a final figure. for providing the service of the hearing aid— Senator NEAL (New South Wales) (9.41 whoever it is who pays, whether it be the p.m.)—With respect, parliamentary secretary, individual or the government—that the indi- the lowest cost provider at the moment is the vidual item cost will be lower. It appears to Australian Hearing Services. They are able to me, if you are producing fewer items and provide that low cost per item because they have to pay more per item, that eventually provide about 135,000 a year. At the moment, someone, whether it be the government or the if the private sector wants to compete, they individual, will be paying more which would have to match the cost of the Australian indicate a loss of efficiency rather than an Hearing Services. If you reduce the capacity increased efficiency as a result of the corpora- of the Australian Hearing Services to provide tisation, the contracting out. Do you agree an item at that lower cost, then competition with that proposition or are you prepared to will not provide you that low level because Monday, 26 May 1997 SENATE P3617 the cost per item for the Australian Hearing So what we are doing here is creating a Services will go up and what the private level playing field but not without some cost sector has to match to compete will also go both in terms of the hearing aid units and, up. The end result, as I said, will be a higher presumably, in terms of the cost to taxpayers. cost per item. Will you assure us that the cost I remind the government of the remarks that per item will not go up and if you are not were made at that inquiry. Perhaps the parlia- prepared to assure us of this, what is the point mentary secretary would like to reconsider of the second part of this legislation? those remarks. Senator ELLISON (Western Australia— Senator ELLISON (Western Australia— Parliamentary Secretary to the Minister for Parliamentary Secretary to the Minister for Health and Family Services and Parliamentary Health and Family Services and Parliamentary Secretary to the Attorney-General) (9.43 Secretary to the Attorney-General) (9.45 p.m.)—The AHS will be competing with the p.m.)—As I said earlier, these measures are private sector. That is the whole idea of this. budget neutral. The AHS will be relieved of If the AHS provides the best price, it gets the the regulatory role that it otherwise had. That business. It is as simple as that. The private is a benefit it is getting. There will not be any sector is going to have to compete. That will added cost to the AHS so that there will be not force prices up. If they are not competi- cost increases. This is budget neutral. tive, they do not get the business. Senator ALLISON (Victoria) (9.46 p.m.)— Senator ALLISON (Victoria) (9.43 p.m.)— What are the anticipated returns to the I would like to refer to the inquiry and to the government? Has that been factored into this comments that were made on this subject by question, given that the AHS is required to Mr Cochran from the Department of Health pay the government, in the event that the and Family Services. There was quite a lot of tenders are higher than its current unit price— discussion about how this tendering process which seems very likely. What happens to would work. As I understand it, Mr Cochran that money? Does it go into general revenue was asked about the tendering process and or does it go to pay for the OHS? And how what that would mean in terms of achieving much would it be? What is the government’s a level playing field. I asked the question, expectation? ‘Was it the aim to bring the tenders down to Senator ELLISON (Western Australia— the same level as the Australian Hearing Parliamentary Secretary to the Minister for Services pays for their services?’ As Senator Health and Family Services and Parliamentary Neal rightly points out, they have the advan- Secretary to the Attorney-General) (9.46 tage of economies of scale and their unit price p.m.)—I cannot speculate on what differ- is much lower than the private sector can ence—if any—there will be in these prices, manage. because the tendering process is yet to be The answer that Mr Cockran gave was that finalised. That cannot be answered at this there will be extra cost involved for AHS in stage. Suffice to say, if AHS provides the putting it on that level playing field in that cheapest service, it gets the business. they will pay a dividend to the government Senator FORSHAW (New South Wales) that reflects the cost of taxes, and so forth, (9.47 p.m.)—Parliamentary Secretary, you that would be incurred in the private sector. made a statement in your closing remarks in In other words, when the tenders are com- the second reading debate—and it is also pleted—that is a government based tender contained in the explanatory memorandum— process, as I understand it, to which the that Australian Hearing Services will continue private sector tenderers can access hearing to operate as the provider for children and aids at a unit price—if that unit price is certain other groups. You mentioned, for higher than that which is achievable by the instance, Aboriginal and Torres Strait Islander government, then the government services, people. I would like to ask you what the AHS, is required to refund the government by rationale behind that decision is, given all the the difference. other arguments you have put forward about P3618 SENATE Monday, 26 May 1997 the need to open up the provision of hearing myself rising in the chamber to talk about the aids to competition from the private sector? situation the people of Canberra find them- How is it that, on the one hand, you can selves in. As a result of the last budget, more argue that in respect of some groups who job losses are expected in the ACT. These would at the moment be clients of AHS but, will not be just public sector job losses. There on the other hand, you still recognise a will be flow-on job losses in the private continuing role for AHS in these areas? sector. Senator ELLISON (Western Australia— There is another city in Australia that has Parliamentary Secretary to the Minister for been subjected to a decision resulting in about Health and Family Services and Parliamentary 2,000 job losses. That decision was made not Secretary to the Attorney-General) (9.48 by a government but by a large private p.m.)—I think it is fair to say that the private corporation. It decided, basically, to wind up sector is not yet at the stage where it could a significant proportion of its operations. This accommodate the special and complex needs event has captured the heart of the nation. of children and of Aboriginal and Torres There is a sense of abhorrence that a company Strait Islander people—especially the latter can shut up shop, move out and leave a group, as they are in remote areas. Therefore, community devastated. As a result of this, it was recognised that the Australian Hearing there has been a political response—and quite Services could provide a competent service rightly too. for this sector of the community and it would be unwise to rush headlong into totally The political response to commit $10 freeing up the provision of services to the million in an assistance package to the people whole spectrum of the community. It was of Newcastle is well founded. It probably will thought wise to retain this safety net and to not be enough to secure their futures, but it monitor how things go. I notice that the will go a long way in assisting the community Democrats mentioned in their part of the in the struggles that they face. The total Senate committee report that they wanted package now for Newcastle is $12.25 million, some monitoring to take place, and the thanks to an extra $2.25 million for employ- government will be monitoring the operation ment programs in the Hunter region. Senator of this system. Vanstone concluded that 2,000 job losses in Senator ALLISON (Victoria) (9.49 p.m.)— Newcastle required $2.25 million for employ- I have a question about the new tendering ment programs. My point this evening is that, process and the way in which this is designed with respect to Canberra, we are anticipating to bring other players into the service and 7,000 job losses and, if you apply Senator about the current hearing aid manufacturers, Vanstone’s own calculations, that would mean in particular. I think Crystal Aid is the name that we could have at least $5 million here for of the organisation, and there is another employment programs to help us through the associated company which deals with the difficult employment transition. marketing of this product overseas—quite successfully, I understand. The similarities between Newcastle and Progress reported. Canberra are there. They are both Labor areas; they are both one-industry towns. ADJOURNMENT Unfortunately, or perhaps fortunately—it The DEPUTY PRESIDENT—Order! It depends on your perspective—Canberra’s one being 9.50 p.m., I propose the question: industry or dominant industry is the Public Service. It does not attract quite the response That the Senate do now adjourn. in the Australian community that the blue- Job Losses in Canberra collar steel industry does. That is not only a shame for the people of Canberra but also a ACT Brumbies reflection on the job that this government has Senator LUNDY (Australian Capital done on the role that the public sector plays Territory) (9.50 p.m.)—Once again I find in the Australian community. Monday, 26 May 1997 SENATE P3619

There is no doubt that, under the Howard Ms Wendy Hamilton, the Chairwoman of Liberal government, we have seen continued the Canberra Business Council outsourcing attacks against the public sector—and not just task force, in an article in today’s Canberra in a dry drive for economic efficiencies and Times, is reported as saying: cost cutting and savings; we have seen an Outsourcing is not a be-all, or end-all, for Canberra attack on a philosophical basis. We have seen business. a move to a market economy where the She is then reported as saying: private sector takes over the service provision There will be a big surge initially of outsourcing role formerly held by government. for basic services [corporate service and public It is a bitter pill to swallow that we cannot relations] then there will be a long period of navel- blame a big private company that is motivated gazing by companies as they strive to become more efficient and they might just choose to down-size by profit maximisation. We are actually being rather than outsource. abandoned by the government itself, the government that we all pay our taxes to. They So there is no certainty for small business in are the ones pulling out of town; they are the any respect. The article reports Ms Hamilton ones cutting the jobs. And there is no hint of as saying that it was a ‘matter of concern’ to a package to help the Canberra economy see federal government departments now through this transition. In fact, there was not contemplating ‘piggybacking’ on some of the even an offer to the government of the ACT few contracts that have actually been let out. to waive some of the contribution to the So the promise that local companies, local deficit reduction program in an effort to offset private sector businesses would actually have the damage that is being done through the the opportunity to expand and grow under this cuts to the public sector. plan is a fallacy. Piggybacking contracts cut out local businesses. We have seen by experi- I know the cuts to the public sector affect ence that the opportunity that these businesses many regional communities in Australia, and will have to quote and tender as part of these Canberra is not the only one, but I draw these major contracts is limited and it is not being comparisons on the basis of the magnitude addressed by the government. and the concentration of the cuts here. I am I would like to finish on a more positive of the view that this needs to be seen in the note. The Canberra community had a rare same context as any other regional communi- opportunity to collectively smile last weekend, ty. I congratulate the respective governments and I am referring, of course, to the magnifi- for acknowledging the situation in Newcastle cent win by the Brumbies, the ACT Rugby and for taking some remedial action to limit Union team— the damage, but I ask that the same courte- sies, the same acknowledgment be applied to Senator Vanstone—You shameless Canberra. parochialists. One of the groups that is particularly Senator LUNDY—Absolutely. The ACT affected by this is the private sector; it is not Brumbies’ contribution to the Super 12 Series just the public sector. The people of Canberra is something that you, I am sure, would are sick of hearing the simplistic mantra by appreciate, had you seen them play. The both the federal Liberal government and the achievements of this team have really cap- ACT Liberal government that states there is tured the imagination of Canberra and the sur- a transition of jobs from the public to the rounding region, leading with a sensational private sector as a result of the changes that style of rugby that has not been seen for a they are implementing. That is not the case. while. They are off to face Auckland next It has been shown that the private sector Saturday. suffers inordinately whenever there is a cut in On behalf of everybody here, I want to public sector jobs and that outsourcing or a wish them luck. It is likely to be a very tough transfer of those jobs from the public to the game. Regardless of the outcome, I want to private sector is not the solution it has been thank the Brumbies for giving us a lift. painted as being by the Liberal governments. Congratulations on your achievements. All P3620 SENATE Monday, 26 May 1997 those who made the season possible—the Privacy Act 1988 would not extend to the fans, the conditioning coaches, the ACT private sector. The Prime Minister said: board, partners, the officials and the lot— deserve recognition for something that has The Commonwealth opposes such proposals which will further increase compliance costs for all made us all feel pretty good at a pretty low Australian businesses, large and small. moment in our lives. That was it—the end of Australia’s interna- Protection of Privacy tional best practice privacy scheme, and, I Senator STOTT DESPOJA (South Aus- should add, another election promise broken. tralia) (10.00 p.m.)—Shameless parochialism! Maybe Minister Vanstone and I should The Prime Minister’s decision was yet mention that the Crows—three in a row—are another example of the Attorney-General doing quite well. I rise tonight to discuss— being rolled, and it reinforces the belief that legal milestones are not important enough to Senator Vanstone—I’m a Port Power this government when measured against the person myself. special interests of a few. The reasons for this Senator STOTT DESPOJA—Hey, decision, and the relevant information the Minister, I am the first to acknowledge the Prime Minister relied on in making this win over the Crows by Port Power. I tipped decision, must be made available. I call on 15 points, and it was 12 points—pretty close. the government to do so. A decision of this But that does not have a lot to do with priva- importance cannot be passed off without some cy laws, which is the reason I am speaking explanation. tonight. I would like to set out some of my concerns Privacy protection needs to extend to the which I believe require a response from the collection, storage, security, access, correc- government and which really go to the core tion, use, destruction and disclosure of all of the Prime Minister’s decision. His only personal information. I believe that the pres- expressed reason, so far as I am aware, is ent legislative scheme that is outlined in the compliance costs. There is a considerable Privacy Act 1988 addresses the collection, number of other issues that he should have storage, use and disclosure of personal infor- addressed. mation held by the government. This scheme also extends to credit reporting and some Recently a Price Waterhouse survey of 120 telecommunications suppliers and operators. large businesses found that two-thirds favour This scheme does not, however, extend to the the introduction of a comprehensive system of private sector. national privacy laws. Obviously these busi- A discussion paper was released by the nesses did not think compliance costs were a Attorney-General (Mr Williams) on 12 Sep- particular problem. If compliance costs are a tember last year which set out a scheme based problem for some businesses, we need to see on the existing information privacy principles the data or cost projections the Prime Minister in the Privacy Act 1988 and added to this considered in order to make an assessment as codes of practice and a range of additional to whether these compliance costs are rel- provisions which addressed the particular evant. concerns of the private sector. In essence, this The cost of compliance may be an issue for was a proposal for industry codes of practice some business, but it also may be a cost supervised by the Privacy Commissioner and associated with good business. The cost of subject to statutory backing—a co-regulatory compliance may also be offset against the approach. This scheme is consistent with the improved management of personal informa- schemes adopted by New Zealand, Hong tion. What the Prime Minister must consider Kong and, of course, the European Union. is that, in these changing times, personal However, on 21 March this year, the Prime information now has a value the extent of Minister (Mr Howard) announced that the which I do not believe it has ever had before. Monday, 26 May 1997 SENATE P3621

For example, in today’s Financial Review introduce privacy schemes, businesses will be a story entitled ‘Banks tapping into heavy required to comply with those requirements, number-crunching’ states: which may end up being different for each In the retail trade . . . computers have matched state and territory, therefore increasing overall things like age, sex and credit card spending habits compliance costs significantly. and discovered that on Friday nights, an extraordi- nary number of 30-year-old men develop an So the reassurances of the Prime Minister apparently compelling desire for two oddly juxta- and the Attorney-General are hollow in light posed items. They stop into the supermarket on the of the state and territory responses and high- way home from work and pick up nappies and light the need for a national and consistent beer. That’s led to rapid rearrangement of shelves. privacy scheme. This issue also suggests that This story shows the way in which personal the compliance costs argument may not have information in the form of age, sex and credit been fully considered. card spending habits have been applied for I think it is a fundamental principle that a commercial purposes. This is personal infor- person has a right to know what personal mation, and this personal information has information is held about them and, if the some commercial value. Consumers should be information is lawfully held, that the informa- able to know that their personal information tion is correct. Article 17 of the International is in fact adequately protected. I do not think Covenant on Civil and Political Rights pro- this is an unreasonable trade-off for compli- vides that no-one shall be subject to arbitrary ance costs, and I do not think it should be and unlawful interference with his or her overlooked by government. privacy. Privacy is a human rights issue, and The European Union privacy directive, the government should deal with this issue which comes into force on 1 July 1998, will appropriately by introducing suitable legisla- prevent trade with Australia—and any other tive schemes to comply with Australia’s country, for that matter—if there are not international obligations. adequate privacy laws to protect personal information. The absence of privacy laws is Last week, the Attorney-General said that unlikely to satisfy this trade requirement. businesses had a commercial incentive to protect privacy. In fact, in response to a Last week the Attorney-General actually question from me in this place, Minister suggested that the European Union did not Vanstone said the week before that some require identical protection or equivalent businesses have already taken steps to intro- protection. That is true. As I have said, no duce good privacy practices. protection at all is unlikely to be an adequate level of protection. This issue is further high- Self-regulation has many beneficial aspects, lighted by legislation like the Trans-Tasman but it should not be relied upon as the only Mutual Recognition Bill 1996, presently means of regulation. Certainly, the Australian before the Senate. This legislation includes Democrats support a strong and enforceable specific provisions about privacy. If the privacy scheme which helps to assure con- Attorney-General’s conclusions are correct, sumers that their personal information is being why are these sorts of provisions necessary in adequately protected. Self-regulation falls legislation? Surely commercial incentive, as down because it does not have the supporting he suggests, would be sufficient. But clearly mechanisms for investigation and enforce- this is not correct, and the government must ment. address this important issue of trade. It should be noted that developing a scheme If the Commonwealth does not introduce to address the diverse requirements of protect- such laws, New South Wales has indicated ing privacy is complex and will require that it will introduce a scheme. Victoria, extensive consultation and consideration. I Tasmania, Queensland, the ACT, South have set out a few of these matters here and Australia and the Northern Territory are also place on the record my particular concern, as presently examining privacy legislation well as that of my party, that a range of other options. If state and territory governments do matters need to be addressed. P3622 SENATE Monday, 26 May 1997

The government’s backflip from its election be elected successfully last Saturday as the commitment—because it did make a promise new representative for that state seat. that it would extend privacy laws to the The unfortunate aspect of Linda’s election private sector—is an unfortunate decision. I to the state parliament is that the media have would encourage the government to take steps portrayed her as being the wife of the former to reconsider its decision and consult a little Attorney-General. This, through no fault of more widely so that it does not rely on the Linda or her husband, has been designed to interests of a few to the exclusion of an take away from the personal ability, capability international best practice privacy scheme and and integrity of Linda herself. It has also been the potential to develop and lead the informa- designed to sell more newspapers and to tion businesses of the future. provide a bit of a beef up as far as the media Kurwongbah By-Election are concerned. So I rise to acknowledge the credentials of Brisbane Strikers Linda Lavarch in her own right as the suc- Senator HOGG (Queensland) (10.09 cessful candidate who achieved a five per cent p.m.)—I rise this evening to talk on the issue swing in that by-election and the successful of the by-election which occurred in the state candidate who did not campaign as the wife seat of Kurwongbah on Saturday last. The by- of the former A-G but who has been por- election was necessitated by the resignation of trayed by certain sections of the media in that Margaret Woodgate. Margaret was a former way. I think that has done a great disservice minister in the Labor government and had to those people who reported in that particular served the electorate extremely well over a way on such a fine person. long period of time but had to resign due to Undoubtedly though, there are other lessons ill health. Then followed a preselection in that particular by-election which people process within the Labor Party whereby we, should take note of. Whilst I will not go into through the rank and file, selected the candi- these in any depth this evening, I will just date, Linda Lavarch. make a passing reference to one of the head- Senator Ian Macdonald—Was anyone lines in today’s Courier-Mail which warned charged over that like they were in Towns- ‘Blitz signals poll warning’. That refers to the ville? advances that were made by an Independent Senator HOGG—No, those sorts of things candidate who, to all intents and purposes, do not happen. Anyway, you are getting off looked like a candidate from the One Nation the point of my rising this evening. Linda was Party but was not endorsed by that party. selected on her own merits. Linda was a What we saw emerging in this particular by- person who had a long experience in the election was the Hanson effect for probably community. She had lived there for the last the first major time in any poll. 20 years. Linda had been heavily involved in This of itself is concerning, particularly community groups. Linda acted as a volunteer when one considers that the coalition received solicitor at the Petrie Community Legal one out of four first preference votes and the Centre. Linda’s children went to local Labor Party received one out of two. So there schools. is undoubtedly a lesson there for the coali- Linda herself has achieved admission as a tion—they failed to quell the march of Ms solicitor and is also currently completing a Hanson early in the piece and she is going to Bachelor of Social Science degree majoring be a force to be reckoned with in the future. in psychology. Linda was also the President But the coalition in Queensland took no of the Australian Community Safety and notice of the result on Saturday, and I think Research Organisation, a group which formu- they did so at their own peril. The Age of lates community responses for crime preven- today in Melbourne carried a headline tion. So in her own right, she was well and ‘Borbidge unfazed by swing in poll’. How- truly credentialled to stand as the candidate ever, no-one can shy away from the fact that for the seat of Kurwongbah and, moreover, to there was at least a five per cent primary vote Monday, 26 May 1997 SENATE P3623 swing to the Labor Party and something in the CJC’s handling of what is also known as ‘the order of an eight per cent swing two-party Lindeberg allegations’ is to come under preferred. This was achieved by an excellent scrutiny in Queensland again by the candidate who ran an excellent campaign and Connolly-Ryan judicial review into the effec- did so on her own merits, not on the merits of tiveness of the CJC in the near future. An- her husband. other announcement which is long awaited That is the significant thing about Linda and rather overdue is an announcement by the Lavarch. She is her own person—a capable Borbidge government concerning the estab- person—and will prove to be a very compe- lishment of a separate commission of inquiry tent member for the state seat of Kurwongbah to investigate this very serious affair in in Queensland. I suppose it is worthwhile accordance with the recommendation of the pointing out that she has a very good hus- Morris-Howard report. band, whose name is Michael. I think I should My reason for speaking tonight is to inform leave the state seat of Kurwongbah there. the Senate of another important development The other thing I would like to briefly which is of relevance to the federal parliament mention, seeing that it is sporting night because of the international attention that the tonight, is that the Brisbane Strikers won the shredding is now attracting. I wish to inform national soccer league before a record crowd the Senate that the shredding has now come in Brisbane yesterday over Sydney United. To to the attention of the International Council them I extend my congratulations. It was on Archives in Paris. It may be debated at an interesting—Senator Woodley might note inaugural meeting of a subcommittee on this—that the southern media wanted to electronic and other current records to be held downplay the fine achievement by the Bris- at The Hague in the Netherlands on 18 to 20 bane Strikers over the weekend. June 1997. However, that is yet to be resolved within the ICA. Senator Woodley—They’re always knock- ing Queensland. The International Council on Archives is a non-governmental organisation, acting interna- Senator HOGG—That is quite correct. To tionally, which is concerned with archives and them I extend my congratulations. their role in the conduct of public and private Queensland: Document Archiving activities, the protection of individual rights Senator WOODLEY (Queensland) (10.16 and the advancement of human knowledge p.m.)—I rise to speak tonight on a matter and culture. Founded in 1948 at a meeting which has dogged my state and been before convened by UNESCO, the ICA was formally this Senate for some years. It concerns the established at its first international congress shredding of the Heiner inquiry documents held in Paris two years later in 1950. Its ordered by the Goss government to stop their headquarters are in Paris. The ICA is a non- use in litigation after the Crown had been put governmental organisation admitted in the on notice of impending court proceedings in category of consultative and associate rela- which those records were critically relevant tions with UNESCO, category A. It cooper- and also after the Crown knew that the docu- ates with other international organisations in ments were being sought by a legally enforce- implementing projects of common interest. able access statute. The management of our public records in This matter first came under scrutiny in Australia is a measure of the how open and 1995 by the Senate Select Committee on accountable our governments are. It is a Public Interest Whistleblowing, chaired by measure of our commitment to democratic Senator Shayne Murphy and of which I was principles and the rule of law and it is a also a member. There now appears to be yardstick by which we can be judged interna- further evidence referred to the Senate by the tionally. Queensland parliamentary Criminal Justice During the course of our select committee Committee alleging that the CJC misled our deliberations, the role of the state and federal deliberations in 1995. I understand that the archivists, as represented by the CJC, was put P3624 SENATE Monday, 26 May 1997 on the public record. It was a position which Lindeberg complaint and the cavalier manner Mr Lindeberg, the man at the centre of the in which that body treated him. affair, objected to quite vigorously at the Let me conclude by saying this: it is totally time. The CJC’s 1995 declaration has been unacceptable for any Australian government subsequently roundly condemned by former to send to the international community a chief Victorian archivist and former Austral- signal that shredding public records to stop ian ICA representative Mr Chris Hurley. He their use in court proceedings or to stop did a detailed analysis in March 1996. He lawful access to them is acceptable conduct now works at the national archives in New in our public and legal administration or in Zealand. Regrettably, our Senate select com- any aspect of public life at all. It brings our mittee did not have the benefit of his exper- reputation as a nation governed by the rule of tise in 1995. law into unacceptable disrepute. The issue at stake is essentially a simple The Queensland archivist, or any archivist, one, but one of great importance. If the cannot operate above our courts and cannot Crown or the state, through its statutory be oblivious to the rights of individuals. keeper of public records, cannot be relied on While it is accepted that the Queensland to impartially and independently protect archivist may have been misled by the Goss public records from destruction when those cabinet and others about the true legal status records are known to be required for fore- of the material she approved to be shredded, shadowed court proceedings or when it is she certainly became aware shortly after the known that they are the subject of a legally shredding, and did little to protect the public enforceable access statute, the due administra- interest. tion of justice is gravely imperilled. That is essentially what the Lindeberg declaration This is a serious matter. The current states in a document I wish to table later. Queensland government appears incapable of properly resolving this matter. It is no wonder As a Democrat, I find it hard to think of that the ICA is taking an interest in this case. anything more serious than the Crown or state I seek leave to table the Lindeberg declaration deliberately shredding public records to thwart submission, dated 7 May 1997, so that hon- justice. One of Australia’s leading Queen’s ourable senators interested in this matter may Counsel, Mr Ian Callinan, described it as an read in greater detail why it has captured the unthinkable act. It is made much worse, attention of archivists throughout the world. however, when executive government uses I have given copies to the whips and there and abuses the independent and impartial may be some problem. The government said good office of a state or federal archivist to they were happy with that. achieve that objective. Archivists should be protecting records in the public interest, not Leave granted. destroying them for any desired outcome of Senate adjourned at 10.25 p.m. executive government or its agencies at the expense of individual lawful rights. It is DOCUMENTS fundamentally undemocratic and may breach Tabling criminal and administrative law in the pro- cess. The following documents were tabled by the Clerk: Archivists must be able to lawfully with- Airports Act—Regulations—Statutory Rules stand pressure from any executive government 1997 Nos 103-105 and 112-114. and its agencies when incidents like this occur Australian Bureau of Statistics Act—Proposal for in the future. Former Queensland Police the collection of information—Proposal No. 8 of Commissioner Noel Newnham, now a lecturer 1997. at Charles Sturt University in Sydney, de- Chemical Weapons (Prohibition) Act—Instru- scribed this case as ‘monumentally serious’. ment of Approval of Forms, dated 28 April 1997. He courageously, and quite properly, I be- Civil Aviation Act—Civil Aviation Regula- lieve, criticised the CJC’s handling of the tions—Civil Aviation Orders— Monday, 26 May 1997 SENATE P3625

Directive—Part— Proceeds of Crime Act—Regulations—Statutory 105, dated 28 April 1997 (in substitution for Rules 1997 No. 110. document previously tabled under Part 106 Public Service Act— on 6 May 1997); and 2, 5, 6[3], 7[2], 8[3], Locally Engaged Staff Determinations 1997/9- 9[4], 12[3] and 13[5] May 1997. 1997/11. 106, dated 9 and 14 May 1997. Public Service Determinations 1997/11- 107, dated 8 and 9[2] May 1997. 1997/14. Exemption—CASA 11/1997. Senior Executive Service Retirement on Statutory Rules 1997 No. 111. Benefit Determinations 1997/23 and 1997/24. Corporations Act—Regulations—Statutory Rules Remuneration Tribunal Act—Determination No. 1997 No. 102. 3 of 1997. Customs Act—Instruments of Approval Nos 1-8 Superannuation (Resolution of Complaints) of 1997. Act—Regulations—Statutory Rules 1997 No. Defence Act—Determination under section 115. 58B—Defence Determination 1997/17. Telecommunications Act— Excise Tariff Act—Excise Tariff (Fields) Guide- lines—ETFG 1/1997. Telecommunications (Due Date for Numbering Charge) Determination 1997. Extradition Act—Regulations—Statutory Rules 1997 No. 108. Telecommunications (Late Payment of Num- Federal Court of Australia Act—Regulations— bering Charge) Determination 1997. Statutory Rules 1997 No. 107. Telecommunications (Numbering Charges) Act— Judiciary Act—Regulations—Statutory Rules Telecommunications (Amount of Numbering 1997 No. 106. Charge) Determination 1997. Migration Act—Regulations—Statutory Rules Telecommunications (Exemption from Num- 1997 No. 109. bering Charge) Determination 1997. Navigation Act—Marine Orders—Order No. 2 of Veterans’ Entitlements Act—Instrument under 1997. section 90A—Instrument No. 3 of 1997. 3626 SENATE Monday, 26 May 1997

QUESTIONS ON NOTICE

The following answers to questions were circulated:

Consumer Representatives (2) What are the names and backgrounds of the consumer representatives. (Question No. 557) Senator Neal asked the Minister represent- Senator Parer—The Minister for Small ing the Minister for Small Business and Business and Consumer Affairs has provided Consumer Affairs, upon notice, on 24 April the following answer to the honourable 1997: senator’s question: (1) What are the names of the organisations to which the Minister has appointed consumer repre- (1) As at 24 April 1997, I have appointed sentatives. consumer representative to the:

Body Acronym Complaints Resolution Scheme of the Financial Planning CRS Council Association of Australia Ltd—Council General Insurance Claims Review Panel GICR Panel Insurance Enquiries and Complaints Ltd—Board IEC Board Life Insurance Complaints Service Ltd—Board LICS Board Life Insurance Complaints Service Ltd—Panel LICS Panel

I have also confirmed the appointment of consumer representatives to the:

Australasian Furnishing Research and Develop- AFRDI Board ment Institute Ltd—Exclusive Board Insurance Brokers Dispute Facility—Insurance IBDF-IBCC Brokers Compliance Council

(2) The names and backgrounds of the consumer representatives who have been appointed are:

Representative Background Body Robert Drake Consumer/community policy officer with a communi- CRS Council ty welfare sector organisation, now working for the NSW government Peter Kell Economist—works for a consumer organisation CRS Council Jon Faine Lawyer, media presenter GICR Panel Brendan Pentony Lawyer, academic GICR Panel Gregory Kirk Lawyer with an independent legal/policy centre GICR Panel Paul O’Shea Lawyer with a financial counselling service GICR Panel Geoff Crick Farmer IEC Board Adrian Evans Lawyer IEC Board Gordon Renous Coordinator/principal solicitor for a community legal LICS Board service Neil Brown Lawyer LICS Board John Berrill Lawyer in private practice LICS Board Monday, 26 May 1997 SENATE 3627

The names and backgrounds of the consumer representatives whose appointments have been confirmed are:

Ian Scott Research/policy manager with a non government AFRDI Board organisation directed at reducing injury children Kate Hamond Self employed community consultant IBDF-IBCC

Energy Research and Development (5) Total grant and allocation for each year of the Corporation Grants project. (Question No. 558) Senator Parer—The answer to the honour- Senator Brown asked the Minister for able senator’s question is attached and has Resources and Energy, upon notice, on 24 been provided by the Energy Research and April 1997: Development Corporation (ERDC) on a With reference to each Energy Research and project-by-project basis for 1993-94, 1994-95, Development Corporation grant made in the 1993- 1995-96 and 1996-97 financial years. The 94, 1994-95, 1995-96 and 1996-97 financial years, projects have been classified by project can the following information be provided: keyword according to whether they related to (1) Project name and brief description, in particu- renewable energy (REN), energy efficiency lar whether it relates to renewable energy, energy (EFF) or non-conventional energy sources efficiency or non-conventional energy sources. (NCE). (2) Researcher and institution. The ERDC has advised that its database currently (3) Date of approval and date on which contracts does not contain information on date approved and were signed. date contract signed for a number of projects, and (4) Duration of project and starting and finishing a manual search of files to capture the data was not dates. possible within the time and resource constraints.

Financial Year: 93/94 Project Title: Possible Participation in IEA Task 20—Solar Energy Retrofit Project Keywords: REN Contractor: Energy Research and Development Corporation ERDC Commitment: $6,776 ERDC Commitment allocated: 1993/1994 $6,776.00 Total Project Cost: $6,776 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/06/93 Project Completion Date: 31/12/93 Duration of Project: 7 Months Project Description: Funding for an Australian expert to ev- aluate benefit to Australia of joining the IEA Solar Heating and Cooling Task. Financial Year: 93/94 Project Title: Demonstration of an Energy-Efficient New Commercial Building—Stage One Project Keywords: EFF Contractor: Taylor Oppenheim Architects Pty Ltd ERDC Commitment: $1,000,000 3628 SENATE Monday, 26 May 1997

ERDC Commitment allocated: 1993/1994 $-51,204.15 1994/1995 $965.70 1995/1996 $1,050,238.45 Total Project Cost: $3,801,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 18/08/93 Project Completion Date: 01/09/95 Duration of Project: 25 Months Project Description: This project explored the use and pro- motion of advanced energy efficent de- sign principles in a potential small ofice redevelopment in Canberra. Financial Year: 93/94 Project Title: Greenpower Scoping Study Project Keywords: REN EFF Contractor: Eastern Energy Services ERDC Commitment: $14,000 ERDC Commitment allocated: 1993/1994 $14,000 Total Project Cost: $14,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/09/93 Project Completion Date: 20/12/93 Duration of Project: 4 Months Project Description: This study researched possible con- cepts for sourcing a premium for elec- tricity generated from renewable sour- ces. Financial Year: 93/94 Project Title: Eco Redesign Appliances Project Keywords: EFF Contractor: Kambrook Distributing Pty Ltd ERDC Commitment: $300,000

ERDC Commitment allocated: 1993/1994 $199,350.00 1994/1995 $100,650.00 Total Project Cost: $2,082,950 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 15/10/93 Project Completion Date: 01/05/95 Duration of Project: 19 Months Project Description: The EcoDesign program was aimed at protecting the environment through de- sign. This project developed and re- fined a kettle which saves energy through eliminating unnecessary reboils. Monday, 26 May 1997 SENATE 3629

Financial Year: 93/94 Project Title: ANZSES Conference 1994 Project Keywords: EFF REN Contractor: ANZSES ERDC Commitment: $10,000 ERDC Commitment allocated: 1992/1993 $10,000.00 Total Project Cost: $10,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 19/10/93 Project Completion Date: 31/01/94 Duration of Project: 3 Months Project Description: Sponsorship of annual Australian and New Zealand Solar Energy Society Conference Financial Year: 93/94 Project Title: Development Facility for an In-Situ Measurement of Thermal Insulating Materials Project Keywords: EFF Contractor: FARIMA ERDC Commitment: $90,000 ERDC Commitment allocated: 1993/1994 $48,500.00 1994/1995 $21,500.00 1995/1996 $20,000.00 Total Project Cost: $281,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/11/93 Project Completion Date: 30/08/97 Duration of Project: 28 Months Project Description: The project aimed to develop a testing facility in Sydney for the resting of insulation products so that different types of insulation could be tested and rated against each other. Given to dis- pute between contractor and subcon- tractor, this project was terminated early by the contractor. Financial Year: 93/94 Project Title: Heat Transport Through Evacuated Glazing Project Keywords: EFF Contractor: University of Sydney ERDC Commitment: $192,800 ERDC Commitment allocated: 1993/1994 $34,250.00 1994/1995 $52,450.00 1995/1996 $37,000.00 1996/1997 $42,000.00 1997/1998 $27,100.00 3630 SENATE Monday, 26 May 1997

Total Project Cost: $399,400 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/12/93 Anticipated Project Completion Date: 31/12/97 Duration of Project: 49 Months Project Description: Evacuated glazing has the potential to reduce energy consumption in build- ings by around 30%. This is a new technology and this project aimed to understand the heat transport aspect of the window. Financial Year: 93/94 Project Title: Eco Redesign Project Project Keywords: EFF Contractor: Kambrook Distributing Pty Ltd ERDC Commitment: $900,000 ERDC Recommitment: $796,000 ERDC Commitment allocated: 1993/1994 $104,000.00 Total Project Cost: $3,939,200 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/07/94 Recommitment Date: 07/12/95 Duration of Project: 17 Months Project Description: This project builds on the RMIT Cen- tre for Design’s EcoReDesign( Pro- gram and assist Kambrook to identify and take through to commercialisation two products suitable for redesign in an energy-efficient and environmentally suitable way. This project was terminated early due to a change in corporate policy at Kambrook. Financial Year: 93/94 Project Title: Fundamental Study of the Behaviour of Fine Particles in a Packed Bed (David Pinson) Project Keywords: EFF Contractor: University of New South Wales ERDC Commitment: $65,000 ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $21,000.00 1996/1997 $10,500.00 Total Project Cost: $65,000 Date Approved: 15/04/94 Date Contract Signed: 00/00/00 Commencement Date: 15/06/94 Project Completion Date: 15/06/97 Monday, 26 May 1997 SENATE 3631

Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Angular Selective Window Coatings Based on Metal/Insular Composites Project Keywords: EFF Contractor: University of Technology—Sydney ERDC Commitment: $65,000 ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $21,000.00 1996/1997 $10,500.00 Total Project Cost: $65,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 10/01/94 Project Completion Date: 10/01/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Energy Efficiency Improvements to Electric Railway Locomotives using Retro-fit PWM Rectifier Technology (Frank Flinders) Project Keywords: EFF Contractor: Central Queensland University ERDC Commitment: $65,000 ERDC Commitment allocated: 1994/1995 $23,000.00 1995/1996 $21,000.00 1996/1997 $21,000.00 Total Project Cost: $65,000 Date Approved: 15/04/94 Date Contract Signed: 00/00/00 Commencement Date: 01/07/94 Project Completion Date: 01/07/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Algorithms for Battery Storage Plants when Connected to a Utility Grid in Power and Industrial Networks (Gunilla Burrowes) Project Keywords: EFF Contractor: Victorian University Of Technology ERDC Commitment: $65,000 ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $21,000.00 1997/1998 $10,500.00 Total Project Cost: $65,000 3632 SENATE Monday, 26 May 1997

Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 07/03/940 Anticipated Project Completion Date: 07/3/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Novel Thermal Insulation Materials (Chris Dey) Project Keywords: EFF Contractor: University of Sydney ERDC Commitment: $65,000 ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $21,000.00 1996/1997 $10,500.00 Total Project Cost: $65,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Project Completion Date: 01/01/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Design, Development & Testing of a Novelly Driven High Pressure Micro- compressor for Direct Injection Gas Engines (Frank Bruno) Project Keywords: EFF Contractor: The University of South Australia ERDC Commitment: $65,000 ERDC Recommitment: $12,687.81 ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $18,812.19 Total Project Cost: $65,000 Date Approved: 15/04/94 Date Contract Signed: 00/00/00 Commencement Date: 01/03/94 Project Completion Date: 01/03/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Development of New Algorithms for Economic Dispatch and Generation Scheduling Problems in Power Sys- tems (Suzannah, Yin Wa Wong) Project Keywords: EFF Contractor: University Of Western Australia ERDC Commitment: $65,000 Monday, 26 May 1997 SENATE 3633

ERDC Commitment allocated: 1993/1994 $13,000.00 1994/1995 $20,500.00 1995/1996 $21,000.00 1996/1997 $10,500.00 Total Project Cost: $65,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Project Completion Date: 01/01/97 Duration of Project: 36 Months Project Description: ERDC Postgraduate Awardee Financial Year: 93/94 Project Title: Photovoltaic/Trough System Feasibility Study Project Keywords: REN Contractor: Australian National University ERDC Commitment: $4,800 ERDC Commitment allocated: 1993/1994 $4,800.00 Total Project Cost: $9,600 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 05/01/94 Project Completion Date: 30/3/94 Duration of Project: 3 Months Project Description: This project discusses the technical is- sues and economic benefits of para- bolic trough concentrator photovoltaic systems. It also discusses the potential market for this technology. Financial Year: 93/94 Project Title: Study on Photovoltaics in Australia Project Keywords: EFF REN Contractor: McLennan Magasanik Associates Pty Ltd ERDC Commitment: $75,000 ERDC Commitment allocated: 1993/1994 $16,741.12 1994/1995 $42,168.68 1995/1996 $9,023.33 1996/1997 $7,066.87 Total Project Cost: $196,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 15/03/94 Anticipated Project Completion Date: 31/07/97 Duration of Project: 6 Months Project Description: Study aims to identify where future reliable photovoltaic markets may de- velop and to suggest practical ways to penetrate any barriers to those markets. 3634 SENATE Monday, 26 May 1997

Financial Year: 93/94 Project Title: Hot Dry Rock (HDR) Feasibility Study—Phase 1 Project Keywords: NCE Contractor: Australian Geological Survey Organi- sation ERDC Commitment: $43,500 ERDC Commitment allocated: 1993/1994 $29,500.00 1994/1995 $14,000.00 Total Project Cost: $90,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 17/01/94 Project Completion Date: 02/09/94 Duration of Project: 8 Months Project Description: An assessment of Australia’s hot dry rock (HDR) geothermal energy re- source, and the technical and economic factors involved in HDR energy devel- opment. Financial Year: 93/94 Project Title: IEA Daylighting Workshop Project Keywords: EFF REN Contractor: Energy Research and Development Corporation ERDC Commitment: $25,000 ERDC Commitment allocated: 1993/1994 $25,000.00 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Project Completion Date: 30/04/94 Duration of Project: 4 Months Project Description: ERDC sponsorship of an International Workshop on Daylighting in Buildings. Financial Year: 93/94 Project Title: High Efficiency Solar Water Pumping Development and Systems—Product Range Field Testing Pro- gram Project Keywords: EFF REN Contractor: Suntron Power Products Pty Ltd ERDC Commitment: $98,680 ERDC Commitment allocated: 1993/1994 $41,548.00 1994/1995 $57,132.00 Total Project Cost: $224,180 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 31/03/94 Project Completion Date: 30/06/95 Duration of Project: 15 Months Monday, 26 May 1997 SENATE 3635

Project Description: This project confirmed the attractive- ness of the coupling of very high effi- ciency, brushless DC motors to stan- dard pump elements for use in solar water pumping systems. Financial Year: 93/94 Project Title: Development of Commercial Energy Efficient Export Hay Production Sys- tems Project Keywords: REN Contractor: Budikon Australia ERDC Commitment: $293,890 ERDC Recommitment: $9,890 ERDC Commitment allocated: 1993/1994 $64,000.00 1994/1995 $140,000.00 1995/1996 $80,000.00 Total Project Cost: $3,203,570 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/05/94 Project Completion Date: 12/04/97 Duration of Project: 38 Months Project Description: Project aimed to develop a commercial-sized energy efficient, hay production system that uses at least 30 per solar contribution to its energy needs. This project was terminated and funds were recommitted. A new pro- ject was subsequently established with another party. Financial Year: 93/94 Project Title: Gas heat pump and absorption chill- er/heater commercialisation Project Keywords: EFF Contractor: Gas and Fuel Corporation of Victoria ERDC Commitment: $298,000 ERDC Commitment allocated: 1993/1994 $26,000.00 1994/1995 $79,000.00 1996/1997 $154,378.51 1997/1998 $38,621.49 Total Project Cost: $734,000 Date Approved: 14/06/94 Date Contract Signed: 00/00/00 Commencement Date: 01/04/94 Anticipated Project Completion Date: 30/04/98 Duration of Project: 50 Months Project Description: The overall objective is the commer- cialisation of gas fired heat pump and absorption chiller/heater systems in Australia. 3636 SENATE Monday, 26 May 1997

Financial Year: 93/94 Project Title: Motorised Utility Logging Equipment Project Project Keywords: EFF Contractor: ORAD Pty Ltd ERDC Commitment: $260,000 ERDC Commitment allocated: 1994/1995 $87,000.00 1995/1996 $114,000.00 1996/1997 $59,000.00 Total Project Cost: $570,000 Date Approved: 10/12/93 Date Contract Signed: 17/10/94 Commencement Date: 01/10/94 Project Completion Date: 18/02/97 Duration of Project: 29 Months Project Description: The development of a new wireline traction device designed to help reduce operating costs and increase the effi- ciency of oil and gas well production in Australia. Financial Year: 93/94 Project Title: Australian Participation in IEA Solar Power and Chemical Energy Systems Program Project Keywords: REN Contractor: Energy Research and Development Corporation ERDC Commitment: $100,000 ERDC Commitment allocated: 1993/1994 $25,000 1994/1995 $25,000 1996/1997 $25,000 1997/1998 $25,000 Total Project Cost: $295,500 Date Approved: 16/05/94 Date Contract Signed: 00/00/00 Commencement Date: 16/03/94 Anticipated Project Completion Date: 31/12/97 Duration of Project: 46 Months Project Description: Program allows the sharing of tech- nical and policy information and rep- resentation at various international fora. It also provides a coordination mechanism for solar thermal research activities in Australia. Financial Year: 93/94 Project Title: Photosynthetic Greenhouse Gas Reduc- tion Project Keywords: NCE Contractor: Kaiser Engineers Pty Ltd ERDC Commitment: $60,000 ERDC Commitment allocated: 1993/1994 $60,000.00 Monday, 26 May 1997 SENATE 3637

1994/1995 $0 Total Project Cost: $150,000 Date Approved: 21/01/94 Date Contract Signed: 31/03/94 Commencement Date: 30/03/94 Project Completion Date: 30/10/95 Duration of Project: 38 Months Project Description: This project evaluates the potential to increase the uptake of carbon dioxide by enhanced photosynthetic activity in our oceans. It also presents a review of the literature and results from an engi- neering demonstration of the feasible techniques. Financial Year: 93/94 Project Title: Wool Insulation Project Keywords: EFF Contractor: Higgins Wool Company ERDC Commitment: $438,002 ERDC Commitment allocated: 1993/1994 $176,130.00 1994/1995 $261,872.00 Total Project Cost: $857,833 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 02/05/94 Project Completion Date: 01/06/95 Duration of Project: 13 Months Project Description: This report discusses the production of a natural fibre insulation possessing those attributes. It focusses on loosefill wool insulation and a commercial insu- lation product which is fire and insect resistant, and has signficant export po- tential. Financial Year: 93/94 Project Title: TiO2 Solar Cell Workshop Project Keywords: REN Contractor: Energy Research and Development Corporation ERDC Commitment: $27,500 ERDC Commitment allocated: 1994/1995 $27,500.00 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 20/04/94 Project Completion Date: 20/08/94 Duration of Project: 4 Months Project Description: Sponsorship of Titanium Dioxide Solar Cell Workshop, with visiting academic Professor Michael Graetzel, the inven- tor of the Titanium Dioxide Solar Cell 3638 SENATE Monday, 26 May 1997

Financial Year: 93/94 Project Title: Motor Vehicle Fuel Consumption In- service Versus Australian Standard Test Data Project Keywords: EFF Contractor: Department of Primary Industries and Energy ERDC Commitment: $122,875 ERDC Recommitment: $16,460.25 ERDC Commitment allocated: 1993/1994 $30,500.00 1994/1995 $21,500.00 1995/1996 $13,087.15 1996/1997 $41,327.60 Total Project Cost: $245,750 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/04/94 Project Completion Date: 30/09/96 Duration of Project: 30 Months Project Description: A study in which in-service fuel con- sumption data was obtained from fleet management information systems of large commercial fleet operators to en- able a comparison to be made with Australian Standard test data. Financial Year: 93/94 Project Title: Econodrive Inverters Project Keywords: EFF Contractor: Energy Controls Pty Ltd ERDC Commitment: $785,000 ERDC Commitment allocated: 1993/1994 $175,000.00 1994/1995 $229,000.00 1995/1996 $147,698.00 1996/1997 $210,030.00 1997/1998 $23,272.00 Total Project Cost: $1,545,000 Date Approved: 01/12/93 Date Contract Signed: 21/04/96 Commencement Date: 31/03/94 Anticipated Project Completion Date: 25/02/97 Duration of Project: 35 Months Project Description: Development of the Econodrive in- verter—a speed control mechanism for motors which provide substantial sav- ings in energy consumption. Financial Year: 93/94 Project Title: Optimisation of Solar Thermochemical Reactions Project Keywords: EFF REN Contractor: Australian National University Monday, 26 May 1997 SENATE 3639

ERDC Commitment: $20,050 ERDC Commitment allocated: 1993/1994 $20,050.00 Total Project Cost: $65,850 Date Approved: 22/04/94 Date Contract Signed: 22/04/94 Commencement Date: 01/05/94 Project Completion Date: 30/04/95 Duration of Project: 12 Months Project Description: This project investigated the technical viability of a thermochemical concept to store and transfer solar energy, using a reversible chemical reaction such as ammonia dissociation and re- combination. Financial Year: 93/94 Project Title: The Development of LNG as a Heavy Duty Vehicle Fuel Project Keywords: NCE Contractor: BHP Engineering Pty Ltd ERDC Commitment: $250,000 ERDC Commitment allocated: 1994/1995 $190,000.00 1995/1996 $35,000.00 1996/1997 $25,000.00 Total Project Cost: $500,000 Date Approved: 00/00/00 Date Contract Signed: 26/07/94 Commencement Date: 01/07/94 Project Completion Date: 17/12/96 Duration of Project: 30 Months Project Description: This project follows from the previous Appin LNG Project which demonstrate the use of LNG as an alternative to diesel fuel in heavy duty bulk haulage service. Financial Year: 93/94 Project Title: Intermediate Temperature Solid Oxide Fuel Cell Project Keywords: EFF Contractor: Ceramic Fuel Cells Limited ERDC Commitment: $1,051,421 ERDC Commitment allocated: 1994/1995 $543,025.00 1995/1996 $355,567.67 1996/1997 $151,308.00 1997/1998 $1,521.08 Total Project Cost: $2,546,212 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/04/94 Anticipated Project Completion Date: 31/03/97 Duration of Project: 36 Months 3640 SENATE Monday, 26 May 1997

Project Description: Research and development of inter- mediate temperature ceramic fuel cell technology. Financial Year: 93/94 Project Title: ESAA/ERDC Interconnected Systems Program Project Keywords: EFF Contractor: Electricity Supply Association of Aus- tralia ERDC Commitment: $1,203,722 ERDC Commitment allocated: 1993/1994 $196,032.50 1994/1995 $127,238.33 1995/1996 $107,693.80 1996/1997 $252,330.83 1997/1998 $300,000.00 1998/1999 $220,426.54 Total Project Cost: $3,183,180 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Anticipated Project Completion Date: 31/12/97 Duration of Project: 48 Months Project Description: This program supports research to en- sure that the most cost efficient and appropriate interconnections are built and maintained between existing distri- bution networks Financial Year: 93/94 Project Title: ESAA/ERDC Emerging Technologies Program Project Keywords: EFF Contractor: Electricity Supply Association of Aus- tralia ERDC Commitment: $407,645 ERDC Commitment allocated: 1993/1994 $211,010.50 1994/1995 $124,459.50 1995/1996 $21,727.00 1996/1997 $50,448.00 Total Project Cost: $2,791,116 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Anticipated Project Completion Date: 31/12/97 Duration of Project: 48 Months Project Description: Program directs research into technolo- gies that are not yet available in the market place but which offer the po- tential for quantum leaps in efficiency in the electricity supply industry Monday, 26 May 1997 SENATE 3641

Financial Year: 93/94 Project Title: ESAA/ERDC Plant Life Extension Program Project Keywords: EFF Contractor: Electricity Supply Association of Aus- tralia ERDC Commitment: $1,064,824 ERDC Commitment allocated: 1993/1994 $185,602.50 1994/1995 $127,238.34 1995/1996 $207,937.00 1996/1997 $200,000.00 1997/1998 $200,000.00 1998/1999 $144,046.16 Total Project Cost: $5,054,011 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/94 Anticipated Project Completion Date: 31/12/97 Duration of Project: 48 Months Project Description: Projects in the program are designed to address these and other issues associat- ed with the continued use of plant and equipment as it approaches the end of its orginal design life. Financial Year: 93/94 Project Title: Research and Demonstration: Opti- mised Hybrid Energy System Project Keywords: EFF Contractor: PowerSearch Ltd ERDC Commitment: $222,600 ERDC Commitment allocated: 1993/1994 $44,500.00 1994/1995 $116,940.00 1995/1996 $61,160.00 Total Project Cost: $576,550 Date Approved: 00/00/00 Date Contract Signed: 01/05/94 Commencement Date: 01/05/94 Project Completion Date: 31/01/97 Duration of Project: 34 Months Project Description: The development of an efficient hybrid energy variable speed system, a combi- nation of renewable energy, diesel and battery power. Financial Year: 93/94 Project Title: Renewable Energy Demand Manage- ment Project Project Keywords: EFF REN Contractor: EcoDesign Foundation ERDC Commitment: $134,090 ERDC Commitment allocated: 1994/1995 $134,090.00 3642 SENATE Monday, 26 May 1997

1996/1997 $.00 Total Project Cost: $830,085 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/06/94 Anticipated Project Completion Date: 30/06/97 Duration of Project: 37 Months Project Description: Explored methodology used in demon- strating energy conservation in com- mercial buildings. The project investi- gates an ecodesign approach to new buildings and those in retrofit. Financial Year: 93/94 Project Title: Study on a Reversable Window Tint- ing System Project Keywords: EFF Contractor: University of New South Wales ERDC Commitment: $50,000 ERDC Commitment allocated: 1993/1994 $10,000.00 1994/1995 $40,000.00 Total Project Cost: $50,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 15/06/94 Project Completion Date: 31/10/94 Duration of Project: 5 Months Project Description: The project evaluated the technology of a reversible window system and the strategies required to take the product from its current state, through to com- mercialisation. Financial Year: 93/94 Project Title: Development of IEA Task 21— Daylighting Project Keywords: EFF Contractor: University of Sydney RDC Commitment: $25,000 RDC Commitment allocated: 1993/1994 $5,000.00 994/1995 $20,000.00 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 25/05/94 Project Completion Date: 31/12/94 Duration of Project: 7 Months roject Description: The project aimed to bring together ap- propriate participants to prepare Australia’s involvement in this new Solar Heating and Cooling Task and explore the benefits for Australia of being involved. Monday, 26 May 1997 SENATE 3643

Financial Year: 93/94 Project Title: Development of a low cost Aluminium Metal Matrix Composite Project Keywords: EFF Contractor: Cyco Technology Pty Ltd RDC Commitment: $1,350,000 RDC Commitment allocated: 1993/1994 $1,350,000 994/1995 $0 995/1996 $0 996/1997 $0 Total Project Cost: $2,779,453 Date Approved: 18/03/94 Date Contract Signed: 20/06/94 Commencement Date: 20/06/94 Project Completion Date: 30/06/97 Duration of Project: 37 Months Project Description: This project is developing an optimal Aluminium Metal Matrix Composite utilising flyash for the world markets, particularly Automotive applications, assisting with their weight reduction targets. Financial Year: 93/94 Project Title: Study on Daintree Tourist Resort Ener- gy Management Project Keywords: EFF REN Contractor: Department of Minerals and Energy RDC Commitment: $25,000 RDC Commitment allocated: 1996/1997 $25,000.00 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/06/94 Recommitment Date: 30/09/94 Duration of Project: Did not proceed Financial Year: 93/94 Project Title: Australian Participation in IEA De- mand Side Management Program Project Keywords: EFF Contractor: ESAA RDC Commitment: $256,000 RDC Commitment allocated: 1994/1995 $50,000.00 995/1996 $50,000.00 996/1997 $51,473.00 997/1998 $54,527.00 998/1999 $50,000.00 Total Project Cost: $627,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/04/94 3644 SENATE Monday, 26 May 1997

Anticipated Project Completion Date: 31/12/98 Duration of Project: 57 Months Project Description: Program involves the sharing of an international database on DSM pro- grams and assesses the best options for research, development and demonstra- tion of DSM technologies. Financial Year: 93/94 Project Title: Study on Energy Efficient Renovation of Commercial Buildings Project Keywords: REN EFF Contractor: Lincolne Scott Consulting Engineers RDC Commitment: $50,750 RDC Commitment allocated: 1994/1995 $-30,000.00 995/1996 $34.00 996/1997 $80,716.00 Total Project Cost: $147,750 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/03/94 Project Completion Date: 31/12/95 Duration of Project: 21 Months roject Description: Project provides a sound understanding of the Australian commercial building market and its renovation process. It also identifies the potential to incorpo- rate energy efficient considerations in that process, recommending mecha- nisms that could promote change Financial Year: 93/94 Project Title: Development of a Ground Source Heat Pump System with Phase Change Thermal Storage Project Keywords: EFF Contractor: The Advanced Engineering Centre for Manufacturing RDC Commitment: $1,243,783 RDC Commitment allocated: 1994/1995 $292,063.00 995/1996 $407,338.00 996/1997 $265,186.00 997/1998 $279,196.00 Total Project Cost: $3,639,731 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/07/94 Anticipated Project Completion Date: 31/12/97 Duration of Project: 43 Months Monday, 26 May 1997 SENATE 3645

Project Description: Developing an innovative energy stor- age system using phase change materi- als, which stores energy at one pre- determined temperature, and slowly re- leases the energy. Applications include large buildings and glass houses. Financial Year: 93/94 Project Title: Energy/Environmental Notes for Archi- tects (and Other Building Designers) Project Keywords: REN EFF Contractor: Royal Australian Institute of Architects RDC Commitment: $102,000 RDC Commitment allocated: 1994/1995 $60,000.00 995/1996 $42,000.00 Total Project Cost: $202,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/08/94 Project Completion Date: 01/12/95 Duration of Project: 16 Months Project Description: An energy and environment reference source for architects and building de- signers, the Guide provides information on the greenhouse gas effect, biodiversity, life cycle analysis, and legislation. Financial Year: 93/94 Project Title: Development of a Gas Feed Back and Gasifier/Engine Control System for Biomass Fuelled Entrained Flow Gasifier Project Keywords: REN Contractor: Biomass Energy Services and Technol- ogy Pty Ltd RDC Commitment: $190,000 RDC Commitment allocated: 1994/1995 $165,500.00 995/1996 $24,500.00 Total Project Cost: $458,600 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/07/94 Project Completion Date: 30/6/95 Duration of Project: 12 Months Project Description: The development and testing of a 100kWe entrained flow biomass gasifier, engine, and clean-up and con- trol system over a two-year period. Financial Year: 93/94 Project Title: Brisbane Electric Hybrid Bus Project Project Keywords: EFF NCE 3646 SENATE Monday, 26 May 1997

Contractor: Queensland Department of Mines and Energy RDC Commitment: $722,500 RDC Commitment allocated: 1994/1995 $87,248.00 995/1996 $114,769.00 996/1997 $453,948.00 997/1998 $66,535.00 Total Project Cost: $2,095,900 Date Approved: 17/06/94 Date Contract Signed: 00/00/00 Commencement Date: 01/04/95 Anticipated Project Completion Date: 30/12/97 Duration of Project: 33 Months Project Description: To demonstrate and evaluate a new ge- neric electric hybrid bus technology in Brisbane as a cost effective alternative transport technology to both diesel powered buses and existing electric bus designs. 93/94 Financial Year: Project Title: Development of Standards and Test Protocols for Ethanol Fuel Blends Project Keywords: NCE Contractor: Liquid Fuels Management Group Ltd RDC Commitment: $46,750 RDC Commitment allocated: 1993/1994 $32,725.00 994/1995 $14,025.00 Total Project Cost: $46,750 Date Approved: 00/00/00 Date Contract Signed: 08/04/94 Commencement Date: 01/04/94 Project Completion Date: 01/07/94 Duration of Project: 3 Months Project Description: Explores interim standards and test protocols for ethanol use as a base transport fuel and for blends of ethanol with petrol and diesel Financial Year: 93/94 Project Title: Extended Field Trials of Ethanol Fuel Blends in Vehicles Project Keywords: NCE Contractor: Hassall & Associates RDC Commitment: $69,750 RDC Commitment allocated: 1993/1994 $69,750.00 Total Project Cost: $69,750 Date Approved: 00/00/00 Date Contract Signed: 08/04/94 Commencement Date: 05/04/94 Project Completion Date: 29/06/94 Duration of Project: 3 Months Monday, 26 May 1997 SENATE 3647

Project Description: One of four studies undertaken to ac- celerate the market penetration of etha- nol fuels in Australia. Financial Year: 93/94 Project Title: Technical Improvements in Ethanol Fuel Blend mixtures Project Keywords: NCE Contractor: Liquid Fuels Management Group Ltd RDC Commitment: $42,300 RDC Commitment allocated: 1993/1994 $42,300.00 Total Project Cost: $42,300 Date Approved: 00/00/00 Date Contract Signed: 08/04/94 Commencement Date: 01/04/94 Project Completion Date: 01/07/94 Duration of Project: 3 Months Project Description: Reviews the status of ethanol fuel mixture technology. It examines trends in Australian ethanol and automotive industries. Financial Year: 93/94 Project Title: Technical Improvements in the deriva- tion of Ethanol from Lignocellulosic Feedstocks Project Keywords: NCE Contractor: Davy John Brown Pty Ltd RDC Commitment: $48,500 RDC Commitment allocated: 1993/1994 $2,425.00 994/1995 $46,075.00 Total Project Cost: $48,500 Date Approved: 00/00/00 Date Contract Signed: 08/04/94 Commencement Date: 16/05/94 Project Completion Date: 16/08/94 Duration of Project: 3 Months Project Description: Reviews past and present develop- ments on the derivation of ethanol from lignocellulose based feedstocks. Financial Year: 94/95 Project Title: Viability Assessment of Vanadium Re- dox Battery Manfacturing in Australia Project Keywords: EFF NCE Contractor: Strategic Industry Research Foundation Ltd RDC Commitment: $30,000 RDC Commitment allocated: 1994/1995 $5,565.12 995/1996 $12,921.00 996/1997 $11,513.88 Total Project Cost: $120,000 Date Approved: 00/00/00 3648 SENATE Monday, 26 May 1997

Date Contract Signed: 00/00/00 Commencement Date: 20/09/94 Anticipated Project Completion Date: 31/07/97 Duration of Project: 34 months Project Description: A study to assess the viability of estab- lishing a Vanadium Redox Battery Manufacturing industry in Australia. Financial Year: 94/95 Project Title: Urban Villages Project Project Keywords: EFF Contractor: Environment Protection Authority RDC Commitment: $307,500 RDC Commitment allocated: 1994/1995 $260,000.00 995/1996 $42,500.00 996/1997 $5,000.00 Total Project Cost: $907,500 Date Approved: 01/08/94 Date Contract Signed: 06/10/94 Commencement Date: 03/10/94 Project Completion Date: 10/07/96 Duration of Project: 22 Months Project Description: It is estimated that at least one quarter of Australia’s greenhouse gas emis- sions emanate from urban areas, most- ly from the space heating, cooling and lighting of buildings, and from urban transport. The Urban Villages project identified sites in Melbourne that would be suitable for redevelopment. It assessed the potential of these sites for accommodating Melbourne’s future housing demand and employment growth, while reducing energy use and greenhouse gas emissions. Financial Year: 94/95 Project Title: Establishment of an IEA Photovoltaic Power Systems Consortium Project Keywords: REN Contractor: IEA PVPS Consortium RDC Commitment: $90,000 RDC Commitment allocated: 1994/1995 $30,000 995/1996 $30,000 996/1997 $30,000 Total Project Cost: $315,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/08/94 Anticipated Project Completion Date: 01/06/97 Duration of Project: 34 months Monday, 26 May 1997 SENATE 3649

Project Description: Australia is considered a world leader in developing photovoltaic (PV) cells and systems, with a local industry manufacturing and supplying a range of products, from cells to PV integrat- ed systems. Australia has joined this implementing agreement to learn from other countries active in this field, so that we can build on the sound basis we have for developing our PV indus- try; and to share knowledge with the international community. Financial Year: 94/95 Project Title: Radiant Tube Technology Project Keywords: EFF Contractor: M.E.T.T.S. Pty Ltd RDC Commitment: $142,624 RDC Commitment allocated: 1994/1995 $22,000.00 995/1996 $90,124.00 996/1997 $30,500.00 Total Project Cost: $285,124 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/12/94 Project Completion Date: 30/06/96 uration of Project: 19 months Project Description: This project explored the need to in- crease the efficiencies of steam raising in order to conserve fuel and help re- duce greenhouse gasses. The executive summary describes the use of radiant tubes or candles as a way of burning natural gas with increased radiant effi- ciency. The project demonstrated that up to 49 per cent of radiant efficien- cies could be achieved in sub-surface burners. Further work on the reliability of the burners now needs to be under- taken to offer boiler manufacturers an Australian gas fired alternative to present systems. Financial Year: 94/95 Project Title: Development of Aquagas Marine Out- board Engine Conversions Project Keywords: NCE Contractor: Galestar Holdings Pty Ltd RDC Commitment: $217,800 RDC Recommitment: $127,020.68 RDC Commitment allocated: 1994/1995 $69307.02 995/1996 $21,472.00 Total Project Cost: $557,600 3650 SENATE Monday, 26 May 1997

Date Approved: 14/11/94 Date Contract Signed: 24/11/94 Commencement Date: 15/11/94 Project Completion Date: 19/04/96 Duration of Project: 17 Months Project Description: The aim of this project was to develop and commercialise a conversion kit for marine oil-injected outboard petrol en- gines to operate on liquid petroleum gas (LPG). A successful outcome would result in reduced fuel operating costs and adverse environmental im- pact. A secondary objective of the project was to establish effective and safe working standards, qualifications and material selection for use in marine LPG installations. This project was ter- minated early due to difficulties ex- perienced by the contractor. Financial Year: 94/95 Project Title: Development of Analytical Models for Evaluating Embodied Energy in Con- struction Project Keywords: EFF REN Contractor: CSIRO Division of Building, Construc- tion and Engineering RDC Commitment: $93,500 RDC Commitment allocated: 1994/1995 $51,000.00 995/1996 $42,500.00 Total Project Cost: $233,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 09/12/94 Project Completion Date: 29/03/96 Duration of Project: 16 months Project Description: Buildings have a significant impact on the environment due to the energy em- bodied in construction materials. Cur- rently, building professionals such as artchitects, engineers and quantity sur- veyors have very little guidance or quantitative information on the embod- ied energy impacts of individual ma- terials or the total of the building. This report discusses the development of a prototype software package to quantify the energy embodied in the construc- tion of a building. Financial Year: 94/95 Monday, 26 May 1997 SENATE 3651

Project Title: Enhanced Methane Production from Low Permeability Coals by Permeabili- ty Development and/or Gas Flooding Project Keywords: EFF Contractor: CSIRO Division of Petroleum Re- sources RDC Commitment: $299,941 RDC Recommitment: $299,941 RDC Commitment allocated: $0 Total Project Cost: $1,063,728 Date Approved: 24/11/94 Date Contract Signed: 00/00/00 Commencement Date: 31/10/94 Recommitment Date: 30/10/95 Duration of Project: Did not proceed Financial Year: 94/95 Project Title: Fly wheel energy storage, Phase 1: Due diligence and planning Project Keywords: EFF Contractor: CSIRO Division Materials Science & Technology RDC Commitment: $43,075 RDC Commitment allocated: 1994/1995 $30,000.00 995/1996 $13,075.00 Total Project Cost: $150,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/08/94 Project Completion Date: 31/01/95 Duration of Project: 6 months Project Description: Project established to report on the na- ture and size of likely early markets for flywheel energy storage systems in stationary applications. Project also to confirm the validity and completeness of the assessments made in the Fly- wheel Energy Storage report regarding the five enabling technologies, which are: fibre composite rotor systems; high-efficiency motor/generators; power-conditioning systems; magnetic bearings; and housing and containment systems. The project also aims to re- port on the state of development, in Australia and overseas, of the five enabling technologies. Financial Year: 94/95 Project Title: High-Speed High-Efficiency Twin- Turbine Compressor for R134a Re- frigerant Project Keywords: EFF 3652 SENATE Monday, 26 May 1997

Contractor: Multistack International Ltd RDC Commitment: $1,720,000 RDC Commitment allocated: 1994/1995 $200,000.00 995/1996 $375,000.00 996/1997 $562,500.00 997/1998 $582,500.00 Total Project Cost: $5,887,100 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 31/12/93 Anticipated Project Completion Date: 30/04/98 Duration of Project: 53 Months Project Description: Multistack International is a chiller manufacturer. This project is develop- ing a new, high speed high efficiency, twin turbine compressor that could be used in air conditioning and refrigera- tion systems, increasing their efficien- cy and reducing running costs. The compressor is 50 per cent more effi- cient that current compressors and 20 per cent of their size. Financial Year: 94/95 Project Title: Anjay Friction Spinning System Project Keywords: EFF Contractor: Anjay Spinning Systems Pty Ltd RDC Commitment: $102,500 RDC Commitment allocated: 1994/1995 $83,903.00 995/1996 $18,597.00 Total Project Cost: $207,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 22/11/94 Project Completion Date: 29/02/96 Duration of Project: 15 months Project Description: A prototype of the Anjay Spinning System was developed to improve current yarn spinning methods, par- ticularly where the desired end product is fine yarn. This project addressed the economic advantages, the quality, and production rate capacity of the Anjay system, with particular emphasis on improving energy efficiency. Financial Year: 94/95 Project Title: Evaluation of Australian Bituminous Coals: Slagging Characteristics of Intergrated Gasification Combined Cy- cles Project Keywords: EFF Monday, 26 May 1997 SENATE 3653

Contractor: CSIRO Division of Coal and Energy Technology RDC Commitment: $186,000 RDC Commitment allocated: 1994/1995 $43,973.00 995/1996 $54,562.00 996/1997 $55,440.00 997/1998 $32,025.00 Total Project Cost: $1,527,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/95 Anticipated Project Completion Date: 30/6/98 Duration of Project: 42 months Project Description: Project established to support the de- velopment of the clean use of new and existing black coal deposits in Austral- ia, in advanced IGCC power plants by determination of their slag fluxing re- quirements during gasification. Financial Year: 94/95 Project Title: Convertalite—Energy Efficient Downlights Project Keywords: EFF Contractor: Green Light Company Limited RDC Commitment: $348,515 RDC Commitment allocated: 1994/1995 $137,350.00 995/1996 $211,165.00 Total Project Cost: $795,515 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/10/94 Project Completion Date: 15/12/95 Duration of Project: 14 months Project Description: This project addressed the development of an inexpensive and energy efficient low voltage lamp adapter for downlight fittings. Previously, retrofit- ting existing GLS and incandescent reflector lamp fittings has been limited to installing energy saving lamps—or replacing the entire lighting sys- tem.The convertalite is a simple non- hard wired retro-fit system which con- verts incadescent lamped 240 volt downlights to a more efficient 12 volt light source.The convertalite is de- signed to achieve energy reductions of up to 80 per cent and overcomes the problem that other lamps have of gen- erating a lot of heat. Financial Year: 94/95 3654 SENATE Monday, 26 May 1997

Project Title: Gas in Coal—Coalbed Methane Work- ing Party Project Keywords: EFF Contractor: Energy Research and Development Corporation RDC Commitment: $18,000 RDC Commitment allocated: 1994/1995 $12,276.90 996/1997 $5,723.10 Total Project Cost: $18,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/02/95 Project Completion Date: 30/12/96 Duration of Project: 23 months Project Description: CBM is a huge potential energy re- source for Australia. However, it is currently vented to the atmosphere either naturally or through a mining pre-drainage process, making CBM a contributor to greenhouse gas emis- sions. n 1995, ERDC established the Coalbed Methane Working Party to address ways of encouraging industry to work together, and to develop strategies for understanding the Australian conditions to accessing gas in coal. This has resulted in the planning, consultation and liaison activities for the develop- ment of The Commercial Significance to Australia of Gas in Coal Market Study were conducted during 1995-96. Financial Year: 94/95 Project Title: Research into the Bioremediation of Oil Spills in Tropical Australia Project Keywords: EFF Contractor: Australian Maritime Safety Authority RDC Commitment: $128,025 RDC Commitment allocated: 1994/1995 $.00 995/1996 $14,500.00 996/1997 $55,000.00 997/1998 $30,000.00 998/1999 $28,525.00 Total Project Cost: $272,050 Date Approved: 12/12/94 Date Contract Signed: 00/00/00 Commencement Date: 18/05/95 Anticipated Project Completion Date: 15/12/98 Duration of Project: 43 months Monday, 26 May 1997 SENATE 3655

Project Description: Much of tropical Australia is not only environmentally sensitive to oil spills but vast and remote. The use of me- chanical or physical clean up tech- niques in mangrove and saltmarsh habitats can cause extensive damage to these foreshores and is extremely diffi- cult and expensive to undertake. Bioremediation, or the accelerated and improved efficiency of the natural degradation of oil by micro-organisms, has the potential to reduce the environ- mental impact of marine oil spills on tropical Australian foreshores. The primary objective of this project is to assess the feasibility of bioremediation to clean up oil spills in environmentally sensitive tropical fore- shore environments so that the findings can be incorporated into the overall planning and response management plan for oil spills in Australia. Financial Year: 94/95 Project Title: To Assess the Exposure of Workers in the Australian Petroleum Industry to Hazardous substances including Benzenes & other Hydrocarbons Project Keywords: EFF Contractor: Australian Institute of Petroleum Ltd RDC Commitment: $164,681 RDC Commitment allocated: 1994/1995 $.00 995/1996 $79,380.00 996/1997 $63,870.00 997/1998 $21,431.00 Total Project Cost: $627,675 Date Approved: 12/12/94 Date Contract Signed: 20/06/95 Commencement Date: 19/06/95 Anticipated Project Completion Date: 30/09/97 Duration of Project: 28 Months 3656 SENATE Monday, 26 May 1997

Project Description: The Australian Institute of Petroleum Health Watch program has run for a number of years. In this project, ERDC has jointly invested with the AIP to in- vestigate the level of exposure of pet- roleum industry employees to benzene and other hydrocarbons. It is hoped that the results of the pro- ject will provide evidence which can then be used by regulatory authorities such as Work Australia when it con- siders the establishment of future occu- pational exposure levels for benzene and total hydrocarbons. Financial Year: 94/95 Project Title: Operation on Alternative Fuel of Opti- mised NGV Engines Project Keywords: EFF NCE Contractor: UniMelb Ltd RDC Commitment: $187,000 RDC Commitment allocated: 1993/1994 $60,000.00 994/1995 $44,700.00 995/1996 $41,500.00 996/1997 $40,800.00 Total Project Cost: $531,000 Date Approved: 23/12/94 Date Contract Signed: 20/03/95 Commencement Date: 01/03/95 Project Completion Date: 30/09/96 Duration of Project: 19 months Project Description: The primary aim of this project was to explore the feasibility of operating the optimised NGV engine developed for the ERDC/Ford gas taxi project on an alternative fuel (in this case premium unleaded petrol), and to evaluate its performance, emmissions and durabili- ty to enable assessment of its commer- cial viability and compliance with current ADR’s. Financial Year: 94/95 Project Title: Bio Production of Hydrogen Project Keywords: REN EFF Contractor: The University of Adelaide RDC Commitment: $146,500 RDC Commitment allocated: 1994/1995 $5,000.00 995/1996 $28,250.00 996/1997 $32,250.00 997/1998 $81,000.00 Total Project Cost: $293,000 Date Approved: 12/12/94 Monday, 26 May 1997 SENATE 3657

Date Contract Signed: 28/03/95 Commencement Date: 01/03/95 Anticipated Project Completion Date: 28/2/98 Duration of Project: 36 months Project Description: This project will undertake a proof of concept investigation of methods for the production of hydrogen using micro-organisms. A technical and eco- nomic feasbility of the process will also be undertaken to determine the merit of proceeding to pilot scale pro- duction. Financial Year: 94/95 Project Title: Study on Polymer Drying by Microwave Technology Project Keywords: EFF Contractor: Industrial Microwave Technology & Environmental Corporation Pty Ltd RDC Commitment: $51,927 RDC Commitment allocated: 1995/1996 $44,138.00 996/1997 $7,789.00 Total Project Cost: $103,854 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 31/01/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 17 months Project Description: There is a high level of wastage in the processes of the polymer manufactur- ing industry. A significant reduction in the energy requirements for plastics manufacture would lead to improved competitiveness, and more efficient use of the machinery involved in the pro- cesses. This project will be seeking savings in operating costs over a standard ma- chine as well as reduced time for dry- ing the polymers in the machines. There is export potential in both the more competitive plastics produced from an improved process, as well as in the newly developed technology to produce it. Financial Year: 94/95 Project Title: Multiple Path Regulator Project Keywords: EFF Contractor: Australian Computer & Electronic Sys- tems Pty Ltd RDC Commitment: $62,500 RDC Recommitment: $62,500 3658 SENATE Monday, 26 May 1997

RDC Commitment allocated: $0 Total Project Cost: $125,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/95 ecommitment Date: 17/07/95 Duration of Project: Did not proceed Financial Year: 94/95 Project Title: Wellbore Stability and Drilling Fluid Design for Australian Shales Project Keywords: EFF Contractor: CSIRO Division of Petroleum Re- sources RDC Commitment: $600,000 RDC Commitment allocated: 1994/1995 $30,000.00 995/1996 $151,840.00 996/1997 $258,940.00 997/1998 $159,220.00 Total Project Cost: $1,833,865 Date Approved: 09/12/94 Date Contract Signed: 17/05/95 Commencement Date: 17/05/95 Anticipated Project Completion Date: 01/06/98 Duration of Project: 37 months Project Description: This project developing the under- standing and technology which de- scribes the interaction between drilling fluids and active shales and which pro- vides the basis for designing optimal drilling fluids. If successful, the tech- nology will be made available to the Australian petroleum industry through an established service company, Baroid Australia. Financial Year: 94/95 Project Title: Australian Participation in IEA Solar Heating and Cooling Program’s Task 21: Daylight in Buildings Project Keywords: EFF REN Contractor: University of Sydney RDC Commitment: $164,298 RDC Commitment allocated: 1994/1995 $12,798.00 995/1996 $62,742.00 996/1997 $32,073.00 997/1998 $32,555.00 998/1999 $24,130.00 Total Project Cost: $314,298 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/95 Anticipated Project Completion Date: 30/06/99 Monday, 26 May 1997 SENATE 3659

Duration of Project: 54 months Project Description: The basic objective of IEA Task 21 is to promote daylight conscious design with the aim of realising energy sav- ings and visual and thermal comfort. ERDC facilitated the development of the Daylight Working Group to co- ordinate daylighting research around Australia and to participate in this international Task, and disseminate information both within Australia and overseas and to maximise any possible advantage to Australia. Financial Year: 94/95 Project Title: Establishment of Biomass-Based Ener- gy Industry Association Project Keywords: REN EFF Contractor: Strategic Industry Research Foundation Ltd RDC Commitment: $5,000 RDC Commitment allocated: 1994/1995 $5000 Total Project Cost: $7,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 12/12/94 Project Completion Date: 09/02/95 Duration of Project: 2 months Project Description: This project investigated the feasibility of establishing a biomass-based energy industry association, one of the recom- mendations from the study, Biomass in the Energy Cycle, released by ERDC in 1994. Financial Year: 94/95 Project Title: Photovoltaic/Trough Concentrator Sys- tem Project Keywords: REN Contractor: Australian National University RDC Commitment: $338,000 RDC Commitment allocated: 1994/1995 $86,000.00 995/1996 $80,000.00 996/1997 $48,000.00 997/1998 $124,000.00 Total Project Cost: $1,603,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 10/01/95 Anticipated Project Completion Date: 01/02/98 Duration of Project: 37 months 3660 SENATE Monday, 26 May 1997

Project Description: The aim of this project is to design and construct a photovoltaic reflecting trough (PV/trough) concentrator system which can generate electricity for less than 20 c/kWh based on normal com- mercial conditions, and to transfer these designs and systems to Austral- ian companies such as Solar Research Corporation, BP Solar and PV systems companies for commercialisation. 94/95 Financial Year: Project Title: Development of Electric Window Technology Project Keywords: REN Contractor: Silicon Technologies Australia Pty Ltd RDC Commitment: $1,560,000 RDC Commitment allocated: 1994/1995 $200,000.00 995/1996 $802,859.48 996/1997 $551,137.10 997/1998 $6,003.42 Total Project Cost: $6,416,897 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 31/03/95 Anticipated Project Completion Date: 30/04/97 Duration of Project: 25 months Project Description: The project is the first phase of a pro- gram to establish in Australia the com- mercial production of electric windows which will act as a photovoltaic mod- ule on buildings. The modules will therefore be able to contribute to meet- ing a building’s electricity needs. This phase of the project will show that it is possible to arrive at an ac- ceptable technical design of dye sensi- tised nanocrystalline titanium dioxide solar cells to construct photovoltaic cells in the laboratory. Financial Year: 94/95 Project Title: Cape Keraudren Tidal Power—Re- search and Development Review Project Keywords: REN NCE Contractor: Tidal Energy Australia Pty Ltd RDC Commitment: $150,000 RDC Commitment allocated: 1995/1996 $150,000.00 Total Project Cost: $300,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/95 Monday, 26 May 1997 SENATE 3661

Project Completion Date: 31/01/97 Duration of Project: 23 Months Project Description: This study assessed the feasibility of developing a small scale, commercial tidal energy demonstration plant at Cape Keraudren, on the North West coastline of Western Australia. As a renewable form of electricity,the rec- ommended demonstration plant would consume no fossil fuels, be pollution- free and would provide a reliable, long term energy source for a remote area of Australia. According to the study, a relatively small tidal power plant could enable an estimated reduction in car- bon dioxide emissions by between 45,000 and 70,000 tonnes each year of operation. Financial Year: 94/95 Project Title: Gas Fired Pulse Combustion Heat Pump/Absorption Refrigeration Project Keywords: EFF Contractor: CSIRO Division of Building, Construc- tion and Engineering RDC Commitment: $144,500 RDC Commitment allocated: 1995/1996 $20,000.00 996/1997 $124,500.00 Total Project Cost: $302,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 26/05/95 Anticipated Project Completion Date: 25/03/97 Duration of Project: 22 months Project Description: Unlike electricity, the demand for gas reduces in summer. This project is sup- porting the introduction and commer- cialisation of gas heat pumps and ab- sorption chillers and heaters into Aus- tralia. Expected outcomes include reduced electricity needs and assisting the electricity and gas supply industries to manage seasonal demands. Financial Year: 94/95 Project Title: Accumulation of Coalseam Gases in the Bowen Basin Project Keywords: EFF Contractor: UniQuest Limited RDC Commitment: $442,000 RDC Commitment allocated: 1994/1995 $22,000.00 995/1996 $180,000.00 996/1997 $170,000.00 3662 SENATE Monday, 26 May 1997

997/1998 $70,000.00 Total Project Cost: $957,000 Date Approved: 09/12/94 Date Contract Signed: 01/02/95 Commencement Date: 01/02/95 Anticipated Project Completion Date: 30/11/97 Duration of Project: 34 Months Project Description: This project will undertake a quantita- tive and qualitative assessment of hydrocarbon generation retention and or migration in Bowen Basin coals. One of the outcomes will be a soft- ware package (based on the math- ematical modelling) which will enable industry players to predict concentra- tions of gases in specific locations. Financial Year: 94/95 Project Title: Plan for Australian Technology in High Temperature Superconducting Wires Project Keywords: EFF Contractor: Metal Manufactures Limited RDC Commitment: $1,610,000 RDC Commitment allocated: 1995/1996 $710,000.00 996/1997 $620,000.00 997/1998 $280,000.00 Total Project Cost: $5,920,000 Date Approved: 13/02/95 Date Contract Signed: 06/09/95 Commencement Date: 01/02/95 Anticipated Project Completion Date: 31/01/98 Duration of Project: 36 months Monday, 26 May 1997 SENATE 3663

Project Description: Depending on location, up to 10% of electricity may be lost in transmission and distribution networks and devices in Australia each year. This loss is due to the resistance in conventional metal- lic conductors. So called "superconductors" have zero resistance to electric current under certain operation conditions. Therefore the economical exploitation of these materials to deliver electricity is attrac- tive to energy suppliers and users. High temperature superconductors are a class of ceramic materials that oper- ate at temperatures up to 120 degrees Kelvin (minus 150 degrees Celsius). At these temperatures—which are high compared with those at which metallic superconductors can operate—the eco- nomics for exploiting the supercon- ducting properties of these materials in power applications become attractive. This project is aiming to build a small scale manufacturing facility that could supply a range of Australian— developed, high temperature supercon- ducting wire. The wire is considered to be one of the key elements in future electricity distribution cables and equipment and has great potential for other applications. The ability to produce the wire in lengths of up to 1km, and of consistent quality, will be regarded as a signifi- cant milestone in the commerciali- sation of this technology. Financial Year: 94/95 Project Title: Superconducting Components for the Electrical Supply Industry Project Keywords: EFF Contractor: UniQuest Limited RDC Commitment: $1,009,000 RDC Commitment allocated: 1995/1996 $275,266.77 996/1997 $385,124.96 997/1998 $222,000.00 998/1999 $126,608.27 Total Project Cost: $3,193,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/95 Anticipated Project Completion Date: 28/02/98 3664 SENATE Monday, 26 May 1997

Duration of Project: 36 months Project Description: This project aims to develop prototype high temperature superconducting com- ponents for use in the electricity sup- ply industry. Financial Year: 94/95 Project Title: Development and Demonstration of a Refrigeration Fault Diagnosis System Project Keywords: EFF Contractor: Energetics Pty Ltd RDC Commitment: $130,000 RDC Commitment allocated: 1994/1995 $15,000.00 995/1996 $35,000.00 997/1998 $60,000.00 998/1999 $20,000.00 Total Project Cost: $260,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/02/95 Anticipated Project Completion Date: 31/12/98 Duration of Project: 48 Months Project Description: Faulty refrigeration systems can result in a significant loss in efficiencies. Running faults in such machines are often difficult to detect, and are only solved when systems are serviced. This project aims to demonstrate the utility value of MENTOR for one of the breweries in Australia, to monitor its performance and compare it with con- ventional methods of operat- ing/maintaining the refrigeration sys- tems. Financial Year: 94/95 Project Title: Development of an Innovative Steam Engine with Linear Alternator Project Keywords: REN EFF Contractor: Biomass Energy Services and Technol- ogy Pty Ltd RDC Commitment: $101,600 RDC Commitment allocated: 1994/1995 $49,050.00 995/1996 $52,550.00 996/1997 $.00 Total Project Cost: $213,200 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/02/95 Project Completion Date: 01/02/96 Duration of Project: 12 months Monday, 26 May 1997 SENATE 3665

Project Description: There is an increasing market for small steam engines in developing and devel- oped countries. This project addressed the development of a high speed, low cost engine that uses electronic valves and linear alternators. Using modern electronics, the project aimed to reduce the cost of the engine and increase its efficiency. A proof of concept linear alternator was also built and tested using an electrical motor. Financial Year: 94/95 Project Title: Photovoltaic/Trough Concentrator Sys- tem (William Keogh) Project Keywords: REN EFF Contractor: Australian National University RDC Commitment: $66,000 RDC Commitment allocated: 1994/1995 $13,500.00 995/1996 $10,500.00 996/1997 $21,000.00 997/1998 $21,000.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/06/95 Anticipated Project Completion Date: 01/06/98 Duration of Project: 36 months Project Description: An ERDC Postgraduate Award recipi- ent. Financial Year: 94/95 Project Title: Daylight and Solar Performance Char- acterisation of Advanced Window Sys- tems (Rebecca Powles) Project Keywords: EFF Contractor: University of Sydney RDC Commitment: $66,000 RDC Commitment allocated: 1994/1995 $13,500.00 995/1996 $21,000.00 996/1997 $21,000.00 997/1998 $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 20/02/95 Project Completion Date: 31/07/98 Duration of Project: 42 Months Project Description: An ERDC Postgraduate Award recipi- ent. 3666 SENATE Monday, 26 May 1997

Financial Year: 94/95 Project Title: Analysis & Development of Bidirectional, Soft Switched, Resonant Link Converters (Andrew Tuckey) Project Keywords: REN EFF Contractor: Northern Territory University RDC Commitment: $66,000 RDC Commitment allocated: 1994/1995 $13,500.00 995/1996 $21,000.00 996/1997 $21,000.00 997/1998 $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/95 Anticipated Project Completion Date: 31/12/97 Duration of Project: 36 months Project Description: An ERDC Postgraduate Award recipi- ent. Financial Year: 94/95 Project Title: The Packing of Nonspherical Particles (Ruiping Zou) Project Keywords: EFF Contractor: University of New South Wales RDC Commitment: $66,000 RDC Commitment allocated: 1994/1995 $13,500.00 995/1996 $21,000.00 996/1997 $21,000.00 997/1998 $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 27/02/95 Commencement Date: 01/02/95 Anticipated Project Completion Date: 31/01/98 Duration of Project: 36 months Project Description: An ERDC Postgraduate Award recipi- ent. Financial Year: 94/95 Project Title: Greenpower Commercial Project Keywords: REN EFF Contractor: Eastern Energy Services RDC Commitment: $170,000 RDC Commitment allocated: 1994/1995 $117,859.00 995/1996 $52,141.00 Total Project Cost: $170,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 23/02/95 Project Completion Date: 30/9/95 Duration of Project: 7 months Monday, 26 May 1997 SENATE 3667

Project Description: This second stage to the program de- velopment sought further refinement and development of the concepts, par- ticularly through informal "market survey feedback obtained while work- ing with possible commercial support- ers, investigation of options for enab- ling corporate structures, research and marketing to a broad range of potential major corporate sponsors and the elec- tricity supply industry (ESI). Financial Year: 94/95 Project Title: Seminar of the Adoption & Marketing of Energy Efficient Appliances Project Keywords: EFF Contractor: Energy Research and Development Corporation RDC Commitment: $25,000 RDC Commitment allocated: 1994/1995 $25,000.00 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/01/95 Project Completion Date: 30/03/95 Duration of Project: 3 months Project Description: In March 1995, ERDC hosted a semi- nar in conjunction with the Australian Chamber of Manufactures, and the Royal Melbourne Institute for Technol- ogy, to promote the results of a study into the adoption and marketing of energy efficient appliances. Financial Year: 94/95 Project Title: First Commercial Scale Demonstration of Convertech Biofuel Production for Power Generation—Module 1 Project Keywords: REN EFF Contractor: Scott Convertech Limited RDC Commitment: $303,663 RDC Commitment allocated: 1994/1995 $24,607.00 995/1996 $246,704.00 996/1997 $32,352.00 Total Project Cost: $811,638 Date Approved: 19/01/95 Date Contract Signed: 00/00/00 Commencement Date: 01/03/95 Anticipated Project Completion Date: 31/05/97 Duration of Project: 27 Months 3668 SENATE Monday, 26 May 1997

Project Description: This project demonstrates the Convertech technology for conversion of biomass to energy. It uses a "whole of tree" approach to the use of bio- mass—the modular technology enab- ling the production of energy only or energy and other by-products which add to the economic viability of the process. Financial Year: 94/95 Project Title: Energy Technology Information Pro- gram Project Keywords: REN EFF Contractor: Australian ETIP Consortium RDC Commitment: $580,000 RDC Commitment allocated: 1994/1995 $100,000.00 995/1996 $75,000.00 996/1997 $75,000.00 997/1998 $330,000.00 Total Project Cost: $1,060,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/02/95 Anticipated Project Completion Date: 31/12/98 Duration of Project: 48 Months Monday, 26 May 1997 SENATE 3669

Project Description: Australia generates approximately 2% of the world’s published research pa- pers and patents. Therefore, it is essen- tial that Australian industry and re- search communities have access to international endeavour and know- ledge. The Energy Technology Information Program (ETIP) was established in 1995 by the Energy Research and De- velopment Corporation (ERDC) to improve the quality of and access to information available on Australian and international energy research, tech- nology and innovation. EnergySearch is the key tool that has been developed to achieve these goals. It is a gateway to information about Australian energy innovation projects and expertise. The information will be delivered through an interactive site on the World Wide Web (WWW). EnergySearch will enable access to: information on projects in energy re- search and innovation and on the peo- ple and organisations involved infor- mation about the expertise of people and capabilities of organisations across the energy sector the US Department of Energy’s current energy research file the International Energy Agency’s Energy database (still in development) EnergySearch aims to provide an im- portant link between the public and private research sectors and industry. It will: promote the work and investigat- ions of individuals and organisations assist in the search for consultants and specific expertise enhance finding opportunities for collaboration and avoiding duplication support users interactively enable direct input of information and feedback from users provide networking opportunities na- tionally and internationally. Financial Year: 94/95 Project Title: The Development of Energy Efficient Thermal Food Processing Systems Project Keywords: EFF Contractor: Simplot Australia Pty Ltd RDC Commitment: $128,500 3670 SENATE Monday, 26 May 1997

RDC Commitment allocated: 1995/1996 $6,000.00 996/1997 $90,500.00 997/1998 $32,000.00 Total Project Cost: $904,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/07/95 Anticipated Project Completion Date: 28/02/98 Duration of Project: 32 months Project Description: This project aims to develop new methods for packaging food which will result in improving the energy efficien- cy of the sterilisation and packing pro- cess, as well as increasing the efficien- cy of transporting the food. Financial Year: 94/95 Project Title: Green Heating Quest Project Keywords: EFF Contractor: Royal Melbourne Institute of Technol- ogy RDC Commitment: $90,500 RDC Commitment allocated: 1994/1995 $4,000.00 995/1996 $49,441.65 996/1997 $37,058.35 Total Project Cost: $178,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/04/95 Anticipated Project Completion Date: 30/04/97 Duration of Project: 24 months Project Description: This project is a follow on from RMIT’s Green Fridge Quest. The pro- ject aimed to bring together students and industry groups to look at new ways of reducing the energy require- ments and costs for domestic heating. A range of new product ideas was de- veloped, both within industry and by students, and the results will be pub- lished in a final report for dissemina- tion. Financial Year: 94/95 Project Title: Development of Lithium Ion Secondary Batteries Project Keywords: EFF Contractor: CSIRO Division of Materials, Science and Technology RDC Commitment: $150,000 RDC Commitment allocated: 1995/1996 $150,000.00 Total Project Cost: $300,000 Date Approved: 00/00/00 Monday, 26 May 1997 SENATE 3671

Date Contract Signed: 00/00/00 Commencement Date: 01/03/95 Project Completion Date: 25/09/96 Duration of Project: 19 Months Project Description: This project evaluated the potential of Lithium Ion secondary battery systems and related technologies. There is an increasing need for an additional form of portable stored energy, derived from electricity, particularly in a recharge- able form. This report explores the state-of-the-art Lithium Ion technology with a view to scale up to electric vehicle size. Financial Year: 94/95 Project Title: Energy, Environment and Economics Conference Project Keywords: REN EFF Contractor: University of Melbourne RDC Commitment: $10,000 RDC Commitment allocated: 1994/1995 $10,000.00 Total Project Cost: $10,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/02/95 Project Completion Date: 30/11/95 Duration of Project: 10 months Project Description: Sponsorship of this international con- ference hosted by the University of Melbourne. Financial Year: 94/95 Project Title: GHG Impacts of ERDC Projects Project Keywords: REN EFF Contractor: ABARE RDC Commitment: $10,000 RDC Commitment allocated: 1994/1995 $10,000.00 995/1996 $.00 Total Project Cost: $10,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 27/02/95 Project Completion Date: 31/03/95 Duration of Project: 1 months 3672 SENATE Monday, 26 May 1997

Project Description: In March 1995 ERDC commissioned the Australian Bureau of Agricultural and Resource Economics (ABARE) to estimate the effects on greenhouse gas emissions in 1999-2000 and 2004-5 if a third of all ERDC investments since 1990 were successfully commercial- ised. ABARE found that in the short term (5-10 years) the projects focussing on energy use are potentially the big ener- gy savers in greenhouse gas emissions. Over the same time span, the supply side options (electricity generation and distribution) show the largest relative rises in potential carbon dioxide reduc- tions. Financial Year: 94/95 Project Title: Intensive Field Trials of Ethanol Blends in Vehicles Project Keywords: NCE Contractor: Apace Research Ltd RDC Commitment: $748,350 RDC Commitment allocated: 1994/1995 $67,000.00 995/1996 $346,700.00 996/1997 $315,918.00 997/1998 $18,732.00 Total Project Cost: $855,924 Date Approved: 02/03/95 Date Contract Signed: 11/05/95 Commencement Date: 08/05/95 Anticipated Project Completion Date: 31/10/97 Duration of Project: 30 Months Monday, 26 May 1997 SENATE 3673

Project Description: The objectives of the intensive field trials of 10% v/v ethanol petrol blend in vehicles are to: establish the contribution of etha- nol/petrol blend to reducing green- house gas and noxious emissions; compare in-service fuel consumption of ethanol/petrol blend to that of neat petrol; compare vehicle driveability on etha- nol/petrol blend to that on neat petrol under various climatic conditions; measure engine performance (power, torque) on and establish road octane number of ethanol/petrol blend; examine the fuel system component materials for compatibility with etha- nol/petrol blend and conformity to international specifications; compare engine wear with etha- nol/petrol blend to that with neat pet- rol; examine water tolerance issues arising from storage, distribution and use of ethanol/petrol blend. Financial Year: 94/95 Project Title: Fuel Blends: Emulsions of Hydrated Ethanol in Hydrocarbon Fuels Project Keywords: NCE Contractor: Apace Research Ltd RDC Commitment: $100,000 RDC Commitment allocated: 1994/1995 $9,050.00 995/1996 $44,550.00 996/1997 $46,400.00 Total Project Cost: $238,394 Date Approved: 02/03/95 Date Contract Signed: 18/04/95 Commencement Date: 13/04/95 Anticipated Project Completion Date: 12/05/97 Duration of Project: 25 Months 3674 SENATE Monday, 26 May 1997

Project Description: This project involves two distinct parts: Part A—hydrated ethanol/diesel emulsions; and Part B—hydrated etha- nol/petrol emulsions. The primary objective for Part A is to optimise the chemistry of the copoly- mers comprising the DALCO emulsifi- er for use by diesel fuel and ethanol fuel distributors to increase the specific activity of these polymers and reduce the cost of hydrated ethanol/diesel fuel emulsion production. The primary objective for Part B is to optimise the chemistry of the copoly- mers comprising the DALCO emulsifi- er initally for use by researchers and regulatory authorities to produce stable emulsions of hydrated ethanol in petrol in order to identify any advantageous physiochemical properties of such hy- drated ethanol/petrol emulsions com- pared with the properties of conven- tional anhydrous ethanol/petrol solu- tions. Financial Year: 94/95 Project Title: Ethanol Production: Development of a Thermophilic Organism for the Total Fermentation of Lignocellulose Hy- drolysates to Ethanol Project Keywords: NCE Contractor: La Trobe University RDC Commitment: $254,355 RDC Commitment allocated: 1994/1995 $25,000.00 995/1996 $130,540.00 996/1997 $98,815.00 Total Project Cost: $515,549 Date Approved: 02/03/95 Date Contract Signed: 06/04/95 Commencement Date: 27/04/95 Anticipated Project Completion Date: 27/04/97 Duration of Project: 24 months Monday, 26 May 1997 SENATE 3675

Project Description: The primary objectives of this program of research are: To study the activities of the various enzymes required for the catabolism of hemicellulose sugar xylose by thermo- philic ethanologenic bacteria. The cho- sen organism is T. brockii or a similar Thermoanaerobacter strain. To create cell-free fermenting extracts of thermophilic bacteria, to which have been added enzymes from other sour- ces, to investigate the limits to rate and extent of ethanolic fermentation. To construct a transgenic thermophilic bacterium expressing the Z.mobilis pyruvate decarboxylase gene to opti- mise ethanol productivity. Financial Year: 94/95 Project Title: Development of Fungal Strains Capa- ble of Economic Conversion of Cellu- lose to Ethanol Project Keywords: NCE Contractor: University of Adelaide RDC Commitment: $195,489 RDC Commitment allocated: 1994/1995 $5,000.00 995/1996 $73,324.00 996/1997 $67,156.00 997/1998 $50,009.00 Total Project Cost: $381,789 Date Approved: 02/03/95 Date Contract Signed: 22/05/95 Commencement Date: 08/05/95 Anticipated Project Completion Date: 30/05/98 Duration of Project: 37 months Project Description: The overall objective of this project is to develop an Aspergillus strain (prob- ably Aspergillus nidulans) capable of the economic conversion of cellulose to ethanol for use in the cellulose waste processing industry in order to enhance the value of the waste pro- ducts, reduce pollution and provide a useful fuel for Australian industry and transport. Secondary objectives are to investigate ethanol production and carbon repres- sion in both industrially useful and model organisms, and in strains of fila- mentous fungi. 3676 SENATE Monday, 26 May 1997

Financial Year: 94/95 Project Title: Fermentation of Hemicellulose Hy- drolysates using Recombinant E.Coli and Saccharomyces Cerevisiae Project Keywords: NCE Contractor: University of Melbourne RDC Commitment: $233,853 RDC Commitment allocated: 1994/1995 $11,692.00 995/1996 $97,051.00 996/1997 $53,071.00 997/1998 $72,039.00 Total Project Cost: $688,374 Date Approved: 02/03/95 Date Contract Signed: 02/05/95 Commencement Date: 01/05/95 Anticipated Project Completion Date: 30/04/98 Duration of Project: 36 months Project Description: The objectives of this project are to: develop strategies and technology for using recombinant E. coli and Saccharomyces cerevisiae to produce ethanol from lignocellulosics in con- tinuous culture. develop technologies to permit fermen- tation of concentrated acid hydroly- sates by the above organisms. study the potential of waste casein hy- drolysate as a cheap, novel and appar- ently ideal nutrient source for commer- cial ethanol fermentations involving E. coli. Financial Year: 94/95 Project Title: Ethanol Production Project Keywords: NCE Contractor: University of New South Wales RDC Commitment: $1,036,000 RDC Commitment allocated: 1995/1996 $257,100 996/1997 $364,000 997/1998 $313,700 998/1999 $101,200 Total Project Cost: $2,116,500 Date Approved: 02/03/95 Date Contract Signed: 22/06/95 Commencement Date: 01/07/95 Anticipated Project Completion Date: 31/12/98 Duration of Project: 42 months Monday, 26 May 1997 SENATE 3677

Project Description: This project involves research into four distinct, yet interrelated, sub-topics: Direct microbial conversion of lignocellulosics to ethanol Optimisation of technology for the fer- mentation of hemicellulose hydroly- sates Development of improved microbial strains for fermentation of hemicellu- lose sugars simultaneous saccharification and fer- mentation—development and testing of novel organisms Financial Year: 94/95 Project Title: Solar ‘95 Conference Project Keywords: REN Contractor: Energy Research and Development Corporation RDC Commitment: $12,511 RDC Commitment allocated: 1995/1996 $12,511.20 Total Project Cost: $12,511 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 10/03/95 Project Completion Date: 15/12/95 Duration of Project: 9 months Project Description: Sponsorship of annual conference held by the Australian and New Zealand Solar Energy Society. Financial Year: 94/95 Project Title: Aquamax Innovations Project Keywords: EFF Contractor: Aquamax Pty Ltd RDC Commitment: $435,000 RDC Recommitment: $435,000 RDC Commitment allocated: $0 Total Project Cost: $870,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/06/95 ecommitment Date: 26/02/97 Duration of Project: Did not proceed Financial Year: 94/95 Project Title: A New Methodology for Tracing Oil Migration Pathways from Source to Reservoir Project Keywords: EFF Contractor: CSIRO Division of Petroleum Re- sources RDC Commitment: $450,000 3678 SENATE Monday, 26 May 1997

RDC Commitment allocated: 1995/1996 $287,500.00 996/1997 $162,500.00 Total Project Cost: $1,863,989 Date Approved: 24/03/95 Date Contract Signed: 07/08/95 Commencement Date: 01/07/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 24 months Project Description: The overall objective is to increase the rate of discovery of oil through analy- sis of oil bearing fluid inclusions from unsuccessful wells to determine wheth- er the borehole is on a migration path- way. These pathways will be mapped from source to accumulation to deter- mine if more than one oil charge has migrated through targeted horizons. If successful, the technique will be made available to the oil industry which could result in reduced costs and dam- age to the environment from a de- crease of the number of holes drilled during the exploration process. Financial Year: 94/95 Project Title: Direct Fuel Injection for the Automo- tive Four Stroke Engine Project Keywords: EFF Contractor: Orbital Engine Company (Australia) Pty Ltd RDC Commitment: $1,000,000 RDC Commitment allocated: 1995/1996 $575,154 996/1997 $424,846 Total Project Cost: $3,220,612 Date Approved: 24/03/95 Date Contract Signed: 13/09/95 Commencement Date: 01/05/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 26 Months Monday, 26 May 1997 SENATE 3679

Project Description: Orbital’s existing direct injection, two- stroke technology is being developed for four-stroke automotive applications to better meet the requirements of the passenger vehicle market. The focus of the project is to reduce fuel consumption of the urban test vehicle by 10 per cent whilst also achieving a reduction in nitrogen ox- ides, carbon monoxide and hydrocar- bon emissions. Exhaust emissions per- formance will then be further refined to meet the forthcoming low emission vehicle target levels mandated in the United States and Europe. Successful adoption of this technology by the motor industry would result in significant reduction in greenhouse gas emissions from passenger vehicles. There would also be benefits through improved driveability, reduced local exhaust emissions and therefore less smog, and reduced energy require- ments in the urban transport fleet, re- sulting in fuel cost savings for vehicle owners. Financial Year: 94/95 Project Title: Zinc Bromine Battery Demonstration Plant Project Keywords: EFF Contractor: ZBB Marketing Pty Ltd RDC Commitment: $958,250 RDC Commitment allocated: 1994/1995 $48,000.00 995/1996 $92,456.32 996/1997 $720,336.30 997/1998 $97,457.38 Total Project Cost: $1,916,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/04/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 26 months 3680 SENATE Monday, 26 May 1997

Project Description: A site in Melbourne is demonstrating a battery load levelling system. Load levelling is the management of the peaks and troughs in electricity de- mand and is facilitated by storing elec- tricity in batteries. The cost of conventional batteries pre- vents their use in most load levelling situations. Zinc bromine batteries have been chosen for this demonstration project because they are innovative and promise to be much cheaper than exist- ing batteries. Therefore, the overall economics of the battery load levelling systems could become more attractive. By demonstrating a real battery system integrated into the electricity supply network, the project will showcase the potential of this Australian owned technology. Expected benefits include increased efficiency in electricity sup- ply, and subsequent potential reduc- tions in greenhouse gas emissions. Financial Year: 94/95 Project Title: Performance Enhanced Flat Plate Solar Hot Water Systems Project Keywords: REN EFF Contractor: Solahart Industries Pty Ltd RDC Commitment: $310,000 RDC Commitment allocated: 1995/1996 $14,000.00 996/1997 $60,000.00 997/1998 $121,000.00 998/1999 $115,000.00 Total Project Cost: $717,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/11/95 Anticipated Project Completion Date: 30/04/99 Duration of Project: 42 months Monday, 26 May 1997 SENATE 3681

Project Description: This project is designed to achieve im- proved cost effectiveness and market acceptance of solar water heaters by enhancing their performance. It involves developing a low cost re- flector surface for use as a concentra- tor which can boost the winter per- formance of flat plate solar water heat- ers. The reflector technology will have the potential to increase the projected area of the solar collector in winter, without increasing collection rates in summer. To complement the reflector technol- ogy, an advanced, two-faced, flat plate solar collector will also be investigat- ed. Improving collector performance by incorporation devices that reduce internal air flow and reflection could reduce the negative impacts of high operating temperatures. This in turn could allow increased storage tempera- tures, and smaller, more heavily insu- lated tanks could be used to store a similar amount of energy than that available in current systems. Financial Year: 94/95 Project Title: Biomass Wastes to Energy Project Keywords: REN EFF Contractor: CMR Consultants (Aust) Pty Ltd RDC Commitment: $106,400 RDC Commitment allocated: 1995/1996 $106,400 Total Project Cost: $216,900 Date Approved: 12/05/95 Date Contract Signed: 28/05/95 Commencement Date: 01/06/95 Project Completion Date: 04/11/96 Duration of Project: 17 Months Project Description: The conversion of biomass to energy provides an ideal solution to the ani- mal and food processing industry’s waste problems. This project addressed the value of establishing commercial waste to energy facilities using a lo- cally developed anaerobic digester technology. It assesses the viability of producing energy and a quality organic fertiliser as a by-product from process- ing green and putrescible organic wastes. 3682 SENATE Monday, 26 May 1997

Financial Year: 94/95 Project Title: Advanced Glazing Systems—A Market Study Project Keywords: REN EFF Contractor: Lincolne Scott Consulting Engineers RDC Commitment: $9,500 RDC Commitment allocated: 1995/1996 $9,500.00 Total Project Cost: $9,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 13/06/95 Project Completion Date: 10/09/95 Duration of Project: 3 months Project Description: The project was an addendum to the Study on the Renovation of Commer- cial Buildings, but focussing on the knowledge within the construction and design industry of energy-efficient windows. Financial Year: 94/95 Project Title: Deniliquin Rice Hull Combustor Project Keywords: REN EFF Contractor: Ricegrowers’ Co-operative Limited RDC Commitment: $1,000,000 RDC Recommitment: $1,000,000 RDC Commitment allocated: $0 Total Project Cost: $4,530,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 31/07/95 ecommitment Date: 07/09/95 Duration of Project: Did not proceed Financial Year: 94/95 Project Title: Compressed Natural Gas Powered Trucks for Local Government and Short Haul Use (formerly Compressed Natural Gas Powered Garbage Com- pactor Truck) Project Keywords: EFF NCE Contractor: Waverley Council RDC Commitment: $300,617 RDC Commitment allocated: 1995/1996 $15,030.50 996/1997 $215,034.40 997/1998 $40,490.40 998/1999 $30,061.70 Total Project Cost: $920,700 Date Approved: 14/05/95 Date Contract Signed: 10/05/96 Commencement Date: 01/05/96 Anticipated Project Completion Date: 23/09/98 Monday, 26 May 1997 SENATE 3683

Duration of Project: 29 months Project Description: Diesel-powered, heavy vehicles oper- ating in urban environments impact on levels of local air and noise pollution. In this project, Waverley Council in Sydney, NSW, is to commission two spark ignited, compressed natural gas (CNG) powered trucks—a garbage compactor and a tipper. A 12-month operational trial of the vehicles will be conducted. The demonstration of the technology is designed to facilitate the adoption of the vehicles in Australia. CNG-powered trucks have quieter en- gines and cleaner emissions, providing a more attractive option for vehicles in localised environments. An extensive economic and environ- mental assessment will be undertaken to investigate both the short term, and medium to long term benefits and the implications of the adoption of the technology. This will include an analy- sis of the short haul private market, to- gether with the potential for govern- ment initiatives to encourage the use of the technology. The project is also funded by the New South Wales Department of Energy, and is supported by the South Sydney Regional Organisation of Councils (SSROC). SSROC membership covers a substantial portion of southern Syd- ney and its support offers significant potential for the immediate adoption of the technology, should the outcome of the pilot project prove to be favour- able. Financial Year: 95/96 Project Title: A Collaborative IEA SolarPACES Task II Project—Optical Temperature and Reflectivity Measurements on Hot Solar Reactor surfaces Project Keywords: REN EFF Contractor: Australian National University RDC Commitment: $5,330 RDC Commitment allocated: 1995/1996 $5,330.00 996/1997 $0 Total Project Cost: $17,880 Date Approved: 03/11/95 Date Contract Signed: 06/12/95 3684 SENATE Monday, 26 May 1997

Commencement Date: 01/12/95 Project Completion Date: 30/05/96 Duration of Project: 6 Months Project Description: A technique to optically measure the temperature, irradiance and reflectivity distributions on hot solar irradiated surfaces was developed. The technique, developed at the Paul Scherrer Institute in Switzerland, was applied to the Aus- tralian National University’s solar am- monia dissocation reactor in Canberra. The project was part of a multilateral, collaborative agreement under the International Energy Agency’s SolarPACES program. Financial Year: 95/96 Project Title: Omnipol—Recycling System Project Keywords: EFF Contractor: Ri-Industries RDC Commitment: $143,000 RDC Recommitment: $143,000 RDC Commitment allocated: $0 Total Project Cost: $438,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/07/95 Project Completion Date: 19/03/96 Duration of Project: Did not proceed Financial Year: 95/96 Project Title: Energy Metering in High Pressure Natural Gas Transmission Project Keywords: EFF Contractor: AlintaGas RDC Commitment: $84,895 RDC Commitment allocated: 1995/1996 $41,374.00 996/1997 $23,200.00 997/1998 $20,321.00 Total Project Cost: $267,895 Date Approved: 12/07/95 Date Contract Signed: 29/05/96 Commencement Date: 30/12/95 Anticipated Project Completion Date: 12/12/97 Duration of Project: 24 Months Monday, 26 May 1997 SENATE 3685

Project Description: New methods for measuring the flow of natural gas and its behaviour at different pressures, temperatures and compositions, will be developed in this project. This information is important for improving pipeline efficiencies in the Australian gas industry and will aid its competitiveness nationally and in overseas markets. Once the measure- ments have been gathered, they will assist in establishing parameters for de- termining gas measurement and char- acteristics over a wide range of condi- tions. The information will also be validated with leading European gas research organisations to ensure that international measurement procedures are optimised for Australian conditions. Financial Year: 95/96 Project Title: Pathways to Innovation in the ESI Study Project Keywords: EFF Contractor: ESAA RDC Commitment: $15,000 RDC Commitment allocated: 1995/1996 $3,844.48 996/1997 $11,155.52 Total Project Cost: $30,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 07/07/95 Project Completion Date: 25/08/95 Duration of Project: 2 Months Project Description: The study complements the scoping paper, Innovation in the Australian Electricity Supply Industry, by iden- tifying which technology development areas the energy market and the elec- tricity business can support to offer the best environmental developments for our customers contributing to future growth and profit. Financial Year: 95/96 Project Title: Vehicle Integrity Testing of Natural Gas Vehicle Cylinders by Acoustic Emission Techniques Project Keywords: EFF Contractor: Metacoustics Pty Ltd RDC Commitment: $82,571 RDC Commitment allocated: 1996/1997 $82,571.00 Total Project Cost: $594,200 Date Approved: 20/07/95 3686 SENATE Monday, 26 May 1997

Date Contract Signed: 13/12/96 Commencement Date: 01/03/96 Anticipated Project Completion Date: 01/06/98 Duration of Project: 27 Months Project Description: This project is developing testing pro- cedures for natural gas vehicle cylin- ders, using acoustic emission tech- niques. The tests will be designed to locate and analyse specific defects, as well as conducting total structural ev- aluations of metal and composite gas cylinders. Financial Year: 95/96 Project Title: Energy Efficient Production of Syn- thetic Rutile Project Keywords: EFF Contractor: Westralian Sands Limited RDC Commitment: $150,000 RDC Reommitment: $150,000 RDC Commitment allocated: $0 Total PProject Cost: $650,000 Date Approved: 20/07/95 Date Contract Signed: 00/00/00 Commencement Date: 01/10/95 Project Completion Date: 19/02/96 Duration of Project: Did not proceed Financial Year: 95/96 Project Title: Low Cost 5kW Windmill, Induction Generator and Power Point Tracking Transformer Project Project Keywords: REN EFF Contractor: Biomass Energy Services and Technol- ogy Pty Ltd RDC Commitment: $156,856 RDC Commitment allocated: 1994/1995 $7,842.00 995/1996 $100,000.00 996/1997 $49,014.00 Total Project Cost: $392,141 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/09/95 Anticipated Project Completion Date: 01/03/97 Duration of Project: 18 Months Monday, 26 May 1997 SENATE 3687

Project Description: To develop a windmill that produces 5 kW at wind speeds of approx. 8 m/sec that is at least 35% cheaper than those commercially available that can oper- ate at wind speeds ranging from 2 to 20 metres/sec, use the high perform- ance blades developed by Newcastle University use cheap and readily avail- able mechanical and electric compo- nents does not require batteries at the wind site or expensive electronic aux- iliary equipment can transmit power over relatively long distances at high efficiencies and low cost. Financial Year: 95/96 Project Title: Recovery and Recycle of Acid Hy- drolysates using Ion Exclusion Chromatography Project Keywords: NCE Contractor: Apace Research Ltd RDC Commitment: $189,600 RDC Commitment allocated: 1995/1996 $151,680.00 996/1997 $37,920.00 Total Project Cost: $256,775 Date Approved: 27/07/95 Date Contract Signed: 00/00/00 Commencement Date: 04/09/95 Project Completion Date: 07/10/96 Duration of Project: 13 Months Project Description: This project is part of a larger project to develop an economically viable way of producing fuels from biomass and the wastes that result from biomass growth, processing or disposal. In this case, lignocellulose (the content of woody cells) which can be obtained from crop and forest wastes, is used to produce two fuels, ethanol and lignin. Ethanol is an alternative fuel for trans- port, and lignin, a co-product of the production process, is a renewable fuel for generating steam and electricity. The ethanol is made by fermenting sugars obtained from lignocellulose. However, the best way to derive the sugars requires a lot of acid, which currently makes the process uneconom- ic. This project aims to design, con- struct and test equipment that can eco- nomically separate and recycle the acid. 3688 SENATE Monday, 26 May 1997

Financial Year: 95/96 Project Title: Optimisation of Ethanol and Ignition Improver Content of Diesohol to Re- duce Diesel Engine Exhaust Emissions Project Keywords: NCE Contractor: Apace Research Ltd RDC Commitment: $359,000 RDC Commitment allocated: 1995/1996 $209,790.00 996/1997 $134,210.00 997/1998 $15,000.00 Total Project Cost: $372,600 Date Approved: 27/07/95 Date Contract Signed: 23/11/95 Commencement Date: 01/12/95 Anticipated Project Completion Date: 31/12/97 Duration of Project: 25 Months Project Description: Replacing diesel with diesohol in un- modified diesel engines has the ability to reduce significantly the levels of some exhaust emissions without affect- ing engine performance. However fur- ther work is required to reduce these emissions—especially the production of hydrocarbons and carbon monoxide, whose levels depend on the particular engine, its speed, the fuel injection system and the load. Preliminary research has shown that adding ignition improver can lower the levels of emissions produced and also allows an increase in the amount of ethanol in the fuel mix. This project will concentrate on optimising and maximising the level of ethanol sub- stitution in unmodified diesel engines. Financial Year: 95/96 Project Title: International Energy Foundation Project Keywords: REN EFF Contractor: Energy Research and Development Corporation RDC Commitment: $10,000 RDC Commitment allocated: 1995/1996 $30.00 997/1998 $9,970.00 Total Project Cost: $10,000 Date Approved: 26/10/95 Date Contract Signed: 00/00/00 Commencement Date: 01/10/95 Anticipated Project Completion Date: 31/12/98 Duration of Project: 40 Months Monday, 26 May 1997 SENATE 3689

Project Description: ERDC is funding the Australian head- quarters for the International Energy Foundation. A key task involves dis- seminating information about energy related activities in developing count- ries to Australian audiences. Financial Year: 95/96 Project Title: Australian Participation in IEA’s Wind Turbine Systems Program Project Keywords: REN Contractor: Western Power Corporation RDC Commitment: $0 RDC Commitment allocated: $0 Total Project Cost: $0 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 20/07/95 Project Completion Date: 31/12/99 Duration of Project: 58 Months Project Description: Western Power Corporation facilitated the establishment of a local consortium to enable Australia, via ERDC, to be- come a signatory to the IEA Wind Energy Implementing Agreement in November 1995. Wind power is an im- portant renewable energy source for generating electricity. However, in comparison to Europe and US there is little operational experience in Aus- tralia, apart from Western Power’s use of wind power to feed into diesel grids. Australia’s invovlement will pro- vide regular opportunities for its ex- perts on wind power manufacturing and research to share experiences with their international counterparts. Financial Year: 95/96 Project Title: Sponsorship of the MBA Annual Din- ner Project Keywords: EFF Contractor: Master Builders Australia RDC Commitment: $10,000 RDC Commitment allocated: 1995/1996 $5,000.00 996/1997 $5,000.00 Total Project Cost: $10,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 22/08/95 Project Completion Date: 31/12/96 Duration of Project: 16 Months 3690 SENATE Monday, 26 May 1997

Project Description: Sponsorship of MBA dinner, which allows ERDC to gain a high profile with this very important audience for integrating emerging building related energy technologies. Financial Year: 95/96 Project Title: Strategic PV Business Opportunities Conference Project Keywords: REN Contractor: Energy Research and Development Corporation RDC Commitment: $10,000 RDC Commitment allocated: 1995/1996 $10,000.00 Total Project Cost: $10,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/09/95 Project Completion Date: 31/10/95 Duration of Project: 1 week Project Description: ERDC’s Managing Director was an invited guest to this conference in US, to present a paper and facilitate discus- sions on latest PV activities both in Australia and internationally. Financial Year: 95/96 Project Title: Innovative Air Conditioning System using Gas Heating and Two Pass Ev- aporative Cooling with Full Fresh Air Project Keywords: EFF Contractor: Thermal Research Pty Ltd RDC Commitment: $130,000 RDC Commitment allocated: 1995/1996 $94,000.00 996/1997 $32,000.00 997/1998 $4,000.00 Total Project Cost: $797,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/04/96 Anticipated Project Completion Date: 31/10/97 Duration of Project: 18 Months Monday, 26 May 1997 SENATE 3691

Project Description: Air conditioning systems have tradi- tionally been run on electricity. This project is in the final stages of devel- oping and trialling a three-in-one fresh air, heating, cooling and ventilation system. The heating component will be pow- ered by natural gas; the cooling system will be water assisted; and both the cooling and ventilation systems will operate without a compressor and the total system is aided by an efficient, counterflow heat exchanger. This mix will provide an estimated 80% reduc- tion in normal running costs on cool- ing and up to 50% on heating. Potential benefits include: reduction in chemical irritants present in modern buildings, due to the complete and frequent fresh air changes moving through the system; and a reduction in greenhouse gas emissions, achieved by diversifying the energy supply option. If successful, the project will be de- veloping a unique product on the inter- national market, made completely from Australian content and technology. Financial Year: 95/96 Project Title: Development of CleanEnergy Invest- ments initiative Project Keywords: REN EFF Contractor: Various RDC Commitment: $835,000 RDC Recommitment: $281,041 RDC Commitment allocated: 1995/1996 $452,123.00 996/1997 $101,836.00 Total Project Cost: $835,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 08/09/95 Project Completion Date: 19/02/97 Duration of Project: 18 Months Project Description: The CleanEnergy program investigated and developed a number of concepts to encourage the use of private (not pub- lic) funds to encourage and facilitate the growth of Australia’s renewable energy and energy efficiency industries and to reduce Australia’s greenhouse gas emissions. 3692 SENATE Monday, 26 May 1997

Financial Year: 95/96 Project Title: Development of Technology for the Thermochemical Storage and Transport of Solar Energy using CO2/CH4 Re- forming Project Keywords: REN EFF Contractor: Pacific Power and CSIRO RDC Commitment: $450,000 RDC Commitment allocated: 1995/1996 $103,800.00 996/1997 $346,200.00 Total Project Cost: $791,684 Date Approved: 01/11/95 Date Contract Signed: 00/00/00 Commencement Date: 01/01/96 Project Completion Date: 01/03/97 Duration of Project: 14 Months Project Description: Phase one in the development of an effective technology for the storage and transfer of solar energy for the large scale, around the clock produc- tion of electricity and process heat. This project addressed the main results obtained during the development of catalysts for both reforming and methanation, the optimisation of fluidised-bed reactors, and the identi- fication of concepts for linking the re- formed with solar dish collectors and central tower receivers. It also assessed potential applications in Australia for solar driven reforming technology. Financial Year: 95/96 Project Title: Advanced Well Planning and Risk Analysis through Computer Aided Drilling Design (CADD). Project Keywords: EFF Contractor: CSIRO Division of Petroleum Re- sources RDC Commitment: $600,000 RDC Commitment allocated: 1995/1996 $30,000.00 996/1997 $270,000.00 997/1998 $100,000.00 998/1999 $200,000.00 Total Project Cost: $3,609,146 Date Approved: 08/09/95 Date Contract Signed: 15/02/96 Commencement Date: 01/01/96 Anticipated Project Completion Date: 31/12/98 Duration of Project: 36 Months Monday, 26 May 1997 SENATE 3693

Project Description: This project is building and developing a software package which will result in a computer aided, drilling design sys- tem. Consultations with potential users from industry will play a key role in its development. It aims to capture existing knowledge about well design and construction so that the relevant technical, organisa- tional and economic issues can be ana- lysed and incorporated in the planning stage, providing opportunities for in- creased efficiencies in the industry. Financial Year: 95/96 Project Title: Piggyback Controls Project Keywords: EFF Contractor: Boundary Technologies Pty Ltd RDC Commitment: $150,000 RDC Commitment allocated: 995/1996 $80,000.00 996/1997 $70,000.00 Total Project Cost: $673,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/12/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 17 Months Project Description: The load on electricity distribution systems needs to be managed to pro- vide a cost-effective, reliable service. This project is developing a low cost and simple control system that would be offered to consumers by utilities. The system receives instructions from the electricity utility to allow a short- term interruption of supply to indi- vidual electrical loads. Financial Year: 95/96 Project Title: Development of Task—Photovoltaics in the Built Environment—IEA Imple- menting Agreement Project Keywords: REN EFF Contractor: Energy Research and Development Corporation RDC Commitment: $25,000 RDC Commitment allocated: 1995/1996 $13,381.31 996/1997 $11,618.69 Total Project Cost: $25,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 21/08/95 3694 SENATE Monday, 26 May 1997

Project Completion Date: 27/06/96 Duration of Project: 10 Months Project Description: This project will allow Australia to participate in the IEA Photovoltaic Power Systems new Task 7 program; attend the meetings of the Task Ex- perts Panel and report on Australian advancements in the interest of the local participants and industry. Financial Year: 95/96 Project Title: Viability of Accessing EA Technology Limited Reports for Australia Project Keywords: EFF Contractor: Electricity Supply Association of Aus- tralia Limited RDC Commitment: $3,000 RDC Commitment allocated: 1995/1996 $3,000.00 Total Project Cost: $6,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 02/11/95 Project Completion Date: 30/11/95 Duration of Project: 1 month Project Description: In conjunction with ESAA, ERDC commissioned a Report on EA Tech- nology material and its R&D program to examine future development oppor- tunities for Australia Financial Year: 95/96 Project Title: Lifetime Issues in Switchable Glazing Project Keywords: EFF Contractor: University of Technology Sydney RDC Commitment: $148,784 RDC Commitment allocated: 1995/1996 $126,466.00 996/1997 $22,318.00 Total Project Cost: $298,188 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/12/95 Project Completion Date: 31/07/96 Duration of Project: 8 Months Monday, 26 May 1997 SENATE 3695

Project Description: Windows and the glazing processes used in the manufacture of windows have great potential to reduce energy consumption in domestic and commer- cial buildings. This project is developing switchable glazing systems, which allow the con- trol of light and heat through building windows and skylights by changing the colour of the window, and therefore changing the amount of energy trans- mitted through the window. The control will be electronic and can integrate simply with a building energy management system to optimise the energy saving potential of the win- dows. The project is also addressing the potential life of the glazing systems by testing various control methods and the reliability of the materials used, under extended operation. Financial Year: 95/96 Project Title: Demonstration of an energy efficient commercial building incorporating sus- tainable development principles Project Keywords: REN EFF Contractor: Fletcher Construction Australia Ltd RDC Commitment: $824,090 RDC Recommitment: $653,565 RDC Commitment allocated: 1995/1996 $105,525.00 996/1997 $65,000.00 Total Project Cost: $7,222,907 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 23/11/95 Anticipated Project Completion Date: 30/06/97 Duration of Project: 20 Months Project Description: This project is addressing the issues concerned with the design, documenta- tion and construction of a demonstra- tion energy efficient building, incorpo- rating sustainable development goals. Financial Year: 95/96 Project Title: Australian Participation in IEA Build- ing and Community Systems Program’s Annex 31—Energy Related Environmental Impact of Buildings Project Keywords: EFF Contractor: Royal Melbourne Institute of Technol- ogy 3696 SENATE Monday, 26 May 1997

RDC Commitment: $102,000 RDC Commitment allocated: 1995/1996 $16,000.00 996/1997 $33,000.00 997/1998 $35,000.00 998/1999 $18,000.00 Total Project Cost: $204,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/12/95 Anticipated Project Completion Date: 30/06/98 Duration of Project: 31 Months Monday, 26 May 1997 SENATE 3697

Project Description: Buildings are significant consumers of energy, mainly as electricity for light- ing, power, heating and cooling pur- poses, etc. But there are also energy- related impacts which buildings have on their environments. Researchers at RMIT University and elsewhere are investigating the energy impacts of manufacturing, transporting, assem- bling, demolishing and recycling build- ing materials; and the emission of harmful gases into the atmosphere released by these processes. ERDC, which manages the federal government’s direct investment in energy innovation, plays a leading role in sponsoring such research in Austral- ia. If these environmental impacts are to be minimised, then designers, construc- tors, building occupiers, and the energy industries themselves, must be in- formed about the research. This project will establish effective methods for gathering and disseminating informa- tion about research projects and activi- ties dealing with the energy-related environmental impacts of buildings. this will be done nationally for Aus- tralia and, through the International Energy Agency, on a world-wide basis. The Royal Melbourne Institute of Technology is Australia’s largest dual sector university, serving 41,900 stu- dents across many fields and a wide range of other clients from numerous industries, professions and communi- ties. In its mission and activities it strongly supports the goals of the Aus- tralian higher education system. RMIT is located on three campuses in Mel- bourne and numerous sites overseas. The challenges it has set itself are im- mense. It has given itself the task of excelling in both the Higher Education and TAFE sectors, with the aim of bringing them into the closest possible synergy to achieve its goals in educa- tion and training, research and com- munity service. 3698 SENATE Monday, 26 May 1997

Financial Year: 95/96 Project Title: The Development and Commerciali- sation of a Process for Energy Recov- ery from Sewage Treatment Plant Sludges. Project Keywords: REN EFF Contractor: Environmental Solutions International Pty Ltd RDC Commitment: $1,200,000 RDC Commitment allocated: 1996/1997 $205,000.00 997/1998 $720,000.00 998/1999 $275,000.00 Total Project Cost: $19,499,216 Date Approved: 14/12/95 Date Contract Signed: 23/07/96 Commencement Date: 01/10/96 Anticipated Project Completion Date: 31/03/99 Duration of Project: 30 Months Project Description: There is an increasing demand on municipalities to provide more effi- cient, safer, and more environmentally friendly solutions for managing sewage sludge waste. Concerns about current means of sludge dispos- al—incineration, landfill, ocean dump- ing and land application—mean that alternative processes need to be devel- oped; processes which are energy effi- cient, environmentally acceptable and cost effective. The focus of this project is to design, construct, commission and operate the world’s first commercial scale Enersludge conversion reactor in an integrated sludge processing plant. The Enersludge process converts sewage sludge into both reusable liquid and solid fuels, part of which is then used to produce the hot gases and electricity necessary to run the plant. Excess energy, in the form of oil or electricity will also be available for sale. Successful demonstration and commer- cialisation of this process will provide reduced energy usage, and therefore re- duced energy costs, as well as develop- ing a system which could be marketed internationally. Financial Year: 95/96 Project Title: CRC For Renewable Energy and Asso- ciated Greenhouse Gas Monday, 26 May 1997 SENATE 3699

batement Technologies Project Keywords: REN EFF Contractor: Australian CRC for Renewable Energy Limited RDC Commitment: $5,350,000 RDC Commitment allocated: 1996/1997 $375,000.00 997/1998 $750,000.00 998/1999 $750,000.00 999/2000 $750,000.00 000/2001 $750,000.00 001/2002 $750,000.00 002/2003 $750,000.00 003/2004 $475,000.00 Total Project Cost: $74,707,000 Date Approved: 22/03/96 Date Contract Signed: 08/04/97 Commencement Date: 01/07/96 Anticipated Project Completion Date: 30/06/2003 Duration of Project: 84 Months 3700 SENATE Monday, 26 May 1997

Project Description: The Australian Cooperative Research Centre (CRC) for Renewable Energy (known as ACRE Ltd) is a non-profit management company formed to bring together leading Australian researchers, companies and utilities to provide innovative renewable energy electricity systems for remote area, end of grid and future urban infrastructure markets. ACRE’s objectives are to: conduct strategic research in power generation, storage, power condition- ing, efficiency and systems integration; support demonstrations of systems which meet defined price targets to displace fossil fuels and reduce green- house gas emissions; and educate a resource of trained practi- tioners. ACRE has eight integrated programs to meet these objectives. The five R&D programs cover power generation, energy efficiency, energy storage, power conditioning and systems inte- gration. Strategic planning and market assessment for renewables is covered by Program 6. Education and training, crucial for the successful application and acceptance of any innovative tech- nological systems, comprise Program 7. The Demonstration Pro- gram—Program 8—covers a range of near commercial projects in a wide variety of system applications. Financial Year: 95/96 Project Title: Development of Economical Thin Film Photovoltaic Device (Linda Koschier) Project Keywords: REN EFF Contractor: University of New South Wales RDC Commitment: $66,000 RDC Commitment allocated: 1995/1996 $13,500.00 996/1997 $21,000.00 997/1998 $31,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 30/06/96 Anticipated Project Completion Date: 30/06/99 Duration of Project: 36 Months Project Description: ERDC Postgraduate Award recipient Monday, 26 May 1997 SENATE 3701

Financial Year: 95/96 Project Title: Design of Solar Thermal Electric Pow- er Generation (Saad Odeh) Project Keywords: REN EFF Contractor: University of New South Wales RDC Commitment: $66,000 RDC Commitment allocated: 1995/1996 $13,500.00 996/1997 $21,000.00 997/1998 $21,000.00 998/1999 $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 02/01/96 Anticipated Project Completion Date: 02/01/99 Duration of Project: 36 Months Project Description: ERDC Postgraduate Award recipient Financial Year: 95/96 Project Title: The Simultaneous Decomposition of Nitric Oxide and Oxidation of Unburnt Hydrocarbons Over Zeolite Supported Catalysts (Kylie Headon) Project Keywords: EFF Contractor: University of Adelaide RDC Commitment: $66,000 RDC Commitment allocated: 1995/1996 $13,500.00 996/1997 $21,000.00 997/1998 $21,000.00 998/1999 $10,500.00 Total Project Cost: $66,000 Date Approved: 14/12/95 Date Contract Signed: 27/02/96 Commencement Date: 05/02/96 Anticipated Project Completion Date: 05/02/99 Duration of Project: 36 Months Project Description: ERDC Postgraduate Award recipient Financial Year: 95/96 Project Title: The Design and Synthesis of Multi- Electron Transfer Reagents (Lathe Jones) Project Keywords: EFF Contractor: University of Queensland RDC Commitment: $66,000 RDC Commitment allocated: 1995/1996 $13,500.00 996/1997 $21,000.00 997/1998 $21,000.00 998/1999 $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 3702 SENATE Monday, 26 May 1997

Commencement Date: 15/01/96 Anticipated Project Completion Date: 15/01/99 Duration of Project: 36 Months Project Description: ERDC Postgraduate Award recipient Financial Year: 95/96 Project Title: Nonlinear Voltage Control of a Man- aged DC Power Reticulation System (Anthony Morton) Project Keywords: EFF Contractor: University of Melbourne RDC Commitment: $66,000 RDC Commitment allocated: 1995/1996 $13,500.00 996/1997 $21,000.00 997/1998 $21,000.00 urplus $10,500.00 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/96 Anticipated Project Completion Date: 01/03/99 Duration of Project: 36 Months Project Description: ERDC Postgraduate Award recipient Financial Year: 95/96 Project Title: Olympics Special Events Program Project Keywords: EFF Contractor: Energy Research and Development Corporation RDC Commitment: $75,000 RDC Commitment allocated: 1995/1996 $1,134.13 996/1997 $5,000.00 997/1998 $30,000.00 998/1999 $10,000.00 000/2001 $28,865.87 Total Project Cost: $75,000 Date Approved: 15/02/96 Date Contract Signed: 00/00/00 Commencement Date: 01/01/96 Project Completion Date: 01/08/2000 Duration of Project: 56 Months Project Description: ERDC has committed funds over three years to assist the development of a number of innovation projects that will develop products on behalf of the Syd- ney Organising Committee for the Olympic Games. Financial Year: 95/96 Project Title: Solar ‘96 Conference Project Keywords: REN Contractor: Energy Research and Development Corporation Monday, 26 May 1997 SENATE 3703

RDC Commitment: $23,000 RDC Recommitment: $7386.99 RDC Commitment allocated: 1995/1996 $10,000.00 996/1997 $5613.01 Total Project Cost: $23,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 22/10/96 Project Completion Date: 10/04/97 Duration of Project: 6 Months Project Description: Sponsorship of the Australian and New Zealand Solar Energy Society annual conference. Financial Year: 95/96 Project Title: Optimising the Thermal Efficiency of Domestic Solid Fuel Burning Applicances Project Keywords: EFF Contractor: HRL Technology Pty Ltd RDC Commitment: $33,000 RDC Recommitment: $33,000 RDC Commitment allocated: $0 Total Project Cost: $66,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/96 ecommitment Date: 31/12/96 Duration of Project: Did not proceed Financial Year: 95/96 Project Title: Manufacture of Heat Pipe Exchangers for Industrial Waste Heat Recovery Applications Project Keywords: EFF Contractor: Royal Melbourne Institute of Technol- ogy RDC Commitment: $275,650 RDC Commitment allocated: 1995/1996 $101,000.00 996/1997 $110,000.00 997/1998 $64,650.00 Total Project Cost: $810,480 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 15/03/96 Anticipated Project Completion Date: 28/02/98 Duration of Project: 23 Months 3704 SENATE Monday, 26 May 1997

Project Description: The Manufacture of Heat Pipe Heat Exchanger for Industrial Waste Heat Recovery Applications is a collabor- ative project between the Royal Mel- bourne Institute of Technology, Butter- cup Bakeries, Apple Park Ltd (trading as Crossle McKey) and the Energy Re- search and Development Corporation (ERDC). The project reflects industrial needs for heat recovery and focuses on methods for manufacturing heat pipes heat ex- changers for medium temperatures (100 to 700 degrees C). The main objectives of the project are: to develop and assess the capabilities of a range of designs for efficient and cost-effective split heat pipe heat ex- changers which can be used for heat recovery applications with exhause temperatures between 100 C and 700 degrees C in industries which use boilers and ovens (such as food pro- ducts, electricity generation, metal and plastic products) in Australia and over- seas; to asses the market potential in Australia and overseas for this class of heat pipe heat exchangers to develop cost-efficient methods for the manu- facture of the heat exchangers to create a base in Australia for the manufacture and marketing of this product for do- mestic and export markets Financial Year: 95/96 Project Title: Development of the Tropical Buildings Innovation Program Project Keywords: EFF Contractor: Energy Research and Development Corporation RDC Commitment: $300,000 RDC Commitment allocated: 1995/1996 $5,382.08 996/1997 $233,584.29 997/1998 $61,033.63 Total Project Cost: $300,000 Date Approved: 00/00/00 Date Contract Signed: 16/09/96 Commencement Date: 07/03/96 Anticipated Project Completion Date: 31/07/97 Duration of Project: 17 Months Monday, 26 May 1997 SENATE 3705

Project Description: Australia’s tropical regions are ex- panding rapidly and are expected to accommodate increasing populations in the future. At the moment, a signifi- cant number of buildings in tropical regions are inappropriately designed, and are not built to suit the climatic conditions, causing them to be energy inefficient. Reticulation of services and infrastructure to these regions is capital intensive, increasing the overall nega- tive impact on the environment. National research into energy efficient tropical buildings is currently unco- ordinated, lacks focus and is inad- equately linked to wider community, business or user needs. This study will: identify the status of tropical research across a broad spectrum of partici- pants; explore innovation options; and consult with government and private sector researchers, designers, regula- tors, financiers, developers, builders and users of tropical buildings. The report will provide recommenda- tions on targets and investment strat- egies so that funding decisions for future innovation projects can be made on the most recent and comprehensive data. Financial Year: 95/96 Project Title: Evaluation of Small HydroPower Pros- pects in Australia Project Keywords: REN Contractor: Energy Services International RDC Commitment: $126,500 RDC Commitment allocated: 1995/1996 $8,328.54 996/1997 $100,000.00 997/1998 $18,171.46 Total Project Cost: $253,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/05/96 Anticipated Project Completion Date: 30/04/97 Duration of Project: 12 Months 3706 SENATE Monday, 26 May 1997

Project Description: This project is designed to identify five potential small hydropower projects which are shown by detailed feasibility studies to be economically viable and capable of being developed from finan- cial, engineering and environmental veiwpoints, and to develop a process to initiate these projects. Financial Year: 95/96 Project Title: Australian Concept Car Project Keywords: EFF Contractor: Australian Automotive Technology Centre RDC Commitment: $1,535,000 RDC Commitment allocated: 1996/1997 $250,000.00 997/1998 $1,100,000.00 998/1999 $150,000.00 999/2000 $35,000.00 Total Project Cost: $18,965,800 Date Approved: 22/03/96 Date Contract Signed: 18/12/96 Commencement Date: 01/07/96 Anticipated Project Completion Date: 30/11/98 Duration of Project: 29 Months Monday, 26 May 1997 SENATE 3707

Project Description: Australian manufacturers produce a wide range of energy efficient systems and technologies that are used in automo- tive component manufacturing and tool- ing industries. The aim of this project is to produce a con- cept car to showcase this Australian industry’s capability, primarily to the Asian region, and to demonstrate the sector’s ability to produce world-class pro- ducts. The project’s cradle to grave approach will address means of reducing embod- ied energy costs in the production of raw materials and components’ manufac- ture. It will also investigate the level of energy efficiency gains achieved by incorpo- rating light-weight materials into the body of the vehicle. If a vehicle is light- er, it uses less petrol and therefore pro- vides reduced emissions, increased efficien- cies, and lower running costs to the con- sumer. Australia’s leading automotive compo- nent manufacturing companies are in- volved in this unique project which is support- ed by Federal and State Gov- ernments. Financial Year: 95/96 Project Title: Development, Field Testing and Com- mercialisation of a Biomass Gasifier Project Keywords: EFF Contractor: Energy Developments Limited RDC Commitment: $1,330,480 RDC Commitment allocated: 1996/1997 $745,000.00 997/1998 $452,432.00 998/1999 $133,048.00 Total Project Cost: $4,031,759 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/96 Anticipated Project Completion Date: 01/06/98 Duration of Project: 27 Months 3708 SENATE Monday, 26 May 1997

Project Description: As part of the need to develop alterna- tive fuel supply options, this project is commercialising a biomass gasification and power generation system, which was initially developed by Biomass Energy Services and Technology Pty Ltd. The project encompasses the develop- ment and field testing of a system fed by four gasifier units in parallel. The process will involve gasifying agricul- tural waste to produce a combustible gas, which in turn will be used to fuel a generator set. These gasifiers can be used in range of applications, including in the cotton industry and at saw mills. The project has the potential to offer significant environmental benefits by providing an alternative use for agri- cultural waste residues, as well as pro- viding commercial benefits in regional areas by developing industries based around these opportunities. The resultant gasification system will be suitable for marketing both on a na- tional and international basis. Financial Year: 95/96 Project Title: Next Generation Power Conversion Project Keywords: REN EFF Contractor: PowerSearch Ltd RDC Commitment: $750,000 RDC Commitment allocated: 1995/1996 $65,000.00 996/1997 $236,000.00 997/1998 $288,000.00 998/1999 $161,000.00 Total Project Cost: $1,800,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/04/96 Anticipated Project Completion Date: 31/10/98 Duration of Project: 31 Months Monday, 26 May 1997 SENATE 3709

Project Description: In its simplest form, power condition- ing is the electrical or electronic con- version of electrical energy from the form in which it is created or supplied, to another form more suitable to the application of the energy. For example, this is especially important when renewably based energy sources gener- ate low voltage power, but the user de- mands a much higher voltage. This project aims to produce the next generation of "universal" power condi- tioning equipment for use in electricity grids and in standalone/hybrid photo- voltaic applications. New products that result will have sig- nificantly reduced manufacturing costs and will incorporate new, international electromagnetic radiation standards for power electronic equipment. This new technology will have im- mediate application in industrial, utility and alternative energy markets for managing electricity loads both in gen- eration and distribution environments, as well as in converting power. Financial Year: 95/96 Project Title: Development of a Commercial Energy Efficient Export Hay Production Sys- tem Project Keywords: REN EFF Contractor: Solartec Australia Pty Ltd RDC Commitment: $300,000 RDC Commitment allocated: 1995/1996 $65,000.00 996/1997 $235,000.00 Total Project Cost: $680,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/04/96 Anticipated Project Completion Date: 30/06/97 Duration of Project: 15 Months 3710 SENATE Monday, 26 May 1997

Project Description: The export potential for systems to artificially dry hay for use as agricultu- ral fodder is significant. Energy costs, handling and quality control problems have combined to frustrate previous attempts to use artificial air drying methods for high quality hay produc- tion. This project is developing a solar col- lector designed to provide direct air heating, sourced from the sun during the day. Using a heat exchanger, heat generated by the sun and stored in water will be released to supply air heating for drying overnight. Using solar energy to dry hay in this innovative manner offers substantial cost savings in comparison to existing systems and will improve the quality of the final export product. Financial Year: 95/96 Project Title: New Environmental Design Methodologies to Assist Manufacturers Meet Competitive Demands for Envi- ronmental Quality Project Keywords: EFF Contractor: Royal Melbourne Institute of Technol- ogy RDC Commitment: $132,000 RDC Commitment allocated: 1996/1997 $.00 997/1998 $96,000.00 998/1999 $36,000.00 Total Project Cost: $300,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/08/96 Project Completion Date: 31/12/97 Duration of Project: 17 Months Project Description: Contract under negotiation Financial Year: 95/96 Project Title: National Energy and Environmental Seminars for Architects and Building Technologists Project Keywords: EFF Contractor: Royal Australian Institute of Architects RDC Commitment: $27,500 RDC Commitment allocated: 1996/1997 $27,500.00 Total Project Cost: $52,500 Date Approved: 10/05/96 Date Contract Signed: 11/09/96 Commencement Date: 18/09/96 Monday, 26 May 1997 SENATE 3711

Anticipated Project Completion Date: 20/02/97 Duration of Project: 5 Months Project Description: High levels of energy are used in the construction of buildings, and in their subsequent operation. Therefore, there are significant benefits in educating architects and building technologists about recent energy and environmental developments, to help reduce energy consumption in buildings’ construction and use. A previous ERDC investment with The Royal Australian Institute of Architects resulted in the successful Environment Design Guide. The Guide provides regularly updated educational literature for building professionals. Following on from the Guide, the first phase of this project will determine what infrastructure is necessary to run a series of national energy and envi- ronment seminars. In the seminars, ex- perts would present current information directly to architects and building tech- nologists around Australia. The seminars would offer an informal, interactive forum for building profes- sionals to learn and share knowledge and experience on energy and environ- mental matters, allowing them to en- hance the competitiveness of their de- sign service activities. Financial Year: 95/96 Project Title: High Power Modular Grid Connected Inverter Project Keywords: EFF Contractor: Powercor Australia Ltd RDC Commitment: $150,500 RDC Recommitment: $150,500 RDC Commitment allocated: $0 Total Project Cost: $351,500 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/03/96 ecommitment Date: 27/07/97 Duration of Project: Did not proceed Financial Year: 95/96 Project Title: Solar Water Pumping—System De- velopment for Cost Reduction Project Keywords: REN EFF NCE Contractor: Suntron Power Products Pty Ltd 3712 SENATE Monday, 26 May 1997

RDC Commitment: $165,220 RDC Commitment allocated: 1996/1997 $165,220.00 Total Project Cost: $382,578 Date Approved: 23/05/96 Date Contract Signed: 07/08/96 Commencement Date: 31/05/96 Anticipated Project Completion Date: 30/04/98 Duration of Project: 11 Months Project Description: Significant opportunties exist to use re- newable energy supply systems in remote locations and in developing countries. Suntron Power Products, with ERDC as a long-term investment partner, has successfully completed the develop- ment of the Solar DriveTM technol- ogy. Solar DriveTM is designed to power remote area water pumps using solar, wind and AC power inputs, thus ensuring efficient and reliable water supplies. This project—the thrid stage in the de- velopment process—is to improve the cost of the total system, which com- prises the solar array, a tracking sys- tem, the Solar DriveTM and the pump. By focusing on the total system, the goals are to increase manufacturing capability and scope, for future expan- sion into export markets. Potential benefits will include improv- ing the ability of the company to com- pete internationally, to maintain leader- ship in this niche market, and develop- ment renewable energy supply options. Financial Year: 95/96 Project Title: Gas Industry Innovation and Research Study Project Keywords: EFF Contractor: Australian Gas Association RDC Commitment: $68,000 RDC Commitment allocated: 1996/1997 $68,000 Total Project Cost: $193,000 Date Approved: 11/06/96 Date Contract Signed: 05/11/96 Commencement Date: 01/08/96 Anticipated Project Completion Date: 30/06/97 Duration of Project: 11 Months Monday, 26 May 1997 SENATE 3713

Project Description: To support the gas industry and ensure its ongoing viability, the Australian Gas Association (AGA) and the Ener- gy Research and Development Corpo- ration (ERDC) have jointly invested in a study which will establish the most effective way of identifying and pro- moting innovation, research, develop- ment and adoption of modern technol- ogy for the gas distribution and user market area. As a major energy source, natural gas currently supplies approximately 17 percent of Australia’s primary energy needs—meeting a third of industrial energy requirements and approximately one quarter of the energy needs of the commercial and household sectors. According to the AGA’s strategic plan, by the Year 2000, natural gas will pro- vide at least 20 percent of Australia’s primary energy requirements and will be Australia’s preferred fuel for a clean, safe, economically secure energy future. This vision is an ambitious one, and will only be achievable through co- operative industry-wide action. Further, the growth which is sought by the in- dustry will only be achieved through the implementation of new ideas and technologies which are fostered by innovation. The primary objectives of the study will be to identify the innovation and technology development or adoption needs of the industry and to explore the benefits of establishing a coordi- nated industry organisation which could identify, assess and manage innovative, commercially based pro- jects resulting from research and devel- opment, and make sound recommenda- tions regarding strategically important R&D projects. Financial Year: 95/96 Project Title: Roof Integrated Energy Panels Project Keywords: EFF Contractor: ETSA Corporation RDC Commitment: $69,000 RDC Commitment allocated: 1996/1997 $20,000.00 3714 SENATE Monday, 26 May 1997

997/1998 $30,000.00 998/1999 $19,000.00 Total Project Cost: $130,000 Date Approved: 00/00/00 Date Contract Signed: 00/00/00 Commencement Date: 01/08/96 Anticipated Project Completion Date: 01/08/98 Duration of Project: 24 Months Project Description: The concept of using a roof’s surface to either produce or reduce part of a household’s energy needs is not new. But the impact on residential building aesthetics has been an ongoing prob- lem of perception for the manufactur- ers of energy-related, building integrat- ed products. Despite the environmental and finan- cial benefits, a large number of prop- erty owners are still discouraged by the "add on" nature of products that can produce energy, or skylights and insu- lation, that reduce the need for energy to be supplied. This project is designed to produce a standard, integrated frame that can be used on a range of residential building roof designs—initially used with colorbond roofs, but eventually with tiled and other roofs. Any product, such as solar water heaters, PV panels or skylights, will be able to be at- tached to the frame, so that they form part of the roof structure, rather than being an "add on". The energy-related component of the roof will be weather- proof, easy to replace and will last more than 15 years. With the Australian residential sector currently using 20% of the nation’s non-transport energy, and representing 30% of electricity sales, significant local financial and environmental sav- ings would be achieved by the success- ful commercialisation of this product. There is also a major export market to Asian countries that are beginning to use PV in residential developments that do not have access to an electri- city grid. Monday, 26 May 1997 SENATE 3715

Financial Year: 95/96 Project Title: Flyash Metal Matrix Composite Devel- opment—Aluminium Project Keywords: EFF Contractor: Cyco Technology Pty Ltd RDC Commitment: $1,246,000 RDC Commitment allocated: 1996/1997 $247,317.36 997/1998 $538,373.86 998/1999 $455,000.00 999/2000 $5,308.78 Total Project Cost: $4,472,000 Date Approved: 21/06/96 Date Contract Signed: 00/00/00 Commencement Date: 01/10/96 Project Completion Date: 30/09/99 Duration of Project: 36 Months Project Description: Contract under negotiation Financial Year: 95/96 Project Title: Patent Protection—Liquiphase Project Keywords: EFF Contractor: Collison & Co RDC Commitment: $107,516 RDC Commitment allocated: 1996/1997 $98,2994 997/1998 $9216.60 998/1999 $0 Total Project Cost: $107,516 Date Approved: 26/06/96 Date Contract Signed: Contract not required Commencement Date: 26/06/96 Project Completion Date: 30/12/98 Duration of Project: 30 Months Project Description: ERDC has committed funds to ensure the patents developed in the Liquiphase joint venture are appro- priately covered. Financial Year: 95/96 Project Title: Low Cost Catalytic Production of Syngas Using CO2 from Coal Fired Power Stations Project Keywords: EFF Contractor: University of Queensland RDC Commitment: $1,610,000 RDC Recommitment: $1,610,000 RDC Commitment allocated: $0 Total Project Cost: $4,385,000 Date Approved: 20/06/96 Date Contract Signed: 00/00/00 Commencement Date: 01/09/96 ecommitment Date: 21/08/96 Duration of Project: Did not proceed 3716 SENATE Monday, 26 May 1997

Financial Year: 95/96 Project Title: Geothermal and Gas Reservoir Devel- opment in Hot, Low Permeability, High Stressed Rock Project Keywords: REN EFF Contractor: University of New South Wales RDC Commitment: $1,010,000 RDC Commitment allocated: 1996/1997 $0 997/1998 $116,000.00 998/1999 $740,000.00 999/2000 $154,000.00 Total Project Cost: $3,228,000 Date Approved: 20/06/96 Date Contract Signed: 16/12/96 Commencement Date: 01/01/97 Anticipated Project Completion Date: 31/12/99 Duration of Project: 36 Months Project Description: A vast amount of untapped, hot dry rock geothermal energy and natural gas lies below the earth’s surface in parts of the Australian continent. To access and use this energy, Aus- tralia requires technologies to build and manage the hot, highly stressed rock reservoirs that exist at depths of several kilometres. Following on from a feasibility study funded by ERDC, this project is aimed at developing optimised stimulation technologies. This involves character- ising in situ stresses and reservoir rock properties, theoretical modelling, la- boratory studies and field tests. If successful, the technology will en- able Australia to tap a clean source of energy for many years. Financial Year: 95/96 Project Title: Electrochromic Switchable Glazing— Olympic Demonstration Project Project Keywords: EFF Contractor: Sustainable Technologies Australia Pty Ltd RDC Commitment: $855,000 RDC Commitment allocated: 1996/1997 $250,000.00 997/1998 $520,000.00 998/1999 $85,000.00 Total Project Cost: $2,138,825 Date Approved: 21/06/96 Date Contract Signed: 08/05/97 Commencement Date: 01/07/96 Anticipated Project Completion Date: 30/09/98 Monday, 26 May 1997 SENATE 3717

Duration of Project: 27 Months Project Description: This project is commercialising the electrochromic glazing system devel- oped in an earlier collaborative project funded by ERDC. Financial Year: 95/96 Project Title: Australian Participation in IEA Photo- voltaic Power Systems Program’s Task 7—Photovoltaics in the Built Environ- ment Project Keywords: REN EFF Contractor: University of New South Wales RDC Commitment: $150,000 RDC Commitment allocated: 1996/1997 $25,000.00 997/1998 $25,000.00 998/1999 $30,000.00 999/2000 $35,000.00 000/2001 $35,000.00 Total Project Cost: $455,000 Date Approved: 21/06/96 Date Contract Signed: 26/09/96 Commencement Date: 01/10/96 Anticipated Project Completion Date: 31/10/2001 Duration of Project: 61 Months Project Description: Photovoltaics is a rapidly emerging technology for meeting the energy needs of the future. As the efficiencies increase and the prices come down, the focus clearly is on effective application of the technologies. Built environment (building and other structures) is one of the targets and the new International Energy Agency Task 7 has been structured to investigate key issues that may support wide scale application of PV in the built environ- ment. Australian industry and utilities are currently investigating integrated and grid connected PV for local and export opportunities. The project facilitates wide scale information sharing among the IEA member nations to further break the barriers to the use of this promosing technology. Financial Year: 95/96 Project Title: Development of Solid Oxide Fuel Cells—Phase 2 Project Keywords: EFF Contractor: Ceramic Fuel Cells Limited RDC Commitment: $3,000,000 3718 SENATE Monday, 26 May 1997

RDC Commitment allocated: 1997/1998 $450,000.00 998/1999 $1,020,000.00 999/2000 $1,020,000.00 000/2001 $510,000.00 Total Project Cost: $40,000,000 Date Approved: 20/06/96 Date Contract Signed: 00/00/00 Commencement Date: 01/07/97 Project Completion Date: 31/12/2000 Duration of Project: 43 Months Project Description: Contract under negotiation Financial Year: 96/97 Project Title: Easy Share Car Pooling Project Keywords: EFF Contractor: Easy Share Australia Pty Ltd RDC Commitment: $510,000 RDC Commitment allocated: 1996/1997 $75,000.00 997/1998 $435,000.00 Total Project Cost: $1,590,000 Date Approved: 23/07/96 Date Contract Signed: 06/12/96 Commencement Date: 01/10/96 Anticipated Project Completion Date: 31/1/98 Duration of Project: 16 Months Project Description: With transport accounting for nearly 12% of Australia’s greenhouse gas emissions, there is a real need for innovative ways of reducing the community’s high use of private vehi- cles. A new car pooling system, EasyShare, is being demonstrated in this project. To be operated in Sydney, the system will allow users to share rides at all times of the day, to and from all sub- urbs. The system’s first phase of develop- ment was also funded by ERDC, and resulted in integrating the various hard- ware, software and advanced com- munication techniques needed to make the system accessible for users. A successful demonstration has the po- tential to develop a low cost, conveni- ent and flexible transport alternative, providing reduced fuel consumption, pollution, traffic congestion and travel costs. Financial Year: 96/97 Project Title: White Cliffs PV Concentrator System Project Keywords: REN EFF Monday, 26 May 1997 SENATE 3719

Contractor: Solar Research Corporation Pty Ltd RDC Commitment: $567,800 RDC Commitment allocated: 1995/1996 $20,000.00 996/1997 $297,600.00 997/1998 $250,200.00 Total Project Cost: $1,169,400 Date Approved: 23/07/96 Date Contract Signed: 10/12/96 Commencement Date: 01/10/96 Anticipated Project Completion Date: 30/6/97 Duration of Project: 9 Months Project Description: Photovoltaic (PV) concentrating tech- nologies generate electricity by focus- ing sunlight on high efficiency PV cells. Replacing a large area of solar cells with low cost mirrors, to focus the light onto the cells, can reduce the overall system cost significantly. This project is refurbishing the fifteen year old dish array at White Cliffs in New South Wales. The existing steam generating receivers will be replaced with PV receivers, to demonstrate both the durability of the established infra- structure and the ability of the updated system to operate under real condi- tions. The electricity generated will be fed into the local distribution grid, operated by Australian Inland Energy. The modular nature of the system means it can be manufactured eco- nomically, minimising establishment costs and providing more flexibility for potential users. The project aims to provide the experi- ence and confidence needed to in- corporate a low cost, reliable, renewably-based, energy delivery sys- tem into the options available for the power industries both in Australia and overseas. Financial Year: 96/97 Project Title: Energy Improvements by Mitigating Harmonics Problems in Commercial Establishments Project Keywords: EFF Contractor: Unimelb Limited RDC Commitment: $832,500 RDC Commitment allocated: 1996/1997 $156,100.00 997/1998 $396,800.00 998/1999 $279,600.00 3720 SENATE Monday, 26 May 1997

Total Project Cost: $2,105,700 Date Approved: 23/07/96 Date Contract Signed: 18/12/96 Commencement Date: 06/01/97 Anticipated Project Completion Date: 31/3/99 Duration of Project: 27 Months Project Description: Many tall buildings in Australia’s cities are facing increasing problems with the quality of their power supply. "Harmonic distortion" is a term applied to the varying quality of electricity supply and is commonly associated with the use of modern energy saving plant and equipment. Its presence in a power supply can have serious eco- nomic consequences for building own- ers and tenants, who rely on high quality supply to meet a wide range of operations. This project with Unimelb Litd, the commercial arm of the University of Melbourne, will focus on developing computer programs to simplify compu- tations that enable monitoring and mitigation of harmonic distortion. Leading building industry consultants, Lincolne Scott Australia, will contri- bute practical commercial building design and refurbishment experience, as well as knowledge on applying risk management practices in the building industry. Potential benefits from developing this system will include a more reliable, safe and efficient suppy of power to building, and a product that can be ex- ported for use in similar circumstances overseas. Financial Year: 96/97 Project Title: Eco-Vend: Beverage Dispensing Ma- chine—2000 Innovation Program Project Keywords: EFF Contractor: NIDA Group Pty Ltd and Southcorp Appliances—Refrigeration RDC Commitment: $136,000 RDC Commitment allocated: 1996/1997 $136,000.00 Total Project Cost: $1,887,560 Date Approved: 06/08/96 Date Contract Signed: 24/09/96 Commencement Date: 26/08/96 Anticipated Project Completion Date: 1/7/97 Monday, 26 May 1997 SENATE 3721

Duration of Project: 11 Months Project Description: A popular way for Australians to pur- chase cold soft drinks is through vend- ing machines. However, these are energy intensive and are costly to es- tablishments in energy. This project is aiming to reduce the energy consumption of cold drinks vending machines by 60%. Much of the technical work has been conducted through previous projects by the Nida Group. In this project Southcorp and Nida aim to produce a machine whose features will allow for a control centre to com- municate with other machines to moni- tor such issues as refilling timing, ser- vice needs and security matters. The machine includes a flexible racking system which provides for a broader range of drink container types to meet the changing needs of the market. Each machine over a 7 year lifecycle will produce power savings of approxi- mately $1,700 and savings in energy of 13,700 kwh, and a reduction in CO2 of 13.7 tonnes. Vending machines are currently imported into Australis so this will be a good opportunity for an Australian company to begin the manufacture of these machines resul- ting in both an import replacement op- portunity as well as a good export opportunity. Financial Year: 96/97 Project Title: IEA Implementing Agreement on Road Vehicle Technologies for the Future Project Keywords: EFF Contractor: Energy Research and Development Corporation RDC Commitment: $10,000 RDC Commitment allocated: 1996/1997 $10,000.00 Total Project Cost: $10,000 Date Approved: 25/07/96 Date Contract Signed: 30/07/96 Commencement Date: 31/07/96 Anticipated Project Completion Date: 31/12/96 Duration of Project: 5 Months 3722 SENATE Monday, 26 May 1997

Project Description: As part of the consultation process of developing priorities for the transport sector, ERDC funded an Australian expert in the field to attend this IEA meeting to present Australia’s perspec- tive and analyse the potential benefits of our future involvement in the Imple- menting Agreement. Financial Year: 96/97 Project Title: The Commercial Significance to Aus- tralia of Gas in Coal Project Keywords: EFF Contractor: BHP Engineering Pty Ltd RDC Commitment: $80,000 RDC Commitment allocated: 1996/1997 $63,616 997/1998 $16,384 Total Project Cost: $160,000 Date Approved: 09/08/96 Date Contract Signed: 06/03/97 Commencement Date: 09/08/96† Anticipated Project Completion Date: 1/9/97 Duration of Project: 13 Months Monday, 26 May 1997 SENATE 3723

Project Description: Coalbed methane (CBM)* is a gas that lies trapped in coal deposits. The po- tential for harnessing this valuable energy resource is significant, but real- ising its potential depends on the right techniques for Australian conditions being successfully developed. In collaboration with a number of in- dustry and government bodies, ERDC has commissioned BHP Engineering Pty Ltd to undertake an independent study into the Commercial Significance to Australia of Gas in Coal. Expected study outcomes will include identifying and defining the: potential markets and opportunities, in the short, medium and long term, for CBM in Australia and in overseas ex- port markets; real levels of available and recoverable gas, based on recent, measured data; benefits and tradeoffs to the mining industry; environmental benefits and impacts of realising the resource; and structural and economic barriers that are preventing the growth or access to identified markets. The study’s findings will provide Aus- tralian industries involved in CBM development with the most current information and an understanding of the key issues for its future progress, † CCommencement Date for program Financial Year: 96/97* Coal Bed Methane is also known as Project Title: BRSCoal SeamEnhanced Gas Oil or Coal Recovery Seam Confer- Methane ence (IEA-EOR) 1996 Project Keywords: EFF Contractor: Bureau of Resource Sciences RDC Commitment: $3,500 RDC Commitment allocated: 1996/1997 $3,500.00 Total Project Cost: $3,500 Date Approved: 09/08/96 Date Contract Signed: 00/00/00 Commencement Date: 29/09/96 Anticipated Project Completion Date: 2/10/96 Duration of Project: 1 Week Project Description: ERDC was a co-sponsor of this confer- ence to facilitate a better understanding of a range of enhanced oil recover methods. 3724 SENATE Monday, 26 May 1997

Financial Year: 96/97 Project Title: Australian Participation in the Interna- tional Energy Agency’s Renewable Energy Working Party Project Keywords: REN Contractor: Energy Research and Development Corporation RDC Commitment: $25,000 RDC Commitment allocated: 1996/1997 $10,000.00 997/1998 $10,000.00 998/1999 $5,000.00 Total Project Cost: $25,000 Date Approved: 15/08/96 Date Contract Signed: 00/00/00 Commencement Date: 21/08/96 Anticipated Project Completion Date: 30/10/98 Duration of Project: 27 Months Project Description: This project allows ERDC to be in- volved in the IEA’s Renewable Energy Working Party, contributing at a senior level on all issues developed within this forum. Financial Year: 96/97 Project Title: Minimisation of Energy Use in Bio- logical Nutrient Removal Plants Project Keywords: EFF Contractor: Environmental Solutions International Limited RDC Commitment: $150,000 RDC Recommitment: $150,000 RDC Commitment allocated: $0 Total Project Cost: $488,000 Date Approved: 20/08/96 Date Contract Signed: 00/00/00 Commencement Date: 01/12/96 ecommitment Date: 30/9/96 Duration of Project: Did not proceed Financial Year: 96/97 Project Title: Fibre Optic Current Sensor (FOCS) Final Development and Pre- commercialisation Study Project Keywords: EFF Contractor: ABB Transmission and Distribution Limited RDC Commitment: $577,000 RDC Commitment allocated: 1996/1997 $438,000.00 997/1998 $139,000.00 Total Project Cost: $1,331,000 Date Approved: 06/09/96 Date Contract Signed: 12/12/96 Commencement Date: 01/11/96 Monday, 26 May 1997 SENATE 3725

Anticipated Project Completion Date: 31/10/97 Duration of Project: 12 Months Project Description: Worldwide industry demands for more efficient generation and use of electri- cal energy have created a need to measure the flow of power more accu- rately and at more locations than has previously been necessary. To respond to these requirements, ABB in collaboration with Sydney University and TransGrid are develop- ing an alternative method of measuring current at high voltage by using optical fibre. A successful new product will use fewer components, occupy less space and will have greater reliability and safety than the conventional equip- ment. Expected successful commercialisation will produce significant benefits to the Australian economy with increased ex- ports, greater employment opportuni- ties, as well as improving the efficien- cy of electrical transmission networks. Financial Year: 96/97 Project Title: Biomass in the Energy Cycle Project Keywords: REN EFF Contractor: Energy Research and Development Corporation RDC Commitment: $75,000 RDC Commitment allocated: 1996/1997 $25,000 997/1998 $25,000 998/1999 $25,000 Total Project Cost: $100,000 Date Approved: 01/07/97 Date Contract Signed: 00/00/00 Commencement Date: 01/07/97 Anticipated Project Completion Date: 30/6/99 Duration of Project: 30 Months Project Description: ERDC is facilitating the establishment of a working party that will act as a forum for discussion on biomass ener- gy issues and priorities implement the recommendations which arose from the jointly funded study Biomass in the Energy Cycle through coordination amongst the major stakeholders, to ensure recognition of biomass in ener- gy in relevant Federal/State Govern- ment agenda and initiatives. 3726 SENATE Monday, 26 May 1997

Financial Year: 96/97 Project Title: Options For Australia’s Physical Fu- tures Using The OzEcco Energy Flows Model Project Keywords: EFF Contractor: CSIRO Division of Wildlife and Ecol- ogy RDC Commitment: $45,000 RDC Commitment allocated: 1997/1998 $45,000.00 Total Project Cost: $85,350 Date Approved: 02/02/97 Date Contract Signed: 16/04/97 Commencement Date: 01/05/97 Anticipated Project Completion Date: 30/9/97 Duration of Project: 5 Months Project Description: In simple terms, population pressure on the environment is a function of the complex mix of population, lifestyle, organisation and technology. Some of these interactions have been examined largely through econometric modelling. While this approach is valid and use- ful, to date, many of the physical pro- cesses that underlie the functioning of the modern economy have been dealt with simplistically in these models. The CSIRO Division of Wildlife and Ecology therefore is developing a range of physical accounting frame- works (including OzEcco) that address the environmental options and challen- ges which face Australia over the next 50 years or so. OzEcco is a model of the energy flows within the existing Australian production system. It as- sumes that under every financial trans- action, there is also a physical transac- tion which requires energy. OzEcco is a modelling tool that may be used by decision makers, environ- mentalists, company strategists and others who wish to explore alternative futures and who recognise that, though there are many possible futures, a sus- tainable future almost certainly re- quires trade-offs among competing objectives. The OzEcco framework will provide a way to quantify those trade-offs. Monday, 26 May 1997 SENATE 3727

Financial Year: 96/97 Project Title: Optimal Design of Procedures for Ad- vanced Solar Water Heaters Postgraduate Gary Rosengarten Project Keywords: REN EFF Contractor: University of New South Wales RDC Commitment: $66,000 RDC Commitment allocated: 1996/1997 $13,500.00 997/1998 $21,000.00 998/1999 $21,000.00 999/2000 $10,500.00 Total Project Cost: $66,000 Date Approved: 11/02/97 Date Contract Signed: 04/04/97 Commencement Date: 03/05/97 Anticipated Project Completion Date: 3/5/2000 Duration of Project: 37 Months Project Description: ERDC Postgraduate Award Recipient Financial Year: 96/97 Project Title: Roof Integrated Solar/Natural Heating (Martin Belusko) and Cooling System Project Keywords: REN EFF Contractor: University of South Australia RDC Commitment: $66,000 RDC Commitment allocated: 1996/1997 $13,500.00 997/1998 $21,000.00 998/1999 $21,000.00 999/2000 $10,500.00 Total Project Cost: $66,000 Date Approved: 13/12/96 Date Contract Signed: 30/04/97 Commencement Date: 01/05/97 Anticipated Project Completion Date: 1/2/2000 Duration of Project: 33 Months Project Description: ERDC Postgraduate Award Recipient Financial Year: 96/97 Project Title: Thin Multicrystalline Solar Cells (Ky- lie Catchpole) Project Keywords: REN EFF Contractor: Australian National University RDC Commitment: $66,000 RDC Commitment allocated: 1996/1997 $13,500.00 997/1998 $21,000.00 998/1999 $21,000.00 999/2000 $10,500.00 Total Project Cost: $66,000 Date Approved: 13/12/96 Date Contract Signed: 07/04/97 Commencement Date: 24/02/97 Anticipated Project Completion Date: 23/2/2000 3728 SENATE Monday, 26 May 1997

Duration of Project: 36 Months Project Description: : ERDC Postgraduate Award Recipient Financial Year: 96/97 Project Title: Energy Efficiencies as a Competitive Advantage in International Trade (Ross Wildes) Project Keywords: EFF Contractor: University of Melbourne RDC Commitment: $66,000 RDC Commitment allocated: 1996/1997 $13,500.00 997/1998 $31,500.00 998/1999 $21,000.00 Total Project Cost: $66,000 Date Approved: 13/12/96 Date Contract Signed: 00/00/00 Commencement Date: 28/02/97 Anticipated Project Completion Date: 30/11/99 Duration of Project: 34 Months Project Description: ERDC Postgraduate Award Recipient Financial Year: 96/97 Project Title: Solar ‘97 Conference Project Keywords: REN EFF Contractor: Australian and New Zealand Solar Energy Society RDC Commitment: $5,000 RDC Commitment allocated: 1996/1997 $5,000 Total Project Cost: $5,000 Date Approved: 13/12/97 Date Contract Signed: 00/00/00 Commencement Date: 18/03/96 Anticipated Project Completion Date: 3/12/97 Duration of Project: 9 Months Project Description: Sponsorship of annual Australian and New Zealand Solar Energy Society Conference Financial Year: 96/97 Project Title: RPU4 Fault Indicator Incorporating REMMIT Technology Project Keywords: EFF Contractor: CHK Engineering Pty Ltd RDC Commitment: $290,000 RDC Commitment allocated: 1996/1997 $130,913 997/1998 $159,087 Total Project Cost: $290,000 Date Approved: 01/04/97 Date Contract Signed: 00/00/00 Commencement Date: 25/03/97 Anticipated Project Completion Date: 13/2/98 Duration of Project: 11 Months Project Description: Contract under negotiation Monday, 26 May 1997 SENATE 3729

Financial Year: 96/97 Project Title: Epilift Silicon Wafers for PV Solar Cells Project Keywords: REN EFF Contractor: The Australian National University RDC Commitment: $110,000 RDC Commitment allocated: 1996/1997 $5,000.00 997/1998 $75,000.00 998/1999 $30,000.00 Total Project Cost: $300,000 Date Approved: 01/04/97 Date Contract Signed: 07/05/97 Commencement Date: 01/04/97 Anticipated Project Completion Date: 30/11/98 Duration of Project: 21 Months Project Description: Contract under negotiation Financial Year: 96/97 Project Title: Microwave Wool Processing Project Keywords: EFF Contractor: Illawarra Technology Corporation Ltd RDC Commitment: $200,000 RDC Commitment allocated: 1996/1997 $10,000.00 997/1998 $140,000.00 998/1999 $50,000.00 Total Project Cost: $504,000 Date Approved: 21/03/97 Date Contract Signed: 00/00/00 Commencement Date: 01/04/97 Anticipated Project Completion Date: 30/4/99 Duration of Project: 25 Months Project Description: Contract under negotiation Financial Year: 96/97 Project Title: Sponsorship of the MBA National Energy Awards—1997 and 1998 Project Keywords: EFF Contractor: Master Builders Australia RDC Commitment: $10,000 RDC Commitment allocated: 1997/1998 $6,000.00 998/1999 $4,000.00 Total Project Cost: $10,000 Date Approved: 16/04/97 Date Contract Signed: 16/04/97 Commencement Date: 16/04/97 Anticipated Project Completion Date: 30/11/98 Duration of Project: 20 Months 3730 SENATE Monday, 26 May 1997

Project Description: The building industry is a key stake- holder in the early adoption and suc- cessful commercialisation of relevant energy efficient products, systems and services. ERDC and Master Builders Australia are working together to implement a number of strategies to inform the Australian building industry about the importance of energy efficiency, the role of innovation, and the nature of currently available and emerging ener- gy technologies. The MBA’s National Energy Awards are a key activity and are co-sponsored by ERDC. They recognise companies that are at the leading edge of imple- menting energy efficiency in their buildings and are designed to encour- age wider technology transfer in the Australian industry.