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Thursday, 20 July 2006 20 Jul 2006 Estimates Committee G—Natural Resources, Mines and Water 1 THURSDAY, 20 JULY 2006 Legislative Assembly ESTIMATES COMMITTEE G—NATURAL RESOURCES, MINES AND WATER Estimates Committee G Members Mrs JM Attwood (Chair) Hon. KW Hayward Mr M J Horan Mr PJ Lawlor Ms RT Lee Long Mr JW Seeney Mrs CE Sullivan In Attendance Hon. H Palaszczuk, Minister for Natural Resources, Mines and Water Department of Natural Resources, Mines and Water Mr B McCarthy, Director-General Mr B Coulter, Deputy Director-General, Land, Science and Regions Mr S Spencer, Deputy Director-General, Water and Sustainable Landscapes Mr M Cremer, Deputy Director-General, Mining and Petroleum Mr P Philipson, General Manager, Finance and Asset Management Committee met at 9.00 am. CHAIR: Good morning, everyone. I declare the meeting of Estimates Committee G now open. My name is Julie Attwood. I am the member for Mount Ommaney and I am the chair of the committee. Joining me is Peter Lawlor, the member for Southport; Mike Horan, the deputy chair of this committee; Ken Hayward, the member for Kallangur; Carryn Sullivan, the member for Pumicestone; Jeff Seeney, the member for Callide; and Rosa Lee Long, the member for Tablelands. The committee will examine the proposed expenditure contained in the Appropriation Bill 2006 for the portfolios of the Minister for Natural Resources, Mines and Water and the Minister for Primary Industries and Fisheries. We will examine the portfolios in that order. The proceedings today are lawful proceedings and subject to the standing rules and orders of the parliament. As such, I remind all visitors that any person admitted to this hearing may be excluded by order of the committee in accordance with standing order 206. In relation to media coverage of the hearing, the committee has resolved to allow television film coverage and photography during my introduction and ministers’ opening statements. Before we begin, I ask that all mobile phones be now switched off. The first item for consideration are the estimates of the expenditure of the Minister for Natural Resources, Mines and Water. Welcome Minister Palaszczuk and advisers. The committee will examine estimates for the portfolio until noon, with a 20-minute break at 10.25 am. The time limit for questions is one minute and three minutes for answers. A 15-second warning will be given prior to the expiration of these time limits. An extension of time may be given with the consent of the questioner. For the benefit of Hansard, I ask advisers that if you are called to give an answer please state your name before speaking. I now declare the proposed expenditure for the portfolio of the Minister for Natural Resources, Mines and Water open for examination. The question before the committee is— That the proposed expenditure be agreed to. Minister, would you care to make your opening statement? Mr PALASZCZUK: Yes, thank you, Madam Chair. The state budget that was delivered by the Treasurer on 6 June was an outstanding one for our state. As the Minister for Natural Resources, Mines 2 Estimates Committee G—Natural Resources, Mines and Water 20 Jul 2006 and Water I am pleased to report that the budget makes a significant investment in the department and the sustainable management of the state’s land, water, vegetation, mineral and petroleum resources. The sustainable use of these resources is not only preferred; it is essential. The budget forecasts record spending of $650.5 million for the department in 2006-07. The budget also made considerable whole-of- government investments in areas related directly to the portfolio, including $825 million for infrastructure to support the resources sector and approximately $600 million for water infrastructure. Water is one of the most complex areas of public policy. I welcome the comments by Prime Minister John Howard on water this week. His comments endorse the approach the Queensland government is already taking. In Queensland, we have been a leader in delivering on the national water reform agreement, the National Water Initiative. The government is committed to delivering water security for all water users—homes, businesses, farms, industry and the environment. Our regional water supply planning approach is essential. The South East Queensland Regional Water Supply Strategy being developed and implemented by the government and local councils in the region is the blueprint for the region’s water security until at least 2050. Through this strategy, the government is committed to a regional water grid, new dams, raising existing dams, a recycled water scheme for industry, a desalination plant and water-saving programs for homes, businesses, industry and local councils. The water saving response from the people of south-east Queensland has been fantastic. By the end of this month, the amount of water saved since the regional drought strategy was launched in May last year will be 100 billion litres or 100,000 megalitres. Based on the region’s average current daily water use for July of about 690 megalitres per day, south-east Queensland has saved the equivalent of 145 days water use. Previously, the region’s average daily water use for the month of July was 955 megalitres. The actual use is about 690 megalitres each day, which means it is 265 megalitres less for each day. The government is committed to supporting the community in efforts to save more water and in turn save more money. Whilst the efforts on the demand side of the water equation are clearly working, we are implementing a range of initiatives to secure additional water supplies. One of these initiatives involves exploration work on the Nambour Basin to the city’s north. The department has completed preliminary analysis for the region broadly between Caboolture and Nambour and is now preparing to undertake drilling investigations. The department has now selected six sites which I can now show to the committee—and I can table this map—of the areas where the department intends to drill. I will table this for the benefit of all committee members. The department has been in contact with contractors able to drill up to 600 metres underground. If you can imagine the height of Q1, the world’s tallest residential tower on the Gold Coast, which is 322.5 metres, we will be drilling down almost twice as far into the ground in the search for additional water. We hope this drilling work can commence next month. Queensland already uses more than 1.5 million megalitres of groundwater each year. I caution anyone hoping that this drilling will replenish our water supplies. It may provide modest water discoveries that can be used locally, but any such discoveries, I believe, will be welcomed by the people who live in south-east Queensland. With those few words, officers of the department and I welcome the committee’s questions. CHAIR: Thank you, Minister. The minister has also sought leave to table this map. Mr PALASZCZUK: My apologies. I seek leave of the committee to table the map that I referred to. Leave granted. CHAIR: We might as well start our questions. I call the member for Callide. Mr SEENEY: Thank you, Madam Chair, and thank you, Minister, for the opportunity here this morning and thank you to the departmental officers for attending in such numbers. As I remarked before, I hope there is somebody left in the department to answer the phones this morning. Minister, I refer you initially to your MPS where you identify the strategic issues facing the department, and quite rightly you identify water security particularly in south-east Queensland as a critical issue. You indicate that your department ‘will lead the Queensland government’s response to this issue’. In question on notice No. 8 that I asked you regarding your department’s expenditure, and I would imagine you would agree, on your government’s major response to that issue—that is, the construction of the two major dams—you indicate that your department in this budget has only allocated $2.5 million towards what you call prefeasibility technical studies. CHAIR: Can I remind the member that he has one minute to ask the question and he should not be making statements; he should be asking the question. Mr SEENEY: I was working on the timer, Madam Chair, but thank you anyway. Minister, $2.5 million does not seem like a lot of money. Can you indicate to the committee how you are going to lead the government’s response with $2.5 million, how you are going to lead the government’s efforts in building those two new dams with $2.5 million? 20 Jul 2006 Estimates Committee G—Natural Resources, Mines and Water 3 Mr PALASZCZUK: The Queensland government has a very proud record on water. For the benefit of the committee, I will start off by giving a general answer and then I will refer to the honourable member’s question in specifics. As a government we really inherited a largely unmanaged and insecure water supply system that had not sufficiently accounted for existing entitlement holders and the environment. The Water Act had been a milestone in the management of our water resources. As a government now we are committed to securing future water supplies for all water users, which includes households, communities, businesses, industry, farms and the environment right across the state. We have one of the highest per capita water usages in the world which is equivalent to around about 1.1 million litres for each Queenslander each year. In August last year the Queensland government released the Queensland Water Plan which outlines our commitment and our strategies for water use, and it has seven strategies.
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