Estimates—Energy, Water Supply, Main Roads, Road Safety and 28 Jul 2016 1 Ports THURSDAY, 28 JULY 2016 _______________ ESTIMATES—TRANSPORTATION AND UTILITIES COMMITTEE—ENERGY, WATER SUPPLY, MAIN ROADS, ROAD SAFETY AND PORTS EST IMATES—ENER GY, W ATER SU PPLY, M AIN R O ADS , R O AD S AFET Y AND PO RTS Estimate Committee Members Mr SR King (Chair) Mr R Molhoek Mr JN Costigan Mr MJ McEachan Mr DA Pegg Mr CG Whiting _______________ Members in Attendance Mr MJ Hart Mrs JR Miller Mr AC Powell Mr JH Langbroek _______________ In Attendance Hon. MC Bailey, Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply Ms D Spinks, Chief of Staff Department of Energy and Water Supply Prof. P Simshauser, Director-General Mr B Barr, Deputy Director-General, Energy Mr K Sedgwick, Deputy Director-General, Water Energy Queensland Mr T Effeney, Chef Executive Officer Seqwater Mr P Dennis, Chef Executive Officer Department of Transport and Main Roads Mr N Scales, Director-General Far North Queensland Ports Corporation Limited Mr C Boland, Chief Executive Officer Gladstone Ports Corporation Mr P O’Sullivan, Chief Executive Officer _______________ Committee met at 9.00 am CHAIR: Good morning. I declare open this estimates hearing for the Transportation and Utilities Committee. I acknowledge the traditional owners of the land on which our parliament stands. I am Shane King, the member for Kallangur and chair of this committee. Rob Molhoek, the member for Southport, is the deputy chair. Other committee members are Mr Jason Costigan, the member for Estimates—Energy, Water Supply, Main Roads, Road Safety and 2 28 Jul 2016 Ports Whitsunday; Mr Matt McEachan, the member for Redlands; Mr Duncan Pegg, the member for Stretton; and Mr Chris Whiting, the member for Murrumba. The committee has also given leave for other members to participate in the hearing today. I welcome Mr Michael Hart, the shadow minister for energy, biofuels and water supply and member for Burleigh. I also welcome Mrs Jo-Ann Miller, the member for Bundamba, who is visiting us today for this session. In relation to the media coverage of the hearing, the committee has resolved to allow television film coverage and photography at all times during the hearing in accordance with the media broadcasting rules. The committee’s hearing is being broadcast live by the Parliamentary Service website and to receivers throughout the parliamentary precinct. I ask that mobile phones or pagers be either switched off or switched to silent. Also, I should remind you that food and drink is not permitted in this chamber. Today the committee will examine the areas of responsibility for the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply and the Minister for Transport and the Commonwealth Games in the order outlined on the hearing program. The committee will now examine the proposed expenditure contained in the Appropriation Bill 2016 for the portfolio areas of the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply. The committee will examine the minister’s portfolio areas of Energy and Water Supply from 9 am to 11 am and then examine the portfolio areas of Main Roads, Road Safety and Ports from 11.30 am to 1.30 pm. I remind those present today that these proceedings are similar to parliament and are subject to the standing rules and orders of the parliament. I also remind members of the public that, under standing orders, the public may be admitted to or excluded from this hearing at the discretion of the committee. It is important that the questions and answers be relevant and succinct. The same rules for questions that apply in parliament apply here. I refer to standing orders 112 and 115, and therefore questions should be brief, relate to one issue and should not contain lengthy or subjective preambles, argument or opinion. I intend to guide proceedings today so that relevant issues can be explored without imposing artificial time limits and to ensure there is adequate opportunity to address questions from government and non-government members of the committee. Where necessary, I will remind ministers, directors-general, CEOs and their advisers that their answer to a question should be finalised so that other issues can be examined. On behalf of the committee, I welcome the minister, officials and members of the public to this hearing. For the benefit of Hansard, if advisers are called to answer, please state your name before speaking. I now declare the proposed expenditure for the areas of responsibility administered by the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply open for examination. The question before the committee is— That the proposed expenditure be agreed to. Minister, would you care to make a brief opening statement? The committee has resolved that you may make a brief opening statement for up to five minutes. Mr BAILEY: I would, thank you, Chair. I welcome the committee and all officers and public servants here this morning. The Palaszczuk government is committed to creating jobs and enhancing productivity, delivering quality front-line services, protecting our environment, increasing road safety and transitioning Queensland to a clean-energy economy, and our budget shows this commitment without asset sales. Upon forming government we inherited surging electricity prices, little investment in new renewable energy generation and technology, and a loss of 1,300 jobs in this emerging sector under the previous government. Today, the Palaszczuk government has stabilised electricity prices, with the typical household seeing an average increase of 1.2 per cent over the first two years on average of this government, compared to the 43 per cent increases over the term of the last Nicholls-Newman LNP government. The Palaszczuk government is delivering on our election commitments. We are now more than halfway through the solar target of 3,000 megawatts or one million solar rooftops by 2020. We are turning the Sunshine State into the solar state. Solar is now equivalent to Queensland’s second largest power station. Our Solar 120 commitment has tripled our renewable energy election commitment, and the independent Renewable Energy Expert Panel is currently working with Queenslanders to establish credible pathways to a 50 per cent renewable energy target by 2030. Estimates—Energy, Water Supply, Main Roads, Road Safety and 28 Jul 2016 3 Ports We delivered on our election commitment to deregulate South-East Queensland’s electricity market, ensuring stakeholders were fully consulted, well informed and contributing to our education campaign, which is now underway. We are developing new industries, such as Queensland’s biofuels and industrial biotechnology sectors, advancing Queensland jobs of the future. We have legislated the biofuels mandate to start on 1 January next year as part of our biofutures strategy. We are delivering a record investment for roads and transport infrastructure of more than $20 billion over four years, as outlined in the Queensland Transport and Roads Investment Program, QTRIP. Some $15.2 billion is for planned investment in road and maritime infrastructure, supporting an estimated 12,000 direct jobs over the life of the program, with many in Queensland’s regions. Our budget investment includes funding the Deputy Premier’s State Infrastructure Plan, such as $40 million for a timber bridge replacement package on the Dawson Highway between Gladstone and Biloela, a $30 million duplication of Riverway Drive in Townsville from Gollogly Lane to Allambie Lane, the $22 million Sunshine Coast University Hospital intersection upgrade package at Kawana Way and Nicklin Way, and the $10 million stage 1 of the Rockhampton road train access. Infrastructure projects valued at $144.6 million, mostly in regional Queensland, have also been fast-tracked under the Premier’s Accelerated Works Program to bring forward jobs in regional Queensland. We have put $42 million on the table for the M1 merge upgrade and $44 million on the table for the upgrade of the M1 between Mudgeeraba and Varsity Lakes. The delivery of these safety and productivity projects needs an 80 per cent Australian government commitment under its own National Land Transport Network rules, which is exactly how the M1 is funded just across the border in New South Wales. The government also has a particular responsibility when it comes to safety on our roads and seas. We are implementing our Queensland road safety strategy and a two-year road safety action plan, which sets a long-term vision of zero deaths and serious injuries. We are well on the way to delivering our action plan, investing more than $500 million in 57 key initiatives, including motorcycle licensing reforms, wide centre-line treatment rollouts, double demerits for repeated mobile phone usage and the new Settle Down Stallion online digital campaign designed by young people for young drivers via our CO-LAB project. As more and more Queenslanders are heading out to enjoy our waterways, the Palaszczuk government has committed to a two-year $30 million extension to the Marine Infrastructure Fund for new and upgraded boat ramps, floating walkways and pontoons. Across my portfolio, we are also committed to the innovation agenda. In the energy sector we are at the cutting edge of battery technology and storage, and in transport and main roads we are preparing our community with intelligent transport systems. Ensuring Queenslanders continue to have access to a safe, reliable and cost-effective water supply is essential, and we are continuing planned upgrades to the state’s water infrastructure. Through keeping our government owned corporations such as Seqwater, SunWater and the newly merged Energy Queensland and our ports in public hands, we can continue to ensure they work for Queenslanders.