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Wednesday, 24 July 2019 ______ 24 Jul 2019 Estimates—Natural Resources, Mines and Energy 1 WEDNESDAY, 24 JULY 2019 _______________ ESTIMATES—STATE DEVELOPMENT, NATURAL RESOURCES AND AGRICULTURAL INDUSTRY DEVELOPMENT COMMITTEE—NATURAL RESOURCES, MINES AND ENERGY EST IMATES—N ATUR AL RESOURCES, MINES AND ENER GY Estimate Committee Members Mr CG Whiting (Chair) Mr PT Weir Mr DJ Batt Mr JE Madden Mr BA Mickelberg Ms JC Pugh _______________ Members in Attendance Mr MJ Hart Mr MC Berkman Mr SSJ Andrew Ms SL Bolton Mr Dr Last Mr AC Powell Mr AJ Perrett Mr RI Katter _______________ In Attendance Hon. AJ Lynham, Minister for Natural Resources, Mines and Energy Mr S Zanatta, Chief of Staff Mr P Woodland, Senior Policy Advisor Department of Natural Resources, Mines and Energy Mr J Purtill, Director-General Mr B Barr, Deputy Director-General, Policy Ms K Standen, Deputy Director-General, Energy Ms L Dobe, Deputy Director-General, Natural Resources Ms K Platt, Chief Finance Officer Mr A Feely, Deputy Director-General, Lands Mr S Ferris, Deputy Director-General, Georesources Mr M Stone, Executive Director, Resources Safety and Health Ms B Parker, Deputy Director-General, Business and Corporate Partnership Energy Queensland Limited Mr P Scott, Acting Chief Executive Officer 2 Estimates—Natural Resources, Mines and Energy 24 Jul 2019 Stanwell Corporation Limited Mr R Van Breda, Chief Executive Officer SunWater Ms N Hollows, Chief Executive Officer CleanCo Queensland Mr M George, Interim Chief Executive Officer _______________ The committee met at 9.00 am. CHAIR: Good morning. I declare this hearing of estimates for the State Development, Natural Resources and Agricultural Industry Development Committee open. I would like to acknowledge the traditional owners of the land upon which our parliament sits. I would like to introduce the members of the committee. My name is Chris Whiting, the chair of the committee and the member for Bancroft. Mr Pat Weir is the deputy chair and the member for Condamine. The other committee members are: Mr David Batt, the member for Bundaberg; Mr Jim Madden, the member for Ipswich West; Mr Brent Mickelberg, the member for Buderim; and Ms Jess Pugh, the member for Mount Ommaney. The committee has granted leave for non-committee members to ask questions at the hearing today, so other members may be present over the course of the proceedings. Mr Stephen Andrew, the member for Mirani, and Mr Michael Hart, the member for Burleigh, are here as well. Today the committee will consider the Appropriation Bill 2019 and estimates for the committee’s area of responsibility. I remind everyone present that any person may be excluded from the proceedings at my discretion as chair by order of the committee. The committee has authorised its hearing to be broadcast live, televised and photographed. Copies of the committee’s conditions for broadcasters of proceedings are available from the secretariat. I ask that mobile phones or other electronic devices be turned off or switched to silent mode. Please be advised that photography and video recording of the proceedings by officials or members of the public is prohibited. I also remind you that food and drink, other than water, are not permitted in the chamber. The committee will examine the portfolio areas in the following order: energy from 9.00 am to 10.00; land and water and titles and valuations from 10.00 to 11.00; mining and resources from 11.15 to 12.15; state development and manufacturing from 12.45 to 2.15 pm; infrastructure and planning from 2.30 to 3.45; agricultural industry development from 4.00 to 5.30 pm; and fisheries from 5.45 to 7.15 pm. The committee will now examine the proposed expenditure in the Appropriation Bill 2019 for the portfolio areas of the Minister for Natural Resources, Mines and Energy, and I welcome the minister. The committee will examine the minister’s portfolio until 12.15 pm and will suspend proceedings during this time for a break from 11.00 to 11.15 am. The visiting members accepted by the committee are: Mr Tim Mander, the member for Everton; Mr Jarrod Bleijie, the member for Kawana; Mr Andrew Powell, the member for Glass House; Mr Dale Last, the member for Burdekin; Mr Michael Hart, the member for Burleigh; Mr Tony Perrett, the member for Gympie; Ms Sandy Bolton, the member for Noosa; Mr Robbie Katter, the member for Traeger; Mr Jon Krause, the member for Scenic Rim; Mr Michael Berkman, the member for Maiwar; and Mr Stephen Andrew, the member for Mirani. I remind those present today that the committee’s proceedings are proceedings of the Queensland parliament and are subject to the standing rules and orders of the parliament. It is important that questions and answers remain relevant and succinct. The same rules for questions that apply in parliament also apply in this hearing. I refer to standing orders 112 and 115 in this regard. Questions should be brief and relate to one issue and should not contain lengthy or subjective preamble, arguments or opinions. I intend to guide proceedings today so that the relevant issues can be explored fully without imposing artificial time limits and to ensure there is adequate opportunity to address questions from government and non-government members of the committee. On behalf of the committee I welcome the Minister, the Director-General, departmental officers and members of the public to the hearing. For the benefit of Hansard I ask departmental officers to identify themselves the first time they speak or answer a question referred to them by the Minister or the Director-General. I now declare the proposed expenditure for the portfolio areas of natural resources, mines and energy open for examination. The question before the committee is— That the proposed expenditure be agreed to. 24 Jul 2019 Estimates—Natural Resources, Mines and Energy 3 Minister, if you wish you may make an opening statement of no more than five minutes. Dr LYNHAM: I too would like to acknowledge the traditional owners of the land on which this event is taking place today. The overriding goal of this government’s energy policy agenda is to ensure that Queenslanders continue to enjoy our energy trifecta: price, reliability and renewables. Queensland continues to have the lowest average wholesale prices on the eastern seaboard, and that is thanks to our $2 billion Affordable Energy Plan. Underpinned by public ownership of our electricity assets, this translates to two consecutive years of falling household power bills. We have the nation’s youngest fleet of coal-fired power stations and a $5 billion pipeline of renewable energy projects, 26 of them already generating more than 1,700 megawatts of clean energy with another 900 megawatts committed or underway. That means that more than 4,500 construction jobs have been created and will come to regional areas statewide. We are about to unleash the next wave of renewable energy and regional jobs, with 10 projects competing for contracts to kickstart new regional investments. As well, Queensland’s third publicly owned electricity generator, CleanCo, starts trading in the national electricity market on 31 October. From this date CleanCo takes over the Wivenhoe and Swanbank E power stations near Ipswich and three Far North Queensland hydro power stations. CleanCo will also complete the government’s Renewables 400 reverse auction. They are working with 10 shortlisted renewable energy proponents to bring on up to 400 megawatts of renewable generation and storage. Importantly, that means more new jobs building these projects in regional Queensland. CleanCo will seek binding bids from 10 proponents to supply renewable energy and recommend projects to government early next year. This will increase competition and supply in the Queensland electricity market, and that means more downward pressure on electricity prices for all Queensland families. Preliminary analysis indicates that CleanCo should reduce wholesale electricity prices on average by around $7 per megawatt hour, which is expected to translate to an estimated $70 per annum saving for the average Queensland household. This government continues to deliver on power prices. Electricity bills for the typical regional household have decreased by an average of 2.9 per cent a year over the past two years and 4.6 per cent a year for a typical small business. The 2019-20 budget before us includes around $500 million to ensure that regional Queenslanders pay similar prices for their electricity as customers in South-East Queensland. The Queensland Competition Authority estimates that regional customers would pay between eight per cent and 100 per cent more for their electricity than they currently do depending on where they live. QCA’s reporting on the South-East Queensland market has also shown small customer electricity prices falling in 2018-19 and again in 2019-20. In addition, the government continues to invest dividends from its government owned corporations to provide the second of two $50 asset ownership payments to around two million households. We recognise that even with these efforts to reduce prices some households will still struggle with their quarterly power bill. Our successful Energy Savvy Families program helps low-income households manage their energy costs. Between October 2018 and December 2019, 4,000 families will benefit from receiving a digital metre, having access to monthly billing, and access to information and advice on simple actions to reduce their energy use and save on their power bills. In 2020, Queensland will reach the milestone of 20 per cent renewable energy—well on target to achieve this Labor government’s target of 50 per cent renewables by 2030. We have the nation’s youngest fleet of reliable, efficient coal-fired power stations, with an incoming tide of affordable, renewable generation rolling in behind.
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