COMMONWEALTH OF

PARLIAMENTARY DEBATES

Senate Official Hansard No. 7, 2010 Wednesday, 23 June 2010

FORTY-SECOND PARLIAMENT FIRST SESSION—EIGHTH PERIOD

BY AUTHORITY OF THE SENATE

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FORTY-SECOND PARLIAMENT FIRST SESSION—EIGHTH PERIOD

Governor-General Her Excellency Ms Quentin Bryce, Companion of the Order of Australia

Senate Officeholders President—Senator Hon. John Joseph Hogg Deputy President and Chair of Committees—Senator Hon. Alan Baird Ferguson Temporary Chairs of Committees—Senators Guy Barnett, Thomas Mark Bishop, Suzanne Kay Boyce, Carol Louise Brown, Michaelia Clare Cash, Patricia Margaret Crossin, Michael George Forshaw, Annette Kay Hurley, Stephen Patrick Hutchins, Scott Ludlam, Gavin Mark Marshall, Julian John James McGauran, Claire Mary Moore, Scott Michael Ryan, Hon. Judith Mary Troeth and Russell Brunell Trood Leader of the Government in the Senate—Senator Hon. Christopher Vaughan Evans Deputy Leader of the Government in the Senate—Senator Hon. Stephen Michael Conroy Leader of the Opposition in the Senate—Senator Hon. Deputy Leader of the Opposition in the Senate—Senator Hon. George Henry Brandis SC Manager of Government Business in the Senate—Senator Hon. Joseph William Ludwig Manager of Opposition Business in the Senate—Senator Stephen Shane Parry Deputy Manager of Opposition Business in the Senate—Senator Mitchell Peter Fifield

Senate Party Leaders and Whips Leader of the —Senator Hon. Christopher Vaughan Evans Deputy Leader of the Australian Labor Party—Senator Hon. Stephen Michael Conroy Leader of the Liberal Party of Australia—Senator Hon. Eric Abetz Deputy Leader of the Liberal Party of Australia—Senator Hon. George Henry Brandis SC Leader of the Nationals—Senator Barnaby Thomas Gerard Joyce Deputy Leader of the Nationals—Senator Leader of the —Senator Robert James Brown Deputy Leader of the Australian Greens—Senator Christine Anne Milne Leader of the Family First Party—Senator Steve Fielding Chief Government Whip—Senator Kerry Williams Kelso O’Brien Deputy Government Whips—Senators Donald Edward Farrell and Anne McEwen Chief Opposition Whip—Senator Stephen Shane Parry Deputy Opposition Whips—Senators Judith Anne Adams and David Christopher Bushby The Nationals Whip—Senator John Reginald Williams Australian Greens Whip—Senator Rachel Mary Siewert Family First Party Whip—Senator Steve Fielding

Printed by authority of the Senate

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Members of the Senate Senator State or Territory Term expires Party Abetz, Hon. Eric TAS 30.6.2011 LP Adams, Judith Anne WA 30.6.2011 LP Arbib, Hon. Mark Victor NSW 30.6.2014 ALP Back, Christopher John (3) WA 30.6.2011 LP Barnett, Guy TAS 30.6.2011 LP Bernardi, Cory SA 30.6.2014 LP Bilyk, Catryna Louise TAS 30.6.2014 ALP Birmingham, Simon John SA 30.6.2014 LP Bishop, Thomas Mark WA 30.6.2014 ALP Boswell, Hon. Ronald Leslie Doyle QLD 30.6.2014 NATS Boyce, Suzanne Kay QLD 30.6.2014 LP Brandis, Hon. George Henry, SC QLD 30.6.2011 LP Brown, Carol Louise TAS 30.6.2014 ALP Brown, Robert James TAS 30.6.2014 AG Bushby, David Christopher TAS 30.6.2014 LP Cameron, Douglas Niven NSW 30.6.2014 ALP Carr, Hon. Kim John VIC 30.6.2011 ALP Cash, Michaelia Clare WA 30.6.2014 LP Colbeck, Hon. Richard Mansell TAS 30.6.2014 LP Collins, Jacinta Mary Ann VIC 30.6.2014 ALP Conroy, Hon. Stephen Michael VIC 30.6.2011 ALP Coonan, Hon. Helen Lloyd NSW 30.6.2014 LP Cormann, Mathias Hubert Paul (2) WA 30.6.2011 LP Crossin, Patricia Margaret (4) NT ALP Eggleston, Alan WA 30.6.2014 LP Evans, Hon. Christopher Vaughan WA 30.6.2011 ALP Farrell, Donald Edward SA 30.6.2014 ALP Faulkner, Hon. John Philip NSW 30.6.2011 ALP Feeney, David Ian VIC 30.6.2014 ALP Ferguson, Hon. Alan Baird SA 30.6.2011 LP Fielding, Steve VIC 30.6.2011 FF Fierravanti-Wells, Concetta Anna NSW 30.6.2011 LP Fifield, Mitchell Peter VIC 30.6.2014 LP Fisher, Mary Jo (1) SA 30.6.2011 LP Forshaw, Michael George NSW 30.6.2011 ALP Furner, Mark Lionel QLD 30.6.2014 ALP Hanson-Young, Sarah Coral SA 30.6.2014 AG Heffernan, Hon. William Daniel NSW 30.6.2011 LP Hogg, Hon. John Joseph QLD 30.6.2014 ALP Humphries, Gary John Joseph (4) ACT LP Hurley, Annette Kay SA 30.6.2011 ALP Hutchins, Stephen Patrick NSW 30.6.2011 ALP Johnston, Hon. David Albert Lloyd WA 30.6.2014 LP Joyce, Barnaby Thomas Gerard QLD 30.6.2011 NATS Kroger, Helen VIC 30.6.2014 LP Ludlam, Scott WA 30.6.2014 AG Ludwig, Hon. Joseph William QLD 30.6.2011 ALP Lundy, Kate Alexandra (4) ACT ALP Macdonald, Hon. Ian Douglas QLD 30.6.2014 LP ii

Senator State or Territory Term expires Party McEwen, Anne SA 30.6.2011 ALP McGauran, Julian John James VIC 30.6.2011 LP McLucas, Hon. Jan Elizabeth QLD 30.6.2011 ALP Marshall, Gavin Mark VIC 30.6.2014 ALP Mason, Hon. Brett John QLD 30.6.2011 LP Milne, Christine Anne TAS 30.6.2011 AG Minchin, Hon. Nicholas Hugh SA 30.6.2011 LP Moore, Claire Mary QLD 30.6.2014 ALP Nash, Fiona Joy NSW 30.6.2011 NATS O’Brien, Kerry Williams Kelso TAS 30.6.2011 ALP Parry, Stephen Shane TAS 30.6.2011 LP Payne, Marise Ann NSW 30.6.2014 LP Polley, Helen Beatrice TAS 30.6.2011 ALP Pratt, Louise Clare WA 30.6.2014 ALP Ronaldson, Hon. Michael VIC 30.6.2011 LP Ryan, Scott Michael VIC 30.6.2014 LP Scullion, Hon. Nigel Gregory (4) NT CLP Sherry, Hon. Nicholas John TAS 30.6.2014 ALP Siewert, Rachel Mary WA 30.6.2011 AG Stephens, Hon. Ursula Mary NSW 30.6.2014 ALP Sterle, Glenn WA 30.6.2011 ALP Troeth, Hon. Judith Mary VIC 30.6.2011 LP Trood, Russell Brunell QLD 30.6.2011 LP Williams, John Reginald NSW 30.6.2014 NATS Wong, Hon. Penelope Ying Yen SA 30.6.2014 ALP Wortley, Dana Johanna SA 30.6.2011 ALP Xenophon, Nicholas SA 30.6.2014 IND (1) Chosen by the Parliament of South Australia to fill a casual vacancy vice Amanda Eloise Vanstone, resigned. (2) Chosen by the Parliament of Western Australia to fill a casual vacancy vice Ian Campbell, resigned. (3) Chosen by the Parliament of Western Australia to fill a casual vacancy vice Christopher Martin Ellison, resigned. (4) Term expires at close of day next preceding the polling day for the general election of members of the House of Representatives.

PARTY ABBREVIATIONS AG—Australian Greens; ALP—Australian Labor Party; CLP—; FF—Family First Party; LP—Liberal Party of Australia; NATS—The Nationals Heads of Parliamentary Departments Clerk of the Senate—R Laing Clerk of the House of Representatives—B Wright Secretary, Department of Parliamentary Services—A Thompson

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RUDD MINISTRY Prime Minister Hon. Kevin Rudd MP Deputy Prime Minister, Minister for Education, Minister for Hon. Julia Gillard MP Employment and Workplace Relations and Minister for Social Inclusion Treasurer Hon. Wayne Swan MP Minister for Immigration and Citizenship and Leader of the Senator Hon. Chris Evans Government in the Senate Minister for Defence and Vice President of the Executive Senator Hon. John Faulkner Council Minister for Trade Hon. Simon Crean MP Minister for Foreign Affairs and Deputy Leader of the House Hon. Stephen Smith MP Minister for Health and Ageing Hon. Nicola Roxon MP Minister for Families, Housing, Community Services and Hon. Jenny Macklin MP Indigenous Affairs Minister for Finance and Deregulation Hon. Lindsay Tanner MP Minister for Infrastructure, Transport, Regional Development Hon. Anthony Albanese MP and Local Government and Leader of the House Minister for Broadband, Communications and the Digital Senator Hon. Stephen Conroy Economy and Deputy Leader of the Government in the Senate Minister for Innovation, Industry, Science and Research Senator Hon. Kim Carr Minister for Climate Change, Energy Efficiency and Water Senator Hon. Penny Wong Minister for Environment Protection, Heritage and the Arts Hon. Peter Garrett AM, MP Attorney-General Hon. Robert McClelland MP , Special Minister of State and Manager of Senator Hon. Joe Ludwig Government Business in the Senate Minister for Agriculture, Fisheries and Forestry and Minister for Hon. Tony Burke MP Population Minister for Resources and Energy and Minister for Tourism Hon. Martin Ferguson AM, MP Minister for Human Services and Minister for Financial Services, Hon. Chris Bowen MP Superannuation and Corporate Law

[The above ministers constitute the cabinet]

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RUDD MINISTRY—continued Minister for Veterans’ Affairs and Minister for Defence Hon. Alan Griffin MP Personnel Minister for Housing and Minister for the Status of Women Hon. Tanya Plibersek MP Minister for Home Affairs Hon. Brendan O’Connor MP Minister for Indigenous Health, Rural and Regional Health and Hon. MP Regional Services Delivery Minister for Small Business, Independent Contractors and the Hon. Dr Craig Emerson MP Service Economy, Minister Assisting the Finance Minister on Deregulation and Minister for Competition Policy and Consumer Affairs Assistant Treasurer Senator Hon. Nick Sherry Minister for Ageing Hon. Justine Elliot MP Minister for Early Childhood Education, Childcare and Youth Hon. Kate Ellis MP and Minister for Sport Minister for Defence Materiel and Science and Minister Hon. Greg Combet AM, MP Assisting the Minister for Climate Change and Energy Efficiency Minister for Employment Participation and Minister Assisting Senator Hon. Mark Arbib the Prime Minister for Government Service Delivery for Infrastructure, Transport, Regional Hon. Maxine McKew MP Development and Local Government Parliamentary Secretary for Defence Support and Parliamentary Hon. Dr Mike Kelly AM, MP Secretary for Water Parliamentary Secretary for Western and Northern Australia Hon. Gary Gray AO, MP Parliamentary Secretary for Disabilities and Children’s Services Hon. Bill Shorten MP and Parliamentary Secretary for Victorian Bushfire Reconstruction Parliamentary Secretary for International Development Hon. Bob McMullan MP Assistance Parliamentary Secretary to the Prime Minister and Parliamentary Hon. Anthony Byrne MP Secretary for Trade Parliamentary Secretary for Social Inclusion and Parliamentary Senator Hon. Ursula Stephens Secretary for Voluntary Sector Parliamentary Secretary for Multicultural Affairs and Settlement Hon. Laurie Ferguson MP Services Parliamentary Secretary for Employment Hon. Jason Clare MP Parliamentary Secretary for Health Hon. Mark Butler MP Parliamentary Secretary for Innovation and Industry Hon. Richard Marles MP

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SHADOW MINISTRY

Leader of the Opposition Hon. MP Shadow Minister for Foreign Affairs and Deputy Leader of the Hon. MP Opposition Shadow Minister for Trade, Transport and Local Government Hon. Warren Truss MP and Leader of The Nationals Shadow Minister for Energy and Resources Hon. Ian Macfarlane MP Shadow Minister for Employment and Workplace Relations and Senator Hon. Eric Abetz Leader of the Opposition in the Senate Shadow Treasurer Hon. MP Shadow Minister for Education, Apprenticeships and Training Hon. MP and Manager of Opposition Business in the House Shadow Attorney-General and Deputy Leader of the Opposition Senator Hon. SC in the Senate Shadow Minister for Defence Senator Hon. David Johnston Shadow Minister for Health and Ageing Hon. MP Shadow Minister for Families, Housing and Human Services Hon. Kevin Andrews MP Shadow Minister for Climate Action, Environment and Heritage Hon. MP Shadow Minister for Indigenous Affairs and Deputy Leader of Senator Hon. The Nationals Shadow Minister for Regional Development and Water and Senator Leader of the Nationals in the Senate Shadow Minister for Agriculture, Food Security, Fisheries and Hon. John Cobb MP Forestry Shadow Minister for Small Business, Deregulation, Competition Hon. MP Policy and Sustainable Cities Shadow Minister for Broadband, Communications and the Hon. Tony Smith MP Digital Economy Shadow Minister for Immigration and Citizenship Mr MP Shadow Minister for Innovation, Industry, Science and Research Mrs Sophie Mirabella MP Shadow Minister for Finance and Debt Reduction and Chairman Hon. AO MP of the Policy Development Committee

[The above constitute the shadow cabinet]

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SHADOW MINISTRY—continued

Shadow Minister for Tourism and the Arts and Shadow Minister Mr MP for Youth and Sport Shadow Minister for Employment Participation, Apprenticeships Senator and Training Shadow Minister for Consumer Affairs, Financial Services, Mr MP Superannuation and Corporate Law and Deputy Manager of Opposition Business in the House Shadow Assistant Treasurer Hon. MP Shadow Minister for COAG and Modernising the Federation Senator Shadow Minister for Early Childhood Education and Childcare Hon. Dr Sharman Stone MP and Shadow Minister for the Status of Women Shadow Minister for Justice, Customs and Border Protection Mr Michael Keenan MP Shadow Minister for Defence Science and Personnel and Hon. MP Assisting Shadow Minister for Defence Shadow Minister for Veterans Affairs Mrs Louise Markus MP Shadow Minister for Ageing Senator Concetta Fierravanti-Wells Shadow Minister for Seniors Hon. Bronwyn Bishop MP Shadow Special Minister of State and Scrutiny of Government Senator Hon. Waste Shadow Parliamentary Secretary Assisting the Leader of the Senator Cory Bernardi Opposition and Shadow Parliamentary Secretary for Infrastructure and Population Policy Shadow Parliamentary Secretary for Northern and Remote Senator Hon. Ian Macdonald Australia Shadow Parliamentary Secretary for Roads and Transport Mr Don Randall MP Shadow Parliamentary Secretary for Regional Development and Mr MP Emerging Trade Markets Shadow Parliamentary Secretary for Tourism Mrs Jo Gash MP Shadow Parliamentary Secretary for Education and School Senator Hon. Curriculum Standards Shadow Parliamentary Secretary for the Murray Darling Basin Senator and Shadow Parliamentary Secretary for Climate Action Shadow Parliamentary Secretary for Public Security and Policing Mr Jason Wood MP Shadow Parliamentary Secretary for Defence Mr MP Shadow Parliamentary Secretary for Regional Health Services, Dr Andrew Southcott MP Health and Wellbeing Shadow Parliamentary Secretary for Disabilities, Carers and the Senator Voluntary Sector and Deputy Manager of Opposition Business in the Senate Shadow Parliamentary Secretary for Families, Housing and Senator Gary Humphries Human Services and Shadow Parliamentary Secretary for Citizenship Shadow Parliamentary Secretary for Agriculture, Fisheries and Senator Hon. Forestry and Shadow Parliamentary Secretary for Innovation, Industry, Science and Research

vii CONTENTS

WEDNESDAY, 23 JUNE Chamber Opening Of Parliament...... 4065 Renewable Energy (Electricity) Amendment Bill 2010, Renewable Energy (Electricity) (Charge) Amendment Bill 2010, and Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010— In Committee ...... 4071 Matters of Public Interest— Hospitals ...... 4101 Mental Health...... 4105 Food Labelling...... 4108 Water...... 4108 Gambling...... 4108 Parkinson’s Disease...... 4111 Go Red for Women ...... 4111 Australian Council of Trade Unions ...... 4115 Questions Without Notice— Broadband...... 4118 Afghanistan...... 4120 Broadband...... 4121 Aged Care ...... 4123 Building the Education Revolution Program ...... 4124 Digital Television...... 4127 Budget ...... 4128 Gambling...... 4129 Home Insulation Program ...... 4131 Questions Without Notice: Take Note of Answers— Budget ...... 4132 Government Advertising— Return to Order ...... 4138 Condolences— Private Timothy Aplin...... 4139 Private Benjamin Chuck ...... 4139 Private Scott Palmer...... 4139 Notices— Presentation...... 4145 Withdrawal...... 4155 Committees— Selection of Bills Committee—Report ...... 4156 Business— Consideration of Legislation—Variation ...... 4158 Notices— Postponement...... 4159 Education, Employment and Workplace Relations Legislation Committee: Attendance of Witness...... 4159 Committees— Fuel and Energy Committee—Resolution of Appointment ...... 4160 Last Resort Builders’ Home Warranty Insurance ...... 4160

CONTENTS—continued

Committees— Legal and Constitutional Affairs References Committee—Reference...... 4161 Foreign Affairs, Defence and Trade References Committee—Reference...... 4161 Rural and Regional Affairs and Transport References Committee—Reference ...... 4161 Rural and Regional Affairs and Transport References Committee—Extension of Time4162 Timor Sea oil spill— Order ...... 4162 National Aboriginal and Islander Children's Day...... 4163 Mobile Phone Chargers ...... 4163 Koala Population ...... 4164 Committees— Corporations and Financial Services Committee—Meeting...... 4166 Business— Rearrangement ...... 4166 Renewable Energy (Electricity) Amendment Bill 2010, Renewable Energy (Electricity) (Charge) Amendment Bill 2010, and Renewable Energy (Electricity) (Small-scale Technology Shortfall Charge) Bill 2010— In Committee ...... 4167 Committees— Scrutiny of Bills Committee—Report...... 4181 Senators’ Interests Committee—Register ...... 4183 Finance and Public Administration References Committee—Additional Information.. 4183 Ministerial Statements— Afghanistan...... 4183 E-Health Reform...... 4194 Petitions— Community Sector Funding ...... 4195 Documents— Registrar of Senate Senior Executive Officers’ Interests ...... 4195 Appropriations— Correspondence—Tabling...... 4195 Auditor-General’s Reports— Report Nos 47 and 48 of 2009-10...... 4195 Committees— Environment, Communications and the Arts Legislation Committee— Report: Government Response ...... 4195 Reports: Government Responses ...... 4197 Energy Efficient Homes Package— Return to Order ...... 4205 Government Advertising— Return to Order ...... 4205 Documents— Tabling ...... 4209 International Monetary Agreements Amendment Bill (No. 1) 2010— First Reading...... 4209 Second Reading...... 4209 Budget— Consideration by Estimates Committees—Reports ...... 4210

CONTENTS—continued

Committees— Rural and Regional Affairs and Transport Legislation Committee—Report ...... 4210 Finance and Public Administration References Committee—Report ...... 4210 Rural and Regional Affairs and Transport References Committee—Report ...... 4213 Documents...... 4214 Adjournment— Baby Safe Havens ...... 4214 Professor Christopher Nordin ...... 4216 Muresk Institute of Agriculture...... 4219 Victorian Ombudsman: Investigation into Brimbank City Council...... 4220 Documents— Tabling ...... 4223 Tabling ...... 4225 Questions On Notice Hawker Britton—(Question Nos 2608, 2627, 2631 and 2633)...... 4226 Export Finance and Insurance Corporation—(Question No. 2751)...... 4226 Civil Aviation Safety Authority—(Question No. 2794)...... 4229 Infrastructure, Transport, Regional Development and Local Government: Program Funding—(Question No. 2798)...... 4230 Customs Services—(Question No. 2803) ...... 4231 Attorney-General’s: Privacy Complaints—(Question No. 2815) ...... 4231

Wednesday, 23 June 2010 SENATE 4065

Wednesday, 23 June 2010 welcome to country is performed by the tra- ————— ditional owner of the land on which we The PRESIDENT (Senator the Hon. stand. It is the act of welcoming others onto John Hogg) took the chair at 9.30 am and your traditional lands, to wish them safety read prayers. and honour the history of a place. It is a long time honoured Indigenous tradition that pre- OPENING OF PARLIAMENT dates the arrival of Europeans to Australia Senator CHRIS EVANS (Western Aus- and was used between different groups of tralia—Leader of the Government in the Australia’s first peoples. Senate) (9.31 am)—I move: Australia is a great nation and part of our That the Senate is of the view that the declara- greatness is our ancient and unique cultural tion of the opening of Parliament should be pre- heritage. We can feel proud of this. It is part ceded by an Indigenous ‘Welcome to Country’ of who we all are as Australians. It is a ceremony. shame that the opposition do not seem able I seek the Senate’s support for the declara- to support this resolution. Welcome to coun- tion that the opening of parliament should be try recognises the role of Australia’s first preceded by an Indigenous welcome to coun- peoples as custodians of the oldest continu- try ceremony, which would take place at the ing cultures in human history. It is a simple first meeting of a new parliament after a fed- act but, at the heart of it, it is one of respect. I eral election. The Rudd Labor government is urge the Senate to support this resolution to committed to working with Aboriginal and formally commit to a welcome to country Torres Strait Islander people to progress rec- being part of the opening of a new parlia- onciliation and it is a key element of the ment. government’s objective of closing the gap in We were very proud to have a welcome to Indigenous disadvantage. Increased invest- country to open this parliament, an event ment and reform are important, necessary which received bipartisan support. At the steps. But they are not sufficient for closing event on the 12 February 2008 the Prime the gap. Minister, Kevin Rudd, said: We came to government knowing that Exactly 100 years ago the land on which we stand change was needed on emotional as well as was chosen as the site as the nation’s first capital. practical levels. We knew that for too long Eighty years ago, we built an old Parliament Indigenous people had felt like outsiders in House and 20 years ago, we built this new great their home. We recognise the great impor- house of the Australian democracy. Yet the human tance of pride in identity in shaping aspira- history of this land stretches back thousands of tions and choices. That is why the Rudd La- years through the dream time. Despite this antiq- bor government’s first official business in uity among us, and despite the fact that parlia- coming to government was to deliver the ments have been meeting here for the better part national apology to Australia’s Indigenous of a century, today is the first time in our history that as we open the parliament of the nation, that peoples, in particular to the stolen genera- we are officially welcomed to country by the first tions. The apology created the opportunity Australians of this nation … let us resolve here, for a shared future and a fresh beginning for as Members and Senators and Members of this Indigenous and non-Indigenous Australians. great Parliament of the Commonwealth, that Being welcomed onto country by tradi- whoever forms future Governments of the nation, tional owners is now acknowledged as an let this become a permanent part of our ceremo- important gesture by many Australians. A nial celebration of the Australian democracy.

CHAMBER 4066 SENATE Wednesday, 23 June 2010

That was the government’s commitment to ernment’s time today at the end of a very try and enshrine welcome to country as part heavy legislative agenda—having criticised, of the start of the new parliament to reaffirm as the Prime Minister has, the Senate delay- that connection with the traditional owners ing the government’s legislative timetable— and with our first peoples. the Leader of the Government has gotten up I note that then opposition leader Mr in the Senate to take up time that could have said at this event: been devoted to going through with the gov- ernment’s legislative timetable. I join in supporting the remarks very strongly of the Prime Minister. I don’t think the openings of Senator Chris Evans—If you’re not op- our Parliaments will ever be the same again and posing it, just let it go through. that is good … I assure you on behalf of the alter- Senator ABETZ—It is quite clear now native government, in supporting the Prime Min- what is more urgent for this particular gov- ister, that whatever happens in future parliaments, so long as I have anything to do with it, that we ernment. I cannot help but think that the ur- will have a welcome from Ngunnawal and their gency of dealing with this motion today descendants. comes from the government’s embarrass- Matilda House, the elder who delivered this ment at having voted against the wild rivers welcome to country, said it was one thing: legislation yesterday. We on the coalition proper respect. So I hope that all senators side listened to the Indigenous people of will support this motion and support giving a Cape York and we supported their aspira- welcome to country ceremony a formal place tions— in the opening of all future parliaments. Senator Chris Evans—The mad right- Those of us who have visited the New wingers are in charge! The zealots are in Zealand parliament understand the important charge! role the Maori culture is given in the opera- Senator ABETZ—This, allegedly, was to tion of their parliament. One of the few be a debate that was going to lift the parlia- things that are unique about our democracy ment, and the Leader of the Government, is our Indigenous people. The connection with his very divisive interjections, is just with them in the opening of parliament re- showing what this debate is all about from flects the development and the continuity of the government’s point of view. It is to try to Australian democracy. put a wedge into the Australian community This is an important motion for the Senate over this issue. We in the coalition believe it to support. The last opening of parliament should be a decision for each government to was a much more significant event for the determine from time to time— inclusion of the welcome to country. I urge Senator Chris Evans—That’s not what the Senate to support this resolution that Brendan Nelson said. Brendan Nelson com- commits us to supporting such a welcome at mitted to it. the opening of every parliament. Senator ABETZ—This has just been a Senator ABETZ (Tasmania—Leader of barrage of non-stop interjections from an the Opposition in the Senate) (9.37 am)—I embarrassed Leader of the Government in indicate that the coalition does not support this place, out of control with his legislative the resolution. In saying that, we will not be agenda, trying to blame us for delaying pro- opposing it by a formal division in this place. cedures and then bringing on a motion such It is somewhat astounding that in the gov- as this for no real reason. This is about the opening of the next parliament. Aren’t we

CHAMBER Wednesday, 23 June 2010 SENATE 4067 resuming in August? What is the urgency of tical application and benefit to Indigenous bringing this up on the very last day, in ef- communities. fect, that this Senate will be dealing with If we want to talk about the aspirations of legislation? the Indigenous community, I ask those oppo- You have to ask: what was the urgency of site to listen to the views of an Aboriginal bringing it up today? I suggest the urgency is leader who is their former federal president that the government knows that it is very in relation to the impact on Indigenous em- much out of touch with the practical aspira- ployment of their mining tax. Being con- tions of the Indigenous people in this coun- fronted with Mr Mundine pointing out to try, who wanted and want this parliament to them the difficulties that will be visited upon pass the wild rivers legislation. We in fact the Indigenous community by the mining tax have lived up to the expectations of the In- and being confronted with having voted digenous people. We have sought to deliver against the wild rivers legislation—both ma- for them in a very practical and real way jor issues in the Indigenous community abso- which will benefit their communities in the lutely undermining its right to self- Cape York area. determination and to fulfil its aspirations— Yet the Labor Party and the Greens delib- what does the Labor Party do? Rush in this erately voted yesterday evening to seek to morning and say the issue of the day has to deny the aspirations of the Indigenous people be a welcome to country ceremony once in the Cape York area. They rush in here to- every three years. day to say, ‘Aren’t we really good fellows I think the Indigenous community and the for you, because we want to have a welcome vast majority of Australians will see through to country at the beginning of each parlia- this motion by the Leader of the Government ment?’ What will be for the true long-term in the Senate when it is seen in the context of welfare of the Indigenous people: a welcome what Labor has been doing in relation to In- to country on each occasion the parliament digenous aspirations just yesterday with the opens or giving the wild rivers back to the wild rivers legislation and also in relation to Indigenous people so that they can actually the mining tax. I do not seek to delay the live with their country and get some eco- Senate any further. nomic benefit and return from their country? Senator Moore interjecting— Senator Moore—Your position on native Senator ABETZ—We have a Labor sena- title? tor laughing about that. I am entitled to speak Senator ABETZ—I hear an interjection, on this, Senator, for 20 minutes. I will not unfortunately, from one of the Labor sena- even take half my time because I am con- tors. As a former chair of the Joint Commit- cerned—the government actually has con- tee on Native Title and the Aboriginal and vinced me about this—that there is a legisla- Torres Strait Islander Land Fund, I know the tive agenda to get through and that is why I very good work that I was able to do with have truncated my remarks. Our view on the my good friend and colleague Senator opposition side is this: we are not opposed to Minchin. He put through this parliament the welcome to country ceremonies per se, but Indigenous land use agreements. They were we believe it should be a decision for each fought by the tokenism of others in this government to determine the appropriateness place, but they have been of very real, prac- of the ceremonies and other things before the

CHAMBER 4068 SENATE Wednesday, 23 June 2010 opening of each parliament without actually has been brought in today not to help the having a resolution from this Senate. plight of Indigenous people—and I acknowl- Senator JOYCE (Queensland—Leader of edge that there is much that needs to be done the Nationals in the Senate) (9.45 am)— especially around empowering Indigenous Congratulations, Mr Acting Deputy President people—but as a political stunt. By bringing Ludlam. You are looking very proper up it in as a political stunt you are actually ridi- there. The National Party represents a large culing the whole process. Why did you do section of the Indigenous community. In fact this? Why do we not have a more complete one of our seats, namely the electorate of debate about the mechanisms and ways we Parkes, has a larger number of Indigenous can take the Indigenous people forward? I people than any other electorate. We are very would like to see that. aware of the fact that we want an engaged What Labor governments around our na- relationship with the first occupants of this tion have done is to use Indigenous people in nation. I have a great desire for the greatest many instances as a whipping post, locking form of inclusion of the Kamilaroi people up their access to the development of their and to the north of me the Mandandanji peo- wealth with things like the wild rivers legis- ple but I do have an immense sense of cyni- lation. What consultation did the Indigenous cism about how this has found its way onto people of the Gulf have on that? What have the agenda today. you left those people except destitution in What opportunity do I have to go back perpetuity? There is no point in having a and talk to the Kamilaroi or Mandandanji welcoming ceremony and a sorry day and people about this and deal with the issues? then in the next breath doing things like that Maybe they would like to be involved in this to them. In my area you have created uncer- process in some way, shape or form. But it is tainty over water rights. The greatest mecha- not about that. This is yet another form of nism of social advancement for Indigenous tokenistic approach to Indigenous issues. I people in my area has been compromised. am sure that Indigenous people like the I would have liked the opportunity to go Murri people of my area would be far more back and have a yarn to the elders in my engaged if the Labor Party were to come town, including Poddy Waters, about this and forward with a distinct program of regional ask him in what form and in what fashion he development, with the securing of water would like recognition of Indigenous people rights so that they can have employment or at the start of parliament. I would have liked with programs to economically advance the opportunity to have that discussion with them. Those are the sorts of programs that him. But I do not. The National Party will be people want. Those are the sorts of programs supporting this motion, but we will be sup- that have a real aspect of bringing improve- porting it in a fashion under duress because ments to people’s lives. we are playing into your little political game, The National Party senators, such as Sena- your little argument of division. Once more tor Scullion, Senator Nash, Senator Williams you are trying to use a foisted motion to gar- and me, who actually live in communities ner a view that is not a true reflection of your with Indigenous people, who do not live in actions. the suburbs and just talk about them, would This will be called for what it is. It is yet have appreciated more time to have a consul- again a stunt because there was no form of tative engagement in this process. But this wider engagement with the key stakeholders,

CHAMBER Wednesday, 23 June 2010 SENATE 4069 the Indigenous people. I would like to know Senator Abetz said that the government what sort of engagement you had with them should determine such matters. I would have prior to this. I would like to see the discus- thought that a Leader of the Opposition in sions with the key stakeholders on this mo- the Senate would know that we are a democ- tion but there were none. You know the game racy, where parliament makes decisions on you play. If we vote against it because we its own processes. That is not a right, and call it a disingenuous stunt, you will play the never should be, handed across to the gov- wedge politics and say the coalition does not ernment executive. We are being asked here have the views of Indigenous people at heart. to mark the start of parliaments with a wel- You have been very mischievous in the proc- come to country from the first Australians. It ess that has brought this motion about and can be seen as a ceremonial without effect on you will be called as such. the true wellbeing of Indigenous people, but We would like to say to the Indigenous I believe that such symbolism, such recogni- people of my own area—to the Kamilaroi tion and the pride in country that comes from people, the Mandandanji people and the that are of themselves essential and impor- Murris in general—that we want to have a tant for all of us in recognising the extraordi- form of engagement that goes beyond the nary and at times devastating and harrowing tokenism to social advancement over the history of the Indigenous people of this long term, because that is essential unless country since 1788. The welcome to country you want the ‘sorry’ statement and this preceding parliamentary procedures is a very statement to be the only things that you offer fitting way to take another step towards do- Indigenous Australia. Is that it? A highfalu- ing the best we can—though we can never ting tokenism and a form of wedge politics is make amends—to change the course of his- what the Labor Party intends to offer Indige- tory from the past into a new future. nous Australia, and it thinks that we are all So the Greens welcome this proposal. It is foolish enough to fall for this eleventh-hour, a matter for parliament. While the govern- 59th-minute piece of wedge politics before ment has brought forward this motion, it will the parliament rises. be widely accepted by the public, includ- Senator BOB BROWN (Tasmania— ing—if we take that reaction to the welcome Leader of the Australian Greens) (9.52 to country back in 2007—Indigenous Austra- am)—The Australian Greens wholeheartedly lians. I think it is a pity it is being turned into support this motion for there to be a wel- a political debate. Maybe it is a pity that it come to country at the start of parliaments. I has come so late in the procedures from the am pleased to hear, even though I note the government, almost as an afterthought, but it argument that went with it, that the Nationals is a very important and good afterthought. will also support it. I was disappointed to The process is right. It is the right thing to hear that the Liberal Party will not. That said, do. My colleagues wholeheartedly support I think the overwhelming support nationally this move, congratulate the government for for the ceremony which took place at the bringing it forward and look forward to the start of this parliament is an indication of the next ceremony to begin the next sessions of huge welcome there will be for this move parliament in this great democracy of ours. that is being made by the government in the Senator BOSWELL (Queensland) (9.56 parliament today. am)—I have no problem with welcome to country ceremonies—in fact, sometimes they are initiated by the National Party when the

CHAMBER 4070 SENATE Wednesday, 23 June 2010

Aboriginal community want to do them—but that, and today you come in with a mealy- what I do have a problem with is that this is a mouthed proposition to have welcome to masterpiece of mistiming. How can the La- country ceremonies. If there was ever an bor Party and the Greens support this after empty, clanging gong, that was it. trying to remove every right of the Aborigi- I do not know how you can have the au- nal community in Cape York, depriving them dacity to put this proposition to the parlia- of their land—not only native title land but ment after you completely took away every deed of grant in trust land that was given to right that the Aboriginals had in Cape York. them by Joh Bjelke-Petersen when he was You ought to be ashamed of yourself. What Premier? They came in and said: ‘You can’t makes it worse is that you are rubbing salt use that land anymore. This is under wild into the raw wound. If only you had any rivers legislation. Sorry—you can’t even put thought for Aboriginals; if only you ever in a market garden and clear land if it’s in a considered Aboriginals and not just the pref- high-preservation area.’ erences organised by the Wilderness Society The Aboriginals were told that this was and the Greens—you have lost the right to wild rivers legislation. Wild rivers legislation call yourself the political home of Aborigi- became wild basin legislation, and wild basin nals. You walked out on that last night. You legislation took in every creek, every river, do not deserve it and the Aboriginals will every stream and every spring. It became not wake up to you. You give them clanging wild rivers— gongs and symbols. You do not give them a Senator Joyce—Just wild! right to earn their own living. You do not give them a right to own their own land. You Senator BOSWELL—It was just wild, give them a right that is frozen in time—that and people have been deprived of their ca- they can have a ceremony on the land, they pacity to earn. I will get this right, because I can fish and they can hunt. do not want to mislead the parliament: the Bligh government has ruined the economic That is all they can do with those millions opportunities of Indigenous people by ignor- and millions of hectares of land that were ing their rights and imposing unilateral de- given to them by various governments. You velopment constraints across vast river ba- have walked away from native title. You do sins covering 80 per cent of the cape. not deserve ever to get another Aboriginal vote. You have sold out to the Wilderness You must totally underestimate the Abo- Society for 30 pieces of preferences. You riginal community. You want to give them know, and it is well known and well docu- beads and mirrors. That is past: they want mented, this Wild Rivers deal was done by education and they do not want welfare. the Wilderness Society to get preferences for They have had 80 years of welfare, and all it Queensland Premier Anna Bligh. What a has led them to is total misery. You have de- betrayal of the Aboriginal people. Do not prived them of their livelihoods; you voted come in here with this stupid, mealy- against them yesterday. You have deprived mouthed welcome to country, which we have them of their livelihoods, you have deprived no objection to. What you are trying to do is them of their land, you have deprived them give them beads and mirrors and take away of their rights and you want them to sit there their right to earn a decent living. and, as Noel Pearson said, pick berries in the sunset. That is what you have locked them You have closed down a mine that would into. Only yesterday you locked them into give them 400 to 500 jobs if they wanted

CHAMBER Wednesday, 23 June 2010 SENATE 4071 them. That is not going to happen overnight, the role of the first Australians in this na- but there has to be a start somewhere. But tion’s history and the role that we need to you are driving them backwards. And you play to ensure that levels of poverty and lev- come in here and put forward a mirror and els of deprivation in Indigenous communities symbols. I cannot believe that you would are addressed as a matter of urgency. I sup- ever do this, that you would have the audac- port this motion, I believe it is appropriate ity to do it. Surely you could have put this and I would like to think that there is com- off for a couple of days or addressed it next mon ground in the chamber to say that this term. The Labor Party and the Greens have ceremony will have both symbolic and prac- no right to call themselves the friends of tical effects. I think that is a good thing Aboriginals ever again. Question agreed to. Senator XENOPHON (South Australia) RENEWABLE ENERGY (10.02 am)—Mr Acting Deputy President (ELECTRICITY) AMENDMENT Ludlam, this is the first time I have ad- BILL 2010 dressed you as that in your role and I con- RENEWABLE ENERGY gratulate you. I have a lot of regard for Sena- (ELECTRICITY) (CHARGE) tor Boswell—he is the father of the house— AMENDMENT BILL 2010 but, with the greatest respect to Senator Boswell, I think he is being unfair in the way RENEWABLE ENERGY that he has characterised this debate. This (ELECTRICITY) (SMALL-SCALE debate is about a welcome to country cere- TECHNOLOGY SHORTFALL mony. The Wild Rivers legislation is a com- CHARGE) BILL 2010 pletely distinct issue and I would like to In Committee think that Senator Boswell may consider Consideration resumed from 22 June. some common ground in relation to this. I The TEMPORARY CHAIRMAN think it is appropriate that the first Austra- (Senator Ludlam)—We are dealing with lians be acknowledged and be part of the Greens amendments (4), (9) and (1) on sheet opening ceremony of this parliament, and 6114. Senator Boswell agrees with that. Another important factor in relation to this, if it is Senator MILNE (Tasmania) (10.04 passed as I hope it will be, is that it will drive am)—I rise to respond to Senator Colbeck’s home to each and every representative in this analysis of these amendments to the Renew- nation’s parliament the importance of having able Energy (Electricity) Amendment Bill Indigenous issues at the forefront of our 2010 and related bills. These amendments minds because we know so much needs to be are to remove any view that native forest done. biomass can be used to generate renewable energy certificates. Yesterday Senator Col- Senator Boswell—But we’re not doing it. beck mentioned that WWF Australia sup- Senator XENOPHON—Senator Boswell ported biomass energy. The report on For- is right in part in that we need to do much, estry Tasmania’s website is a WWF report, much more. I think a welcome to country but it refers to biomass in Europe not bio- ceremony is not only appropriate from a mass in Australia and so WWF have put out symbolic point of view but also appropriate a clarifying statement which says: ‘No sup- from a practical point of view because it will port for biomass burning of native forests’. ram home every time this parliament opens Let us make it very clear that the European

CHAMBER 4072 SENATE Wednesday, 23 June 2010 situation is quite different from the situation been the major driver of native forest logging here in Australia and WWF do not support ever since. The woodchip industry has now burning of native forests for biomass in Aus- collapsed and is looking for a make-work tralia. program to continue logging native forests Senator Colbeck really let the cat out of when it needs to get out of native forests and the bag yesterday when he talked about the downstream the plantation estate. extent to which the Tasmanian logging in- At the same time as the government is dustry is depending on getting renewable considering giving a further subsidy to native energy certificates as a lifeline for logging forest logging via this process, you have a native forests. He said here that he would 100 per cent tax deduction on the other side expect they would get something like 3,000 for establishing carbon sink forests. So we gigawatt hours, but in Forestry Tasmania’s now have this ridiculous logic of subsidising own so-called fact sheet it says that it wants logging established carbon stores, subsidis- to build a 25-megawatt biomass plant at ing the establishment of carbon sinks over on Southwood and that would generate 160,000 the other side, subsidising managed invest- renewable energy certificates a year. So there ment schemes on the other side, and having is a full expectation that they would be get- photographs taken of putting in a few seed- ting RECs from their 25-megawatt biomass lings as some kind of carbon offset under the plant at Southwood. Carbon Pollution Reduction Scheme, whilst We have this ludicrous situation where we facilitating the logging of the great carbon are logging native forests without the emis- stores. This is a ridiculous scenario in a cli- sions from those native forests being counted mate sense. We should have full carbon ac- because the Kyoto accounting does not re- counting. We should have a recognition of quire it. So they log the carbon stores, the the carbon stores. And now is the time to do most important carbon stores. If the govern- it, because there is not a single native forest ment really wanted to move on climate logging industry player around the country change then it would protect the carbon who can argue at the moment that there is stores and it would support this amendment any profitability, that there is any market, for to get rid of any possibility that you can log a logging native forests. native forest and use the woodchips to go The point at which you have no market is into a biomass furnace. the point at which you have opportunities. What this is going to come down to is the With this not being removed from the renew- definition of ‘waste’, and that is why it is able energy target, the logging industry are important to rule it out right now. Thirty going to make a pre-emptive strike to main- years ago, the logging industry argued that tain this industry way beyond its use-by date the waste from sawmilling would be used as via a government subsidy, effectively. It is woodchips—that it would merely be the not just the Southwood mill in Tasmania, the waste; it would not be the predominant in- one proposed for Smithton, the Gunns one or dustry, just the waste—and that the wood- those at Orbost and Eden; there is also a chips would be sent overseas. The upshot proposition for another one in Western Aus- was that the native sawmilling industry was tralia. Some 20 mills are on the agenda overtaken by the plantation sawmilling in- around the country. On television last week dustry in 1993-94 and completely displaced the proponent of the native forest burning in the market, and the woodchip industry has furnace at Eden said that they were depend- ing on renewable energy certificates for 50

CHAMBER Wednesday, 23 June 2010 SENATE 4073 per cent of their revenue—50 per cent. This chipping a higher value purpose? And there is the government funded destruction of na- will be no standing up in court trying to ar- tive forests, of biodiversity and of wildlife at gue that going in for a single stem of sawlog a time when we have more and more species is going to result in the generation of hun- on the lists of not only threatened species dreds of hectares of clear-felling of native but, in some cases, critically endangered spe- forest as waste. What nonsense. No court cies. will accept that, but of course we could end How is this justifiable? When Australia up with the Commonwealth joining the other argues that we have the capacity to do full state governments in retrospective legislation carbon accounting, why are we in the RET to suddenly make right what is clearly wrong negotiations sticking with the old Kyoto ac- and unacceptable. Unless we remove this counting? I simply do not understand that now, we are going to end up in the courts, and I hope that the minister can explain to because there is no way that people around me: since we say that we can do full carbon Australia are going to accept logging and accounting in Australia, why aren’t we argu- burning of native forests—logging the car- ing for that in international negotiations? bon stores, not accounting for the carbon Why are we sticking with the Kyoto defini- from those stores when they are logged and tion which does not require us to account for then trying to pretend that burning those for- the emissions from the logging of native for- ests is generating green energy. This is creat- ests? This is a huge loophole and a big prob- ing a major conflict, Minister, and you have lem. So I urge the Senate to recognise that the opportunity now to remove it as a loop- now is the opportunity. If you do not remove hole and remove any potential for a subsidy this from the renewable energy target bill, going to the burning of native forests for the you are creating a pre-emptive strike for on- generation of energy. This is the opportunity going logging of native forests where, just as and I hope that the Senate will take it. the woodchip industry argued 30 years ago Senator WONG (South Australia— that it was simply dealing with the waste and Minister for Climate Change, Energy Effi- then rapidly became the industry, now that ciency and Water) (10.14 am)—A number of woodchipping has collapsed the generation the things that Senator Milne has put on the of biomass energy from logging native for- record do not relate whatsoever to the debate ests will be the industry. we are currently having, which is on the re- And let us not pretend that this is about newable energy target. I am not from Tasma- sawlog. Let us not even amuse ourselves nia, but I do understand that this issue has with that notion or view. It is not. ABARE been around in Tasmanian politics for a very pointed out and agreed in Senate estimates long time. Last night we had Senator Milne, that 1993-94 was when plantation timber Senator Colbeck and, I think, some others overtook native forests in terms of the gen- having a long discussion—if I may say, with eration of sawlog. This is an industry in cri- respect to both sides—often about issues sis, with nowhere to go, and the lifeline is which had nothing to do with things that here with this renewable energy target, with were before the chamber. You are entitled to this burning of biomass—and it absolutely do that. I would ask that the Senate consider, has to be stamped out now. We will end up in at an appropriate time, whether there be the courts here, because there will be a re- some end point to a debate which is in fact in quirement to define what is ‘waste’ for a large part about many other issues. higher value purpose. Since when is wood-

CHAMBER 4074 SENATE Wednesday, 23 June 2010

I have a procedural request for us to con- then, Senator Milne? If you could consider sider. I jumped before Senator Birming- that and Senator Birmingham could respond, ham—which might have been an error be- I would appreciate it. cause he might have been about to address Senator BIRMINGHAM (South Austra- this—but I would invite the opposition to be lia) (10.16 am)—Firstly, in relation to the clear on this. I understand that the opposition matter raised by Senator Wong, Senator Col- is proposing another amendment on this is- beck does have some further amendments sue to expand the eligibility. The government relating to issues around the treatment of will not be accepting that amendment and the biomass. I understand those amendments are government will not be accepting the Greens being circulated as quickly as possible to amendment. The government’s position is senators present and the coalition is willing that this is a definition that has been in place to have those debated, with the leave of the in the legislation for some time. We have Senate, at the same time as the proposed been lobbied by both sides of the debate to Greens amendments. I note that the chamber expand the eligibility to enable more forest has very limited time today to try to get product to be used under the renewable en- through what are a lot of amendments on this ergy target, as well as the perspective put by issue. I hope that we can deal with this par- Senator Milne. I have indicated to both sides ticular issue and all the other amendments, that the government’s position is to retain the and the opposition certainly wants to do that existing eligibility and press ahead with im- with the government. provements to the bill. I would like to quickly address the Greens Leaving that to one side, as a matter of amendment whilst Senator Colbeck’s process, I invite the chamber to consider that amendments are being circulated. Senator it would be sensible for us, if possible, to Colbeck and Senator Boswell yesterday debate by leave the two amendments to- highlighted a range of issues in relation to gether because, once Senator Colbeck moves this amendment. Senator Wong has rightly his amendment on native forest eligibility, pointed out that much of the debate, particu- we will be traversing the same debate as we larly some of the comments from Senator have had today and did last night. So I would Milne, has focused on the relevance of native invite consideration of that for the efficacy of logging and issues around logging and for- the debate. There are a range of other de- estry that are not particularly relevant to re- bates, including from Senator Xenophon. I newable energy. The opposition will not be know that Senator Xenophon’s time con- supporting this amendment. We think it is straints are substantial. Obviously, an inde- transparent from what Senator Milne has had pendent senator does not have colleagues to say so far that this is really all about the who can move his amendments, and Senator Greens opposition to the logging of native Xenophon has a number of other pressing forests. That is what it is all about, that is issues that I know he wishes to attend to in what they are continuing to pursue and that relation to Productivity Commission reports. is why we will not be supporting this amend- So I would invite the chamber to consider ment. whether we could procedurally deal with the Senators Boswell and Colbeck highlighted opposition’s yet to be moved amendment on some specific examples as to why we will native forests and this amendment together. not be supporting it, and I want to support If the opposition’s amendment is not ready, one other example. In addition to the lobby- could we possibly defer this debate until

CHAMBER Wednesday, 23 June 2010 SENATE 4075 ing I have had on this issue from my Tasma- just argued that that they cannot and should nian colleagues and others with a vested in- not be dealing with a welcome to country terest in this, I have had very strong repre- proposal that has effectively been there for sentations made to me by the Liberal candi- three years. This legislation has not been date for Eden-Monaro, David Gazard—and there that long, but everybody knew it was Senator Milne in her comments cited the coming for a long, long time. The opposition Eden mill as one example. Mr Gazard has want us to wait while they circulate last- highlighted to me that the Eden mill is very minute amendments, presumably generated important in terms of economic activity in by some logging industry factotums who, of that community and also in terms of what it course, always determine what the opposi- contributes to the generation of renewable tion’s policy on such matters is going to be. energy. It is a $20 million investment in the Well, let the debate continue. If the opposi- community. It employs some 76 people di- tion cannot get themselves into order that is rectly plus contractors in a range of sectors, their problem, not the chamber’s problem. especially in the trucking and transport sec- The minister said she is in the middle: be- tor. Importantly, it generates some five tween the destruction of forests and the pro- megawatt hours of reliable baseload electric- tection of forests. I do not actually know ity that powers the local community and the what that means. What we have in front of us local town. This is an important activity. All is a proposal from Minister Wong to burn up, forestry is critical to that area. It employs native forests in forest furnaces and beguile around 830 people and locally supports the community by selling that into the elec- around 3,000 jobs. Mr Gazard has presented tricity grid as green power. Let us be direct to me in the strongest possible terms the im- about this. It means putting into furnaces, portance of maintaining arrangements for the largely placed at current big industrial native Eden mill, the importance of ensuring that forest logging sites, the habitat of many na- the investment in that community is sus- tive species, including rare and endangered tained going forward and the importance of species, in potentially every state and terri- supporting it within the context of the re- tory of Australia, maybe the ACT excluded. newable energy that is generated. She says that this is not going to affect Tas- The coalition, and the Liberal Party in par- mania, and she is not aware of the situation ticular, will be standing firm in support of down there, but that is largely because she Mr Gazard and what he has had to say on has not engaged with the communities who this issue. We will make sure we support that are terribly alarmed about this proposal in local community as of course we do those Tasmania. Let me point to the biomass fact communities highlighted by Senator Col- sheet, for which I am grateful to Senator beck, Senator Boswell and many others who Milne, from Forestry Tasmania itself. It have not spoken in this debate. Our opposi- wants a 25-megawatt biomass plant at tion to this amendment remains steadfast. Southwood, south of Hobart in the Judbury Senator Colbeck will in due course speak on region near the Huon River and the Weld his amendment as well. River. It has got a whole range of things on Senator BOB BROWN (Tasmania— why this would be a marvellous environ- Leader of the Australian Greens) (10.20 mental breakthrough, but when we get to the am)—What a shambles the opposition is. heart of the matter the minister was saying This legislation has been on the slate for a would not occur, here it is in black and very long time indeed. The opposition have white. Forestry Tasmania says that this plant,

CHAMBER 4076 SENATE Wednesday, 23 June 2010 burning native forest, would generate about logged, and the Picton and Huon valleys— 160,000 renewable energy certificates per will not be fed into any of the proposed fur- year. That is under the legislation Senator naces, including this one by Forestry Tasma- Wong has before the parliament. nia, under its biomass fact sheet awaiting this Senator Wong is a prodigious supporter of very legislation? Can the minister give us a the destruction of Australia’s native forests clear statement that none of those putative and woodlands, as is every member of the World Heritage areas and high conservation Labor Party here. Prime Minister Rudd in the value forests will be in any way a resource run to the 2007 election said, ‘I am 100 per for this proposed 25-megawatt biomass plant cent behind ’s policy of logging at Southwood by Forestry Tasmania? If so, forests in Tasmania.’ A day later he followed she has misled the Senate, and I do not want that up with support for the then proposed that to occur. This is a serious matter. We are Gunns woodchip mill, since repudiated by talking about real on-the-ground proposals. every thinking person around the country We are talking about real national heritage who cares about the environment. Neverthe- forests in the wake of an opinion poll show- less, the government’s support for that ing that 78 per cent or so of people in this woodchip mill as proposed continues, and country want these native forests protected. that mill—Gunns’s proposal—is to produce By the way, we are talking about a re- 180 megawatts of electricity per annum, source—native forests and woodlands across which is as much as the Franklin Dam would this country from Tasmania to Tiwi—which have produced had it been built. That is as if it had been protected by the government originally conceived, although Gunns meri- would reduce greenhouse gas emissions in toriously is changing direction from the de- this country of ours by 20 per cent. The gov- struction of native forest now that the old ernment CPRS is five per cent and that leadership of John Gay and Robin Gray is measure is 20 per cent. not there. We look forward with interest to I have got a second question. I do not see where that it goes. Nevertheless, the con- want to delay the house but I ask the gov- cept for that pulp mill which Senator Wong ernment and the minister, in relation to the and Prime Minister Rudd and the opposition proposed forest furnace at Eden that we have support still—no change there—is to gener- heard the opposition springing to the defence ate power through the burning of native for- of: can the minister give a guarantee that that est largely in the north-east highlands of will not involve the removal of part or whole Tasmania. Yes, these are real proposals and of old trees, primary habitat for rare and en- this is actually subsidising that destruction. dangered swift parrots in Mumbulla or other I ask Senator Wong a couple of direct components of the south-east forest, or of questions because it is germane to this argu- any real or potential koala habitat in those ment. She says it is not but I say it is. Can same south-east forests? Or is this legislation she guarantee that under this proposal the opening the way for those forests to be fed putative World Heritage area forests of Tas- into a biomass plant that proposes to use 50 mania as outlined by the International Union per cent native forests and then sell it to an for the Conservation of Nature—and I refer unsuspecting public as green energy when in there to the Great Western Tiers, to areas of fact it is black and disgusting destruction of the Tarkine, the Styx Valley, the Weld Valley, the natural realm in a world which is losing the Upper Florentine, which Prime Minister its biodiversity at the greatest rate in history Howard promised to protect but is now being

CHAMBER Wednesday, 23 June 2010 SENATE 4077 in this International Year of Biodiversity un- I refute your personalisation of this de- der the United Nations? bate. I refute what you have said. What we Senator WONG (South Australia— are saying is that we are retaining the exist- Minister for Climate Change, Energy Effi- ing regime, which includes specific eligibil- ciency and Water) (10.29 am)—Senator ity criteria for the use of native forest bio- Brown is a very good politician and that was mass to ensure that only genuine waste from a good politician’s speech. It was a speech sustainable forestry operations is eligible to that was designed to try and inflame this de- create renewable energy certificates. These bate. It was a speech designed, as the Greens regulations include a high-value test which is always do, to try and convince people that applied to avoid creating further incentives they should not vote for the Labor Party, they for clearing native vegetation. should vote for the Greens. It is always inter- I am advised that high-value processes in- esting to me that this supposed left-wing clude sawlogs, veneer, poles, piles, girders party is quite happy not to seek coalition and wood for carpentry or craft uses or oil voters, you only want to convince people products. I am also advised that wood chip- who vote for the Labor Party. Your real en- ping, including for pulp waste, is ineligible. I emy, Senator Brown, has always been the am further advised that to date there has been Labor Party, and you would rather see Tony virtually no eligible generation derived from Abbott in the Lodge than a Labor govern- native wood waste, although a number of ment which has done so much for the envi- power stations are accredited to use wood ronment and so much on climate change waste as a fuel source. According to the Of- since we came to government. But that is a fice of the Renewable Energy Regulator’s matter for you, Senator Brown. 2008 annual report, approximately 2.4 per The only thing I am going to respond to is cent of renewable energy certificates created the personal attack. I always find it interest- to December 2008 were from general wood ing that you feel the need to do that, Senator waste. Brown. ‘Penny Wong is a prodigious sup- I cannot recall how many hours we have porter of the destruction of native forests’— spent so far on this amendment with the what an extraordinary inflammation of the same—but now perhaps a bit more inflam- debate without any factual basis. Senator matory—speeches from Senator Milne and Brown, it does you no credit in a debate like now Senator Brown. We can keep debating this where parties have negotiated with each native forest issues all day and ensure that other despite their divergent interests. We this was another day where we did not pass have moved amendments on the basis of this legislation. I understand that Senator those negotiations. We are accepting some Colbeck’s amendment has now been circu- from the opposition, we are accepting some lated. I invite the committee to consider from your spokesperson, Senator Milne, in whether we could have Senator Colbeck the interests of cooperation and getting this move that amendment now and have a cog- legislation through because we believe it is nate debate on this issue because otherwise I in the national interest to get more invest- think we will have this debate again when ment in wind farms, in solar and, over the Senator Colbeck moves the amendment. The years, in tidal, geothermal and in all the rich issues raised by Senator Colbeck’s amend- renewable sources this country has. This is ment are fairly and squarely relevant to the what this debate is about; you want to make issues raised by Senator Milne’s amendment, it about Tassie forests. That is the reality.

CHAMBER 4078 SENATE Wednesday, 23 June 2010 albeit that they are clearly from very differ- 138 Subregulation 8(3) ent perspectives. Repeal the subregulation. The TEMPORARY CHAIRMAN 139 Subregulation 8(4) (definition of (Senator Boyce)—We are currently dealing high value process) with the Greens amendments. And then, if Repeal the definition. the chamber agrees, we could move straight 140 At the end of subparagraph onto those opposition amendments from 9(1)(b)(ii) Senator Colbeck. They could be debated Omit “;”, substitute “.”. cognately if the committee agrees. 141 Paragraph 9(1)(c) Senator COLBECK (Tasmania) (10.33 Repeal the paragraph. am)—To facilitate the committee making a I will not take too much of the chamber’s decision as to whether they do have a cog- time but I do want to speak to these amend- nate debate on this, I seek leave to move my ments. It is pertinent that Senator Wong has amendments so that they are on the table and we can continue the debate on that basis. said that there have been very few renewable energy certificates generated from the use of Leave granted. biomass under the current regulations. It is Senator COLBECK—I move opposition quite clear that the current regulations inhibit amendments (1) and (2) on sheet 6158: the generation of renewable energy through (1) Clause 3, page 2 (lines 7 to 11), omit the the use of biomass. clause, substitute: I think it is fairly obvious that I disagree 3 Schedule(s) with Senator Brown and Senator Milne that (1) Each Act, and each set of regulations, biomass is not a renewable energy source—it that is specified in a Schedule to this obviously is. That is even demonstrated by Act is amended or repealed as set out in some of their pronouncements. I mentioned the applicable items in the Schedule yesterday that I was in a forest six or eight concerned, and any other item in a weeks ago that Senator Brown and Senator Schedule to this Act has effect accord- Milne would have declared destroyed under ing to its terms. the current logging regimes but they now (2) The amendment of any regulation un- claim that forest as a high conservation value der subsection (1) does not prevent the forest. regulation, as so amended, from being amended or repealed by the Governor- Interestingly, I note that they also claim, General. under the maps issued by the Wilderness (2) Schedule 1, Part 2, page 80 (after line 4), at Society, some pine and eucalypt plantations, the end of the Part, add: so perhaps there is some confusion in their minds as to what a high conservation value Renewable Energy (Electricity) Regula- tions 2001 forest really is. But that is part of the forestry debate that we do not necessarily need to go 137 Paragraph 8(2)(b) through now because are debating renewable Repeal the paragraph, substitute: energy. (b) a by-product (including thinnings I am disappointed that Senator Brown and coppicing) of a harvesting op- again used the politics of personal denigra- eration that is carried out in accor- dance with ecologically sustainable tion. I suspect I will cop the same but that is forest management principles; and the stock in trade that he, disappointingly,

CHAMBER Wednesday, 23 June 2010 SENATE 4079 tends to operate under. We have seen that erated on-site. They are currently using coal happen in Tasmania to senior figures in the in their boilers, unfortunately. They would forestry sector. The first task is to tear them like to change that. Seventy-five per cent of down and tear down their credibility so that it can be replaced with bioenergy from wood they cannot effectively make an argument. waste generated on-site in their plant. They That is the way the Greens tend to operate. do not have to touch another tree; they do not I want to put on the record what is possi- have to touch another twig. That is what can ble and what is happening in other parts of occur in the here and now. the world in the generation of energy from As I said yesterday, in terms of life cycle woody biomass. In 2008 about 27 per cent of it is up to 56 times cleaner than emissions Sweden’s energy came from mainly woody based on coal, so there really is an opportu- biomass. At present the target is to increase nity here for us to provide the opportunity to this figure to 39 per cent by 2020. Sweden genuinely utilise biomass in Australia. The aims to use that to eliminate imports of fossil current regulations obviously are an inhibitor fuels by 2025. to that, which is demonstrated by the com- So there are countries that are actually ments that Senator Wong put on the table. I utilising woody biomass for energy genera- do not need to go into a long dissertation tion. I saw it myself in Finland when I was about the misinformation that the Greens put there last year. The trimmings from their for- on the table in relation to the forest industry. estry operations are stacked on the sides of That is well understood by many. But I will the coops, dried there for a couple of years talk about the opinion poll that Senator and then used to generate energy in local Brown talked about, which would have to be communities—they do not have the distribu- one of the most blatant examples of push tion networks that we have here in Australia. polling that I have ever seen. Once you actu- In Finland approximately 20 per cent of elec- ally read what the Greens, through their poll- tricity is produced from biomass derived al- sters, asked, you see that they start with a most entirely from forestry waste or from statement that talks about a certain perspec- timber processing. About 23 per cent of the tive and then ask a question based on the country’s overall energy supply is now de- statement. They do not necessarily just ask a rived from this. Finland aims to meet 39 per question to get a result. It is very clearly cent of its national energy needs from re- push polling and it needs to be seen for that. newable energy sources, including biomass, It really is worthless in respect of the story by 2020. that it tells except that it gives Senator Brown something that he can go out and There is clearly an opportunity here for publicly spout as supporting his argument. this. I understand that the Greens have a fun- Quite frankly, it is completely and utterly damental disposition against any form of worthless as an argument because it is quite native forest logging, and they put up dis- clearly push polling. torted facts to push the argument that it can all come from plantations. I put on the record I understand that most likely the chamber yesterday the fact that it cannot and I want to is not going to support this amendment, but it put another example on the table. Two weeks is an important amendment and it has been ago I was at a plant in that put up genuinely, not because I have been could replace 75 per cent of their current told to put it up by the forest industries, as fossil fuel energy source by using waste gen- Senator Brown might want to imply—again, the politics of denigration. It is because I

CHAMBER 4080 SENATE Wednesday, 23 June 2010 have been out and actually had a look needs to be said every now and then. The around. I have been to other countries to see forests are the cradle of our own species. We what is being done and what can be done. are made from our ancestry in forests. We There is an opportunity here and it is going put pictures on our walls because we respond to take a change to the regulations for that to to the beauty of forests as we see it. We do occur. I understand that the Greens do not not put up pictures of chainsaws and bull- like that and that they have this philosophical dozers; we put up pictures of wildlife and view—that is fine—but I think that there is beautiful vistas of forests—not clear-fell ar- an opportunity for us to do something posi- eas but forests. tive here. That is why I have moved the What I see when I go to south-east New amendment, not because somebody else South Wales, to Gippsland and to the Central wants me to do it. I have taken the opportu- Highlands of —and of course in nity to study it; I have actually worked in the Tasmania—are areas that were beautiful for- timber and construction industry and I know ests last year but devastated this year, and that there are waste streams that can be very with them the wildlife. Senators want to dis- effectively put to use for the generation of cuss the economic advantages of burning renewable energy, just like they will be in the forests in forest furnaces, which we know pulp mill in the Tamar Valley, proposed by cannot compete unless this legislation gets Gunns. A significant amount of energy will through, for one simple reason: those pro- be generated by that mill from waste prod- moting these forest furnaces want to depend uct. Senator Brown still does not support the on the outrageous and blatant lie, given leg- mill, even though it is being transformed islative cover under the government’s pro- from a mix of plantation and native product posals now before the Senate, that it will be to purely plantation product. Any suggestion green energy. That is what it is about. that the Greens will ever support a pulp mill We have argued in this Senate for many, in Tasmania I think is dancing with the fair- many years against the existing legislation ies at the bottom of the garden. I do not be- and now through this legislation the continu- lieve that will ever occur, that they will ever ance of that lie that energy coming out of support that, because they are philosophi- forest furnaces is no different to wind energy, cally opposed to it. I understand that; that is solar power, wave energy or whatever the fine with me. But here is an opportunity for renewable source will be. It is not renewable us to put on the table the opportunity to energy. This is not renewing of native for- genuinely generate energy in a way that is ests. It is destructive energy. It is destruction being done in other places around the world of native forests. and to make some amendments to allow that to happen in Australia. Senator Milne has brought in a ‘clear the air’ proposal that says that you cannot burn Senator BOB BROWN (Tasmania— native forests and call that green energy, and Leader of the Australian Greens) (10.42 every single member of the old parties yet am)—The issue of the needless destruction again—not for the first time—will vote for of forests and their wildlife, against the this proposal to continue the destruction of rights of future generations and against the Australia’s wild forests, this time through rights of our fellow species on this planet, is forest furnaces under the lie that it will be an emotional one, and I make no apology for green energy coming out of it. Senator Wong the emotional component. We are human protests about that. Well, it is her legislation; beings. Let me go a little further, because it

CHAMBER Wednesday, 23 June 2010 SENATE 4081 it is her doing. It is eyes wide open. Senator that there is a statement at the start of a ques- Milne has brought in the clarifying amend- tion put to Australians—which there nor- ments, and I suspect—well, I know—that mally is in opinion polls. He should ring his every Labor member of this place and every pollster and find out how they put opinion Liberal member of this place and every Na- polls. That opinion poll question is available tional Party member of this place will vote freely—it has been released to the media. It for that lie, will vote for that deception and is a genuine poll. If there is some other poll will vote for that destruction. that shows an alternative result, let Senator If I am emotional about that it is because I Colbeck produce it. He cannot, because there am a human being—like every other person is not one—because the Australian people in this place. What I do not understand is feel very strongly about this matter. Will it be why this is happening in this wealthy coun- an election issue? Of course it will be. It has try, where we have two million hectares of to be. We are talking about the nation’s fu- plantations—which is more than enough to ture here. We can do better with our heritage meet all our wood needs. Senator Colbeck than be shovelling it into furnaces and under may have been fed stuff from NAFI. It does legislation like this, coming from the logging not make any difference; that is the reality. industry—through the big parties—giving a We do not need to continue this destruction legal imprimatur to the lie that it will be of an heirloom that belongs to this country. green energy when it is not. If you want to further look at the econom- Senator Milne has brought forward ics of this, there is a forthcoming United Na- amendments which we as the guardians of tions report, due in October. It is Interna- this nation’s future should be flocking to tional Year of Biodiversity, and the topic here support. I find it extraordinarily remiss that is biodiversity—burning biodiversity and these amendments will not get the support calling it green energy. The fact is that the that they should get in this Senate. But that is loss of biodiversity around the planet is go- why we here. That is why we Greens are in ing to hit the global economy by the end of this place. this century to the detriment of that economy Senator XENOPHON (South Australia) of US$3 to US$4 trillion per annum through (10.49 am)—I indicate that I support the loss of plant and animal diversity. I will re- Greens’ amendments. I do not support Sena- peat that: US$3 to US$4 trillion per annum. tor Colbeck’s amendments. I note that he has Who is factoring that into this forest furnace articulated the position very clearly in rela- proposal? What they want here is public sub- tion to his amendments, but I think it is im- sidy to give us a massive economic detriment portant to take a more prudent approach in to pass on to our grandchildren. relation to this. Therefore, from my point of If you insist we be unemotional and non- view, I think it is important to support the human in here and not care about biodiver- Greens’ amendments in relation to native sity and not care about our wild forests in forests. Although I do acknowledge what this country, I do not care what Finland or Senator Colbeck has said, I think it is impor- Sweden—which have lost most of their na- tant that the Greens’ amendments be consid- tive forests—or Russia, Cameroon, Indone- ered and be supported in the context of this sia, Brazil or anywhere else is doing in this ongoing debate. But I do note that the gov- regard. This is this nation’s heirloom. And I ernment does have regulations that would do not care about Senator Colbeck saying restrict the use of native forests in the con- text of the REC scheme. I think the minister

CHAMBER 4082 SENATE Wednesday, 23 June 2010 is acknowledging that. If the Greens’ * denotes teller amendments do not pass, as appears to be the Question negatived. case, the issue is: how effective will those The CHAIRMAN—I now put opposition regulations be to maintain those conservation amendments (1) and (2) on sheet 6158. The values? question is that those amendments be agreed The TEMPORARY CHAIRMAN to. (Senator Boyce)—Thank you, Senator Senator Milne—On a point of order, Mr Xenophon. In view of what you have just Chair, I just seek clarification: is this Senator said, I will put the question on the amend- Colbeck’s amendment? ments in two parts. The first question is that the Australian Greens amendments (1), (4) The CHAIRMAN—I am told yes. and (9) on sheet 6114 be agreed to. Senator Milne—I have a concern because Question put. we had an arrangement with Senator Xeno- phon that—sorry? The committee divided. [10.55 am] The CHAIRMAN—Senator Milne, I in- (The Chairman—Senator the Hon. AB tend to make it another four-minute division Ferguson) if that may help you. Ayes………… 5 Senator Milne—Okay. Noes………… 42 Question put. Majority……… 37 The committee divided. [11.03 am] AYES (The Chairman—Senator the Hon. AB Brown, B.J. Hanson-Young, S.C. Ferguson) Ludlam, S. Milne, C. Ayes………… 33 Siewert, R. * NOES Noes………… 33 Abetz, E. Back, C.J. Majority……… 0 Bernardi, C. Bilyk, C.L. AYES Birmingham, S. Bishop, T.M. Boyce, S. Brown, C.L. Abetz, E. Adams, J. Cameron, D.N. Cash, M.C. Back, C.J. Bernardi, C. Colbeck, R. Collins, J. Birmingham, S. Boswell, R.L.D. Coonan, H.L. Crossin, P.M. Brandis, G.H. Bushby, D.C. Eggleston, A. Farrell, D.E. Cash, M.C. Colbeck, R. Feeney, D. Ferguson, A.B. Coonan, H.L. Cormann, M.H.P. Fielding, S. Fisher, M.J. Eggleston, A. Ferguson, A.B. Forshaw, M.G. Furner, M.L. Fielding, S. Fierravanti-Wells, C. Hurley, A. Hutchins, S.P. Fifield, M.P. Fisher, M.J. Lundy, K.A. Marshall, G. Humphries, G. Joyce, B. McEwen, A. McLucas, J.E. Kroger, H. Macdonald, I. Minchin, N.H. Moore, C. Mason, B.J. McGauran, J.J.J. O’Brien, K.W.K. Parry, S. Minchin, N.H. Parry, S. Polley, H. Pratt, L.C. Payne, M.A. Ronaldson, M. Ryan, S.M. Stephens, U. Ryan, S.M. Scullion, N.G. Sterle, G. Troeth, J.M. Troeth, J.M. Trood, R.B. Trood, R.B. Williams, J.R. * Williams, J.R. Wong, P. Wortley, D. NOES

CHAMBER Wednesday, 23 June 2010 SENATE 4083

Arbib, M.V. Bilyk, C.L. ought to be consideration of whether they Bishop, T.M. Brown, B.J. should be included. Yesterday I did ask about Brown, C.L. Cameron, D.N. why evacuated tube systems are not able to Collins, J. Crossin, P.M. generate renewable energy certificates. Also, Farrell, D.E. Feeney, D. Forshaw, M.G. Furner, M.L. what about geothermal heat for individual Hanson-Young, S.C. Hogg, J.J. residents? That is not currently included. We Hurley, A. Hutchins, S.P. need to be constantly looking at new tech- Ludlam, S. Ludwig, J.W. nologies and whether they would qualify or Lundy, K.A. Marshall, G. otherwise under the scheme. McEwen, A. McLucas, J.E. Milne, C. Moore, C. Also, the adequacy of the target needs to O’Brien, K.W.K. Polley, H. be looked at. In my view, 20 per cent is no- Pratt, L.C. Siewert, R. where near enough. But I accept that the Stephens, U. Sterle, G. Greens do not have the numbers at this point Wong, P. Wortley, D. to increase the target. What is very clear is Xenophon, N. that the tenor of the debate is about dampen- PAIRS ing demand not actually driving massive ex- Barnett, G. Evans, C.V. pansion. A lot of the problems we are now Boyce, S. Carr, K.J. trying to fix up would have been sorted if we Heffernan, W. Conroy, S.M. had actually increased the target to 30 per Johnston, D. Sherry, N.J. cent or more. Clearly, we need to be con- Nash, F. Faulkner, J.P. * denotes teller stantly reviewing the target—as the tech- nologies come on-stream and as the eco- Question negatived. nomic viability of those technologies and so Senator MILNE (Tasmania) (11.06 on improves—and reviewing how the am)—For the benefit of the Senate, because scheme is operating. we are trying to facilitate a lot of changes in The minister and the coalition obviously a short time, yesterday I deferred considera- reached an accommodation around the re- tion of my amendment which provides for a newable energy certificates that can be cre- biennial review of operation of renewable ated from the small-scale part of the scheme. energy legislation, because I was negotiating The Greens do not support that. The amend- with the government and coalition for a word ment was delivered to this Senate very change. That word change is now reflected in shortly before it was actually debated as the No. R3, sheet 6114 revised. We are now first amendment yesterday. I am worried bringing back something that was deferred about this because the whole point of us be- yesterday, and it provides for a biennial re- ing here is to take out the uncertainty and to view of the operation of the renewable en- give long-term investment signals. We are ergy legislation. now doing that in the large-scale part and we I think it is absolutely essential that we are making it very clear what will be there have a biennial review, because this industry for them. Now, by introducing a soft cap of sector is moving faster than the parliament six million, the government and the coalition can possibly keep up with. As I indicated have effectively introduced uncertainty for yesterday, the price of solar panels has gone the small-scale renewable energy providers. down 40 per cent since the legislation was For example, last year in 2009, 19 million introduced last year. There are new tech- renewable energy certificates were created. nologies coming on all the time and there Ten million of those were for solar renew-

CHAMBER 4084 SENATE Wednesday, 23 June 2010 able energy certificates—10 million out of I appreciate the government’s support for 19 million. this amendment. I think everybody in this Whilst the government have said this six chamber and in the industry generally recog- million will not kick in until 2015, effec- nise that things are moving so fast there has tively what it has said is that you will get the to be a regular review of everything about $40 price for small-scale renewables out to the operation of the renewable energy legis- 2015. But, clearly, if the rate of growth is as lation. Hopefully, we will now be legislating anticipated based on what occurred last year for the review. But I take this opportunity to and is replicated in coming years, the six ask the minister to explain in more detail million is going to act as a cap, and it is an why the six million soft cap will not intro- indication that by 2015 the price that you duce uncertainty for the small-scale sector. would get for solar is likely to be reduced Can the minister give some clarity around probably to $20. If this happens, it is going the government’s thinking and provide some to actually massively restrict the contribution reassurance to that sector that the intent is that solar can make to a renewable energy not to cap the contribution that solar can future in Australia. make and that the effect will not be to do that? I have real concerns about this. This was not something that was canvassed with the I move Greens amendment R3 on sheet industry. I understand the coalition wanted a 6114 revised: hard cap. It would have been an absolute (R3) Schedule 1, item 99, page 59 (lines 16 to disaster, I have to say, Senator Birmingham, 21), omit the item, substitute: if that had been introduced. A hard cap 99 Section 162 would have meant everybody would run hard Repeal the section, substitute: up to the cap and then there would be a com- 162 Biennial review of operation of re- plete collapse. By introducing this soft cap newable energy legislation by 2015, the government have actually intro- (1) The Minister must cause an independ- duced uncertainty when the whole point was ent review of the following to be un- to give the industry, both large and small, dertaken as soon as practicable after certainty into the future. 30 June 2012 and every 2 years after How can you make a decision about in- that date: vesting in solar, when you know that in 2015 (a) the operation this Act and the the price is likely to be halved? Given the scheme constituted by this Act; current rate at which solar, and the number of (b) the operation of the regulations; certificates it is accessing, is expanding, (c) the operation of the Renewable En- what is going to be the situation then? I ergy (Electricity) (Large-scale Gen- would like the minister to respond to that. eration Shortfall Charge) Act 2000; The industry is now rather concerned be- (d) the operation of the Renewable En- cause they thought the legislation was com- ergy (Electricity) (Small-scale Tech- ing back to the Senate to be split, to give nology Shortfall Charge) Act 2010; certainty to the large-scale sector and to (e) the diversity of renewable energy make it unlimited for the small-scale sector. access to the scheme constituted by Now, having taken the uncertainty out of one this Act, to be considered with refer- end, the government have potentially intro- ence to a cost benefit analysis of the duced it at the other end. environmental and economic impact of that access.

CHAMBER Wednesday, 23 June 2010 SENATE 4085

(2) A review must be undertaken by a per- some small-scale technologies. There has son who, in the Minister’s opinion, certainly been higher uptake in some areas possesses appropriate qualifications to than might have been anticipated. As she undertake the review. herself has said, what we need to look at is (3) The person undertaking a review must sustainable growth for the industry. give the Minister a written report of the review before 31 December in that In fact, the policy issues that we are at- year. tempting to grapple with are also those (4) The Minister must cause a copy of the which lie behind the senator’s own amend- report to be tabled in each House of the ment in relation to the solar credits multi- Parliament within 15 sitting days of plier, which in effect enables the minister to that House after the day on which the alter the multiplier. That is in fact altering the report is given to the Minister. cost of the subsidy. It is precisely the same (5) The report is not a legislative instru- policy issue, I would suggest, driving the ment. senator’s consideration of that as is driving Senator WONG (South Australia— the government in this clearing house price Minister for Climate Change, Energy Effi- review process that was passed yesterday. ciency and Water) (11.14 am)—I thank the These are amendments agreed between Australian Greens for agreeing to various the government and the opposition. It is true changes. We will not oppose Greens amend- that some members of the opposition have ment R3. We are happy to support that publicly sought a hard cap in the small-scale amendment. In relation to the questions sector. What 30LA, which we passed yester- asked, which really relate to the discussion day, does is set the clearing house price. It yesterday, first, let us discuss the policy pa- says, ‘It is $40 but the minister can specify a rameters here. We have split the small-scale lesser amount in certain circumstances.’ and large-scale sectors to better reflect the Then it goes through in very clear detail the dual policy objectives under this legislation, sorts of things a minister must take into con- which are to transform Australia’s large-scale sideration—for example, any changes to the generating capacity and also to provide sup- costs of small generation units such as solar port for Australian households who want to hot water heaters, co-contribution, the impact do their bit to tackle climate change. Hence, of the clearing house price and electricity we essentially have two schemes within prices, which are obviously an important one—the large-scale renewable energy target issue. We do need to balance the cost to con- and the Small-scale Renewable Energy sumers against the benefit of having a sub- Scheme. sidy for these technologies under the scheme. However, as Senator Milne has identified In relation to the six million to which the both in the contribution that she just made senator has referred, one of the things the and elsewhere and as is reflected in one of minister has to do is look at whether or not her subsequent amendments, which I will the total value by 2015 of this part of the come to, obviously the market in this area scheme is likely or expected to exceed six does shift over time. Sometimes we can pre- million. It is not a hard cap, but it is seeking dict that; sometimes we cannot. Sometimes to ensure that the scheme works efficiently different people predict different things. For and effectively and that there is the capacity, example, as the senator would be aware, if required, to deal with a situation such as, there has been a reduction in the unit cost in for example, if the expected take-up of six

CHAMBER 4086 SENATE Wednesday, 23 June 2010 million is likely to be exceeded. It really because of their lower costs in and of them- deals with the same issues, Senator, you have selves then the government will be able to raised and which your solar credits multiplier step back the effective subsidy that electric- amendment which you will be subsequently ity consumers are paying but allow the cer- seeking to move, depending on discussions, tificate generation to continue well above six seeks to deal with. million, if that is what happens, as long as Senator BIRMINGHAM (South Austra- the price is adjusted in accordance with the lia) (11.18 am)—I will touch on both the terms set out in the amendments made yes- amendment under consideration and the ear- terday. lier amendment that Senator Milne raised. I welcome that. I think it is as close to an Yesterday, as Senator Milne highlighted, we elegant solution as you can come to for the had the first parcel of amendments dealt with problem of the unlimited liabilities that are in the chamber. I am not sure that all of the faced under the SRES by local entities. The comments I made at that time were necessar- coalition had genuine concerns about those ily totally germane to those amendments. unlimited liabilities and wanted to see some The opposition support for them was very means by which they could be if not capped real and, as Senator Wong has alluded to, then at least given an element of certainty for they were a point of negotiation between the the future that they were not going to be government and the opposition. ever-increasing. This price mechanism pro- We strongly endorse the soft-cap ap- vides for that and we think that is a useful proach. In my speech in the second reading step forward. We do not believe that it should debate I spoke about a hope that somehow create uncertainty for the generators of the government could find a way to limit the small-scale technology certificates. We think liability that liable entities face under the that a minister of the day should be able to RET using a price mechanism. The RET has handle the issue in a way that is consultative always worked on the basis of a variable enough with industry, takes into account in- product. That has been the way it has re- dustry concerns enough and provides some sponded to market demand. The challenge certainty for the future so as not to see the with the SRES as proposed is that it fixes a type of on-again, off-again incentive, subsidy clearing house price and therefore takes out and rebate type of arrangements that have that capacity, if there is a surge in generation plagued the sector that Senator Milne and I certificates, for the price to drop back. The and many others have spent so much time amendments proposed and accepted by the talking about in this chamber and elsewhere. chamber yesterday in this regard allow the We think that the process that is set out government to respond to those market fac- forces the minister of the day to consider tors. If there is excessive growth that is going enough factors and take into account enough to go well above six million then the gov- factors, and those need to be the ongoing ernment can adjust the price. stability of the small-scale technology sec- That will not necessarily cap at six million tors. I would expect the minister—and take the number of certificates generated. It will her word—and future ministers to make sure simply reduce the cost to the liable entities. that they did not dramatically alter the cer- Yes, it will potentially reduce demand as tainty around those sectors, but that any price well, but if that demand is growing because changes to the clearing house price were technologies have become more efficient and done in a measured, moderate, considered and consultative fashion. We note that the

CHAMBER Wednesday, 23 June 2010 SENATE 4087 minister is required to provide not just for ing that the intent of what was moved yes- changes but reasons outlining the changes to terday is what the Greens have in mind. They that price under those amendments to the are two diametrically opposed positions. The House as well. Greens are coming from a perspective of We support the Greens’ amendment under wanting to make sure there is long-term sus- debate because we think it adds to and com- tainable growth in the renewable energy sec- plements the amendments that I was just tor. The coalition’s amendment which was talking about—the amendments that allow agreed to by the government was not negoti- for a change in the clearing house price. We ated with the Greens because it is coming think it will add transparency to any deci- from the perspective of the aluminium sector sions that a future minister makes. We think and the big liable entities. They are required it will hopefully inform the debate on any to take up the renewable energy certificates. future decision a minister makes, and so in They are worried that if the small-scale re- that sense having the biennial review, going newables explode and expand as we would through that process, will guarantee consul- like them to that will increase the liability for tation and engagement. It will guarantee that those large-scale industries, the aluminium there is a public statement of the govern- sector et al, to have to take up those certifi- ment’s thinking of the day at the end of that. cates. The perspective of the coalition is that It will guarantee that the future intentions of they are trying to limit the liability of the the clearing house price should be clear to aluminium sector to the detriment of the all, and so it is a value add and we welcome small-scale solar sector in particular. the fact that the Greens have proposed this. This amendment is the aluminium indus- I understand there has been some negotia- try amendment that came through here yes- tion around the terms of the amendment be- terday and it is vastly different from a per- tween the government and the Greens, but spective which says, ‘We want to make sure we think that overall the principle and the that we don’t overheat and have a debacle concept is an important one. It will add, I like the insulation debacle where shonks got think, to the certainty for the industry but into the market, where things were not regu- together these amendments will also allow lated properly and it didn’t lead to a sustain- the scheme to be as responsive as it needs to able industry’ Our perspective is to grow the be. As Senator Milne alluded to, we see a renewable energy sector as sustainably in a dynamic and fast-changing industry sector managed way so that there is certainty into around all of the renewable technologies. We the future and a pathway for expansion. all hope of course that this entire scheme What the coalition put to the government and drives change and advances, lowers costs was agreed to yesterday is an aluminium and makes a dynamic sector even more dy- industry amendment to restrict the growth of namic, and therefore providing the govern- renewables because the aluminium sector ment with capacity to respond to that in an does not want to have to take up the in- open, transparent and thoughtful way is im- creased liability that they are required to take portant. Together, we think these amend- up as liable entities. Let us get completely on ments make eminent sense. the record what is going on here. Senator MILNE (Tasmania) (11.24 I will be interested to see what does hap- am)—Senator Birmingham has just clarified pen when we get closer to 2015. The only why the minister is actually wrong in assum- thing I will say is that with these review processes and the rapid changes in the indus-

CHAMBER 4088 SENATE Wednesday, 23 June 2010 try there will be changes between now and during the Senate inquiry. Submission after 2015 obviously, and so to a certain extent it submission highlighted concern about that is academic. At this point, I want to make it unlimited liability. very clear: our perspective is to grow the That is what the initial amendment sought industry, not to provide surety to the alumin- to do. It has passed, so I do not want to go on ium sector. about it, but it was not the case that we Senator BIRMINGHAM (South Austra- wanted to put uncertainty into the renew- lia) (11.27 am)—I do not want to redebate an ables sector. That is why I said I thought it amendment that was passed yesterday at was an elegant solution. It provides a capac- great length; I want to respond very briefly ity to vary the price without capping certifi- to Senator Milne. There is a dilemma inher- cate numbers and allows them to get on with ent within the way in which the SRES was advancing their technology in a slightly more proposed and created—that is, that it creates responsive scheme than the one that was an unlimited liability for liable entities proposed with a fixed price. whomever they are whether they be alumin- Senator WONG (South Australia— ium or industries that you want to rail Minister for Climate Change, Energy Effi- against, Senator Milne, or mum and dad ciency and Water) (11.30 am)—I am going to electricity buyers at the end of the day. There write that down. Senator Birmingham just is an unlimited liability that is created under said that something we put forward is an ele- the SRES. A hard cap, as Senator Wong, you gant solution! I am very pleased and I thank and others have rightly pointed out—and that him for the contribution. Senator Milne, we I certainly accept and have heard the mes- have sought in this debate to manage a range sage loud and clear from the industry—on of policy objectives. What we are saying is the number of certificates that can be gener- that there is the capacity in this scheme to ated would create an edge-of-the-cliff sce- alter the price if required within certain cir- nario for small-scale technology certificate cumstances. That is no different, Senator, to generators that could come about every year your amendment (8), which is to appoint a or at the end of the scheme. small-scale technology certificate advisory I think this is an elegant compromise be- board and to give the power to the minister cause it allows the industry to grow. It allows to alter the multiplier. If you think about the the industry to have certainty. It allows the effective subsidy for Australian households, industry to know that there will be ongoing it is a product of the number of RECs times support and for the government to flag any the price of the RECs times the multiplier. variations to that support with some notice, We are saying that we need some capacity to one would expect. It also provides a capacity look at the price in the event that what is where you can at least respond to the fact predicted is substantially wrong, if the num- that if that unlimited liability keeps growing ber of certificates is over the six million that and growing you can manage to peg it back is predicted. You are saying the same thing, somehow. That is all it does. It does not except you are choosing to look at the multi- mean the government will peg it back. It plier. They are the same policy issues. If you does not really provide any certainty to those are critical of this position then you would liable entities in some sense but it provides a withdraw that amendment, because it effec- hope that the government will, within some tively does the same thing. I think this is a parameters of six million certificates, re- sensible arrangement. It seeks to give cer- spond to that. This was the No. 1 issue raised

CHAMBER Wednesday, 23 June 2010 SENATE 4089 tainty to both sides and, for that reason, it is to end at the introduction of the CPRS. There being supported. is no particular clarity now around when the Question agreed to. CPRS will be introduced. Even in the model- ling for this legislation the government has Senator BIRMINGHAM (South Austra- modelled alternative scenarios and, as a re- lia) (11.32 am)—by leave—I move opposi- sult of that uncertainty, there is a level of tion amendment (1) on sheet 6148: dysfunctionality in the GGAS market. So the (1) Schedule 1, items 111 and 112, page 61 coalition believes that the certainty for waste (lines 23 to 30), omit the items, substitute: coalmine gas is best provided by allowing 111 Subparagraph 17A(1)(a)(i) the sector to operate within the RET scheme, Repeal the subparagraph, substitute: giving them that certainty for the future (i) starting on 1 July 2011; and through till 2020. The opposition also opposes items 111 and As a result, there are two alternatives 112 in schedule 1 in the following terms: moved. Amendment (1) is simply to provide (2) Schedule 1, items 111 and 112, page 61 that waste coalmine gas be a prescribed in- (lines 23 to 30), items TO BE OPPOSED. clusion in the RET on 1 July 2011, to bring it This amendment and the motion to oppose in then and give certainty about the starting items in schedule 1 relate in particular to date. That is our preference, given the fact issues around the treatment of waste coal- that the government has now taken the CPRS mine gas. When the changes to the renew- off the table. We think it is reasonable to able energy act were debated in this place provide that certainty over the starting date. last year, the coalition negotiated with the But, if that is not accepted by the chamber, government. We negotiated outcomes to pro- then we will simply seek to remove the gov- vide for the protection of waste coalmine gas ernment’s amendments from this bill and to give that sector some certainty that they leave the deal that was negotiated last year would be included under the renewable en- intact. ergy certificate scheme into the future. I do We are very disappointed that the gov- not want to go back over the merits or oth- ernment has decided to go back on that deal, erwise of the sector—that could be a lengthy that it decided not to stand by amendments debate. that were negotiated and put in this act only The nature of the amendments we negoti- last year. We know circumstances in some ated last year was that either the minister ways have changed since then, but in other would have to, by 1 July 2011, prescribe a ways the reality is that this industry still gen- starting date for the inclusion of waste coal- erates as many jobs, still generates as much mine gas or else it would be included within energy, still is just as important to the opera- the renewable energy trading scheme on 1 tion of the energy sector in Australia, still July 2011. In this legislation the government provides as much opportunity as it did last is seeking to remove that inclusion. We do year and still faces uncertainty from the not think that that is reasonable. We think scheme that it used to operate under, the that that removes certainty for that sector. In GGAS. So we would urge the government, the end, that sector faces an uncertain future urge the chamber and urge all senators to at present because of the uncertainty that support amendment (1) in particular to give surrounds the current GGAS. The current the sector the 1 July certainty. But, if that is scheme in New South Wales was scheduled unsuccessful, then at the very least I would

CHAMBER 4090 SENATE Wednesday, 23 June 2010 urge the chamber to stand by what it decided it’s higher’? That is all that is going on here. last year and leave last year’s deal intact. It is disgraceful. If this industry wants to Senator MILNE (Tasmania) (11.36 have people listening to it in the future, it am)—I rise to indicate that the Greens will had better do better than just saying, ‘We not be supporting the opposition’s amend- actually want more from the community than ment or motion to oppose items in schedule is a reasonable thing.’ This started out as a 1 in relation to waste coalmine gas. I would gap in the proceedings because of the confu- remind the chamber that the only reason this sion around when GGAS would end and was even considered for the renewable en- when the CPRS would start. The fact that a ergy target was that GGAS, the scheme in mechanism was put in place to try and plug New South Wales, was to end when the the gap is not a reason to be back here opting CPRS was introduced, but the CPRS was not for a higher paying scheme. I completely introduced and GGAS is not ending. reject on behalf of the Greens these opposi- tion amendments. The industry will be no There is no place for waste coalmine gas worse off than it is now, because it will still in a renewable energy target. It is not a re- be under the auspices of GGAS in New newable source of energy and I object to South Wales. having it there in the first place. To now ar- gue that, even though the New South Wales Senator BIRMINGHAM (South Austra- scheme is continuing, they should get eligi- lia) (11.39 am)—I will respond briefly to bility here is pure, utter, absolute rent- Senator Milne. The industry is already worse seeking, because the proposed price of the off. It is worse off because of the uncertainty REC is higher than they will get in New in the way the GGAS market operates. If South Wales under GGAS. They have looked there is a challenge here, it is probably the at it and said, ‘Oh! We can get more money challenge that Senator Milne highlighted, under the RET than we can get in New South which is to find the means to reconcile the Wales with GGAS.’ Their argument was, ‘Oh operation of this New South Wales scheme dear, we will be left out in the cold; GGAS is with the operation of the renewable energy ending, there is nothing to take its place and target. That reconciliation should not mean therefore we need to be considered,’ so the that this chamber should at present say to government moved to put them in the RET, industries like waste coalmine gas, ‘No, we even though it is not renewable energy, will leave you over there in an uncertain above the target at that time. We now have a scheme with an uncertain future and an un- scenario where they can see a windfall gain certain price, and you can deal with that be- at the taxpayer’s expense. It is simply not on. cause we are not going to make room to ac- commodate you.’ A far better outcome would We should have a better mechanism for be to say we will accommodate them here dealing with the established industries in the and that we—in particular, the government— New South Wales scheme into the future will negotiate with the New South Wales than putting them in the renewable energy government about how they might adjust, target, regardless of whether there is an fix, wind up or provide certainty, whatever is emissions trading scheme or whatever ar- necessary, to GGAS to ensure that there is a rangements are made in the future. What complementary role for the schemes or that other industry can sit back and say, ‘Oh well, they work together or, indeed, if they do not we’ve got a choice of subsidies here; we will work together, that either there should be a go for the Commonwealth subsidy because clear line between them or only one of them

CHAMBER Wednesday, 23 June 2010 SENATE 4091 should operate. But, at present, the uncer- validly so, because we should be utilising all tainty of having a scheme that is forecast to of these things, even though they may not fit close at an unknown end date in New South what any of us would accept to be a pure Wales does not assist an industry like this. definition of renewable. This is the neatest There were government accepted coalition way to ensure there is some incentive. If concerns regarding waste coalmine gas last Senator Milne and others want to propose year. I am sure they accepted it in part be- alternatives in the future—fabulous! But cause there was recognition from their own right now this is the only option on the table. side. Even Labor Senators Cameron, Feeney, It should be included and we should be mak- Furner and Pratt had positive recommenda- ing sure we provide some certainty for all of tions about the inclusion of waste coalmine those sectors. gas last year when they were looking at this Senator XENOPHON (South Australia) issue. They understand that this energy (11.44 am)—I am not able to support these source, just like other waste energy sources, amendments moved by the government. I needs to be treated in an effective way. It have had a number of representations in re- may not be a renewable energy in the pure cent days— sense that we consider renewable energy, but Senator Wong—Moved by the opposi- it is nonetheless a by-product that can be tion! used effectively—is being used effectively— Senator XENOPHON—By the opposi- to generate energy. There should be an incen- tion, I am sorry. You are still the government; tive to make sure that by-product is captured they are still the opposition. Let me get that and used rather than leaving it in some sort straight. of limbo land, as would happen if it was left in GGAS. Senator Wong—You sound like Tony Abbott! Senator MILNE (Tasmania) (11.42 am)—The point is that waste coalmine gas is The TEMPORARY CHAIRMAN not renewable energy; it is fossil fuel gener- (Senator Carol Brown)—Senator Xeno- ated. It is not renewable, so it should not be phon, please proceed. in this target. When we heard all that evi- Senator XENOPHON—You should dence in the Senate committee—I was there withdraw that, Senator Wong; it was quite to hear it all as well as the other senators you offensive. named—it was agreed that something should This is an important issue, and there have be done about supporting it, but not in the been a number of representations made to renewable energy target. The point was that my office in recent days from the waste people could not work out what other coalmine gas industry. Whilst I appreciate scheme to use to support it. This was a stop- those representations, the reason that I can- gap measure, but it does not justify it being not support this is primarily because the in the target. waste coalmine gas industry still gets the Senator BIRMINGHAM (South Austra- benefit of the New South Wales govern- lia) (11.43 am)—I will make only one point ment’s GGAS scheme. If we had a CPRS in response to Senator Milne. That point is then obviously things would change because that there are other forms of emissions, such the GGAS scheme would fall off in relation as from landfill, that are captured and used to that, but whilst there is a GGAS scheme it for energy. They are included in the scheme, is not appropriate to bring waste coalmine

CHAMBER 4092 SENATE Wednesday, 23 June 2010 gas into this particular scheme. It is true that bate we are seeking to balance a range of it is not renewable but this scheme does have policy objectives, and one of the things we a number of other elements of it that could have to balance is cost to electricity consum- be seen as not pure and I think there is a pol- ers. This is a subsidy. Through this scheme icy difference between the circumstances we deliver a subsidy to renewable energy surrounding landfill gas and waste coalmine and we do that because it is in the national gas. There is a fundamental difference be- interest to increase the amount of renewables tween the two. that are feeding in to the grid. So we con- The GGAS scheme is already in place. I sciously set aside a market for those renew- understand that the minister has also had a ables and we say that we are going to make number of representations in recent days sure that at least 20 per cent of our electricity from the waste coalmine gas industry and, if comes from these sources. But one of the there are genuine concerns about the impact things that we have to balance is ensuring on the industry as a consequence of this leg- that we do not impose unnecessary costs on islation then obviously I would appreciate an electricity consumers. undertaking from the minister that those The amendments to the RET are about concerns will be monitored closely. But, unleashing the investment needed to supply given that the GGAS scheme is still in place renewable energy to Australians and to sup- and that it is there to give credits for this in- port the jobs of the future. The proposal to dustry, I do not think it appropriate that they give more money to waste coalmine gas is be brought within this scheme. I therefore about increasing the price of power to con- cannot support this amendment. sumers for a non-renewable energy source Senator WONG (South Australia— and, whilst I understand what the opposition Minister for Climate Change, Energy Effi- has said on this in relation to, I think, land- ciency and Water) (11.46 am)—The govern- fill, I agree with Senator Xenophon that there ment will not be supporting this amendment, is a policy difference. We did come to an and I make three points. Senator Birming- agreement and we will honour that agree- ham urges us to honour the deal. Well, Sena- ment in the event that those circumstances tor, the deal is intact. The agreement that the arise. government came to was that, where there Question put: was a price on carbon through the CPRS That the amendment (Senator Birmingham’s) which resulted in the end of the GGAS, we be agreed to. would include existing waste coalmine gas The Senate divided. [11.53 am] projects above the target, recognising the (The Deputy President—Senator the Hon. position that these companies were in. That AB Ferguson) remains the position, but what you are seek- ing is a different proposition. Ayes………… 32 Second, there were some comments made Noes………… 33 about uncertainty. I would make the point, Majority……… 1 Senator Birmingham, that if there is uncer- tainty in the GGAS market as a result of the AYES CPRS, well, you did have the opportunity to Abetz, E. Adams, J. * provide that in December. But I will leave Back, C.J. Barnett, G. Bernardi, C. Birmingham, S. that point. My third point is this: in this de- Boswell, R.L.D. Boyce, S.

CHAMBER Wednesday, 23 June 2010 SENATE 4093

Brandis, G.H. Bushby, D.C. AYES Cash, M.C. Colbeck, R. Arbib, M.V. Bilyk, C.L. Coonan, H.L. Cormann, M.H.P. Bishop, T.M. Brown, B.J. Eggleston, A. Ferguson, A.B. Brown, C.L. Cameron, D.N. Fierravanti-Wells, C. Fifield, M.P. Collins, J. Crossin, P.M. Fisher, M.J. Humphries, G. Farrell, D.E. Feeney, D. Kroger, H. Macdonald, I. Fielding, S. Forshaw, M.G. Mason, B.J. McGauran, J.J.J. Furner, M.L. Hanson-Young, S.C. Minchin, N.H. Parry, S. Hurley, A. Hutchins, S.P. Payne, M.A. Ryan, S.M. Ludlam, S. Ludwig, J.W. Scullion, N.G. Troeth, J.M. Lundy, K.A. Marshall, G. Trood, R.B. Williams, J.R. McEwen, A. McLucas, J.E. NOES Milne, C. Moore, C. Arbib, M.V. Bilyk, C.L. O’Brien, K.W.K. * Polley, H. Bishop, T.M. Brown, B.J. Pratt, L.C. Siewert, R. Brown, C.L. Cameron, D.N. Stephens, U. Sterle, G. Collins, J. Crossin, P.M. Wong, P. Wortley, D. Farrell, D.E. Feeney, D. Xenophon, N. Fielding, S. Forshaw, M.G. NOES Furner, M.L. Hanson-Young, S.C. Abetz, E. Adams, J. * Hurley, A. Hutchins, S.P. Back, C.J. Barnett, G. Ludlam, S. Ludwig, J.W. Bernardi, C. Birmingham, S. Lundy, K.A. Marshall, G. Boswell, R.L.D. Boyce, S. McEwen, A. McLucas, J.E. Brandis, G.H. Bushby, D.C. Milne, C. Moore, C. Cash, M.C. Colbeck, R. O’Brien, K.W.K. Polley, H. Coonan, H.L. Cormann, M.H.P. Pratt, L.C. Siewert, R. Eggleston, A. Ferguson, A.B. Stephens, U. Sterle, G. Fierravanti-Wells, C. Fifield, M.P. Wong, P. Wortley, D. Fisher, M.J. Humphries, G. Xenophon, N. Kroger, H. Mason, B.J. PAIRS McGauran, J.J.J. Minchin, N.H. Parry, S. Payne, M.A. Heffernan, W. Evans, C.V. Ryan, S.M. Scullion, N.G. Johnston, D. Conroy, S.M. Troeth, J.M. Trood, R.B. Joyce, B. Hogg, J.J. Williams, J.R. Nash, F. Faulkner, J.P. Ronaldson, M. Carr, K.J. PAIRS * denotes teller Carr, K.J. Macdonald, I. Question negatived. Conroy, S.M. Johnston, D. Evans, C.V. Nash, F. Question put: Faulkner, J.P. Joyce, B. That schedule 1 stand as printed. Hogg, J.J. Heffernan, W. The committee divided. [12.00 pm] Sherry, N.J. Ronaldson, M. * denotes teller (The Chairman—Senator the Hon. AB Ferguson) Question agreed to. Ayes………… 33 Senator XENOPHON (South Australia) (12.03 pm)—I move amendment (1) stand- Noes………… 31 ing in my name on sheet 6116: Majority……… 2

CHAMBER 4094 SENATE Wednesday, 23 June 2010

(1) Schedule 1, item 96, page 58 (lines 28 to greater information and greater transparency. 30), omit subparagraph 141AA(c)(ii), substi- The opposition thinks that is a wise thing and tute: welcomes it. (ii) a statement that the certificate Senator MILNE (Tasmania) (12.05 was created in relation to a solar pm)—The Greens also support this amend- water heater other than an air source heat pump water heater, or ment. that it was created in relation to Senator WONG (South Australia— an air source heat pump water Minister for Climate Change, Energy Effi- heater, or that it was created in ciency and Water) (12.06 pm)—Senator relation to a small generation unit Xenophon, I understand this amendment is (as appropriate) only seeking to require the publication of The amendment relates the publication of information and I think the government is in information about certificates for air source a position to agree to that aspect of your heat pump water heaters. This amendment amendment. I understand the proposition you addresses the need for clear information to are putting about the utility of having the two be published about the uptake of renewable separate aspects of solar water heater infor- energy certificates for small-scale technolo- mation disaggregated. gies. Currently, the information provided Question agreed to. includes both solar and electric heat pumps within the one group. I believe it would be Senator XENOPHON (South Australia) useful for further assessment of the RECs (12.07 pm)—I move amendment (2) on sheet scheme to see how many certificates are al- 6116 standing in my name: located to various technologies and in what (2) Schedule 1, page 60 (after line 2), before amounts. item 100, insert: I am grateful to Minister Wong’s office for 99A Subsection 5(1) providing details of the proportion of the Insert: historical and projected REC creation for air source heat pump water heater small-scale technologies such as heat pumps means a device that uses a vapour and solar hot water heaters, but that informa- compression cycle incorporating a tion is not readily available. From a public compressor, an evaporator that collects policy and public interest point of view, I energy from the latent and sensible heat of the atmosphere and a condenser that believe that information ought to be pub- delivers heat either directly or indi- lished. We now have the information about rectly to a hot water storage container. the RECs created for small-scale technolo- This amendment provides for a definition of gies but it is not broken down into electric air source heat pump water heaters as being heat pumps and solar hot water heaters. That ‘a device that uses a vapour compression is what this amendment is about. It is a cycle incorporating a compressor, an evapo- transparency measure and I urge my col- rator that collects energy from the latent and leagues to support it. sensible heat of the atmosphere and a con- Senator BIRMINGHAM (South Austra- denser that delivers heat either directly or lia) (12.05 pm)—On behalf of the opposi- indirectly to a hot water storage container’. tion, I indicate our support for Senator This makes air sourced electric based heat Xenophon’s amendment. As he said, it is pumps distinctly separate from other, more simply an amendment about providing efficient, heat pumps, such as solar, for ex-

CHAMBER Wednesday, 23 June 2010 SENATE 4095 ample, so that they can be individually con- hot water services, solar systems and the like sidered against other technologies. are targeted at residential installations, and Senator BIRMINGHAM (South Austra- we believe that is reasonable here. All sena- lia) (12.08 pm)—The opposition believes tors would be aware that there are concerns this seems to be a common-sense amend- about the extent to which heat pump water ment. Unless we hear advice to the contrary, heaters have contributed to the generation of we would indicate our support for it. Obvi- RECs and whether they have contributed ously, it is being implemented to assist with unreasonably at the expense of others. That further amendments as well. is not a debate I want to buy into on this one in particular, but we are seeking here very Senator XENOPHON (South Australia) clearly to set a limit, and 425 litres is one (12.08 pm)—I am grateful to Senator Bir- that we have discussed with industry. We mingham for setting that out. I ought to have have engaged in consultation in that regard done that. This amendment sets the scene for to attempt to find a reasonable point and we other amendments, but I point out to my col- think that this is a reasonable point for such a leagues that they could support this amend- cap to be put in place. ment and not necessarily be committed to supporting other amendments. It is a precur- Senator MILNE (Tasmania) (12.11 sor to further amendments but it is not con- pm)—The Greens will be supporting the tingent on the further amendments. coalition’s amendment. I think it is really important that we separate out the commer- Senator WONG (South Australia— cial and residential, and even the industry Minister for Climate Change, Energy Effi- itself recognises that the time has come for ciency and Water) (12.08 pm)—The gov- action on this. ernment does not oppose this amendment. Senator XENOPHON (South Australia) Question agreed to. (12.12 pm)—I know that the running sheet Senator BIRMINGHAM (South Austra- indicates that this amendment is in conflict lia) (12.09 pm)—I move opposition amend- with my amendment below it. Whilst that is ment (2) on sheet 6154 revised: the case in the respect that I will be moving (2) Schedule 1, page 62 (after line 26), after an amendment to get rid of air sourced elec- item 116, insert: tric heat pumps altogether, having that limit 116A At the end of section 21 would still be an improvement on the status Add: quo. I am already on the record—in the pre- (4) If a solar water heater is an air source vious debate, back in August—about my heat pump water heater, certificates concerns about electric heat pumps being may only be created for the installation part of this scheme, but the cap of 425 litres of such an air source heat pump water would be an improvement. We know how heater if it has a volumetric capacity of they were rorted previously in terms of not more than 425 litres. commercial heat pumps. In that respect the This amendment quite simply seeks to put in government’s changes to the regulations place a cap for the eligibility of heat pump were welcome, but there is still an issue of water heaters and places that cap at 425 li- the auditing of it. The government’s moves tres. This figure has been agreed to on the in that regard were welcome, but this makes basis that it provides a differential between it absolutely clear that you cannot have commercial installations and residential in- commercial heat pumps larger than 425 li- stallations. Most of these incentives around tres, so I think it is a welcome development.

CHAMBER 4096 SENATE Wednesday, 23 June 2010

Senator WONG (South Australia— can be created for the installation of an Minister for Climate Change, Energy Effi- air source heat pump water heater are ciency and Water) (12.13 pm)—The gov- proportionally reduced, so that no cer- ernment does not support this amendment. tificates can be created for such an in- We have had a long debate previously about stallation after the end of 31 December 2012. heat pumps. They have obviously been in- cluded in the renewable energy target since This amendment provides for electric heat 2001. They do use a renewable energy pumps to be phased out of the renewable source to heat water and to displace conven- energy target by the end of 2012. I believe it tional fossil fuel energy. We will not be sup- is somewhat of a contradiction that electric porting this amendment or, I foreshadow, heat pumps are eligible for renewable energy Senator Xenophon’s amendment. However, I certificates. They can certainly be considered understand from Senator Milne’s contribu- as energy efficient, but not renewable. tion that the opposition has the support of the I know Senator Milne’s contribution on chamber in relation to this amendment. The this—on a number of occasions—is that we Greens are supporting the opposition’s ought to be looking at a separate energy effi- amendment and therefore the government ciency scheme with respect to electric heat obviously will not have majority support in pumps in particular. I would urge the gov- the chamber for our opposition, so in the ernment to establish a separate energy effi- interest of the efficacy of the debate I put ciency scheme to deal with subsidising such that on record but will not be seeking to call technologies and leave the RET scheme to a division. deal purely with renewable technologies. Question agreed to. I am also a realist, and I do have an alter- Senator XENOPHON (South Australia) native amendment in relation to the deeming (12.14 pm)—I withdraw amendment (3) on rate for electric heat pumps. I will not be sheet 6116 because it has effectively been seeking to divide on this, but I would be dealt with by Senator Birmingham’s amend- grateful if my colleagues could indicate their ment. I move amendment (4) on sheet 6116: views on this. I think there are some impor- tant principles at stake here with respect to (4) Schedule 1, page 63 (after line 29), after item 119, insert: electric heat pumps and whether they ought to be included in a renewable energy scheme 119A At the end of Subdivision B of as distinct from an energy efficiency scheme Division 4 of Part 2 in the first place. Add: Senator BIRMINGHAM (South Austra- 23AAA Regulations to phase out air lia) (12.16 pm)—The opposition welcomes source heat pump water heaters from scheme the withdrawal of amendment (3) and thanks the chamber and particularly the Greens and (1) The regulations must provide for air source heat pump water heaters to be Senator Xenophon for their support of our phased out of the scheme constituted previous amendment. With regard to by this Act by the end of 31 December amendment (4), it is not the intention of the 2012. opposition to support this phase-out. We do (2) For the purposes of subsection (1), the recognise the validity of this industry and of regulations must provide that, after the this technology. We think the technology commencement of this section, each does have a valid place and provides an im- month the number of certificates that portant alternative for households in terms of

CHAMBER Wednesday, 23 June 2010 SENATE 4097 their choice of hot water service—a service fort that can be achieved from efficiency and that can reduce their energy consumption, the effort that can be achieved from the gen- and is therefore a positive in that sense and eration of renewable energy. We do not have valid under this scheme. Equally, and impor- that regime—and we ought to have one. We tantly for households, it is a product that can would have saved ourselves a lot of prob- be delivered and provided quickly in emer- lems if indeed we had that scheme, but we gency situations. Regrettably, the time in- do not. volved in installing, for example, solar hot We are facing a conundrum here, and the water services is more difficult and more government will really have to engage very expensive and requires longer planning by carefully in the next few years. With the households—which, when replacing a hot phase-out of electric hot water in 2012, there water system, is not always possible. At pre- will be quite considerable competition be- sent, given current technology and current tween heat pumps and solar hot water. If you options, we think there is an ongoing place take away the support for heat pumps— for the inclusion of heat pumps. which the gas industry would very much I also note that the chamber has already like—it would mean that you would bring on carried amendments facilitating a biennial instantaneous gas in approximately the same review of the operation of the entire scheme price range as heat pumps. And, as this and that Senator Xenophon and those else- phase-out of electricity goes on, it will where who share his concerns about this is- change the mix in relation to solar hot water sue would be able, under that biennial re- as well. view, to advocate for a phase-out or closure There is going to be a significant change of heat pumps at some later stage. after 2012 in Australia around hot water, and Senator MILNE (Tasmania) (12.18 that is going to play out in this whole area of pm)—I indicate to Senator Xenophon that instantaneous gas, heat pumps and solar hot the Greens will not be supporting his water units. That is something that the gov- amendment (4). Senator Xenophon asked for ernment is going to have to look at very, very an indication on his amendment with respect carefully. But I do not think it is appropriate to the deeming period for air source heat to effectively give gas a leg up by taking pump water heaters, and I indicate that we away the support for heat pumps in the will not be supporting that either. But I want meantime. I think heat pumps have a fantas- to make a few remarks as to what the think- tic future. The possibility of being able to ing is. The problem we have here—which, as combine heating and cooling from this tech- Senator Xenophon indicated, I have spoken nology, in refrigeration and so on, into the about endlessly and I will raise it again to put future is fantastic. There are big opportuni- it on the record—is that we ought to have a ties coming down the line, and I think we are national energy efficiency target and we going to see radical changes in technology in ought to have national energy efficiency the next few years. schemes which support that target. If we did So I wanted to put on the record that my that, we would be taking out heat pumps concern with Senator Xenophon’s proposal is from the renewable energy target and putting the change in the mix that it will provide them where they should be, in an energy ef- between gas and the heat pumps, but I am ficiency scheme—and the same with solar also worried about how heat pumps might hot water. You would actually be making a crowd out solar hot water. We just do not really sensible division in looking at the ef-

CHAMBER 4098 SENATE Wednesday, 23 June 2010 know what is going to happen here. That is attractive. Therefore, it will make solar heat why I am pleased that we have a review in pumps, as in using photovoltaic cells, more place as a result of the support of the cham- attractive than electric heat pumps. ber for the amendment I put up earlier. That Under this amendment, the deeming pe- will give us a better handle on what is hap- riod will change effective from 1 January pening when that phase-out of electric hot 2013, so there is, I believe, a very fair transi- water cylinders takes place. tional period of some 2½ years before this Senator WONG (South Australia— would come into force, if it is passed. I un- Minister for Climate Change, Energy Effi- derstand the concerns of the industry about ciency and Water) (12.22 pm)—Sorry, Sena- the impact this may have on their business tor Xenophon; I thought I had responded in but I believe it is vital that we strive to sup- the previous amendment to your request for port renewable energy technologies, which is an indication. The government is not minded the intent of this legislation, as much as we to support either your amendment (4) or can and that we encourage consumers to- amendment (5), for the reasons I have previ- wards these better alternatives. I note the ously outlined. pressure in recent times on the solar hot wa- Question negatived. ter heaters using solar panels. I know that in South Australia Rinnai laid off a number of Senator XENOPHON (South Australia) workers—I think from 90 to 55 workers— (12.23 pm)—I move amendment (5) on sheet and has been standing down people, not be- 6116 standing in my name. cause they do not produce a good product— (5) Schedule 1, item 117, page 63 (after line 6), they do—but because the company has been after subsection 22(2), insert: crowded out in a sense by the electric heat (3) Without limiting subsection (1), regula- pumps. This is about trying to redress that tions made for the purpose of that sub- balance in a transitional way by adjusting the section must provide that, from deeming period from 10 years to six years. I 1 January 2013, the number of certifi- cates that may be created in respect of think it is a sensible compromise in the con- the installation of any air source heat text of what we face as a policy dilemma. pump water heater are only to be cre- I note Senator Milne’s contribution on this ated in relation to the first 6 years of and I value that, but I would urge her to re- operation of that heater. consider her approach in relation to this, be- I accept the Senate’s vote that electric heat cause reducing the deeming period will make pumps will remain eligible under the RET electric heat pumps somewhat less attractive and I appreciate the contribution of my col- and encourage greener technologies such as leagues; however, I still believe that we need solar water heaters. Therefore, this is a half- to acknowledge that it is not the ideal tech- way house, if you like, but it will actually nology that we should be supporting when it send a signal that solar hot water heaters comes to renewable energy. As such, I pro- rather than electric heat pump heaters will be pose this amendment, which will reduce the somewhat more attractive in the market deeming period from 10 years to six years place. That is why I see this as an alternative for electric heat pumps. In other words, it approach. It is also a step-down in the sense will mean there will be less of a subsidy, if of having a transitional period of some 2½ you like. Given that it will restrict the period years. I would urge colleagues to seriously from 10 years to six years, it will not knock consider this amendment. out heat pumps but it will make them less

CHAMBER Wednesday, 23 June 2010 SENATE 4099

Senator BIRMINGHAM (South Austra- it is in this scheme. If you take away that lia) (12.26 pm)—The opposition is inclined support for heat pumps, then you drive gas. to support Senator Xenophon on this What that does to solar is hard to say, but it amendment. We do so seeing it a compro- is not going to drive solar; it will drive gas. mise on some of the concerns that he and Senator XENOPHON (South Australia) others have raised around this sector. We do (12.29 pm)—I would like to briefly respond so noting that the amendment provides for a to Senator Milne. If this amendment drives start date from 1 January 2013—a reasonable part of the market towards gas, which is not period looking forward in terms of providing a renewable fuel but which is a fuel with a some industry certainty. Also, we do so not- lower greenhouse gas profile than electricity ing once again the review mechanisms that generated by coal fired power stations, then have been put in place and that there will be that would be a good thing. I see gas as an a review, I think, likely to be undertaken important transitional fuel in order to achieve prior to that time. Therefore, there is a capac- the ambitious targets we need to achieve in ity to reconsider. As I said before in relation terms of reducing greenhouse gases. This is a to our previous amendment, we do this not in halfway measure that would drive greener any way disputing the validity of heat pumps technologies, in relative terms, than would but, just as consideration has been given to be the case if this amendment did not pass. I the extent of the incentive and subsidy pro- cannot put it any higher than that. Again I vided for some other products, such as solar urge my colleague Senator Milne to at least PV, within the amendments under considera- reconsider that, but it seems that we will tion today we think it is equally reasonable need to revisit this sooner rather than later to give some consideration as to the size and once we have had the two-year review, if this extent of the incentive or subsidy that is amendment does not pass. there for heat pumps. We see this as hope- Senator WONG (South Australia— fully a reasonable way to achieve that. Minister for Climate Change, Energy Effi- Senator MILNE (Tasmania) (12.28 ciency and Water) (12.30 pm)—I make the pm)—I am really concerned about the prin- observation that, on the basis of the indica- ciple here of intervening in this way on the tions to the chamber, this amendment stands deeming period, for one sort of technology, or falls on the vote of Senator Fielding, so without really understanding what it is going the chamber might have to test that. I already to do to the mix in that sector. I understand indicated our attitude to this amendment, Senator Xenophon believes that this will ac- Senator Xenophon, in my earlier contribu- tually drive solar, but it will not; it will drive tion, but I want to make a brief response in gas in this particular sector. That is not the relation to the interchange you just had with outcome that we want to achieve here. I to- Senator Milne. What gas needed was a price tally agree that we are in a conundrum, be- on carbon. If you talk to the gas industry, you cause we do not know what the hot water find out that the passage of the CPRS was sector is going to look like post 2012. It is what the gas industry, in its different forms, very hard to make judgments about that right really required. Whilst it is still a fossil fuel, now. I really do not think it is a good princi- as you make the point, it is a less greenhouse ple to intervene in this way without a sense intensive fuel than others—coal, for exam- of exactly what we are likely to be driving or ple. The government’s preferred position was otherwise. My sense of it is that it should be a price on carbon and a renewable energy in an energy efficiency scheme. But it is not; target. That would have dealt with a number

CHAMBER 4100 SENATE Wednesday, 23 June 2010 of the issues you have raised far better than Wortley, D. tinkering at this point with the renewable PAIRS energy target. Brandis, G.H. Conroy, S.M. Question put: Heffernan, W. Hogg, J.J. That the amendment (Senator Xenophon’s) Johnston, D. Faulkner, J.P. be agreed to. Macdonald, I. Sherry, N.J. Williams, J.R. Carr, K.J. The committee divided. [12.36 pm] * denotes teller (The Chairman—Senator the Hon. AB Question negatived. Ferguson) Senator WONG (South Australia— Ayes………… 33 Minister for Climate Change, Energy Effi- Noes………… 33 ciency and Water) (12.39 pm)—I move gov- Majority……… 0 ernment amendment (1) on sheet CA252: (1) Schedule 1, page 63 (after line 29), after AYES item 119, insert: Abetz, E. Adams, J. 119A Subsection 23B(2) Back, C.J. Barnett, G. Bernardi, C. Birmingham, S. After “multiplied by”, insert “a number Boswell, R.L.D. Boyce, S. that does not exceed”. Bushby, D.C. * Cash, M.C. This is an amendment which enables the al- Colbeck, R. Coonan, H.L. teration, in certain circumstances, of the so- Cormann, M.H.P. Eggleston, A. lar credits multiplier. It is in step with some Ferguson, A.B. Fierravanti-Wells, C. of the amendments which have previously Fifield, M.P. Fisher, M.J. Humphries, G. Joyce, B. been dealt with. This amendment allows for Kroger, H. Mason, B.J. the solar credits multiplier for small genera- McGauran, J.J.J. Minchin, N.H. tion units to be reduced in circumstances Nash, F. Parry, S. specified in regulations. It is the intention Payne, M.A. Ronaldson, M. that solar credits would be able to be reduced Ryan, S.M. Scullion, N.G. if the Renewable Energy Regulator deter- Troeth, J.M. Trood, R.B. Xenophon, N. mines there is systemic evidence of a range of issues, including relatively small or no NOES out-of-pocket expense. We intend to consult Arbib, M.V. Bilyk, C.L. industry on draft regulations that will come Bishop, T.M. Brown, B.J. into force in the future in relation to this is- Brown, C.L. Cameron, D.N. Collins, J. Crossin, P.M. sue, so this amendment is to enable such Evans, C.V. Farrell, D.E. regulations to be made. Feeney, D. Fielding, S. Senator MILNE (Tasmania) (12.40 Forshaw, M.G. Furner, M.L. pm)—This goes to the issue of the dilemma Hanson-Young, S.C. Hurley, A. that is out there at the moment, because we Hutchins, S.P. Ludlam, S. Ludwig, J.W. Lundy, K.A. do not have a national gross feed-in tariff, so Marshall, G. McEwen, A. * each state has different levels of support and McLucas, J.E. Milne, C. different schemes in place such that we have Moore, C. O’Brien, K.W.K. the two extremes. We have New South Wales Polley, H. Pratt, L.C. with a very generous feed-in target, Tasma- Siewert, R. Stephens, U. Sterle, G. Wong, P.

CHAMBER Wednesday, 23 June 2010 SENATE 4101 nia with nothing and everyone else some- householder to be able to access this tech- where in between. nology. This is a real conundrum and it is Senator Birmingham—Aren’t you afraid made because, in many ways, we do not of the government of Tasmania? have the kinds of uniformity we ought to have around the country. Nevertheless, I ap- Senator MILNE—I will take the interjec- preciate the fact that we have had a lot of tion from Senator Birmingham. I trust that discussion with the government about how Tasmania, being such a laggard, can improve we might go about fixing this. Initially, I was its position now that we have a couple of attracted to the idea of going to the three- Greens in the cabinet. I certainly hope that is three proposal, but having talked a lot to the going to be the case, but I just use this at the industry they say that it is wrong to assume moment, not particularly because I am a that there is going to be an explosion in free senator for Tasmania but, more particularly, systems that we are told are already available to demonstrate to the Senate the range of in New South Wales. different levels of support across the country. As a result of that, when you have a multi- It seemed to us that the best idea would be plier for the small-scale photovoltaic system to give the minister power, through the regu- at five and you have a cap limit at 1.5 kilo- lations, to be able to monitor this scenario watts, you end up in a scenario where, in and to be able to change the size of the sys- Tasmania, such a system installed would cost tem and the multiplier when it came to the somewhere between $2½ thousand and photovoltaic systems. This is purely to make $5,000, depending on the quality of the sys- sure that you get sustainable growth in the tem and so on. In New South Wales there is industry to make sure that you maintain your evidence to suggest that, already, the same quality controls and you get a steady devel- system would be free or almost free. We had opment of the industry. a lot of evidence to the Senate inquiry, par- Progress reported. ticularly from Solar Systems, Conergy and Debate interrupted. some of the big companies, that once you get MATTERS OF PUBLIC INTEREST down to a very small co-contribution from the household or it is free you get the same The ACTING DEPUTY PRESIDENT kinds of problems we had with the insulation (Senator Ryan)—Pursuant to order, I now program: the whole thing goes out of control call on matters of public interest. and you end up with it being rorted. You can Hospitals imagine how easily that could occur in this Senator POLLEY (Tasmania) (12.45 circumstance. pm)—I rise today to speak on matters of The issue is that if you do as those other public interest and certainly matters which companies suggested, and you increase the are initiating topical debate around this coun- size of the system to, say, three kilowatts and try. Indeed, it is not a simple task to overhaul reduce the multiplier to three, that would years of neglect by the former Liberal gov- work in New South Wales, where it would ernment as far as the health system is con- still be a reasonable cost to households, but cerned, but our Labor government has shown in Tasmania, as it currently stands, it would the intellect and resolve to tackle the monu- mean that the cost of a system would be mental task of reforming Australia’s ailing somewhere between $10,000 and $15,000, health system from the ground up. putting it outside the capacity of an ordinary

CHAMBER 4102 SENATE Wednesday, 23 June 2010

In attempting to reinvent the failing, disil- made the reforms that were necessary we had lusioned and fragmented health system that the foundations that were needed. we inherited from Tony Abbott in 2007 a Increased funding and centralised admini- complex process of research, consultation, stration of these moneys will provide a more planning and budgeting was initiated. Amaz- streamlined and efficient use of available ingly, the essential task of government con- finances. This is long overdue as was high- sultation around the country attracted criti- lighted by the Australian Healthcare Associa- cism from those opposite, not the least from tion way back in 2005. They said that ineffi- Senator Fierravanti-Wells, who alluded to the ciencies due to cost-shifting and funding du- government ‘spruiking the new system plication were reducing the efficiencies and around the country’. She made this assertion effectiveness of our system. during a recent Senate inquiry into the It has taken a new government and a new COAG health reform. Such attitude typifies health minister to formulate a clear plan and how dangerous it could be putting health policy that is integral to reforming our health responsibility back into the hands of those system. At the same time as noting such who inflicted so much damage to the system positive support for the National Health and over such a long period of time. Hospitals Network reforms I wish to high- Imagine the complexities facing those light the differences in attitude and policy charged with overhauling an outdated, poorly between the opposition and the government. funded and underperforming service. Each I would like to pre-empt these points with a and every area of health provision requires quote from Tony Abbott printed in the Syd- attention from aged care, health generally, ney Morning Herald attacking the Prime hospitals and mental health through to the Minister even before an announcement con- training of doctors and nurses. Australia’s cerning the National Health and Hospitals young and old alike have been let down over Network reforms was made. Referring to the a long period of time. Those opposite had Prime Minister, Mr Abbott said: 11½ years in government to reform health I think it is hugely improbable he is going to but what did they do? They did nothing. The come up with a policy that we are going to sup- one constant running through the Senate port. hearing that I alluded to earlier was the That was from the Leader of the Opposition, unanimous agreement by all the witnesses from the leader who has no policies and, in that the Australian health system had not just fact, no credibility when it comes to his re- collapsed and faced difficulties in the last 2½ cord in health. years. There were many experts who gave evidence to that committee about the un- Such negativity is reflected by the follow- precedented lack of attention given to it by ing figures. In 2003 Mr Abbott cut $108 mil- the previous government. This was another lion from public hospitals. In 2004 he cut repetitive note of agreement. As I said, it was $172 million. In 2005 he cut $264 million, in acknowledged that it was due to the total 2006 a further $372 million and even more neglect of the previous government that we in his final year as the minister for health. inherited this system. In fact, the witnesses That is more than $1 billion slashed from our were very supportive of the Prime Minister hospitals in five short years. Imagine the and Minister Roxon’s task of going around number of Australians that money could this country consulting with those that work have assisted—$1 billion slashed. No won- in the health system to ensure that when we der Tony Abbott is considered such a risk to

CHAMBER Wednesday, 23 June 2010 SENATE 4103 our health system, let alone to the Australian his policymaking. He has also committed to economy. In the time that Mr Abbott was the reviewing the diabetes funding—quite a health minister he relinquished his federal questionable decision, as the funding has funding responsibilities and the states were been hailed by those within the medical fra- forced to fund the 10 per cent discrepancy. ternity, let alone the community, as being a This is another example of Phoney Tony dis- fantastic initiative of this government. appointing the country’s health community. Ultimately, this will destroy families and Mr Abbott has a record of failure as the min- their children, who will suffer from the op- ister for health. Why would you trust him as position’s lack of interest in properly funding a leader? That is why the community see him health in this country. After all, they had 11½ as a risk. Mr Abbott— years, and what sort of reform did we see? Senator Bernardi—Mr Acting Deputy We saw no reform at all. In contrast, the President, I rise on a point of order. If the Rudd government is investing heavily in en- Senator is going to refer to the Leader of the suring that we have a workable and efficient Opposition I would ask that he be referred to health system now and into the future. There by his correct title. will be more specialist doctors available The ACTING DEPUTY PRESIDENT through a $145 million education program. (Senator Ryan)—That is quite correct. We have improved access to physicians and Senator Polley I would ask you not to use expanded clinical capacity, courtesy of a that terminology when referring to a member $632 million package aimed at training more of the other place. general practitioners. A further $148 million has been made available to assist junior doc- Senator POLLEY—Thank you, Mr Act- tors in early stages of their career. At a recent ing Deputy President, but as you just heard I Senate inquiry on COAG, Senator Fierra- said Mr Abbott continues to blame everyone vanti-Wells asked: else for his mistakes, his blunders, his ineffi- ciencies, his lack of consultation and his Why were the Prime Minister and his health min- slashing of funding. That blame game can no ister travelling the country consulting health pro- fessionals? longer continue. Let’s hail Prime Minister Rudd and health minister Roxon for their That, I think, sums up the opposition. Why efficiency in working quickly to make the would you want to consult those people who reforms that Australia has been waiting for. are at the coalface, treating our patients and looking after the health welfare of all Austra- If we were to include all the cuts over lians? That is obviously why those opposite every facet of the health system that the op- have no policy at all. That is what they have position would be making under the com- to do: they have to go out and consult and mitments that they have already made, they demonstrate that they have the capacity to would come to $820 million from the health come up with policies. We are doing that. I sector. The opposition have indicated that know it is a novel idea for those people op- under an —God forbid— posite to get out and talk to real Australians, the investments in GP practices and advances but that would be my tip to them. in e-health would be discontinued. The final total of slashed funds could be well over an- The 250,000 diabetes sufferers will be re- other billion dollars under Mr Abbott. I think lieved to see a $436 million injection to keep Mr Abbott actually likes the billion-dollar them healthier and out of hospital. This com- slashing out of health; it must be a quirk in prehensive National Health and Hospitals

CHAMBER 4104 SENATE Wednesday, 23 June 2010

Network reform package will total $7.3 bil- November 2003. He set a five-year deadline lion over five years, a commitment which for establishing ‘an integrated electronic will benefit all of us. health record and for paperless Medicare There are three specific areas I would like claiming’. This quote on Open Forum in to comment on further today: e-health, aged 2008 is just amazing: care and mental health. E-health is the estab- The inability of ministers, public servants, man- lishment of a secure national electronic per- agers, IT experts and health professionals as yet sonal health record system. It is one of the to move the health sector into the modern world, most fundamental and substantial reforms of at least in this one critical respect, constitutes an the National Health and Hospitals Network important systemic failure. package. As Minister Roxon explained yes- Tony Abbott is demonstrating that his atti- terday in her speech: tude to health policy today is basically what E-health will save lives, reduce medical errors, he showed Australians when he was in office keep people out of hospital and save money for as Minister for Health and Ageing: cut funds the taxpayer. and don’t support the health system. That E-health has been widely supported by doc- was his mantra as minister for health. I cite tors, nurses and health experts. Its benefits several other clear examples. Between 2003 include improved safety and quality of care and 2007, Mr Abbott cut funding for GP training places despite a massive shortage, he as well as reducing adverse outcomes by eliminating errors. Some major stakeholders cut funding to our private hospitals by $1 have publicly recognised the importance of billion, as I alluded to earlier, and as health this aspect of the National Health and Hospi- minister he left a national shortage of 6,000 nurses. tals Network reform when forwarding sub- missions to the COAG health inquiry held Unfortunately, when it comes to aged this month. As well as citing the Australian care, it is incredible that time after time those Medical Association, I would like to quote opposite come in and lecture us about the others. Mr Vern Hughes, a committee mem- need to act now. If we go back to their record ber of the Australian Health Care Reform of almost 12 years—11½ very long years— Alliance, said at this same Senate inquiry: they did nothing except go from one crisis to … the flagged introduction of a person controlled another when it came to aged care. We know electronic health record is fundamentally impor- that there is still more to be done, but there is tant to any kind of health reform. If you imagined no way that any government can come into a banking system trying to do banking operations office and, in 2½ years, clean up a mess that without an electronic system, it would be laugh- was left by those opposite over such a long able; yet we have exactly that in health. So in my period of time, as they expect. I remind those book—and certainly from the point of view of in the chamber and those listening that dur- parents, families and carers of people with com- ing the years from 2000 to 2007 there were plex conditions, whom I represent—it is the most no fewer than five different ministers for fundamental requirement of reform. ageing in this very important area: Bronwyn That is one of the elements of this reform Bishop, Kevin Andrews, Julie Bishop, Santo that the Leader of the Opposition has canned. Santoro and Christopher Pyne. Do you know We could go on talking about aged care. Be- what they were responsible for? They were fore I do that, I remind those in the chamber ministers for crisis after crisis after crisis in of one of Mr Abbott’s comments back when the aged care sector. It is once again left to us he was Minister for Health and Ageing, in to clean up that mess.

CHAMBER Wednesday, 23 June 2010 SENATE 4105

There has been criticism about mental but neglect to mention that none of that health. We as a government acknowledge health and hospital reform inquiry or review that there is more to be done, but it might be included the topic of mental health. Appar- an opportunity for those opposite, who come ently, mental health has nothing to do with into this chamber day after day trying to lec- health, according to the Labor government. It ture us about aged care, mental health, health gives me no pleasure whatsoever to speak on and the economy, to reflect on the 11½ years the topic of mental health. The reason I am, that they had in office to make these sorts of and the reason that many distinguished peo- reforms. ple in this area have raised this topic in the Nobody that came before the Senate last few weeks, is the Rudd Labor govern- Standing Committee on Finance and Public ment’s complete absence of any action on, Administration Inquiry into COAG reforms any interest in or any funding for the area. relating to health and hospitals laid the blame My personal interest in mental health fol- for the issues and the challenges that we as a lows from my interest in disability. Many country are facing in health at the feet of the years ago I realised the issues that affect Rudd government. So it is unrealistic for people with disabilities and the families and those opposite to expect us to clean up their others who care for them were very similar mess in such a short time. But what we are to those that affect people with mental health doing is ensuring that there is proper consul- problems—the sense of powerlessness; the tation and that the foundations are built sense that you should be grateful for the very strongly for a robust and healthier health few crumbs that drop from the table; and the system that is governed by local hospital sense that, if you do not make yourself fit the networks which I, as a Tasmanian, can assure system, too bad, the system will punish you you are widely welcomed by my community. for not fitting in with what it suggests or of- I look forward very much to the time when fers. There is no sense of what people want we can discuss this issue further and bring and no sense of asking consumers or those about the sorts of reforms that this country who care for them what they need—just a deserves and that are essential for the Austra- few crumbs off the paternalistic table that lian community. I also lay down the chal- people are supposed to be grateful for. The lenge to those opposite to come up with a issues are very much the same in mental policy. Tony Abbott is a risk to health, he is a health as they are in disability, and it is very risk to be Australian community’s health, he sad that the issues for people in the mental is a risk to their jobs and he is a risk to the health area are getting worse. economy. I urge those opposite to go out and One would have thought that perhaps we consult to find out what is really happening had finished this debate. In 2006, the How- in the community. (Time expired) ard-Costello government moved to introduce Mental Health the Personal Helpers and Mentors scheme Senator BOYCE (Queensland) (1.00 and they introduced the Better Access to pm)—I have the opportunity to follow on Mental Health Care scheme. For perhaps the from Senator Polley’s contribution in this first time, people in the mental health area matters of public interest debate because I had the sense that at last a government got was intending to speak on the topic of mental it—a government that was prepared to meet health. I find it interesting that Senator Pol- their needs and to listen to what they wanted, ley can talk about health and hospital reform not simply offer a few bureaucratic crumbs from the table. There was a sense of hope in

CHAMBER 4106 SENATE Wednesday, 23 June 2010 the sector that things had started to change, according to the Labor government, and that at long last the needs of people with there is no money for mental health. Profes- mental health problems would be put ahead sor Mendoza made the point that mental of government budgets when policy was be- health funding has fallen below six per cent ing developed. of all health funding this year and yet the This year’s appointment as the Australian government’s own statistics show that mental of the Year of Professor Patrick McGorry, an health is responsible for 13 per cent of health outstanding expert and advocate in the field problems. At least 13 per cent of the health- of mental health, gave further hope that men- care burden is attributable to mental health tal health would be at the forefront of the issues and yet only six per cent of healthcare thinking not just of the Labor government funding is going into this area. but also of politicians in general. How disap- Annually, mental illness costs the Austra- pointed can everybody be—and bitterly dis- lian economy just on $30 billion. It is the appointed. I would like to be apolitical on highest area of disability covered by the this topic, but it is not possible. I think we health budget, yet the government’s response need only go back to the comments of Pro- to Professor Mendoza’s resignation has been fessor John Mendoza last weekend when he extraordinarily disappointing for the mental resigned as Chair of the National Advisory health sector. ‘We wish Professor Mendoza Council on Mental Health. Professor Men- well’ was pretty much what they said: ‘There doza was appointed to that position by Prime is new funding there.’ Well, sorry, there isn’t Minister Rudd and the Minister for Health new funding there. The increase in funding and Ageing, Ms Roxon. He was their hand- has led to an overall decrease. They put some picked person to advise them on mental more funds in, but only enough to half keep health issues. So it is somewhat shocking up with what needs to be done. that a very short time into his role as the We have the situation, as Professor Men- Chair of the National Advisory Council on doza outlined very clearly, that about 330 Mental Health Professor Mendoza has seen Australians who present to emergency de- fit to resign. I quote some of the reasons that partments with serious mental illness are he gave for resigning: turned away, and fewer than one in 15 are It is now abundantly clear that there is no vision referred. So, if you go to an emergency de- or commitment from the Rudd Government to partment with a mental illness, you have a mental health. The Rudd Government is publicly one in 15 chance of getting some further claiming credit for the increased investment in support for your problem. Otherwise, you are mental health when almost all of this is a conse- just sent home—if you have a home to be quence of the work of the Howard Government. sent to. More than 1,200 Australians a year Professor Mendoza went on to say: are refused admission to a public or private This coming financial year total spending on psychiatric unit. At least seven people die of mental health will fall to below less than 6% of suicide in Australia every day, and another all health funding … This fall in investment sim- 180 Australians attempt suicide. That is one ply beggars belief … The Prime Minister has every eight minutes. The lack of interest that clearly decided there are no votes in mental health … this government has in this area goes on and on. The bitter disappointment those words echo is supported throughout the mental health I would be the first to admit that the coali- sector. There are no votes in mental health, tion government did not get mental health all

CHAMBER Wednesday, 23 June 2010 SENATE 4107 right, but we made a good start, and the ex- insurmountable when you have a mental ill- pectation was that that start would be sup- ness. The program has been very successful ported and followed up. It was not; it has not but it is getting to the end of its five-year life. been. Let us add to Professor Mendoza’s Where is the funding for the next five years? criticisms of this government and its actions Where is the funding to extend this? Cur- the criticisms of Australian of the Year Pro- rently, only 900 workers are employed in this fessor Patrick McGorry. He has said: area. It is a capped program. There is nothing The system is absolutely on its knees. We have a proposed to continue this. There are some famine-like situation and the mental health sys- small trials in other areas and a little fooling tem is getting the scraps from the table. around at the edges, but a program that has Professor McGorry said that in his view this been considered one of the most successful was because mental health did not have the ever in the mental health area is in limbo, cachet it had five years ago. waiting for the government to work out what to do about the cash situation. Yes, mental health is not a ‘sexy’ area. It is not an area that is found attractive for The other program, the Better Access ini- funding. There are very few cute kiddies and tiative of the Howard government, allowed dogs to have your photo taken with in the for mental health treatment plans and pro- mental health area. Nevertheless, it is an ex- grams to be developed and funded through traordinarily important area, a view that was the MBS. It is quite true that there was $500 apparently shared by Minister Roxon and the million in the Better Access program under Prime Minister before the last election. At the last government and it has now gone up the national mental health conference just to $1.1 billion. This is because the govern- before the 2007 federal election, Minister ment have not worked out how to cap it. It is Roxon told the conference delegates that an entitlement program under the MBS, and Kevin Rudd had put mental health: it is interesting to note that since the program … high on his personal agenda of issues. started in 2006 there have been more than 1.9 million GP mental health consultations Well, we have seen what happens to the great through to the end of March 2010. The num- moral challenge of our times when it is left ber of plans that were in place as at the end in the hands of Prime Minister Rudd. It is of March is 4,583,979. This suggests that even more disappointing to see what has there is a very strong need for this program. happened to mental health and mental health But, rather than work out how to assist this funding left in the hands of Prime Minister program, how to support it and how to de- Kevin Rudd. velop it, the government are working out I would like to briefly talk about two of how to move funds and move entitlements the programs that were started by the How- out of this uncapped funding area into areas ard government and have good support where they can be as stingy and parsimoni- within the mental health sector but are in the ous as they like with their funds. I said in process of being emasculated by this gov- Senate estimates that the fact that the funding ernment. The first of those is the Personal has doubled into the Better Access program Helpers and Mentors Program, which was a has simply been because of the popularity of five-year program designed, in the end, to the program. All this government have done provide the equivalent of 900 full-time is met costs. They have not put new money workers to assist people with mental illness in or expanded the services. The response I with the day-to-day tasks that can become got from a department of health public ser-

CHAMBER 4108 SENATE Wednesday, 23 June 2010 vant was: ‘The services available under the Brown I have co-sponsored two private sena- program are the same as when the program tors’ bills that relate to food labelling. This is commenced.’ Great! The services are still an issue that goes beyond politics and be- available, but all this government can do is yond ideology in dealing with food labelling. try to work out ways to stop them being Our current food labelling laws are a dis- available. grace. They fail consumers; they fail food I would also like to point out that the na- producers. The only people our current laws tional Mental Health Council of Australia seem to help are food manufacturers who made their assessment of the budget and the want to pass off foreign foods as Australian spending on mental health very early. They foods. That is not acceptable. said: Under the current regime, the term ‘made The Rudd Government today claimed that this is in Australia’ is inherently deceptive. It means a “good budget for mental health”. The Govern- merely that 50 per cent of a product has been ment is wrong. There is no significant increase in ‘substantially transformed’ in Australia. So, funding for mental health. under current laws, orange juice which is How many experts, people who have dedi- made entirely of Brazilian concentrate but cated their lives to working in this area, do has had Australian water added to it and been this government need to tell them that they packaged here can be called ‘Australian have got it wrong before they can do a little made’. I do not know about you, Mr Acting bit better than wish Professor Mendoza ‘all Deputy President, but I do not eat the waxy the best’? The first-ever national mental cardboard container of orange juice which is health summit will be held at the University labelled ‘made in Australia’ when in fact it is of the Sunshine Coast tomorrow and on Fri- something that is far from it. As the River- day. The guest speakers will include Profes- land fruit growers in my home state of South sor McGorry, Professor Peter Bycroft and of Australia know from bitter experience, when course Professor Mendoza. The government foreign foods are passed off as Aussie foods, will not be there, I am sure, but the govern- as they are in that orange juice example, ment must listen. Aussie farmers lose their jobs. Food Labelling I noted that during the public debate on Water the truth in labelling bill some of the most vocal opposition came from the Australian Gambling Food and Grocery Council. This is a group Senator XENOPHON (South Australia) that represents so-called Australian compa- (1.15 pm)—As an Independent senator, mat- nies such as the Philip Morris-owned Kraft, ters of public interest speeches are a rare Colgate-Palmolive, Nestle and Coca-Cola. treat indeed. For me they happen only twice These companies are as dinky-di as baseball a year, and so I intend to speak on not one, and hot dogs, and yet these are the compa- not two but three issues of public interest, nies that are fighting change. Their spokes- indeed public importance, within my allo- person, Kate Carnell—I note she is a former cated 15 minutes—on food labelling laws, on Chief Minister of the ACT—puts up exam- water and on poker machines. ples like Bickford’s cordial, arguing that they The first is an issue of national importance could not call their product ‘Australian and relates to the erosion of Australia’s food made’ under the proposed private senators’ security. As many of you know, along with bill because they have to buy vanilla from Senator Barnaby Joyce and Senator Bob overseas. Vanilla could easily be grown in

CHAMBER Wednesday, 23 June 2010 SENATE 4109

Queensland, for example, but currently it is having all sorts of consequences for our not, because there is not a sufficient market planet. Palm oil is currently found in around for it. I will tell you why: because right now 40 per cent of the foods on our supermarket you can pass off foreign vanilla as Austra- shelves, and the cultivation of palm oil is lian, so we do not need to grow our own. having a devastating effect on many regions That said, I acknowledge that there may around the world. Eighty-five per cent of the be some products which may require the world’s palm oil comes from Indonesia and smallest of ingredients from overseas. I un- Malaysia, and palm oil production is the No. derstand some cheeses, for example, require 1 cause of deforestation in Indonesia, for an enzyme which is currently available only example. In South-East Asia alone, the overseas. The private senators’ bill I intro- equivalent of 300 soccer fields of forest is duced, with both Senator Barnaby Joyce and cleared every day because of palm oil pro- Senator Bob Brown, in its current form says duction, and palm oil production costs the a product has to be 100 per cent Australian lives of around 50 orangutans each week. At made to be called ‘made in Australia’. Per- this rate, orangutans will be extinct by 2013. haps it could be 99 per cent or 95 per cent. I believe Australian consumers would Let us have that debate—but it should not be make the right choice if they were given a 50 per cent. choice, but right now you cannot avoid palm There are other labelling issues that affect oil because, thanks to our weak labelling Australia producers and consumers. With laws, you usually do not know you are buy- olive oil, for example, there are no restric- ing it or eating it—and, being saturated fat, tions on what exactly constitutes ‘extra vir- palm oil is not good for our health either. gin’ olive oil. This means imported blends This needs to change, and I call on the Sen- can be sold as ‘extra virgin’ when they are ate to support the two private senators’ bills blends of all sorts of things. This puts genu- relating to food labelling. I note that Senator ine Australian producers at a significant dis- Boswell, the father of the Senate, is in the advantage. There is a similar issue with chamber right now. I think Senator Boswell honey. Imported honeys are currently being would acknowledge that it is a rare thing blended with Australian honey and then sold indeed to have both Senator Joyce and Sena- as Australian produce overseas and in our tor Bob Brown co-sponsoring a bill. I think it marketplace. That is wrong. Surely it is mis- shows that this is something that goes well leading, and yet under current laws it is al- beyond ideology. It is not about party poli- lowed. I acknowledge there is currently a tics; it is about a common-sense approach, government review into food labelling being and a fair approach, to food labelling for our conducted by the former federal health min- consumers and for our farmers. ister, Dr Neal Blewett, and I look forward to The second topic I wish to address relates its findings. That is at least a step forward. to water. In my home state of South Australia But we do not need a review to know con- there is no bigger issue than the issue of wa- sumers are confused. They need and deserve ter and, more specifically, the future of the honest labelling and so do our farmers. Murray-Darling Basin. Just a few days ago, The second food labelling bill relates to Deputy Premier Kevin Foley revealed just the need for palm oil to be clearly labelled on how dysfunctional the federal government’s foods as palm oil. Currently palm oil can be much-touted intergovernmental agreement legally labelled as vegetable oil, and this is on the Murray-Darling Basin is. You will remember, Mr Acting Deputy President, that

CHAMBER 4110 SENATE Wednesday, 23 June 2010 this is the scheme that was meant to sort out only thing that will save the rivers and will the squabbling of water in the Murray- save South Australia is a full and immediate Darling Basin once and for all. I think the national takeover of the Murray-Darling Ba- Prime Minister described it as a historic sin so that, for the first time in this nation’s agreement that would lead to a fair national history, the Murray-Darling can be run in the plan for the Murray-Darling Basin. Certainly national interest. The federal government has the South Australian Premier, the Hon. Mike trusted the states with the chance to reach Rann, said very much the same thing. That agreement and, sadly, the states have proven was on 3 July 2008 and, despite what the they cannot be trusted. We need a national South Australian Premier said about this be- takeover and delays are destructive. ing such a historic agreement, we now find Finally, I want to finish up by talking that the South Australian government has about the release today of the Productivity had to take the Victorian government to court Commission’s final report into gambling. over the whole issue of caps and water allo- Firstly, I should point out that the govern- cation. That agreement took place almost ment’s response has been nothing short of two years ago. abysmal. It has been pathetic. The govern- But just a few days ago we had the Dep- ment have had this report for almost four uty Premier, in his capacity as Acting Pre- months and what is their plan? Their plan is mier, saying that if any agreement did not to stage yet another meaningless talkfest suit South Australia they would ignore it. with the states, no less. How can you trust The agreement relates to the Murray-Darling the states on gambling when state govern- Basin being looked at by the Murray-Darling ments rake in over $4 billion a year in state Basin Authority in terms of sustainable di- taxes from poker machines alone? It is not as version limits. The Hon. Mr Foley said, ‘We though the states want to do anything about will not automatically agree to anything that problem gambling, because they are so hope- is in the plan that we think is unfair and lessly compromised by their reliance on damaging to our state’s interest.’ In other gambling revenue. And when you consider words, this agreement is no agreement at all. that 50 per cent of gambling taxes come off I can understand why Mr Foley, as Acting the backs of problem gamblers they are Premier, said that but it contradicts what the completely and hopelessly compromised on Premier has previously said—that this was a this. historic agreement. The federal government stated today that It is easy to make the Murray-Darling Ba- they support the precommitment of smart sin issue seem dauntingly complex. It is easy card technologies. Can I suggest that pre- to get bogged down in claims and counter- commitment is the most far-off recommen- claims and a detritus of bureaucratic negotia- dation put up by the Productivity Commis- tions whereby we fail to see the more obvi- sion because the fact is that, with precom- ous truth and the more obvious solution. For mitment, it will take time and so much nego- more than a century individual states have tiation with the states. It can be incredibly put their self-interest and their parochial in- complex. It could be effective but it is not a terests ahead of the national interest; I am solution that we can deal with here and now. willing to say that, given the chance, they If the government were serious they would will continue along this ruinous path for an- start with a recommendation to cap the other century. For one river system we need maximum bet at $1, although I want to one set of rules. And that is why I believe the quickly add that while I welcome the Pro-

CHAMBER Wednesday, 23 June 2010 SENATE 4111 ductivity Commission’s recommendation to nificant inroad overnight into the rates of cap maximum bets at $1 a spin I would argue problem gambling. that that is not enough to protect problem I entered politics because of this issue. gamblers. The fact is that, even with $1 bets, When I ran for state parliament all those because of the volatility of the machines, a years ago in South Australia, politicians and player will still be able to lose up to $1,200 the public were not really aware of the dam- an hour in New South Wales, Victoria and age that is done by these dangerous ma- Queensland and around $1,000 an hour in chines—this is a dangerous product—but my home state of South Australia. That is none of us has that excuse anymore. The completely unacceptable. We need to cap the evidence is there and it is clear. According to losses as well as the bets. the Productivity Commission, there are up- In its draft report, the Productivity Com- wards of 510,000 Australians with a gam- mission suggested aiming for an hourly loss bling problem in this country, and we know rate of around $120. This could be achieved from previous Productivity Commission simply by reprogramming the machines to work that each of those affects the lives of adjust volatility. The industry claims that seven others, on average. The government they return something in the order of 90c in must move immediately to protect the hun- the dollar to players, but this is incredibly dreds of thousands of Australians, and their misleading. The fact is that, in many cases, families, who are suffering now because of that rate of return is over the life of the ma- poker machine addiction. chine—over millions of spins and over mil- Parkinson’s Disease lions of dollars poured into the machine. It is Go Red for Women estimated that to achieve anything approach- ing that level of return you would need to Senator CAROL BROWN (Tasmania) play a machine nonstop for almost a year. So (1.30 pm)—I rise today in this matters of if we are serious about protecting problem public interest debate to inform the chamber gamblers, we need to reprogram the ma- of two recent events. The first that I will chines to reduce the volatility. There should speak about concerns Parkinson’s Disease. be a 90c in the dollar return to every player, As Convenor of Parliamentary Friends of even if they gamble as little as $20 or $50. Parkinson’s I had the pleasure, along with the Deputy Convenor, the member for Gil- The federal government need to take over more, Mrs Joanna Gash, of conducting ear- the regulation of poker machine gambling lier this year the Living with Young-Onset and they can do it. It is clear that they have Parkinson’s Morning Tea, in conjunction the constitutional power to do so. When it with Parkinson’s Australia. I would like to comes to regulating poker machine gambling place on record our thanks to all of the par- the Commonwealth have corporations liamentarians who supported the morning tea power, taxations power, and telecommunica- and especially to the Parliamentary Secretary tions and banking powers to intervene and for Health, the Hon. Mark Butler, who at- take over from the states, because the states tended in an official capacity on behalf of the have failed. The government need to make Rudd Labor government. these first two simple changes: cap the bets to $1 and cut the volatility to guarantee a 90c The purpose of the morning tea was for in the $1 return to every player. They need to three brave young Parkinson’s sufferers to cap the bets and cap the rate of loss. And if share their stories and experiences with par- they do that they would actually make a sig- liamentarians and other invited guests to help

CHAMBER 4112 SENATE Wednesday, 23 June 2010 raise awareness of young-onset Parkinson’s young ambassadors: Nerissa Mapes, young disease. It was also an opportunity for these ambassador for Parkinson’s Australia; young-onset Parkinson’s disease ambassa- Richelle Fowler, young ambassador for Park- dors to present the federal government with a inson’s South Australia; and Paula Argy, report about the issues and the impacts of young ambassador for Parkinson’s New living with young-onset Parkinson’s disease, South Wales. I would like to inform the but I will touch further on this report later in chamber of the stories of these three brave my contribution. young ambassadors. Firstly I would like to It is a common misconception in society talk about Nerissa. Nerissa was diagnosed that Parkinson’s disease affects only older with Parkinson’s disease at age 28, in Sep- people. However, increasingly, younger Aus- tember 2006, after suffering from declining tralians are being diagnosed with Parkinson’s motor skills and slowness of movement. disease. In fact, Access Economics tells us Parkinson’s disease means that Nerissa has that approximately 18 per cent of people liv- difficulty with everyday tasks such as dress- ing with Parkinson’s disease are of working ing and using a knife and fork. Since her di- age, which is about 10,000 people Australia- agnosis, Nerrisa has actively been fundrais- wide. It can also be said that one in 40 peo- ing for Parkinson’s disease, through her ple with Parkinson’s disease will be aged foundation Perspectives on Parkinson’s, or under 40 at diagnosis. People diagnosed with POP. To date, POP has raised more than young-onset Parkinson’s disease suffer from $60,000. Nerissa has also taken an active different degrees of the disease’s debilitating role in the media, including appearances on physical and emotional effects. Access Eco- The 7.30 Report, 9am with David and Kim, nomics also identifies that about one-quarter The Morning Show, and numerous radio pro- to one-third of those people diagnosed with grams. Her story has also appeared in New young-onset Parkinson’s disease will have Idea and Woman’s Day to raise the profile of moderate to high needs now and the remain- young sufferers of Parkinson’s disease. der will develop high needs over time, Secondly we have Richelle’s story is one probably at a younger age. of a very extreme case. At the age of just 17, As I mentioned earlier, young-onset Park- she developed a tremor whilst at school and inson’s disease is often overlooked. The she was diagnosed with Parkinson’s disease. community often stereotype a Parkinson’s Richelle lives in South Australia with her sufferer as someone who is old, but statistics husband, and she remains positive in her show this is not the case. So, as part of the fight against Parkinson’s disease, vowing not Young-Onset Parkinson’s Disease Morning to let Parkinson’s disease beat her. She is Tea, Parkinson’s Australia brought three active in her role as young ambassador of young Australians to Canberra to speak Parkinson’s South Australia. about what it is like to live with young-onset Finally I want to talk about Paula. Paula Parkinson’s disease. The morning tea was an first noticed symptoms at the age of 23; excellent forum for the Parkinson’s young however, she was not diagnosed until she ambassadors to share their experiences and was 27 years old. Paula is now a full-time tell the gathered parliamentarians and guests mother of two young children whilst also of what it is like to suffer from the disease. volunteering at the offices of Parkinson’s I would like to take this opportunity to put New South Wales. Parkinson’s New South on record my thanks to the three Parkinson’s Wales nominated Paula to be their ambassa- dor for their major fundraising activity for

CHAMBER Wednesday, 23 June 2010 SENATE 4113 the year, Australia’s Unity Walk for Parkin- years. I am happy to report that the morning son’s. As ambassador for the Unity Walk for tea with the young-onset Parkinson’s suffer- Parkinson’s, Paula was interviewed for ers was very successful. We had an excellent newspapers, radio programs and television to turnout for the event, with many parliamen- tell her story and heighten the awareness of tarians and community representatives at- young-onset Parkinson’s disease. Paula and tending to hear the touching stories of these her children have been very active in fund- three young women who suffer from Parkin- raising for Parkinson’s New South Wales, son’s disease. The three women featured in a through selling raffle tickets and through number of media stories, presenting them sponsorships, raising over $7,200. Every day, with another platform to raise awareness of Paula and her children are faced with the young-onset Parkinson’s disease. struggle of Parkinson’s disease. It is tough, The young-onset Parkinson’s ambassadors but they work together, confront Parkinson’s also used the occasion to present to the fed- disease head-on and live life to the full. eral government a report conducted on be- I want to again acknowledge the bravery half of Parkinson’s Australia by Dr Chris of these three young women who took the Fyffe and Jeffrey McCubbery entitled Living time and had the courage to speak of their with young onset Parkinson’s disease: the experiences of living with young-onset Park- issues and impact of young onset Parkinson’s inson’s disease, to share their lives and to put disease in Australia. That report states: themselves out into the public arena. They For the first time in Australia, people with young are all committed and work hard to raise onset Parkinson’s disease and their family mem- awareness of young-onset Parkinson’s dis- bers were asked to identify the issues and impacts ease, which is often overlooked when the arising from living with this condition and to community think of Parkinson’s disease. The make comment about the availability and appro- presence of these three fantastic young priateness of current services and supports. women at the morning tea was organised by The report also identifies, similar to the sto- Parkinson’s Australia CEO, Mr Norman ries told by Nerissa, Richelle and Paula, the Marshall and the Parliamentary Friends of impacts of living with young-onset Parkin- Parkinson’s. I have had a productive associa- son’s disease. It highlights major disruptions tion with Norman, through my role as Con- to the young-onset sufferer’s personal, work venor of Parliamentary Friends of Parkin- and family life. These effects are far- son’s, and I would again like to place on the reaching—from debilitating physical effects record today my thanks and appreciation for to emotional cognitive effects. The report all the hard work and support Norman pro- recommended the establishment of a national vides to raise the profile of Parkinson’s suf- young-onset Parkinson’s centre to provide ferers. Norman is a tireless advocate for suf- peer support, service development and re- ferers of Parkinson’s disease and works pas- search about supporting young-onset suffer- sionately to raise the profile of Parkinson’s ers’ lifestyles, as well as coordination with disease. Parkinson’s associations, because they are Norman and I, along with the Deputy well-placed to foster network development Convenor of the Parliamentary Friends of and partake in information exchange so that Parkinson’s, the member for Gilmore, Mrs specific responses to issues can be devel- Joanna Gash, who was previously the conve- oped. I would finally like to place on record nor, have held a number of Parkinson’s my thanks to the Hon. Mark Butler, the Par- events around Parliament House over the liamentary Secretary for Health, who was

CHAMBER 4114 SENATE Wednesday, 23 June 2010 able to be with us to hear the stories from the risk factors such as poor diet and lack of ex- young-onset Parkinson’s ambassadors and ercise, many failed to identify clinical risks receive the report on behalf of the Rudd La- such as high blood pressure and diabetes. bor government. And nearly one in five women thought it was I would also like to take this opportunity difficult to find accurate and easy to under- in my contribution today to highlight another stand information about heart disease and important community issue—that is, Go Red women. This concerning statistic goes to the for Women, the Heart Foundation’s cam- heart of the Go Red for Women campaign. In paign to unite women in the fight against June 2010 the Heart Foundation is aiming to heart disease. The Go Red for Women cam- increase awareness of the risk of heart dis- paign is helping to raise awareness of their ease to women and provide information risk and promote healthier choices. It is a about how Australian women can improve common misconception that breast cancer is their heart health. the biggest killer of Australian women. In At the last parliamentary sitting, I was fact, heart disease kills four times as many able to hear firsthand about the Go Red For women as breast cancer does. This is over Women campaign when I had the opportu- 11,000 women per year, and is nearly as nity to attend the parliamentary event. It was many men who die from heart disease. In a very informative and well-attended event fact, heart disease is responsible for almost with politicians gathering to lend their sup- 16 per cent of all deaths in Australian port to the Go Red for Women campaign. At women. the Go Red for Women campaign event in There are a number of reasons heart dis- Canberra, a landmark report was also ease accounts for such a high rate of deaths launched by the Minister for Health, the in Australian women. Firstly, the percentage Hon. Nicola Roxon, and the Heart Founda- of Australian women who suffer from heart tion entitled Women and heart disease. The disease risk factors is quite high. The ABS report focuses on the impact of heart disease tells us that 16 per cent of women aged 18 on Australian women and presents data on a years and over are daily smokers, 15 per cent number of issues, including prevalence, of women aged 25 years and over have high deaths, hospitalisations, treatments, risk fac- blood pressure, 10 per cent of women aged tors and health expenditure. 35 years and over have high blood choles- The Go Red for Women campaign has terol, 55 per cent of women aged 18 years also announced that Jane Stephens will be and over are overweight—that is, they have a the Tasmanian Go Red for Women ambassa- body mass index, BMI, of 25 or more—and dor. Jane has been surrounded by heart dis- 24 per cent of women aged 18 years and over ease all her life. I congratulate Jane on her are obese, with a BMI of 30 or more. appointment and look forward to her work in Secondly, female attitudes and beliefs my home state and raising awareness of the need to be targeted to better educate women dangers of heart disease. on the dangers of heart disease. The Heart The Go Red for Women event was able to Foundation HeartWatch consumer survey open my eyes to just how quickly without identified some concerning revelations: 39 warning heart disease can strike. I was able per cent of women aged 45 to 54 believe that to learn of the story of Juleen Cavanaugh, breast cancer is the leading cause of death in who, although she had a family history of women. Whilst women identified lifestyle vascular disease, heart attacks and strokes

CHAMBER Wednesday, 23 June 2010 SENATE 4115 had kept her cholesterol on the low side. In www.heartfoundation.org.au and get in- November last year, Juleen saw her GP for a volved. routine check-up, the day before her heart Australian Council of Trade Unions attack. Everything was fine and Juleen had Senator BOSWELL (Queensland) (1.45 no idea anything was wrong. At dinner that pm)—I rise to speak on a threat to the union evening, Juleen experienced severe discom- movement’s ability to look after the jobs of fort in her chest as well as pains down her its members. Once that threat was commu- arms. Within a few short hours, Juleen was nism; today it comes from an extreme greens in surgery having a stent inserted. Juleen was agenda. Union leaders are joining forces with lucky to have people around her who recog- extreme greens policy. We saw it on the ETS nised the symptoms and acted quickly. She and now we are seeing it on the mining tax. also had an expert team of cardiologists and Union leaders, perhaps with an eye to Labor nurses to perform her surgery and assist in preselections in the future, are putting ex- her rehabilitation. Juleen is now reducing her treme greens policy first and their members’ stress levels, losing weight and getting a lot jobs last. For example, union members’ dues more exercise. She said, ‘Surviving this are funding extreme policy reports that event has given me a second chance.’ This would undermine members’ jobs. The ACTU story highlighted how quickly and unexpect- and the Australian Conservation Foundation, edly a heart attack can occur. I hope that the ACF, produced a report in May that calls for Go Red for Women campaign will play a a 50 per cent cut in emissions by 2030 at a role in educating women about heart disease cost to the economy of nearly half a trillion so that stories like Juleen’s can have a posi- dollars in extra investment. tive outcome. Senator Sherry, you would be alarmed, as The Go Red For Women campaign was deputy person in charge of the purse strings, not solely restricted to Canberra; events were that the ACTU and the ACF have put out a held across the country. In Hobart, my col- paper calling for half a trillion dollars in ex- league the federal member for Franklin, Ms penditure to reduce emissions by 50 per cent. Julie Collins MP, had the opportunity to Do union members know that their hard- speak at the Go Red for Women campaign earned money is going towards this extreme breakfast. Ms Collins outlined to the break- greens agenda? How much union money fast a number of the Rudd Labor govern- went towards paying for this report? Why ment’s key health initiatives, including our aren’t union leaders standing up for their focus on preventative health measures by members instead of selling them out for increasing the cigarette tax and the introduc- greens’ fantasies? Earlier this year I listened tion of plain packaging on cigarette pack- to Senator Milne debating the renewable en- ets—both designed to encourage people to ergy amendment bill. She said, ‘We should quit smoking. be aiming to have 100 per cent renewable I encourage all women to take the time to energy as fast as we can.’ That is a totally educate themselves about the risk factors irresponsible call. If implemented, it would associated with heart disease, lead a healthy send household and business power bills and active lifestyle, get regular checks from through the roof, whether covered with solar their local GP and, importantly, get involved panels or not. in the Go Red for Women campaign. Check Complementary policies for greenhouse out their website. Go to gas emission abatement and their national

CHAMBER 4116 SENATE Wednesday, 23 June 2010 and regional employment consequences is a The ACTU-ACF report concludes that: report for the Australian Conservation Foun- … the ratio of household debt to gross disposable dation and the Australian Council of Trade income will stabilise at around 200 per cent—a Unions prepared by the National Institute of very high ratio by historic standards. Economic and Industry Research. The ACTU The union leadership of Australia have seri- and ACF report recommends wonderful ously promoted such a state of affairs. Why proven policies such as incentives for ceiling have they not been held accountable and insulation. We know how that ended up—in asked to defend such an unsustainable posi- tears. In order to pay the half trillion invest- tion? The ACTU report says that: ment cost, the report says that: An important potential means of reducing emis- Investment can only be resourced from savings, sions would be to switch production from the which can only be increased by consuming less. current mix of goods and services towards educa- That means: tion and health services, both of which are low- emission. … immediately-pleasing expenditures must be foregone: in the business case, profit distribu- Effectively they are saying, ‘Out with min- tions; in the government case, current services for ing, out with manufacturing.’ Union leaders the people; in the household case, current spend- have sold out their workers in those indus- ing on consumption goods and services. tries. Perhaps that is why they have fallen for I am quoting from the report that, Senator the 40 per cent mining supertax, because, for Sherry, your union fees would have helped them, mining was on the way out anyway. pay for. Then they want to increase public spend- In the report, the ACTU advocates that: ing on top of all that. The report says: … an incomes policy is agreed between the major To maintain the targeted GDP growth rate, public stakeholder groups in the Australian economy via sector spending will have to increase. That is, the tax/wage, tax/superannuation or wage pause public sector will have to go into sustained defi- agreements to limit the inflationary consequences cit— of the aggressive CO2 reduction strategy … I am quoting from the report, Senator Sherry. Do union members know that the ACTU I know it is embarrassing, and I know you wants to freeze their wages to fund emissions would like to leave. I know this is tremen- reduction? Have they held meetings with dously embarrassing to you. their members to discuss this? How did the The ACTING DEPUTY PRESIDENT plan go down? I bet no-one on the factory (Senator Marshall)—Senator Boswell, I floor or in the mills or the mines knows any- would like you to address your remarks thing about this deal on wage freezes to fund through the chair, if you would be so kind. emissions reductions. Union leaders are Senator BOSWELL—I am quoting the treating their worker-members like mush- report. It says: rooms. I bet there were no items on the shop stewards’ agenda to discuss with workers … the public sector will have to go into sustained which government services should be cut or deficit to offset the negative effects on the econ- omy from a rise in the household savings ratio. how every member will be forced to cut down their consumption of goods and ser- This report is highly critical of Australia’s vices. No, the shop stewards would not even economic performance, saying: know themselves. The sell-out of their mem- If it does not come to an end from household debt bers’ jobs has been done at the highest level saturation, the Australian boom from 1993 to date by union leaders.

CHAMBER Wednesday, 23 June 2010 SENATE 4117 could easily end in a crisis in financing the bal- Union leaders care more for extreme ance of payments deficit. green policy than for the jobs of tens of thou- It seems that the ACTU and Senator Barnaby sands or hundreds of thousands of their Joyce have something in common. He is al- members put at risk by Rudd’s mining super- ways pointing out the debt. The report goes tax. The CFMEU says the superprofits tax is on: a modest one and boasts that it has the sup- This would rebound on the household sector by port of Ross Garnaut. The tax is as far from raising prices (through increased costs of im- modest as a scene from Scores nightclub, ported consumers’ goods due to devaluation) and and Garnaut’s report canvassed replacing by raising interest rates as well. The resulting fall beef herds with kangaroo mobs to reduce in household incomes would reduce demand and carbon emissions. Blue-collar workers will generate unemployment. not have much in common with that kind of Senator Arbib is here—and I hope he lis- thinking. tens to this because he has some influence in The only ones who win out of a superprof- the union movement. Here we have the in- its tax are the extreme Greens because emis- dustrial arm of the Rudd government saying sions will certainly go down as mining stops. that Australia faces rising prices, rising inter- In Queensland alone over $50 billion of min- est rates, lower incomes and higher unem- ing projects have been put on hold. Union ployment—hardly a ringing endorsement of leaders have sold out their members’ jobs in Rudd’s economic management. Yet no-one these projects. It is astonishing to see the has held the ACTU to account. unions campaign so hard for a supertax that The ACTING DEPUTY PRESIDENT— will reduce their membership by putting so Senator Boswell, I think you are aware that many out of work. This comes after the un- you are supposed to refer to the Prime Minis- ions cooperated fully with the Prime Minis- ter by his correct title. ter’s plan to introduce an ETS that would Senator BOSWELL—The Prime Minis- have increased mining and industry costs ter. I want Senator Sherry and Senator Arbib around the country leading to thousands of to listen to this statement from the ACTU- job losses. ACF report, which said: The ETS and the mining supertax are Whether Australia continues to avoid the need for anticompetitive. Union members understand financial reconstruction is the elephant in the this. The AWU’s Paul Howes must be in room. cloud-cuckoo-land to claim as he did re- It seems from this that the unions see the cently when he said: economy and its problems quite differently We showed, during the debate over climate to the way the Rudd government sees them. change, that we were not prepared to allow good The unions in fact are highly critical of La- Australian companies to go under at the altar of bor’s economic management. Such a split green utopianism. between political partners would arouse But that is exactly what union leaders did on enormous interest and coverage if it occurred the ETS, and now they are helping those between coalition partners, the Nationals and same companies go under with a superprofits the Liberals. But because it is the ACTU and tax. The ACTU joined with the ACF to plan Labor, their differences are not talked about. the decarbonisation of Australia’s economy. I would like to know why that is. They want to reduce emissions by 50 per cent by 2030 at the cost of an extra half a

CHAMBER 4118 SENATE Wednesday, 23 June 2010 trillion dollars investment. That recipe would cape. This has local Indigenous people very ruin Australian jobs and industry, and bank- upset because they will be restricted from rupt us worse than Greece. doing anything much with their land as far as When history looks back at the actions of making a living goes. Labor forced this on union leaders under the short-lived Rudd them because Greens preferences are more government, it will show enormous errors of valuable to them these days than the black judgment that led to a crisis of confidence in vote. unions from their abused and neglected I heard many a Labor senator get up and members. Not since communism threatened protest that it is not true: that Indigenous the unions has there been such an unholy people can still get developments through in alliance between union leaders and extrem- Wild Rivers areas. I ask them to look at the ism. Throw in a secretary of the Treasury latest evidence submitted to the Senate who suffers from a tax addiction and you committee just before their report was tabled. have a recipe for economic mismanagement That evidence is proof that Labor senators of the highest order. Workers are starting to are entirely mistaken. The Queensland gov- realise this, especially as their electricity bills ernment has made it clear that the Indigenous go up and up. Union leaders have not been community cannot have so much as a vege- straight with them. They have not told them table garden because it would be in a high that the side effect of decarbonising the preservation area of a wild river where no economy is a huge cost that has to be paid clearing is allowed. That is a direct result of for by the workers and their families in eve- the alliance between Labor and the Greens. ryday living costs. If the government has its Indigenous communities cannot even grow way on the ETS and the supermining tax, the their own greens. cost will be jobs, jobs, jobs. QUESTIONS WITHOUT NOTICE It is all right for union leaders who make Broadband it to the Senate or the other house. They can Senator BRANDIS (2.00 pm)—My ques- lounge round in their flash suits and remi- tion is to the Minister for Broadband, Com- nisce about the days singing Solidarity For- munications and the Digital Economy, Sena- ever as though it really mattered. They come tor Conroy. I refer to the non-binding agree- into this place and try to defend everything ment for Telstra to participate in the National but put the jobs of the people who put them Broadband Network. How can the govern- here on the line. No wonder you have got ment justify paying $9 billion of taxpayers’ mining bosses at rallies while union chiefs money essentially in exchange for Telstra and green mafia dons loiter in lobbies in shutting down its existing business? What their suits and ties. Unfortunately, these cosy are Australian taxpayers actually getting for deals at the top levels of power have serious their $9 billion? ramifications down the chain where the real people live and try to make a living. Senator CONROY—That is a question that shows that those opposite, as usual, have One small example, but a very serious failed to do basic research, to even read a one, is happening on the Wild Rivers in Cape press release from either Telstra or NBN Co. York. As the Senate knows from its recent or look on the departmental website. It is debate yesterday, the Queensland Labor gov- very clearly spelled out what is being re- ernment has cut a deal with extreme green ceived in the deal between NBN Co. and the groups to lock up entire river basins in the Telstra Corporation, which is who the con-

CHAMBER Wednesday, 23 June 2010 SENATE 4119 tract, the financial heads of agreement, has we are engaged in is described by the Aus- been signed with. It is a $9 billion deal be- tralian in its editorial today, where it says: tween NBN Co. and Telstra, and the $9 bil- THE effective restructure of Telstra after two lion refers to two or three different aspects decades— but the vast bulk of it refers to access to Tel- Senator Brandis—Point of order, Mr stra’s infrastructure—the ability to use exist- President. The minister was asked— ing infrastructure. This will lead to signifi- Senator CONROY—You don’t know cant savings for the country and, more im- what you are talking about. portantly, it will not lead to the debacle that took place under those opposite with the The PRESIDENT—Order! HFC cable, when we had Telstra and Optus Senator Brandis—Are you going to call trucks driving down the same streets string- him to order, Mr President? ing two cables up in front of everybody’s The PRESIDENT—Senator Conroy! houses, digging everybody’s pavement up Senator Brandis—Mr President, the min- twice. That is what actually happened. That ister was asked why the taxpayers rather than sort of duplication was a terrible waste of the telecommunications industry are now money for the Australian economy. footing the annual $100 million bill for the The other major aspect of the $9 billion is universal service obligation. It must be obvi- the commitment to transfer all of Telstra’s ous to you that he has not gone anywhere customer base onto the National Broadband near responding to that issue. Network. That is millions and millions of Senator Ludwig—On the point of order, Telstra customers closing down the copper the minister has been directly answering the and moving across onto the fibre network. This is a win-win. (Time expired) question, quite frankly. He has been quite relevant to the point, and what we now have Senator BRANDIS—Mr President, I ask is the opposition simply seeking to raise the a supplementary question. How does the issue again during a point of order, which is minister defend Labor’s decision to spend quite inappropriate. another $100 million a year of taxpayers’ The PRESIDENT—The clock should money on the universal service obligation—a have been held during the points of order. It cost that until now has always been met by has not been. the telecommunications industry, not by the taxpayer? Senator CONROY—I’m a long way from finished, Mr President. Senator Lundy interjecting— The PRESIDENT—Order, Senator Con- Senator CONROY—Yes, they do think roy. I believe it was at about the 34-second they are so clever, Senator Lundy. You are mark. On the point of order, I believe the right. Tragically, the way networks work is minister is answering the question. He might they are connected together. Pieces of copper not be answering it in the way that is desired, connect to pieces of copper; pieces of fibre but I cannot tell the minister how to answer connect to pieces of fibre. When you restruc- the question. I draw the minister’s attention ture the sector, when you pull the copper out to the fact that there will be 34 seconds left of the ground and you close exchanges, what on the clock to answer the question. that means is that the copper network that extends out into the 10 per cent needs to be connected to something. The restructure that

CHAMBER 4120 SENATE Wednesday, 23 June 2010

Senator CONROY—As I was saying, the ing for more information, because of the dis- Australian’s editorial today says the restruc- information— (Time expired) ture is: Afghanistan … a political win for the Rudd government, Senator HUTCHINS (2.07 pm)—My which can now point to the brave new world of question is to the Minister for Defence, competitive telecommunications that lies ahead. Senator Faulkner. Can the Minister outline to I will finish the rest of the quote, but again, the Senate the new leadership arrangements to come back to the embarrassing point that in Oruzgan province? Can he further inform Senator Brandis does not seem to under- the Senate whether he is satisfied that these stand, the $100 million is only part of the arrangements will be in place before the money. We will continue to have the industry Dutch troops start their withdrawal on 1 Au- levy, but because the structure of the sector is gust this year? changing— (Time expired) Senator FAULKNER—I thank Senator Senator BRANDIS—Mr President, I ask Hutchins for his question. The Minister for a further supplementary question. Why has Foreign Affairs and I have just announced the Rudd government decided to spend $16 the new arrangements for the international million of taxpayers’ money advertising the mission in Oruzgan province. The Australian National Broadband Network on television government welcomes the decision by and radio and in the print media across Aus- NATO to establish a new multinational tralia when, according to Labor’s own state- command structure for Oruzgan province to ments, the building of the network will not replace the Netherlands contribution from 1 be completed for at least eight years? Isn’t August this year. These new arrangements this just another political stunt from an all- will see the United States lead a multina- talk, no-action government? tional ‘Combined Team Uruzgan’ under an Senator CONROY—On the question of ISAF flag. This approach will serve our in- all talk and no action, let’s be very clear terests well and will also provide a strategy about this: 6,000 kilometres of backhaul is that will allow us to continue to build on pro- being constructed across Australia right now. gress that we have made in Oruzgan. In Tasmania the first real customers signed We are pleased to announce that Australia up will go live in just two or three weeks— will make a significant contribution to the real customers with a real network that is integrated civilian and military provincial being built in the ground today. For the first reconstruction team. This will include having five mainland release sites, construction an Australian civilian lead the provincial re- starts next month. The embarrassment on the construction team. Our mission in Oruzgan other side is that they do not actually under- remains focused on training the Afghan Na- stand anything about this sector. They do not tional Army 4th Brigade so it is able to as- understand that the first customers will be sume responsibility for security in Oruzgan connected in Tasmania in a few short weeks. province. I am very confident that NATO has Senator Brandis—Then why are you ad- found a solution that supports both Austra- vertising on the mainland? lia’s interests and also the interests of Af- Senator CONROY—Senator Brandis, ghanistan and its people. you are an embarrassment to yourself, all Senator HUTCHINS—Mr President, I right? The advertising campaign has come ask a supplementary question. Can the minis- because all around Australia people are ask- ter advise whether the support we are receiv-

CHAMBER Wednesday, 23 June 2010 SENATE 4121 ing from our International Security Assis- Broadband tance Force partners will be adequate to re- Senator IAN MACDONALD (2.12 place the Dutch capabilities? pm)—My question is to the Minister for Senator FAULKNER—The details of the Broadband, Communications and the Digital United States contribution are of course for Economy, Senator Conroy. Is it true that Tel- the United States to announce, but I am con- stra’s HFC cables in Melbourne, Sydney and fident that the proposed arrangements will Brisbane could be upgraded and built to pro- more than adequately match the role previ- vide a better or equally as good network as ously performed by the Dutch. Australia is the NBN to the majority of Australians at a one of 46 countries contributing to ISAF. fraction of the $40 billion cost of the NBN? With 45 partners and the Afghan National Senator CONROY—In one word, and Security Forces, we are playing our part in a then I will explain why, the answer very coordinated and comprehensive campaign. In simply is no. Let me explain to you the laws Oruzgan, Australia would be working with of physics. HFC is like wireless in a pipe. the United States as well as our ISAF part- The more people who switch on and use ners Slovakia and Singapore and, again, the HFC cable at the same time the slower the Afghan national security forces. Of course, dedicated speeds become. Let us pretend you Australia would welcome any ongoing con- have a 100 meg speed connection. Unfortu- tribution from our Dutch partners in Oruzgan nately, with HFC, the words that must al- province. ways be used because the law requires it are Senator HUTCHINS—Mr President, I ‘up to 100 meg’. Let us be very clear about ask a further supplementary question. Can this. ‘Up to’ means that as soon as two of the minister update the Senate on the time you switch it on your speed starts to slow, if needed for Australia’s training mission of the three of you switch it on your speed starts to Afghan National Army to be completed? slow more and if a whole street switches it Senator FAULKNER—I recently tasked on the speed really starts to slow. With a Defence to provide updated advice on the piece of fibre it is very simple: it is a dedi- time frame for our mission. CDF has advised cated connection which has no interference me that, on the basis of solid progress in our or impact if the person in the next house or training efforts to date, Defence now esti- the next street turns it on. mates that within two to four years we will The other thing about the DOCSIS 3.0 be able to transition the main security re- upgrade of the HFC cable is that it has been sponsibility for the province to the Afghan configured at 100 megs down and two up. National Army. On completion of our train- This cannot match a piece of fibre which can ing mission, I expect that we will adjust our have a significantly greater degree of sym- force levels as the ADF training mission metry when it comes to uploads and transitions into an overwatch role. Our downloads. So the very simple answer, Sena- troops, of course, performed this role in tor Macdonald, is no, it cannot, and Telstra for some 12 months. While this is the best themselves, as has been revealed in the advice I can provide the Senate, timing the agreement, are bringing their broadband cus- transition of security to the Afghan National tomers off the HFC network and across onto Security Forces of course depends on the the fibre network because ultimately they conditions that apply on the ground at the know that they cannot compete with a dedi- time. cated piece of fibre in the same street. That is

CHAMBER 4122 SENATE Wednesday, 23 June 2010 why this deal is a win-win. It is a win for said, a win-win. This is a deal that creates a Telstra shareholders and a win for the wholesale market and a retail market, be- broader Australian community because it cause those opposite cannot get away from will take us into the leading edge of world the fact that they privatised a vertically inte- technology capacity, and that is why this deal grated monopoly— (Time expired) should be supported by those opposite. It Senator IAN MACDONALD—Mr particularly should be supported by those in President, I ask a further supplementary the bottom corner down there in the National question. The minister’s incompetence is Party, because they are turning their backs on clear for all to see, but I ask him now: why is their own voters. They are condemning it that Australia’s fastest growing broadband their— (Time expired) provider said recently, as TPG Telecom’s Senator IAN MACDONALD—Mr executive chairman did, that he is not con- President, I ask a supplementary question. I vinced that demand for NBN services has note that the minister’s advice is contrary to matured and that deeper analysis is required that given to the Senate select committee on before taxpayers’ dollars are thrown into it? that subject, but I ask the minister why it is Does this prove that Mr Rudd— that in the deal—mind you, I emphasise that Senator Bob Brown—Mr President, on a it is a non-binding deal—Telstra is forbidden point of order: I ask if you would look at the to have infrastructure which can compete introductory comments to this question from with the NBN. Is this a back-to-the-1950s, the honourable member and see if they are in government owned monopoly? Is this deal keeping with the standing orders. I believe all about killing competition in the name of that they are not. promoting competition? The PRESIDENT—I will look at the in- Honourable senators interjecting— troductory comments and if necessary I will The PRESIDENT—I remind senators come back to the chamber. that the time for debating the issue is at the Senator IAN MACDONALD— end of question time. Regarding the point of order, I hope that the Senator CONROY—There are so many clock goes back to 10 seconds—where it was incorrect assertions in that question that it is when I was interrupted? hard to know where to start, but let me be The PRESIDENT—Yes, you will be very clear about this. Firstly, there is no con- given the opportunity to complete your ques- flicting evidence with testimony to the Sen- tion. ate select committee, because let me quote to Senator IAN MACDONALD—Thank you the chief technology officer for Telstra, you, Mr President. It is always the case of Hugh Bradlow, who said that fibre to the the Greens coming to aid their allies in the home ‘is the end game’. That is Telstra’s Labor Party. Does this prove that Mr Rudd chief technology officer and he said it many drove negotiations for an early and expen- times. I will take his testimony over your sive deal to try to offset, and even influence, assertions any day of the week, Senator the next bad Newspoll—the political win Macdonald. that Senator Conroy actually spoke about in As for some of the other assertions, they his answer to the first question today, dem- are nonsensical. Some of them are so non- onstrating that clearly this is all about poli- sensical that I do not know where to start tics and not about a decent national broad- with an answer. But this is a deal that is, as I band network?

CHAMBER Wednesday, 23 June 2010 SENATE 4123

Senator CONROY—Can I have two provided by the federal government. I draw minutes to answer that? He had two minutes the minister’s attention to the stark figures of to ask it. I would just like to draw— the provision of a 1.7 per cent indexation rate Honourable senators interjecting— at a time when CPI is 2.9 per cent, the mini- mum wage rise of 4.8 per cent, the rising of The PRESIDENT—Senator Conroy, re- utilities costs—for example, in WA—of up sume your seat. I remind senators that it is to 10 per cent, and the current pay equity disorderly to shout across the chamber and to case before Fair Work Australia. My question interject during question time. is: will the government immediately restore Senator CONROY—Thank you. Can I the 1.75 per cent conditional adjustment again go back to the editorial in today’s Age, payment supplement for residential care, and which states that the deal means an end to a also extend it to community care from 1 July flawed model of combined wholesale and this year? retail operations that stultified our telco mar- Senator LUDWIG—I thank Senator ket for years. And on the point that you made Siewert for her question. I know that Senator about us rushing this at the end, in Novem- Siewert does have a continuing interest in ber, December, January, February, March and this area. Can I also indicate that at the con- April I have been saying that we had to con- clusion of question time I can also table a clude this by the end of June. Well, guess letter to Mr Rod Young, the chief executive what? It is the end of June. officer of the Aged Care Association Austra- Opposition senators interjecting— lia from the minister, Justine Elliot, in re- Senator CONROY—You can check my sponse to that open letter. public statements for the last six months. I The annual indexation of aged-care subsi- have been saying the end of June. I would dies is based on a formula introduced in love to say that I pay that much attention to 1996. The formula reflects minimum wage when the Australian is going to conduct a decisions and movements in prices in the Newspoll—and I have seen some commen- broader economy and, of course, given the tary about the Australian’s view of its own decision of Fair Work Australia not to in- self-importance that the whole world re- crease the minimum wage through 2009, the volves around the Australian Newspoll—but application of this formula would have re- what I said in November, December, Janu- sulted in an increase in subsidies of substan- ary, February and March is that we would be tially less than one per cent. To lessen the finished at the end of June. I really assure impact on aged-care providers the govern- you that I had no idea on which weekend ment adjusted the formula, resulting in in- Newspoll was conducting its polls. (Time dexation of subsidies for 2010 to 2011 of 1.7 expired) per cent. Of course, in accordance with the Aged Care recent decision of Fair Work Australia to Senator SIEWERT (2.21 pm)—My increase the minimum wage—which is the question is to Senator Ludwig, the Minister first since 2008 and which will benefit more representing the Minister for Ageing. My than 1.45 million Australians who rely on question relates to the open letter to the PM awards to set their pay—and in accordance today around aged care, one which concerns with long-standing practice, the most recent the widening gap between the cost of deliv- decision will be factored into future out- ering aged-care services and the funding comes.

CHAMBER 4124 SENATE Wednesday, 23 June 2010

I also welcome the opportunity to look at of consumer-directed care and stronger pro- our record as against the previous govern- tection for older Australians receiving care. ment’s record on that. Under this government The government welcomes, of course the total funding for aged care and community aged-care sector commitment to— (Time care has increased by nearly 30 per cent, or expired) more than $2.4 billion. In 2010-11 total Senator SIEWERT—Mr President I ask funding will increase again to $10.8 billion, a further supplementary question. I will not with nearly $7.4 billion of that for residential waste my third question asking the same aged care. The opposition do carp about their question again; I will take it that the answer role— (Time expired) to that question is no, they will not. Meas- Senator SIEWERT—Mr President, I ask ures that the government have taken to date a supplementary question. I note that the do not address the current crisis in aged care. minister did not answer the question, which Will the government acknowledge that the was: will the Rudd government restore the current system is unsustainable, and what do capped supplement of 1.75 per cent to the they intend to do about it? aged-care sector to acknowledge the crisis Senator LUDWIG—Firstly, what I dealt that is facing the sector and which was out- with, in part, was the question and then sup- lined in the open letter to the Prime Minister plementary No. 1 dealing with Minister El- in most Australian papers around the coun- liot’s response. In addition, I have been add- try? ing what we have committed to, to assist the Senator LUDWIG—I did indicate in my aged-care sector. Any of those questions I answer that— will also consider and take on notice, and see Senator Abetz—No, you bashed up the if the Minister for Ageing can provide any opposition and didn’t answer the question. additional response to what I have already provided. Senator LUDWIG—I do have a letter from the honourable Justine Elliot MP, Min- Can I add that this government is better ister for Ageing, which I intend to table at integrating aged-care services with the rest the conclusion of question time if I am per- of the health system through local hospital mitted by those who are carping on the other networks. And can I say to Senator Siewert side—the opposition, of course. that we are taking aged-care reform very seriously—to build a modern system that The Rudd government is engaged in fun- provides better support and better care to damental reform of the health and hospital older Australians. The reforms that we are and aged-care systems. The government is implementing will build the foundation for a taking a full policy and funding responsibil- modern aged-care system, and these are re- ity for aged care to build a national aged-care forms that have been welcomed by the aged- system. We are supporting that national sys- care sector. (Time expired) tem through—and these are the issues that we are trying to achieve for the aged-care Building the Education Revolution system—better access to services by estab- Program lishing one-stop shops for aged-care infor- Senator MASON (2.27 pm)—My ques- mation assessment, more highly trained tion without notice is to Senator Carr, the aged-care workers, more aged-care places, Minister representing the Minister for Educa- better access to GP and primary health ser- tion. Under the Building the Education vices, greater choice through the introduction Revolution Program how does the govern-

CHAMBER Wednesday, 23 June 2010 SENATE 4125 ment independently assure itself that an indi- massive expansion in educational opportuni- vidual school building project is good value ties for every child in this country—a propo- for money? That is, against what standard or sition that the Liberal opposition have op- benchmark does the Commonwealth gov- posed. They have opposed providing those ernment assess projects in relation to value opportunities to Australian students across for money? the 10,000 schools in this country. Honourable senators interjecting— On top of the extraordinary length of The PRESIDENT—When we have si- measures that this government has taken, the lence we will proceed. The time to debate the BER Implementation Taskforce has been issue is at the end of question time. established to provide additional assurance to the Australian public that the BER program Senator CARR—I thank Senator Mason is being implemented in accordance with the for his question. He would be only too well guidelines that the government itself estab- aware of the steps that are taken by the gov- lished for achieving value for money. This ernment— government is concerned about any allega- Senator Heffernan—You don’t know the tions of any impropriety in the Building the answer. Education Revolution program. Senator CARR—Sorry, what was that? To date, widespread practices of over- The PRESIDENT—Senator Carr, ignore quoting, over-charging or fraudulent behav- interjections and address your comments to iour have not been found. The evidence sim- the chair. ply is not there for the claims that the opposi- Senator CARR—I thought I heard some- tion is making. Nonetheless, it is open to the thing from Senator Williams, who has been taskforce to refer potential breaches of the speaking at length of late on matters to do— law, regulations or guidelines to appropriate authorities for investigation. (Time expired) The PRESIDENT—Senator Carr, just address the question and address your com- Senator MASON—Mr President, I ask a ments to the chair. supplementary question. Last night at a Sen- ate committee hearing, the Commonwealth Honourable senators interjecting— Department of Education, Employment and Senator Williams—Mr President, I rise Workplace Relations gave evidence that, out on a point of order: I was not saying a thing, of more than 10,000 school building pro- and I ask that the minister retract that. jects, the department had never refused to The PRESIDENT—There is no point of approve a project on the grounds that it did order. Senator Carr, you have a minute and not provide good value for money. Can the 50 remaining to answer the question. minister therefore guarantee that each one of Senator CARR—Senator Mason is only the more than 10,000 approved projects is too aware of the lengthy process the gov- providing taxpayers with good value for ernment has undertaken to ensure that there money? is value for money in the implementation of Senator CARR—In fact, there are 23,850 the Building the Education Revolution pro- BER projects that have been approved in gram. The Building the Education Revolu- around 9,000 separate schools in Australia. tion program is the largest single investment As of 30 April, 8,092 projects were under in public education the Commonwealth of construction at 6,121 schools around the Australia has ever seen. It has provided a country. Of course, there are some other pro-

CHAMBER 4126 SENATE Wednesday, 23 June 2010 jects that are yet to commence. I am looking The PRESIDENT—I remind senators forward to the answer to the question, that if they wish to debate these issues, the ‘Which of these projects is the Liberal Party appropriate time to debate them is at the end going to stop?’ Which ones are you going to of question time. The time is given to allow stop? How many of the openings are you motions to take note of answers that are going to turn up to? given and for people to make their appropri- Senator Heffernan—Mr President, on a ate points. I draw the minister’s attention to point of order, this is the greatest rort in Aus- the fact that there are 15 seconds remaining tralia’s political history. to answer the question. The PRESIDENT—Senator Heffernan, Senator CARR—There were three that was not a point of order. Resume your rounds under the P3 element of the BER, seat. during which there were initially hundreds of projects rejected, Senator Mason. These pro- Government senators interjecting— jects might have been rejected because the Opposition senators interjecting— facilities were not eligible. (Time expired) The PRESIDENT—Order! There needs Senator MASON—Mr President, I ask a to be silence on both sides. further supplementary question. Does the Senator CARR—The federal member for minister still have confidence in the govern- Calare, John Cobb, was recently photo- ment’s hand-picked head of the BER Imple- graphed with our colleague Senator Hutchins mentation Taskforce, Mr Orgill, when he at the opening of a school. It is quite clear admitted during last night’s Senate hearing that the opposition is only too happy— that, after seven weeks on the job, he has not Senator Brandis—Mr President, on a even read the full report into the BER by the point of order: the answer is utterly irrelevant Auditor-General, which is crucial to his work to the question that was asked. The question given the conclusive and damning evidence asked whether, in light of the evidence last by the Audit Office that the government has night that there had never been a refusal, the not been able to assure itself and taxpayers— minister would guarantee that every one of (Time expired) the projects provided value for money. Senator CARR—What I can advise the Commenting on photographs being taken of Senate is that the BER Implementation Task- members of parliament in front of buildings force, led by Mr Orgill, is categorising com- is completely irrelevant to that question and plaints it has received and is undertaking an you know it, Mr President. extensive school visits program to investi- Senator Conroy—Mr President, I would gate those complaints. The task force returns like to respond to that point of order except I its first report— do not know what it was. For half a dozen Opposition senators interjecting— times in a row Rumpole over there has stood The PRESIDENT—Senator Carr, resume up and decided to just give a speech, and you your seat. I remind senators that shouting is have Senator Heffernan interjecting while disorderly. pretending to raise points of order. Mr Presi- Senator Ronaldson—And so is this min- dent, I ask you to not only rule out these ister’s answer. points of order but also ask them to actually raise a point of order before they start giving a speech.

CHAMBER Wednesday, 23 June 2010 SENATE 4127

The PRESIDENT—I remind senators The people of Mildura have, in the space of a that shouting is disorderly during question couple of years, moved from having some of time. the worst television reception and the most Senator CARR—I can advise the Senate limited choice of channels in the country to of the facts—not the opinions; the facts. The leading Australia in the move to 16 or more fact is that the task force returns its first re- channels of clear pictures and crisp sound. port in August and it may of course lead to Virtually 100 per cent of the households in further ongoing recommendations to respon- Mildura are digital ready, according to the sible authorities relating to the improvements government’s digital tracker survey. Over or actions that need to be taken. The fact also 2,300 households have been helped to con- is that the opposition has opposed this pro- vert to digital TV under the government’s gram, yet is only too happy to turn up to the household assistance scheme. Broadcasters openings and claim credit for any initiatives have also played their part, installing three that are taken to improve opportunities for new transmitters to serve known black spots Australian children. It is time for the opposi- in Ouyen, Underbool and Robinvale. Local tion to come clean. Which of these programs antenna installer Rohan Gregg has described will they stop? Which schools will they pre- the new Ouyen transmitter as ‘one of the best vent from getting access to the biggest pro- things we’ve had happen since the great Aus- gram the Commonwealth has ever seen in tralian vanilla slice’. terms of improving opportunities for the The government has launched a new satel- children of this country? It is time for the lite service to serve viewers in remote Aus- opposition to come clean. It is time for the tralia and regional black spots. This service opposition to state what its position is. Do is known as viewer access satellite televi- you support children getting these services or sion, or VAST, and it is transmitting in the not? (Time expired) Sunraysia region today. Steve Petschel, man- Digital Television ager of Mildura’s Teletune, has been out in- stalling satellite receivers and told the Sun- Senator MARSHALL (2.39 pm)—My raysia Daily today: question is to the Minister for Broadband, Communications and the Digital Economy, It’s all going according to plan, so we’re quite Senator Conroy. Given that in just one week confident and looking forward to next week. the analog television signal in the Mildura- (Time expired) Sunraysia region will be permanently Senator MARSHALL—Mr President, I switched off, making that region the first in ask a supplementary question. I thank the Australia to switch to digital-only television minister for his answer and I ask: can the under the government’s switch-over timeta- minister tell the Senate more about the satel- ble, can the minister assure the Senate that lite service that is being put in place for peo- the people of Mildura are ready for this his- ple in TV black spots? Are people in the toric event? Mildura-Sunraysia region signing up to re- Senator CONROY—I am delighted to ceive the satellite service? report that Mildura-Sunraysia is absolutely Senator CONROY—The government ready to switch to digital-only television in funded satellite service finally provides one week from today. At 9 am next Wednes- viewers in remote Australia and regional day, 30 June, I will be in Mildura when we black spots with the same number of digital turn off the analog television signal forever. channels as are available in the capital cities.

CHAMBER 4128 SENATE Wednesday, 23 June 2010

It also features a dedicated local news ser- is a historic microeconomic reform. It pre- vice. This is the first time local news has sents a once-in-a-generation opportunity to been available to satellite viewers in regional improve communications services in Austra- and remote Australia. The new satellite ser- lia. The Australian Mobile Telecommunica- vice is on air in the Mildura-Sunraysia region tions Association has estimated a $10 million now and is being warmly received. Patche- bonanza for the Australian economy— (Time wollock resident Terry Torney told the Sun- expired) raysia Daily this month that the service was Budget great value for remote viewers. As he said: Senator RYAN (2.45 pm)—My question It’s a one-off payment for the box and card if is to the Minister representing the Treasurer, you’ve already got the dish. Everyone’s prepared Senator Sherry. I ask whether the govern- to do that because we put up with very substan- dard TV here for a long time. ment is aware of the comments of the Cana- dian Minister for International Trade in the The Labor government is proud to have fixed Financial Times overnight where he stated this problem once and for all for people in that, ‘We think lowering taxes attracts in- regional, rural and remote Australia. (Time vestment; we think higher taxes obviously expired) discourage investment’, and the comments of Senator MARSHALL—Mr President, I the chief executive of the Mining Associa- ask a further supplementary question. Again tion of Canada when he said the Australian I thank the minister for his answer and I ask: tax ‘probably makes Kevin Rudd the mining could the minister remind the Senate why the man of the year in Canada, because he’ll switch to digital television is so important bring a lot of investment our way.’ Why is and what benefits, other than the obvious this government in denial that its great, big improvement in picture quality and channel new tax on mining will be a bonanza for choice, will the switch to digital bring to Australia’s competitors while costing Austra- Australia? lian jobs? Senator CONROY—I thank Senator Senator SHERRY—No, I am not. Marshall for his ongoing interest in the good Senator RYAN—I thank the minister for people of Victoria. The Rudd government is the short answer. My supplementary question committed to building the infrastructure that is: given this tax was announced without any will underpin the development of the digital prior consultation with industry, does the economy. The switch to digital-only televi- government stand by its commitment of Au- sion is a crucial measure to support this ob- gust 2008 to act on the recommendations of jective. Spectrum currently used for broad- the report of the Tax Design Review Panel in casting services is highly valued for deliver- relation to this new tax? ing wireless communications services, in- cluding superfast mobile broadband. It is Senator SHERRY—On the issue of con- able to carry signals over long distances, sultation, it is simply not correct to claim that penetrate buildings and carry large amounts there was no consultation. I am pleased that of data. Once analog television signals have you have raised the issue, because one of the been completely switched off and the spec- common myths being advanced against the trum is subsequently cleared of other users, super profits taxation in the mining industry that spectrum will be released as a digital is that there was no consultation. If you look dividend. And releasing the digital dividend at the work program, the speeches and the papers that were presented publicly by the

CHAMBER Wednesday, 23 June 2010 SENATE 4129 independent tax review—otherwise known the taxation of the mining sector in this as the Henry tax review—you will see that country. there was extensive referencing. Opposition senators interjecting— Opposition senators interjecting— The PRESIDENT—If you want to de- The PRESIDENT—I remind senators bate the issue, I reminded senators earlier— that I need to hear the answer to the ques- and I will do it again—that you can debate tions and I need silence to do so. Senator the issue at the end of question time. Sherry, continue. Senator SHERRY—The government Senator SHERRY—There was extensive stands behind its proposed tax. The increas- referencing to the issue of the taxation, the ing prices that are flowing as a consequence base of taxation and the way in which taxa- of the mining boom and demand in Asia tion should apply to the mining sector. In- come from a resource that is owned by the deed, I understand the Mining Council of Australian people, and they should get their Australia made a submission in respect of the fair share— (Time expired) conceptual and the principle approach of Gambling taxing profits. (Time expired) Senator XENOPHON (2.50 pm)—My Senator RYAN—Mr President, I ask a question is to Senator Sherry, the Assistant further supplementary question. I ask Treasurer. On 11 September 2007 the then whether the minister is aware that recom- opposition leader and now Prime Minister, mendation 1 of that paper says: Kevin Rudd, said: The Government should generally consult on I hate poker machines and I know something tax changes at the initial policy design stage, prior of their impact on families. to any Government announcement. For major policy changes, consultation should include pub- Given the government has taken almost four lic consultation on policy design (eg, via the re- months to table and respond to the Produc- lease of a discussion paper). tivity Commission’s final report into gam- Why does the government not simply admit bling and has only responded to say, in ef- that it has got both the process and the sub- fect, that it will consult with the states and stance of this tax grab wrong and scrap this territories on poker machines, how can the tax? government claim that it is truly committed to reducing problem gambling? Senator SHERRY—As I was saying ear- lier, I do not accept the argument from the Senator SHERRY—Thank you, Senator opposition, where they are locked arm in arm Xenophon. I acknowledge your longstanding with the mining industry, and advancing the interest in this issue—and it is a serious is- myth—and that is what it is: a myth—that sue. The Productivity Commission report, there was no consultation. There was consul- which I released this morning, estimates that tation. I would draw your attention to a there are between 80,000 and 160,000 Aus- speech I gave on Monday evening at a tax tralian adults suffering severe problem gam- forum in Sydney, where I listed four pages of bling. But I do not agree with Senator Xeno- precise consultation with sections of the min- phon’s characterisation of what Senator ing industry in the independent tax review. Macklin, Senator Conroy and I announced There was comprehensive consultation on this morning. I know from working person- the issue of the structure and the design of ally with the Prime Minister on this issue

CHAMBER 4130 SENATE Wednesday, 23 June 2010 that he remains committed to tackling this reduce the number of problem gamblers you issue. need to change the volatility of machines and That is why this morning we announced reduce losses to no more than $120 per hour the process going forward. We made three as recommended in the Productivity Com- announcements this morning on this issue, mission’s draft report? which will, I believe, reshape gambling in Senator SHERRY—Senator Xenophon this country going forward. First, we indi- referred to the draft report but we have actu- cated our support for a national model of ally got the final report, which I released this precommitment for gaming machines. As morning. So we are not dealing with the Senator Xenophon well knows, this has draft; we are dealing with the final recom- never occurred and, once implemented, mendations. stands to significantly assist in addressing Senator Abetz interjecting— problem gambling in our country. The PC Senator SHERRY—It is important to report itself says: make the distinction, Senator Abetz. On the The most targeted and potentially effective issue of bet limits, let us remember that the measure is to give people the capacity to control Productivity Commission has found there is the behaviour of their future selves—to pre- commit only a limited capacity for the redesigning of existing gaming machines, so the immediate … … … rollout of bet limits would be very difficult, A major advantage of full pre-commitment is because of the limitations in machine design. that, properly designed, it has the potential to The PC itself says a dollar bet limit would make redundant some other significant regulatory provisions. not be feasible until 2016, so it is not practi- cally possible to do it immediately. I point to But we are going further. We announced that the PC report itself, which expresses that the we will not liberalise online gambling, as the best way forward is to ensure precommit- PC report recommended. The government is ment, and we backed that today. We will be not convinced that liberalising online gam- discussing all the details with the stake- bling would have benefits for the Australian holders for a precommitment regime, but I community which would outweigh the risks note the PC’s view on precommitment is that of increased incidents of problem gambling it could be up and running even sooner than spreading rapidly via this form of technol- bet limits. ogy. The current prohibition on the provision of online gaming services will continue to Senator XENOPHON—Mr President, I apply. But we intend to go further. We are ask a further supplementary question. Given committed to examining the regulatory ap- the Tasmanian government changed bet lim- proach taken by other countries with similar its from $10 to $5 not so long ago, does that regulatory regimes in relation to online gam- not indicate that it can be done practically, bling, particularly the United States. (Time and is the government concerned that given expired) the states’ heavy reliance on gambling taxes—$4 billion a year from poker ma- Senator XENOPHON—Mr President, I chines—that the states have an incentive not ask a supplementary question. The Produc- to act decisively on problem gambling? tivity Commission recommends that maxi- mum bets are reduced to $1 per spin, but Senator SHERRY—In our announce- does the government agree that to effectively ment today, we stressed that we want coordi- nated national action. We want an effective

CHAMBER Wednesday, 23 June 2010 SENATE 4131 national regime, not a state-by-state ap- senator last week, it is not inside my portfo- proach, and that is going to be this govern- lio area and I am not in a position to answer ment’s attitude. I acknowledge one of the the question. If the good senator would like challenges in addressing the harm caused by that question answered, she should direct the gambling is the reliance of state governments question to the Minister Assisting the Minis- on revenue raised from gambling. This is ter for Climate Change and Energy Effi- dealt with in a number of ways. Firstly, we ciency, Minister Combet. will identify the specific measures that I have Senator FISHER—Mr President, I ask a referred to here that need to be implemented. supplementary question, to the Minister As- Then, if there is any particular impact on sisting the Prime Minister for Government state revenue—if and when that is identi- Service Delivery. Of the 760 inspectors the fied—we will certainly assess that impact government says are needed to inspect and any implications it may have. I would 50,000 foil insulated homes, how many in- point out that in terms of the Commonwealth spectors are contracted and on the job? Grants Commission, which distributes GST Senator ARBIB—Again, I am happy to revenue to the states, we decided in February go through the program as I discussed last this year that it would no longer include week. There is an insulation safety program gambling taxes in its analysis of how much a underway with inspections of at least state receives in GST money. (Time expired) 150,000 homes that have non-foil insulation. Home Insulation Program Those inspections, as I told the good senator, Senator FISHER (2.55 pm)—My ques- are targeted at those homes that are most tion is to the Minister Assisting the Prime likely to have safety issues. If an ongoing Minister for Government Service Delivery, risk assessment indicates that more houses Senator Arbib. should be inspected, then they will be. Senator Cormann interjecting— Again, this is an area that is outside my port- folio area and outside the Office of the Coor- The PRESIDENT—Senator Cormann, I dinator General. I am quite amazed that after was trying to listen to Senator Fisher and you three questions last week, and the same an- came right in over the top of her. It makes it swer every time, again we are back here go- very difficult to hear the question when you ing through the same questions. Senator, you interject on your own questioner. Senator could have directed the question to the per- Fisher, commence again. son who could have answered the question. Senator FISHER—Thank you, Mr Presi- (Time expired) dent. Of the 23,200 foil insulated homes in- Senator FISHER—Mr President, I ask a spected for safety problems under the gov- further supplementary question. No thanks to ernment’s bungled Home Insulation Pro- the minister, we do know that the govern- gram, how many needed to be reinspected ment needs to reinspect some tens of thou- and why? sands of insulated homes because it did not Senator ARBIB—Thank you for the do the job properly the first time—it did not question. As I stated last week when I was inspect the homes properly first time asked a very similar question by the senator, round—and because it has changed its policy there is a foil insulation safety program un- mind. We know it does not have enough in- derway and over 24,000 inspections of spectors to do the job. So, Minister, why homes with foil insulation have been con- should Australian homeowners with insula- ducted. Unfortunately, as I told the good

CHAMBER 4132 SENATE Wednesday, 23 June 2010 tion have any confidence that the govern- The fact is that Canada is a real alternative to ment can mop up the mess of its bungled Australia when it comes to mining invest- Home Insulation Program? ment, because it has abundant deposits of the Senator ARBIB—Senator Fisher has very minerals that Australia is famous for again asked the question to the wrong minis- delivering: gold, copper, coal and uranium. It ter. Why should the Australian people have is a real competitor to us in terms of our min- any faith in those on that side that they can ing outputs and the exports that have under- deliver anything when they cannot even ask pinned the stunning performance of the Aus- the right minister the right question? This tralian economy over the last 10 or 12 just shows how incompetent the coalition years—even in the last two, under this gov- senators are on the other side of the chamber. ernment. The article goes on: They cannot even get the question right. That In contrast to Australia’s left-of-centre Labor was their sixth attempt. In baseball you get government, the ruling Conservatives in Canada three strikes. You have had six strikes; you are in the process of lowering corporate taxes. are certainly out. That is right: ‘lowering corporate taxes’. The Senator Chris Evans—Mr President, I article goes on: ask that further questions be placed on the The basic corporate rate is to fall to 15 per cent in Notice Paper. 2012, down from 22 per cent in 2007, and is the lowest among major industrial countries. QUESTIONS WITHOUT NOTICE: TAKE NOTE OF ANSWERS Yet what are we doing in Australia? We are looking at increasing the taxes on our mining Budget sector—the most productive sector of the Senator BUSHBY (Tasmania) (3.01 Australian economy—whilst our major com- pm)—I move: petitors, who have the very same minerals That the Senate take note of the answer given that we mine and rely upon, are looking to by the Assistant Treasurer (Senator Sherry) to a reduce their taxes and increase their competi- question without notice asked by Senator Ryan tive situation compared with us. British Co- today, relating to the budget. lumbia’s mining minister, Randy Hawes, is Kevin Rudd, Canadian mining man of the also impressed with the Australian Prime year— Minister, according to the article. He said: The DEPUTY PRESIDENT—Order! We’re very appreciative (of the Australian tax) You must refer to the Prime Minister by his … They should carry on and get all the revenue proper title. they can get. Senator BUSHBY—Kevin Rudd, Cana- He went on to say, noting that Canada’s met- dian mining man of the year: that is what allurgical coal exporters have higher trans- they have been calling him in the Canadian port costs than their Australian rivals, that press in the last couple of days. What have the proposed super tax is: they actually been saying? As reported in the … ‘a very good way to level the playing field.’ Financial Times yesterday: Many of the world’s mining companies had of- Gordon Peeling, chief executive of the Mining fices in Vancouver and ‘they are all completely aware of what’s happening in Australia and what Association of Canada, an industry lobby group, said the Australian tax “probably makes Kevin we’re doing in BC.’ Rudd (Australia’s prime minister) the mining man This most recent article is not the only com- of the year in Canada, because he’ll bring a lot of ment internationally that suggests that our investment our way”.

CHAMBER Wednesday, 23 June 2010 SENATE 4133 competitors for international investment in We won’t get all the business. We know that. our mining projects are salivating at the idea Australia will still have some of the business. But of the Rudd Labor government’s great big if we can get a percentage, an extra percentage, a new tax on mining—particularly in Austra- little bit more because of this blunder by the Aus- lia. There have been plenty of comments tralian Government, we’re willing to help our- selves. already from Canada, and I will quote some of those as well. Canadian Conservative MP Senator Ryan referred to comments by Van- Brad Trost has no doubts that the RSPT will couver based Teck Resources boss, Don drive mining offshore. He wants to cash in Lindsay, who said that the tax could be bene- on the adverse reaction by mining compa- ficial to him because Teck did not produce nies. He said: from Australia. He said, ‘If Australia really does it, then logically there will be less in- Canada, as is Australia, a major mining player and I think we see an opportunity to have some vestment there, particularly in coking coal. money come north. That would mean less coking coal, so prices would be higher.’ That is what Mr Lindsay He also said: told Canada’s Globe and Mail newspaper on Well money goes where the biggest profits are 15 June: and when you raise taxes profits tend to go down. So I’m sending out the message—Canada wants We went through a version of that (a tax in- Australian business. crease) in Alberta when a new resource royalty regime was put in and there was a big backlash. The dollars are going to move. People are Billions of dollars of investments were cancelled. scared because their profits are going to go in taxes so they should come to Canada—a low That is a real-life example. (Time expired) taxed, mining friendly jurisdiction. Senator MARSHALL (Victoria) (3.07 What else did he say? He said: pm)—Senator Bushby’s contribution only Canadian companies pay the same tax rates as goes to show that there are some people in all other companies— Canada who know even less about this tax He is talking about mining companies— proposal than he does. I think quoting what people on the other side of the world might and corporations do. And by 2014 we’re aiming think about something they have had no time to have a combined average of 25 per cent tax to consider—and that is demonstrated by the rate. consideration that Senator Bushby put and in In response to the question put to him that some of the quotes—is nothing more than a the Australian government’s argument is that contribution to the scare campaign the coali- big mining companies make huge profits at tions are wheeling out about this tax. times and the Australian public has a right to benefit from those profits, he said: Senator Bushby—Simple economics; ba- sic economics. I’m fine if the Australian government wants to make that argument. I just want the jobs coming Senator MARSHALL—Let us talk about to Saskatchewan. The question is always what the simple economics of it. When you move more can you get. away from a volume based tax that is based He went on to say: on what you take out of the ground to a profit based tax, you actually make some of But you ask yourself this question: If you’re a mining executive where would you sooner put the more marginal projects more competitive your investment? and enable them to proceed. They will not actually pay tax until they make a profit. In- … … …

CHAMBER 4134 SENATE Wednesday, 23 June 2010 stead of paying tax on what they take out of Senator MARSHALL—I know Senator the ground— Back is passionate about the fact that he be- Senator Bushby—Why are they opposing lieves that it belongs to the states. He does it? not believe it belongs to the Australian peo- ple. Being Western Australian, he believes Senator MARSHALL—See, this is your they should be seceding from the Common- argument. This is what you have failed to wealth. Good luck with that, I suppose. I do understand all the way through. What we are not think it will secede— taxing is the high-profit end of companies once they start to make profits, rather than Senator Back—Succeed. taxing what they actually take out of the Senator MARSHALL—Yes. It is a bi- ground. It is a much more efficient and much zarre argument that they run. If they want to more market based way of addressing this split hairs and argue that it belongs to the industries tax. This is what the mining indus- states, they can continue to run that. What we try asked us to do. That is what they asked know and what the Australian people know the Henry tax review to consider, and that is and understand is that those resources belong what it did. to them. The Australian people want their What the mining companies are actually fair share. Those resources do not belong to complaining about is the amount of tax. Let the mining companies. They belong to the us be very clear about this: the campaign Australian people and they want their fair being run by the mining industry is one of share. pure self-interest. They are actually getting Let us be very clear on what this argument half of what they want—that is, the way the is about. It is about how much tax the mining tax is going to be applied on profits not on companies want to pay. Is anyone really sur- volume, not on what they take out of the prised that the mining companies that face ground. That is what they asked for and that increased taxation—even though it is set in a is what they wanted. What they are really way that they like and in many instances complaining about is how much tax they are they will in fact pay less tax at many levels going to have to pay. Their attitude is pure up until the super profits stage—the richest self-interest. That is why they are fighting. and most profitable ones, the ones with the That is why they are spending up to $100 most profitable mines, are complaining? million blitzing the country with their con- They will pay more tax—that is true—when stant advertising. They are only self- they get into the super profits situation, but interested. Quite frankly, they think the as- many will pay less tax under this arrange- sets in the ground belong to them. They do ment. not; they belong to the Australian people. Who is putting in the big bucks in the The Australian people require their fair campaign against the tax? The big mining share. companies, because they know they make Senator Back—They belong to the peo- super profits. They want to keep all the mas- ple of the states. sive profits that we have seen double, triple The DEPUTY PRESIDENT—Order! I and quadruple over the years. They pay less am not going to put up with a shouting match tax now as a percentage than they ever have across the chamber. Senator Marshall has the before. Australians deserve their fair share. call and he shall be heard in silence. This government put Australia’s interests first. It puts the interests of Australians be-

CHAMBER Wednesday, 23 June 2010 SENATE 4135 fore the interests of the big companies. They if you threaten the viability of the mining will still make lots of money. Let us not industry, you threaten jobs. We hear a lot of make any mistake about that. These compa- talk about Western Australia and Queensland nies will continue to make billions and bil- in this debate, but so many of those jobs are lions of dollars, as they always have. But if it in New South Wales and people in New is a question of whether they can save some South Wales are very worried about losing extra money here and there, they say, ‘Let’s their jobs. do so; let’s run a campaign against the gov- I went travelling right through the central ernment,’ because they have a compliant op- west and western New South Wales—17 position—an opposition which they know towns—a couple of weeks ago. will simply roll over because they are look- Senator O’Brien—In your green car? ing for any issue to be at odds with the gov- ernment on. The mining companies think: Senator NASH—Yes, in my green car. ‘Okay, we can buy them. We can put them in Thank you, Senator O’Brien. I will take that our pockets and we will try and change the interjection. I could not find one person who government. They will do what we want supported this mining tax. And I am not talk- them to do and move away from this tax so ing about big miners from all those mines the Australians do not get their fair share.’ That other side say are making billions of dollars. is what they have done. They have effec- I am talking about real people on the street tively bought the opposition. You are the and on the ground who know that their jobs paid servants of the big mining companies. rely on those mines. Out around where I am, small regional communities such as Cowal, Senator NASH (New South Wales) (3.13 Cadia and Northparkes rely on those mines pm)—Just when you thought the government to be profitable and sustainable. What is this could not come up with another bad idea, government going to do? It is going to rip the here comes another one, wham! It is unbe- heart out of the future viability of the mining lievable—bad idea, after bad idea. It is just industry. We talk a lot about coal. I am talk- extraordinary to watch how many stupid ing about the metals out there. We can see ideas this government can actually come up that this government is going to take away with. This one is an absolute ripper. What the viability of that industry. have we got here? They say, ‘Higher taxes are going to lead to investment.’ Ooh! That is Interestingly, Ken Henry apparently wants something a rocket scientist must have to just tax everybody. He said, ‘Let’s just thought up—higher taxes are going to lead to whack this big tax on all sorts of businesses.’ investment. Isn’t that extraordinary? Every- What did the government say in response? It where else around the world, they seem to be said: saying, ‘It’s actually lower taxes that lead to The bottom line is the Government’s position in investment.’ Maybe the Prime Minister read relation to the resource super profits tax is that it the advice a little wrong and he put ‘higher’ applies to non-renewable resources in Australia. in when he should have put ‘lower’. This is Who would believe the Prime Minister? He one of the most stupid ideas that a govern- changes his mind so often and does so many ment has ever come up with. Guess why? If backflips, who on earth would now believe you threaten the viability of the mining in- anything he says? They do not. People out dustry, you threaten jobs. It is as simple as there across Australia no longer believe this that. It does not matter how many compli- Prime Minister. So what is next, Prime Min- cated arguments you want to put around this, ister? Is this tax going to apply to agricul-

CHAMBER 4136 SENATE Wednesday, 23 June 2010 ture? Are we going to start seeing farmers economic impact. They are going to weight it being hit with a tax? Whatever the Prime to the environment and it is going to be yet Minister says, you can no longer believe him another bad idea, just like the mining tax. because he simply backflips on just about Senator HUTCHINS (New South Wales) everything. (3.18 pm)—Talk about unbelievable—this is Talking about bad ideas, this mining su- coming from a member of the National Party pertax is at the top of the pile. But it is at the from New South Wales. One thing Senator end of a long list of bad ideas. What have we Nash did not talk about was the National seen so far, colleagues? The emissions trad- Party’s position on the Liverpool Plains, ing scheme was a bad idea. That was a where they think they can have a position cracker of a bad idea. The list of bad ideas about opposing mining in central western just keeps going. How about getting rid of New South Wales, which is going to create a the single desk? The single desk went two lot of employment, and at the same time years ago today. That was a bad idea if ever come down here and barrack for the miners there was one, because the wheat industry is and say that the tax will, as I think she said, in absolute turmoil. What else have got? We ‘threaten jobs and lose jobs’. have the government getting rid of the $2 I have been going out that way as well, billion telecommunications fund. What have Senator Nash. Most people know what sort we seen there? They do not care at all about of hypocrites the National Party are. You regional telecommunications. Let us look at cannot have home and away games. You another bad idea. How about the insulation cannot go and protest on the Liverpool Plains scheme? That was a cracker. How about an- to stop mining and then come down here and other bad idea, such as wasting money on barrack for the miners. You cannot do that. school buildings? The list is endless—bad That is unbelievable. Everybody in New idea after bad idea. South Wales knows that about the National Now we have the mining tax. Interest- Party. Even your journal, your bible, the ingly, how could anybody in this country Land, comments on the dual position of the ever think that the government could do it National Party. properly? They cannot do anything else I want to talk about some of the contribu- properly. The country is going to the pack tions that have been made in relation to this because this government have absolutely no tax today. Senator Bushby quoted a progres- idea how to run the country. It is like letting sive conservative—that is what they call a bunch of kindy kids be in charge of a high themselves—government minister in Can- school. Mind you, the kindy kids would ada. I wonder where the unprogressive con- probably run the country a bit better at the servatives are. I am assuming they are on the moment. It is appalling what this government other side over here, because we have this are doing. They have no idea. opportunistic, progressive conservative cabi- Speaking of bad ideas, we have another net minister in Canada claiming that they cracker coming up from this government will do quite well out of the introduction of with the sustainable diversion limits under this tax. Last week the opposition pulled out the Murray-Darling Basin Plan. This one is a quote from a conservative minister from going to be an absolute cracker, because they the Chilean government claiming that they are going to completely ignore the needs of would do well out of the tax. I think they regional communities and the social and pulled out a quote from someone from Bra-

CHAMBER Wednesday, 23 June 2010 SENATE 4137 zil. I think it was a socialist minister from companies have a lot of self-interest in this. I Brazil. They found him. In fact, I think Sena- have never met anybody who wants to pay tor Mason and Senator Brandis wanted to tax. I have never met anybody who wants to make a contribution about whether the Cu- pay any more tax. Understandably, they are ban ministers had made a contribution about arguing as best they can. the proposed tax. In my final seconds, I want to remind The fact is, Mr Deputy President—and people what we are going to do with that you with your experience know this as well increased money. We are going to reduce as I do—that once this tax is introduced in company tax. We are going to invest in infra- this country other Western nations will intro- structure and boost national savings through duce the same tax. You know that as well as I increased superannuation contributions. It is do. Do not be misled by these opportunistic going to be a great legacy that this govern- statements by fellow members of the dark ment leaves Australia. side of politics. Do not be misled. You know Senator BACK (Western Australia) (3.23 that, I know that and everybody else knows pm)—We have it from the executive of the that. The only person from the mining coun- Mining Association of Canada: Kevin Rudd, tries that the coalition have not quoted so far Australia’s Prime Minister, the mining man is President Chavez of Venezuela, who op- of the year in Canada. What a lemon of an portunistically just nationalises private in- idea that is. What lengths will this man go to dustry. to try and buy votes internationally? We know, as everybody else in public life I respond to the comments made by Sena- knows, that to change tax and introduce re- tor Sherry in questions asked by my col- form is difficult. In the history of this Com- league. We see again nonsense at the men- monwealth it has not been done without a lot tion of the concept of consultation apparently of debate and controversy. As I recall from to the extent of: ‘We’re going to rob you. reading history, the transfer of income tax Which part would you like us to take first?’ powers from the states to the Commonwealth He mentions the Henry review. By their own after or during World War II—I cannot recall terms, the government only accepted 2½ of which—was accompanied by a lot of debate. 138 recommendations of the Henry review— In fact we have a secessionist over here, totally discredited by the government that Senator Back, who probably would have commissioned it. opposed it in the forties and continues to op- Let me advise you of a few facts associ- pose any sort of contribution by Western ated with the mining industry: only 10 per Australia to the rest of the Commonwealth. cent of all exploration in mining in this coun- You know as well as I do, Mr Deputy try yields a mineable product; 90 per cent President, that the introduction of the goods does not. By the criterion of 6.25 per cent or and services tax in this country was bitterly six per cent of the government bond rate, less contested by this side and your side. It was than 20 per cent of all mining projects in this introduced by Prime Minister Howard and he country historically could be regarded as fought an election on it. As I said, it was con- having made a profit; 80 per cent have not. troversial and it was contested. We are intro- This government is proposing that the tax- ducing another tax that is equally controver- payer will pick up a 40 per cent levy on sial and contested. It should be taken with a failed mining ventures—the 80 per cent that grain of salt that of course the large mining failed.

CHAMBER 4138 SENATE Wednesday, 23 June 2010

Let us have a look at an arbiter called the are not taxes. A royalty is the sale price of a banks. To what extent did the banks value at mineral asset to the company which wishes all this so-called outpouring of generosity by to buy it on behalf of the people of the state. our Prime Minister of our money? The banks In case Senator Marshall has a heart attack discounted it. The banks said that 40 per cent over it, we have a grants commission that has got no value at all. Let us have a look at makes sure that everything is balanced up so the level at which this tax is coming in: it is all Australians benefit. That is the reason coming in at six per cent at the government regrettably at the moment why our state only bond rate. Even the petroleum resource tax gets 68c back in the dollar of GST revenue, comes in at about 11 per cent and more, and and the states of Queensland, New South that has had some level of acceptance. But Wales and Victoria receive in advance of 90 this tax, in contrast to the petroleum resource per cent. tax, is retrospective, so all of those decisions Royalties are a sale price of the asset by and investments that have already been made the people of the state. If this Prime Minister get picked up in it—some resource super wishes to change that and call those minerals profits tax. assets the ownership of the entire country What seems to have been lost in this de- then he ought to come clean and go to the bate is there is already a profits tax upon eve- Australian people with a proposal to change rybody, including miners, and that is called the referendum. Premier Barnett has indi- income tax and company tax. The difference cated ably only in the last few days what true between our side and that side over there is consultation is. It relates to iron ore finds, simply this: we believe in growing the size and in fact we ended up with those two com- of the pie. If you make the pie bigger, there panies accepting his adjudication. is more for everybody. If, on the other side, Question agreed to. all you can do is see the size of the current GOVERNMENT ADVERTISING pie, all you can do is keep dividing and di- viding. Return to Order What a shame it is that Senator Marshall Senator LUDWIG (Queensland—Special is not here. He made one accurate point: he Minister of State and Cabinet Secretary) referred to Western Australia succeeding. He (3.29 pm)—by leave—With reference to is absolutely right—and thank the Lord for Senator Ronaldson’s return to order motion the rest of this country that Western Austra- dated 22 June 2010 requesting the produc- lia, Queensland and now South Australia tion of a copy of a draft statement of reasons with its current activities are succeeding. But and draft correspondence to the Treasurer by there is no point our state seceding, because the Department of Finance and Deregulation Senator Marshall would want to come with provided to the Cabinet Secretary and Spe- us, so we might as well stay where we are. cial Minister of State on 14 May 2010, as indicated in Senate estimates by the Cabinet Senator Marshall spoke of royalties and Secretary and Special Minister of State at the the Australian Constitution in some way be- hearings of the Senate Finance and Public ing bizarre. Quite how this Constitution is Administration Estimates Committee on 17 bizarre, I do not know, but let me inform June 2010, the draft statement and draft letter him, as indeed the Western Australian Pre- to the Treasurer were working documents, mier, the foremost Premier in this country, being iterative drafts. These documents have says so often—and I will repeat it—royalties no separate status and the final versions of

CHAMBER Wednesday, 23 June 2010 SENATE 4139 these documents have been declassified and of our men in uniform. Private Aplin, Private tabled in this chamber. Chuck and Private Palmer were among that CONDOLENCES small and select group, who not only volun- teered for some of the most challenging and Private Timothy Aplin dangerous work in the ADF but endured and Private Benjamin Chuck excelled in demanding training to gain that Private Scott Palmer opportunity. As senators would know, all Senator FAULKNER (New South commandos take the rank of private. They Wales—Minister for Defence) (3.29 pm)— are equals; they are comrades; they are by leave—I move: mates. That the Senate record its deep sorrow at the Private Tim Aplin completed the Com- death, on 21 June 2010, of Private Timothy Aplin, mando Selection and Training Course in Private Benjamin Chuck and Private Scott 2008 after 13 years in the Regular Army and Palmer, while on combat operations in Afghani- willingly took a reduction in rank from ser- stan, and places on record its greatest appreciation geant to achieve his goal of being posted to of their service to our country, and tenders its the then 4th Battalion, Royal Australian profound sympathy to their families in their be- Regiment (Commando)—now the 2nd reavement. Commando Regiment. Private Ben Chuck Private Tim Aplin, Private Ben Chuck and joined the Army in 2004 as part of the Spe- Private Scott Palmer were outstanding sol- cial Forces Direct Recruiting Scheme and he diers with exemplary service records who was posted to the same regiment. Private were held in the highest esteem by their Scott Palmer enlisted in the Australian Army mates. The helicopter crash that took the in 2001, successfully undertook commando lives of these brave and dedicated comman- selection and training in 2006 and joined that dos and wounded seven of their fellow sol- same 4th Battalion, Royal Australian Regi- diers is a heavy blow for Australia, for the ment (Commando) in November 2006. These ADF and most especially for the families, three men served together, and tragically friends and loved ones of Private Aplin, Pri- they died together, but they were also unique vate Chuck and Private Palmer. Our thoughts individuals who brought their own qualities and our deepest sympathies are with them and virtues to the Special Operations Task today. Our grief for these fine soldiers cannot Group. match the devastation felt today by those Private Tim Aplin, a team demolitions mourning the loss of a beloved son or specialist, was highly respected by all for his brother, father or friend. On behalf of the dedication and skills. Private Aplin has been government and, I know, of all senators, I awarded the Australian Active Service Medal offer deepest condolences to those personally with East Timor, Iraq and International Coa- touched by this terrible loss. lition Against Terrorism clasps, the Infantry All three of these fine soldiers were part Combat Badge, United Nations Medal with of the Special Operations Task Group drawn Ribbon UNTAET, the Iraq Medal, the Aus- from the Sydney based 2nd Commando tralian Defence Medal, the Defence Long Regiment. Our commandos are highly Service Medal and the Afghanistan Medal. skilled, highly trained and very dedicated. Private Aplin had also been awarded the Re- Many seek out this challenging career, but turned from Active Service Badge from a not all succeed in their training. Those who previous deployment. He had deployed to pass are physically and mentally the toughest East Timor in 2000, to the Middle East as

CHAMBER 4140 SENATE Wednesday, 23 June 2010 part of Operation Bastille in 2003 and to Af- to East Timor in 2003 and again in 2007, to ghanistan as part of Operation Slipper in the Middle East as part of Operation Catalyst 2009 and again this year. He was a loving in 2005 and to Afghanistan as part of Opera- husband and father and a remarkable person, tion Slipper three times, in 2007, 2009 and who was passionate about his job and always again this year. Our thoughts and sympathies put others first, whether it was his mates in are with Private Palmer’s parents, Ray and the Army or at home with his family and Pam, and his brother, Adam. friends. Our thoughts and sympathies are While I cannot discuss the operational de- with Private Aplin’s wife, Natasha, his chil- tails of the work that these fine soldiers were dren—Ty, Shinae, Josie and Daniel—and his doing when they were killed, I can assure mother, Margaret. their families and friends that they were Private Ben Chuck, who faced down striking at the heart of the Taliban insurgency crocodiles in a wildlife show before becom- as part of our mission in Afghanistan to ing a commando, was the patrol medic in his make sure that extremists and international team. His mates say that his affectionate and terrorist groups do not again find safe havens caring nature and his passion for helping his and training grounds in that country. This mates made him especially suited for this work is very much part of the protection of role. Private Chuck has been awarded the Australia and the Australian community. Australian Active Service Medal with the Australia cannot afford—Australians cannot ICAT clasp, the Afghanistan Medal, the afford—for Afghanistan to again become a NATO ISAF Medal, the Infantry Combat safe haven for terrorist organisations, such as Badge and the Australian Defence Medal. al-Qaeda, that have Taliban support, that Private Chuck had also been awarded the have a global reach and are a global threat. Returned from Active Service Badge from The Bali bombing on 12 October 2002, his first deployment to Afghanistan. He de- which killed 202 people, including 88 Aus- ployed to Afghanistan as part of Operation tralians, was carried out by terrorists with Slipper three times, from May to August in direct links to Afghanistan. 2007, from June to November in 2008 and The difficult work that our soldiers do, as again in February this year. Our thoughts and all senators know, is very dangerous. Sixteen sympathies are with Private Chuck’s father, Australian soldiers have now tragically lost Gordon; mother, Susan; brother, Jason; sis- their lives in Afghanistan. One hundred and ter, Tiffany; and partner, Tess. thirty-five have been wounded in action. Private Scott Palmer’s outstanding profes- They were, as their comrades still are, carry- sionalism was driven by his love for his job ing out their work with courage and profes- and his love for working alongside his mates. sionalism in conditions of real hardship and He excelled at everything he did. Private very real danger. We thank them for their Palmer was awarded the Australian Active dedication, for the sacrifices they make and Service Medal with the Iraq, East Timor, and the risks that they face for all of us. We thank ICAT clasps; the Iraq Medal; the Australian the families of the men and women in uni- Defence Medal; the Australian Service form serving overseas for the sacrifices that Medal with clasp Timor-Leste; the Afghani- they make and the support that they give to stan Medal and the NATO ISAF Medal. Pri- their loved ones. Our fallen soldiers and their vate Palmer was also awarded the Infantry families have paid a very high—an un- Combat Badge and the Returned from Active thinkably high—price for that dedication. We Service Badge. He had previously deployed

CHAMBER Wednesday, 23 June 2010 SENATE 4141 will never forget, although we can never re- dolences at their loss and its best wishes for pay, that debt. those that were wounded and suffered inju- Tim Aplin, Ben Chuck and Scott Palmer ries. were brave men, fine soldiers and out- Privates Tim Aplin, Ben Chuck and Scott standing Australians. Their families can be Palmer were all fine professionals with deep very proud of their commitment to our coun- experience in Australia’s recent overseas try. We are profoundly honoured by their military deployments. All of them were service to our nation. highly decorated and had served with dis- Senator ABETZ (Tasmania) (3.41 pm)— tinction on previous assignments in Afghani- The coalition joins in support of the motion stan, and Privates Aplin and Palmer had also of condolence moved by the Minister for served in East Timor and Iraq. Their exem- Defence. Australia has a wonderful Defence plary service has been more fully outlined by Force. Its reputation has been built on the the minister. I believe it is important that that generations, former and current, of service was put on the public record and I thank the men and women who have donned the uni- minister for doing so. form. They have given this nation great If I may, I note the association of Private pride. Today’s men and women in uniform Chuck with my home state of Tasmania. His follow in those footsteps and are worthy suc- former school, the Hutchins School, is, as we cessors of their forebears. Our forces enjoy speak, flying the flag at half-mast in memory an unparalleled and deserved reputation. In of their fallen former student. I acknowledge part, that is because of their willingness to and applaud the school’s display of support. serve in the cause of freedom—a timeless The freedom we enjoy comes at a price. and universal value which we all hold dear. The cause of freedom comes at a price. Pri- Our enjoyment of freedom today has been vates Aplin, Chuck and Palmer were willing bought with a price. Today’s condolence mo- to pay that price. They were engaged in the tion highlights that high price. fight against international terrorism. They We mourn the loss of Privates Aplin, fought for our national security and, indeed, Chuck and Palmer. Their loss is felt by the international security. In case our nation whole Australian nation; a nation which is needs reminding, the Bali bombings, which grateful for their willingness to serve. The devastated this nation with the loss of 88 loss is of course felt more personally, deeply lives, and indeed the international commu- and intensely by the families, personal nity with another 114 lives—202 in total— friends and mates of our fallen men. It is the were undertaken by terrorists, as the minister coalition’s wish that their families, friends said, with links to Afghanistan. I believe it is and mates feel the thanks of a grateful nation important to make mention of that because at this time of loss to help ease their pain. We that is the context in which our brave per- sincerely trust that this motion serves that sonnel were serving in Afghanistan. We give purpose. On behalf of the coalition, I express thanks for their willingness to serve. We our wishes for recovery to our wounded per- mourn their loss. We share in the grief that sonnel and wisdom to the medical support their families, friends and mates are experi- teams caring for them in Germany. Those encing, and we trust that this expression of who are joined with us in the cause of free- thankfulness by this nation goes some way to dom in Afghanistan also suffered loss in this easing their pain. incident, and the coalition expresses its con-

CHAMBER 4142 SENATE Wednesday, 23 June 2010

Senator JOYCE (Queensland—Leader of of their immense bravery and service to our the Nationals in the Senate) (3.46 pm)—I nation, they engaged the enemy in foreign rise to concur with the remarks of both Sena- lands rather than our having to engage them tor Faulkner and Senator Abetz. I note the here in Australia. tragic sadness that accompanies this condo- I also concur with the statements of both lence motion for those who have willingly Senator Faulkner and Senator Abetz in re- served and laid down their lives for our minding Australians of the many reasons that country. Privates Palmer, Aplin and Chuck they were there. The reason that is salient for were all members of the 2nd Commando most is the horrific act of the Bali bombings Regiment—a regiment in which privates and the connections back to Afghanistan and serve as a true brotherhood. This is the sort al-Qaeda. The fact of this engagement al- of sacrifice that people in the Australian De- ways makes people question, but we should fence Force, both men and women, willingly never ever question the integrity, heroics and make. They know full well that they are in an bravery of the combatants. If Australians engagement which could cost them their were not there and these sacrifices not made lives. then, at a future time, others would have to Private Chuck was born in Atherton, and I carry our weight for us, and ultimately the am sure that today the people of Atherton ramifications would make their way back share a sense of deep sadness at his passing. here. As a medic, he was in the role of caring for There have been many previous engage- those around him, and to have compassion in ments in foreign lands, going all the way such a field of engagement is an indicator of back to Vietnam and beyond, where people an exceptionally brave character. Private Ap- have at times questioned our involvement. lin was obviously a highly distinguished sol- The point that should be noted, however, is dier who, in his desire to become a com- that the engagement with the enemy has to mando, went from sergeant back to the ranks be on the terms that best favour us and not of private so that he could serve in the en- them. You are asked to seek out and close deavour that he thought was of greatest ser- with the enemy, to kill or capture him by day vice to our nation. Private Palmer was a per- or by night regardless of the season, weather son who was at the peak of his physical or terrain. The command they give you in the powers and military career, a person who infantry is not to wait until they come to you epitomised the valour of the highly trained but to go to them. Privates Palmer, Aplin and soldier. Chuck exemplified Australians who were We also keep in our prayers and thoughts seeking out and closing with the enemy so those who were injured in the same helicop- that we do not have to engage with them ter crash—just as our thoughts and prayers here. are with Privates Palmer, Aplin and Chuck. Senator BOB BROWN (Tasmania— We also note the deep sadness that will now Leader of the Australian Greens) (3.50 be felt by their families. There is little we can pm)—The Australian Greens join with every do to remove the weight of grief from their other senator and member of this parliament, shoulders except to let them know that our and Australians from coast to coast, in la- nation holds the service of the men in the menting the terrible losses of Privates Tim highest esteem. Through their endeavours, Aplin, Ben Chuck and Scott Palmer in the we recognise that their lives can certainly service of their nation. This is a terrible part never be said to have been wasted. Because

CHAMBER Wednesday, 23 June 2010 SENATE 4143 of the mounting toll in Afghanistan, and we service of this nation in what is an extraordi- extend to the families, friends, comrades and narily difficult situation for us all to compre- communities of Privates Aplin, Chuck and hend and come to terms with. Palmer our deepest sympathy. Together with I reiterate that I think we owe it to our De- our colleagues in this Senate, we express our fence Force personnel to have a much more honour and respect for these soldiers who, in wide-ranging debate about their service in the courageous service of their country, have Afghanistan at the behest of our government lost their lives. and, therefore, our nation and, therefore, all They will be honoured in the annals of of us. I note that the Dutch forces have with- Australia’s history. They have put their lives drawn. In fact, the government of the Nether- on the line for the nation, the country they lands fell because of the debate on this very loved, and have lost their lives. And now, issue—in a country even further away from and as a consequence, there is extraordinary Afghanistan. The Canadians intend to follow misery and grieving but, hopefully, the suit next year. I note also the absence of de- emergent joy of knowing for the families, the ployment in this theatre by much bigger and friends and the communities that have to closer defence forces such as China and In- endure this dreadful news that a nation hon- dia. Their involvement, of course, would ours the lost one. potentially lead to a much swifter outcome. The circumstances in Afghanistan have These are very difficult and heart- not changed for the better. It has been my wrenching situations, and we must not flinch repeated asseveration that we should have a from taking on that difficult debate and full and open debate in this parliament on the communication with our own communities Afghan involvement by our brave Defence in honour of the involvement of our brave Force personnel, with a conscience vote and Defence Force personnel and, indeed, civil- with every member of parliament here con- ian personnel in Afghanistan. We owe it to tributing his or her knowledge and reflecting this nation on their behalf, after such a long his or her electorate’s feeling about our long involvement—since 2001—and, as Senator involvement and our continued future in- Faulkner said, after the death of 16 of these volvement in a war where there is no sight of good, true, courageous and committed Aus- end, exit or withdrawal by the Australian tralians, and with the toll of another 135 in- Defence Force personnel. jured. I might add here, and I know that col- We have heard today of these wonderful leagues will appreciate this as well, that I am privates who have now lost their lives. I hope very pleased that Senator Faulkner is the that when this parliament returns in August Minister for Defence in this country, because or, if it is that there is an election on the his own statement today to the nation on our agenda, when the new parliament comes involvement in Afghanistan shows a deep back it will give a commitment to honour commitment to international negotiation and that involvement and that the extraordinary to involvement on the ground at the interface anguish for all the people—the families, in in a very complicated situation in Afghani- particular, of our Defence Force personnel— stan, and brings with that an intelligence and is not repeated in the deployment to theatres a heartfelt humanity and concern for Austra- of war in East Timor, Iraq and Afghanistan. lians in Afghanistan and for everybody in It is incumbent on us to debate this issue Afghanistan. This is quite exemplary in the more than we have. That said, I appreciate

CHAMBER 4144 SENATE Wednesday, 23 June 2010 this motion today. It is incredibly important, very articulately spoken about the sacrifice and I am glad we are united in it. I hope that that has been made and about the tragic cir- it presents some balm for the most affected cumstances of their deaths. We are here to- souls who are dealing with this tragedy. day as a Senate to honour them for their con- Senator FIELDING (Victoria—Leader tribution and the sacrifice they have made for of the Family First Party) (3.57 pm)—Family this nation. I add my thanks to the Minister First joins in this condolence motion and for Defence, Senator Faulkner, for the com- acknowledges Private Aplin’s, Private petence and humanity in the work he has Chuck’s and Private Palmer’s dedication to done in a very difficult portfolio. I do not our country, their service for this country and think anyone envies him in the role that he their willingness to put their lives in danger- has, but I thank you, Senator Faulkner, for ous circumstances so that we may enjoy our your openness and candour about what is freedoms. The freedoms that we enjoy today happening in Afghanistan in these very diffi- are because many others have sacrificed a lot cult times. I join with my colleagues in com- for the safety and freedoms that we have to- plete support of this condolence motion. day. Senator BACK (Western Australia) (4.00 It is hard to know what it would really feel pm)—I thank the Senate for the opportunity like to lose a husband; it is hard to know to support the motion of the Minister for De- what it would be like to lose a son or a fence to honour the memories of Privates daughter, a brother or a sister, and I think of Aplin, Chuck and Palmer. The then Sergeant the families of Private Aplin, Private Chuck Aplin deployed to Iraq with my son, Captain and Private Palmer. Hopefully, this condo- Justin Back, in 2003 in the first security de- lence motion will bring some comfort to all tachment to Baghdad, where Sergeant Aplin of them, knowing that this nation says thank was an infantry platoon sergeant and my son you to them. was the troop commander of the 2nd Cavalry Regiment. Justin reports to me that Sergeant I watched the news last night and heard a Aplin was doggedly professional, totally de- couple of close relatives—I think one was a pendable, a man with a wicked sense of hu- mother, and there was some other family mour and highly regarded through all the member—just sharing about the ones who ranks. In summary, he was a great bloke and had been lost previously. I do not think that one you could rely on 100 per cent. As Justin now is the time to talk about what we do observed and as the minister has said, the with the war in Afghanistan. This is about a then Sergeant Aplin gave up his hard-earned condolence motion and about saying thank rank of senior sergeant to join the comman- you. Hopefully, this will bring some comfort dos and I understand those same qualities to those families who have lost loved ones. carried through with him to that commando We do also continue to extend our prayers regiment. and thoughts out to those who are wounded, for a speedy recovery for them. These three men have carried on the long tradition of excellence that characterises Senator XENOPHON (South Australia) Australian service personnel. Our hearts go (3.59 pm)—I too join my colleagues in com- out to their families, soldiers and friends. plete support of this motion and I extend my They have experienced what every service condolences and deepest sympathies to the family fears, but they can take comfort in the families and loved ones of Privates Aplin, prayers and debt that is owed by our entire Chuck and Palmer. I think my colleagues community for their bravery.

CHAMBER Wednesday, 23 June 2010 SENATE 4145

Question agreed to, honourable senators proximately 1 per cent of the 200 000 standing in their places. loans it promised at the 2007 election; NOTICES (d) its failure to finalise additional assessor contracts in a timely manner, leaving Presentation thousands of assessors in limbo and/or un- Senator Hutchins to move on the next employed and without any offer of Gov- day of sitting: ernment support; That the Senate— (e) delays in its conduct of audits and reviews into the program, including reviews the (a) welcomes the signing of various bilateral Minister has indicated would inform the agreements between China and Taiwan, finalising of additional assessor contracts; including on direct flights, maritime ship- ping, linking postal services, food secu- (f) its failure to commit to the public release rity, financial services and cooperation in of these audit and review findings; telecommunications agreed to since May (g) its failure to deliver a promised Green 2008; Rewards Card (the card) to householders (b) recognises the continuing improvement in and its expensive, bureaucratic alternative relations between China and Taiwan is to the card; conducive to the long-term rapprochement (h) its failure to implement, following the between these communities and will have discontinuation of loans, any mechanism a positive effect on the stability and secu- for evaluating the worth of assessments rity of the Asia-Pacific region; and conducted at taxpayer expense; and (c) encourages both sides of the Taiwan Strait (i) the Minister’s failure to acknowledge, let to further enhance dialogue, practical co- alone respond, to correspondence. operation and confidence-building, includ- Senator Ludlam to move on the next day ing a cooperative approach towards pro- viding increased opportunities for Taiwan- of sitting: ese participation in international forums That the Senate notes that: and global policy dialogue. (a) Australians use more than 11 billion drink Senator Birmingham to move on the containers every year; next day of sitting: (b) through a container deposit scheme, South That the Senate notes the continuing failings of Australia has achieved a recovery rate of the Rudd Government in relation to its Green more than 80 per cent; Loans program (the program), despite the under- (c) the National Waste Report 2010 shows takings of the Minister for Climate Change, En- that Australians recycle only 40 per cent ergy Efficiency and Water (Senator Wong) of 10 of our municipal solid waste; March 2010 to the Senate, including: (d) a national container deposit scheme (a) the training and accreditation of thousands would: more assessors than the Government first (i) create hundreds of green jobs, promised, had work for, or ever intended (ii) decrease litter by 12 to 15 per cent, to contract; (iii) increase recycling of drink containers (b) systemic failures to process bookings for from 50 to 80 per cent, home sustainability assessments, return assessments to householders in a timely (iv) divert more than 512 000 tonnes from way or pay assessors for work undertaken landfill, in a timely way; (v) reduce national greenhouse gas emis- (c) its cancellation of the loans component of sions by nearly one million tonnes of the program, having provided only ap- CO2 each year, the equivalent of

CHAMBER 4146 SENATE Wednesday, 23 June 2010

switching 135 000 homes to renewable Senator Barnett to move on the next day energy, and of sitting: (vi) improve air quality to the equivalent of That the following bill be introduced: A Bill taking 56 000 cars off the road; and for an Act to amend the Financial Management (e) a national container deposit scheme be and Accountability Act 1997 to ensure value for introduced without further delay. money in the use of Commonwealth resources, Senator Parry to move on the next day of and for related purposes. Financial Management sitting: and Accountability Amendment (Value for Money in Government Spending) Bill 2010. That the Senate notes: Senator Ludwig to move on the next day (a) the ineptitude of the Rudd Labor Govern- of sitting: ment to deliver promised services to the Australian people; and That, on Thursday, 24 June 2010: (b) the mismanagement by the Rudd Labor (a) consideration of government documents Government in relation to: and the consideration of committee re- ports, government responses and Auditor- (i) border protection, General’s reports under standing order (ii) migration, 62(1) and (2) shall not be proceeded with; (iii) Indigenous policy, (b) the routine of business from not later than (iv) home insulation, and 6 pm shall be government business only; and (v) the Building Education Revolution. (c) divisions may take place after 4.30 pm. Senator Faulkner to move on the next day of sitting: Senator Ludwig to move on the next day of sitting: That the following bill be introduced: A Bill for an Act to amend the Defence Act 1903, and for (1) That the following matter be referred to related purposes. Defence Legislation Amend- the Finance and Public Administration ment (Security of Defence Premises) Bill 2010. Legislation Committee for inquiry and re- port by 1 July 2011: Senator Fielding to move on the next day of sitting: Exposure drafts of Australian privacy amendment legislation. That the following bill be introduced: A Bill for an Act to enhance customer choice in the re- (2) That, in undertaking this inquiry the pair and maintenance of motor vehicles, and for committee may consider the exposure related purposes. Choice of Repairer Bill 2010. draft of the Australian Privacy Principles and the draft companion guides on the Senator Fisher to move on the next day Australian privacy reforms, and any other of sitting: relevant documents tabled in the Senate or That the time for the presentation of the report presented to the President by a senator of the Environment, Communications and the when the Senate is not sitting. Arts References Committee on the Energy Effi- Senator Heffernan to move on the next cient Homes Package be extended to 2 July 2010. day of sitting: Senator Barnett to move on the next day That the time for the presentation of the report of sitting: of the Select Committee on Agricultural and Re- That the following bill be introduced: A Bill lated Industries on food production in Australia for an Act to establish the Parliamentary Budget be extended to 23 August 2010. Office, and for related purposes. Parliamentary Budget Office Bill 2010.

CHAMBER Wednesday, 23 June 2010 SENATE 4147

Senator Siewert to move on the next day menting and administering their laws and of sitting: programs. That the Senate— Senators Nash and Colbeck to move on (a) notes that the price of alcohol has proven the next day of sitting: to be a significant factor in tackling alco- That the following matters be referred to the hol abuse, especially among disadvan- Rural and Regional Affairs and Transport Refer- taged drinkers; ences Committee for inquiry and report by 31 (b) raises concern at the decision by Coles July 2010: supermarkets to place on sale $4 bottles of (a) the import risk analysis process for the wine in Alice Springs; proposed importation of Chinese apples (c) calls on the Minister for Health and Age- into Australia; and ing (Ms Roxon) to convene a meeting of (b) the protocols relating to the Austra- the large supermarket chains and public lia/United States of America cherry trade. health authorities to discuss responsible Senator Ludlam to move on the next day alcohol sales and promotions; and of sitting: (d) calls on the Rudd Government to intro- That the following matter be referred to the duce a minimum price for alcohol. Environment, Communications and the Arts Ref- Senator Siewert to move on the next day erences Committee for inquiry and report by of sitting: 20 October 2010: That the Senate— The adequacy of protections for the pri- (a) notes: vacy of Australians online, with regard to: (i) the statement made by seven Coalition (a) privacy protections and data collection on senators in their dissenting report in the social networking sites; Legal and Constitutional Affairs Legis- (b) data collection activities of private com- lation Committee’s report Wild Rivers panies; (Environmental Management) Bill (c) data collection activities of government 2010 [No. 2] that ‘the principle of agencies; and “free, prior and informed consent” is a (d) other related issues. fundamental human rights principal for Indigenous peoples’, and Senator Bob Brown to move on the next (ii) that the principle of ‘free, prior and day of sitting: informed consent’ is reflected in Arti- That the Senate— cles 19 and 32 of the United Nations (a) notes that: Declaration on the Rights of Indige- nous Peoples which was recently en- (i) the massive trade in complex financial dorsed by the Federal Government but derivatives was a major cause of the has yet to be implemented in Australian recent financial crisis and that govern- law; ments around the world are now seek- ing solutions to ensure that financial (b) affirms the view that ‘free, prior and in- markets price risk appropriately and formed consent’ is a fundamental human that unregulated financial trading is rights principle for Indigenous peoples; more visible to regulators, and (ii) the ‘Robin Hood’ tax (the tax), an idea (c) calls on all current and future Australian that is gaining traction in many western governments to ensure this principle is countries with growing public support, taken into account in developing, imple- imposes a small levy (0.05 per cent) on banks, hedge funds, foreign exchange

CHAMBER 4148 SENATE Wednesday, 23 June 2010

transactions, derivatives and share Tax Laws Amendment (Confidentiality of Tax- deals, payer Information) Bill 2009 (iii) the tax is estimated to raise approxi- Tax Laws Amendment (Foreign Source Income mately $400 billion dollars a year glob- Deferral) Bill (No. 1) 2010 ally and up to $18 billion in Australia, Trade Practices Amendment (Australian Con- and sumer Law) Bill (No. 2) 2010 (iv) the tax advocates proposes that 50 per Veterans’ Affairs and Other Legislation Amend- cent of the revenue is spent by gov- ment (Miscellaneous Measures) Bill 2009 ernments on the delivery of essential services and costs of bail-outs associ- I table statements of reasons justifying the ated with the global financial crisis need for these bills to be considered during with the remaining 50 per cent to be these sittings and seek leave to have the spent on overseas development aid and statements incorporated in Hansard. climate change adaptation; and Leave granted. (b) calls on the Government to support the The statements read as follows— adoption of this tax at the G20 meeting in Toronto, Canada, in June 2010. STATEMENT OF REASONS FOR INTRODUCTION AND PASSAGE IN THE Senator LUDWIG (Queensland— 2010 WINTER SITTINGS Manager of Government Business in the CRIMES AMENDMENT (ROYAL FLYING Senate) (4.03 pm)—I give notice that, on the DOCTOR SERVICE) BILL next day of sitting, I shall move: Purpose of the Bill That the provisions of paragraphs (5) to (8) of standing order 111 not apply to various bills, as The bill makes an urgent, minor amendment to set out in the list circulated in the chamber, allow- the offence of “causing narcotic substances to be ing them to be considered during this period of carried by post” in section 85W of the Crimes Act sittings. 1914 (Cth) to create an exception for: Agricultural and Veterinary Chemicals Code and the Royal Flying Doctor Ser- Amendment Bill 2010 vice (RFDS) and their officers, employees, agents and contractors, and Building Energy Efficiency Disclosure Bill 2010 Australia Post and bodies or persons prescribed in Crimes Amendment (Royal Flying Doctor Ser- Regulations (or their employees or others provid- vice) Bill 2010 ing services for or on their behalf), who arrange Farm Household Support Amendment (Ancillary for the supply of medicines to remote locations Benefits) Bill 2010 for the purposes of, and in accordance with, a Food Standards Australia New Zealand Amend- program prescribed in Regulations. ment Bill 2010 The bill will ensure that Australia Post can con- Higher Education Support Amendment (Indexa- tinue to deliver pharmaceuticals under the “RFDS tion) Bill 2010 Medical Chest Program”, enabling emergency treatment to be given to people in rural and re- Immigration (Education) Amendment Bill 2010 mote areas of Australia. It will also enable this Insurance Contracts Amendment Bill 2010 protection to be extended to other prescribed per- International Monetary Agreements Amendment sons or bodies who are supplying medicines to Bill (No. 1) 2010 remote communities under a prescribed program Superannuation Industry (Supervision) Amend- of a similar nature. ment Bill 2010 The bill will have retrospective effect to ensure Tax Laws Amendment (2010 Measures No. 3) that Australia Post, the RFDS and other pre- Bill 2010

CHAMBER Wednesday, 23 June 2010 SENATE 4149 scribed bodies and persons will not be prosecuted 10 per cent) as published by the Australian Statis- for earlier breaches of section 85W. tician. Reasons for Urgency The bill provides details of the formula and its There is an urgent need to allow the RFDS to components in indexation calculations to be used resume the supply of medicines through Australia from 2012. Post for the Medical Chest Program. Reasons for Urgency The RFDS and its agents currently supply and This bill needs to be passed by the end of the maintain approximately 2,600 Medical Chests Winter sittings to give effect to the Government’s across Australia. Since the discovery of this is- commitment for revised indexation, and to pro- sue, a high proportion of those in remote areas are vide funding certainty for the sector in planning depleted or carrying out of date stock. While the higher education delivery. The revised indexa- RFDS has adopted the practice of inviting people tion will be used to inform calculations for Addi- to travel to a RFDS base and collect resupplies, tional Estimates September 2010 for forward some locations are too remote for this. There are estimates from 2011-12 for the affected grants no viable alternatives to Australia Post for supply- and other amounts. ing medicines for the RFDS Medicine Chest Pro- (Circulated by the authority of the Minister for gram, as Australia Post is the only delivery pro- Education) vider servicing many remote locations. STATEMENT OF REASONS FOR The Government has also become aware that INTRODUCTION AND PASSAGE IN THE other organisations and programs may require 2010 WINTER SITTINGS coverage by an exception to the offence. An ur- FOOD STANDARDS AUSTRALIA NEW gent amendment will address the risk of emer- gency medicines not being available to treat seri- ZEALAND AMENDMENT BILL ous illness or injury in rural and remote areas of Purpose of the Bill Australia, both under the RFDS’ Medical Chest The bill amends the Food Standards Australia Program, and programs of a similar nature that New Zealand Act 1991 to achieve the implemen- may be prescribed in Regulations. tation of the Council of Australian Governments (Circulated by authority of the Minister for (COAG) agreed reform which calls for the recog- Home Affairs) nition, for domestically grown produce, by Food Standards Australia New Zealand (FSANZ) of the STATEMENT OF REASONS FOR Australian Pesticides and Veterinary Medicines INTRODUCTION AND PASSAGE IN THE Authority (APVMA) residue risk assessment and 2010 WINTER SITTINGS the promulgation of the resulting maximum resi- HIGHER EDUCATION SUPPORT due limits to the Food Standards Code. This in- AMENDMENT (INDEXATION) BILL cludes consequential amendments to the Agricul- Purpose of the Bill tural and Veterinary Chemicals (Administration) The bill specifies the method of indexation of Act 1992 and the Agricultural and Veterinary grants and other amounts under Part 5-6 of the Chemicals Code Act 1994. The bill also clarifies Higher Education Support Act 2003. The formula minor inconsistencies resulting from previous specified in the bill gives effect to the recommen- amendments and amends the provisions for an- dation for revised indexation made in the Review nual reporting by FSANZ. of Australian Higher Education and announced by Reasons for Urgency the Government in the 2009-10 Budget. Under This reform was agreed to by COAG on 3 July revised indexation arrangements the Safety Net 2008 for implementation by December 2008. Due Adjustment labour price index has been replaced to the need to resolve some complex issues re- by the Professional, Scientific and Technical Ser- garding implementation of this reform, its com- vices labour price index (discounted by pletion is now overdue. It should be considered urgent as additional delay will create disadvan-

CHAMBER 4150 SENATE Wednesday, 23 June 2010 tage for primary producers, who may be in the Introduction and passage of the Bill will reduce position of lawfully using a chemical product on the risks for superannuation funds investing in their crops or livestock, only to find they are un- limited recourse borrowing arrangements. Fur- able to legally sell the produce (plant and animal ther, it will limit the opportunity for providers to products) because there is no corresponding use the delay between introduction and enactment maximum residue limit in the Food Standards of the Bill to develop products that exploit the Code. Every day that the reform is delayed comes issues the Bill is to address. at a financial cost to primary producers. The Government considers the amendments con- Introduction and passage of the bill in the 2010 tained in this Bill require urgent enactment to Winter sittings is necessary to meet the Com- protect superannuation fund members from ex- monwealth’s obligations under the National Part- cessively risky products and to provide certainty nership Agreement to Deliver a Seamless Na- for issuers of limited recourse borrowing ar- tional Economy in relation to implementing this rangements as to the circumstances under which deregulation priority. On 2 July 2009 COAG they can offer these products. agreed that, subject to Commonwealth Govern- (Circulated by authority of the Minister for Fi- ment priorities, the required legislative amend- nancial Services, Superannuation and Corporate ments would be made by the Autumn of 2010. Law) (Circulated by authority of the Minister for STATEMENT OF REASONS FOR Health and Ageing) INTRODUCTION AND PASSAGE IN THE STATEMENT OF REASONS FOR 2010 Winter SITTINGS INTRODUCTION AND PASSAGE IN THE TRADE PRACTICES AMENDMENT 2010 WINTER SITTINGS (AUSTRALIAN CONSUMER LAW) BILL SUPERANNUATION INDUSTRY (NO. 2) 2010 (SUPERVISION) AMENDMENT BILL 2010 Purpose of the Bill Purpose of the Bill The bill completes the Commonwealth’s imple- The purpose of this Bill is to amend the Superan- mentation of the Australian Consumer Law and nuation Industry (Supervision) Act 1993 (the SIS makes related amendments. Act) to address prudential risks associated with Reasons for Urgency superannuation fund investment in limited re- The COAG National Partnership Agreement to course borrowing arrangements. Deliver a Seamless National Economy (NPA) Reasons for Urgency requires the Commonwealth and each State and The market for products allowing for superannua- Territory to enact legislation to create the ACL by tion fund investment in limited recourse borrow- December 2010. ing arrangements has evolved rapidly since Through the Ministerial Council on Consumer amendments to the SIS Act in 2007 permitted Affairs, States and Territories have advised that these products. Uncertainty in the interpretation they require the Commonwealth legislation to be of the law is allowing product issuers to develop passed prior to passage of legislation through products based on their interpretation, leading to their parliaments. Passage of the Commonwealth products that impose undesirable conditions that legislation as soon as possible will give the States expose fund assets to excessive risk. and Territories sufficient time to achieve passage Since the legislation was introduced in 2007, in- of their applicable legislation prior to December dustry stakeholders have been expecting legisla- 2010. The States and Territories have advised tive amendments to clarify several points of am- that if the bill is not passed in the Winter sittings biguity existing in this area. Industry stake- they cannot meet their obligation made under the holders have reiterated this need through the con- NPA to pass their laws by 1 January 2011. fidential consultation process. (Circulated by authority of the Minister for Competition Policy and Consumer Affairs)

CHAMBER Wednesday, 23 June 2010 SENATE 4151

STATEMENT OF REASONS FOR (around A$7.5 billion) under the current appro- INTRODUCTION AND PASSAGE IN THE priation in the IMA Act. 2010 WINTER SITTINGS G20 Leaders also committed to a more flexible INTERNATIONAL MONETARY NAB. This will better support the Fund in pro- AGREEMENTS AMENDMENT BILL viding substantial financing to its members at (NO.1) 2010 short notice, especially during times of crisis. Purpose of the Bill Flexibility will be achieved by amending the terms of the arrangement to implement a more The International Monetary Agreements Act 1947 streamlined procedure to activate the NAB. The (IMA Act) established Australia’s membership of terms of the current NAB state that the NAB may the International Monetary Fund (IMF) and Inter- only be activated on a loan-by-loan basis. The national Bank for Reconstruction and Develop- proposed changes will modify the NAB to allow a ment (the World Bank) and makes provisions general activation for a defined period subject to a which allow Australia to meet obligations that maximum level of commitments. may arise by virtue of our membership of these institutions. The current New Arrangements to Reasons for Urgency Borrow (NAB) Decision, dated 27 January 1997, The expanded and more flexible New Arrange- forms Schedule 4 to the Act. This bill proposes an ments to Borrow is a part of the G20 Leaders’ amendment to the IMA Act, including Schedule 4 global plan for recovery and reform agreed on 2 of the Act, to reflect amendments to the NAB April 2009 in London. Decision. Following the conclusion of a process of interna- The NAB is a voluntary set of credit arrange- tional negotiations, the proposed amendments to ments between the IMF and a number of its expand and make more flexible the current NAB members, including Australia. The NAB can be Decision were adopted by the IMF Executive activated by participants in order to supplement Board on 12 April 2010. For the amended NAB the IMF’s lending resources when they consider it to enter into effect, its participants will be re- necessary. The NAB acts as a backstop arrange- quired to accept the amendments to the NAB ment where the IMF’s usual quota processes are Decision; some participants will be required to insufficient to meet the needs of borrowing mem- implement the amendments through domestic ber countries. In the event of the IMF drawing on legislation change, including Australia. the NAB, the funds would be repaid to Australia Urgent implementation of NAB is prudent, par- in full, with interest. ticularly in light of the tentative global recovery, The proposed amendments to the NAB will allow as it will support confidence in the markets that Australia to contribute to implementation of a the IMF has a credible backstop to its quota re- G20 Leaders’ commitment, which will ensure that sources, and is able to support its members should the IMF has the resources necessary to credibly there be a need. support its members, thereby promoting global (Circulated by authority of the Treasurer) confidence and economic recovery. STATEMENT OF REASONS FOR PASSAGE On 2 April 2009, G20 Leaders committed to an IN THE 2010 WINTER SITTINGS expanded NAB, increased to up to US$550 billion. There was subsequently strong VETERANS’ AFFAIRS AND OTHER interest from new potential participants, including LEGISLATION AMENDMENT those outside the G20, and on 24 November 2009 (MISCELLANEOUS MEASURES) BILL 2009 the IMF announced that participants had agreed Purpose of the Bill to expand the NAB to up to US$600 billion. The The bill will give effect to a number of measures amendments to the Schedule would authorise the that benefit the veteran community and enhance proposed increase in Australia’s existing line of the operation of the Repatriation pension system credit under the NAB from SDR 801 million including: (around A$1.4 billion) to SDR 4370 million

CHAMBER 4152 SENATE Wednesday, 23 June 2010 extend from three to twelve months, the time amend the definition of a Managed Investment limit for the lodgement of claims for certain travel Trust for withholding tax purposes; expenses; provide a power for the heads of certain intelli- ensure that the provisions for claims for compen- gence agencies to declare particular transactions sation under the Veterans’ Entitlements Act 1986 as being exempt from taxation in relation to par- for injuries or diseases that have been aggravated ticular entities; by Defence service under the Military Rehabilita- freeze indexation of superannuation co- tion and Compensation Act 2004 operate as in- contribution income thresholds for the 2010-11 tended; and 2011-12 income years; and ensure that the provisions for eligibility for war permanently maintain the co-contribution match- widow or widower pension in respect of a veteran ing rate and maximum co-contribution payable at who was a prisoner of war, operate as intended; 100 per cent and $1,000 respectively. enable a Victoria Cross recipient to receive a Vic- Reasons for Urgency toria Cross allowance under the Veterans’ Enti- The Bill contains two measures announced in the tlements Act 1986 and from a foreign country; 2009-10 Budget and two in the 2010-2011 enable Defence Service Homes Insurance to pay a Budget. Any delays in delivery will create uncer- State Emergency Service levy to the New South tainty. Wales State Government; The thin capitalisation measure commences from extend nuclear test participant eligibility to cer- 1 January 2009. It is urgent as the current transi- tain Australian Protective Service officers for the tional provisions cease to operate for some tax- period 20 October 1984 to 30 June 1988; and payers from that date. enhance the operations of the Specialist Medical The special disability trust measure commences Review Council. from 1 July 2009. Reasons for Urgency The Managed Investment Trust measure com- The measures in the bill benefit the veteran com- mences from 1 July 2010. munity and enhance the operation of the Repatria- The measure to allow the heads of certain intelli- tion pension system. Passage of the bill in the gence agencies to declare particular transactions Winter 2010 sittings will enable the benefit of as being exempt from taxation in relation to par- these measures to be delivered to the veteran ticular entities needs to be implemented expedi- community. tiously avoid compromising authorised opera- (Circulated by authority of the Minister for Vet- tional activities. erans’ Affairs) The superannuation co-contribution measures STATEMENT OF REASONS FOR need to be enacted by 1 July 2010 to provide cer- INTRODUCTION AND PASSAGE IN THE tainty to individuals who are planning to make 2010 WINTER SITTINGS personal superannuation contributions in the TAX LAWS AMENDMENT (2010 2010-11 income year in order to receive a Gov- MEASURES NO. 3) BILL 2010 ernment co-contribution. If the Bill is not passed in the Winter sittings, indexation of the income Purpose of the Bill thresholds would need to be frozen with retro- This Bill will: spective application. Retrospective application clarify how treasury shares, the previous insur- would lead to individuals who have made contri- ance asset known as excess market value over net butions in the expectation of receiving a co- assets and capitalised software costs will be rec- contribution either not receiving a co-contribution ognised under the thin capitalisation provision; or receiving a reduced level of co-contribution. change the taxation of unexpended income for (Circulated by authority of the Treasurer) special disability trusts;

CHAMBER Wednesday, 23 June 2010 SENATE 4153

STATEMENT OF REASONS FOR INSURANCE CONTRACTS AMENDMENT INTRODUCTION AND PASSAGE IN THE BILL 2010 2010 WINTER SITTINGS Purpose of the Bill TAX LAWS AMENDMENT The Bill gives effect to a number of recommenda- (CONFIDENTIALITY OF TAXPAYER tions of a Review Panel appointed to review the INFORMATION) BILL 2010 Insurance Contracts Act 1984. The changes are Purpose of the Bill largely technical in nature and respond to market This Bill will amend the secrecy and disclosure developments and judicial decisions since its en- provisions applying to taxation information that actment. The Bill will streamline requirements are currently spread over many taxation law Acts. and address anomalies in the regulatory frame- Over the years numerous amendments have re- work for the benefit of insurers and consumers. sulted in unclear and inconsistent rules for the The measures have been subject to stakeholder protection of taxpayer information, as well as consultation and in some areas the Review increased privacy risks. The Bill will consolidate Panel’s recommendations have been modified to and standardise these various enactments into a take account of issues raised in consultations. single new framework in Schedule 1 to the Taxa- Reasons for Urgency tion Administration Act 1953. The improvements in the Bill will streamline The new framework is designed to provide clarity processes and correct anomalies that will benefit and certainty to taxpayers, the Australian Taxation insurers, insureds and the general public. In par- Office and users of taxpayer information and to ticular, it will remove legal impediments that provide guiding principles to assist in framing would otherwise exist to insurers dealing with any future additions. their customers on-line. This reform has been The key principle of the new framework is the long-awaited and is linked to the Electronic protection of taxpayer information. Disclosures Transactions Regulations Amendment (No. 2) of information are, however, permitted in in- 2010. That regulation has already been made but stances where privacy concerns are outweighed has a commencement dependent upon com- by the public benefit of those disclosures. mencement of Schedule 2 of the Bill. Further This measure was announced by the then Assis- delays will result in loss of efficiencies that would tant Treasurer and Minister for Competition Pol- be generated through commencement of the Bill icy and Consumer Affairs on 13 March 2009. and associated regulations. Reasons for Urgency (Circulated by authority of the Minister for Fi- nancial Services, Superannuation and Corporate Passage of the Bill in these sittings will give tax- Law) payers the benefit of the new rules for protection of taxpayer information. With one exception, STATEMENT OF REASONS FOR these amendments apply to disclosures of pro- INTRODUCTION AND PASSAGE tected information made on or after the day after IN THE WINTER 2010 SITTINGS Royal Assent. The amendment facilitating disclo- FARM HOUSEHOLD SUPPORT sures of protected information for purposes relat- AMENDMENT (ANCILLARY BENEFITS) ing to unexplained wealth orders will commence BILL 2010 the later of the day on which the Bill receives Royal Assent or the commencement of Part 1 of Purpose of the Bill Schedule 1 to the Crimes Legislation Amendment The bill amends legislation to guarantee access to (Serious and Organised Crime) Act 2009. certain ancillary benefits such as health care cards and youth allowances for beneficiaries of a new (Circulated by authority of the Treasurer) payment (the Farm Family Support (FFS) pay- STATEMENT OF REASONS FOR ment) in a forthcoming Western Australian (WA) INTRODUCTION AND PASSAGE IN THE pilot of drought reform measures due to be con- 2010 WINTER SITTINGS ducted in 2010-11.

CHAMBER 4154 SENATE Wednesday, 23 June 2010

Reasons for Urgency language tuition is delivered under the Act. The The proposed pilot is due to commence on 1 July new AMEP Business Model provides a greater 2010. Legislation to support the pilot requires focus on client outcomes with improved program urgent passage through parliament during the design, as well as improved program delivery and 2010 Winter sittings to ensure the measure can be administration. implemented from this date. If the legislation is Reasons for Urgency not passed in the Winter sittings, the ancillary An exemption from Senate Standing Order 111 is benefits cannot be guaranteed for the pilot pro- sought for this Bill to allow it to be introduced in gram participants. There is likely to be concern if the Senate in this sitting period. The exemption is some farmers receiving the FFS payments in the necessary as the Bill was introduced in the House pilot are not eligible for ancillary benefits. of Representatives in the Autumn sitting period (Circulated by authority of the Minister for Agri- and, if passed by that House this sitting period, it culture, Fisheries and Forestry) will not be received by the Senate before the Sen- STATEMENT OF REASONS FOR ate cut off date. INTRODUCTION AND PASSAGE IN THE The Bill requires introduction and passage 2010 AUTUMN SITTINGS through the Senate and the TAX LAWS AMENDMENT (Foreign Source House of Representatives in this sitting period to Income DEFERRAL) BILL(No. 1) 2010 ensure that the Bill can commence on 1 January 2011, which is the commencement date Purpose of the Bill provided in clause 2 of the Bill. This Bill will repeal the foreign investment fund The commencement provision in the Bill is (FIF) and deemed present entitlement (DPE) pro- 1 January 2011 to align with the proposed com- visions and ensure certain provisions that interact mencement of the new contracts with service with announced reforms to the foreign source providers which will incorporate the new AMEP income attribution rules operate as intended. Business Model. This is to ensure that the new Reasons for Urgency AMEP Business Model will be implemented in its It is preferable that this Bill be passed in the Win- entirety on the same day. The Department of ter sittings as the amendments are to apply in Immigration and Citizenship is currently under- respect of the 2010-11 income year. This would taking a tender process in relation to these new allow taxpayers and their advisers sufficient time contracts to enable the alignment of the com- to prepare for the changes effected by the mencement of the legislation amendments and amendments. It would also allow the Australian proposed new contracts. Taxation Office to put the necessary systems and If the Bill is not dealt with before 1 January 2011, administrative support in place. aspects of the new AMEP Business Model will be (Circulated by authority of the Treasurer) unable to be implemented in line with the new STATEMENT OF REASONS FOR contracts, including key support measures for INTRODUCTION AND PASSAGE IN THE clients. These key support measures include the 2010 WINTER SITTINGS extension of the time frame for clients to register with an approved English course provider from IMMIGRATION (EDUCATION) three months to six months. AMENDMENT BILL 2010 (Circulated by authority of the Minister for Im- Purpose of the Bill migration and Citizenship) The purpose of the Bill is to amend the Immigra- STATEMENT OF REASONS FOR tion (Education) Act 1971 (the Act) to implement INTRODUCTION AND PASSAGE IN THE the new Adult Migrant English Program (AMEP) 2010 WINTER SITTINGS Business Model, which forms part of the Gov- ernment’s broader settlement framework. The AGRICULTURAL AND VETERINARY AMEP is the program through which English CHEMICALS CODE AMENDMENT BILL 2010

CHAMBER Wednesday, 23 June 2010 SENATE 4155

Purpose of the Bill STATEMENT OF REASONS The Agricultural and Veterinary Chemicals Code BUILDING ENERGY EFFICIENCY Amendment Bill 2010 (the Bill) amends the Agri- DISCLOSURE BILL 2010 cultural and Veterinary Chemicals Code Act 1994 Purpose of the Bill (Agvet Code). This bill will establish a new national scheme for The Bill seeks to improve the registration proc- the disclosure of commercial office building en- esses of the Australian Pesticides and Veterinary ergy efficiency at the point of sale, lease and sub- Medicines Authority (APVMA) in several ways lease. The bill establishes the specific circum- including: stances under which disclosure must occur as allowing applicants to follow a simplified appli- well as establishing a framework for building cation process to effectively notify the APVMA owners and lessors to obtain and disclose building of a limited range of defined, low risk, minor ratings and tenancy lighting information. variations to approvals or registrations, Reasons for Urgency removing a burdensome requirement for regis- Passage of the bill during the Winter 2010 sittings trants to notify the APVMA in writing of the au- is required to ensure the commercial disclosure thorisation of approved persons, scheme can fully commence in 2010 as per the limiting the APVMA’s label assessment role to timeframe agreed to by the Council of Australian ensuring chemical products display ‘adequate Governments in the National Strategy on Energy instructions’ for the safe handling and effective Efficiency (NSEE). use of a product, To meet this timeframe, the bill needs to be en- allowing trade concerns to trigger a review of a acted by 1 July 2010 so that the necessary admin- product label, and istrative arrangements can be established prior to allowing the disclosure of certain information the disclosure obligations commencing towards where a minor use or emergency use permit has the end of 2010. been sought. It has been widely communicated to industry that These reforms will not compromise the overarch- the scheme will commence in second half of ing importance the government attaches to the 2010, as per the NSEE. Industry has embraced protection of human health and the environment. this timeframe and is already making preparations for the scheme’s introduction. A delay in imple- Reasons for Urgency menting the scheme in accordance with this time- The bill includes reforms that deliver on Council frame is therefore likely to attract some criticism of Australian Governments (COAG) early harvest from industry, particularly those that have in- reforms. Regulation of chemicals and plastics is vested significant resources into preparing for the one of 27 deregulation priority reforms agreed by scheme’s introduction. COAG as part of the National Partnership (Circulated by authority of the Minister for Cli- Agreement to Deliver a Seamless National Econ- mate Change and Energy Efficiency) omy. Under the revised National Partnership Im- plementation Plan agreed by COAG in February Withdrawal and April 2010, all remaining early harvest re- Senator XENOPHON (South Australia) forms are scheduled for completion by June 2010. (4.03 pm)—Pursuant to notice of intention The bill also delivers on some early reforms from given yesterday, I withdraw business of the ongoing work under a Better Regulation Ministe- Senate notice of motion No. 2 standing in my rial Partnership. name for today. (Circulated by authority of the Minister for Agri- culture, Fisheries and Forestry)

CHAMBER 4156 SENATE Wednesday, 23 June 2010

COMMITTEES • International Monetary Agreements Selection of Bills Committee Amendment Bill (No. 1) 2010 • Report Radiocommunications Amendment Bill 2010 Senator O’BRIEN (Tasmania) (4.00 • Service and Execution of Process pm)—I present the 9th report of 2010 of the Amendment (Interstate Fine Enforce- Selection of Bills Committee. ment) Bill 2010 Ordered that the report be adopted. • Tradex Scheme Amendment Bill 2010 Senator O’BRIEN—I seek leave to have • Water Efficiency Labelling and Stan- the report incorporated in Hansard. dards Amendment Bill 2010. Leave granted. The committee recommends accordingly. The report read as follows— (4) The committee considered the Preventing the Misuse of Government Advertising Bill 2010 SELECTION OF BILLS COMMITTEE and noted that the Senate had agreed to refer REPORT NO. 9 OF 2010 the provisions of the bill to the Finance and (1) The committee met in private session on Public Administration Legislation Commit- Tuesday, 22 June 2010 at 4.48 pm. tee for inquiry and report. (2) The committee resolved to recommend— (5) The committee deferred consideration of the That— Commonwealth Commissioner for Children (a) the Banking Amendment (Delivering and Young People Bill 2010 to its next meet- Essential Financial Services for the ing. Community) Bill 2010 be referred im- (Kerry O’Brien) mediately to the Economics Legislation Chair Committee for inquiry and report by 2 September 2010 (see appendices 1 and 23 June 2010 2 for statements of reasons for refer- ————— ral); APPENDIX 1 (b) the provisions of the Civil Dispute SELECTION OF BILLS COMMITTEE Resolution Bill 2010 be referred imme- Proposal to refer a bill to a committee diately to the Legal and Constitutional Affairs Legislation Committee for in- Name of bill: quiry and report by 30 July 2010 (see Banking Amendment (Delivering Essential Fi- appendices 3 and 4 for statements of nancial Services for the Community) Bill 2010 reasons for referral); and Reasons for referral/principal issues for con- (c) the provisions of the Corporations sideration: Amendment (Sons of Gwalia) Bill 2010 To consider the impact of this legislation on con- be referred immediately to the Legal sumers and their ability to access suitable finan- and Constitutional Affairs Legislation cial services Committee for inquiry and report by 24 To consider the impact of this Bill on banking August 2010 (see appendix 5 for a operations and competition in the financial ser- statement of reasons for referral). vices sector (3) The committee resolved to recommend— Possible submissions or evidence from: That the following bills not be referred to Abacus Australian Mutuals committees: Australian Bankers Association • Health Insurance Amendment (Profes- sional Services Review) Bill 2010 Australian Financial Markets Association Choice

CHAMBER Wednesday, 23 June 2010 SENATE 4157

Consumer Action Law Centre APPENDIX 3 Committee to which bill is to be referred: SELECTION OF BILLS COMMITTEE Senate Standing Committee on Economics Proposal to refer a bill to a committee Possible hearing date(s): Name of bill: To be determined by the Committee Civil Dispute Resolution Bill 2010 Possible reporting date: Reasons for referral/principal issues for con- 2 September 2010 sideration: Stephen Parry • Whether the obligation to “assist” in clause 9 of the Bill creates potential conflicts in the (signed) lawyer/client relationship, particularly in cir- Whip / Selection of Bills Committee member cumstances when a client does not accept ————— advice to engage in “genuine steps” and is- APPENDIX 2 sues contrary instructions; and • SELECTION OF BILLS COMMITTEE Whether the provisions in clause 12 amount to an abrogation of settlement privilege and Proposal to refer a bill to a committee the extent to which additional safeguards Name of bill: may be required. Banking Amendment (Delivering Essential Fi- Possible submissions or evidence from: nancial Services for the Community) Bill 2010 Attorney-General’s Department, Law Council of Reasons for referral/principal issues for con- Australia. sideration: Committee to which bill is to be referred: Possible submissions or evidence from: Legal and Constitutional Affairs Legislation Australia Institute (David Richardson) Possible hearing date(s): Brotherhood of St Laurence (Gerard Brody) Possible reporting date: Finance Sector Union 30 July 2010 Consumer Credit Legal Centre Stephen Parry Good Shepherd Youth and Family Service (signed) Financial and Consumer Rights Centre (Richard Whip/ Selection of Bills Committee member Foster) ————— Australian Council of Social Services APPENDIX 4 Committee to which bill is to be referred: SELECTION OF BILLS COMMITTEE Senate Economics Legislation Committee Proposal to refer a bill to a committee Possible hearing date(s): Name of bill: Possible reporting date: Civil Dispute Resolution Bill 2010 2 September Reasons for referral/principal issues for con- Rachel Siewert sideration: (signed) • Need to assess the extent to which the new Whip / Selection of Bills Committee member obligation requiring a ‘genuine steps state- ————— ment’ to be filed in Federal Courts, which the Magistrate may take into account when awarding costs, will deter pursuit of justice or facilitate efficiency

CHAMBER 4158 SENATE Wednesday, 23 June 2010

• Need to assess the extent to which this new • To consider the legal implications of subor- obligation will have an impact on the already dinating compensation claims behind unse- chronically under-funded legal support ser- cured creditors in the event of a company vices -given that the preparation of this winding up, and where the party making ‘genuine steps statement’ adds an additional those claims is also a shareholder; step to the legal process, particularly onerous • To consider the broader impact of the legisla- to people from non-English speaking back- tion on shareholders and creditors during the grounds. winding up process. Possible submissions or evidence from: Possible submissions or evidence from: Australian Law Council • Law Council of Australia, Federation of Community Legal Services • Chartered Secretaries of Australia, Liberty Victoria • Australian Financial Markets Association, Human Rights Law Resource Centre Ltd • Insolvency Practitioners of Australia, Public Interest Law Clearing House (VIC) Inc • Law Institute of Victoria, Committee to which bill is to be referred: • Australian Institute of Company Directors Legal and Constitutional Committee to which bill is to be referred: Possible hearing date(s): Senate Standing Committee on Legal and Consti- August tutional Affairs Possible reporting date: Possible hearing date(s): 21 September 2010 To be determined by the Committee Rachel Siewert Possible reporting date: (signed) 24 September 2010 Whip/ Selection of Bills Committee member Stephen Parry ————— (signed) APPENDIX 5 Whip/ Selection of Bills Committee member SELECTION OF BILLS COMMITTEE BUSINESS Proposal to refer a bill to a committee Consideration of Legislation Name of bill: Variation Corporations Amendment (Sons of Gwalia) Bill Senator STEPHENS (New South 2010 Wales—Parliamentary Secretary for Social Reasons for referral/principal issues for con- Inclusion and Parliamentary Secretary for the sideration: Voluntary Sector) (4.04 pm)—I move: Despite this Bill already being considered by the That the Electoral and Referendum Amend- Selection of Bills Committee, there has been a ment (Close of Rolls and Other Measures) Bill technical legal point raised regarding the broader (No. 2) 2010 be listed on the Notice Paper as a legal implications of subordinating compensation separate order of the day for the next day of sit- claims where the claimant is also a shareholder. ting. As a result, the additional information raised means that the legislation would benefit from the Question agreed to. senate inquiry process and the opportunity to gather wider legal opinion. The principal issues for consideration are:

CHAMBER Wednesday, 23 June 2010 SENATE 4159

NOTICES ment that the President of Fair Work Aus- Postponement tralia attend to answer questions on all oc- casions when the Education, Employment The following items of business were and Workplace Relations Legislation postponed: Committee meets to consider estimates in Business of the Senate notice of motion no. relation to Fair Work Australia, the Senate 3 standing in the name of Senator Ryan for expects that the President will appear today, proposing a reference to the Finance should his or her presence be requested by and Public Administration References the Education, Employment and Work- Committee, postponed till 24 June 2010. place Relations Legislation Committee in the future. General business notice of motion no. 694 standing in the name of the Leader of the Question put. Family First Party (Senator Fielding) for The Senate divided. [4.10 pm] today, proposing the introduction of the Protection of Personal Information Bill (The President—Senator the Hon. JJ 2010, postponed till 24 August 2010. Hogg) General business notice of motion no. 800 Ayes………… 32 standing in the name of the Leader of the Noes………… 34 Australian Greens (Senator Bob Brown) Majority……… 2 for 24 June 2010, relating to the logging industry in Tasmania and Victoria, post- AYES poned till 26 August 2010. Arbib, M.V. Bilyk, C.L. EDUCATION, EMPLOYMENT AND Bishop, T.M. Brown, B.J. WORKPLACE RELATIONS Brown, C.L. Cameron, D.N. LEGISLATION COMMITTEE: Collins, J. Conroy, S.M. ATTENDANCE OF WITNESS Crossin, P.M. Farrell, D.E. Feeney, D. Forshaw, M.G. Senator MARSHALL (Victoria) (4.06 Furner, M.L. Hanson-Young, S.C. pm)—I move: Hogg, J.J. Hurley, A. That the Senate— Hutchins, S.P. Ludlam, S. Lundy, K.A. Marshall, G. (a) notes the opening statement made by the McEwen, A. * McLucas, J.E. President of Fair Work Australia on 1 June Milne, C. Moore, C. 2010 during his appearance at an esti- O’Brien, K.W.K. Polley, H. mates hearing of the Education, Employ- Pratt, L.C. Siewert, R. ment and Workplace Relations Legislation Stephens, U. Sterle, G. Committee; Wong, P. Wortley, D. (b) notes, in particular, the request made in NOES that statement that the Senate reconsider its order of 28 October 2009 which re- Abetz, E. Adams, J. Back, C.J. Barnett, G. quires that, on each occasion on which the Bernardi, C. Birmingham, S. Education, Employment and Workplace Boswell, R.L.D. Boyce, S. Relations Legislation Committee meets to Brandis, G.H. Bushby, D.C. consider estimates in relation to Fair Work Cash, M.C. Colbeck, R. Australia, the President of Fair Work Aus- Coonan, H.L. Cormann, M.H.P. tralia appear before the committee to an- Eggleston, A. Ferguson, A.B. swer questions; and Fielding, S. Fifield, M.P. (c) modifies the order of 28 October 2009 by Fisher, M.J. Heffernan, W. declaring that, while relaxing the require- Joyce, B. Kroger, H.

CHAMBER 4160 SENATE Wednesday, 23 June 2010

Macdonald, I. Mason, B.J. gally or to stop building immediately McGauran, J.J.J. Minchin, N.H. unless QBE Insurance provides insur- Parry, S. Payne, M.A. ance or there is government interven- Ronaldson, M. Ryan, S.M. tion within the next 8 days, and Scullion, N.G. Troeth, J.M. (iv) small building firms will be dispropor- Trood, R.B. Williams, J.R. * tionately affected as they will not be as PAIRS attractive to a virtual monopoly pro- Faulkner, J.P. Johnston, D. vider as large building firms; and Ludwig, J.W. Humphries, G. (b) calls on the Federal Government to act Evans, C.V. Nash, F. immediately with their state government Carr, K.J. Xenophon, N. counterparts to remove the mandatory re- Sherry, N.J. Fierravanti-Wells, C. quirement for this product before this im- * denotes teller pending crisis in the building industry oc- Question negatived. curs. COMMITTEES Question put. Fuel and Energy Committee The Senate divided. [4.18 pm] Resolution of Appointment (The Deputy President—Senator the Hon. Senator CORMANN (Western Australia) AB Ferguson) (4.13 pm)—I move: Ayes………… 6 That the resolution of the Senate of 25 June Noes………… 32 2008, as amended, appointing the Select Commit- Majority……… 26 tee on Fuel and Energy, be amended to omit “30 June 2010”, substitute “30 August 2010”. AYES Question agreed to. Brown, B.J. Fielding, S. LAST RESORT BUILDERS' HOME Hanson-Young, S.C. Ludlam, S. WARRANTY INSURANCE Milne, C. Siewert, R. * NOES Senator MILNE (Tasmania) (4.13 pm)— I move: Abetz, E. Back, C.J. Bilyk, C.L. Boswell, R.L.D. That the Senate— Brown, C.L. Cameron, D.N. (a) notes that: Cash, M.C. Collins, J. (i) a crisis is looming in the building in- Cormann, M.H.P. Crossin, P.M. dustry with Vero exiting the last resort Eggleston, A. Farrell, D.E. Feeney, D. Ferguson, A.B. builders’ home warranty insurance Forshaw, M.G. Furner, M.L. market in New South Wales by 30 Sep- Hurley, A. Hutchins, S.P. tember 2010 and in all other states by Ludwig, J.W. Lundy, K.A. 30 June 2010 leaving only two provid- Macdonald, I. Marshall, G. ers in the market, QBE Insurance and McEwen, A. McGauran, J.J.J. Calliden, McLucas, J.E. Moore, C. (ii) this insurance product is mandatory by Parry, S. Polley, H. law in all states except Tasmania and Stephens, U. Troeth, J.M. Queensland, Williams, J.R. * Wortley, D. (iii) thousands of Australian builders will be * denotes teller left without this insurance product on Question negatived. 30 June and 30 September 2010, re- spectively, requiring them to build ille-

CHAMBER Wednesday, 23 June 2010 SENATE 4161

COMMITTEES Parliamentary Committees and Related Matters Legal and Constitutional Affairs for officials considering participating in a parlia- mentary committee whether in a personal capac- References Committee ity or otherwise. Reference Question agreed to. Senator PARRY (Tasmania—Manager of Rural and Regional Affairs and Transport Opposition Business in the Senate) (4.20 References Committee pm)—At the request of Senator Barnett, I move: Reference That the following matter be referred to the Senator PARRY (Tasmania—Manager of Legal and Constitutional Affairs References Opposition Business in the Senate) (4.21 Committee for inquiry and report by pm)—by leave—At the request of Senator 30 November 2010: Nash and Senator Colbeck, I move: The past and present practices of donor con- That the following matters be referred to the ception in Australia, with particular reference to: Rural and Regional Affairs and Transport Refer- (a) donor conception regulation and legislation ences Committee for inquiry and report by 22 across federal and state jurisdictions; November 2010: (b) the conduct of clinics and medical services, (a) the adequacy of current biosecurity and including: quarantine arrangements, including resourc- ing; (i) payments for donors, (b) projected demand and resourcing require- (ii) management of data relating to donor ments; conception, and (c) progress toward achievement of reform of (iii) provision of appropriate counselling and Australian Quarantine and Inspection Service support services; export fees and charges; (c) the number of offspring born from each do- (d) progress in implementation of the ‘Beale nor with reference to the risk of consanguine Review’ recommendations and their place in relationships; and meeting projected biosecurity demand and (d) the rights of donor conceived individuals. resourcing; and Question agreed to. (e) any related matters. Foreign Affairs, Defence and Trade Senator STEPHENS (New South References Committee Wales—Parliamentary Secretary for Social Reference Inclusion and Parliamentary Secretary for the Senator PARRY (Tasmania—Manager of Voluntary Sector) (4.22 pm)—I seek leave to Opposition Business in the Senate) (4.21 make a short statement in relation to this mo- pm)—At the request of Senator Trood, I tion. move: The DEPUTY PRESIDENT—Leave is That, having regard to the report of the Foreign granted for two minutes. Affairs, Defence and Trade References Commit- Senator STEPHENS—The government tee on parliamentary privilege and a possible in- is committed to a strong biosecurity and terference in the work of the committee, the fol- quarantine system, which helps to protect our lowing matter be referred to the Committee of agricultural industries, the environment and Privileges for inquiry and report by 2 September 2010: human health, and particularly to Australia’s rural and regional communities. Consistent The adequacy of advice contained in the Gov- with the recommendations of the Beale re- ernment Guidelines for Official Witnesses before

CHAMBER 4162 SENATE Wednesday, 23 June 2010 view, the government is committed to im- Rural and Regional Affairs and Transport plementing a conservative risk based, sci- References Committee ence based approach to maintaining Austra- Extension of Time lia’s biosecurity systems. Senator PARRY (Tasmania—Manager of When we came to government we inher- Opposition Business in the Senate) (4.24 ited a quarantine system which had been ne- pm)—by leave—At the request of the Chair glected and was not as efficient as it should of the Rural and Regional Affairs and Trans- have been. For example, the system included port References Committee, Senator Nash, I 75 separate information technology services move: which did not actually speak to each other. That the time for the presentation of the report The equine influenza outbreak, which the of the Rural and Regional Affairs and Transport National Party said could never happen in References Committee on the management of Australia, cost the horse industry up to $1 aircraft noise by Airservices Australia be ex- billion and the taxpayers up to $400 million. tended to 24 June 2010. The government recognised the stress our Question agreed to. quarantine system was under when we came TIMOR SEA OIL SPILL to office and the Beale review, which we Order commissioned, recommended sweeping Senator SIEWERT (Western Australia) changes to Australia’s quarantine and biose- (4.25 pm)—I move: curity arrangements. The government agreed in principle to all 84 of the Beale recommen- That there be laid on the table by the Minister dations. So far, we have already appointed an representing the Minister for Resources and En- ergy, by Thursday, 24 June 2010, the report of the economist to the Eminent Scientists Group; Commission of Inquiry into the Montara oil spill. we have appointed an interim Inspector- Senator STEPHENS (New South General of Biosecurity, Dr Kevin Dunne; we Wales—Parliamentary Secretary for Social have consolidated the department’s functions Inclusion and Parliamentary Secretary for the into a single biosecurity services group; we Voluntary Sector) (4.25 pm)—I seek leave to have appointed Andrew Inglis to head up the make a short statement in relation to that government’s new Biosecurity Council; and motion. we have committed $14.7 million in support of scoping works on new biosecurity facili- The DEPUTY PRESIDENT—Leave is ties and the initial work to upgrade the sepa- granted for two minutes. rate IT systems. Senator STEPHENS—The government The biosecurity services staff in the De- received the report of the commission of in- partment of Agriculture, Fisheries and For- quiry into the Montara oil spill on Friday, 18 estry continue with that huge task that they June 2010. The government is considering have ahead of them and anything that dis- the report and will act promptly and appro- tracts from that vital work will only result in priately on the recommendations. However, further delay. For that reason, the govern- before releasing the report publicly the gov- ment does not support the motion. ernment has sought legal advice to ensure nothing is done to prejudice possible prose- Question agreed to. cutions flowing from other investigations for offences or undermine any natural justice considerations. Question negatived.

CHAMBER Wednesday, 23 June 2010 SENATE 4163

NATIONAL ABORIGINAL AND Senator CORMANN—I move: ISLANDER CHILDREN'S DAY paragraph (d), omit “legislate”, substitute “ex- Senator SIEWERT (Western Australia) amine”. (4.26 pm)—I move: Question agreed to. That the Senate— Senator BOB BROWN—I move the mo- (a) acknowledges that Sunday, 4 August 2010 tion as amended: is National Aboriginal and Islander Chil- That the Senate— dren’s Day; (a) notes that the incompatibility of chargers (b) recognises that the theme for 2010 is for mobile phones is a major environ- ‘Value My Culture, Value Me’ which em- mental problem that unnecessarily gener- phasises that Aboriginal and Torres Strait ates significant amounts of electronic Islander children need to know they are waste; loved and valued, and to have every op- (b) acknowledges that it is an inconvenience portunity to nurture and explore a healthy and strong sense of self and community; for Australian consumers to acquire a new charger and dispose of the current one and each time they want to acquire a new (c) embraces the message of ‘Value My Cul- phone; ture, Value Me’ by undertaking to promote (c) recognises that this problem can be fixed new attitudes and forging a new pathway of understanding for the benefit of all Aus- by the mobile phone industry working to- gether to harmonise mobile phone charg- tralians, build and improve relationships based on mutual respect, end disadvantage ers; and for Aboriginal and Torres Strait Islander (d) calls on the Government to examine the children and families and create equality harmonisation of mobile phone chargers for all in the broader Australian commu- in agreement with the mobile phone in- nity. dustry, similar to the agreement that has Question agreed to. been reached in Europe. Question agreed to. MOBILE PHONE CHARGERS Senator STEPHENS (New South Senator BOB BROWN (Tasmania— Wales—Parliamentary Secretary for Social Leader of the Australian Greens) (4.27 Inclusion and Parliamentary Secretary for the pm)—I inform the Senate that there is an Voluntary Sector) (4.28 pm)—I seek leave to opposition amendment to this motion relat- make a short statement in relation to that ing to a regulation of mobile phone chargers. motion. I have agreed to the amendment, but I do not have the words of it with me. If the opposi- The DEPUTY PRESIDENT—Leave is tion cares to move that amendment, I will granted for two minutes. agree of course to it. Senator STEPHENS—That there is al- Senator CORMANN (Western Australia) ready action being taken by industry volun- (4.27 pm)— I seek leave to amend the mo- tarily and without there being a demonstra- tion by deleting the word ‘legislate’ in and tion of a clear benefit to the community from replacing it with the word ‘examine’. imposing legislation is the reason the gov- ernment has not supported this motion. The Leave granted. incompatibility of chargers for mobile phones constitutes only a small part of elec- tronic waste, with only two per cent of

CHAMBER 4164 SENATE Wednesday, 23 June 2010 phones and accessories being disposed to The DEPUTY PRESIDENT—Leave is landfill in 2009. The mobile phone industry granted for two minutes. already provides Australian consumers with Senator CORMANN—The coalition a capacity to recycle their old chargers at the agree with the comments that have just been same time as they recycle their old phones made. It is a real nuisance for people, when- through the industry led scheme, Mobile ever they buy a new mobile phone, that they Muster. I am advised that the current ap- have to buy a new phone charger. I am sure proach in the European Union favours a vol- that people across Australia would agree untary memorandum of understanding be- with those of us who have had that experi- tween major suppliers of mobile phones, not ence and who have got 20 or 30 phone legislation. The government is already in the chargers in the bottom drawer that cannot be process of developing product stewardship used. The coalition’s view is that legislation legislation that will support voluntary should not be the first step. The heavy hand schemes such as that already operating in the of government should not be the first re- mobile phone industry. sponse in terms of enforcing legislation. Senator BOB BROWN (Tasmania— However, common sense should prevail, and Leader of the Australian Greens) (4.29 government and industry should have a pm)—I seek leave to make a brief statement. process in place where they examine the fea- The DEPUTY PRESIDENT—Leave is sibility of harmonising phone chargers. It is a granted for two minutes. matter of taking a common-sense approach. I am somewhat surprised that the government Senator BOB BROWN—The govern- would have difficulty with the proposition of ment has missed the amendment that has just examining the possibility of harmonising been agreed to by the Senate that changed mobile phone chargers, because if such har- the word ‘legislate’ to the word ‘examine’. monisation were able to happen it certainly Also, it should understand—and I think that would address a lot of inconvenience for every member of this place will under- people right across Australia. We would like stand—the frustration there is when, pretty to think that the government are going to well every time you get a new phone, you reconsider their attitude here in the chamber need a new phone charger to go with it, and and assume that it is based on a lack of out go chargers all over the place. It is an proper communication perhaps in the face of extraordinarily bungled system, and there an adjusted and amended motion. We would should be a simple phone charger that all like the government to reconsider the posi- phones are adapted to. An agreement has tion that they have just adopted. been reached on that with industry in Europe, and this motion, if passed, would KOALA POPULATION have the government examine—in concert Senator BOB BROWN (Tasmania— with the industry—getting such an agree- Leader of the Australian Greens) (4.32 ment brought in in Australia pronto, so that pm)—I move: we end the extreme waste and frustration that That the Senate— there is with there being such a plethora of (a) notes the decline in koala populations phone chargers. around Australia; Senator CORMANN (Western Australia) (b) calls on the Government to have a public (4.30 pm)—I seek leave to make a brief and transparent inquiry into the status, statement.

CHAMBER Wednesday, 23 June 2010 SENATE 4165

heath and sustainability of Australia’s ko- is due for completion by 30 September this ala population; and year. (c) in undertaking the inquiry, calls on the We all acknowledge that the koala is Government to consider the following clearly an iconic species of great importance matters: to all Australians but, in terms of transpar- (i) the iconic status of the koala and the ency, the scientific committee recently con- history of its management, sulted widely on the nature and extent of (ii) knowledge of koala habitat, threats to koalas nationally, and a large num- (iii) threats to koala habitat such as logging, ber of submissions were received from re- land clearing, poor management, at- searchers, care groups, local councils, mem- tacks from feral and domestic animals, bers of the public and others concerned with disease, roads and urban development, koala conservation. The scientific committee (iv) the listing of the koala under the Envi- is now considering all submissions closely ronment Protection and Biodiversity before it concludes its assessment and ad- Conservation Act 1999, vises Minister Garrett regarding whether or (v) the adequacy of the National Koala not the koala is eligible for listing as a Conservation and Management Strat- threatened species in Australia and, if so, egy, which category is most appropriate. The (vi) appropriate future regulation for the Threatened Species Scientific Committee has protection of koala habitat, not yet reached a view of the koala’s eligibil- (vii) interaction of state and federal laws and ity for any threatened species category and regulations, and any related matters. will assess its eligibility against all relevant Senator STEPHENS (New South categories. In relation to work to protect this Wales—Parliamentary Secretary for Social iconic species, Minister Garrett and his state Inclusion and Parliamentary Secretary for the and territory colleagues are moving forward Voluntary Sector) (4.33 pm)—I seek leave to with the implementation of the new National make a short statement in relation to the mo- Koala Conservation and Management Strat- tion. egy 2009-2014, and this strategy aims to The DEPUTY PRESIDENT—Leave is conserve koalas throughout their natural granted for two minutes. range. Senator STEPHENS (New South Senator WILLIAMS (New South Wales) Wales—Parliamentary Secretary for Social (4.35 pm)—I seek leave to make a short Inclusion and Parliamentary Secretary for the statement. Voluntary Sector) (4.33 pm)—The govern- The DEPUTY PRESIDENT—Leave is ment’s position in opposing this motion re- granted for two minutes. lates to Senator Brown’s call for a new in- Senator WILLIAMS—I welcome this quiry to look into many of the matters that motion on the grounds that we have seen the Minister Garrett has directed the nation’s destruction of our habitats. I refer to three pre-eminent scientific body on biodiversity years ago when the Pilliga Scrub used to be a conservation, the Threatened Species Scien- state forest. When I used to work out there tific Committee, to undertake in terms of a with Tom Underwood, who was a timber new assessment of the national status of the miller, he was telling me that in his young koala. This assessment is well underway and days—he started work at about 14 years of age—you would not find a koala in the Pil-

CHAMBER 4166 SENATE Wednesday, 23 June 2010 liga. Now they are ample. He said that what for Environment Protection, Heritage and the happened is that the Pilliga was shut up in a Arts, the Hon. Peter Garrett, which did not national park. The levels of fuel and the list the koala as rare and endangered but left grass grew, and tens of thousands of acres it to regional and state listing. That led to were burnt and destroyed three years ago. I some calls to me. There has never been an do not know how many hundreds or perhaps inquiry from this parliament into the status of thousands of koalas were burnt. The same the koala, not ever, hence this motion. There will happen in other national parks when we is a departmental and scientific study into the shut country up. The habitats are simply ne- matter. Let that go into a national inquiry. glected, the grass grows, the lightning There are people who work in the service of strikes, and the savage hot fires burn through koalas who have given their lives to the ser- there, destroying the timber, destroying the vice of koalas who do not believe that in- environment, and destroying the animals— quiry or the outcome is going to help. They especially the koalas—that live in those ar- think that the species is highly vulnerable to eas. I hope that a good lesson will be learned extinction, and we should know the facts of out of this inquiry that you must manage the matter. This inquiry should proceed. your country. You cannot simply shut it up Question agreed to. and leave it, as the national parks associa- COMMITTEES tions, in conjunction with the Greens and many others in this political field, push to do, Corporations and Financial Services with the eventual result of the destruction of Committee the koala population. So I welcome the in- Meeting quiry. Senator PARRY (Tasmania—Manager of Senator BOB BROWN (Tasmania— Opposition Business in the Senate) (4.38 Leader of the Australian Greens) (4.36 pm)—by leave—I move: pm)—Mr President, I seek leave to make a That the Parliamentary Joint Committee on short statement. Corporations and Financial Services be author- The DEPUTY PRESIDENT—Leave is ised to hold a public meeting during the sitting of the Senate today, from 6 pm, to take evidence for granted for two minutes. the committee’s inquiry into the continuing over- Senator BOB BROWN—I thank Senator sight of the operations of the Australian Securities Williams for that different point of view. It is and Investments Commission. my assessment that for a long, long time be- Question agreed to. fore Australia became a nation, it was subject BUSINESS to grassing growing, lightning strikes and bushfires, and there were millions and mil- Rearrangement lions of koalas here until the great slaughter The PRESIDENT—I inform the Senate of the early twenties. The decline since then that Senator Parry has withdrawn the matter is a matter of conjecture, but there is a lot of public importance which he had proposed more than the issues raised by the senator— for today. such as erosion, loss of natural forest, spread Senator PARRY (Tasmania—Manager of of urban areas, tollways and so on. It is time Opposition Business in the Senate) (4.39 we took a raincheck on this iconic species. pm)—by leave—I move: This motion has been motivated by a threatened species statement by the Minister

CHAMBER Wednesday, 23 June 2010 SENATE 4167

That–– the opposition in getting through the busi- (1) Renewable Energy (Electricity) Amendment ness program. Bill 2010 and related bills be considered un- Senator BOB BROWN (Tasmania— der a limitation of time. Leader of the Australian Greens) (4.41 (2) On Wednesday, 23 June 2010, the bill have pm)—I have spoken with Senator Milne precedence over all other business immedi- about this, and there is a need to get this leg- ately. islation through. I think it can be done by (3) The time allotted for the remaining stages of agreement—obviously, it can be because that the bill be for 1 hour. is what we are agreeing to here. Therefore, (4) This order operate as an allocation of time we are not going to divide over it. We do not under standing order 142. support the guillotine proposal, but we sup- The coalition have given up our matter of port the cooperation that is going to lead to public importance this afternoon. We under- this matter being handled swiftly and final- stood the necessity for a condolence motion ised. earlier today which took up a considerable Question agreed to. amount of time that had been allotted for government business today. Also, it is in the RENEWABLE ENERGY interests of the coalition as well as other par- (ELECTRICITY) AMENDMENT ties to finalise the Renewable Energy (Elec- BILL 2010 tricity) Amendment Bill and related legisla- RENEWABLE ENERGY tion. The legislation has continued on (ELECTRICITY) (CHARGE) through the committee stage for longer than I AMENDMENT BILL 2010 think was anticipated by all. There has been RENEWABLE ENERGY some very healthy and robust debate. We (ELECTRICITY) (SMALL-SCALE would like to assist in the facilitation of that TECHNOLOGY SHORTFALL legislation to pass through the chamber today CHARGE) BILL 2010 in order that any amendments that are re- Consideration resumed from 22 June. quired to be considered by the House of Rep- In Committee resentatives arrive in a timely fashion. Oth- erwise, this matter will not be considered The TEMPORARY CHAIRMAN until tomorrow. We would like it to be noted (Senator McGauran)—The committee is that the coalition have been exceptionally considering the Renewable Energy (Electric- cooperative again in assisting the govern- ity) Amendment Bill 2010 and related bills ment with the legislative process of this as amended, and government amendment (1) chamber by relinquishing one hour of our on sheet CA252. The question is that the time. amendment be agreed to. Senator STEPHENS (New South Senator MILNE (Tasmania) (4.42 pm)— Wales—Parliamentary Secretary for Social To facilitate debate here, we are dealing with Inclusion and Parliamentary Secretary for the government amendment (1) on sheet CA252, Voluntary Sector) (4.40 pm)—Can I ac- but the Australian Greens seek leave to move knowledge Senator Parry’s generosity and an amendment that is complementary, about his gesture of cooperation. The government which I have consulted all other members. I certainly do appreciate that the condolence am seeking your guidance, Mr Temporary motion did take some time from the debate Chairman, because I would like the debate today and we appreciate the cooperation of on the government’s amendments to be a

CHAMBER 4168 SENATE Wednesday, 23 June 2010 cognate debate on the government’s amend- adjusted, but there should be a recognition ment and the Greens amendment, which is that if you are going to adjust the multiplier on sheet CA253. The government’s amend- you should equally be able to adjust the size ment deals with the minister’s ability to to which it applies, which is the relevance of change the multiplier and the Greens Senator Milne’s amendment. amendment enables the minister to deal with I note also that Senator Milne has high- the size of the system. So those two things lighted the very real problem that state incen- go together. tives and subsidies, and schemes such as Leave granted. feed-in tariff arrangements, are impacting on Senator MILNE—I move Australian this and add to the proposition that payback Greens amendment on sheet CA253: periods for systems can become very short and very profitable unless you have some (1) Schedule 1, page 63 (before line 30), before item 120, insert: flexibility to respond. Indeed, as has been discussed previously, some level of uniform 119B Subsection 23B(3) application of feed-in tariff arrangements, be Omit “the first 1.5kW”, substitute “not that having none or some, would at least al- more than the first 3kW”. low these types of incentives to operate more I have nothing further to add other than to effectively across states rather than the cur- reiterate my previous remarks. They were rent hodgepodge system between the states that the government is moving to give the that only adds to some of these problems. minister the ability to alter the multiplier in Senator WONG (South Australia— the regulations. I am moving that the minis- Minister for Climate Change, Energy Effi- ter be also able to change the size of the sys- ciency and Water) (4.47 pm)—First, I will tem. They are complementary amendments just remind everyone that the government’s and they address the issue that I was refer- amendment really enables regulations to be ring to before the break—that is, the differ- made, if required. Obviously it would be the ential around Australia in terms of feed in government’s intention, should they be re- and support and the likelihood that we may quired, to have consultation on those end up with three systems and a bit of deba- amendments. We think that Senator Milne’s cle in the market. This amendment is ad- additional amendment is sensible. It simply dressed at allowing the minister to manage gives a little more flexibility without locking that scenario. any particular policy proposition into the Senator BIRMINGHAM (South Austra- solar credits regime. lia) (4.46 pm)—Very quickly, the coalition The TEMPORARY CHAIRMAN—The supports both the government amendment question is that government amendment (1) and the Greens amendment. I think the gov- and the Greens amendment on sheet CA253 ernment amendment was a recognition of moved together be agreed to. some of the issues raised in both the majority report of the Senate inquiry and the addi- Question agreed to. tional comments. There are real concerns Senator MILNE (Tasmania) (4.48 pm)— about this industry. What happens if systems I now move Australian Greens amendment are priced too cheaply is that you end up los- (5) on the second revision of sheet 6114: ing quality and standards. As Senator Milne (R5) Schedule 1, page 63 (after line 29), after has alluded to, it is a dynamic industry. We item 119, insert: need this flexibility for the multiplier to be 119A After section 23A

CHAMBER Wednesday, 23 June 2010 SENATE 4169

Insert: to make sure that an adequate number of 23AAA Regulations to establish scheme small units can be inspected to ensure that for inspection of new installations of small we are meeting the appropriate Australian generation units standards and any other standards or re- (1) The regulations must establish a quirements relevant to the creation of certifi- scheme for the inspection of the instal- cates in relation to those small generation lation of small generation units for units. which certificates have been created. Basically, this is a quality control pro- (2) Without limiting subsection (1), regula- gram. We have learnt something from the tions made under that subsection must insulation scheme, the green loans scheme provide, for small generation units in- stalled after the commencement of this and so on, and that is that you must have section: appropriate capacity to check and to audit installations and to make sure that the stan- (a) that each year a statistically signifi- cant selection of small generation dards are met. I emphasise that the reason for units that were installed during that the revision is that this goes to those units for year must be inspected for confor- which certificates have been created. That is mance with Australian standards and the difference between the previous amend- any other standards or requirements ment and this one. I would recommend it relevant to the creation of certifi- because it is a quality control measure. cates in relation to that small gen- Senator BIRMINGHAM (South Austra- eration unit; lia) (4.50 pm)—It is the opposition’s belief (b) that an inspection of a small genera- that this amendment has some merit. We tion unit is to be carried out by a person or organisation who: have concerns that standards be maintained. That has been addressed in some of the other (i) is independent of the person or amendments. We have sympathy for this organisation who designed and/or installed that small generation amendment. Ensuring that there is a high unit; and standard for installations within the industry (ii) does not have a conflict of inter- is important and maintaining those high est in relation to that small gen- standards will only be to the good of the in- eration unit or administration of dustry. Indeed, we have seen terrible exam- the matters being inspected; ples in other industry sectors, particularly the (c) for the transfer of information, about insulation sector, where the failure to main- any failures to comply with stan- tain high standards has damaged everyone in dards or other requirements relevant the industry. That is why this is so impor- to the creation of certificates in rela- tant—to make sure that we do keep those tion to small generation units, to standards very high. State, Territory or Commonwealth Senator WONG (South Australia— bodies with responsibility for the enforcement and administration of Minister for Climate Change, Energy Effi- those standards or requirements. ciency and Water) (4.51 pm)—First, I indi- cate the government is prepared to support This goes to the issue of quality control. It is the revised amendment, and I thank Senator a measure for the government to be able to Milne and the Greens for their willingness to establish regulations to establish a scheme take on board some of our concerns about for inspection of new installations of small the original amendment. generation units. This is about quality control

CHAMBER 4170 SENATE Wednesday, 23 June 2010

I want to place on record that the govern- Question agreed to. ment takes these safety issues very seriously. Senator MILNE (Tasmania) (4.54 pm)— I can point to a number of reforms we have Consistent with the undertaking I gave ear- put in place to recognise the importance of lier in relation to the government’s agree- these issues and to improve the safety meas- ment to move to the regulations that give the ures surrounding this scheme. The act al- government the ability to act on the multi- ready includes new and enhanced compli- plier and consistent with the acceptance of ance measures such as civil penalties, my amendment regarding the size of the tougher financial penalties and more strin- schemes, I am now withdrawing Greens gent compliance documentation require- amendments (6) and (8). ments. That was an initiative of the govern- While I am on my feet, there is a further ment’s. revision to Australian Greens amendment In addition, I announced changes this (7), which has not been circulated. We have week to regulations which further enhance asked for it to be circulated but it has not both the performance and compliance regime been circulated yet. With the agreement of for solar PV and other small-scale generation the other parties, could I defer Australian technologies—it might have been last week; Greens amendment (7) until it is circulated, the 15th, I think. The weeks are blurring into hopefully in a few minutes, and move on to one at the moment. These entered into force, Senator Xenophon’s motion. I think, on 21 June and include additional Leave granted. requirements for installers to comply with state and territory regulations for siting pan- Senator XENOPHON (South Australia) els, and to comply with building codes, in- (4.55 pm)—by leave—I move amendments cluding for panel mountings and connec- (6) and (7) on sheet 6116 together: tions. Obviously, the safety of electrical (6) Schedule 1, page 65 (after line 19), after work on buildings is regulated by states and item 121, insert: territories through a number of laws. Com- 121A Subsection 39(3) pliance with these state laws is the responsi- After “subsection (1)”, insert “for a bility of states and territories. year until the year ending on In addition, I note to the Senate the Re- 31 December 2030”. newable Energy Regulator is also working 121B After subsection 39(3A) with industry to deliver an enhanced pro- Insert: gram of compliance and performance inspec- (3B) Before the Governor-General makes a tions. These represent one element of a regulation under subsection (1) for the broader and longer term strategy to improve year commencing on 1 January 2031 compliance and performance under the re- and any later year until the year ending newable energy target and the government’s on 31 December 2040, the Minister solar programs. My department will be con- must take into consideration: sulting with industry and other stakeholders (a) the required GWh of geothermal on this comprehensive strategy, including energy source electricity for the post-installation checks. So the revised pro- year; and vision from the Greens is consistent with the (b) the amount estimated as the amount government’s work in this area, and for this of electricity that will be acquired reason we are able to support the amend- under relevant acquisitions during the year; and ment.

CHAMBER Wednesday, 23 June 2010 SENATE 4171

(c) for a year after the year commenc- (a) a flash steam power plant; ing 1 January 2031—the amount by (b) a dry steam power plant; which the required GWhs of geo- (c) a binary cycle power plant; thermal energy source electricity for all years from and including 2031 (d) direct use geothermal (that is, direct has exceeded, or has been exceeded hot water systems); by, the amount of geothermal energy (e) geothermal heat pumps (for heat- source electricity required under the ing); scheme in those years; and (f) any other characteristic prescribed (d) all partial exemptions expected to be by the regulations for the purpose of claimed for the year. this paragraph; (3C) If, at the time the Minister takes into to qualify as providing geothermal consideration the matters referred to in energy source electricity for the pur- subsection (3B), the amount applicable poses of subsection (1). under paragraph (3B)(c) is not known, (3) A generation unit for geothermal en- then the Minister may take into consid- ergy source electricity must be 1 MW eration an estimate of that amount in- capacity or greater to qualify as capable stead. of providing geothermal energy source (7) Schedule 1, page 67 (after line 6), after item electricity for the purposes of subsec- 124, insert: tion (1). 124A At the end of Division 2 of (4) The regulations must make provision Part 4 for geothermal energy source electric- Add: ity in relation to: 40AA Required GWh of geothermal en- (a) the acquisition of electricity by a ergy source electricity liable entity; (1) The required GWh of geothermal en- (b) the creation and transfer of certifi- ergy source electricity for a year is set cates; out in the following table: (c) the calculation of the renewable Required GWh of geothermal power percentage for a year; energy source electricity (d) the required renewable energy of a Year GWh liable entity for a year; (e) the surrender of certificates by a 2031 41000 liable entity for a year; 2032 41000 (f) the renewable energy certificate 2033 41000 shortfall of a liable entity for a year. 2034 41000 Support is currently being provided for 2035 41000 emerging technologies, and this is positive 2036 41000 recognition of the future opportunities that 2037 41000 renewable technologies may provide. In the case of geothermal energy with geothermal 2038 41000 hot rocks, which is when power is extracted 2039 41000 from heat stored in the earth, drilling and 2040 41000 exploration for such deep resources is very (2) Geothermal energy source electricity expensive. These are long-term projects must have one of the following charac- spanning 20 to 30 years in terms of being teristics: able to pay it back. There is enormous infra-

CHAMBER 4172 SENATE Wednesday, 23 June 2010 structure involved, and they require certainty one sector and attempting to provide it with to secure investment. It is for this reason that the treatment at present, we are not sure that I move these amendments which will extend is the best way to go. We will continue to the renewable energy certificates for geo- agitate and lobby that there should be a thermal projects for an additional 10 years clearly defined target for baseload power after the RECs are currently due to end in generation capacity in areas like geothermal, 2030. wave or tidal, and others that could be con- This will see RECs for geothermal pro- sidered in that sort of context. Please, Sena- jects continue until 2040 and will provide the tor Xenophon, do not see our opposition as industry with the certainty it needs, the cer- being an opposition to the principle. It is a tainty it deserves, to secure investment so matter of trying to find a better way to get that these emerging renewable technologies that principle accommodated in future legis- can be advanced and maximised. In relation lation. to this, geothermal hot rock technology has Senator MILNE (Tasmania) (4.59 pm)— the potential to provide that baseload power I indicate the Australian Greens will be sup- that we need. Wind energy cannot do that. It porting Senator Xenophon in these amend- is the one technology which can provide that ments. I think they are really important. As 24/7 access to energy that we need, but they for whether we will get a higher target or a need that investment certainty. Given the longer regime, we will see, but in the mean- scale of the projects, given the emerging time this is one way of going. I will never technologies in relation to this, the RECs give up on a differential feed-in tariff to ought to be extended another 10 years. bring on these new technologies. Senator BIRMINGHAM (South Austra- Senator WONG (South Australia— lia) (4.57 pm)—I have enormous sympathy Minister for Climate Change, Energy Effi- for where Senator Xenophon is coming from. ciency and Water) (5.00 pm)—The govern- I recognise very much the issue that he raises ment is not intending to support these and, particularly as a fellow South Austra- amendments. As I understand it, amendments lian, I recognise the importance of the devel- (6) and (7) together extend the renewable opment of the geothermal sector within our energy target for geothermal out to 2030 and home state and of course the extraordinary set an effective requirement on how much importance of it as a potential reliable geothermal must deliver by the year 2031, baseload generator of power into the future. essentially. Sorry—2040, I should say. We very much agree with the sentiment, Senator Xenophon—Don’t short-change with the direction that Senator Xenophon is me, Minister. talking about, but are not convinced at pre- Senator WONG—I am sorry. We in the sent that it is wise to make this amendment government have consistently said that what in the context of this legislation. It is an issue we are doing here is setting up a market. Re- that I would hope will be considered in fu- newable technologies can compete within ture reviews of the operation of the scheme that market. We recognise that there are and a future review of the legislation. We some technologies which are more advanced have consistently argued to somehow set and can come to market immediately or more aside part of the RET, now the LRET, for quickly than others. I think the policy ques- baseload power. We think that would still be tion is: how do you deal with the difference a positive but, in terms of identifying just between technologies like wind or solar and

CHAMBER Wednesday, 23 June 2010 SENATE 4173 technologies which are at a different stage of table in subsection (1) has effect in ac- coming to market, such as geothermal? What cordance with the following para- I have said is I do not think you do that by graphs: simply loading up a market mechanism that (a) the number of GWh specified in the is subsidised through electricity prices. You table for each of the following years do what the government is doing, which is to is taken to be increased by half of put a very significant amount of assistance the excess: on budget into different technologies. (i) the year 2012; I, like you, Senator Xenophon, hope that (ii) the year 2013; we will see geothermal and other new tech- (b) the number of GWh specified in the nologies being able to compete in the renew- table for each of the following years able energy market. I think that some of the is taken to be reduced by one quarter of the excess: amendments that we have passed already here will hopefully enable the legislation to (i) the year 2016; be flexible in the future to enable additional (ii) the year 2017; eligibility—for example, the amendment (iii) the year 2018; moved by Senator Milne in terms of the bi- (iv) the year 2019. ennial review. We in the government have (1B) As soon as practicable after the end of already put a very substantial amount of in- the year 2010, the Regulator must pub- vestment into other technologies. These are lish on its website the total value re- emerging renewable generation technologies. ferred to in subsection (1A). An example is the Solar Flagships program, Adjustment of targets if there is a which is $1½ billion, and we have commit- WCMG start day ted more than $200 million to accelerate geo- (2) Schedule 1, item 124, page 66 (line 5), omit thermal energy technology development, “has effect as”, substitute “has effect (after demonstration and deployment in Australia. first taking account of subsection (1A))”. We think that is a more sensible way of giv- This is an aspect of the policy position I ing support to this sector, and particularly to think we made reference to earlier, which emerging technologies, rather than trying to deals with the banked certificates issue that do so through a legislative mechanism. has been raised with us by industry and by Question negatived. others, including the opposition. In the event Senator WONG (South Australia— that the stock of banked RECs is substan- Minister for Climate Change, Energy Effi- tially in excess of what we anticipate, as I ciency and Water) (5.04 pm)—by leave—I think I outlined in an earlier part of the de- move government amendments (1) and (2) bate, these amendments would enable an on sheet CA251: adjustment of the target to take that into ac- count. I suppose the best way to describe it is (1) Schedule 1, item 124, page 66 (before line 3), before subsection (2), insert: to say that it is a contingent power in the sense that it is a power to alter the targets but Adjustment of targets according to number of valid certificates as at the only in the circumstances that were previ- end of 2010 ously outlined and that I think are outlined in the supplementary memoranda. I commend (1A) If, as at the end of the year 2010, the total value, in GWh, of valid renewable the amendments to the chamber. energy certificates exceeds 34,500, the

CHAMBER 4174 SENATE Wednesday, 23 June 2010

Senator BIRMINGHAM (South Austra- renewable technologies in the scheme. More lia) (5.05 pm)—I would refer anybody inter- and more emerging renewable technologies ested in the opposition’s detailed position on are being discovered, and I think we have a this to the remarks I made yesterday in re- great opportunity to support these technolo- sponse to the first parcel of government gies so that they can be established and taken amendments, in which I mistakenly can- up by the market. For example, I recently vassed these amendments in great detail. read about ceramic fuel cells, which are not Suffice to say the opposition does support yet available, but based on testing conducted these amendments. We support them because so far they will enable enough power to be we want to see some mechanism that deals produced in a year to run a standard home with the issue of banked credits to provide more than twice over. That goes to the issue some investment certainty for industries un- of energy efficiency, which Senator Milne der the LRET, and we think that it is impor- referred to, but I think the principle is still tant that a smoothing-out mechanism is ap- the same. For instance, the solid oxide fuel plied. We note that these amendments cell technology called BlueGen creates elec- achieve that within certain parameters and tricity and heat by passing natural gas over we note that in doing so they will hopefully ceramic fuel cells. While that in itself is not provide that certainty. We further note that renewable, it is indicative of the sorts of the nature of the measure proposed may, of breakthroughs that are being made in new course, have some slightly earlier cost im- technologies. I think that is important in the pacts but that they will be offset by slightly context of the policy objectives of this bill, reduced cost impacts in the latter part of the which are to support renewable technologies scheme. and to reduce the overall level of greenhouse Question agreed to. gas emissions. It is important that the minis- ter has a discretion to include proven emerg- Senator XENOPHON (South Australia) ing renewable technologies. I urge my col- (5.06 pm)—I move amendment (8) on sheet leagues to support this amendment. It gives 6116, standing in my name: the minister the flexibility and the latitude to (8) Schedule 1, page 67 (after line 6), after item embrace and adopt these new technologies as 124, insert: part of the scheme. 124B After Division 2 of Part 4 Senator BIRMINGHAM (South Austra- Insert: lia) (5.09 pm)—The opposition is pleased to Division 2AA—Emerging renewable en- support Senator Xenophon’s amendment. We ergy technologies have done a number of things in the amend- 40AB Inclusion of emerging renewable ment of this legislation to improve the flexi- energy technologies bility to allow the minister of the day to be The Minister may, by legislative in- more responsive while still being account- strument, determine that an emerging able to this parliament. I think this is another renewable energy technology that has measure that would improve the responsive- demonstrated its energy efficiency is to ness of the operation of the scheme. be included as a renewable energy technology for the purpose of the Senator MILNE (Tasmania) (5.09 pm)— scheme constituted by this Act. I, too, will be supporting this legislation. I This amendment relates to giving the minis- did ask in my speech in the second reading ter a discretion to include proven emerging debate whether the government had given any consideration to RECs for evacuated

CHAMBER Wednesday, 23 June 2010 SENATE 4175 tubes. It is particularly important for Tasma- der the legislation, we have already passed nia, where evacuated tube systems are more amendments which deal with a biennial re- suitable because of the cold nights. They view, which is precisely to look at some of give some certainty against cracking and those issues, as well as the 2014 statutory breaking, which other PV solar hot water review, from memory, which is already in the systems do not allow. The second thing is: legislation. has the government given any thought to What you seek on top of all that is an ad- thermal heat systems for domestic-scale ditional regulatory process through which houses, which are now online? If we are giv- you table by regulation something in relation ing RECs for other things, are we looking at to emerging technologies. I believe that the being able to provide for domestic heat from scheme has to be flexible enough to recog- the ground in those thermal systems? I sup- nise that over the life of the target we—the port the amendment, but I am interested to parliament—will not be able at this point to know whether the government has looked at predict every technology that should be in those two technologies. this act for the next 10 years, for example. Senator WONG (South Australia— But I think that has to be balanced against Minister for Climate Change, Energy Effi- the importance of looking at the scheme as a ciency and Water) (5.10 pm)—Senator, I am whole and the parliament and the govern- not sure I can assist you, particularly in rela- ment of the day being able to look at the tion to those specific technologies, other various aspects of eligibility in toto. I would than, I think, with regard to our previous dis- suggest that this amendment would simply cussion in relation to the COAG review— privilege one type of technology, in terms of and I know you have put your views about eligibility, when other types of technologies that. We have some concerns in relation to may well require—I do not have legal advice the drafting of this amendment. It provides on this—an amendment to the legislation. I very little clarity around what the legislative would ask: what is the public policy benefit instrument can do. We have some concerns of privileging one type of technology over also, Senator Xenophon, about the criteria another? We have processes that have been for energy efficiency. I made the point that agreed to by the government today, including this is a renewable energy target and renew- Senator Milne’s biennial review, which able energy legislation. While I understand would enable a more holistic, careful as- the arguments that have been made about sessment of these issues. I invite the chamber heat pumps, this is not energy-efficiency- to reconsider their support for this proposi- support-mechanism legislation. Essentially, tion. what you are doing here is to ask a minister Senator XENOPHON (South Australia) to include as a renewable energy technology (5.13 pm)—I will address the minister’s con- something that has an energy efficiency out- cerns. I am shocked that she will not support come. While I understand that the govern- this as it is a vote of confidence in the minis- ment does not have majority support on this, ter’s discretion to deal with these issues. The I really would invite the chamber to consider minister asks, quite reasonably, what the the provision that it is looking at. I am un- public policy benefit of this amendment is. It clear as to what ‘has demonstrated its energy gives an additional level of flexibility in rela- efficiency’ would mean and what the public tion to the biennial reviews—and I commend policy benefit of it is. If the intent is to have Senator Milne for moving those reviews— some greater flexibility about eligibility un- that we have supported. It does not mean one

CHAMBER 4176 SENATE Wednesday, 23 June 2010 form of technology or another will be fa- for a while. They have been asking the gov- voured, but it does give the minister flexibil- ernment to look at them. The COAG process ity. If there is a new product on the market, is there and, while I have no faith in it, let us such as a new, incredibly energy efficient assume that it does deliver. This would give renewable technology, then that ought to be you the flexibility to immediately consider the subject of this scheme, and of course inclusion. there will be scrutiny through the parliament Senator WONG (South Australia— by regulation. Minister for Climate Change, Energy Effi- If there is an issue here with respect to the ciency and Water) (5.16 pm)—I would make drafting, I would like to hear from the gov- two points, Senator Milne. Firstly, you are on ernment. From a drafting perspective, how- the record saying that this is not an energy ever, it does seem to be quite straightforward efficiency scheme, and now you are support- in that it simply gives the minister discretion. ing an amendment that is an energy effi- It is not something that the minister has to ciency amendment. Secondly, what is the exercise. The minister is not required to ex- point of the biennial review if you are now ercise discretion; it is simply that the minis- saying—and this is the problem where we ter can have this additional power to do so if just move amendments and people do not there is an emerging renewable energy tech- consider how the whole scheme operates— nology that has demonstrated its energy effi- that all you want to do is give the minister ciency sufficiently to be included. power to change the way the act works? You I know the minister has some concerns may as well just put it all in the minister’s about other technologies. The fact is that the hands and forget about the biennial review. scheme is far from perfect—and I think we There is no reference in this to what the all acknowledge that—because of the inclu- outcome of the biennial review is. Earlier sion of electric heat pumps, but I understand today you passed one amendment that says that they are included by virtue of their po- we will have a biennial review. The govern- tential energy efficiency. This amendment is ment agreed to that after discussions, and we not inconsistent with what is in the scheme are going to look at all these things as part of now in terms of current technologies. It does, a sensible policy process. But now you are however, give the minister that level of supporting an amendment that enables the flexibility. discretion of the minister to do it with or Senator MILNE (Tasmania) (5.15 pm)— without regard to the biennial review that It also means that the minister, should you already passed earlier. I am just suggest- COAG do something dramatic by proving ing that we perhaps try and approach this in a me completely wrong and becoming incredi- more sensible way. bly efficient—should it look at these issues Senator Xenophon, I again ask what the and determine that evacuated tubes or the point is of having a provision which only thermal heat technologies existing now, relates to technologies that demonstrate en- which are not new technologies but which ergy efficiency. I do not understand the pub- are new to the scheme because they are not lic policy benefit of that. If you really currently acknowledged—could immediately want—and I do not think it is a sensible re- deal with it without waiting for the biennial gime—to have a ministerial discretion that is review. That is precisely the issue because, abstracted from the review process we have frankly, these technologies have been around just agreed to, why would you only have the

CHAMBER Wednesday, 23 June 2010 SENATE 4177 discretion in relation to energy efficiency supports this. The minister has raised some technologies and not other renewable tech- valid points there and I think Senator Xeno- nologies? I do not understand the logic in phon has responded that it was not his inten- that. tion to make this specific to a particular sec- Senator XENOPHON (South Australia) tor but to provide some flexibility. The min- (5.18 pm)—I thank the minister for her ques- ister asks why the chamber is not linking this tion. It was drafted in this way to give the to the biennial review. I would highlight that minister maximum discretion and it is not some of the other amendments that we have inconsistent with the issue of the biennial just passed in terms of the capacity to alter review. I do not want us to get bogged down the multiplier and so on are equally not on this particular amendment. linked to the biennial review. However, I would expect that, as a disallowable instru- Senator Wong—The minister can ignore ment, the parliament of the day would be the review in the way it has been drafted. holding the minister to account for adhering Senator XENOPHON—My view is that to those regular biennial reviews and ensur- it is not inconsistent with the way the review ing that it was in fact consistent with them. has been drafted. I think Senator Milne has If we are contemplating some amendment pointed out that if, for instance, there is a to this, could I further suggest that we new development, this gives the minister, equally require a statement of reasons to be between biennial reviews, that capacity. I laid out. That would also then ensure that would be guided by my colleagues as to ministers were far more likely to do this only whether the issue of energy efficiency is re- as a result of the biennial review. I think the moved or not. I am ambivalent on that. It minister knows, as we all know in this place, was merely meant as guidance in terms of that amending legislation is a slow process the efficacy of a renewable technology for any government. Getting priority on the measure. If the issue of energy efficiency is list for bills et cetera is a slow process, so an area of concern for the minister, I am not providing this level of responsiveness particularly fussed by that, but the intention through legislative instruments is useful. I is to give the minister discretion between accept that it needs to be done properly but it reviews with respect to a regulation-making is not inconsistent with other amendments power that would be subject to disallowance that have been passed around the application by this parliament. of the multiplier and other things. It would Senator WONG (South Australia— still be disallowable by either chamber but I Minister for Climate Change, Energy Effi- think there is some benefit in ensuring that it ciency and Water) (5.19 pm)—If you are treats the industry fairly, but perhaps also intent on moving this—and I have indicated that it is transparent in terms of the necessity why I am not hugely keen on it—I would to give some reason too. respectfully request that you consider remov- Senator WONG (South Australia— ing the phrase in relation to energy effi- Minister for Climate Change, Energy Effi- ciency. If we are going to expand this discre- ciency and Water) (5.22 pm)—If Senator tion, we should make it democratic—not just Xenophon is amenable to my suggestion in relation to energy efficiency technologies about the bit of the amendment that I have but renewable energy technologies. most concerns about, which is the reference Senator BIRMINGHAM (South Austra- to energy efficiency, and is happy to hold lia) (5.20 pm)—In principle, the opposition that we could move to the next aspect of the

CHAMBER 4178 SENATE Wednesday, 23 June 2010 debate. I have asked the department to look This is something that was discussed at at the words, and perhaps we could come length when this legislation was considered back to Senator Xenophon with a proposition last year. At that time, of course, it was dis- around those words. cussed in the context also of the govern- Senator XENOPHON (South Australia) ment’s CPRS legislation. At that time the (5.22 pm)—I seek leave to postpone consid- government considered, argued for and put eration of amendment (8) on sheet 6116. into the legislation a formula for the protec- tion of those trade-exposed industries that Leave granted. was reliant upon the passage of the CPRS. Senator XENOPHON—That is a reason- Now, of course, we know in this place that able suggestion. I think the intent of this is to the CPRS did not pass, and there is no need give that level of discretion and I am happy for us to revisit all of those debates. Indeed, to discuss it with the minister’s officers and its future is now quite uncertain as to when the department. or if it may pass. But the issue for these Senator BIRMINGHAM (South Austra- trade-exposed industries remains quite true, lia) (5.23 pm)—by leave—I move opposition and the issue is that they face paying a sig- amendments (3) and (1) on sheet 6154 re- nificantly disproportionate amount of the vised together: cost of subsidies through the renewable en- (1) Clause 3, page 2 (lines 7 to 11), omit the ergy scheme because they are high electricity clause, substitute: users, yet they operate—as we have recog- 3 Schedule(s) nised across the chamber—in a globally (1) Each Act, and each set of regulations, competitive environment. They are usually that is specified in a Schedule to this price takers rather than price setters and, as a Act is amended or repealed as set out in result, they are unable to adapt their pricing the applicable items in the Schedule to take account of the higher energy costs concerned, and any other item in a that a scheme such as this passes through to Schedule to this Act has effect accord- them. ing to its terms. As a result, negotiations around the ex- (2) The amendment of any regulation un- panded target last year increased or provided der subsection (1) does not prevent the for an exemption from part of the require- regulation, as so amended, from being ment to purchase or redeem certificates. That amended or repealed by the Governor- General. started only for the expanded part of the tar- get—that above 9½ thousand gigawatt hours. (3) Schedule 1, Part 2, page 80 (after line 4), at the end of the Part, add: For the original MRET, below 9½ thousand gigawatt hours, the government said that it Renewable Energy (Electricity) Regulations would provide compensation where the price 2001 of certificates went above $40 but only 138 Paragraph 22ZA(4)(a) commensurate upon the passage of the Repeal the paragraph. CPRS. As I have noted, that legislation has These are amendments that seek to ensure been withdrawn; it appears nowhere in the that Australia’s trade-exposed industries that government’s forward estimates and we do are extremely reliant on and heavy users of not know if or when it will be coming back. energy are not significantly disadvantaged by But the reality of what we have done here the renewable energy scheme that is being and are doing today in separating the renew- put in place. able energy target and putting in place the

CHAMBER Wednesday, 23 June 2010 SENATE 4179

LRET and the SRES schemes is that in pro- sand gigawatt hours, plus the 10 per cent or viding that certainty to the proponents of so that they are not exempted from, and the major renewable energy developments we certainty of the exemption above that. expect that the price of certificates— That is the approach that the coalition especially over the early years and, indeed, takes. It is about protecting jobs and industry potentially in the late years if targets are not in Australia, and that is the primary reason being met—could rise quite significantly. In for doing this. It is about ensuring that the particular, they could rise above that $40 aluminium and alumina sectors, as well as mark regardless of whether a CPRS exists in other sectors that are emissions-intensive the marketplace or not. trade-exposed price takers, are fairly pro- Why $40? It is $40 because that was, es- tected. We urge the chamber to support these sentially, the level that companies were pay- amendments to provide those sectors with ing under the original MRET, when it was a some certainty going forward and to not five per cent mandatory renewable energy leave them dependent on the potential pas- target. At that stage they were paying about sage of a CPRS that may or may not come $40; there was no compensation and that was before this place. The price is likely to go a reasonable level it would seem. The target above $40 and, if it does, for that first 9½ has been increased to 20 per cent—and now thousand gigawatt hours they deserve the 20 per cent plus because of the establishment same type of treatment—up to $45 and be- of the SRES—and we think it is reasonable yond. to maintain the compensation above 9½ Senator MILNE (Tasmania) (5.31 pm)— thousand gigawatt hours but to ensure that I indicate the Greens will not be supporting the exemption above $40 for that first 9½ the coalition amendments. thousand gigawatt hours is no longer de- Senator WONG (South Australia— pendent upon the passage of the CPRS. We Minister for Climate Change, Energy Effi- know that the structure of this scheme means ciency and Water) (5.31 pm)—The govern- that it will go above the $40 mark. ment will not be supporting these amend- I note that in debates last year even the ments. Senator Birmingham quoted my con- minister acknowledged this, and said in this tribution to the chamber about the additional place: support, particularly to aluminium, that the … if the renewable energy certificate price in- government was offering in the context of creases above the level of around $40 then the the RET and CPRS. I want to say very increased renewable energy certificate price in- clearly the government’s commitment to creases the cost impact of meeting the current those arrangements stands if there is a price mandatory renewable energy target liability of on carbon through the CPRS. That was an 9,500 gigawatt hours. arrangement we negotiated with the opposi- That was her statement in setting the $40 tion. We also engaged closely with various benchmark as a reasonable benchmark. parts of industry, including the aluminium Given that it is highly probable that the industry. That engagement reflected their LRET price will move above $40, it is rea- view, put strongly to us, about the cumula- sonable to provide these trade exposed in- tive costs of both a price of carbon and the dustries, which cannot adjust their prices renewable energy target. because of the global market in which they operate, the certainty of knowing that they Let us also remember that the aluminium only face a $40 price on that first 9½ thou- industry and other highly emissions-

CHAMBER 4180 SENATE Wednesday, 23 June 2010 intensive trade-exposed industries receive 90 some reason, you are now actually seeking to per cent assistance under the RET in respect provide greater levels of assistance than you of any RET liability above 9½ thousand gi- provided in government under that compo- gawatt hours. In relation to moderately emis- nent of the renewable energy target policy. sions intensive industries, those industries For those reasons, the government is not sup- receive 60 per cent above the 9½ thousand porting these amendments. gigawatt hours. Senator XENOPHON (South Australia) I again say we spent quite a substantial (5.35 pm)—I indicate that I will, on balance, amount of time as a government, in the con- support the opposition’s amendments, for the text of both the CPRS and the renewable reasons outlined by Senator Birmingham. I energy target discussions, engaging with in- have made that clear to the government and dustry on this issue. We remain committed to the opposition previously. the agreement we entered into, which is the Question put: one Senator Birmingham referenced. His That the amendments (Senator Birming- difficulty, however, is that it is actually not ham’s) be agreed to. applicable today because there is no price on The committee divided. [5.40 pm] carbon because the CPRS did not pass. The additional assistance being sought by the (The Temporary Chairman—Senator PM opposition’s amendments is effectively to put Crossin) in place the additional assistance which was Ayes………… 34 agreed to by the government in the context Noes………… 32 of the passage of the CPRS. Majority……… 2 I also want to make this point: whether it is in relation to waste coalmine gas or these AYES amendments, the opposition is putting for- Abetz, E. Adams, J. ward amendments that reflect a willingness Back, C.J. Barnett, G. to see higher electricity prices. If there is a Bernardi, C. Birmingham, S. greater level of exemption under the renew- Boswell, R.L.D. Boyce, S. Brandis, G.H. Bushby, D.C. * able energy target, the target does not Cash, M.C. Coonan, H.L. change. It just means the costs are borne by Cormann, M.H.P. Eggleston, A. other users, and other users include house- Ferguson, A.B. Fielding, S. holds. That is part of the balance here, and Fierravanti-Wells, C. Fifield, M.P. on this issue we respectfully suggest that the Fisher, M.J. Heffernan, W. opposition has got the balance wrong and is Humphries, G. Joyce, B. seeking to provide additional support that Kroger, H. Macdonald, I. Mason, B.J. Minchin, N.H. reflects an agreement in relation to passage Parry, S. Payne, M.A. of the CPRS and a cumulative cost increase, Ronaldson, M. Ryan, S.M. but that is no longer the case. Scullion, N.G. Trood, R.B. Essentially the opposition are asking other Williams, J.R. Xenophon, N. users of electricity to additionally cross- NOES subsidise the emissions-intensive trade- Arbib, M.V. Bilyk, C.L. exposed sector, and they are asking them to Brown, B.J. Brown, C.L. do that in relation to the renewable energy Cameron, D.N. Carr, K.J. target component that was their policy. For Collins, J. Conroy, S.M. Crossin, P.M. Farrell, D.E.

CHAMBER Wednesday, 23 June 2010 SENATE 4181

Faulkner, J.P. Feeney, D. want it recorded that the government has Forshaw, M.G. Furner, M.L. opposed that amendment but we recognise Hanson-Young, S.C. Hogg, J.J. the opposition and the Greens have sup- Hurley, A. Hutchins, S.P. ported that amendment, so we do not have Ludlam, S. Marshall, G. McEwen, A. McLucas, J.E. the support of the chamber. I will not be call- Milne, C. Moore, C. ing a division. O’Brien, K.W.K. * Pratt, L.C. The TEMPORARY CHAIRMAN—The Sherry, N.J. Siewert, R. question now is that the Renewable Energy Stephens, U. Sterle, G. (Electricity) Amendment Bill 2010 as Wong, P. Wortley, D. Question agreed to. amended be agreed to and that the Renew- able Energy (Electricity) (Charge) Amend- The TEMPORARY CHAIRMAN ment Bill 2010 and the Renewable Energy (Senator Crossin)—Order! The time for this (Electricity) (Small-scale Technology Short- debate has expired. The question is that the fall Charge) Bill 2010 be agreed to without remaining amendment on sheet 6116 circu- requests for amendments. lated by Senator Xenophon be agreed to. Question agreed to. Senator XENOPHON (South Australia) (5.43 pm)—by leave—I move amendment Renewable Energy (Electricity) Amend- (8) on sheet 6116 in an amended form—that ment Bill 2010 reported with amendments is, by deleting the words ‘that has demon- and Renewable Energy (Electricity) (Charge) strated its energy efficiency is to’: Amendment Bill 2010 and Renewable En- ergy (Electricity) (Small-scale Technology (8) Schedule 1, page 67 (after line 6), after item 124, insert: Shortfall Charge) Bill 2010 reported without amendments or requests; report adopted. 124B After Division 2 of Part 4 The DEPUTY PRESIDENT—The time Insert: allotted for the consideration of the remain- Division 2AA—Emerging renewable en- ing stages of these bills has expired. The ergy technologies question now is that the remaining stages of 40AB Inclusion of emerging renewable the bills be agreed to and they now be read a energy technologies third time. The Minister may, by legislative in- strument, determine that an emerging Question agreed to. renewable energy technology be in- Bills read a third time. cluded as a renewable energy technol- COMMITTEES ogy for the purpose of the scheme con- stituted by this Act. Scrutiny of Bills Committee Question agreed to. Report The TEMPORARY CHAIRMAN Senator PARRY (Tasmania) (5.50 pm)— (Senator Crossin)—The question is now On behalf of the Chair of the Standing that the Greens amendment (R7) on sheet Committee for the Scrutiny of Bills, Senator 6163 be agreed to. Coonan, I present the seventh report of 2010 of the Senate Standing Committee for the Question agreed to. Scrutiny of Bills. I also lay on the table Scru- Senator WONG (South Australia— tiny of Bills Alert Digest No 7 of 2010, dated Minister for Climate Change, Energy Effi- 23 June 2010. I move: ciency and Water) (5.45 pm)—by leave—I That the Senate take note of the report.

CHAMBER 4182 SENATE Wednesday, 23 June 2010

I seek leave to incorporate a tabling state- I also draw the Senate's attention to a possible ment in Hansard. issue in relation to the Insurance Contracts Amendment Bill 2010 that has been resolved. Leave granted. A concern was raised in Alert Digest No.5 about The statement read as follows— the possible retrospective application of proposed SENATE STANDING COMMITTEE FOR new section 27A of the Insurance Contracts Act THE SCRUTINY OF BILLS 1984. TABLING STATEMENT The Treasurer has advised the Committee that Alert Digest No. 7 and Seventh Report of 2010 there will in fact be a beneficial effect to holders of existing contracts and also that because the 23 June 2010 provision will commence on Royal Assent it only In tabling the Committee's Alert Digest No. 7 of affects future rights and liabilities that arise from 2010 and its Seventh Report of 2010 I draw the existing contracts. Senate’s attention to the Committee's views on: The Treasurer further advised that the bill is not • the level of responsiveness to issues raised intended to confer additional remedies becoming by the Scrutiny Committee; available to life insurers in current litigation. • the Insurance Contracts Act assurance from In its Seventh Report the Committee thanks the the Treasurer in relation to current litigation; Treasurer for his comprehensive response and and recommends and requests that the Treasurer • the treason offence comments. amends the explanatory memorandum to make On behalf of the Committee I would like to ac- this advice explicit. knowledge the timely and comprehensive replies In relation to current matters of concern to the the Committee is receiving from Ministers to Committee I draw the Senate's attention to the concerns raised by the Committee. The current National Security Legislation Amendment Bill. responses are outlined in the Committee's Seventh The Committee recently commented on this bill Report of 2010. The Committee uses the informa- in its Alert Digest No. 5 and a comprehensive tion provided to further analyse possible concerns response from the Attorney-General is included in that a bill may breach its terms of reference. In today's Seventh Report of 2010. many instances the additional information satis- Despite the further information provided, one fies the Committee and no further action is item in relation to a treason offence remains a needed. particularly significant issue of concern to the In particular, in scrutinising the amendments to Committee. Schedule 1, item 15 of the bill seeks bills for Alert Digest No. 7 the Committee had to provide that a Proclamation declaring an en- occasion to thank Ministers for responding to emy to be at war with the Commonwealth will issues identified by the Committee and acting to take effect immediately, rather than following the implement changes to address the concerns. usual Legislative Instruments Act rule that it For example the Scrutiny Committee had re- commences when it is made public by its registra- quested that further explanation in relation to tion on the Federal Register of Legislative In- some items in the Comsuper and Governance of struments. Australian Government Superannuation Scheme The Attorney-General has resisted the Commit- bills be included in the explanatory memoranda. tee's request to include in the bill a requirement The Treasurer has since tabled revised explana- for making the Proclamation public at the time it tory memoranda for both of these bills addressing is made, explaining that a requirement for publi- the concerns raised. The Committee thanks the cation could undermine the effect of the provision Treasurer for taking action to make available this if means of communication are adversely im- additional information as it should assist Senators pacted because Australia is at war. and the public to better understand the context Although there may be circumstances in which and intended operation of these items. communication is limited, the Committee does

CHAMBER Wednesday, 23 June 2010 SENATE 4183 not accept that the reasons offered justify the gen- MINISTERIAL STATEMENTS eral exclusion of a publication requirement. Afghanistan In the Committee's view the publication of a Proclamation should usually be contemporaneous Senator FAULKNER (New South with its commencement. In addition, the public Wales—Minister for Defence) (5.51 pm)— should be informed not only of the making of a by leave—I indicate to the Senate that at the Proclamation, but also of its effect (in this in- end of this brief statement in the chamber I stance giving rise to new criminal liability). will seek leave for the full ministerial state- In view of its concern that this provision will ment on Afghanistan to be incorporated in trespass unduly on personal rights and liberties, in Hansard. Today I present my fourth ministe- its Seventh Report the Committee recommends rial statement on Afghanistan. Australia re- and requests that the Attorney-General amends mains committed to our mission in Afghani- the bill to address these concerns. stan. We remain committed to denying sanc- The full details of these matters are available in tuary to terrorists, to working to stabilise the the alert digest and report I am tabling today, and country and to our alliance with the United I commend the Committee’s Alert Digest No. 7 of States. 2010 and Seventh Report of 2010 to the Senate. The past fortnight has been an exception- Question agreed to. ally tough one for our troops in Afghanistan. Senators’ Interests Committee On Monday, Private Tim Aplin, Private Ben Register Chuck and Private Scott Palmer were killed Senator FIFIELD (Victoria)—Deputy and a further seven soldiers injured in a heli- Manager of Opposition Business in the Sen- copter crash in Afghanistan. This closely ate (5.50 pm)—On behalf of the Standing follows the loss of Sapper Darren Smith and Committee of Senators’ Interests, I present Sapper Jacob Moerland earlier this month. the following registers: As we struggle to come to terms with these (a) senators’ interests incorporating statements losses, we acknowledge with profound grati- of registrable interests and notifications of tude the sacrifice these young soldiers have alterations of interests of senators lodged be- made and acknowledge too the willing tween 24 November 2009 and 21 June 2010; commitment of their comrades at arms. On and behalf of the Australian government, and (b) gifts to the Senate and the Parliament, incor- again of all senators, I offer my condolences porating declarations of gifts lodged between to the families, friends, colleagues and loved 2 December 2008 and 21 June 2010. ones of our fallen soldiers. Our thoughts are Finance and Public Administration with them all. Our thoughts are also with the References Committee soldiers injured on Monday and their fami- Additional Information lies, and I wish them, as I know we all wish them, a speedy recovery. Senator BILYK (Tasmania) (5.51 pm)— On behalf of the Chair of the Finance and The terrible loss of our soldiers has quite Public Administration References Commit- understandably heightened the debate around tee, Senator Ryan, I present additional in- Australia’s mission in Afghanistan. It is im- formation received by the Finance and Pub- portant that Australians understand this con- lic Administration References Committee on flict, understand why we are there and un- its inquiry into native vegetation laws, derstand why it is important for us to con- greenhouse gas abatement and climate tinue to play our part. Our fundamental ob- change measures. jective in Afghanistan is to combat a clear

CHAMBER 4184 SENATE Wednesday, 23 June 2010 threat from international terrorism to both situation has not improved. I acknowledge international security and our own national that there has been a recent increase in vio- security. Australia cannot afford, and Austra- lence, but the Senate needs to understand lians cannot afford, to let Afghanistan again that we will see more violence as ISAF be- become a safe haven and training ground for gins to contest areas held by the Taliban. As terrorist organisations. Organisations such as we bring the fight to the Taliban in more Al Qaeda that receive Taliban support have a parts of the country, this will lead to more global reach and are a global threat. The Bali incidents. But we are making headway. And bombing on 12 October 2002, which killed the military build-up first announced by 202 people, including 88 Australians, was President Obama last year is not yet com- carried out by terrorists with direct links to plete. So the full benefit of the additional Afghanistan. These same individuals were forces is yet to play out. The United Nations’ involved in the 2004 attack against the Aus- report also acknowledges that there have tralian embassy in Indonesia and the Jakarta been significant positive developments and hotel bombings last year that killed more underlines the need for the international Australians. Left unchecked, the dangerous community to continue to support Afghani- influence of such groups could again, as in stan. the past, rapidly extend into our own region. Earlier today, I outlined the new arrange- Progress is being made towards the goal ments for Oruzgan province after the Dutch of making sure Afghanistan is not a safe ha- forces begin to draw down in August. The ven for terrorists. It is steady, it is incre- Dutch elections have been held, but a coali- mental, but it is progress nevertheless. Six tion government is yet to be formed. In the months ago, in Marjah, provincial govern- interim, I have discussed the prospects for an ance was in disarray, there were no children ongoing Dutch commitment in Oruzgan with in school and health care was almost non- my counterpart from the Netherlands, Minis- existent. Today there are district governors, ter van Middelkoop. NATO Secretary- 81 schoolteachers and new clinics being General Rasmussen has again called on the built—small steps, perhaps, but important future Dutch government to consider an on- ones. going commitment in Afghanistan, a call that In Oruzgan, the ADF continues security Australia strongly supports. As soon as the operations throughout the province to pro- new government is formed, I will, as a prior- vide safe, secure spaces for development ity, engage with my new counterpart on work—contributing to our second fundamen- maintaining a Dutch contribution in tal goal of stabilising Afghanistan. Working Oruzgan. with AusAID, ADF personnel have been After the Netherlands starts drawing down building schools. Government infrastructure after August 1, a new multinational Interna- has been installed. Living standards are im- tional Security Assistance Force structure proving in one of the poorest regions of Af- will take command in Oruzgan. Under the ghanistan. The ADF in Oruzgan continue to new arrangements, the United States will play an important and invaluable role in sta- lead a ‘Combined Team Uruzgan’ under an bilising the province. ISAF flag. More details will be released as Of course, there have been setbacks, and these new arrangements are finalised, and I the fight is not yet over. A recent report by will leave any further comments about the the United Nations states that the security US military contribution to our US allies. But given the commitments which have been

CHAMBER Wednesday, 23 June 2010 SENATE 4185 made to contribute to the new combined by the French. The ADF currently mentors team, we are satisfied that the new CTU will the 2nd, 3rd, 4th and 5th Kandaks, and the more than adequately replace the current brigade headquarters. capabilities of the Dutch in the province. There is growing evidence that the Afghan Slovakia and Singapore will also continue to National Army 4th Brigade is maturing to- play valuable roles in this new multinational wards its goal of independent operations. arrangement. Afghan soldiers show great courage under Australia will play a larger part in the fire and in facing the threat of IEDs. Re- Provincial Reconstruction Team. The PRT is cently, on Operation THOR CHAR, soldiers vital to the entire coalition efforts in of the 4th Brigade planned and conducted Oruzgan—in fact it is the heart of our coun- their own resupply operation to Kandahar—a terinsurgency effort. PRTs are teams of civil- significant step forward for the Brigade. In ians and military personnel working together resupply operations since late last year, the to facilitate the delivery of tribal outreach, 4th Brigade has moved from observing and governance and development activities at the participating, to planning and leading these provincial and district level. activities. Progress may seem slow, but the They are key to delivering the ‘build’ part 4th Brigade is being well trained and that is of ISAF’s counterinsurgency strategy of reflected in its growing capability. ‘shape, clear, hold and build’. By mentoring On the basis of solid progress in our train- and assisting local officials, and by support- ing efforts to date, CDF has recently advised ing economic and infrastructure develop- me that within two to four years we should ment, the PRT helps extend the reach of the be able to transition the main security re- Afghan government in Oruzgan, and win the sponsibility for the province to the Afghan hearts and minds of the people. The PRT is National Army. Following a successful tran- fundamental to the stabilisation efforts across sition of this responsibility, I expect consid- the province and the eventual transition of eration would be given for the ADF to move responsibility to Afghan authorities. into an overwatch role. Our troops performed Australia will provide a civilian leader for this role in Iraq for around 12 months. the Provincial Reconstruction Team (PRT), While we are seeing some operational increasing our role in stabilisation and re- successes, building an army takes time and building efforts. patience. It is measured in years, not in Working with our PRT leader will be weeks or months. The Afghan National around 30 other Australian civilians from the Army currently stands at 125,000 strong, and Department of Foreign Affairs, AusAID and is on track to meet its November target of the Australian Federal Police, contributing to 134,000 troops, several months ahead of governance and development, infrastructure schedule. Overall the army will grow to reconstruction and police training. around 172,000 by October 2011. Australia’s main focus in Afghanistan will We are one of 46 countries contributing to continue to be training, with Australia taking the effort in Afghanistan. We are there under over the training for the entire 4th Brigade of a United Nations mandate, and we are there the Afghan National Army. The ADF is in at the invitation of the Afghan government. the process of assuming responsibility for Our aims in Afghanistan are clear. For our mentoring the entire ANA 4th Brigade, in- own protection, we need to secure Afghani- cluding the kandak currently being mentored stan and ensure terrorist groups no longer

CHAMBER 4186 SENATE Wednesday, 23 June 2010 find safe havens there. We need to support and acknowledge, too, the willing commitment of the Afghan people as they begin to take re- their comrades at arms. sponsibility for the security and stability of On behalf of the Australian Government, and of their nation. And we need to stand with our all senators, I offer my condolences to the fami- friends and partners in this endeavour. lies, friends, colleagues and loved ones of our fallen soldiers. Our thoughts are with them. I am confident that our strategy in Af- ghanistan is right. It is in Australia’s interests The terrible loss of our soldiers has quite under- standably heightened the debate around Austra- that we play our part in this international lia’s mission in Afghanistan. It is important that effort. It has not been, and will not be, with- Australians understand this conflict, understand out challenges. And I am painfully aware why we are there, and understand why it is impor- that it has not been without loss. There could tant for us to continue to play our part. be more losses ahead, but we must stay the Our fundamental objective in Afghanistan is to course in Oruzgan. We must deliver on our combat a clear threat from international terrorism commitment to train the 4th Brigade of the to both international security and our own na- Afghan National Army so they can take over tional security. Australia cannot afford, and Aus- responsibility for their own security. It will tralians cannot afford, to let Afghanistan again not be easy. We have already paid very, very become a safe haven and training ground for ter- painfully—16 Australian families have paid rorist organisations. Organisations such as Al very, very painfully—a very heavy price. But Qaeda, that receive Taliban support, have a global reach and are a global threat. The Bali bombing I would say to all senators the cost of failure on 12 October 2002 which killed 202 people, would be much higher. including 88 Australians, was carried out by ter- Leave granted. rorists with direct links to Afghanistan. These The statement read as follows— same individuals were involved in the 2004 attack against the Australian embassy in Indonesia, and Statement by the Minister for Defence Senator the Jakarta hotel bombings last year that killed the Hon John Faulkner more Australians. Left unchecked, the dangerous Ministerial Statement on Afghanistan 23 June influence of such groups could again, as in the 2010 past, rapidly extend into our own region. Mr President, today I present my fourth Ministe- Progress is being made towards the goal of mak- rial Statement on Afghanistan. ing sure Afghanistan is not a safe haven for ter- Australia remains committed to our mission in rorists. It is steady, it is incremental, but it is pro- Afghanistan. We remain committed to denying gress nevertheless. Six months ago, in Marjah, sanctuary to terrorists; to working to stabilise the provincial governance was in disarray, there were country; and to our alliance with the United no children in school and health care was almost States. non-existent. Today there are district governors, 81 school teachers and new clinics being built. The past fortnight has been an exceptionally Small steps, perhaps, but important ones. tough one for our troops in Afghanistan. On Monday, Private Tim Aplin, Private Ben Chuck, In Uruzgan, the ADF continues security opera- and Private Scott Palmer were killed, and a fur- tions throughout the province to provide safe, ther seven soldiers injured, in a helicopter crash secure spaces for development work - contribut- in Afghanistan. This closely follows the loss of ing to our second fundamental goal of stabilising Sapper Darren Smith and Sapper Jacob Moerland Afghanistan. Working with AusAID, ADF per- earlier this month. sonnel have been building schools. Government infrastructure has been installed. Living standards As we struggle to come to terms with these are improving in one of the poorest regions of losses, we acknowledge, with profound gratitude, Afghanistan. The ADF in Uruzgan continue to the sacrifice these fine young soldiers have made

CHAMBER Wednesday, 23 June 2010 SENATE 4187 play an important and invaluable role in stabilis- Slovakia and Singapore will also continue to play ing the province. valuable roles in this new multinational arrange- Of course, there have been setbacks, and the fight ment. is not yet over. A recent report by the United Na- Australia will play a larger part in the Provincial tions states that the security situation has not im- Reconstruction Team (PRT). The PRT is vital to proved. I acknowledge that there has been a re- the entire Coalition’s efforts in Uruzgan—in fact cent increase in violence, but the Senate needs to it is the heart of our counterinsurgency effort. understand that we will see more violence as PRTs are teams of civilians and military personnel ISAF begins to contest areas held by the Taliban. working together to facilitate the delivery of tribal As we bring the fight to the Taliban in more parts outreach, governance and development activities of the country, this will lead to more incidents. at the provincial and district level. But we are making headway And the military They are key to delivering the “build” part of build-up first announced by President Obama last year is not yet complete. So the full benefit of the ISAF’s counterinsurgency strategy of “shape, clear, hold and build”. By mentoring and assisting additional forces is yet to play out. The United Nations’ report also acknowledges that there have local officials, and by supporting economic and infrastructure development, the PRT helps extend been significant positive developments, and un- derlines the need for the international community the reach of the Afghan Government in Uruzgan, and win the hearts and minds of the people. The to continue to support Afghanistan. PRT is fundamental to the stabilisation efforts Earlier today, I outlined the new arrangements for across the province and the eventual transition of Uruzgan province after the Dutch forces begin to responsibility to Afghan authorities. drawdown in August. The Dutch elections have been held, but a coalition Government is yet to be - Australia will provide a civilian leader for the Provincial Reconstruction Team (PRT), increas- formed. In the interim, I have discussed the pros- pects for an ongoing Dutch commitment in ing our role in stabilisation and rebuilding efforts. Uruzgan with my counterpart from the Nether- - Working with our PRT leader will be around 30 lands, Minister van Middelkoop. NATO Secretary other Australian civilians from the Department of General Rasmussen has again called on the future Foreign Affairs, AusAID and the Australian Fed- Dutch Government to consider an on-going eral Police, contributing to governance and de- commitment in Afghanistan, a call that Australia velopment, infrastructure reconstruction and po- strongly supports. As soon as the new Govern- lice training. ment is formed, I will, as a priority, engage with Mr President, Australia’s main focus in Afghani- my new counterpart on maintaining a Dutch con- stan will continue to be training, with Australia tribution in Uruzgan. taking over the training for the entire 4th Brigade After the Netherlands starts drawing down after of the Afghan National Army. The ADF is in the August 1, a new multinational International Secu- process of assuming responsibility for mentoring rity Assistance Force (ISAF) structure will take the entire Afghan National Army 4th Brigade, command in Uruzgan. Under the new arrange- including the kandak currently mentored by the ments, the United States will lead a multi-national French. The ADF currently mentors the 2nd, 3rd, “Combined Team Uruzgan” (CTU) under an 4th and 5th Kandaks, and the Brigade headquar- ISAF flag. More details will be released as these ters. new arrangements are finalised, and I will leave There is growing evidence that the Afghan Na- any further comments about the United States’ tional Army 4th Brigade is maturing towards its military contribution to our US allies. But given goal of independent operations. Afghan soldiers the commitments which have been made to con- show great courage under fire and in facing the tribute to the new Combined Team, we are satis- threat of IEDs Recently, on Operation THOR fied that the new CTU will more than adequately CHAR, soldiers of the 4th Brigade planned and replace the current capabilities of the Dutch in the conducted their own resupply operation to Kan- province. dahar - a significant step forward for the Brigade.

CHAMBER 4188 SENATE Wednesday, 23 June 2010

In re-supply operations since late last year, the 4th exceptionally good work in very difficult and Brigade has moved from observing and partici- dangerous conditions To add to our military ef- pating, to planning and leading these activities. forts, the Prime Minister in April this year an- Progress may seem slow, but the 4th Brigade is nounced a significant increase in our civilian being well trained and that is reflected in its commitment to Afghanistan, reflecting our com- growing capability. mitment to strengthening the legitimate political, On the basis of solid progress in our training ef- legal, economic and security institutions of Af- forts to date, CDF has recently advised me that ghanistan and providing greater within two to four years we should be able to civilian assistance. Partnering on the civilian side transition the main security responsibility for the is the way to do that, just as it is on the military province to the Afghan National Army. Following side. a successful transition of this responsibility, I There is no doubt that there is a critical need for expect consideration would be given for the ADF more civilian development in the province, and to move into an overwatch role. Our troops per- we are now increasing our work in the civilian formed this role in Iraq for around 12 months. sphere, with appropriate protection. Australia is While we are seeing some operational successes, sending additional civilians skilled in diplomacy, building an Army takes time and patience. It is governance and development, reconstruction and measured in years, not weeks or months. The police training, to complement the work of the Afghan National Army currently stands at around ADF in Uruzgan. This emphasis on development 125,000 strong, and is on track to meet its No- and capacity building should ensure a brighter vember target of 134,000 troops, several months future for the people of Uruzgan and create a ahead of schedule. Overall the Army will grow to strong foundation for the eventual transition of around 172,000 by October 2011. the province to full Afghan responsibility. Spe- Mr President, in addition to the changes to leader- cifically, ship arrangements in Oruzgan, there are also • The Department of Foreign Affairs and Trade some other major developments in the command is boosting its personnel. This additional and control structures in southern Afghanistan. commitment will manage Australia’s politi- ISAF’s Regional Command (South) has been split cal and economic relationships both in into two areas, with the establishment of an addi- Uruzgan and in Kabul, and maintain our rela- tional Regional Command (South-West) tionships with Afghanistan and our interna- (RC(SW)). tional partners; The new RC(SW) covers Helmand and Nimruz • AusAID has increased its staff in Afghani- provinces. The new Regional Command (South) stan, to develop local service delivery, and includes the provinces of Kandahar, Uruzgan, • support the Afghan Government in building Zabul and Daikundi. These changes were made to health and education services, infrastructure optimise a Regional Command that has grown and agriculture; exponentially since its transfer to NATO’s com- • mand in 2006. The Australian Federal Police has increased its commitment. It will expand its training of With more than 50,000 ISAF troops and eight the Afghan National Police to improve secu- Afghan National Army Brigades operating across rity for the people of Uruzgan; six different provinces, the volume of activity was • too much for just one command. The new struc- The ADF will provide a dedicated Force ture will allow the two commands to better focus Protection element to protect the increased on the priority areas of operations in the south — civilian mission. in and around Marjah and Kandahar. • And this increased civilian effort from the An Increased Civilian Effort Department of Foreign Affairs, AusAID and the AFP comes on top of a longstanding De- Mr President, the men and women of the Austra- fence and civilian reconstruction effort in lian Defence Force have done, and continue to do, Afghanistan.

CHAMBER Wednesday, 23 June 2010 SENATE 4189

The Senate is well aware that the challenges and tions to rid the area of the Taliban. ISAF will cre- problems in Afghanistan are complex and inter- ate a “rising tide” of security to displace insurgent laced. But we are responding to these challenges influence. By year’s end approximately 20,000 through an expanded commitment to the mission Coalition and Afghan troops will be securing this that addresses governance, security and develop- population centre from insurgent influence, up ment. This will help the Afghans to take charge of from just 7,500 now. ISAF is also working hard their own affairs across all the areas critical to to strengthen provincial government structures in stability—not just security. Kandahar and assist the Afghan National Security These efforts will not only assist the Afghans. Forces. They will also help speed our military mission to Kandahar is crucial to stability in southern Af- a successful conclusion. ghanistan. It was the capital of Afghanistan under Operational Update Taliban rule between 1996 and 2001, and remains critically important to the Taliban to this day. The From Marjah to Kandahar province’s porous border with accentu- Mr President, the ADF continues to support ates the difficulties Afghan and ISAF forces face broader ISAF and Afghan efforts to fight the in- in containing and reducing the insurgency. The surgency and strengthen the Afghan National border region is difficult terrain and often serves Security Forces (ANSF). As outlined in my pre- as a temporary sanctuary for the Taliban, despite vious statement to Parliament, the Afghan Na- increasing efforts by Pakistani authorities against tional Security Forces and ISAF have pushed into insurgents in this area. Marjah in central Helmand to protect the popula- As a neighbouring province, security in Kandahar tion, reverse the Taliban’s momentum, and create is especially critical to security in Uruzgan. The the space to develop Afghan security and govern- ADF has conducted, and will continue to conduct, ance capacity. Militarily, the Commander of ISAF operations in northern Kandahar from time to Forces in Afghanistan (COMISAF) reports that time in support of our efforts in Uruzgan. We operations in Marjah are proceeding well. stand ready to contribute further as Coalition ef- We should not be surprised that the biggest chal- forts are boosted there over the coming months. lenge in Marjah is strengthening Afghan govern- ADF Achievements in Uruzgan ance. ISAF continues to assist the Afghan Gov- ernment to nurture legitimate government struc- In Uruzgan, the tempo of ADF operations remains tures, but we must be patient. It will take time. high. With the Afghan National Army, the ADF is supporting ISAF’ s strategy of securing the key Positive developments are happening on the population districts, food producing areas and key ground; several key government positions have transport corridors. That translates into safer vil- been filled in both Marjah and Nad-e Ali districts. lages, a better food supply and more economic A series of election shuras, or community meet- activity —all crucial aspects of defeating the in- ings, in Nad-e Ali, and a newly elected 45- surgency. member district community council, have estab- lished governance structures where none existed The Special Operations Task Group continues its before. dangerous work in and around Uruzgan to disrupt insurgent networks; restrict insurgent mobility The next challenge for ISAF and the Afghan and supply routes; and stem the flow of IEDs Government is the area around the southern city These efforts, conducted alongside the Afghan of Kandahar in another province bordering Provincial Police Reserve Company of Uruzgan, Uruzgan. The Coalition is approaching this region help protect the population and provide an envi- in a very careful and considered manner, with ronment in which Afghan citizens can live and shuras bringing government officials together work safely. They also directly contribute to the with local leaders and representatives to find safety and security of other Australian, Afghan ways to marginalise the insurgents and stabilise and coalition security forces in the area. communities. President Karzai has advised local leaders to prepare themselves for sustained opera-

CHAMBER 4190 SENATE Wednesday, 23 June 2010

In April, the Special Operations Task Group sup- tors’ Office, with construction expected to com- ported a community-led push to expel Taliban mence over the coming months. This will assist insurgents from the town of Gizab, north of the capacity building in the law and justice area. And Chora valley. This was a clear indication that the in late May, a class of 11 young Afghan men insurgents are not welcome by the population at graduated from a three week short course in con- large. Fighting side-by-side, the people of Gizab, struction at the ADF-run Trade Training School in the Afghan National Security Forces, and Austra- Tarin Kowt. More than 200 young men have now lian Special Forces troops pushed the insurgents graduated since this school was established in out of the town. 2006. And this month, Afghan security troops and Aus- The ADF continues to achieve its mission within tralian Special Forces have been conducting of- an annual average of around 1550 personnel de- fensive operations in an area in northern Kanda- ployed. Sometimes the number drops, as seasonal har that has served as a staging point for insur- elements such as the Chinook helicopter detach- gents’ entry into Uruzgan province. This was a ment are withdrawn. At other times, the number is large scale disruption operation that successfully slightly higher, as major combat units hand over targeted Taliban networks in an insurgent strong- to their replacements. The Government and the hold. Defence leadership are careful to manage the size Similarly, the Mentoring Task Force (MTF) has of the ADF presence to ensure it is appropriately conducted operations throughout Uruzgan to focussed and properly resourced to carry out its counter the threat of insurgents and their use of mission. For now, this commitment is about right, weapons, such as IEDs Together with its part- enabling the ADF to achieve its mission and carry nered forces in the Afghan National Army 4th out all of the tasks it has at hand. Brigade, the MTF has helped conduct several Casualties shuras throughout the province; established and Mr President, I want to recognise the impact of occupied a new Patrol Base in the Mirabad Val- this conflict on our serving men and women. In ley; continued to deny insurgents access to weap- addition to the tragic deaths of the past few days, ons caches; and further prepared building sites for this year 35 of our soldiers have been wounded or development works. In the first weeks of May, injured —some very seriously. 135 have been 4th Brigade kandaks, partnered with Australian wounded or injured since OPERATION SLIPPER troops, found 55 caches of weapons —a great commenced in 2001. Again I acknowledge the indicator of the increasing skill and capability of sacrifices of these brave soldiers and I wish them Afghan soldiers. all the best for a full and speedy recovery. We can be confident that progress is being made Each time I visit our servicemen and women in in Uruzgan and each day the ADF is making a Afghanistan, or meet with a soldier who has come difference, making the province a safer, better back to Australia after being wounded, I am im- place. pressed by their resilience, professionalism, de- Since my last statement, there have been a num- termination and courage. Their commitment to ber of notable achievements in the development the task at hand is something that all Australians sector. For example, on 11 May, the Tarin Kowt can be proud of Boys’ Primary School was officially opened. It These men and women understand the importance has 35 new classrooms able to accommodate hun- of their work. They know that it is making a dif- dreds of students. This $1.2 million dollar project ference to the future of Afghanistan and its peo- has been a culmination of hard work by succes- ple. They deserve our respect, and our very strong sive ADF contingents and AusAID, in coordina- support. tion with the Uruzgan Provincial Government. Our coalition partners have also suffered losses in Forty-two thousand children now attend school in recent operations. Since the beginning of the year, Uruzgan Province. In addition, suitable land has ISAF forces have lost 2811 personnel, and Afghan been identified and surveyed and a design brief security forces have suffered even greater losses. has been conducted for the Tarin Kowt Prosecu-

CHAMBER Wednesday, 23 June 2010 SENATE 4191

I extend my condolences to the families, friends committed to a thorough investigation and full and colleagues of all the fallen. Australia stands transparency of the outcomes. by each and every one of the nations in the ISAF Since July 2008, the Australian Defence Force coalition, as we work together to bring lasting has reviewed 16 incidents. Two remain under peace and stability to Afghanistan. consideration. The 12 February 2009 incident, in Mr President, of the 35 Australian soldiers so far which six Afghans were killed and four were in- wounded this year, 25 were wounded in impro- jured, is still being considered by the Director of vised explosive device attacks. IEDs remain the Military Prosecutions. She is an independent primary weapon of the insurgents, who constantly statutory officer and until she has finalised her change and vary the methods by which they are consideration of this matter, I cannot comment employed IEDs are a lethal and indiscriminate further on it. A public announcement will be weapon, killing soldiers and civilians alike. Their made once a determination has been made. use is deplorable, and serves to remind us of the The outcome of the investigation into the incident callousness of the Taliban and their disregard for on II August 2009 resulting in the death of one innocent Afghans. Afghan National Police officer and the injury to a To help counter the IED threat, the Government second Afghan National Police officer is expected recently announced an extra $1.1 billion invest- to be made public in the near future. ment in force protection capabilities for Austra- I am also aware of some recent media reporting lian personnel. This investment takes into account concerning an incident in Gizab where there were the evolving nature of the risk from IEDs and claims made of civilian casualties. There was includes measures for better intelligence on IED fighting in that area, but the Australian Defence makers, greater protection and firepower for ADF Force has conducted a detailed review of the alle- Vehicles, and upgraded body armour. gations and, based on the available information, Our force protection initiatives also support the has determined Australian forces had no involve- acquisition of an improved counter rocket, artil- ment in any incidents of civilian casualties. Those lery and mortar attack capability, to warn of in- claims were found to be baseless. coming rocket attacks, so personnel can seek pro- I can inform the Senate of the findings of a re- tection. Tarin Kowt base suffered 4 rocket attacks view I referred to in my Ministerial Statement of during April and May, and this system should March 2010 concerning the ADF’s involvement give our troops valuable additional time to take in an operation in the village of Kakarak in April shelter. 2009. This review was undertaken at the request As I have said previously, the Government wants of ISAF and concluded that there was no sub- to see all our troops complete their mission and stance to allegations of breaches of international return home safely as soon as possible. While humanitarian law by Australian forces. The ADF they remain in Afghanistan, improving protection is now making sure it exhausts all lines of enquiry for our troops and our civilians is my highest before closing the matter. priority. Pakistan Civilian casualties Mr President, the challenges we face in Afghani- Mr President, may I also stress that the ADF takes stan extend beyond that country’s borders. every possible precaution to avoid harming civil- Pakistan’s ability to address its internal security ians. Fundamental to our mission in Afghanistan concerns is critical not only to the stability and is the protection of the local Afghan communities long term development of Pakistan itself, but also where we operate. ISAF is making real progress the wider South Asia region. It is important that in this area. Regrettably though, civilian casual- countries continue to engage with Pakistan to ties are sometimes a tragic reality in conflict. assist them in the fight against extremism within Where incidents do occur or allegations are made, their borders. both the Chief of the Defence Force and I are Australia and Pakistan share a longstanding and broad-based friendship across security, develop-

CHAMBER 4192 SENATE Wednesday, 23 June 2010 ment and economic fronts. We are committed to ment, counter-terrorism and counter-piracy activi- building on that friendship to assist Pakistan’s ties in the Middle East Area of Operations. efforts to confront violent extremism. I appreciate I received detailed briefings from Commander the sacrifices that Pakistan is making in its strug- Heath Robertson and his officers on their activi- gle against extremism, and extend my condo- ties. I was pleased to see first-hand the work of lences for Pakistan’s significant military and ci- the men and women of the Royal Australian Navy vilian casualties. in contributing to maritime security in the Middle On my way to the recent meeting of NATO De- East —an integral part of OPERATION fence Ministers, I visited Pakistan, the first ever SLIPPER. HMAS Parramatta directly supports Australian Defence Minister to do so, to discuss our mission in Afghanistan; deterring drugs, peo- Australia’s support for Pakistan’s efforts to com- ple, weapons and money trafficking activities that bat violent extremism. While there, I met with can support insurgent and international terrorist Pakistan’s President Zardari, my counterpart Min- networks. Our maritime contribution helps lower ister for Defence, Chaudry Ahmed Mukhtar, and the risk of terrorism and pirate attacks, which Joint Chief of the General Staff, General Tariq endanger the freedom and security of the area and Majid . key global trade routes. Pakistan welcomes Australia’s support. Pakistan’s Recent events Government particularly appreciates the increased Mr President, at the recent NATO Defence Minis- defence cooperation, which is focused on enhanc- ters’ meeting in Brussels, I received briefings on ing Pakistan’s counter-insurgency capability. Of the situation in Afghanistan from the military and particular note is the doubling over the next year civilian leaders responsible for ISAF’ s opera- of both Australia-based training positions offered tions. The meetings I had with NATO’s Secretary —to over 140 —and postgraduate scholarships — General, Anders Fogh Rasmussen, the Supreme to twelve. Allied Commander Europe, Admiral Stavridis and I also welcome the establishment of a counter- NATO’s Senior Civilian Representative in Kabul, insurgency focused exchange between the Austra- Mark Sedwill, were informative and valuable. I lian Defence College and the Pakistan Army’s also spoke with Afghan Minister for Defence Command and Staff College at Quetta. Abdul Rahim Wardak, US Secretary of Defense During my visit I signed the Defence Cooperation Robert Gates, and General McChrystal while at Memorandum of Understanding with Pakistan. NATO. This MOU establishes a framework for the man- I also met with the other nations actively engaged agement of a significantly increased Defence in the most difficult and dangerous part of Af- cooperation program between Australia and Paki- ghanistan —the southern area —at a Regional stan, and further strengthens the already strong Command (South) meeting. These discussions friendship between Pakistan and Australia. Fol- between the countries operating in the south are lowing my discussion with Minister Mukhtar, very useful opportunities to exchange information Australia and Pakistan will consider further ways and perspectives on progress in the fight across to develop our defence cooperation. Pakistan’s the south. relationships with nations like Australia are cru- Discussions at the NATO/ISAF meeting focused cial to providing it with the support and assistance not only on our military position, but also on the it is seeking for its efforts to counter violent ex- process of transition - returning responsibility for tremism. Those efforts, which will need to be security to the Afghan Government. This requires determined and comprehensive, are critical to further training, mentoring and capacity building global and regional security. for the Afghan security forces. Maritime Security Some parts of the country are stable and likely to My visit to Pakistan also gave me the opportunity transition back to full Afghan control quite soon. to visit one of our ANZAC frigates, HMAS Par- In others areas, Afghanistan will require the inter- ramatta, which is conducting maritime engage- national community’s support for some time. But

CHAMBER Wednesday, 23 June 2010 SENATE 4193 by focussing on improving governance and de- though it has a long way to go, the recent Peace velopment, and providing a secure environment Jirga has taken the first steps along a path that for these things to occur, Afghanistan should keep will be difficult and challenging. We will watch moving away from violence and towards stability. its progress keenly. Transition will be a key focus of the NATO Conclusion Summit that will be held in Lisbon in November Mr President, ISAF now has in place a clear strat- this year. Australia supports the view expressed egy endorsed by the 46 nations that comprise the by other countries, that transition needs to be Coalition. That strategy is working. Some aspects conditions-based. Both military and civilian im- of our progress are tangible and measurable: clin- provements need to be in place before we can be ics are built, children are learning, elections are confident that transition will be complete. held. Other parts are not as visible: young men Looking Ahead decide to leave the insurgency and return to their Mr President, as always, the coming months will homes; communities’ faith in their local govern- be busy. In July, the international community will ment improves. again meet, this time with Foreign Ministers in Mr President, we must be patient. Real progress is Kabul. The Kabul Conference is expected to rein- being made. NATO recently reported that in 2002, force the international community’s support for 9% of Afghans had access to healthcare; today rebuilding Afghanistan. Importantly, this meeting that figure is 65%. Afghan women hold almost a will also include regional countries such as Paki- quarter of the seats in parliament, in contrast to stan, India and China. Australia remains actively being barely visible under the oppressive Taliban engaged, and we will continue to ensure that our rule. The number of teachers has almost doubled voice is heard in international discussions on the since 2002. The Afghan National Army has ex- way ahead in Afghanistan. panded to almost 125,000, and continues to im- In September, Afghanistan is scheduled to hold prove in capability and expand in size. elections, this time for parliamentary representa- Mr President, we are one of 46 countries contrib- tives. Last year’s presidential elections encoun- uting to the effort in Afghanistan. We are there tered many difficulties, including widespread under a United Nations mandate, and at the invi- irregularities. This year’s election could also be tation of the Afghan government. Our aims in challenging. It is important that the Afghan Gov- Afghanistan are clear. For our own protection, we ernment learns from the experience of the 2009 need to secure Afghanistan and ensure terrorist elections. I am confident that the Afghan National groups no longer find safe havens there. We need Security Forces will play an important role in to support the Afghan people as they begin to take providing the necessary security to enable the responsibility for the security and stability of their election to proceed. Despite these difficulties, we nation And we need to stand with our friends and should not lose sight of the fact that Afghan citi- partners in this endeavour. zens —both men and women —now have the I am confident that our strategy in Afghanistan is right and the opportunity to have a say in who right. It is in Australia’s interests that we play our will represent them in government. This is a re- part in this international effort. It is has not been, markable achievement, of which Afghanistan as a and will not be, without challenges. And I am country can be proud. painfully aware that it has not been without loss. Mr President, we are also making progress on the There could be more losses ahead. But we must reconciliation and re-integration agenda. On 2 stay the course in Uruzgan. We must deliver on June 2010, President Karzai held a Peace Jirga in our commitment to train the Afghan forces there Kabul, a meeting aimed at moving Afghanistan as to take over their own security. It will not be easy. a nation closer to a political resolution of the in- We have already paid, more painfully, sixteen surgency. It advanced the important task of creat- Australian families have already paid, a very ing a pathway for insurgents to lay down their heavy price. But the cost of failure would be aims and move back into their society. This proc- much higher. ess will be Afghan-led and Afghan-driven. Al-

CHAMBER 4194 SENATE Wednesday, 23 June 2010

—————— fault of the opposition. I say to Minister 1 Website: www.icasualty.or, 23 June 2010 Roxon that this case is another hissy fit that Senator ABETZ (Tasmania) (6.05 pm)— ‘Nurse Roxon’ is having. She is getting by leave—I move: stroppy with people just because they do not do what she says. That the Senate take note of the document. On that note, I refer to some comments I will not delay the Senate other than to that were made in the House yesterday by say that the opposition welcomes the gov- the member for Dickson, the shadow minis- ernment’s continued commitment to the in- ter for health in response to this statement— ternational military effort in Afghanistan and that the resolve for that mission remains un- Senator Conroy—You’re not quoting changed. On behalf of the coalition, I again your own shadow minister! commend the magnificent work of the men Senator FIERRAVANTI-WELLS—I am and women of the Australian Defence Force making some comments, Senator Conroy. for their willingness to serve in dangerous Senator Conroy—You said you were go- conditions in Afghanistan to serve the cause ing to refer to them! of freedom both for us here in Australia and Senator FIERRAVANTI-WELLS—I am for the international community. going to refer to them. Stop interrupting. I Question agreed to. am going to refer to some comments that Mr E-Health Reform Dutton made in response to Minister Senator CONROY (Victoria—Minister Roxon’s statement. I also put on the record for Broadband, Communications and the that we do support and have supported e- Digital Economy) (6.06 pm)—I present a health. E-health was an initiative of the statement relating to e-health reform by the Howard government, and we will be dealing Minister for Health and Ageing. with the health identifiers legislation, if not this evening then tomorrow, because it is Senator FIERRAVANTI-WELLS (New down on the list. South Wales) (6.06 pm)—by leave—I move: That the Senate take note of the document. Yesterday the Minister for Health and Ageing contacted the member for Dickson at I wish to correct and make some observa- about one o’clock to say that she was going tions in relation to Minister Roxon’s state- to make a ministerial statement. A draft of ment on e-health which was tabled in the that ministerial statement was provided. The House of Representatives yesterday. I would statement that Minister Roxon ultimately like to start by correcting some of the com- read out in the House had had all the abusive ments made by the minister, starting with the language taken out. The draft statement con- fact that she has asserted that for more than tained a litany of personal abuse. Obviously three months the government has wanted the somebody must have told her, ‘Minister, this Senate to consider the Healthcare Identifiers is not appropriate to put in a ministerial Bill 2010. I remind the minister—and sug- statement,’ and it had to be taken out. gest that she obviously does not take very much notice of what happens here in the Yesterday, of all days to make a ministe- Senate—that in relation to the health identi- rial statement on something this Senate has fiers bill, if the government cannot get its been considering for months and on legisla- program right and cannot get this bill up to tion that we have already said that we will be debated before this house, it is not the support—and obviously the minister does

CHAMBER Wednesday, 23 June 2010 SENATE 4195 not read press releases that we put out, be- DOCUMENTS cause we informed her on 21 June that we Registrar of Senate Senior Executive would support this legislation; indeed, we Officers’ Interests made a whole series of suggested amend- The ACTING DEPUTY PRESIDENT ments, which the government has accepted (Senator Cash)—I present the register of and are now going to amend their own legis- Senate senior executive officers’ interests, lation to take into account—Minister Roxon incorporating notifications of alterations of got up and gave her ministerial statement. interests of Senate senior executive officers It is funny—it was on the same day that lodged between 24 November 2009 and 21 Professor Mendoza had come down on the June 2010. government like a ton of bricks because of APPROPRIATIONS their inaction on mental health and on the same day that Minister Tanner was alleged to Correspondence have commented that there is no money left Tabling in the coffers for mental health and aged The ACTING DEPUTY PRESIDENT care! What a day to drop a distraction! And, (Senator Cash)—I present correspondence of course, that is what yesterday’s ministerial to the Minister for Finance and Deregulation, statement was about. It was an attempt by the pursuant to a recommendation of the report minister to distract and deflect attention from of the Appropriations and Staffing Commit- Professor Mendoza’s resignation. That is tee on ordinary annual services of the Gov- what the minister was doing. ernment. After the minister dropped this tirade of AUDITOR-GENERAL’S REPORTS abuse, after question time it took advisers Report Nos 47 and 48 of 2009-10 from the shadow parliamentary secretary and the minister’s office 15 to 20 minutes of dis- The ACTING DEPUTY PRESIDENT (Senator Cash)—In accordance with the cussion to come to agreement on most of the provisions of the Auditor-General Act 1997, amendments, so I say to the minister: if this I present the following reports of the Audi- is the way you do business—dropping vitriol tor-General: like the sort of stuff you dropped yester- day—it says more about you and your inabil- Report No. 47 of 2009-10: Performance ity to deal with the health portfolio and the audit—Management of live animal imports: mess that the health portfolio is in. In future Department of Agriculture, Fisheries and the minister should think very carefully be- Forestry. fore she puts this sort of drivel on the record. Report No. 48 of 2009-10: Performance Question agreed to. audit—Community intelligence—Collecting and processing tip-offs: Australian Taxation PETITIONS Office. Community Sector Funding COMMITTEES Senator SIEWERT (Western Australia) (6.12 pm)—by leave—I present to the Senate Environment, Communications and the Arts Legislation Committee a petition from 518 citizens to Australia’s federal, state and territory governments Report: Government Response about community sector funding as part of Senator JACINTA COLLINS (Victoria) the ASU’s pay equity campaign. (6.13 pm)—by leave—I present the govern- ment’s response to the report of the Envi-

CHAMBER 4196 SENATE Wednesday, 23 June 2010 ronment, Communications and the Arts Leg- ment Ministers seek to work within and across islation Committee on its inquiry the Envi- governments, and with industry and communities, ronment Protection (Beverage Container De- to achieve effective, efficient and nationally con- posit and Recovery Scheme) Bill 2009, and sistent policies on waste in order to enhance so- seek leave to have the document incorpo- cial, human health, economic and environmental outcomes. rated in Hansard. The EPHC has been investigating alternative Leave granted. mechanisms for increasing the recycling of pack- The document read as follows— aging and decreasing litter, including container Australian Government response to the Senate deposit legislation, since April 2008. In Standing Committee on Environment, Communi- May 2009, the EPHC considered the results of an cations and the Arts Committee Report: investigation into these options, the Beverage Container Investigation final report (available at: The Environment Protection (Beverage Container www.ephc.gov.au/news), and agreed to conduct a Deposit and Recovery Scheme) Bill 2009 survey of the community’s willingness to pay for February 2010 improved packaging recycling and reduced litter. Australian Government response to the Senate At their meeting on 5 November 2009, the EPHC Standing Committee on Environment, Communi- heard expert advice on the preliminary findings cations and the Arts Report: from the modelling study on the community’s The Environment Protection (Beverage Container willingness to pay which indicated a high level of Deposit and Recovery Scheme) Bill 2009 community interest in recycling packaging and reduced litter. The final study results were not This is the Australian Government’s response to available at the time of the EPHC meeting. Minis- the Senate Standing Committee on Environment, ters will consider this report out of session with a Communications and the Arts Inquiry into the view to making an evidence based decision on Environment Protection (Beverage Container further work (if any) to address the community’s Deposit and Recovery Scheme) Bill 2009 (hereaf- desire to recycle more packaging and reduce lit- ter ‘the bill’) as tabled on 17 September 2009. ter. The Australian Government acknowledges the At the same meeting the EPHC agreed to release contribution of the Committee’s inquiry to the a new national policy on waste and resource man- Environment Protection and Heritage Council’s agement. The National Waste Policy: Less Waste, ongoing consideration of this issue. More Resources (available at: Context www.environment.gov.au/wastepolicy) has a On 17 June 2009, the Senate passed a motion strong focus on taking responsibility, through requiring the Environment, Communications and product stewardship, to reduce the environmental, the Arts Committee to inquire into and report on health and safety footprint of manufactured goods the bill. The Senate Committee tabled its final during and at end of life. It will also provide for report on 17 September 2009 —Environment flexibility in the way product stewardship Protection (Beverage Container Deposit and Re- schemes are implemented. A key priority will be covery Scheme) Bill 2009. for the Australian Government to establish na- Introduction tional product stewardship framework legislation, in consultation with states, territories, industry The day-to-day management of waste is primarily and the community. Public consultation on the the responsibility of the state, territory and local design of the legislation will occur during 2010. governments. The primary fora for harmonised action on waste issues of national significance are The policy charts the vision for resource recovery the Environment Protection and Heritage Council and waste management to 2020. Developed with (EPHC) and the National Environment Protection regard to relevant COAG agreements and with Council. Through these fora, Australian environ- the support of industry and key non government organisations, it provides for collaboration to

CHAMBER Wednesday, 23 June 2010 SENATE 4197 deliver effective approaches to domestic waste providing the evidence. It will complement action issues and aligns our waste management with on climate change and sustainability. Any deci- Australia’s international obligations. sion to implement a national container deposit The policy sets out a comprehensive action scheme would need to be consistent with the agenda across six areas: taking responsibility; principles and directions laid out in the National improving the market; pursuing sustainability; Waste Policy: Less Waste, More Resources. reducing hazard and risk; tailoring solutions and Response to recommendations Recommendation Position AG Comment Recommendation 1 Agreed The Australian Government is committed to working The committee recommends through the EPHC to develop an evidence base on that the EPHC advance its which to make a decision regarding further work to analysis of container deposit address the community’s desire to recycle more pack- schemes without delay, ensuring aging and reduce litter. Should the EPHC decide to that any further modelling proceed with further work, existing container deposit draws on data derived from schemes, and the model outlined in this bill will be existing container deposit taken into account. schemes and includes consid- eration of the model outlined in this bill. Recommendation 2 Agreed The Australian Government agrees that there is cur- The committee recommends rently insufficient evidence to assess the merits of the that the bill not be passed at this proposed container deposit legislation and that a deci- time. sion to implement such a scheme would not be appro- priate at this time.

Reports: Government Responses A CERTAIN MARITIME INCIDENT Senator JACINTA COLLINS (Victoria) (SENATE SELECT) (6.14 pm)—by leave—I present the govern- Report on a Certain Maritime Incident ment’s response to the President’s report of The government response is being considered and 26 November 2009 on government responses will be tabled in due course. outstanding to parliamentary committee re- AGRICULTUREAL AND REALTED ports, and seek leave to have the document INDUSTRIES (Senate Select) incorporated in Hansard. Pricing and supply arrangements in the Aus- Leave granted. tralian and global fertiliser market—Second interim report The document read as follows— Response not required. GOVERNMENT RESPONSES TO Pricing and supply arrangements in the Aus- PARLIAMENTARY COMMITTEE tralian and global fertiliser market—Final REPORTS RESPONSE TO THE SCHEDULE report TABLED BY THE PRESIDENT OF THE SENATE ON 26 NOVEMBER 2009 The government response is being considered and will be tabled in due course. Circulated by the Leader of the Government in the Senate AUSTRALIAN COMMISSION FOR LAW ENFORCEMENT INTEGRITY (JOINT Senator the Hon Chris Evans STATUTORY) 23 June 2010 Inquiry into law enforcement integrity models

CHAMBER 4198 SENATE Wednesday, 23 June 2010

The government response was tabled on 22 June CLIMATE POLICY (SENATE SELECT) 2010. Report Examination for the annual report of the In- The government response is being considered and tegrity Commissioner 2007-08 will be tabled in due course. The government response was tabled on 22 June COMMUNITY AFFAIRS LEGISLATION 2010. National registration and accreditation scheme AUSTRALIAN CRIME COMMISSION for doctors and other health workers (JOINT STATUTORY) The government response is being considered and Review of the Australian Crime Commission will be tabled in due course. Act 2002 Therapeutic Goods Amendment (2009 Meas- The government response was tabled on 13 May ures No.2) Bill 2009 [Provisions] 2010. Recommendations in this report were dealt with Examination of the annual report for 2004-05 during the debate of the bill. No formal response of the Australian Crime Commission required. The government response was tabled on 13 May COMMUNITY AFFAIRS REFERENCES 2010. Lost Innocents and Forgotten Australians revis- Inquiry into the manufacture, importation and ited – Report on the progress with the implemen- use of amphetamines and other synthetic drugs tation of the recommendations of the Lost Inno- (AOSD) in Australia cents and Forgotten Australians reports The government response was tabled on 13 May The government response was tabled on 26 No- 2010. vember 2009. Inquiry into the future impact of serious and COMMUNITY AFFAIRS STANDING organised crime on Australian society Funding and operation of the Commonwealth The government response was tabled on 13 May State/Territory Disability Agreement 2010. The government response is being considered and Examination of the Australian Crime Commis- will be tabled in due course. sion annual report 2006-07 Highway to health: better access for rural, The government response was tabled on 13 May regional and remote patients 2010. The government response was tabled on 25 Feb- Inquiry into the Australian Crime Commission ruary 2010. Amendment Act 2007 Towards recovery: Mental health services in The government response was tabled on 13 May Australia 2010. The government response is being considered and Examination of the Australian Crime Commis- will be tabled in due course. sion annual report 2007-08 Grasping the opportunity of Opal: Assessing The government response was tabled on 22 June the impact of the petrol sniffing strategy 2010. The government response was tabled on 22 June Legislative arrangements to outlaw serious 2010. and organised crime groups CORPORATIONS AND FINANCIAL The government response was tabled on 13 May SERVICES (JOINT STATUTORY) 2010. Review of the Managed Investments Act 1998 The government response is being considered and will be tabled in due course.

CHAMBER Wednesday, 23 June 2010 SENATE 4199

Inquiry into Regulation 7.1.29 in Corporations Recommendations in this report were dealt with Amendment Regulations 2003 (No. 3), Statu- during the debate of the bill. No formal response tory Rules 2003 No. 85 required. The government response is being considered and Trade Practices Amendment (Australian Con- will be tabled in due course. sumer Law) Bill 2009 [Provisions] Corporations Amendment Regulations Recommendations in this report were dealt with 7.1.29A, 7.1.35A and 7.1.40(h) during the debate of the bill. No formal response The government response is being considered and required. will be tabled in due course. Banking Amendment (Keeping Banks Ac- Corporate responsibility: Managing risk and cre- countable) Bill 2009 ating value Recommendations in this report were dealt with The government response is being considered and during the debate of the bill. No formal response will be tabled in due course. required. The structure and operation of the superannu- ECONOMICS REFERENCES ation industry Consenting adults deficits and household debt – The government response is being considered and links between Australia’s current account deficit, will be tabled in due course. the demand for imported goods and household debt Better shareholders – better company – Share- holder engagement and participation in Aus- The government response is being considered and tralia will be tabled in due course. The government response is being considered and Employee share schemes will be tabled in due course. The government response is being considered and Inquiry into aspects of agribusiness managed will be tabled in due course. investment schemes Foreign investment by state-owned entities The government response is being considered and The government response is being considered and will be tabled in due course. will be tabled in due course. Inquiry into financial products and services in Government measures to address confidence Australia concerns in the financial sector – The Financial The government response is being considered and Claims Scheme and the Guarantee Scheme for will be tabled in due course. Large Deposits and Wholesale Funding ECONOMICS LEGISLATION The government response is being considered and will be tabled in due course. Renewable Energy (Electricity) Amendment Bill 2009 and a related bill [Provisions} Report on bank mergers Recommendations in this report were dealt with The government response is being considered and during the debate of the bill. No formal response will be tabled in due course. required. Government’s economic stimulus initiatives Corporations Amendment (Improving Ac- The government response was tabled on 18 countability on Termination Payments) Bill March 2010. 2009 [Provisions] GROCERYchoice website Recommendations in this report were dealt with The government response is being considered and during the debate of the bill. No formal response will be tabled in due course. required. National Consumer Credit Protection Bill 2009 and related bills [Provisions]

CHAMBER 4200 SENATE Wednesday, 23 June 2010

ECONOMICS STANDING ELECTORAL MATTERS (JOINT Reserve Bank Amendment (Enhanced Inde- STANDING) pendence) Bill 2008 [Provisions] Civics and electoral education Recommendations in this report were dealt with The government response is being con- during the debate of the bill. No formal response sidered and will be tabled in due course. required. Report on the conduct of the 2007 federal elec- Australian Securities and Investments Com- tion and matters related thereto mission (Fair Bank and Credit Card Fees) The government response was tabled on 18 Amendment Bill 2008 March 2010. Recommendations in this report were dealt with ENVIRONMENT, COMMUNICATIONS during the debate of the bill. No formal response AND THE ARTS LEGISLATION required. Environment Protection (Beverage Container Exposure draft of the legislation to implement Deposit and Recovery Scheme) Bill 2009 the Carbon Pollution Scheme The government response was tabled on 23 June The government response is being considered and 2010. will be tabled in due course. ENVIRONMENT, COMMUNICATIONS EDUCATION, EMPLOYMENT AND AND THE ARTS REFERENCES WORKPLACE RELATIONS LEGISLATION Forestry and mining operations on the Tiwi Building and Construction Industry Improve- Islands ment Amendment (Transition to Fair Work) The government response is being considered and Bill 2009 [Provisions] will be tabled in due course. Recommendations in this report were dealt with during the debate of the bill. No formal response ENVIRONMENT, COMMUNICATIONS required. AND THE ARTS STANDING Education services for Overseas Students Management of Australia’s waste streams (in- cluding consideration of the Drink Containers Amendment (Re-registration of Providers and Other Measures) Bill 2009 Recycling Bill 2008) Recommendations in this report were dealt with The government response was tabled on 25 Feb- ruary 2010. during the debate of the bill. No formal response required. Renewable Energy (Electricity) Amendment EDUCATION, EMPLOYMENT AND (Feed-in-Tariff) Bill 2008 WORKPLACE RELATIONS REFERENCES The government response was presented out of sitting in the Senate on 30 April 2010, and tabled DEEWR tender process to award employment on 11 May 2020. services contracts The government response was presented out of Commonwealth Radioactive Waste Manage- sitting in the Senate on 28 January 2010, and ta- ment (Repeal and Consequential Amendment) bled in parliament on 2 February 2010. Bill 2008 Recommendations in this report will be dealt with Provisions of childcare during the debate of the bill. No formal response The government response is being considered and required. will be tabled in due course. The operation of the Environment Protection Welfare of international students and Biodiversity Conservation Act 1999 – First The government response is being con- report sidered and will be tabled in due course. The government response is being considered and will be tabled in due course.

CHAMBER Wednesday, 23 June 2010 SENATE 4201

The operation of the Environment Protection FINANCE AND PUBLIC and Biodiversity Conservation Act 1999 – Sec- ADMINISTRATION REFERENCES ond and final report Staff employed under Members of Parliament The government response is being considered and (Staff) Act 1984 will be tabled in due course. The government response is being considered and The reporting of sports news and the emer- will be tabled in due course. gence of digital media Government advertising and accountability The government response is being considered and The government response is being considered and will be tabled in due course. will be tabled in due course. ENVIRONMENT, COMMUNICATIONS FINANCE AND PUBLIC AND THE ARTS REFERENCES ADMINISTRATION STANDING Living with a salinity – a report on progress: Annual reports (No. 2 of 2007) the extent and economic impact of salinity in The government response was presented out of Australia sitting in the Senate on 7 June 2010, and tabled The government response is being considered and on 15 June 2010. will be tabled in due course. Annual reports (No. 1 of 2008) About time! Women in sport and recreation in The government response is being considered and Australia will be tabled in due course. The government response is being considered and will be tabled in due course. Annual reports (No. 2 of 2008) The government response is being considered and ENVIRONMENT, COMMUNICATIONS, will be tabled in due course. INFORMATION TECHNOLOGY AND THE ARTS STANDING Item 16525 in Part 3 of Schedule 1 to the health Insurance (General Medical Services Conserving Australia–Australia’s national parks, conservation reserves and marine pro- Table) Regulation 2007 tected areas The government response was tabled on 25 Feb- ruary 2010. The government response is being considered and will be tabled in due course. Annual report (No. 1 of 2009) FINANCE AND PUBLIC The government response is being considered and ADMINISTRATION LEGISLATION will be tabled in due course. Plebiscite for an Australian Republic Bill 2008 Residential and community aged care in Aus- tralia The government response is being considered and will be tabled in due course. The government response is being considered and will be tabled in due course. National Security Legislation Monitor Bill 2009 FOREIGN AFFAIRS, DEFENCE AND TRADE (JOINT STANDING) Recommendations in this report were dealt with during the debate of the bill. No further response Review of the Defence annual report 2006- required. 2007 Annual reports (No.2 of 2009) The government response was presented out of sitting in the Senate on 25 March 2010, and ta- The government response is being considered and bled on 11 May 2010. will be tabled in due course. Inquiry into Australia’s relationship with ASEAN The government response was tabled on 18 March 2010.

CHAMBER 4202 SENATE Wednesday, 23 June 2010

Sealing a just outcome – Report from the in- The government response is being considered and quiry into RAAF F-111 deseal/reseal workers will be tabled in due course. and their families Review of the listing of Al-Shabaab as a terror- The government response was tabled on 13 May ist organisation 2010. The government response was tabled on 13 May Australia’s relationship with India as an 2010. emerging world power Review of the re-listing of Hamas’ Brigades, The government response is not required. PKK LeT and PIJ as terrorist organisation Review of the Defence annual report 2007- The government response was tabled on 13 May 2008 2010. The government response is being considered and LEGAL AND CONSTITUTIONAL AFFAIRS will be tabled in due course. LEGISLATION FOREIGN AFFAIRS, DEFENCE AND Migration Amendment (Immigration Deten- TRADE REFERENCES tion Reform) Bill 2009 Economic challenges facing Papua New Recommendations in this report will be dealt with Guinea and the island states of the southwest during the debate of the bill. No formal response Pacific—Volume 1 required. The government response is being considered and Crimes Legislation Amendment (Serious and will be tabled in due course. Organised Crime) Bill 2009 [Provisions] FOREIGN AFFAIRS, DEFENCE AND Recommendations in this report will be dealt with TRADE STANDING during the debate of the bill. No formal response Australia’s involvement in peacekeeping op- required. erations Telecommunications (Interception and Access) The government response was presented out of Amendment Bill 2009 [Provisions] sitting in the Senate on 25 March 2010, and ta- Recommendations in this report will be dealt with bled on 11 May 2010. during the debate of the bill. No formal response FUEL AND ENERGY (SENATE SELECT) required. The CPRS: Economic cost without environ- Personal Property Securities (Consequential mental benefit – Amendments) Bill 2009 [Provisions] The government response is being considered and The government responses was tabled on 4 Feb- will be tabled in due course. ruary 2010. INTELLIGENCE AND SECURITY (JOINT) LEGAL AND CONSTITUTIONAL AFFAIRS REFERENCES Review of the re-listing of Ansar al-Islam, AAA,IAA,IMU, JeM and LeJ as terrorist or- The road to a republic ganisations The government response is being considered and The government response was tabled on 13 May will be tabled in due course. 2010. LEGAL AND CONSTITUTIONAL AFFAIRS Review of the re-listing of Hizballah’s External STANDING Security Organisation as a terrorist organisa- Unfinished business: Indigenous stolen wages tion The Minister for Families, Housing, Community The government response was tabled on 13 May Services and Indigenous Affairs responded di- 2010. rectly to the Chair of the Committee on 5 May Annual report of committee activities 2008- 2010. No further response required. 2009

CHAMBER Wednesday, 23 June 2010 SENATE 4203

Stolen Generation Compensation Bill 2008 MINISTERIAL DISCRETION IN The government response was tabled on 18 MIGRATION MATTERS (SENATE March 2010. SELECT) Effectiveness of the Sex Discrimination Act Report 1984 in eliminating discrimination and pro- The government response is being considered and moting gender equality will be tabled in due course. The government response was presented out of NATIONAL BROADBAND NETWORK sitting in the Senate on 4 May 2010, and tabled (SENATE SELECT) on 11 May 2010. Another fork in the road to national broad- Disability Discrimination and Other Human band – Second interim report Rights Legislation Amendment Bill 2008 [Pro- The government response is being considered and visions] will be tabled in due course. Recommendations in this report will be dealt with Third report during the debate of the bill. No formal response The government response is being considered and required. will be tabled in due course. MEN’S HEALTH (SENATE SELECT) NATIONAL CAPITAL AND EXTERNAL Report TERRITORIES (JOINT STANDING) The government response is being considered and Inquiry into the Immigration Bridge proposal will be tabled in due course. The government response was tabled on 4 Febru- MIGRATION (JOINT STANDING) ary 2010. Negotiating the maze – Review of arrange- PUBLIC ACCOUNTS AND AUDIT (JOINT ments for overseas skills recognition, upgrad- STATUTORY) ing and licensing Report 413 – The efficiency dividend and small The government response is being considered and agencies: Size does matter will be tabled in due course. The government response was tabled on 4 Febru- Immigration detention in Australia – A new ary 2010. beginning – Criteria for release from detention Report 414 – Review of the Auditor-General’s – First report of the inquiry into immigration detention reports tabled between August 2007 and Au- gust 2008 The government response is being considered and The government response is being considered and will be tabled in due course. will be tabled in due course. Immigration detention in Australia – Commu- nity-based alternatives to detention – Second Report 415 – Review of Auditor-General’s re- port tabled between September 2008 and report of the inquiry into immigration deten- January 2009 tion The government response is being considered and The government response is being considered and will be tabled in due course. will be tabled in due course. Report 416 – Review of the major projects Immigration detention in Australia – Facilities, report 2007-2008 services and transparency – third report of the inquiry into immigration detention The government response is being considered and will be tabled in due course. The government response is being considered and will be tabled in due course. PUBLIC WORKS (JOINT STANDING) Report 5/2009—Referral made May to June 2009—Fitout and external works, ANZAC

CHAMBER 4204 SENATE Wednesday, 23 June 2010

Park West, Parks, ACT—Fitout of Tugger- The government response is being considered and anong Office Park, Greenway, ACT will be tabled in due course. The government response is being considered and Meat marketing – Final report will be tabled in due course. The government response is being considered and Report 6/2009—Redevelopment of the Villa- will be tabled in due course. wood Immigration Detention Facility Investment of Commonwealth and State funds The government response is being considered and in public passenger transport infrastructure will be tabled in due course. and services Report 7/2009—Referrals made August to Oc- The government response is being considered and tober 2009—Construction of housing at will be tabled in due course. Gordon Olive Estate, Brisbane, QLD— Management of the removal of the rebate for construction and renovation of housing at Lar- AQIS export certification functions rakeyah Barracks, Darwin, NT—Enhanced The government response is being considered and Land Force Stage 2, various locations—Midlife will be tabled in due course. engineering services refurbishment of the Aus- tralian Embassy, Paris, France—Tropical ma- Social Security and Other Legislation rine research facilities, Cape Ferguson and Amendment (Income Support for Students) Townsville, QLD—Redevelopment of Tarin Bill 2009 [Provisions] Kowt, Afghanistan Recommendations in this report will be dealt with The government response is being considered and during the debate of the bill. No formal response will be tabled in due course. required. REGIONAL AND REMOTE INDIGENOUS RURAL AND REGIONAL AFFAIRS AND COMMUNITIES (SENATE SELECT) TRANSPORT STANDING Second report Australia’s future oil supply and alternative The Minister for Families, Housing, Community transport fuels – Final report Services and Indigenous Affairs responded di- The government response is being considered and rectly to the Chair of the Committee on 11 May will be tabled in due course. 2010. No further response required. Meat marketing – Interim report Third report The government response is being considered and The government response is being considered and will be tabled in due course. will be tabled in due course. Water management in the Coorong and Lower RURAL AND REGIONAL AFFAIRS AND Lakes (including consideration of the Emer- TRANSPORT REFERENCES gency Water (Murray-Darling Basin Rescue) Bill 2008) Iraqi wheat debt – repayments for wheat growers Recommendations in this report will be dealt with during the debate of the bill. No formal response The government response is being considered and required. will be tabled in due course. Climate change and the Australian agricul- Implications for the long-term sustainable tural sector – Final report management of the Murray-Darling Basin system—Final report The government response is being considered and will be tabled in due course. The government response is being considered and will be tabled in due course. Import risk analysis for the importation of Cavendish bananas from the Philippines – Final report

CHAMBER Wednesday, 23 June 2010 SENATE 4205

STATE GOVERNMENT FINANCIAL ENERGY EFFICIENT HOMES MANAGEMENT (SENATE SELECT) PACKAGE Report Return to Order The government response is being considered and Senator JACINTA COLLINS (Victoria) will be tabled in due course. (6.14 pm)—by leave—I table a statement TREATIES (JOINT STANDING) relating to the order for the production of Report 91 – Treaty tabled on 12 March 2008 documents concerning the energy efficiency The government response was presented out of task force report. sitting in the Senate on 17 December 2009, and GOVERNMENT ADVERTISING tabled on 2 February2010. Return to Order Report 94 – Treaties tabled on 14 May 2008 The government response was tabled on 18 Senator RONALDSON (Victoria) (6.14 March 2010. pm)—by leave—Just after question time and immediately before the condolence motion, Report 95 – Treaties tabled on 4 June, 17 June, 25 June and 26 August 2008 the Special Minister of State, Senator Ludwig, tabled a statement in the Senate The government response was tabled on 4 Febru- ary 2010. concerning an order for the production of documents. It was a draft statement of rea- Report 99 – Treaties tabled on 3 December sons and draft correspondence to the Treas- 2008 and 3 February 2009 urer pursuant to my notice of motion No.827 The government response is being considered and dated 22 June. The minister indicated: will be tabled in due course. With reference to Senator Ronaldson’s return to Report 100 – Treaties tabled on 25 June 2008 order motion dated 22 June 2010 requesting the (2) production of a copy of a draft statement of rea- The government response is being considered and sons and draft correspondence to the Treasurer by will be tabled in due course. the Department of Finance and Deregulation pro- Report 102 – Treaties tabled on 12 and 16 vided to the Cabinet Secretary and Special Minis- March 2009 ter of State on 14 May 2010, as indicated in Sen- The government response is being considered and ate estimates by the Cabinet Secretary … the draft will be tabled in due course. statement and draft letter … were working docu- ments, being iterative drafts. Report 103 – Treaties tabled on 12 March and 13 May 2009 He then went on to say: The government response was tabled on 13 May These documents have no separate status and the 2010. final versions of these documents have been de- classified and tabled in this chamber. Report 106 – Nuclear non-proliferation and disarmament The question is fundamental. There is a huge The government response was tabled on 25 Feb- question mark hanging over this government ruary 2010. as a result of this matter. I will not give hon- Report 107 – Treaties tabled on 20 August (2) ourable senators a potted history again be- and 15 September 2009 cause we have been discussing it all week. I will not give senators a full history of what The government response is being considered and will be tabled in due course. occurred, but honourable senators would be aware that the minister granted an exemption to the Treasurer for the advertising campaign for the great big new mining tax. As we all

CHAMBER 4206 SENATE Wednesday, 23 June 2010 know from evidence given to Senate esti- to the draft ministerial statement. The only mates and from information given in this conclusion this chamber can come to, the chamber, that decision was made on 24 May, only conclusion that those people who are at the start of the estimates week. The minis- listening to this can come to, is that it was ter refused to table that document and the identical, that indeed that is why it was not accompanying ministerial statement until released until today and that indeed it puts Friday, 28 May, which fortuitously was after paid to any notion of credibility about requir- Senate estimates had finished and after the ing extra time to redraft the ministerial Thursday morning when the Senate Finance statement. and Public Administration Legislation This government stands utterly con- Committee, chaired by Senator Polley, had demned for its behaviour in relation to this set aside time for this matter to be debated. exemption. This government stands utterly We then found out in the recalled Senate Fi- condemned for its refusal to come clean on nance and Public Administration Legislation this matter. Both sides of this chamber know Committee estimates last week that the de- that that exemption was not tabled on 24 partment had provided to the minister a draft May because the Special Minister of State, statement and a draft letter. the Prime Minister and the Treasurer did not From the evidence given to the Finance want this to become public during Senate and Public Administration Legislation estimates and because they knew that, if this Committee, it would appear that the minister were to become public, they would have apparently was able to redraft the letter to the been subject to far more intensive scrutiny Treasurer granting the exemption, but myste- than they have been since. I cannot hide my riously he said he was too busy to redraft the bitter disappointment that the government ministerial statement until the Thursday or has not taken the opportunity to clear this Friday morning of that week. There is one matter up once and for all. This is a question fundamental question mark that hangs over mark that will hang over this minister and this debate today. If the draft ministerial this Prime Minister from now until the elec- statement had been tabled as I requested it tion. and if it had indicated that the final statement Senator LUDWIG (Queensland—Special and the draft statement were completely and Minister of State and Cabinet Secretary) utterly different, there might be a skerrick— (6.21 pm)—I note that we do not have much and it would be only a skerrick—of credibil- time left in the debate. I notice there are ity in the minister’s argument that it took him three minutes left. I will start and then seek four days to redraft this ministerial state- to incorporate the remainder of my contribu- ment. But wouldn’t you think, given that the tion. I start by saying that the position of the credibility of the minister, Prime Minister government is generally—and this is quite and Treasurer were all on the line, that he well understood in this place—not to pro- would produce this draft statement and say: duce iterative working drafts. There is no ‘Here, I told you so. It is totally different to need to table the draft statement or the draft the statement that I released. I was in esti- correspondence, because, for the purposes of mates and I didn’t have time to do it’? There transparency, accountability and scrutiny, I would be a skerrick of credibility were that have tabled the final version of each. to be, but by refusing to release this docu- And here is the record of open and trans- ment the only conclusion we have left is that parent disclosure in relation to this issue. The the final ministerial statement was identical

CHAMBER Wednesday, 23 June 2010 SENATE 4207 expenditure was approved as part of the May. I put out a press release to the world to budget process for the purposes of openness, the same effect. I did not wait until Friday transparency and accountability. It was spe- evening, until 5 pm, when everyone had cifically identified and published in the gone home; my staff actually went up to the budget papers. In other words, we told the gallery and boxed the statement in the inter- entire world, including the opposition, the ests of transparency, openness, accountabil- Greens, Senator Fielding, Senator Xenophon, ity and scrutiny. the media and the public on 11 May that this For the purposes of openness, transpar- campaign was funded and was going ahead. ency, accountability and scrutiny, on Mon- The department was made aware of the day, 31 May I declassified cabinet-in- Treasurer’s request for an exemption on 12 confidence correspondence between Treas- May. This bears reiterating: at the time, after ury and myself. Again, my staff personally 12 May, the department was aware that a went up to the gallery and individually request for an exemption existed and was on handed out copies of the correspondence to foot. I made the decision on granting the ex- interested journalists. emption on Monday, 24 May. For the purposes of openness, transpar- The next day, on Tuesday, 25 May, I ap- ency, accountability and scrutiny, I attended peared, for the purposes of openness, trans- question time in the Senate between Monday, parency, accountability and scrutiny, at Sen- 15 June and Thursday, 17 June and was ate estimates from 9 am to 11 pm and was questioned on the issue by Senator Back on questioned extensively on government ad- the 15th. vertising with the Department of the Prime For the purposes of openness, transpar- Minister and Cabinet and its agencies. Had ency, accountability and scrutiny, on the opposition seen fit to ask on 25 May Wednesday, 16 June Senator Fielding’s about the exemption, I would have been at loaded terms of reference were agreed by the the table and answered questions that were Senate for inquiry by the Finance and Public put to me about the decision I made the night Administration References Committee. I am before. not entirely sure, though, why an inquiry is I appeared, for the purposes of openness, needed. Nevertheless, for the purposes of transparency, accountability and scrutiny, at transparency, accountability and scrutiny, Senate estimates on Thursday, 27 May from relevant officials will be made available to 9 am to 11 pm and was questioned exten- assist the inquiry. Again, for the purposes of sively on government advertising with the openness, transparency, accountability and Department of Finance and Deregulation. scrutiny, on Thursday, 17 June the Auditor- Had the opposition seen fit to ask on 27 May General and the chair of the Independent about the exemption, the department would Communications Committee appeared before have made them aware that an exemption a hearing of the Joint Committee of Public was in train and I would have answered that Accounts and Audit. And, again, for the pur- as well that I had made the decision on the poses of openness, transparency, account- 24th. ability and, for those opposite, scrutiny, I For the purposes of openness, transpar- appeared at the reconvened Senate estimates ency, accountability and scrutiny, I tabled a on 17 June and was questioned extensively statement of reasons relating to the exemp- on government advertising with the Depart- tion at 9.30 on the morning of Friday, 28 ment of Finance and Deregulation.

CHAMBER 4208 SENATE Wednesday, 23 June 2010

For the purposes of openness, transpar- Senator Ronaldson wants to be in the al- ency, accountability and scrutiny, I attended ternate government. Senator Ronaldson question time in the Senate this week from wants to be a cabinet secretary and a special Monday, 21 June to today and will be here minister of state, yet carries on with this tomorrow again—God willing. I was ques- farce. Senator Ronaldson, a challenge to tioned on this issue by Senator Ronaldson on you— 22 June. In addition to this scrutiny, we have Senator Ronaldson—Through the chair, I had a private senator’s bill on government presume. advertising introduced, inquired into, re- Senator LUDWIG—Through the chair, I ported on and debated and we had an MPI on put a challenge to Senator Ronaldson. Stand this issue yesterday. That is just the Senate. up in here and commit clearly to this parlia- In the other place, the Prime Minister and the ment that, if you are a special minister of Treasurer have also fielded multiple ques- state in a future government, you will pro- tions on the issue for the purposes of open- duce, if asked, on request, at any time in the ness and transparency. I would be surprised future, any iterative documents that would be if ever before in the field of human endeav- subject to the type of order that you have our had so much accountability and scrutiny put—that you would produce drafts; that you been applied by so many to such great open- would produce iterative documents. If you ness and transparency practised by so few. do not publicly commit to that in here, you Senator Ronaldson makes a lot of noise— are acting completely hypocritical on this Senator Ronaldson—Oh, you are not fair matter. dinkum! Senator Ronaldson—I promise not to Senator LUDWIG—and is continuing to avoid scrutiny in Senate estimates. do so about this issue, but what does he actu- Senator LUDWIG—I take your interjec- ally do? We are months away from an elec- tion as a no. You are not going to take the tion but what do we know about the policy of opportunity of standing up in this place and the Liberals on government advertising? The saying, ‘I will in any future government, if answer is: not much. But we do know from asked, produce iterative documents, drafts, in the contribution of coalition senators to the relation to decisions I have made.’ What that report on Senator Brown’s bill that they points to is that Senator Ronaldson is being agree with the conclusions of Dr Hawke and completely hypocritical in this place. I know the government that the Auditor-General is he will not make that commitment because, inappropriate to be both decision maker and in any future government, he would do what reviewer. This is one of the only identified this government is doing— rational decisions that Senator Ronaldson Senator Ronaldson—On a point of order: seems to have been able to come to, that I I promise not to mislead Senate estimates in have seen. So why must the Senate be sub- the way the minister did. ject to the hypocrisy of this display of con- fected outrage, the howls of derision, the The ACTING DEPUTY PRESIDENT thumping of tables, all the while supporting (Senator Cash)—There is no point of order. the decision we took? He cannot walk both Senator LUDWIG—Again, all we hear is sides of the street on this matter, but he is hot air from Senator Ronaldson on this mat- clearly attempting to do so—and failing ter. It reminds me of those inflatable dolls badly. that stand outside car parks that wave their

CHAMBER Wednesday, 23 June 2010 SENATE 4209 arms around. Of course, what we have not New Arrangements to Borrow of the International heard—and what I really expect to hear—is Monetary Fund (IMF) adopted by the IMF Ex- Senator Ronaldson committing publicly to ecutive Board on 12 April 2010. stand in this place and make a rational deci- The New Arrangements to Borrow is a voluntary sion to say, ‘I will release any iterative set of credit arrangements between the IMF and a documents and drafts, if asked, into the fu- number of its members. Australia, through the ture.’ Why will he not do that yet still con- then Treasurer, played a role in the development of the New Arrangements to Borrow and we have tinues with this farce? I think Senator been a participant in the New Arrangements to Ronaldson needs to come clean. Borrow since its inception in 1998. Question agreed to. The purpose of the New Arrangements to Borrow DOCUMENTS is to act as backstop to the normal quota-based resources of the IMF, by providing the IMF with Tabling recourse to borrow from its members when sup- The Clerk—Documents are tabled in ac- plementary resources are needed to forestall or cordance with the list circulated to senators. cope with an impairment of the international Details of the documents appear at the monetary system, or to deal with a crisis that end of today’s Hansard. threatens the stability of the system. The turbulence in the global economy and finan- INTERNATIONAL MONETARY cial markets in recent years has seen the IMF AGREEMENTS AMENDMENT provide substantial support at short notice to BILL (No. 1) 2010 countries with balance of payments needs. In First Reading doing so, it has drawn heavily on its available resources and, additionally, has relied on ad hoc Bill received from the House of Represen- and temporary loans from a small number of its tatives. members. Senator LUDWIG (Queensland—Special On 2 April 2009, G20 Leaders in London com- Minister of State and Cabinet Secretary) mitted to an expanded and more flexible New (6.33 pm)—I move: Arrangements to Borrow, as part of their global That this bill may proceed without formalities plan for recovery and reform. This provided a and be now read a first time. significant boost in confidence. It is important that Australia does its part in delivering on this Question agreed to. commitment. Bill read a first time. Under the expanded New Arrangements to Bor- Second Reading row, the IMF will be able to borrow up to ap- Senator LUDWIG (Queensland—Special proximately SDR 367 billion, significantly in- creased from the existing SDR 34 billion. Austra- Minister of State and Cabinet Secretary) lia’s share of these expanded credit arrangements (6.33 pm)—I move: will be around SDR4.4 billion, worth around That this bill be now read a second time. A$7.5 billion, up from our existing SDR 801 mil- I seek leave to have the second reading lion line of credit, worth about A$1.4 billion, that speech incorporated in Hansard. was established in 1998. In the event that the IMF calls on the New Ar- Leave granted. rangements to Borrow, a drawing under Austra- The speech read as follows— lia’s credit line would be through a loan to the The bill amends the International Monetary IMF, to be repaid to Australia in full, with inter- Agreements Act 1947 to allow Australia to accept est, within five years; as it was on the only previ- the changes to the terms and conditions of the ous occasion on which the New Arrangements to

CHAMBER 4210 SENATE Wednesday, 23 June 2010

Borrow was activated to support Brazil over a COMMITTEES decade ago. Rural and Regional Affairs and Transport In addition to expanding its size, this Bill will Legislation Committee reflect the agreed amendments to make the New Report Arrangements to Borrow more flexible and a more effective crisis management tool. Among Senator O’BRIEN (Tasmania) (6.35 these changes, the predictability of the IMF’s pm)—On behalf of the chair of the Rural and access to the credit arrangements during crisis Regional Affairs and Transport Legislation periods will be increased. Strong governance Committee, Senator Sterle, I present the re- structures will be retained, requiring the agree- port of the committee on the provisions of ment of a large majority of participants before the the Excise Tariff Amendment (Aviation Fuel) New Arrangements to Borrow can be activated. Bill 2010 and a related bill, together with the The IMF played an important role during the Hansard record of proceedings and docu- global financial crisis in restoring more normal ments presented to the committee. conditions in financial markets, but the global economic recovery is not yet assured. Australia’s Ordered that the report be printed. prosperity will rely on a return to strong and sta- Finance and Public Administration ble growth in the world economy. Rapid imple- References Committee mentation of the New Arrangements to Borrow Report would be a strong statement of our commitment to that recovery and would improve confidence Senator RYAN (Victoria) (6.35 pm)—I within financial markets. present the report of the Senate Finance and The ACTING DEPUTY PRESIDENT Public Administration References Committee (Senator Cash)—In accordance with stand- on COAG reforms relating to health and ing order 111, further consideration of this hospitals, together with the Hansard record bill is now adjourned to the first day of the of proceedings and documents presented to next period of sittings, commencing on the committee. 24 August 2010. Ordered that the report be printed. BUDGET Senator RYAN—I seek leave to move a Consideration by Estimates Committees motion in relation to the report. Reports Leave granted. Senator O’BRIEN (Tasmania) (6.34 Senator RYAN—I move: pm)—Pursuant to order and at the request of That the Senate take note of the report. the chairs of the respective committees, I The evolving time limits we have have got present reports from all legislation commit- shorter and shorter, so I will be as brief as I tees in respect of the 2010-11 Budget esti- can. I will commence my comments by re- mates, together with the Hansard record of cording my thanks to the secretariat. This the committees’ proceedings and documents was a short inquiry into a very significant received by committees. issue. The secretariat has worked tirelessly, Ordered that the reports be printed. and I think all members of the committee particularly appreciated their efforts over the last two weeks. This is a report into the gov- ernment’s announcements regarding health reform, but they can more accurately be characterised as ‘announcements regarding

CHAMBER Wednesday, 23 June 2010 SENATE 4211 hospital administration and funding’. It is in I have also made some personal additional no way the most substantial reform since comments regarding the structure of our Medicare. It is focused entirely on hospi- health system. Despite the superficial nature tals—almost to the exclusion of health. of these alleged reforms, they still contain The government had numerous reports to the potential to stifle the dynamic elements draw on but needed to make a political an- of our health system that we will depend on nouncement, and it did this rather than make for future reform. The most important exam- a health announcement. We have heard that ple of this in the past was undoubtedly the from a number of stakeholders, in particular, Kennett government’s introduction of over the last two weeks. There is no better casemix funding in Victoria in the 1990s. example of that than with respect to mental The very reform that this government is health and the government’s failure in that claiming as its own was pilloried by the ALP regard. This became clear at the inquiry. and then opposition leader Mr John Brumby There is little detail available outside the when introduced. The then minister, the late intergovernmental agreement and little detail Marie Tehan, was vilified by the Labor Party about what this will actually mean for pa- in Victoria and in Canberra. The hypocrisy of tients in public hospitals across Australia. It Premier Brumby and the Labor Party in this is typical of Labor. This was all about inputs, regard cannot go unnoticed. We have long processes and flow charts so beloved by our memories, just as the Prime Minister does. Prime Minister; it was not about patients. It Senator POLLEY (Tasmania) (6.39 was typical in its use of rhetoric to overstate pm)—I would like to add my comments in the political case, but it let the detail slip. We relation to the heavy workload that all our do not know how many Local Hospital Net- committee secretariats have to deal with in works will be set up, we do not know where this place and I would like to commend them they will be, we do not know their bounda- for their work on this report by the Senate ries, we do not know the boundaries of the Finance and Public Administration Refer- Medicare Locals, we do not know how these ences Committee on COAG reforms relating will interact with the Local Hospital Net- to health and hospitals. I would also like to works and we do not know the role of local thank the 37 contributors for their submis- clinicians and health professionals in both of sions and the witnesses who came before us. these bodies. But let us put on the record what this ref- What we do know, however, is that the erences committee was all about. It was a Commonwealth Auditor-General does not political stunt, because those opposite cannot have the power to audit the Local Hospital deal with the facts. The facts are that when Networks, as these are creatures of state par- we came into government in 2007 the health liaments. Given the discoveries of the Victo- system in this country had been neglected for rian Auditor-General about the shenanigans over 11½ years. The now Leader of the Op- that have been undertaken in certain Victo- position has proven himself to be one of the rian public hospitals under the Victorian La- worst ministers for health that this country bor government, this is a critical flaw in the has had to deal with. In relation to the Na- plan, as the Commonwealth parliament will tional Health and Hospitals Reform Com- be able to exercise no oversight over these mission, I will quote from the former Chair new bodies. when he came before the committee: … it would be fair to say that we are all quite delighted that the vast majority of what we put

CHAMBER 4212 SENATE Wednesday, 23 June 2010 forward—which represented, as I said, the think- Senator FIERRAVANTI-WELLS (New ing of thousands of people around Australia—was South Wales) (6.42 pm)—Australians had an being acted upon. expectation that Mr Rudd would fix hospi- I think the investment that has been envisaged tals. That was his promise in 2007. Remem- is a very significant investment and similar to ber, ‘The buck stops with me. I have a plan what we hoped for. to fix hospitals by 2009.’ Of course 2009 What better endorsement would you have for came and went. We have no plan. When the what the federal government has been able to heat and the pressure really started to be put, negotiate with all the states and territories, he decided it was time that he needed to do with the exception of WA. I think that is something—a plan that is now in disarray. really quite significant. I urge people to read Despite all the hype and all the talk and all this report. The government members—both the spin without the substance, another cob- Senator Cameron and myself—put in a dis- bled-together plan emerged from the Prime senting report, because we believed that it Minister. was essential that the facts of the hearing After 2½ years that this government had were put on the public record. to develop a plan to ‘end the blame game’, Those opposite continually like to quote what do we have? We were told, ‘We did not Catholic Health Australia. I would also like formally start this agreement until 5 Febru- to quote from the evidence that was given ary’—the formality started on 5 February— before us. Committee witnesses such as and then there was the Prime Minister at the Catholic Health Australia all reinforced the National Press Club on 3 June with his first true fact and that is that the problems that we blueprint, the blue book. So we went from are facing in this country now with our the big promises in the blue book on to the health system have not been brought about sales pitch that the government had in the because of any incompetence on behalf of green book. Then reality set in and we had our government. In fact, it has been a long, the agreement and we had the red book. Of long road to get where we are. They said: course, the reality is very different from the Why would we think that providing public hype. The wheels are starting to fall off. It is elective surgery to patients within clinically rec- very clear that ‘local’ does not mean local. ommended times is terrific? It is because we are The doctors on the Local Hospital Networks seeking to ensure that all Australians, regardless will not come from the local area, they will of income level and regardless of their socioeco- come from outside the area. nomic status, have equitable access to health care when they need it. The transparency and the accountability so touted in the red book to stop the states They also said, ‘after all that is part of our syphoning off monies and using dollars for responsibility to provide the best possible bureaucracy are gone; the National Funding health care for all Australians.’ There are so Authority—gone, dumped even before the many elements. Whether you talk about aged ink was dry. Funded? This campaign is a care, mental health, e-health, it is there in false, deceptive and misleading campaign of this report. I urge you to read it to get the real federal funding, and run locally, is just that: facts as to where the opposition stands and $29.5 million—another hypocrisy of this why this country now is facing the dilemma government. They called government adver- and we are doing the reforms that are so tising a cancer on democracy and here is badly needed. their independent committee approving this campaign without even looking at the ads.

CHAMBER Wednesday, 23 June 2010 SENATE 4213

We have no real reform. As people said, health. That was a billion dollars from the ‘Labor’s wasted opportunity for real health.’ health system. No real reform, business as usual with the What were they spending the money on? states and, of course, the many, many spe- They were spending the money on pork- cific concerns. As the AMA said: barrelling and electoral bribes. That was the The AMA is concerned that the funding struc- economic incompetence of the Howard gov- ture agreed to in the IGA will not end the blame ernment. They allowed working people and game, but instead merely provide different oppor- working families to not have access to decent tunities to undermine and ‘game’ the system. health, because they were too busy pork- So more bureaucracy—forget ending the barrelling and trying to bribe the electorate. blame game—because that is exactly what How dare the opposition talk about lost op- we are going to have. The public expectation portunities in health when the Howard gov- of fixing the hospitals will not be met. There ernment was responsible for 11½ years of is no confidence that our public hospitals incompetence, neglect and cost cutting. That will be fixed; there is more of the same. One is the record of the Howard government. only has to look at page 6 of the Australian Even Dr Kerryn Phelps said at the time: today—the headline says it all: ‘Reforms to The Treasurer, Peter Costello, announced in Janu- health “business as usual”’—because that is ary of this year that there would be no new money what it is. The states are more entrenched for health in this budget, and it appears that that’s than ever and this is business as usual. This exactly what’s been delivered. is not reform. This is not what the Australian She went on to say: public wanted. I’d have to say it’s very unpopular. It’s not seen to Senator CAMERON (New South Wales) address the fundamental issues, particularly in (6.45 pm)—I will not try to speak as quickly general practice, which relate to access and af- as Senator Fierravanti-Wells did, and if I do fordability. not get everything in I will just have to live I can go through the AMA’s quotes for every with that. I find it absolutely hypocritical that budget under the Howard government, where Senator Fierravanti-Wells would stand up the Howard government was ripping the here and question the Labor government’s heart out of Australia’s health system. We are record on health. We have to analyse the about changing that. We are about making Howard government’s record on health. sure that we can deliver a decent health sys- When the current Leader of the Opposition, tem for every working family in this coun- Tony Abbott, was the minister for health in try—not just if you are rich enough to pay 2003, $108 million was cut from health. for it. In the public hospital system, we want Here we have the opposition daring to argue to ensure that the money is there for ordinary about more money being spent on health, Australian working families. (Time expired) when they were the arch cutters of funding to Question agreed to. health. In 2004, $172 million was cut by Tony Abbott from the health budget. In 2005, Rural and Regional Affairs and Transport Tony Abbott cut $264 million from the References Committee health budget, and in 2006, $372 million was Report cut out of the health budget. If the Howard Senator HEFFERNAN (New South government had been re-elected, a further Wales) (6.48 pm)—I present the final report $497 million would have been cut from of the Rural and Regional Affairs and Trans- port References Committee on the possible

CHAMBER 4214 SENATE Wednesday, 23 June 2010 impacts and consequences for public health, doned baby boy held in Shepparton at the trade and agriculture of the government’s beginning of June this year reiterates the decision to relax import restrictions on beef, need to protect and save the lives of aban- together with the Hansard record of proceed- doned babies instead of allowing them to be ings and documents presented to the commit- left to endure harm or even death, as was the tee. circumstances in this terrible story. The Ordered that the report be printed. abandoned baby known as Angel Baby was left at a bus shelter in Shepparton in July Senator HEFFERNAN—I seek leave to 2008. Angel Baby was finally laid to rest on move a motion in relation to the report. 3 June this year at the completion of a cor- Leave granted. onial inquest, nearly two years after he was Senator HEFFERNAN—I move: found abandoned and dead. Sadly, the baby’s That the Senate take note of the report. mother was never identified and is yet to This inquiry was about the government mov- come forward. One cannot begin to imagine ing from precautionary principle to risk how this mother must be feeling after leaving analysis for the importation of beef from her newborn baby in the knowledge that he countries that have had or have BSE. In view may not be found and might ultimately die. of the fact that the industry decided to self- This is a sad story but we cannot assume that insure some years ago and not go to the trou- the mother felt that she had no other option ble of mandatorily removing SRMs, in my but to leave her baby, as she did, in the view this puts the Australian public at a risk. knowledge that it might ultimately die. The committee has three recommendations. Monsignor Peter Jeffrey, the Shepparton Debate interrupted. police chaplain, who conducted the funeral service for Angel Baby, said that there had DOCUMENTS been extraordinary community support at The ACTING DEPUTY PRESIDENT this sad event and said: (Senator Cash)—Order! It being 6.50 pm, There has been amazing support in two main ar- the Senate will proceed to the consideration eas from the community, the respect for the life of of government documents. Orders of the day the infant and also concern for the mother. nos 74 to 99 relating to government docu- It was of some comfort to see that there were ments were called on but no motion was people who cared for Angel Baby and his moved. situation, and who wanted to provide him ADJOURNMENT with a beautiful funeral service. Bereave- The ACTING DEPUTY PRESIDENT ment assistance and Monsignor Jeffrey, as (Senator Cash)—Order! There being no well as many helpers and volunteers in consideration of government documents, I Shepparton, organised and conducted the propose the question: funeral service for this poor baby who did That the Senate do now adjourn. not get the chance to grow up and experience all the things that a young boy should. There Baby Safe Havens are also people in my home state of Tasma- Senator POLLEY (Tasmania) (6.52 nia who followed the story of Angel Baby pm)—I rise tonight in the Senate to speak on and were concerned throughout for the out- the heart-wrenching issue of child abandon- come. It is comforting to see that so many ment and the need for baby safe havens in people do care about abandoned babies who Australia. The funeral service for an aban- are never given an opportunity to live a long

CHAMBER Wednesday, 23 June 2010 SENATE 4215 and happy life. Angel Baby did not get the in the US that allow women to give up their opportunity to play with cars and trucks, to babies safely and anonymously rather than play chases at school or to go to his friend’s abandon them. I hope she sticks to her word. birthday parties. He did not get to get his I hope that is an election commitment that license, have his first girlfriend, get married will be kept. or have children of his own. The Independent member for the elector- I have previously spoken to the Senate ate of Dubbo, Dawn Fardell MP, has also about the need for baby safe havens that voiced her support for baby safe havens in would allow for children to be given a the New South Wales parliament in a speech chance at life, a chance to grow up and ex- in March of this year. Ms Fardell has been perience what life has to offer. Something vocal in her support for baby safe havens. I needs to be done to allow unwanted babies am grateful for her assistance in raising the same chances as those who are born into awareness and support for this important a welcoming and loving family. A baby safe issue. haven would allow for a safe place for un- I have recently written to all state Pre- wanted babies to be left, without the mother miers and attorneys-general yet again. While having to fear prosecution. Sadly, Angel some states already have what they believe is Baby did not have the opportunity to be adequate legislation to support babies, some raised by people who loved him. Instead, he states have indicated support to maybe con- was left to endure the harsh elements at a bus sider this proposal. I continue to gather sig- shelter that ultimately led to his death. It natures for my baby safe haven petitions that needs to be acknowledged that something have I presented previously both to the Sen- can be done about this—baby’s lives can be ate and to the Tasmanian House of Assembly. saved. To date, over 380 signatures have been pre- There is growing support for the imple- sented to the Tasmanian House of Assembly mentation of baby safe havens. Recently, the and over 430 to the Senate. A Facebook Australian Medical Association voiced their group Support ‘Safe Havens’ for Abandoned support for their implementation. AMA’s Babies has over 4,800 members. This shows president, Dr Andrew Pesce said: the magnitude of the support for abandoned Government needs to consider Baby Safe Haven babies and the need to protect them. Also, laws as a part of a support plan to assist strug- last year the Tasmanian state conference of gling mothers. It’s obviously very important that the Catholic Women’s League passed a reso- we as a community do everything we can to assist lution supporting my proposal. I put on the mothers and obviously their babies who are in public record my thanks to that organisation such a degree of distress that they’re thinking of for their caring work. It is clear that there is abandoning their baby. an increasing amount of public support on Pru Goward MP, the opposition member for this matter. There is a growing consensus Goulburn in the New South Wales state par- that community members support this idea liament, has also voiced her support for baby and there is a need for continued debate to safe havens. In April this year, she said that ensure that the best possible outcomes are the New South Wales opposition would sup- achieved. port the introduction of baby safe havens in A number of countries around the world Australia and also said that the New South have adopted measures to protect unwanted Wales coalition would support the introduc- babies from harm and death. In May this tion of baby safe haven laws similar to those

CHAMBER 4216 SENATE Wednesday, 23 June 2010 year, Canada adopted a newborn drop-off where babies can be placed 24 hours a day. A facility for mothers to leave their babies sensor alerts the people in the house whenever a anonymously and safely. The door to this newcomer has arrived. We will come to fetch the facility is set in a private alcove, with an baby and will thereafter begin caring for him/her. alarm sounding inside the hospital 30 sec- However, not all babies come through the “door onds after the baby is left inside the alcove of hope”. Sometimes the police bring them or a and the mother has left. Doctors are then able desperate mother will hand over her baby person- ally, or hospitals phone us to pick up little ones, to assess the health of the baby, treating it in whose mothers have disappeared after the deliv- the same way as any other baby in the hospi- ery, leaving their babies behind. tal. The mother remains anonymous Reports indicate that Germany has imple- throughout the entire process. Police in Can- mented approximately 80 baby hatches, re- ada have supported the implementation of cently celebrating their 10th anniversary. the facility and do not seek out or investigate These hatches are highly successful. I quote: the mothers who use the facility. This is a positive step to save the lives of babies in Thirty-eight babies have been left in the organisa- Canada. tion’s two baby hatches since 2000. Of these, 14 mothers have returned to reclaim their children, Europe has had facilities in place for a and the number of abandoned or killed babies has number of years to provide a safe place to dropped in the city … leave unwanted newborns. Government and The need for baby safe havens or similar religious organisations in Asia and European facilities is recognised around the world and countries are reintroducing safe newborn it is time that Australia followed this lead. baby drop-off facilities, recognising the im- Most of the time, stories about abandoned portance of the issue of baby abandonment and the need to save lives. babies do not have a happy ending. But we can make a difference. We can make it pos- The United States enacted legislation in sible for unwanted babies to have a happy the early 2000s to provide for the legal aban- life, full of love and care rather than being donment of newborn babies. This was done left abandoned. Australia now needs to fol- to discourage mothers from abandoning or low the lead of countries such as Canada to harming unwanted babies, with the main implement baby safe havens to save the lives incentives being anonymity and immunity of abandoned babies and to give these babies from prosecution. A range of facilities are a chance. Even if a baby safe haven saved used, including hospitals, police stations, fire just one baby’s life it would make it all worth stations and churches. Also, in four states, an while. I encourage the community to talk emergency call can be made to request the about this issue and have the debate, and I pick-up of a child. call on all governments to start implementing The concept of baby safe havens has been such a process. a huge success in South Africa. The non- Professor Christopher Nordin profit organisation Door of Hope has set up a Senator XENOPHON (South Australia) program at the mission church in Johannes- (7.02 pm)—This evening I would like to pay burg offering unwanted babies a chance at tribute to Professor Christopher Nordin and life. I now quote from the Door of Hope website: the contribution he has made to medical re- search and preventive health in Australia, In August 1999 we installed a “hole in the wall” particularly in the area of osteoporosis and or “baby bin” in the wall of the Mission Church, bone density. I want to pay tribute to Profes-

CHAMBER Wednesday, 23 June 2010 SENATE 4217 sor Nordin tonight because, at the end of this link between calcium and osteoporosis. He month, he will retire from clinical work at has also pioneered research on the connec- the Royal Adelaide Hospital at the age of 90. tion between vitamin D and calcium defi- He will, however, continue his research ciencies and osteoporosis. In fact, he was the work, contributing to a field he has been part first to expose the universally low vitamin D of since the 1950s. levels among people in residential care, Professor Nordin was born to a Swedish- proving them to be at greater risk of develop- Finnish father and an English mother and ing osteoporosis. His work led to South Aus- was educated in . During the Second tralia being the first state to implement a pol- World War, he served as a translator to the icy of providing vitamin D and calcium sup- British legation in Stockholm. After the war plements to nursing home residents. he returned to England, where he began his Professor Nordin is also the chair of a studies in medicine. He received his qualifi- South Australian Department of Health cations in 1950 and went on to specialise in working party dedicated to researching os- endocrinology. teoporosis and promoting combined vitamin In 1954, only four years after receiving his D and calcium supplements for all people in qualifications, he began to explore the link residential care. He would like to see similar between calcium deficiency and osteoporo- supplements added to the Pharmaceutical sis. At the time, osteoporosis was thought to Benefits Scheme, making them more afford- be related to protein deficiency, a view that able for pensioners and the elderly—those had been promoted strongly during the most at risk of osteoporosis. Professor Nor- 1930s. However, Professor Nordin felt that din says that, while the supplements are not the truth lay in earlier work, dating back to as expensive as many of the drugs listed on the 1900s. These studies focused on calcium the PBS, reducing their prices even further as the cause of osteoporosis. Professor Nor- will help more pensioners to be able to see din eventually proved the connection and his them as a necessity rather than a luxury. He work was published in 1960 after some diffi- is a great asset to my home state of South culties. The link between calcium, vitamin D Australia, and to Australia as a whole. and osteoporosis is now universally ac- I was fortunate enough to meet with Pro- knowledged as vital to the treatment and fessor Nordin a few weeks ago to discuss his prevention of this debilitating disease. views on preventive medicine. I believe that In 1981, Professor Nordin moved to South preventive medicine is the one of the biggest Australia to take up the position of senior untapped areas of health care today. While I research fellow at the Royal Adelaide Hospi- acknowledge that the government committed tal. He will retire from clinical work at the various amounts in the last budget to preven- end of this month after nearly 30 years with tive health, particularly in relation to smok- the Royal Adelaide Hospital. Europe’s loss ing and alcohol consumption, I think we was very much South Australia’s and Austra- need to go much, much further. We need to lia’s gain. Over the span of his career, he has listen to experts such as Professor Nordin. contributed to over 500 scientific publica- There are obvious reasons why preventive tions, has been elected a Fellow of the Royal health is often overlooked as a healthcare College of Physicians in both London and strategy. Increases in funding to specific ser- Australia, and became an Officer of the Or- vices or programs often have immediate der of Australia in 2007 for his work on the quantifiable outcomes—more beds, more

CHAMBER 4218 SENATE Wednesday, 23 June 2010 doctors or nurses and more services. It is medical costs to our society very signifi- harder to justify spending large amounts of cantly. Professor Nordin believes we should money when the outcomes are not easily be offering free bone densitometry—a rela- visible. When the benefits will only start to tively cheap process—to women at meno- become apparent in 10, 15 or 20 years time, pause so that those at risk are identified ear- the temptation is to focus on something that lier and can take appropriate steps to prevent will provide instant gratification. There is a the onset of osteoporosis. strong temptation to do that. Professor Nordin believes this type of This is the way forward if you want a preventive model can be extended to other stronger and better health system; however, conditions such as hypertension, which is Professor Nordin’s argument—and it is one linked to high salt intake. In this case, meas- that I agree with—is this: spending money ures such as clearer food labelling and public on preventive health programs now will save awareness, in conjunction with medical us significant amounts of money in the future monitoring, could lead to a reduction in as fewer people become sufferers of prevent- cases. We know that a healthy diet and exer- able diseases. Professor Nordin goes even cise reduces our chances of developing a further and says that preventive health whole range of health problems from diabe- should become a specialty in its own right. tes and heart disease to Alzheimer’s. It is This would mean that chairs of preventive now time for us to make a concerted effort to health could be established in major univer- develop prevention and early intervention sities, conducting more research into the best programs for some of our most common ill- and most effective forms of preventive nesses and diseases. health. Professor Nordin has devoted his career to In his own field, Professor Nordin is a finding ways to reduce the impact of osteo- strong advocate for early testing to prevent porosis. His belief is that funding should be the future onset of osteoporosis. It is now directed towards prevention at midlife, rather possible to predict the likelihood of someone than expensive treatment at old age with the developing osteoporosis up to twenty years enormous costs involved with fractures and in advance. If someone is considered likely all the debilitation they cause, the nursing to develop this devastating condition, there and all the hospital treatment associated with are several reliable measures a person can that. To put it another way: spend money take to prevent it. These include increases in building a strong fence at the top of the cliff calcium and vitamin D, a restricted salt diet instead of funding the world’s best ambu- and weight-bearing exercise. It is relatively lance at the bottom. This is what we should easy to identify those at risk through bone be doing. densitometry. This procedure is currently Professor Nordin’s dedication to his work available for free for women who enter early has benefited countless people all over the menopause, suffer a fracture or are over 70 world. I would like to take this opportunity years of age. to acknowledge Professor Nordin, to thank If we can help people identify their risk him and wish him all the best for his future and act accordingly, why wouldn’t we? Not work. He is a remarkable Australian. South only will it save people years of physical Australia is very privileged to have had him pain, emotional suffering and reduced quality as a citizen of our state for a number of of life but it will also reduce the associated

CHAMBER Wednesday, 23 June 2010 SENATE 4219 years, and may he continue with his work for have forged outstandingly successful careers many more years. in agricultural banking with the stock firms, Muresk Institute of Agriculture stock marketing, animal marketing and other agricultural and agribusiness products: food, Senator BACK (Western Australia) (7.10 retailing, transport, logistics to name but a pm)—I draw to the attention of the Senate few. the situation with the state of Western Aus- tralia’s leading agricultural education institu- It was only today that friends of Muresk tion and voice the fear that what we are ex- presented a petition to the parliament of periencing in WA may in fact befall other Western Australia urging that the Muresk states in Australia. I speak of the Muresk institute not be closed but that a new oppor- Institute of Agriculture being the agriculture tunity be found so that it can continue 85 and agribusiness wing of the Curtin Univer- years of a proud tradition offering agricul- sity of Technology. For those unfamiliar with tural and agribusiness education. it, it would be the Roseworthy, the Dookie, The Hon. Hendy Cowan, a past Deputy the Gatton or the Hawkesbury of Western Premier of Western Australia, had been Australia. commissioned by the minister for education After 85 years from 1926, Muresk is and the cabinet earlier this year to investigate flagged to be closed as a place of higher ag- all opportunities associated with higher agri- ricultural education and learning. I had the cultural education with a particular reference privilege of being a member of the faculty as to Muresk. Quite correctly, Hendy Cowan a veterinarian between 1975 and 1988, so started with an approach to employers to find have a keen interest. The stimulus or the out from them the quality of Muresk gradu- catalyst for the closure, whilst I do not wish ates. As we expected, he found that the em- to dwell on it, has been the fact that the Cur- ployers are strongly of the view that it is the tin University with some 40,000 students on practical education they receive in the agri- its Perth campus would see that education in cultural environment linked of course to the the city is core to its activity and that the in- science, the economics and the business convenience of a limited number of students management of agriculture and agribusiness 100 kilometres from Perth is less so. Indeed, that is the essence of the quality of that par- whilst I pick up on that, the Kalgoorlie ticular qualification. As an aside, so do the school of mines, again a place of enormous miners in Kalgoorlie form very firmly the distinction in the mining industry over many, view that in that context it is the education many years, also conducted by Curtin Uni- within the mining community rather than in versity, faces I fear a similar fate. the western suburbs of Perth that is the value to those students. Muresk was the first institution in Austral- asia to start agribusiness degree training and I submitted my thoughts to Hendy Cowan the qualifications in the 1980s recognising, because Western Australia and the people unlike agricultural science, which is well within those communities, similarly to those performed by the University of Western Aus- in the other states, are facing enormous chal- tralia, that beyond the farm gate to the cus- lenges. I speak of the whole challenge of tomer’s plate is a critically important part of biosecurity and the availability of food- the cycle of agriculture. It was in that area stuffs—and water, for that matter—going that the agribusiness degree and its graduates into the future. If you reflect just for a mo- over many years now since the mid-1980s ment on what those challenges are, we will

CHAMBER 4220 SENATE Wednesday, 23 June 2010 be feeding another two billion people in the which can embrace all postsecondary train- Asian region alone by 2050. We are facing a ing from TAFE level right through to the scenario where we do not now actually pro- postdoctoral sphere, seamlessly allowing vide sufficient fish product for Australia’s students to come from agricultural colleges community, and we are going to have the and the high schools into agriculture and challenge of feeding our own community as agribusiness education. well as that of the Asian region. Where are I will conclude my remarks, if I may, with the challenges? In the future we will have to the observation that over the last half-century achieve this with less land, less water, less in Australia those students who have been input of finance, less fertiliser and fuel and most disadvantaged in achieving a tertiary fewer nutrients—and at this time we are fac- education have not been those from the low ing the challenge of a rapidly ageing popula- socioeconomic areas of cities—although I tion of farmers. The average age of farmers applaud the moves taken to ensure that stu- and their wives in this country now exceeds dents from low socioeconomic areas do get 60 years, and that is something that we the chance to achieve what they will at the should be reflecting on. I made the point in degree level and in higher education—but my submission to the Cowan review that, if students from rural and remote areas. I ap- ever there was a time when it is essential that plaud the announcement of the last few days we be promoting agricultural and agribusi- that, in government, the coalition will invest ness education, it is now. We should not, on up to $1 billion in a regional education fund the other hand, be diminishing it or constrict- to bridge the education gap that I speak of ing it. between the cities and the regions. Whilst So not only are we faced with the scenario that of course applies to primary and secon- of students from agricultural communities dary education, I make the point that with who will not adjust, in most instances, to a our demography and our geography there are large, city based university campus and significant challenges confronting parents in therefore the need to be able to offer that sort rural and regional areas, be they farmers or of education in a rural climate—and that ex- townsfolk, in ensuring that their children tends right around Australia—but we are also receive adequate education at the tertiary faced with the prospect that students from level. My final comment, my final plea, is urban areas will not be experiencing the ag- that what we are seeing at Muresk, I fear, is ricultural environment if we are in fact to not confined to that institution in Western withdraw from agricultural areas. I make the Australia. We see the pattern around Austra- point that in Western Australia, and I suspect lia and I certainly think it is time that this it is the same in the other states, we just do chamber address the needs of higher agricul- not have the luxury of the competitiveness tural education in this country. that exists between the higher agricultural Victorian Ombudsman: Investigation into universities and institutions. We must have a Brimbank City Council far more complementary rather than com- Senator CONROY (Victoria—Minister petitive environment and share the resources. for Broadband, Communications and the The point that I have made to the Hendy Digital Economy) (7.19 pm)—I rise tonight Cowan review is that this institution needs— to raise an important matter concerning flow- and perhaps others around Australia facing a on effects of the 2009 Victorian Ombudsman similar demise also need—an overarching investigation into the alleged improper con- institute of higher agricultural education

CHAMBER Wednesday, 23 June 2010 SENATE 4221 duct of councillors at Brimbank City Coun- result of this investigation, many innocent cil. At the outset, I wish to advise the Senate political activists have been caught up in a that I raise this matter as a senator for Victo- long-running saga to defend their good ria, not in my capacity as Minister for Broad- names and rebuild shattered reputations. band, Communications and the Digital The focus of this investigation was the so- Economy. Furthermore, the principal set of called Suleyman group of councillors, alleg- circumstances I refer to centre on Mr Hakki edly a group of elected councillors tied to a Suleyman, a man who I am proud to have very popular and electorally successful for- been able to call a friend for many years. Mr mer mayor, Natalie Suleyman. Many false Suleyman is a respected member of the Aus- claims of misconduct were made against tralian Turkish Cypriot community. To this Natalie Suleyman. These accusations proved day he remains the Chair of the Migrant Re- to be so baseless that no charges were laid. source Centre North West and the convenor However, attention was then turned to her of the Turkish Cypriot program on 3ZZZ father, Hakki. And what test did the Om- community radio—a role he has performed budsman apply to this entire investigation? It for 20 years. He has been a proud member of was whether a person had exerted ‘undue the ALP for many years and is a passionate influence’ upon council proceedings or had advocate for democratic processes and the ‘acted inappropriately’. Such accusations are importance of participating in these proc- impossible to quantify and highly subjective. esses. Moreover, such bizarre findings are one of The facts are that a now discredited Om- many factors that have helped shine a light budsman’s report, which has led to not one on the legislative underpinnings of the office single charge being laid to date against those of the Ombudsman in Victoria. adversely named within it, has been used as So profound has been the public’s loss of cover for a relentless, personal hate cam- trust in those currently occupying the office paign against Mr Suleyman. The Ombuds- of this important integrity watchdog and man’s report into Brimbank City Council is a those serving as its investigators that the Vic- torrent of vitriol that found no evidence of torian government charged the Public Sector criminal acts, found no evidence for any Standards Commissioner, Mr Peter Allen, charge to be laid and apparently targeted and the former Secretary of the Department some individuals above others based on scur- of Premier and Cabinet, Ms Elizabeth Proust, rilous allegations from unnamed parties. It with reviewing integrity processes across the undermined the basic right of all Australians state. The Proust review has identified an to participate in the democratic process by out-of-step legislative model that empowers recommending—and, sadly, having this rec- the Ombudsman. The review explicitly calls ommendation agreed to—that no electorate for a modernised Ombudsman Act. A key officer or ministerial adviser may serve si- recommendation was that a revamped act multaneously as a councillor. The Ombuds- should require the publication of guidelines man’s report into the is on the conduct of investigations in accor- now a laughing stock, save for the fact that it dance with codified principles of procedural has disrupted people’s lives and left reputa- fairness. Additionally, those subject to any tions in tatters. The calls for an Ombuds- investigative procedures conducted by the man’s inquiry were the result of a bizarre Ombudsman would have the right to seek power play by disgruntled, mostly failed, legal advice and a published reply. Further, councillors from the City of Brimbank. As a such persons would have the right to disclo-

CHAMBER 4222 SENATE Wednesday, 23 June 2010 sure of adverse material, affording individu- this robust review have not spared people als the right to be advised of evidence pre- like Hakki, or indeed his family, from having sented against them. their reputation continually attacked and left Sadly, during the Ombudsman’s inquiry in tatters. into the City of Brimbank no such processes In no small part, this reputational damage were in place. Indeed, my good friend Hakki has been wrought by a sustained, biased and Suleyman has suffered tremendously at the prejudicial media campaign, mainly under- hands of those carrying out that investiga- taken by a journalist at the Age newspaper in tion. Mr Suleyman has provided this infor- Melbourne. The reporting has been led prin- mation by way of formal complaint to the cipally by Royce Millar, whose pursuit of a Ombudsman’s office. Before the interview grubby story—purporting political scandal— processes had even begun, his basic rights led in one instance in the week of 11 June were affronted. Mr Suleyman states that he last year to his harassment of ALP members was threatened by investigator Lachlan by telephone calls late at night. I understand McCulloch, who asked, ‘Do you know who that Mr Millar did not even have the courtesy we are? Be careful.’ Such an off-the-record to apprise branch members of the fact that he threat from a public official is unconscion- was a journalist. Indeed, he masqueraded as able. Mr Suleyman states that he was belit- someone conducting an ALP survey on be- tled and harassed, suffered the implication half of the ALP. Mr Millar, as a longstanding that his job was in danger and was badgered employee of the Age, should be aware of the with the threat of phone taps. He states that journalist’s code of ethics; one should iden- upon the conclusion of the interview—or tify themselves as a journalist, the organisa- inquisition as it may be better categorised— tion they represent and not exploit a person’s he was further threatened by Mr McCulloch, vulnerability or ignorance of media practice. who closed on him and said with malice: In this clumsy piece of journalism, Mr Millar ‘You lied today. I didn’t finish you off yet.’ identified that there are a number of active He also said, ‘Don’t you talk to anyone about ALP members who are, to use his words, ‘of this, not even your wife, you got it?’ Such an Turkish background’. Seemingly by virtue of intimidatory statement is hardly becoming of their heritage, Mr Millar is willing to con- an office that investigates matters relating to demn them as nothing more than stacks in professional integrity. Nor, in my view, does thrall to Mr Suleyman. Moreover, Mr Millar it constitute being formally appraised of has taken a perverse delight in explicitly one’s obligations during an Ombudsman’s naming and victimising Hakki Suleyman and investigation. This is a disturbing allegation his daughter, Natalie. Mr Millar has acted as about an official trusted to investigate others the self-appointed judge, jury and execu- in the case of Brimbank. tioner and has even questioned Mr Suley- Thankfully, the Proust review has taken man’s democratic right to participate in the important steps toward overhauling the pro- ALP. Mr Millar sought to shame Mr Suley- cedures in place at the Ombudsman’s office man’s election to the ALP national confer- and restoring transparency. To ensure that the ence as a miscarriage of due process, in an independence of the Ombudsman remains article on 19 June last year. The relentless accountable to the parliament, the review conduct of Mr Millar fuelled calls for Mr recommended that the Ombudsman be sub- Suleyman to be stood down from his em- ject to oversight by parliamentary commit- ployment. This was highlighted in Mr Mil- tee. However, such important proposals from lar’s report from 7 May last year in which he

CHAMBER Wednesday, 23 June 2010 SENATE 4223 verballed the Ombudsman’s report—at that [Legislative instruments are identified by a point still unreleased—by exaggerating an Federal Register of Legislative Instruments alleged impropriety around ‘MPs employing (FRLI) number] councillor comrades’. He further stated that Aged Care Act— ‘... the findings are likely to end some politi- Aged Care (Amount of Flexible Care cal careers and damage others’. Sadly, this Subsidy – Extended Aged Care at Home has been prophetic: the matter of Mr Suley- – Dementia) Determination 2010 (No. man’s employment is still being disputed 1) [F2010L01530]*. with the Victorian parliament. As such, I will Aged Care (Amount of Flexible Care say very little of it here save that Mr Suley- Subsidy – Extended Aged Care at man, in my opinion, performed his duties in Home) Determination 2010 (No. 1) the community diligently and with the great- [F2010L01529]*. est degree of respect for the dignity of the Aged Care (Amount of Flexible Care office. Subsidy – Innovative Care Service – Congress Community Development and Mr Suleyman has been hounded out of his Education Unit Ltd) Determination job by a combination of relentless persecu- 2010 (No. 1) [F2010L01532]*. tion by Ombudsman employees and a jour- Aged Care (Amount of Flexible Care nalistic campaign that borders on the xeno- Subsidy – Multi-Purpose Services) De- phobic. Even now, when the Ombudsman’s termination 2010 (No. 1) report has been found to be a baseless docu- [F2010L01531]*. ment and to have resulted in not one charge Aged Care (Amount of Flexible Care being laid, Mr Millar and the Age newspaper Subsidy – Transition Care Services) De- have refused to acknowledge this or even termination 2010 (No. 1) apologise for their campaign. Mr Millar has [F2010L01535]*. misused his position to attempt to smear re- Aged Care (Community Care Subsidy spected members of the community and has Amount) Determination 2010 (No. 1) conducted a witch-hunt, based upon political [F2010L01528]*. affiliation, that has no place in an open de- Aged Care (Residential Care Subsidy – mocracy. Mr Suleyman’s family have suf- Adjusted Subsidy Reduction) Determi- fered and, indeed, the Turkish Cypriot com- nation 2010 (No. 1) [F2010L01295]*. munity of Melbourne’s north-west involved Aged Care (Residential Care Subsidy – in the great Australian Labor Party have suf- Amount of Oxygen Supplement) De- fered by implication. Many innocent political termination 2010 (No. 1) activists have been caught up in the investi- [F2010L01294]*. gation of the Ombudsman and its attendant Aged Care (Residential Care Subsidy – media coverage. However, none have suf- Amount of Viability Supplement) De- fered as grievously as Mr Suleyman. I thank termination 2010 (No. 1) the Senate for the opportunity to address this [F2010L01512]*. important matter. Aged Care (Residential Care Subsidy – Basic Subsidy Amount) Determination Senate adjourned at 7.28 pm 2010 (No. 1) [F2010L01480]*. DOCUMENTS Civil Aviation Act—Civil Aviation Regula- Tabling tions and Civil Aviation Order 100.5— The following documents were tabled by Instrument No. CASA EX52/10— Exemption – time-in-service recording on the Clerk: maintenance release; Determination – non-

CHAMBER 4224 SENATE Wednesday, 23 June 2010

application of part of CAO 100.5 Migration Act—Migration Regulations— [F2010L01634]*. Instruments IMMI— Commissioner of Taxation—Public Rul- 10/026—Skilled occupations, relevant ings— assessing authorities, countries and Class Rulings CR 2010/20-CR 2010/22. points for general skilled migration vi- sas and certain other visas Product Ruling PR 2010/15. [F2010L01318]*. Taxation Determination—Addendum— 10/029—Level of salary and exemp- TD 96/45. tions to the English language require- Customs Act—Tariff Concession Orders— ment for Subclass 457 (Business (Long 0943936 [F2010L01460]*. Stay)) Visas [F2010L01409]*. 0945229 [F2010L01459]*. 10/030—Specification of occupations 0946989 [F2010L01455]*. for nominations in relation to Subclass 457 (Business (Long Stay)) for posi- 0947673 [F2010L01450]*. tions other than in the business of the 0948291 [F2010L01458]*. nominator [F2010L01412]*. Defence Act—Section 51X—Utilisation of 10/032—Specification of occupations the Defence Force to protect Common- for nominations in relation to Subclass wealth interests against violence if speci- 457 (Business (Long Stay)) and Sub- fied circumstances arise—Report, dated 17 class 442 (Occupational Trainee) Visas June 2010; and order, dated 3 June 2010. [F2010L01414]*. Do Not Call Register Act— National Health Act—Instruments Nos Do Not Call Register (Access to Regis- PB— ter) Amendment Determination 2010 55 of 2010—Amendment determination (No. 2) [F2010L01633]*. – pharmaceutical benefits Do Not Call Register (Administration [F2010L01637]*. and Operation) Amendment Determina- 61 of 2010—Amendment determination tion 2010 (No. 2) [F2010L01632]*. – Pharmaceutical Benefits – Early Sup- Environment Protection and Biodiversity ply [F2010L01639]*. Conservation Act—Amendment of list of 65 of 2010—National Health (Remote CITES species, dated 16 June 2010 Aboriginal Health Services Program) [F2010L01731]*. Special Arrangements Instrument 2010 Federal Financial Relations Act— [F2010L01537]*. Federal Financial Relations (General Veterans’ Entitlements Act—Statements of purpose financial assistance) Determi- Principles concerning— nation No. 12 (March 2010) Acute Articular Cartilage Tear No. 53 of [F2010L01684]*. 2010 [F2010L01666]*. Federal Financial Relations (National Acute Articular Cartilage Tear No. 54 of Partnership payments) Determination 2010 [F2010L01667]*. No. 14 (January 2010) Acute Meniscal Tear of the Knee No. 55 [F2010L01685]*. of 2010 [F2010L01668]*. Hearing Services Administration Act— Acute Meniscal Tear of the Knee No. 56 Hearing Services (Participants in the of 2010 [F2010L01669]*. Voucher System) Amendment Determina- tion 2010 (No. 1) [F2010L01642]*. Dupuytren’s Disease No. 57 of 2010 [F2010L01676]*.

CHAMBER Wednesday, 23 June 2010 SENATE 4225

Methaemoglobinaemia No. 47 of 2010 [F2010L01660]*. Methaemoglobinaemia No. 48 of 2010 [F2010L01661]*. Sinus Barotrauma No. 49 of 2010 [F2010L01662]*. Sinus Barotrauma No. 50 of 2010 [F2010L01663]*. * Explanatory statement tabled with legis- lative instrument. Tabling The following government documents were tabled: Australian Institute of Health and Wel- fare—Report—Australia’s health 2010— Twelfth biennial report. Australian Radiation Protection and Nu- clear Safety Agency—Quarterly report for the period 1 January to 31 March 2010. Education Services for Overseas Students Act 2000—ESOS Assurance Fund—Report on provider defaults—Aerospace Aviation Pty Ltd. Productivity Commission—Report no. 50—Gambling, dated 26 February 2010— Volumes 1 and 2.

CHAMBER 4226 SENATE Wednesday, 23 June 2010

QUESTIONS ON NOTICE The following answers to questions were circulated:

Hawker Britton (Question Nos 2608, 2627, 2631 and 2633) Senator Cormann asked the Minister representing the Minister for Health and Ageing, upon notice, on 8 February 2010: (1) On how many occasions has the current and/or former Minister and associated parliamentary secre- taries in the current parliament, and any departmental officials: (a) met directly with representatives of Hawker Britton; and/or (b) attended meetings that were also attended by representatives of Hawker Britton. (2) For each above mentioned meeting: (a) what was the date; (b) what was the topic of discussion; and (c) which Hawker Britton representatives were present. Senator Ludwig—The Minister for Health and Ageing has provided the following answer to the honourable senator’s question: Responding to this question would require Departmental officials to review calendar and diary entries since December 2007 for meetings that may have involved or been attended by Hawker Britton. This would require the manual examination of a large number of diary and meeting records, which is an un- reasonable diversion of government resources. Conducting the same searches across the diary records of current ministers and parliamentary secretar- ies in this portfolio would be an unreasonable diversion of resources for similar reasons. The records of former ministers and parliamentary secretaries are considered personal information in many circum- stances and no access to those records will be sought. Export Finance and Insurance Corporation (Question No. 2751) Senator Ludlam asked the Minister representing the Minister for Trade, upon notice, on 11 March 2010: (1) Can the Minister outline each step in the decision-making process leading up to the decision to direct the Export Finance and Insurance Corporation (EFIC) to extend $US400 million of loans to the Papua New Guinea (PNG) liquefied natural gas (LNG) project using the national interest ac- count. (2) (a) Which agencies were consulted; and (b) of these, which agencies expressed concern to the Min- ister prior to loans being extended on the national interest account. (3) (a) What concerns did AusAID raise; and (b) are their concerns listed in the national interest as- sessment. (4) Can a copy be provided of the AusAID submission to the national interest assessment on the PNG LNG project. (5) What are the dates and content of any meetings the Minister, the department and EFIC have held with: (a) the Australian exporter/service providers Oil Search and Santos regarding the PNG LNG project; (b) the United States of America-based Exxon Mobil or any of its subsidiaries based in

QUESTIONS ON NOTICE Wednesday, 23 June 2010 SENATE 4227

Australia or PNG regarding the project; and (c) Australian-based construction companies and con- sultants who have applied for tenders associated with the project. (6) On what date did EFIC first come into possession of the report Gold Ridge Social Action Plan evaluation by Australian National University academics Dr John Burton and Dr Colin Filer, dated 20 September 2006, that provides evidence that facilitation payments were made by Australian Solomons Gold Limited (ASG) subsidiary Gold Ridge Mining Ltd to the personal bank accounts of a number of landowner representatives in return for access to reopen the Gold Ridge site. (7) Does the Minister believe that it is appropriate for the Australian Government to provide insurance to a company that used facilitation payments in the manner described. (8) Is the decision by EFIC to grant provisional political risk insurance (PRI) to ASG in 2009, despite the finding of the abovementioned report, consistent with EFIC environmental policy, corruption policy, International Finance Corporation performance standards, Organisation for Economic Co- operation and Development (OECD) common approaches and Equator principles. (9) Will the Minister or EFIC be reporting to the OECD Export Credit Working Group or the Equator Principles Secretariat that it supported a category A project that used facilitation payments in a post conflict context. (10) How much of the Solomon’s PRI is covered by the national interest account. (11) Are facilitation payments contrary to principles of corporate social responsibility. (12) (a) What discussions has the Minister, the department and EFIC had with ASG about the facilita- tion payments; (b) when were these discussions; and (c) what was the nature of the discussions. (13) On what grounds is EFIC satisfied that the use of facilitation payments does not stop EFIC from supporting this project with PRI. (14) Is the Minister confident that ASG undertook the reestablishment of Gold Ridge in compliance with international law and EFIC environmental policy compliance. (15) What does the second PRI policy to ASG cover. (16) With reference to the answer to question on notice no. 2364 (Senate Hansard, 30 November 2009, p. 9632): is it common practice for EFIC to let clients know that insurance has been conditionally approved. (17) Does EFIC agree that it is appropriate that its clients announce to market that they have received ‘conditional insurance’ before such conditions have been fulfilled. (18) What were the precise social and environmental conditions that EFIC imposed on ASG in order for it to receive its second allotment of PRI. (19) Has ASG (now Allied Gold Limited) fulfilled these conditions. Senator Carr—The Minister for Trade has provided the following answer to the honour- able senator’s question: (1) EFIC considered the transaction, which involved extensive liaison with project sponsors. This also included a call for submissions on the environmental and social aspects of the project, to which non-government organisations responded with submissions. The EFIC Board considered the PNG LNG loan transaction, deciding to place part of the loan on its Commercial Account, taking into account capital and counterparty limits, and made a referral for the balance of the request to the Minister for Trade for consideration of National Interest Account support. After extensive consulta- tion with government agencies and discussion with the PNG Government, the Australian Govern- ment considered the issues and approved the loan. (2) (a) The Department of the Prime Minister and Cabinet; the Treasury, the Department of Finance and Deregulation; the Attorney-General’s Department; the Department of Innovation, Industry,

QUESTIONS ON NOTICE 4228 SENATE Wednesday, 23 June 2010

Science and Research; the Department of Resources, Energy and Tourism; the Office of National Assessments; and AusAID. (b) Information on agencies’ input is policy advice to ministers and part of a Cabinet process and therefore is not provided. (3) (a) Any issues raised by AusAID are policy advice to ministers and part of a Cabinet process and therefore are not provided. (b) Issues raised by AusAID and other agencies were taken into account in assessing the national interest. (4) AusAID’s input to the national interest assessment on the PNG LNG project is policy advice to ministers and part of a Cabinet process and therefore is not provided. (5) As would be expected for such a project and given departmental (including the post) and EFIC involvement, there have been a number of meetings held with project proponents and sponsors (such as ExxonMobil, Oil Search and Santos), as well as Australian companies considering tender- ing for contracts, over an extended period and in various locations. It would be a significant diver- sion of resources to detail all such meetings. (6) EFIC first received a copy of an unofficial report on 17 April 2008 which listed Australian National University academics Dr John Burton and Dr Colin Filer as the authors. As the payments referred to in this report may have constituted an offence, DFAT referred the matter to the Australian Fed- eral Police (AFP) which investigated the matter. The AFP investigation was unable to establish to the requisite standard of proof any criminal offences under Commonwealth legislation by ASG or any other entity. (7) Political risk insurance (PRI) on the National Interest Account is provided where there are national interests, subject to project proponents complying with relevant international and domestic re- quirements, such as those set out by the OECD, which cover the use of facilitation payments. The AFP did not establish any criminal offence in respect of the payments (see response to Question (6)). (8) No PRI policies have been issued. Provision of PRI to the Gold Ridge project is conditional on EFIC’s satisfaction with the environmental and social management aspects of the project, consis- tent with accepted international standards. (9) EFIC is not currently providing any support to companies associated with the redevelopment of the Gold Ridge project. Should EFIC issue a policy in favour of the Gold Ridge mine project, it would report in compliance with international requirements. (10) EFIC is not currently providing any support to companies associated with the redevelopment of the Gold Ridge project. Should EFIC issue a policy in favour of the Gold Ridge mine project, all of the transaction would be placed on the National Interest Account. (11) There is no agreed definition of corporate social responsibility (CSR). The Government considers that, as the mine is likely to contribute to sustainable development and the welfare of Solomon Is- landers, as its redevelopment would need to comply with international norms in respect of social and environmental aspects and as no criminal offence under Commonwealth law was established in respect of any payments, there is no inconsistency with CSR. EFIC’s commitment to corporate re- sponsibility, including social, environment and anti-corruption objectives, are available on the EFIC website at: http://www.efic.gov.au/corp-responsibility/Pages/anticorruptioninitiatives.aspx. (12) (a) As the payments may have constituted an offence, DFAT referred the matter to the Australian Federal Police (AFP) for consideration. Given the investigation, it would have been inappropriate for the issue to be discussed with ASG. The AFP did not establish any criminal offence in respect of the payments (see response to Question (6)). (b) Not applicable. (c) Not applicable. (13) The Government’s approval of PRI for the Gold Ridge project was made conditional on EFIC’s satisfaction with the environmental and social management aspects of the project, including the

QUESTIONS ON NOTICE Wednesday, 23 June 2010 SENATE 4229

landowner agreement negotiating process. No offence was made out in respect of the payments (see response to Question (6)). (14) I (Mr Crean) am not aware of any breaches of international law by any companies associated with the project. Support for the Gold Ridge project is conditional on EFIC being satisfied with the en- vironmental and social management aspects of the project and the Government is confident that EFIC’s environment and social policy and processes are sound. (15) There are currently no valid PRI policies issued for ASG. (16) It is normal practice for EFIC, as it is typical for any provider of financial services, to advise clients of the status of approvals for support sought by them. This allows clients to continue with their planning (particularly in terms of the development of complex projects) and respond to issues that may arise in the assessment and consideration of a transaction by a financial services provider. Conditional support should be communicated to the client so that the client can understand the conditions that must be satisfied. (17) ASG was a publicly listed company at the time the conditional approval was given. Public compa- nies are obliged to keep the market informed in compliance with continual disclosure rules. EFIC would not seek to impose any conditions that would result in a public company breaching such ob- ligations. (18) There are currently no valid PRI policies issued for ASG. Provision of PRI would be conditional on EFIC’s satisfaction with environmental audits and management plans; landowner agreements, re- settlement and community action plans and community development plans; and financing ar- rangements. The corruption clause in the PRI policy also was to be amended to ensure that the pol- icy could be cancelled if there were any prior activity which later was found to be in the nature of corrupt activity. (19) EFIC is currently not providing any support to companies (including ASG and Allied Gold) associ- ated with the redevelopment of the Gold Ridge project. Any provision of new support would need to comply with conditions imposed by the Government and EFIC’s requirements including those relating to environmental and social matters which are ongoing obligations. A new assessment will be undertaken given the change of ownership and likely changes to the insurance coverage sought. Civil Aviation Safety Authority (Question No. 2794) Senator Ludlam asked the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, upon notice, on 27 April 2010: (1) How many Boeing 747s that were manufactured between 1969 and 1982 and included approxi- mately 850 kilos of depleted uranium as counterweights in the tail section are entered on the Civil Aviation Safety Authority’s aircraft register. (2) How many such aircraft have been issued with air operators certificates to operate within Austra- lian airspace. (3) Have there been any accidents or incidents in Australian airspace relating to such aircraft. (4) What contingency planning measures are in place in case of an accident or an incident with such aircraft. Senator Conroy—The Minister for Infrastructure, Transport, Regional Development and Local Government has provided the following answer to the honourable senator’s question: (1) and (2) The Civil Aviation Safety Authority has advised there are no such aircraft on the Australian aircraft register.

QUESTIONS ON NOTICE 4230 SENATE Wednesday, 23 June 2010

(3) The Australian Transport Safety Bureau has advised there are no records of accidents or incidents in Australian airspace for such aircraft. (4) Aerodrome emergency procedures include provision for handling accidents and incidents involving hazardous materials. Infrastructure, Transport, Regional Development and Local Government: Program Funding (Question No. 2798) Senator Cash asked the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, upon notice, on 3 May 2010: (1) (a) What are the Government’s current guidelines in regard to promoting cycling and the safety of cyclists; and (b) what funding was provided to support this for each of the following financial years: (i) 2006-07, (ii) 2007-08, (iii) 2008-09, and (iv) 2009-10 to date. (2) How many cyclists have been killed or hospitalised in road crashes for each of the following finan- cial years: (a) 2004-05; (b) 2005-06; (c) 2006-07; (d) 2007-08; (e) 2008-09; and (f) 2009-10 to date. Senator Conroy—The Minister for Infrastructure, Transport, Regional Development and Local Government has provided the following answer to the honourable senator’s question: (1) The Government provides funding to Austroads for the secretariat of the Australian Bicycle Coun- cil, which manages and coordinates the Australian National Cycling Strategy 2005–2010. As part of the Jobs Fund, the Government also established the $40 National Bike Paths Program, which is delivering over 160 new and upgraded bike paths around the country. (2) Cyclists killed or hospitalised due to road crashes, Australia Year Cyclists killed Cyclists hospitalised 2004-05 37 4,038 2005-06 42 4,370 2006-07 44 4,789 2007-08 28 N/A 2008-09 33 N/A 2009-10* 28 N/A Notes * 2009-10 to the end of March 2010 N/A - not available Sources Bureau of Infrastructure, Transport and Regional Economics 2010. Australian Road Deaths Database. Accessed May 2010. Australian Institute of Health and Welfare (AIHW): Henley G and Harrison JE 2009. Serious injury due to land transport accidents, Australia 2006-07. Injury research and statistics series no. 53. Cat.no. INJCAT 129. Canberra: AIHW.

QUESTIONS ON NOTICE Wednesday, 23 June 2010 SENATE 4231

Customs Services (Question No. 2803) Senator Cash asked the Minister representing the Minister for Home Affairs, upon notice, on 3 May 2010: For each state and territory, what has been the cost of providing customs services and processing at air- ports for each of the following financial years: (a) 2005-06; (b) 2006-07; (c) 2007-08; (d) 2009-10 to date. Senator Wong—The Minister for Home Affairs has provided the following answer to the honourable senator’s question: The cost of providing customs services and processing at airports for each state and territory is as fol- lows: QLD* NSW VIC SA WA NT (a) 2005-06 $25,455,617 $41,245,997 $24,241,154 $3,380,950 $11,961,954 $2,757,669 (b) 2006-07 $28,677,690 $42,534,882 $24,559,691 $3,595,903 $13,727,140 $3,830,971 (c) 2007-08 $30,210,691 $43,042,306 $25,997,080 $4,164,201 $13,432,884 $4,835,833 (d) 2008-09 $31,611,633 $45,944,775 $27,723,142 $4,338,533 $15,414,585 $5,481,602 (e) 2009-10 $26,853,900 $39,758,144 $22,696,297 $3,769,420 $13,078,316 $4,856,793 to date** *QLD includes Brisbane, Cairns and Gold Coast airports. ** as at 30 April 2010. The above figures are the cost of processing passengers and crew at airports and exclude national sup- port, the provision of technology and the cost of detector dogs. Attorney-General’s: Privacy Complaints (Question No. 2815) Senator Cash asked the Minister representing the Attorney-General, upon notice, on 3 May 2010: (a) How many complaints relating to the department, agencies and authorities in the Minister’s portfo- lio were received by the Office of the Privacy Commissioner for each of the following financial years: (i) 2006-07, (ii) 2007-08, (iii) 2008-09, and (iv) 2009-10 to date; and (b) what was the sub- stance of the complaints. Senator Wong—The Attorney-General has provided the following answer to the honour- able senator’s question: (a) (i)11, (ii) 11, (iii) 15, (iv) 12. (b) Since 1 July 2006, of the privacy complaints received by the Office of the Privacy Commissioner relating to the Attorney-General’s Department or its portfolio agencies: 11 alleged there had been unlawful and or unfair collection of personal information under Informa- tion Privacy Principle 1. 4 alleged that there had been a failure to provide notice about the collection of personal information under Information Privacy Principle 2. 3 alleged the collection of personal information intruded unreasonably into an individual’s affairs under Information Privacy Principle 3. 9 alleged there were inadequate security measures to protect personal information held under In- formation Privacy Principle 4.

QUESTIONS ON NOTICE 4232 SENATE Wednesday, 23 June 2010

3 alleged that there had been a failure to provide access to personal information under Information Privacy Principle 6. 4 alleged that there had been a failure to make appropriate amendments to personal information under Information Privacy Principle 7. 7 alleged that there had been a failure to check the accuracy of personal information under Infor- mation Privacy Principle 8. 1 alleged that personal information had been used for an irrelevant purpose under Information Pri- vacy Principle 9. 3 alleged that there had been improper use of personal information under Information Privacy Prin- ciple 10. 32 alleged that there had been improper disclosure of personal information under Information Pri- vacy Principle 11. 1 alleged that there had been unlawful disclosure of spent conviction information under Part VIIC of the Crimes Act 1914 (Cth). Please note complaints can contain more than one allegation, so the numbers of allegations will ex- ceed the total numbers of complaints received.

QUESTIONS ON NOTICE