Senate Environment and Communications Legislation Committee, , 4:49:28 to 4:53:08
Discussion regarding the department's oversight role in Snowy 2.0 following a critical ANAO audit highlighting project management deficiencies and cost blowouts.
Topics: Snowy Hydro, Renewable energy
Speakers: Susan McDonald, Mr Mike Kaiser, Matt Minchin, Linda McGrath, Unknown Speaker, Ms Linda McGrath
>> Snowy 2.0. Well, of course, Snowy's a government entity uh with its own board which has its own separate relationship to shareholding ministers. We play some role in supporting shareholding ministers in that, but it's important to understand that the board has its own direct line of communication and reporting lines to the minister uh to the ministers. The shareholding ministers Snowy of course appears here um in not too long. So,
>> I was looking
>> you could direct questions to them. I
was looking for oversight from the department in the ANAO audit process. So given that there's been these um significant blowouts in costs, uh I'm seeking to understand if the ANO will continue to audit the Snowy
>> Well, I can't speak for the
>> You wouldn't have any any oversight of that. that will be the department won't have any oversight of that process of um assessing the costs for that project.
>> No, Snowy is its own separate legal entity with its own board and a separate relationship with the minister.
>> Okay.
>> Senator, if I could clarify, Linda McGrath um division head national energy transformation division. Um uh what the secretary said is is correct but we do provide oversight as the shareholder um departments to support the ministers in terms of um uh the snow operations and that includes um receiving updates from them on how they're implementing the findings of that audit that you referred
>> It's a pretty damning audit report. Um they said that they've not snowy 2.0 has not effectively held the contractors to account for delivery. It's not effectively implemented measures that were intended to manage project risks, does not have access to quality data that it would allow it to appropriately monitor the project. Um, and so I'm seeking to understand how the government is addressing these specific findings of the audit report.
Well, it's it's the responsibility of the entity to respond to those audit
Okay. So, when it says significant deficiency deficiencies in Snowy Hydro's project management, including that they did not have a robust understanding of the forecast cost to complete the project and that Snowy Hydro does not have adequate arrangements to monitor the impact of adjustments on value for money. That's something that the department doesn't have engagement with that I understand independent authority on how they're judiciously managing taxpayers money.
>> I mean we meet with Snowy Hydro um the chair and the CEO and those topics obviously come up for discussion but we don't have any accountability for um for responding to audit reports of another
>> Senator, if I if I may, Matthew mentioned branch and National Climate Energy. Um, >> we we know that Snowy Hydro has um accepted four of the ANAO recommendations and uh one uh accepted in part and are working on an implementation plan to address the the issues that were identified by the ANO report um with uh the implementation that plan expected by the end of 2026.