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The Auditor-General responded on 21 August 2020 to correspondence from the Hon Mark Butler MP dated 26 July 2020, requesting that the Auditor-General review the integrity of the Supporting Reliable Energy Infrastructure Program, in particular with reference to the grant to Shine Energy. The Auditor-General provided a follow-up response on 16 September 2020.
16 September 2020
The Hon Mark Butler MP
Shadow Minister for Climate Change and Energy
Federal Member for Hindmarsh
By email: Mark.Butler.MP@aph.gov.au
Dear Mr Butler
Following on from my letter to you on 21 August 2020, regarding your request that I review the integrity of the Supporting Reliable Energy Infrastructure program, with particular reference to the grant to Shine Energy, this letter is to advise that an assurance review The Award of Funding under the Supporting Reliable Infrastructure Program has commenced.
The objective of this review is to assess whether the award of funding under the Supporting Reliable Energy Infrastructure Program was informed by an appropriate assessment process and sound advice that complied with the Commonwealth Grant Rules and Guidelines. The ANAO proposes to examine if the Department of Industry, Science, Energy and Resources has:
The report is expected to table in the Parliament in January 2021.
To receive updates on the progress of the audit, please subscribe through the following link: https://www.anao.gov.au/work/assurance-review/the-award-funding-under-the-supporting-reliable-infrastructure-program.
Yours sincerely
Grant Hehir
21 August 2020
The Hon Mark Butler MP
Shadow Minister for Climate Change and Energy
Federal Member for Hindmarsh
Dear Mr Butler
Thank you for your letter of 26 July 2020 requesting that I review the integrity of the Supporting Reliable Energy Infrastructure program, with particular reference to the grant to Shine Energy.
The Australian National Audit Office (ANAO) published its 2020-21 Annual Audit Work Program (AAWP) in July 2020. The AAWP is designed to reflect the ANAO’s audit strategy for the coming year and inform the Parliament, government entities and the public of the planned audit coverage for the Australian Government sector. The AAWP, and an overview of how the program is planned and developed, is available from the ANAO’s website at https://www.anao.gov.au/work-program.
I will consider your request for an audit of the award of funding to Shine Energy under the Supporting Reliable Infrastructure program in relation to the audit topics currently identified in the AAWP and priorities for audit coverage across the public sector. I will provide you with advice on the outcome of my considerations.
Yours sincerely
Grant Hehir
Mr Grant Hehir
Auditor-General for Australia Australian
National Audit Office
GPO Box 707
CANBERRA ACT 2601
By email: grant.hehir@anao.gov.au
Dear Mr Hehir,
I write to you following media reports regarding the Government’s administration of the $10 million Supporting Reliable Energy Infrastructure program, in particular with respect to support for Shine Energy’s proposed Collinsville coal plant project.
As reported today (“Shine Energy invited to apply for Collinsville power station grant two days after securing it”, Guardian Australia, 24 July 2020) the Department of Industry, Science, Energy and Resources has stated:
“On 8 February 2020, the government announced the first three projects to be pursued under the Supporting Reliable Energy Infrastructure program, including up to $4m to support Shine Energy Pty Ltd’s feasibility study for a proposed 1GW … coal plant at Collinsville in Queensland […] On 10 February 2020, Shine Energy [was] asked to submit an application seeking support from the Supporting Reliable Energy Infrastructure program by the Department of Industry, Science, Energy and Resources.”
On that basis, it appears a $4 million expenditure decision regarding the Supporting Reliable Energy Infrastructure program was made at least two full days before the recipient of the grant was asked to apply for an already announced grant.
I ask that you review the integrity of the Supporting Reliable Energy Infrastructure program, in particular with reference to the grant to Shine Energy.
I thank you in advance for considering this request.
Yours sincerely,
The Hon. Mark Butler MP
26/07/2020.