A “huge” new bureaucracy, numbering thousands of extra public servant positions, would need to be created by the Coalition to establish and support an Australian nuclear power industry, according to the minister for public service, Katy Gallagher.

The proposal for a civil nuclear power program, as described by shadow energy minister Ted O’Brien last year, included “institutional architecture” that he said would entail an expansion of the regulatory agency, the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA), a new independent nuclear energy coordinating authority and a government business enterprise to be called Affordable Energy Australia.

Exclusive: Dutton’s nuclear plan requires ‘huge’ new bureaucracy

The opposition’s plans to cut the public service are at odds with the scale of bureaucracy and consultants needed to support its nuclear power proposal, the minister for the public service says. By Karen Barlow.

That architecture raises questions in the midst of the current opposition attacks on the growth and efficiency of the bureaucracy under the Albanese government. The Coalition’s election campaign push to cut government spending, sharpened by the nomination last week of Senator Jacinta Nampijinpa Price to lead a proposed efficiency department, has focused so far on paring back the public service.

The Coalition’s coal-to-nuclear strategy appears to defy that objective, as it requires building a large department “from scratch”, Gallagher tells The Saturday Paper. “We haven’t run state energy systems for so long,” the minister says. “It would be up there with departments like, you would think, Services Australia. Probably a bit smaller than the NDIA [National Disability Insurance Agency, Defence. It would be thousands of public servants.”

Gallagher likens the bureaucratic infrastructure for a nuclear power industry, which the Coalition has said would be taxpayer funded, to Labor’s creation of the Climate Change Department of more than 2500 staff. She expects more than that would be needed, including outside Canberra, for the Coalition plan to build its proposed seven nuclear power plants across five states.

“It would be planning, construction, safety, getting the skills. I don’t even know how you’re going to get the skills into that,” Gallagher said. “It’d be a lot of travel because you’re all around the country.”

https://www.youtube.com/watch?v=EsQRbGlRF-w&t=24s&ab_channel=TheSaturday...

Last year, O’Brien revealed that, under the Coalition’s plan, a coordinating authority would determine how much nuclear power is produced at each of the seven proposed sites before it enters the national energy mix.

“In terms of exactly how many on any plant, we’ll be leaving that to the independent nuclear energy coordinating authority,” he told the ABC’s Insiders last June. “It is right we want multi-unit sites. That’s how to get costs down.”

The shadow minister was not available for an interview. In response to emailed questions, O’Brien did not address the size of a civil nuclear power bureaucracy or the cost of expanding nuclear agencies and creating new ones, but acknowledged that “a highly skilled nuclear workforce will be paramount to ensuring the success of this plan”.

In his response, O’Brien gave more detail about the nuclear program, including outlines of private and public partnerships and a proposition to include the Australian Safeguards and Non-Proliferation Office (ASNO), which looks after Australia’s international treaty obligations.

“Experience is not cheap, because you’ll have to get it from overseas ... we’ll be having to buy that in, at expense. You don’t just train someone up over a two-year period.”

“The ARPANSA legislation will be amended to allow the licensing and regulation of civilian nuclear facilities, including power stations,” the shadow minister said. “ARPANSA will have its resources increased to prepare to license the establishment projects and advice will be sought regarding the merits of regulatory consolidation of ARPANSA and ASNO.

“The independent Nuclear Energy Coordinating Authority will lead community consultation and manage a process to select experienced nuclear companies to partner with Government to deliver these projects.

“Affordable Energy Australia will be financed by the federal government through a combination of debt and equity and, through its partnership arrangements with experienced nuclear companies, will own, develop and operate the establishment projects.”

A former energy adviser to Britain’s Thatcher government says the Coalition is trivialising the bureaucratic support needed for a local nuclear power industry.

Greg Bourne, who is a former president of BP Australasia and is a councillor on the Climate Council, said the experience in the UK showed that the nuclear part of the electricity industry had to be regulated, as “no one commercially wanted it”.

He says established nuclear power countries in comparable democracies such as the United States have very large regulatory organisations rigorously covering issues such as skills, construction, safety, finance and radioactive waste.

“What you would need to do – almost certainly getting the people from overseas, building ARPANSA’s strength – it’s not a trivial act,” Bourne tells The Saturday Paper.

“They will have to build a complete set of public servants, for want of a better word, to be able to advise Department of Energy … on what can be done, what can’t be done, the pace at which it can be done and so on.”

The scale of the Coalition’s nuclear proposal, Bourne says, is obviously a far cry from Australia’s experience with its sole reactor, the 20-megawatt nuclear medical reactor at Lucas Heights in southern Sydney.

“We will have to buy experience. And buying experience is not cheap, because you’ll have to get it from overseas,” he says. “People will be coming in with different models. European models… a number of United States, Canadian models. They’ll all be coming in with different things, but we’ll be having to buy that in, at expense,” he says. “You don’t just train someone up over a two-year period.

“Lucas Heights is a very, very different thing. The people there are good. They understand what they’re doing. I do not think that [the Coalition] will be able to grab the head of the nuclear agency from Lucas Heights, and then that person will have credibility with two gigawatt-size reactors.”

The public service minister suggests that if the nuclear bureaucracy were to be added to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), not only would the department need to be “a lot larger” but there would likely be “a huge consultant bill”, over decades. “You’d be paying for all of that before anything gets happening.”

The Albanese government, meanwhile, is moving to accelerate household electrification efforts, through a deal with the Senate crossbench to support Labor’s Future Made in Australia legislation. The government aims for 82 per cent of power to be sourced from renewable energy by 2030 – a plan the Coalition has derided as “unrealistic”.

Energy Minister Chris Bowen revealed this week he used ministerial powers at the end of last year to direct the Australian Renewable Energy Agency to consider funding solar panels and home batteries. However, the basis of Labor’s transition plan, Bowen says, is private-sector funded.

“Every single dollar spent on nuclear will come from the taxpayer. So of course, that will lead to a bureaucracy. Our plan is based on private-sector investment. Theirs is based on public investment and a bureaucracy,” the minister tells The Saturday Paper.

He points to the lack of detail in the Coalition’s planning, in contrast with its demands for more detail in the lead-up to the Indigenous Voice to Parliament vote: “They campaigned against an alleged government bureaucracy in the referendum, and they’re proposing at least two new government organisations.”

The Coalition’s plan to build seven nuclear power plants to replace Australia’s ageing coal-fired power stations is backed by a contested set of costings, prepared by Frontier Economics and released late last year, amounting to roughly $300 billion spread over 50 years. The modelling suggests the Coalition plan is $263 billion cheaper than Labor’s renewables proposal, but a wide range of economists have countered that the costings lack crucial information about how the figures were calculated, and are based on a scenario of dramatically lower energy use than is realistic.

The delays in getting the reactors on line have also drawn strong criticism. The opposition insists its plan, under the best-case scenario, would begin producing electricity by 2035, but this is five years earlier than the earliest estimate by the Australian Academy of Technological Sciences and Engineering, and assembling the necessary regulation and skills is a key component of that timeline.

The Coalition’s energy spokesman says the opposition’s civil nuclear policy is well formed and ready to start.

“[T]his policy follows the most comprehensive study ever undertaken by an Opposition, learning from experts in 10 nations about their decarbonisation policies while keeping prices down, the lights on and ensuring energy security,” O’Brien said in his statement.

“Upon entering government, the Coalition will be ready to implement a detailed energy policy immediately, informed by global best practices and established relationships.”

Opposition Leader Peter Dutton has criticised what he calls Labor’s “big government” approach and “wasteful” spending that he says has exacerbated inflation in the lead-up to an election that will be heavily focused on the cost of living.

His most cited example is the 36,000 additional Average Staffing Level places in the public service funded by Labor over three budgets.

The opposition leader now has four frontbenchers whose portfolios cover the public service, two of whom are solely tasked with zeroing in on waste and efficiency: Jacinta Nampijinpa Price and James Stevens.

While Dutton isn’t explicitly referencing as its inspiration the Elon Musk-led Department of Government Efficiency in the US, he’s elevating the mission within his ranks just as the Trump administration takes over. Australia’s richest person, Gina Rinehart, has long urged the Coalition to emulate the MAGA policy agenda.

“Our argument is to bring that role, that function, into [the Department of the] Prime Minister and Cabinet as a key central agency, and then to have the authority of Prime Minister and Cabinet to run the operation of senior efficiencies achieved across every department of the Commonwealth,” the Coalition leader told reporters in Perth on Tuesday.

“And that’s something that we would take very seriously.”

Dutton says Labor’s spending on public service positions is a question of “priorities”. Speaking to reporters in his electorate of Dickson last weekend, the opposition leader said, “That’s money that we could be spending elsewhere to provide support to people during Labor’s cost-of-living crisis, or into defence or into security and into priorities for Australians otherwise.

“I just don’t think any Australian can say that their lives are simpler or better off today because of the tens of thousands of additional public servants that the prime minister’s employed in Canberra.”

The plans for cuts have been flagged for at least six months.

“The first thing we’ll do is sack those 36,000 public servants in Canberra, that’s $24 billion worth,” Nationals leader David Littleproud told commercial radio station Triple M in August.

The figure for additional public servants equates to 20 per cent of the workforce, a boost that entailed rebuilding positions lost to more expensive outsourced labour. The cost cited by the opposition is over four years.

An audit, ordered by the Albanese government soon after the 2022 election, found that the Coalition government in the 2021-22 financial year alone spent $20.8 billion on almost 54,000 contractors and external providers. The bulk of the external labour was employed in the defence, social services and agriculture portfolios.

The 36,000 figure under the Albanese government, confirmed in federal budget papers, also covers Labor’s moves to rein in Centrelink and other government call centre waiting times, as well as additional staffing to reduce chronic backlogs in claims and visa processing times.

Gallagher, who is also finance minister, accepts that efficiencies remain to be made within government. She adds that $92 billion was saved over the past three Labor budgets and mid-year updates.

“We’ve had over $4 billion saved from not using consultants as much as the former government did,” the senator says.

She says there is an ongoing effort in explaining the worth and work of the public service.

“It’s always up to us to explain what we’re doing and why we’re doing it, but I would say to Peter Dutton, go and speak to a veteran who actually is getting their pension now, who’s getting their appropriate payment. There was a 40-month wait for people to get their pension,” she told reporters last week. “What he wants to pretend is that you don’t need anyone to do these jobs. Two thirds of these jobs are in the regions. They’re in every part of Australia.”

This article was first published in the print edition of The Saturday Paper on February 1, 2025 as "Exclusive: Dutton’s nuclear plan requires ‘huge’ new bureaucracy".

https://www.thesaturdaypaper.com.au/news/politics/2025/02/01/exclusive-duttons-nuclear-plan-requires-huge-new-bureaucracy#mtr

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