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The department in charge of the Climate Change Authority (CCA) has told senate estimates it is seeking legal advice over potential conflicts of interest on the authority's board.
Key points:
- Minister Chris Bowen has been asked to review the integrity of the authority
- The Department of Climate Change says it's seeking legal advice
- The Climate Change Authority members determine how conflicts of interest are managed
It comes after think tank the Australia Institute wrote a letter to Minister for Climate Change and Energy Chris Bowen this week, urging him to review potential conflicts of interest on the CCA board.
The independent body is responsible for providing expert advice and recommendations to the federal government on climate policy.
Chair of the CCA Grant King holds a number of other positions that appear to overlap with the work of the authority, including chairing Australia's largest offset developer GreenCollar and a renewable energy company.
Brad Archer, chief executive of the Climate Change Authority, fronted estimates on Tuesday and was asked by Green Senator Larissa waters if he had also sought legal advice about current board members' potential conflicts of interest.
"No, I don't think we have. We have certainly consulted with the department in the form of seeking probity advice for how we manage conflicts of interest," he said.
"Where there is the possibility that there's a conflict of interest on a matter before the authority, members will determine whether they consider that to be the case and determine how that is to be managed."
Overlapping interests
The Australia Institute letter also raised concerns about other CCA board members it said had close links to the carbon offset, fossil fuel industries or climate change investment.
It made no allegations of impropriety by any individual but said the recent scandal involving consulting firm PriceWaterhouseCoopers (PWC) highlighted concerns with potential conflicts of interest.
"Australia would benefit from an inquiry that goes beyond consultancies to the management and assurance of integrity in public governance," Polly Hemming, Director of the Climate & Energy Program at the Australia Institute said.
"It’s quite extraordinary that the CCA doesn’t appear to have sought formal advice that appointments to the board comply with legislation at any time over the past two years.
"It’s even more extraordinary when you consider that the board appears to be largely in control of setting the research agenda of the CCA."
Ms Hemming said she believed there were serious integrity questions that needed to be answered.
"In one instance Grant King appears to have recused himself from duties as the CCA Chair due to potential conflicts. However, again, it’s not clear whether this was done in accordance with the legislation," she said.
"The CCA has a critical role in shaping Australia’s climate policy, yet there is no indication that its advice is robust and independent or that its governance is fit for purpose."
Mr Archer told estimates the authority will be publishing its charter in the coming weeks.
"We have a document within the authority which we refer to as the authority charter, which describes in general terms how the members go about conducting the business of the authority," he told senate estimates.
"We are mindful of an increased level of interest in the activity of the authority and also interest in continuous improvement."
Legal advice sought
Jo Evans deputy secretary in the Department of Climate Change, Energy, Environment and Water (DCCEEW) told senate estimates on Monday they department had received a copy of the letter from the Australia Institute.
"There are some questions raised in there that go to an interpretation of the act," she said.
"We will get some advice on the accuracy of those views and then take a decision about how to advise the minister."
Secretary of the Department David Fredericks told estimates the letter was fundamentally about the interpretation of the relevant legislation.
"We'll end up getting legal advice on that, I suspect to make sure that we can give the best possible legal advice," he said.
"Because there's a legally structured argument."