Chapter 6 - The impact of Opal fuel
The roll out of Opal is
not the complete solution but there can be no solution without it.[280]
The introduction and supply of Opal
6.1
Australia
first experimented with the introduction of non-sniffable fuel in the 1990's when
Avgas, an aviation gasoline, was provided through the Commonwealth Government's
Comgas Scheme. The Scheme subsidised non-sniffable Avgas to replace regular
petrol for registered remote communities in the Northern
Territory and South Australia.
BP Australia noted that due to its higher lead content and doubts about its
suitability for motor vehicles, 'community acceptance of this fuel option had
been limited and patchy'.[281] The
Ngaanyatjarra Council and Ngaanyatjarra Health, for example stated:
While Ngaanyatjarra communities had been using Avgas as a
substitute for petrol for some years, there were some mechanical problems with
the use of this fuel in vehicles.
These problems created a disincentive for Ngaanyatjarra people,
government representatives, staff, visiting contractors and tourists to use
Avgas in their vehicles, with the resulting increased risk of sniffable fuel
being brought into the Ngaanyatjarra Lands.[282]
6.2
With a general move towards lower lead aviation fuels, it
became apparent that an unleaded Avgas was unlikely to be a suitable option for
remote communities as it was not possible to have an unleaded Avgas without
increased levels of aromatic vapours.
6.3
In response, BP Australia developed a new unleaded fuel
called Opal, which has very low levels of aromatic hydrocarbons which give the
'high' sought by petrol sniffers and is also suitable for use in unleaded
vehicles and two stroke engines.[283] Opal
was launched in February 2005.
6.4
Since its introduction, Opal has been progressively distributed
to remote Aboriginal and Torres Strait Islander communities that are registered
with the Comgas Scheme (renamed the Petrol Sniffing Prevention Program in late
2005). The Department of Health and Ageing (DoHA)
and the Department of Immigration and Multicultural and Indigenous Affairs
(DIMIA) noted that Opal reportedly has more support in Indigenous communities than Avgas because it is
unleaded and can be used in most motor vehicles and motor boats without damage
to their engines.[284] The Comgas Scheme continues to subsidise the supply of Opal so
that it costs the same to consumers as unleaded fuel.[285]
6.5
DoHA and
DIMIA commented that in response to the clear evidence of the effectiveness of
measures to substitute petrol with non-sniffable fuels, the Commonwealth significantly
increased the resources for the Scheme. In the 2005-06 Budget, an additional
$9.6 million over four years was provided. In September 2005, the Commonwealth extended
the Petrol Sniffing Prevention Program with additional funding of $9.5 million
over two years. This included $6 million for the roll out of Opal petrol to
designated Central Desert Indigenous communities and roadhouses (including
Yulara Resort, down the Stuart Highway from Henbury to Erldunda and from Kulgera
Roadhouse to Marla). This roll out will bring
the number of communities and sites provided with Opal fuel to more than 70.[286] In February 2006, the Minister for
Health and Ageing announced that Opal is now available at one site in Alice
Springs.[287]
Access to Commonwealth subsidy
6.6
The Commonwealth has imposed conditions for access to
the Petrol Sniffing Prevention Program and the Opal fuel initiative.
Communities are required to implement or plan a complementary program of
preventive/diversionary measures, in addition to being sufficiently distant from
mainstream supplies of regular unleaded petrol. DoHA
and DIMIA commented that this was consistent with the findings of the 2004
Comgas Evaluation which reported that the impact of non-sniffable fuel was
reduced if nearby towns had regular petrol supplies.[288]
6.7
The Office for Aboriginal and Torres Strait Island
Health (OATSIH) noted that no communities which had so far applied to have
access to Opal had been refused, however it stated that:
...there is the possibility that a judgment will be made that Opal
as a substitution strategy is not the most effective thing to address the
problem in the community. For example, if they were very close to lots of
sources of fuel and it was an intermittent problem during school holidays, you
might be looking at a diversionary school holiday program rather than Opal
being the answer. So there is the possibility that the appropriate response
will be different. But at this stage all the communities that have approached
the Australian government and all the communities that we have directly
approached, particularly in Central Australia – we are taking a slightly more
proactive targeting of communities in that region – we have managed to reach
agreement with about a mix of community based interventions that we think, in
parallel with Opal, will have an impact on the number of sniffers.[289]
6.8
Under the Eight Point Regional Strategy for Central
Australia Opal is being rolled out to communities in the designated Central
Desert region.[290] OATSIH commented that under the
Plan it was now actively seeking communities' involvement in the Opal roll out:
...in Central Australia, in the designated zone for the
eight-point plan, we are proactively contacting those communities that are not
already in receipt of Opal – even communities that do not have a petrol bowser
but who are part of the region and have fuel in drums or in jerry cans – to
say: 'This is what is happening in the region; the communities around you have
chosen not to have regular unleaded petrol within their communities and to only
use diesel or Opal. Do you want to come on board with this as well?' So we are
deliberately targeting those communities...So we are shifting towards a far more
proactive approach as the government interest and investment in petrol sniffing
and subsidisation of Opal have increased.[291]
The Queensland
Government Fuel Subsidy
6.9
As part
of its Fuel Subsidy Scheme, the Queensland Government subsidies retailers by 8.4 cents per litre for the sale of motor-spirit
and diesel where they are of the type ordinarily sold by a retailer. The
majority of the subsidy is passed on to consumers. Because Opal has limited
distribution and is not the type of fuel ordinarily sold by a retailer, it is
not considered fuel for the purposes of the Fuel Subsidy Act 1997.[292] Without
the Queensland
fuel subsidy Opal would retail for more than regular unleaded fuel within Queensland,
reducing its acceptability to communities as an alternative.
6.10
On 15
November 2005, the
Queensland Government commenced subsidisation of Opal fuel for a trial period
of 15 months to assist with the introduction of Opal for those communities receiving
the Comgas subsidy. Under this trial Opal fuel is priced at the same cost to consumers
as unleaded petrol. An administrative arrangement under the Queensland Fuel
Subsidy Scheme is allowing the trial to take place as a permanent arrangement
will require amendment of the Fuel Subsidy Act.
If the trial proves successful in reducing petrol sniffing, a
recommendation may be made to the Government if to enact the necessary
legislative amendments.[293]
Production and suitability of Opal as a fuel
6.11
Opal fuel is a 91 octane fuel but it is not suitable
for high performance cars. It is an unleaded fuel suitable for all applications
requiring regular unleaded petrol including two and four stroke engines such as
outboards, passenger vehicles, petrol 4WDs and vans. Opal is not suitable for
aviation use. BP Australia has stated that Opal provides the equivalent
performance as unleaded petrol and may be safely mixed with regular unleaded
petrol when topping up. BP has also stated that fuel economy may be reduced.
However, this is by less than 0.3 litres per 100km.[294]
6.12
Opal is produced at the BP refinery at Kwinana in Western
Australia. BP commented that Opal is very expensive
to produce as it requires segregation due to its aromatic properties and this adds
to the cost. The additional production cost of 27 cents per litre is
subsidised by the Commonwealth. There is also a subsidy for transport costs.
6.13
BP commented that at the end of 2004 there were 32
communities using one million litres of Opal per year. The commitments the
Commonwealth has made with the regional roll out require 11 million litres.[295] With the current infrastructure,
Kwinana can produce 20 million litres. BP noted that:
...anything above and beyond that would require a total review,
and what the cost will be depends on the volumes we are looking at. Whether it
requires additional infrastructure at the refinery we just do not know.[296]
6.14
BP Australia has announced that the specifications for
producing Opal are available to any other refinery.[297]
6.15
Opal is shipped to the BP Largs North Terminal in South
Australia and is then available directly to
distributors for trucking to the Northern Territory.
Opal is distributed by Caltex, Mobil and BP distributors as well as some small independent
organisations.[298]
6.16
Ausfuel, the main distributor of fuel to remote parts
of Australia, stated
that it transports Opal by truck from Port Augusta. Significant infrastructure has
been installed to allow Opal fuel to be distributed, including a fuel farm in Darwin
which allows intermediate bulk containers to ship 1300 litres of fuel to remote
communities by barge. Ausfuel plans to develop an Alice Springs
fuel farm and convert the petrol station at Alice
Springs Airport to
Opal to refuel rental cars.[299]
6.17
Ausfuel commented that there is no difference in the
price of transporting Opal or any other fuel. However, to supply Opal new fuel
farms will need to be built:
Where there is a bit of a price challenge for us is that we now
have to build fuel farms where before we did not have to. So we have had to
create a fuel farm or a fuel depot in Darwin
and we are in the process of doing the same in Alice.
We bring the fuel up in road trains and we need to put it in somewhere and then
pull it out again to deliver it. We cannot deliver straight to the communities
or to the service stations.[300]
Possible alteration of Opal properties by adding other substances
6.18
When supply of a preferred volatile substance is
restricted desperate addicts are known to seek alternatives such as glue and
paint. The Committee heard evidence that sniffers were trying to alter the
properties of Opal by sniffing Opal from polyurethane cups or by adding Windex
to Opal in an attempt to generate vapours that will provide a 'high'.[301]
6.19
The Committee sought the advice of BP Australia which
replied that there are volatile compounds in Opal that are there 'to allow the
product to be used as a fuel although we understand that those compounds will
only give you a headache'. Tests were conducted by pouring Opal over
polystyrene cups and it was concluded that no chemical reaction occurred to the
cup or Opal itself. Adding window cleaning products or motor oil will also not
change the properties of Opal but such products can be sniffed on their own. BP
Australia concluded:
Where our attention is drawn to stories of this nature relating
to other substances we are prepared to consider further tests on those
substances, and we are happy to keep the matter under review should further
evidence become available.[302]
A comprehensive roll out of Opal
6.20
Many submissions called for a comprehensive roll out of
Opal including supply to major towns such as Alice Springs
and Tennant Creek. Witnesses pointed to the success of non-sniffable fuel in
reducing petrol sniffing, the danger of providing sources of sniffable fuel if there
was not a comprehensive roll out and the cost effectiveness of reducing
sniffing through the supply of Opal.
6.21
Experience to date has shown a reduction of petrol
sniffing when non-sniffable fuel has been introduced, with the Tangentyere
Council commenting:
Opal by itself will reduce sniffing, especially amongst the
younger users who can't afford the black market prices. In conjunction with
some youth activities, it will reduce the sniffing
down to the chronic addicts, who can then be targeted for casework/treatment.[303]
6.22
Mr Donovan
Walmbeng commented that following the
introduction of Opal in Aurukun in December 2005 the petrol sniffing problem is
'manageable'. Sniffers have nearly disappeared and while it is 'too early to
say if this situation will continue. The signs, however, are good.'[304]
6.23
CAYLUS also emphasised the positive impact of Opal on reducing
petrol sniffing among very young children and in nearby communities:
In CAYLUS experience there has been a marked decrease in
availability of petrol to very young kids as they have less access to money and
can not participate as readily in the black market.[305]
An interesting effect of Nyirripi going onto Opal was the
reduction of the number of petrol sniffers in the next community to the West –
Kintore – from 35 to 25. This demonstrates the regional advantages of rolling Opal
out.[306]
6.24
The
Northern Territory Government stated that it was a strong supporter of Opal
as a supply reduction measure:
I do not think the supply reduction capacity of having Opal can
be underestimated. What it actually does is give communities a break and it
offers them a point in time at which they are not dealing with the crisis
response to or the chronic effects of petrol. They get a window of opportunity
in which to look at a range of other strategies. That is a very important
strategy.[307]
6.25
The Northern Territory Government went on to
comment that Opal is also very important 'because of some of the provisions in
the volatile substance abuse legislation which allow for community planning
around the sale and supply at a local level'.[308] The Northern Territory Government stated
that Opal should be 'rolled out across all regions prone to petrol sniffing as
soon as possible as a matter of course'.[309]
6.26
Witnesses pointed to the
evaluation of the Comgas Scheme which indicated that the scheme was effective
in reducing petrol sniffing but that this decreased the closer communities were
to sniffable fuel sources.[310] The Evaluation
found that Avgas was 'safe, effective and popular in reducing petrol
sniffing'.[311]
6.27
The Evaluation recommended that the scheme should be
continued and made available to any community wishing to participate and also recommended
the need for a regional structure to ensure that the scheme's goals are not
undermined by access to sniffable fuels in close communities. The Evaluation
pointed to the Ngaanyatjarra region, which had a very strong regional Council and
which decided to implement the Comgas scheme. At the time of the Evaluation,
there was no regular supply of unleaded petrol in the entire region, with the
result that there was a dramatic reduction in the level of petrol sniffing.[312]
6.28
Those
supporting a comprehensive roll out of Opal reinforced the view that when Opal
is introduced only to some communities, chronic sniffers shift location to
communities that still have sniffable petrol or to Town Camps.[313]
6.29
The Tangentyere
Council argued that sniffers would
move from remote communities into Town Camps if Alice Springs is not included in a regional roll out.[314] Ngaanyatjarra Pitjantjatjara
Yankunytjatjara Women's Council expressed the same concern:
NPYWC welcomes the proposed extended Opal subsidy area and hopes
that the supply will occur very soon. Members are however convinced that the
coverage area needs to include both Alice Springs and a
wider region...There is anecdotal evidence of the increased movement of sniffers
into Alice Springs, as well as the presence of sniffers
normally resident in the town. The limited provision of Opal fuel may be of
some assistance to those intending to enter remote communities. There would
appear to be nothing however to suggest that it will discourage sniffers,
particularly of the chronic or habitual variety, seeking out the main source of
regular unleaded fuel in the region.[315]
6.30
Alice Springs Town Council also reiterated its request
for Opal to be rolled out throughout the entire region including Alice
Springs:
We are particularly concerned about the impact of having
sniffable fuel available in the regional centre. There is an artificial
perception that Alice Springs stands alone. In reality,
it does not. The mobility of people between the bush and this town is very
obvious, and there is data to back up the fact that people move between the
bush and Alice Springs very regularly. In many
instances, the population is one and the same – certainly when you are talking
about extended families and problems for families. We certainly are of the
belief that, unless Opal fuel is more broadly rolled out, it may not succeed in
achieving the desired outcomes.[316]
6.31
The Town Council indicated that there would be a very
positive community response to the substitution of Opal for sniffable fuel:
There is a consciousness in Alice Springs
that we can be either part of the problem or part of the solution. I am 100 per
cent sure that most people would prefer to be part of the latter and would have
no problem with converting to Opal fuel if their vehicles permit that. The
other fuel, as I say, is not an issue for the community.[317]
6.32
Access
to black market sniffable fuel was seen as a real danger to the success of
programs in communities.[318] The
Central Australian District Medical Officers commented that the 'piecemeal'
provision of non-sniffable fuel to select communities and limited supply in Alice Springs was grossly inadequate and lead to an
illicit 'sly trade' in sniffable fuel products.[319]
6.33
Arguments that the need for premium fuel
undermined a comprehensive roll out were addressed by the Alice Springs Town
Council which reported that solutions are available:
...to my knowledge there has already been at
least one roadhouse that has come up with the solution of having the premium
fuel locked away, and access for cars needing that is formal, structured and
monitored.[320]
6.34
Witnesses pointed to the cost effectiveness of a
comprehensive roll out of Opal. The Northern Territory Government noted that expenditure
on the price parity subsidy was a fraction of the revenue raised by the Commonwealth
Government from the fuel excise on the same fuel:
While the costs are significant they remain a tiny fraction of
the $12 billion the Commonwealth receives from fuel excises. It should be noted
that the excise revenues received by the Commonwealth from the sale of Opal
remain well beyond the subsidies provided.[321]
Access Economics Opal Cost Benefit
Analysis
6.35
The cost effectiveness of reducing petrol sniffing
through a supported comprehensive roll out of Opal fuel was examined by Access
Economics. The study, commissioned on behalf of the Opal Alliance[322], investigated the costs and benefits
associated with rolling out Opal across a large region of Central
Australia including from Tennant Creek in the Northern
Territory, to eastern and northern areas of Western
Australia and down to the north of South
Australia.
6.36
The cost benefit analysis concluded that the estimated cost
of rolling out the scheme would be $26.6 million, which comprised the cost of
the subsidy and the cost of a package of strategies to address petrol sniffing.
The base case for petrol sniffing benefit (which includes the value of a
healthy life) was calculated at $53.7 million per annum, therefore resulting in
a net gain of $27.1 million.[323] Access
Economics concluded that if the value of a healthy life gained is excluded and
only financial benefits are considered, the results of the analysis produce a
net loss of $1.5 million, that is the cost to the Commonwealth, State and Territory
Governments of rolling out the scheme the designed area equated to $1.5 million
per annum.[324]
6.37
Overall, the study concluded that significant savings
could be achieved, whilst also reducing the burden on the health system, crime
and justice system, and the need for long-term care and rehabilitation
services. Benefits to communities that would flow from a reduction in petrol
sniffing include 'a more stable youth population, socio-economic benefits,
reductions in other addictions (eg, alcohol, marijuana) and therefore better
health, and improved general social, family and community cohesion'.[325] Such benefits would undoubtedly
reap substantial rewards for communities, and as reported in the study:
If the value of the healthy life gained is taken into account,
the benefits exceed the costs in all cases.[326]
A strategic limitation of supply
6.38
Ngaanyatjarra Council/Ngaanyatjarra Health
Service welcomed the introduction of Opal fuel to the Ngaanyatjarra Lands but questioned
other views on the supply of Opal to Alice Springs. The
Council commented that the subsidisation of a limited supply of Opal fuel in Alice
Springs will not be effective in reducing petrol sniffing. Even halving
the supply of sniffable fuel in Alice Springs 'there
will still be more than enough sniffable fuel available in Alice
Springs to access and use'. The Council stated that 'in order to
stamp out the practice of petrol sniffing in all areas it would be necessary to
replace all fuel in Australia with
Opal fuel or some other fuel substitute'. However it acknowledged that this
would be an unrealistic and costly proposal which would not address the
underlying causes of substance abuse and concluded:
In our view, the cost
of subsidising the universal
supply of Opal fuel would
be money better spent on ensuring secure support of existing supervised
community service and youth programs and projects designed to address social
dysfunction and other issues that contribute to the practice of petrol sniffing
and other forms of drug misuse.[327]
6.39
Ngaanyatjarra
Council provided the Committee with an alternative proposal for a strategic
limitation of supply which it considered would be the most effective and cost
efficient way of limiting the supply of sniffable fuel to the Ngaanyatjarra
Communities and other remote communities. This proposal involved the supply of
Opal to 'last fuel stops':
...the best way to keep
sniffable fuel out of remote communities, including Ngaanyatjarra Communities,
is to look at those population centres that act as 'last fuel stops' before
entry into Ngaanyatjarra Communities, and seek to ensure that only Opal fuel is available in those locations. In the case of the
Ngaanyatjarra Communities, this would mean that only Opal fuel would be available in centres such as Laverton, Leonora,
Yulara, Curtin Springs, Mt Ebenezer, Erldunda, Marla, Coober Pedy and
other regional centres where people usually need to 'fuel up' before driving
onto or through the Ngaanyatjarra Lands.[328]
6.40
The
Council concluded:
In our view, the
subsidisation of Opal fuel in these centres, and the supply of Opal fuel in
these centres to the exclusion of
sniffable fuel, would be the most effective way of reducing the supply of
sniffable fuel to remote communities.[329]
The Commonwealth's approach
6.41
DoHA and
DIMIA noted that from a base of $1 million funding provided in 2004-05, the
Commonwealth provided increased funding of $9.6 million in the 2005-06 Budget
and announced a further $6 million for the roll out of Opal in September 2005.
6.42
DoHA and
DIMIA acknowledged that there is
mounting pressure for a wider roll out of non-sniffable fuel.[330] The Departments stated that the
Commonwealth's view was that a regional approach is needed to address petrol
sniffing:
The Australian Government is of the view that a regional
approach is needed to address petrol sniffing because its occurrence is
variable within and between communities and consequently specific responses to
it will need to be localised. However,
given the potential for petrol sniffers to re-locate to other communities
within a region in order to locate petrol, a regional approach which is able to
be modified and applied on a community-by-community basis is believed to be the
most appropriate response.[331]
6.43
DoHA and
DIMIA also noted that while it is feasible to provide regional coverage in
remote areas, it is far less practical within large townships such as Alice
Springs. It commented that 'it is simply not possible to
completely eradicate sniffable fuel from large regional markets'.[332] Alice Springs
has about ten petrol stations, each providing not only unleaded fuel but other
sources of sniffable fuel such as premium unleaded fuel. Opal is available at
one outlet for both locals and tourists travelling into the Central
Desert region. However, Opal is not
currently available as a premium fuel and there are a significant number of
vehicles, both driving in and through Alice
Springs, that require premium fuel. It was stated that:
We are in constant discussions with the industry about what
other advances might be made to be able to provide a fuel substitute for
premium fuel, but a critical issue at the moment is being able to provide an
effective substitute when there is such significant demand for a product for
which there is no substitute. At this stage, one of the most significant
issues, from our point of view, is being able to address those questions about
demand from larger areas.[333]
6.44
In addition, OATSIH stated that while there has been
success within isolated communities:
...we need to do some further consideration as to whether those
measures will be equally effective in a very broad, cosmopolitan area where
there is significant traffic – not only people who live there all year but many
millions of people who pass through. So, for a range of reasons, we still need
to consider the issue of large townships such as Alice Springs,
the appropriateness of fuel substitution and whether it will work.[334]
6.45
The Office of Indigenous Policy Coordination (OIPC)
also questioned whether a roll out of Opal to Alice Springs
would solve the problem of petrol sniffing:
People who are advocating a mass roll-out of Opal into townships
like Alice Springs are making an assumption that petrol
is the problem. Petrol sniffing is caused by many factors and, unless those
factors are addressed, the replacement of petrol at retail outlets is not the
solution to the problem. I can evidence situations of communities in Western
Australia...[petrol sniffing was solved by tackling the
root causes of the problem—community dysfunction, the breakdown of social norms
et cetera. So there are many aspects to this problem that have to be taken into
account. To suggest that a simple roll-out of petrol into a city like Alice
Springs is going to solve the problem is wrong, unless they are
all dealt with and given equal weight.[335]
6.46
OATSIH also commented on the roll out of Opal to
roadhouses. Within the Central Desert
designated area about half the roadhouses are selling Opal but the Commonwealth
has not provided funding for roadhouses outside of the Central
Desert.[336] OIPC stated that 'the estimate was
that we could get up to 65 communities outside of the Central Australian region
on Opal, depending on the communities and how much fuel they use. At this stage
the demand has been from reasonably isolated communities'. However, it would
look at applications from a roadhouse owner and a community in partnership:
Up until now we have responded to individual Aboriginal
communities seeking to replace a source of fuel. If a small number of
communities who have done so have one roadhouse in their midst, it would
certainly be a very sensible consideration for the communities to approach us
to look at that. And we would certainly look at that sympathetically. We do not
want to pretend that we have authority to undertake regional roll-outs
everywhere, but we certainly try, in conjunction with affected communities, to
look at sources of fuel. It is part of the assessment process that we undertake
with them when an application is received.[337]
6.47
OIPC and OATSIH made two additional points in relation to
the Commonwealth's roll out of Opal. First, OIPC noted that the Northern
Territory Coroner, in reporting on deaths in the Mutitjulu community, found
that Opal is a necessary, but not a sufficient measure. OIPC stated that
the Coroner 'did not call for a universal regional roll-out of Opal. He
emphasised the importance of supply reduction along with a lot of other factors
such as improving good governance in communities so that they can make informed
choices.'[338]
6.48
Secondly, OATSIH reiterated that one of the goals of
the Eight Point Plan is to evaluate the effectiveness of a regional and
comprehensive response to petrol sniffing to determine whether and how it might
be usefully expanded to other regions with similar issues. It stated that:
...until now it was a demand driven strategy, largely around Opal.
The identification of a designated region was to see whether in cooperation
with jurisdictions we can undertake a comprehensive multi-government approach
within a geographic area to evaluate that and see what learning comes out of
the evaluation.[339]
OIPC added that it is consulting with the Western Australian
Government about a further priority area and it has agreed on two priority areas
in the Northern Territory and commented that the relevant results of the trial
will flow elsewhere in due course.[340]
Other issues for a successful roll
out
6.49
Successful introduction of Opal into communities
requires that communities are supported during, and supportive of, the
introduction of Opal. They need to be provided with appropriate information
such as what are suitable applications for Opal fuel, and that it is yellow in
colour. If sniffers are seen sniffing petrol and the petrol is purple or red
then the community will know that it is not Opal that is being sniffed. BP
Australia has noted the need for a communication campaign:
BP's experience with AVGAS (COMGAS) and early concerns over Opal
as a viable option, suggests that a crucial element in any fuel roll out needs
to include a culturally appropriate communication campaign that conveys how the
fuel meets both vehicle and public health concerns.[341]
6.50
Securing, protecting or removing other sources of
sniffable fuel in an area is necessary to prevent break-ins and vandalism and
to prevent undermining the benefits of introducing Opal. DoHA
and DIMIA commended that there was a critical need to secure transport and storage sites at airstrips, as well as any
aircraft, and that the roll out of Opal in the designated region would seek to ensure that other sources of sniffable
fuel in the area are adequately protected or removed.[342]
6.51
BP Australia, in conjunction with communities, has
produced reflective Opal stickers that are able to be attached to cars or
motorcycles entering remote communities. This alerts would-be sniffers looking
to steal petrol that the vehicle only contains Opal and it is of no use to them.[343] At the time of the hearings, these stickers
were not being distributed with the petrol but have the potential to be so.[344] BP Australia reported that they were
intending to distribute the stickers:
As supplies of standard unleaded fuel dry up in Opal supplied
communities, BP has been alerted to an increasing level of desperation and
property break-ins as people attempt to find any remaining fuel to sniff. In
response, BP is about to distribute to all remote communities specially
designed reflective Opal stickers and signage to convey that any vehicles and
premises with this signage in place does not contain sniffable fuel.[345]
6.52
BP Australia commended one innovative way of
reducing the incidence of sniffable fuel entering an Opal community as seen at
Maningrida in Arnhem Land. The community requires that
contractors coming into the community do not bring in unleaded petrol. If they
do, their contract can be terminated.[346]
Conclusions
6.53
The Committee considers that the supply of Opal is a
fundamental plank in the strategy to reduce petrol sniffing. The supply of Opal
fuel to communities has been shown to reduce the incidence of petrol sniffing
particularly among the younger children. However, this effectiveness is
undermined if there are supplies of sniffable fuel available in nearby centres
or if vehicles using other fuel enter Opal communities. Experience has shown
that chronic sniffers tend to move from Opal communities into other communities
and Town Camps where they can continue to access sniffable petrol and are not averse
to breaking into cars, depots and bowsers to access fuel.
6.54
These issues were at the centre of the oft-repeated recommendation
for a comprehensive roll out of Opal fuel to ensure maximum effectiveness in
combating petrol sniffing. The Committee considers that the cost of the roll
out of Opal would be offset by savings in health care for those disabled
through sniffing as well as a reduction in the cost of support services to
communities that are dealing with petrol sniffing. However, the Committee
recognises that a comprehensive roll out may be limited by the availability of
supplies of Opal. Currently, BP Kwinana
can produce 20 million litres of Opal but any additional production would
require a review of the facility and its capacity to produce extra fuel coupled
with an acceptance by Government to subsidise a greater production capacity. The
Committee also notes that BP Australia has stated that it will make available
the production details for Opal to other refineries.
6.55
The Committee commends the approach taken under the
Eight Point Plan and considers that this initiative will have a significant
impact on reducing the incidence of petrol sniffing and curtailing any drift
towards other substance abuse. However, the Committee considers that, while
there are already plans to identify new priority areas in Western
Australia and the Northern
Territory, it will take some time for a wider
application of the Eight Point Plan.
6.56
It is therefore imperative that the application of the Petrol
Sniffing Prevention Program outside the designated area is improved and that a
more strategic approach is implemented. At the present time Opal is supplied
under the Petrol Sniffing Prevention Program only in response to a community's request.
There is also no supply of Opal to roadhouses and townships outside the
designated area even though these may be critically placed as last fuel stops
before entering Opal communities. The Committee considers that this is a lost
opportunity to improve the effectiveness of the Petrol Sniffing Prevention
Program and the identification and roll out of Opal to these roadhouses and
townships would be an efficient means of reducing black market and inadvertent
supply of sniffable fuel.
6.57
The Committee also considers that there is an urgent
need to identify means of securing premium and other fuels in large centres,
townships, roadhouses and airstrips. This would allow the sale of these fuels
where necessary in a monitored and controlled way that reduces the likelihood
of the fuel ending up being used for sniffing.
Recommendation 18
6.58
That the Commonwealth, State and Territory Governments
establish priorities for extending the roll out of Opal fuel to the current
production capacity of 20 million litres. The strategy should include:
- the identification of critical roadhouses and
townships in close proximity to Opal communities;
- promotion of the Petrol Sniffing Prevention
Program to roadhouse and townships; and
- identifying and combating barriers that prevent
a complete roll out of Opal throughout the Central Australian region.
Recommendation 19
6.59
That the Commonwealth and Queensland
Governments agree on a complementary subsidy approach that ensures Opal can
retail in Queensland for the same
price as regular unleaded.
Recommendation 20
6.60
That Commonwealth and State and Territory Governments
develop systems to secure premium and other sniffable fuels at key roadhouses and
townships which can then be applied in larger centres such as Alice
Springs.
Recommendation 21
6.61
That the Commonwealth:
- undertake a
study with BP Australia to determine the potential to increase the current
20 million litres production capacity at Kwinana; and
- approach other refineries to use their existing
production capacity to produce Opal.
Recommendation 22
6.62
That Commonwealth Government discuss with BP Australia what
role they may have to assist the distribution of information on Opal and the
distribution of Opal identification stickers.
Recommendation 23
6.63
That the Commonwealth and State and Territory Governments
examine the procedure at Maningrida whereby contracts are used to prevent
contractors bringing regular unleaded
petrol into their communities and facilitate the adaptation and spread of this technique
to other communities.
Senator Claire Moore
Chair
June 2006
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