Chapter 1


Chapter 1

Low Aromatic Fuel Bill 2012

The inquiry

1.1        On 10 May 2012 the Senate referred the Low Aromatic Fuel Bill 2012 (the bill) for inquiry and report by 21 September 2012.[1] On 21 September the committee tabled an interim report, indicating it would report on 26 September 2012.

1.2        The committee invited interested individuals and organisations to make submissions. Twenty submissions were received and are listed in Appendix 1. The committee held public hearings in Alice Springs and Canberra to take evidence in relation to the bill, details of which are shown at Appendix 2.

1.3        The committee would like to thank all those who made submissions, and all the witnesses and departmental representatives that took part in the hearings. The committee is particularly grateful to people who attended from the communities of Alpurrurulam (Lake Nash), Papunya, Titjikala, Tjukurla, and Yuendumu.

1.4        References to Hansard in this report are to the final Hansard for the hearings of 24 and 25 July 2012 in Alice Springs. References to Hansard for the hearing of 16 August 2012 in Canberra are to the Proof Hansard. There may be some difference in page numbers between the Proof and the Final Hansard for the hearing on 16 August 2012.

Purpose of the bill

1.5        The bill, introduced as a private senator's bill by Senator Siewert, seeks to reduce petrol sniffing in defined areas that would be declared by the minister following a consultation process set out by the bill. In those areas, aromatic fuel could be regulated by:

  • Prohibiting the supply of regular unleaded petrol (RULP);
  • Promoting and monitoring the use of low aromatic fuel (LAF); and / or
  • Regulating the supply and storage of other fuels – in particular premium unleaded petrol (PULP).[2]

Previous inquiries

1.6        The Senate Standing Committee on Community Affairs has completed two previous inquiries into the harmful effects of petrol sniffing which included consideration of the impact of providing low aromatic or non-sniffable fuel in areas where there was petrol sniffing. These reports were presented to the Senate in 2006, Beyond petrol sniffing: renewing hope for Indigenous communities and in 2009, Grasping the opportunity of Opal[3]: Assessing the impact of the Petrol Sniffing Strategy.

1.7        In 2006 the committee found that sniffing of petrol has occurred in northern Australia since the early 1950s. Between 1981 and 1991, 60 Aboriginal men and three women died from petrol sniffing.[4]

1.8        From the mid-1980s a number of inquiries into petrol sniffing and substance abuse have been undertaken. The Senate Select Committee on Volatile Substance Fumes reported in December 1985. This committee found that at the time, about 2000 children were sniffing petrol in Central Australia and the Northern Territory, or about 10 per cent of all Aboriginal children living in those areas.[5]

1.9        At the time, measures aimed at stopping petrol sniffing ranged from preventing petrol being obtained and misused, such as locking petrol bowsers, to punishment of abusers and funding of specific programs for petrol sniffers. The Select Committee stated that nowhere did it find complete success in eradicating sniffing although many attempts had been made by communities and by individuals. It did, however, identify the elements that appeared to be necessary for success.[6]

1.10      The Select Committee concluded that the act of petrol sniffing should not be made a criminal offence and recommended that no legislative action be taken to create such an offence. However it did recommend that state and territory governments implement enabling legislation to control the supply of petrol to minors who intend to sniff it and to criminalise the action by non-minors of inciting minors to sniff petrol.[7]

Previous policies on low aromatic fuel

1.11      The first example of supply and use of low aromatic fuel occurred in the 1990s when Avgas, an aviation gasoline, was provided through the Australian government's Comgas Scheme. The scheme subsidised low aromatic Avgas to replace regular petrol for registered remote communities in the Northern Territory and South Australia. However due to its high lead content and issues with its suitability in motor vehicles, the program was not successful.[8]

1.12      In response to the demand for a low aromatic fuel that did not give the 'high' associated with other fuels, BP Australia developed an unleaded fuel called Opal, which has very low levels of aromatic hydrocarbons. These hydrocarbons are the chemical that gives the 'high' sought by petrol sniffers. Opal fuel was launched in February 2005.

1.13      In 2005 the Commonwealth scheme to provide Avgas in remote communities was renamed and developed as the Petrol Sniffing Prevention Program. However, the Comgas scheme continued to be used to subsidise the supply of Opal so that the cost to consumers was the same as regular unleaded petrol.[9]

1.14      In response to increasing demand for the supply of Opal fuel, the 2005-06 Commonwealth Budget provided an additional $9.6 million over four years, and 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 fuel to designated Central Desert Indigenous communities and roadhouses. This roll out brought the number of communities and sites provided with Opal fuel to more than 70.[10] In February 2006 one site in Alice Springs commenced supply, and by March 2007, all sites in Alice Springs were stocking Opal.[11]

1.15      In 2005, the Australian government announced a whole-of-government Petrol Sniffing Strategy (PSS). The PSS was to be implemented through an Eight Point Plan.[12]

1.16      The eight points of the PSS were (and remain):

  • consistent legislation;
  • appropriate levels of policing;
  • further rollout of low aromatic fuel;
  • alternative activities for young people;
  • treatment and respite facilities;
  • communication and education strategies;
  • strengthening and supporting communities; and
  • evaluation.[13]

1.17      At the time of the committee’s 2009 report, the committee found that the PSS Eight Point Plan had been partially implemented. The PSS remains jointly administered by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), the Department of Health and Ageing (DoHA), the Department of Education, Employment and Workplace Relations (DEEWR) and the Attorney-General's Department (AGD). The Central Australian Petrol Sniffing Unit (CAPSSU) is the multi-agency unit responsible for the local implementation of the strategy based in Alice Springs.[14]

Structure of this report

1.18      Chapter 2 of this report covers developments since the last inquiry including some of the gaps in the current approach. Chapter 3 highlights the success of Opal. Chapter 4 details the legislative options for controlling the supply of fuel and other volatile substances. Chapter 5 investigates technical issues including production capacity, costs, subsidies, storage and distribution of low aromatic fuel, as well as issues around premium fuels. Chapter 6 outlines complementary measures to address petrol sniffing.

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