Minority Report by the Australian Democrats

Environment Protection and Biodiversity Conservation Bill 1998 & Environmental Reform (Consequential Provisions) Bill 1998
Table of Contents

Minority Report by the Australian Democrats

The Australian Democrats wish to thank the many individuals and organisations who contributed their time and effort to draft submissions or to appear as witnesses to assist the Committee in its inquiry into the Environment Protection and Biodiversity Conservation Bill 1998.

The Bill is complex and deals with a very wide range of issues. The submissions and evidence presented to the Committee raised a large number of concerns, as well as suggestions to improve the legislation. In the short time that was available to respond to the majority report, it was not possible to address all of those concerns and suggestions. Instead, this minority report focuses on major deficiencies of the Bill and the key concern expressed by the community.

In short the Australian Democrats accept that there are significant problems with existing environment legislation. The Commonwealth laws for protecting our environment are convoluted and action is often dependent on political will. We believe that the Environment Protection and Biodiversity Conservation Bill before the Senate contains a number of remedies to areas of current concerns. However there are drawbacks in the legislation which will again, allow good environmental decision making to be easily forfeited to political whim.

The Australian Democrats believe this bill should not be considered by the Senate until the Government puts up and/or supports amendments which make the legislation, in its entirety, significantly better than the existing legislation. We believe that with goodwill on the part of the Government this is achievable and look forward to amendments which address our concerns.

Overview

A review of Australia's environmental legislation was well overdue. Since much of the then well-meaning legislation of the 70s and 80s was enacted, there have been considerable developments in our understanding of ecological processes, in our expectations of government, and in our understanding of the extent of the Commonwealth's environment powers. The community has a greater desire to deal with the environment and the economy in an integrated manner. Ecologically sustainable development (ESD) is a concept that should ensure that environmental considerations are taken into account in all decision making, economic and social. However, it is often no more than rhetoric in the objects of bills, and is not seen in the actions and outcomes of decisions by regulators.

It is unfortunate that the majority report of the Committee has not responded to much of the evidence on the many concerns that were placed before it.

While the Australian Democrats have no significant objections to specific recommendations in the majority report, we believe they fall short in addressing the main concerns of the Bill.

We have significant concerns with the proposed use of bilateral agreements to hand over Commonwealth assessment and approval responsibilities. While the Australian Democrats have no conceptual difficulties with the States and Territories having a role in assessment processes, this must only occur subject to nationally consistent, best practice environment processes and other safeguards. At this stage, these safeguards and constraints are missing, and there is potential for the Commonwealth to abrogate decision making, using arbitrary, rather than prescriptive, mechanisms.

Overall, we have three major fundamental objections to the Bill. These are:

The Bill does contain a number of improvements on the current legislation. In particular, the Australian Democrats generally welcome the transfer of powers relating to environmental assessments and approvals from the `action' Minister to the Environment Minister, as do the majority of witnesses and submitters.

The Australian Democrats also support the establishment of the Australian Whale Sanctuary, the protection of Ramsar wetlands, the expansion of current threatened species provisions beyond Commonwealth areas and actions, the removal of obstacles to controlling damaging activities in World Heritage properties and the recognition of vulnerable ecological communities and conservation dependent species. These benefits are considerable in their scope compared to existing legislation.

Process Issues

The Australian Democrats consider that the development process of the Bill itself was less than satisfactory and opportunities were missed for accepting many matters raised during limited consultation processes.

The main genesis of the Bill is the Heads of Agreement by the Council of Australian Governments of 1997 (the COAG Agreement).

We do not consider that the COAG Agreement is a valid basis for legislation. The Agreement was cloaked in secrecy, the only interest group whose position was considered seriously was government, there was no initial public process and as a result, the lowest common denominator in environment protection has prevailed.

The Australian Democrats believe that more genuine efforts to consult with the public during the development of the Bill would have resulted in legislation that better reflected community concerns. Although the Minister released a Consultation Paper on the proposed legislation, many of the witnesses told the Committee that there was limited time to respond to the proposals and the Government appeared not to have taken into account the comments that had been made.

Complaints about the process came from the full range of industry, environment and community groups. Traditional owners were not consulted in any meaningful way on the very significant changes proposed to their lease agreements in Uluru, Kakadu and Booderee. The consideration of the Bill by the public and by the Committee was also made difficult by the lack of detail in relation to bilateral agreements and the regulations which are fundamental to an understanding of the implications of the Bill and to its successful operation. Industry groups noted time after time that this created an unacceptable degree of uncertainty for them, and most requested that the legislation be delayed.

Objects of the Bill and Ecologically Sustainable Development

The concept of ecological sustainable development (ESD) was originally designed to ensure that environmental considerations are taken into account in all decision making, economic and social. Unfortunately the phrase has been contorted somewhat and while the rhetoric is used, the intention is not met currently by the bill. For example, COAG and the Bill's definition of ESD has the precautionary principle and public involvement as `guiding principles' only, not as core objectives.

Many submissions and witnesses commented that the objects clause contains watered-down objectives which do not project a strong commitment to environment protection and biodiversity conservation. More generally, the Bill treats ESD as though it means that environmental issues take second place to economic and social issues. For example, while the Bill requires decisions on environmental approvals to take all economic and social considerations into account, ESD principles (such as they are) only need to be taken into account in relation to the particular matter which triggers assessment (clause 136). In effect, the Bill ensures that economic and social factors are incorporated into environmental decisions, but does not require environmental factors to be a part of social or economic decision making.

The Australian Democrats believe that the objects of the Bill should indicate an unequivocal commitment to protect the environment, rather than `to provide for the protection of the environment'; to ensure ecologically sustainable development, rather than `to promote ecologically sustainable development'; and to conserve biodiversity, rather than `to promote the conservation of biodiversity'. The objects should also explicitly acknowledge the importance of public consultation and involvement in environment protection and biodiversity conservation.

Recommendation

That ecologically sustainable development be defined more rigorously in the Bill and that the objects of this Bill (and other environmental legislation) be amended to place ecologically sustainable development and its principles at centre stage. In particular, qualifications in clauses 3 (a), (b) and (c) should be removed and public involvement should be required at all key stages in environmental approval processes.

Transparency in the Implementation of the Bill

Effective implementation of the Bill, if enacted, will depend to a large extent on the degree to which the community understands the Bill, is committed to its implementation, and is involved in decisions which will ultimately affect the community itself. The Australian Democrats note that one of the principles of ecologically sustainable development included in clause 136(3) of the Bill is that `decisions and actions should provide for broad community involvement on issues which affect the community'. This principle is not adequately reflected in the provisions of the Bill. Amendments will be necessary to ensure adequate public involvement in processes established under the Bill.

It will also be necessary to ensure that there are adequate provisions for the notification and publication of decisions, bilateral agreements, declarations, plans and other instruments under the Bill. In this regard, the Australian Democrats note the numerous exemptions from requirements to publish material, on the grounds that it is commercial-in-confidence. Examples include exemptions in relation to conservation agreements (clause 309), assessment reports (clauses 95, 100 and 105), approvals (clause 133) and variation of conditions (clause 143). While the Australian Democrats appreciate the need to protect commercial confidence in appropriate circumstances, there is potential to abuse the provisions of the Bill to prevent the disclosure of material which relates to the legitimate interests of the community. The Australian Democrats therefore consider that further constraints on the use of commercial confidence exemptions, beyond the reference to the Freedom of Information Act 1982, are required.

Recommendation

That the Bill provide for transparency and openness in relation to all processes under the Bill, through provision for public consultation; public notification of impending decisions; publication of relevant instruments, decisions and reasons; and tight constraints on the use of commercial confidence.

Management Arrangements in National Parks

As stated above, a major concern expressed to the Committee throughout its inquiry was the lack of meaningful consultation about the proposed legislation. This was most starkly illustrated in relation to the proposed changes to the management of national parks. The Bill proposes to abolish the Director of National Parks and Wildlife and the Australian National Parks and Wildlife Service as statutory bodies, transfer the leases for Aboriginal-owned national parks from the Director to the Commonwealth, and require Northern Territory representation to be on the Boards of Management for the Kakadu and Uluru National Parks. Clearly, there was no genuine consultation or negotiation on these matters with the traditional owners of the parks, who were taken by surprise by the contents of the Bill. This lack of consultation is unacceptable, particularly as the traditional owners have freehold title over the relevant national parks and are involved in managing the parks through a close partnership with the Director.

The Australian Democrats believe that current management arrangements for Kakadu, Uluru, and Booderee National Parks should be maintained and that any alternative arrangements should be discussed and agreed with the traditional owners of the parks.

Recommendation

That the current management arrangements for Kakadu, Uluru and Booderee National Parks be maintained, with any alternative regimes to be discussed and agreed with the traditional owners.

Commissioner for the Environment

There is no provision in the Bill for independent reviews of the environmental role and operations of the Commonwealth Government. A number of submissions and witnesses presented compelling evidence on the need for an independent authority to conduct such reviews and report to the public. The Australian Democrats consider that a Commissioner for the Environment would provide an important safeguard for ensuring best environmental practice. For example, a Commissioner could investigate and report on whether bilateral agreements were consistent with rigorous accreditation criteria and whether States were complying with bilateral agreements. The Commissioner would also have regular review powers.

It is clear that the momentum for achieving ecologically sustainable development in the operations of Commonwealth agencies, which began with the ESD Working Group process in the early 90s, has been lost. The Australian Democrats believe that the momentum must be renewed by placing an obligation on Commonwealth departments and agencies to prepare and implement individual strategies for achieving ecologically sustainable development. A Commissioner for the Environment would have an important role in auditing the performance of departments in implementing their strategies. This concept has been put into practice in other countries such as Canada, where the Annual Green Reports of the Commissioner for the Environment and Sustainable Development are providing valuable independent information on the performance of the Federal Government in fulfilling its environmental objectives and promises.

Recommendation

That a Commissioner for the Environment be established as an independent authority to carry out functions such as reviewing bilateral agreements, monitoring State compliance with bilateral agreements, and reviewing the performance of Commonwealth departments and agencies in implementing their ESD strategies.

Limited Commonwealth Environmental Involvement Matters of National Environmental Significance

There is no question that the Bill is based on a very narrow view of Commonwealth environmental involvement. The COAG Heads of Agreement identified thirty matters of national environmental significance, and there can be no justification for restricting Commonwealth involvement in environmental assessment and approval to a mere six. The six agreed on by COAG for Commonwealth involvement exclude some of the most significant environmental challenges facing Australia today – climate change, the clearing of native vegetation (which is one of the most serious threats to Australia's biodiversity), the loss and degradation of native forests, and the unsustainable use of water. These matters are undoubtedly of national environmental significance, and should be subject to the Commonwealth's environmental assessment and approval process.

The majority report argues that the Bill is not intended to address all matters of national environmental significance identified in the COAG Heads of Agreement. The Government asserts that broad-scale matters such as climate change and vegetation clearance are being adequately dealt with by programs and policy responses. Yet Australia continues to see, for example, an increase in greenhouse gas emissions and an alarming loss of native vegetation. The involvement of the Commonwealth in Government programs such as the Greenhouse Challenge is not a substitute for the capacity to assess and approve the environmental impacts of particular projects – for example, the building of a large coal power plant or shale oil mine. Similarly, the existence of the National Pollutant Inventory is not a substitute for the capacity to assess, approve and impose conditions on a new petrochemical plant. It is clear that administrative approaches alone are not sufficient and require legislative backing.

The majority report also argues that there are practical difficulties in applying environmental impact assessment to climate change, vegetation clearance, and water issues in a way which is consistent with Commonwealth environment powers and which does not overlap with State and local government responsibilities. The Australian Democrats note that a number of witnesses and submissions indicated that appropriate thresholds could be applied so that only major activities of national environmental significance require environmental assessment and approval by the Commonwealth.

Recommendation

That the list of matters of national environmental significance requiring environmental impact assessment be expanded to include climate change, native vegetation, forests, and the sustainable use of water, with appropriate thresholds to exclude matters that are not nationally significant.

Limits on Environmental Impact Assessment

Even in relation to these six issues the Commonwealth involvement is narrowly defined, and a broad range of exemptions may be applied (see sections on bilateral agreements and other exemptions, below). For example, as the Bill stands the Commonwealth can only consider the impacts of the activity on the `trigger' – that is, if the trigger relates to threatened species the assessment and approval of the activity only relates to its impacts on threatened species. Thus, if a coal-fired power station which may have a significant impact on a threatened species is proposed, the Commonwealth will be restricted under the Bill to assessing the impact on that species. Hence, the Commonwealth would not be able to assess the impacts on climate change or other matters of national environmental significance, for which the Commonwealth has responsibility.

It is also inconsistent, as noted above, to require the Commonwealth to take into account all economic and social impacts but only an extremely narrow range of environmental impacts. Limiting the Commonwealth to assessing only the impacts relevant to the matter of national environmental significance which triggers assessment, will prevent a holistic approach to environmental impact assessment. This aspect of the legislation represents an unnecessary abandonment of the Commonwealth's environment powers and responsibilities. The Commonwealth should be able to examine at least the thirty matters of national environmental significance for which the Commonwealth has responsibility, as acknowledged in the COAG Heads of Agreement.

The Australian Democrats consider this aspect of the legislation to be an extraordinary and unnecessary fetter on the Commonwealth's environment powers and responsibilities. We are particularly concerned with greenhouse gas emissions, land and water degradation, and the conservation of native vegetation which COAG has explicitly acknowledged are the responsibility of the Commonwealth.

Recommendation

That the Bill be amended to require the environmental assessment and approval process to take account of the impacts on at least the thirty matters of national environmental significance identified by the COAG Agreement, not just the impacts relevant to the matter which triggers assessment.

Accreditation of State and Territory Assessment Processes

The Australian Democrats note that most witnesses and submissions, including those from conservation groups, did not object to the concept of accreditation of State environmental assessment processes through bilateral agreements. However, conservation groups invariably added the proviso that the Bill should be amended so as to improve those current State practices.

However, there appears to be a clear intent on the part of the Commonwealth to use this Bill to give away its responsibilities for approving actions impacting on matters of national environmental significance. One of the most serious flaws is that the Bill does not provide for sufficient safeguards to ensure that accredited State governments will fulfil the national obligations entrusted to them and to ensure that the Commonwealth does not use bilateral agreements to abrogate its national responsibilities for the environment. That these safeguards and constraints are missing reinforces the overall impression of the Bill that the Commonwealth is giving itself as many avenues as possible to absolve itself of its national and international environmental obligations.

The Australian Democrats consider that with appropriate safeguards in place, bilateral agreements could be used to accredit State and Territory processes for environmental impact assessment. Any assessment processes of Commonwealth Departments accredited by the Environment Minister should have strong standards and criteria equivalent to those which apply to bilateral agreements. It is unacceptable, however, to devolve or delegate approval powers relating to matters of national environmental significance, particularly given the Commonwealth's responsibility for meeting Australia's obligations under international environment agreements and the poor record of States and Territories in protecting the national interest with respect to the environment.

Recommendation

That the Bill require all bilateral agreements to meet best practice in relation to environmental protection, public consultation, judicial review, freedom of information, enforcement and standing. The Bill should require all bilateral agreements to contain provisions for auditing, monitoring, and reporting on compliance with, and the effectiveness of, the agreements. The public should also be given a genuine opportunity to comment on each draft bilateral agreement before it is finalised.

That the Bill only provide for accreditation of Commonwealth, State and Territory environmental assessment processes. The Environment Minister must retain the final approval role.

That standards and criteria which apply to bilateral agreements also apply to declarations accrediting Commonwealth assessment processes.

Strategic Assessment

The Bill as it stands will also allow the Commonwealth to ignore the environmental effects of its own policies and programs, since these are excluded from the definition of `action'. There are some provisions for the strategic assessment of policies, plans and programs, but the Australian Democrats consider that the non-mandatory nature of the relevant provisions will undermine the intention to encourage the early consideration of policies, plans and programs before they translate into on-the-ground actions with environmental impacts.

The Australian Democrats note that while the Bill contains mandatory requirements for strategic assessment of fisheries management plans and policies, it will be possible for Commonwealth Ministers and heads of agencies to evade strategic assessment of other policies, plans and programs. Any population policy, for example, would escape formal scrutiny for its environmental impacts, as would the greenhouse impacts of any policy for the energy industry. The Bill should empower the Environment Minister to call in any proposed Commonwealth policy, plan or program which is likely to result in a significant impact on the environment, so that it may undergo strategic assessment.

The Australian Democrats also believe that legislative proposals should be subject to strategic assessment. The Australian Democrats do not consider that this will create an unnecessary administrative burden, given that the Government already requires a regulatory impact statement to be prepared for all legislative proposals that have an impact on business or competitiveness. In fact, the assessment of environmental impacts at an early stage of the legislative process will produce savings for government and community, which will be spared the expense of reversing or repairing any environmental damage resulting from legislation.

Recommendation

That the Bill be amended to provide the Environment Minister with the power to call in any proposed Commonwealth policy (including any legislative proposal), plan or program which is likely to result in a significant impact on the environment.

Screening of Proposals in Environment Assessment

One of the most critical steps in the proposed environmental assessment and approval process is the screening of proposals, in which the Minister would decide whether an action needs approval. If the Minister decides that approval is not needed, the action falls outside the regulatory regime of the Bill and can proceed without assessment. Furthermore, if the Minister has decided that an action does not require approval, under clause 78(3) he or she is unable to revoke that decision once the action has been taken. This is the case, even where the first decision may have been flawed or where substantial new information comes to light which points to the need for environmental impact assessment, such as the discovery of a threatened species in the area where the action is taken.

The Australian Democrats believe that public input is necessary to ensure that screening decisions are based on the best available information. For example, local communities are often in the best position to provide information about the location of threatened species and other matters of national environmental significance. The Australian Democrats have concerns with the contention in the majority report that members of the public will be able to bring to the attention of the Minister any substantial new information relating to a proposal and that it will then cause the Minister to reconsider his or her decision.

Recommendation

That the public be given a genuine opportunity to comment on whether an action referred to the Minister requires approval under the Bill.

That there be a capacity to revisit and revoke a decision in relation to whether an action requires an approval, after the action has commenced or been taken in the light of new information.

Large Scope for Ministerial Discretion and Other Exemptions

Many witnesses expressed concern about the numerous avenues for exemption under the Bill. In addition to the problem of the limitation to six of matters that can `trigger' Commonwealth assessment and approval, there are a large number of ways by which the requirement for an approval can be avoided. The way that bilateral agreements can be used in this way was discussed above. The Australian Democrats consider that more safeguards are needed in the Bill to ensure that Commonwealth responsibilities relating to the environment are not evaded through Ministerial declarations, conservation agreements, and Regional Forest Agreements (RFAs). Ministerial discretion also needs to be reined in to reduce the potential for making arbitrary decisions and evading obligations to protect the environment and conserve biodiversity.

Regional Forest Agreements

The Bill exempts forestry operations from approval if they are undertaken in accordance with a Regional Forest Agreement (RFA) or within a region in which an RFA is being negotiated. The Australian Democrats note that not one environment or conservation group that provided evidence to the Committee expressed confidence in the RFA process. The Environmental Defender's Office highlighted the problem of exempting forestry operations in RFAs from the Bill:

RFAs have been and are being negotiated without minimum standards for environmental impact assessment or public participation. They cover a substantial part of Australia's forests, which in turn provide habitat for a substantial part of Australia's biodiversity. It is completely inappropriate that Australia's `Biodiversity Conservation' Bill does not apply to these forests. [1]

The exemption for RFAs must be removed if the Bill is to play a credible role in the conservation of Australia's biodiversity.

Recommendation

That the exemption for forestry operations in RFA regions be removed. All forestry operations that are likely to have a significant impact on a matter of national environmental significance should be subject to environmental assessment and approval under the Bill.

Identification and Monitoring of Biodiversity

A sound knowledge base is needed to conserve and manage Australia's biodiversity effectively. The identification and monitoring of biodiversity will help to build that knowledge base and provide information that is essential for sound decision making under the Bill. The Australian Democrats welcome the inclusion of the identification and monitoring provisions in the Bill, consistent with the National Biodiversity Strategy and the Convention on Biological Diversity.

However, the relevant clauses in the Bill only specify that the Minister `may' cooperate with, and provide assistance to, other persons for the purpose of identifying and monitoring biodiversity. This level of ministerial discretion creates great uncertainty as to the extent to which these provisions will be used, if they are used at all. The Bill must provide some certainty in this area by encouraging the Minister to take action.

Recommendation

That the Minister's discretion to cooperate with, and give financial and other assistance to, any person for the purpose of identifying and monitoring biodiversity be circumscribed. One possible approach might be to require the Minister to prepare a plan of action and timetable for the identification and monitoring of at least the components of biodiversity listed under the Bill.

Bioregional Planning

The inclusion of provisions for the development of bioregional plans is a welcome and innovative aspect of the Bill. Bioregional planning, which strives to integrate and reconcile biodiversity conservation with the economic and social needs of local communities is widely accepted as an effective and systematic approach to achieving biodiversity conservation. Indeed, the National Biodiversity Strategy recognises the need for, and encourages, bioregional planning.

The Australian Democrats support the majority report in its recognition of the need for a definition of a `bioregion' and for genuine public involvement in the development of bioregional plans. However, the majority report does not properly address the discretionary nature of the bioregional planning provisions, which potentially undermines their usefulness. The Australian Democrats believe that greater certainty is required in relation to the obligation to develop bioregional plans. In addition, the Minister's discretion to consider a bioregional plan in making any decision under the Bill, as he or she sees fit, would render bioregional plans almost meaningless.

Recommendation

That the discretion to prepare bioregional plans be circumscribed and that the Minister be required to have regard to relevant bioregional plans in making any decision under the Bill.

That the public be given a genuine opportunity to comment on draft bioregional plans before they are finalised.

Wildlife Protection in Commonwealth Areas

A number of witnesses pointed out to the Committee that all native wildlife is protected under State and Territory legislation, unless species are explicitly exempted through a schedule or other mechanism. Yet the Bill only provides for the protection of only listed threatened species and ecological communities, listed migratory species, cetacean species, and listed marine species in Commonwealth areas. This is clearly a case where the Commonwealth Government, by proposing to continue its current selective approach, is lagging behind the States and is perpetuating a gap in Australia's legislative regime for wildlife protection. The Australian Democrats consider that this gap must be closed.

Recommendation

That all native wildlife (animals and plants) be protected on Commonwealth lands and waters, unless specifically exempted in a schedule or other mechanism.

Conservation Agreements

Key conservation groups submitted that conservation agreements can be `a powerful tool to encourage good environmental outcomes on private land'. [2] However, the Bill contains some regressive provisions relating to conservation agreements, in particular the ability to exempt certain activities specified in such agreements from the need for approval. The Australian Democrats agree with many witnesses and submitters who argued that this sort of exemption was inappropriate and unnecessary to encourage landholders to enter into conservation agreements.

The Australian Democrats do not agree with the assertions in the majority report that there are adequate safeguards to ensure that conservation agreements will not be used as a convenient means for exempting developments from the environmental approval process. There appears to be no justification for the exemption, as the provision of financial and other assistance by the Commonwealth is a sufficient and appropriate incentive to enter into these agreements.

Recommendation

That the Bill be amended to ensure that conservation agreements do not provide for unwarranted exemptions from the environmental assessment and approval process.

Indigenous Rights and Interests

Indigenous groups had significant concerns about the lack of recognition of indigenous rights and interests related to the environment. These included concerns regarding the removal of the protection allowed to Aboriginal people for subsistence hunting, food gathering and land use under section 70 of the National Parks and Wildlife Conservation Act 1975 and concerns that the Bill ignores Australia's international obligations under the Convention on Biological Diversity relating to the customary use of biological resources and the protection of traditional knowledge relating to the conservation and sustainable use of biodiversity.

The Australian Democrats consider that these deficiencies in the Bill must be addressed.

Recommendation

That indigenous rights and interests relating to the environment and biodiversity be recognised explicitly and adequately in the Bill.

Standing

The Australian Democrats welcome the freeing up of standing rules for injunctions and judicial review under the Bill. The rules that are normally applied by the courts in relation to standing to commence civil proceedings, whilst perhaps appropriate for cases involving purely private matters, are not appropriate for matters involving the public interest, such as the protection of the environment.

However, the Australian Democrats do not agree with the conclusions in the majority report in relation to standing and consider that the Bill should provide standing for `any person'. The Australian Democrats note that the open standing available for many years under NSW environmental legislation has not resulted in the `opening of the floodgates' with respect to litigation which is vexatious or without substance.

Recommendation

That standing should be available to `any person' to seek an injunction or judicial review of a decision made under the Bill.

Senator Lyn Allison

 

Footnotes

[1] Environmental Defender's Office Ltd, Submission 15, p 11.

[2] Environmental Defender's Office Ltd, Submission 15, p 36