Chapter 2
Provisions of the Bill
Outline of the Bill
2.1 The purpose of the Bill is to provide the necessary legislative support to the outcomes of the Regional
Forest Agreements (RFAs) entered into between the Commonwealth and States and Territories, as part
of the implementation of the National Forest Policy Statement (NFPS).
2.2 The Commonwealth government is responsible for coordinating a national approach to both
environmental and industry development issues under the NFPS. The Commonwealth is enacting the
legislation due to its interest in achieving an efficient and effective management of the nation's forest
resources.
History of the Bill
2.3 The Bill was originally introduced to the House of Representatives on 30 June 1998. It was read a
second time on 15 July 1998 and there was substantive debate on the Bill. It was resolved not to refer
the Bill to the House of Representatives Standing Committee on Primary Industries Resources and Rural
and Regional Affairs. The Bill was read a third time but lapsed when parliament was dissolved for the
1998 General Election.
2.4 The Bill was reintroduced into the House of Representatives on 26 November 1998 and, following
debate, was passed by the House of Representatives on 9 February 1999.
Provisions of the Bill
2.5 Clause 3 of the Bill contains definitions of a number of terms, particularly RFA or Regional Forest
Agreement. The Bill defines an RFA as follows:
RFA or Regional Forest Agreement means an agreement that is in force between the
Commonwealth and a State in respect of a region or regions, being an agreement that
satisfies all the following conditions:
(i) environmental values, including old growth,
wilderness, endangered species, national estate values
and world heritage values;
2.6 Clause 4 of the Bill binds the Crown in the right of the Commonwealth.
2.7 Clause 5 of the Bill bequeaths any controls under the Export Control Act 1982 being applied to
RFA wood sourced from an RFA region. The Export Control (Hardwood Woodchips) (1996)
Regulations promulgated in September 1996 were followed in May 1997 by the Export Control
(Regional Forest Agreements) Regulations under the Export Control Act 1982. The effect of these
regulations is that a Commonwealth Export Licence was not needed to export hardwood woodchips and
other unprocessed wood from an RFA region. This Clause provides legislative backing for this process.
2.8 Clause 5 also states that the effect of RFA forestry operations must be disregarded for the purposes
of certain sections of the Australian Heritage Commission Act 1975, Environment Protection
(Impact of Proposals) Act 1974 and the World Heritage Properties Conservation Act 1983.
2.9 The Environment Protection and Biodiversity Conservation Bill 1998, currently before the
Parliament, when enacted, will replace the Environment Protection (Impact of Proposals) Act 1974
and the World Heritage Properties Conservation Act 1983 but not the Australian Heritage
Commission Act 1975.
2.10 The RFA Bill has the effect of not providing protection for World Heritage areas under section 6 of
the World Heritage Properties Conservation Act 1983 if an RFA is in place. In the case of the
Tasmanian RFA, the protection of 'World Heritage values' is specified in the RFA itself. In the case of
the West Gippsland and Central Highlands RFAs, any future World Heritage nomination will be achieved
from within the CAR Reserve System.
2.11 The entire State of Tasmania is classified as one region within the Tasmanian RFA, with the result
that the Tasmanian Wilderness World Heritage Area is covered by this legislation.
2.12 Clause 6 provides that the termination of an RFA by the Commonwealth has no effect unless it is
done in accordance with the termination provisions of the RFA in force at the time the Act commences or
at the time the RFA commences, whichever is later. This is to provide a safeguard that the
Commonwealth cannot agree to subsequently change termination provisions in any RFA without
amendment of the Act by the Parliament. In RFAs already negotiated, termination can only occur 3
months after an intention is notified. As outlined in the Second Reading Speech:
The Commonwealth now proposes that all existing and future RFAs be strengthened by
providing that termination by mutual consent of the parties can only occur 12 months
after an intention to terminate the Agreement is notified; thus allowing a full review of the
operation of the RFA to be carried out.
2.13 Clause 7 is the part of the Bill that provides for the Commonwealth's liability to pay compensation
to a State for a breach of an RFA by the Commonwealth. It states that:
- the Commonwealth is liable to pay compensation to a State in accordance with provisions of the
relevant RFA (subclause 1); and
- the liability incurred when an RFA is in force continues even after the RFA has been terminated or
expired (subclause 2).
2.14 Unlike Clause 5 which applies in relation to 'RFA wood or RFA forestry operations' (a broad
definition including land clearing, land preparation and burning and transport operations as in Clause 3),
Clause 7 is not similarly restricted and applies also to mining.
2.15 Clause 8 requires the Minister to publish information about RFAs.
Provisions of the Bill as they relate to the matters referred to the Committee
by the Senate
2.16 As noted in Chapter 1, specific issues were raised in the Selection of Bills Committee report to the
Senate on the Bill, and, to that extent, the specific clauses in the Bill that have been considered by the
Committee are clauses 4, 5, 6 and 7.