Gary Gray (Brand, Australian Labor Party, Parliamentary Secretary for Regional Development and Northern Australia) Share this | Hansard source

I acknowledge the excellent contributions of all speakers in this debate and rise to sum up. The Fuel Quality Standards Amendment Bill 2009 will improve the efficiency and effectiveness of the Fuel Quality Standards Act 2000. In particular, these amendments are needed to improve the development and enforcement of fuel standards, which in turn benefit the public and the environment through cleaner fuels and reduced vehicle emissions. The measures contained in this bill will help the government stamp out unscrupulous dealers who illegally supply substandard fuels to Australian motorists, in breach of national fuel quality standards. The act currently allows for approval of the variation of fuel standards and the imposition of conditions on the approval. However, such conditions must relate to the supply of fuel. The bill will broaden the scope of the conditions that can be applied to approvals to vary fuel standards. This will allow for a company that has just been granted an approval to be required to take measures to offset the adverse impacts of any supply of substandard fuel.

The approvals process has also been streamlined in relation to variations of a minor nature and for the addition to the approval of other suppliers, who are referred to as ‘regulated persons’ under the act. The bill will allow for these sorts of minor decisions to be made by senior departmental officers. A key feature of the bill is the introduction of the power to grant approvals in emergency situations to avoid a potential fuel supply shortfall without having to consult the Fuel Standards Consultative Committee. In these circumstances, where time is very limited before the threat of the fuel supply shortfall is realised, the committee need only be notified of the decision. An emergency approval can only apply for 14 days, after which the committee must be consulted on any proposed extension of the approval. The bill will also allow the circumstances in which fuel is supplied to be included as part of the fuel standard. This provision will allow the inclusion or exclusion of certain end uses, where appropriate, from the application of fuel standards, and it will assist in addressing issues relating to the complexity of defining fuels used for different purposes and the management of blends. This is particularly important for biofuels, where different blend ratios with petroleum fuels will have implications for vehicles. This change will allow for fuel standards to be set for fuels blended with biofuels such as biodiesel and ethanol at different percentages and for clarification in the blend standard of the types of vehicles the fuel is suitable for.

The bill will introduce a more comprehensive range of enforcement measures, including a civil penalties regime, so that there will be for each criminal offence currently in the act an equivalent civil penalty provision. Other enforcement measures include the ability to issue an infringement notice and, if appropriate, accept an enforceable undertaking. These measures will ensure that appropriate action can be taken in respect of breaches of the act. The bill will allow inspectors to enter the public area of business premises during normal hours of operation and exercise a limited range of monitoring powers without the consent of the retailer or without a warrant. Entry to other areas of a business premises or entry outside normal business hours will, as currently applies, require the consent of the retailer or a warrant. The bill will expand current information-sharing powers to allow the secretary to share information obtained under the act to assist in the administration or enforcement of various laws—for example, the Energy Grants (Cleaner Fuels) Scheme Act 2004 and the state and territory fair trading laws. This will facilitate communication with other regulators to increase the intelligence base on potential offenders. It will also assist in addressing gaps in the act’s coverage of the industry.

There is only one new offence in the bill. As a consequence of the addition of a civil penalties regime in the act, a new section 65D provides that the secretary can require a person, other than the person who is suspected of contravening a civil penalty provision, who may have information relevant to an application for a civil penalty order to provide all reasonable assistance in connection with the application. An offence applies for failure to give assistance as required.

The act, as currently written, is difficult to enforce. This bill will make the legislation much more robust to ensure that the quality of fuel supplied in Australia is of the high standard required for new advanced engine technology in vehicles. This will be important to enable us to respond to new fuels and vehicle technologies as they emerge. In closing, let me make clear that this bill will help to stamp out dodgy dealers who supply substandard petrol to consumers and will give Australian motorists confidence that the fuel they are paying for is of the high standard they expect. I commend the bill.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that this bill be reported to the House without amendment.

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