Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

In speaking to the Environment Protection and Biodiversity Conservation Amendment (Bilateral Agreement Implementation) Bill 2014, may I say from the outset that this bill is part of the government's wider program of deregulation and red tape reduction. It seeks to amend the EPBC Act 1999 to allow states and territories to be accredited for approval decisions, where states and territories can demonstrate that they will maintain the high environmental standards required by the EPBC Act. Memoranda of understanding will be signed with states and territories establishing a single system for environmental approvals under the EPBC Act. No longer will a separate Commonwealth assessment and approval under the EPBC Act be required where an accredited state approval is in place.

This bill also introduces a range of technical amendments to ensure the process can operate effectively and efficiently, providing much-needed certainty to industry. Although this bill is specifically targeted at developments which are likely to have a significant impact on water resources, the broader principle of removing the two-tier approvals system applies. In effect, it will create a single point for environmental approvals. It is designed to remove the duplication of federal and state approvals processes, which currently involves multiple layers of bureaucracy, creating uncertainty and delays. Delays to large projects of economic significance are adversely impacting industry, diminishing Australia's international competitiveness and holding back economic growth.

In commercial terms, securing private sector investment in development projects is the sustainable way to create economic growth, rather than relying on government spending. It is typically the case that securing the necessary planning approvals for major development projects can take more than six years, at the very least, which represents more than two federal election cycles. By contrast, the approvals processes in many emerging nations in our region are considerably timelier, placing Australia at a competitive disadvantage in terms of attracting private investment capital for major projects. In addition, there is the element of increased holding costs, planning consultants' costs, and the opportunity cost of delays. Australia now faces increasing competition for investment capital from emerging economies in Asia, Africa and South America. Therefore, government must implement reforms to create a more efficient planning approvals system to enable Australian industry to maintain its strategic competitive advantage.

In the 15 years that the EPBC Act 1999 has been in operation, a number of multimillion dollar projects have been delayed, costing the Australian economy billions of dollars in lost opportunity. One such example is the Ocean Reef Marina development in my electorate of Moore, which has encountered several years of delays in negotiating the highly complex planning approvals process. Delays are costly in terms of the opportunity cost of forgone revenue and amenity, as well as holding costs. It is estimated that the project will generate $800 million of investment that includes a mix of residential, commercial and retail uses, as well as provision of moorings for 850 recreational boats. The local community is overwhelmingly supportive of the concept plan.

The marina proposal covers 91 hectares in total, with 57.8 hectares of land based development and 33.6 hectares of development off the coast or on reclaimed land. Unfortunately, the marina project is required to be assessed under a two-tier system of state and federal approvals processes, which has considerably delayed progress since 2004. The project was determined a controlled action under the EPBC Act on 13 July 2009 due to potential impacts on listed threatened species and communities, and listed migratory species. While the project was a controlled action, it was not possible to determine the appropriate assessment approach under the EPBC Act until the Western Australian government had decided on its assessment approach under state legislation. Similarly, the complex and bureaucratic approvals process must deal with issues relating to the Marmion Marine Park, Bush Forever, and Carnaby's Black Cockatoo.

At a state level, in July 2013 the City of Joondalup submitted a Metropolitan Region Scheme amendment to the Western Australian Planning Commission, together with technical information, including detailed studies on the environment, water quality, landscape, traffic and transport. The amendment is required to rezone the area from parks and recreation purpose to urban, to create additional waterways zones and to create new parks and recreation reserved lands.

In May 2014 the City of Joondalup referred the marine based components of the development to the Environmental Protection Authority for assessment under the state Environmental Protection Act 1986. The referral is in line with the Western Australian Planning Commission's referral of the land based components to the EPA as part of the initiation of a Metropolitan Region Scheme amendment to enable the development. The city's referral, under section 38 of the Environmental Protection Act, is based on detailed environmental studies. It is difficult to accurately predict time frames for this complex project; however, the concurrent review of both the environmental components and the MRS amendment will allow for consideration of the social, economic and environmental factors via a holistic planning and environmental assessment process.

The environmental and planning assessment processes are consistent with the memorandum of understanding that the City of Joondalup signed with the state government in 2012. The planning process is ongoing, and it would greatly streamline the Ocean Reef Marina project if the approvals process could be managed by the Western Australian state government with minimal federal involvement.

A second example of a major project within the Moore electorate affected by delays is the Neerabup Industrial Area. It is a 1,000-hectare site which represents the second largest industrial complex in the Perth metropolitan area, second only to the Kwinana Industrial Area. When fully developed the industrial area is expected to create 20,000 new direct jobs, which are forecast to add $7.9 billion to gross state product and generate a further 24,000 jobs off site, for a total economic impact of $13.3 billion. Although there has been some significant investment since 2008, including the $436 million Newgen gas-fired power station and the $110 million Wesbeam manufacturing plant, development in the industrial area has been delayed due to the same bureaucratic two-tiered environmental approvals process and the need to provide infrastructure such as road access, scheme water and telecommunications.

An application was lodged by the West Australian land authority, LandCorp, under the EPBC Act in June 2012. It was determined a controlled action on 10 July 2012 due to potential impacts on listed threatened species, namely the Carnaby's Black Cockatoo and the Forest Red-tailed Black Cockatoo. The clearing of 202 hectares of bushland is required to enable the construction. On 11 October 2012 the delegate of the minister determined that the proposed action would be assessed through preliminary documentation and requested further information, including how the proponent proposed to mitigate impacts prior to and during construction and proposed environmental offsets. The planning approvals process for the Neerabup Industrial Area is ongoing and progress has been very slow. The process has taken more than a decade, which has delayed economic development and impacted on the employment self-sufficiency of the wider region, which is one of the fastest growing areas in Australia.

In both cases there is significant merit for the environmental approvals processes to occur at a more decentralised level, with the state government being accredited to issue the necessary approvals, as distinct from the case being determined centrally. Local decisions are best made locally with the benefit of specific local knowledge. Similarly, there is merit in removing the two-tiered system of both federal and state involvement in the assessment and determination process. One level of government is sufficient.

This bill is part of the government's wider commitment to deregulation and red tape reduction. Currently, the cost of compliance with government legislation and regulation continues to be a major impediment for business across Australia. If our domestic industry is to be competitive then the administrative burden of excessive bureaucracy must be lifted. Business leaders have raised concerns that their operations are being restricted by an increasingly complex multitiered regulatory system that is often so complex and technical that it is necessary to engage specialist consultants to achieve compliance. Those affected range from small businesses to large corporations engaged in multi-million dollars projects. The cost of compliance, coupled with additional holding costs imposed by delays, has a detrimental effect on the financial viability of both business operations and key economic development projects.

The coalition government has introduced legislation in this parliament to repeal approximately 10,000 items of legislation and regulations equating to some 50,000 pages of text removed from the statute books. The repeals are wide-ranging across all ministerial portfolios, including the departments of the Attorney-General, civil aviation, defence, education, employment, environment, finance, foreign affairs and trade. The estimated cost saving to the economy is in the order of $719 million per annum.

An efficient system of planning approvals is required to maintain the productivity and competitiveness of the Australian economy in the face of intensifying competition from emerging economies in our region. Industry needs more certainty and clarity when submitting planning applications for development approval. Competition for project finance within the market can be intense. In order to attract investment capital, it is desirable to reduce the element of risk. The government is committed to reforming the planning and environmental approvals system to make our economy more competitive.

The issue of affordability of land for housing and commercial purposes is very topical on the national agenda. The available supply of land zoned for development is directly impacted by the efficiency of the planning and environmental approvals process. Therefore, it must be a priority for government to reform the current system to make it more responsive in the interests of promoting greater land affordability for all Australians.

In summary, this bill is designed to replace the current two-tiered system of duplication of federal and state approvals processes, which currently adds multiple layers of bureaucracy, creating uncertainty and delay. It seeks to amend the EPBC Act to allow states and territories to be accredited for approvals decisions, where states and territories can demonstrate that they will maintain the high environmental standards required by the EPBC Act. In effect, it creates a one-stop shop for environmental approvals, which in turn promotes productivity, competitiveness and economic development. I commend the bill to the House.

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