Stuart Robert (Fadden, Liberal Party, Minister for Human Services) Share this | Hansard source

On behalf of the Joint Standing Committee on Treaties I present the committee's report titled Report 168: Certain Maritime Arrangements—Timor Leste, together with the minutes and proceedings.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—Today, I present the Joint Standing Committee on Treaties' report 168, which contains the committee's review of amendments to the agreement on Certain Maritime Arrangements in the Timor Sea with Timor-Leste, commonly known as the CMATS treaty. Australia and Timor-Leste, at present, have not agreed to a permanent maritime boundary in the Timor Sea. This has been the case now for some time.

In the absence of such an agreement, the CMATS treaty provides for the joint development of petroleum and gas reserves in the Timor Sea, known as Greater Sunrise. These reserves have an estimated value of some $40 billion. The CMATS treaty provides that future revenue from the development of Greater Sunrise will be shared equally between Australia and Timor-Leste. It also places a moratorium on establishing a permanent maritime boundary. To date, Greater Sunrise has not been developed, even though the CMATS treaty has been in place for some time.

The amendments to the CMATS treaty, reviewed by the committee, are largely procedural in nature, may I say. However, they are necessary prior to its termination on 10 April. Indeed, the CMATS treaty was terminated unilaterally by Timor-Leste on 10 January this year following an agreement between Australia and Timor-Leste to negotiate permanent maritime boundaries.

Termination of a treaty would normally cease all operations and effect of all its clauses. However, article 12(4) of the CMATS treaty gives continuing effect to a number of provisions that would enliven the whole treaty if Greater Sunrise was developed in the future. It is somewhat of a Lazarus clause. As agreed between Australia and Timor-Leste, the proposed treaty actions under review amend article 12(4) so that the Lazarus clause will not survive beyond termination of the whole treaty. Indeed, what we are presenting today ensures Lazarus cannot rise again.

The committee's report also notes that the CMATS treaty gave Timor-Leste a much larger share of the Greater Sunrise resources than it would have under pre-existing arrangements. These pre-existing arrangements will govern the joint development of Greater Sunrise until such time as a permanent maritime boundary is negotiated. The committee is of the strong view that the maritime boundary dispute, like all disputes, should be negotiated bilaterally and in good faith. We continue to commend both governments for agreeing to cooperate by these principles. Consequently, the committee's report recommends to the parliament that the proposed treaty action to amend article 12(4)—to ensure Lazarus stays where he is—proceeds. This recognises that the termination of the CMATS treaty is a first step towards further negotiation on maritime boundaries.

The committee recommends that binding treaty action be taken. However, in supporting the proposed treaty action, the committee has requested that the Department of Foreign Affairs and Trade brief the committee every six months until this matter is resolved.

I note that the negotiations with Timor-Leste will occur within the confines of the Conciliation Commission, and of course those discussions remain confidential. The committee will, where necessary, hear such briefings in closed session.

These briefings will give the committee the necessary context to review subsequent treaty actions, should Australia and Timor-Leste reach an agreement on maritime boundaries in the Timor Sea.

On behalf of the committee, I commend the report to the House.

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