Zali Steggall (Warringah, Independent) Share this | Hansard source

[by video link] These amendments will improve the functioning of the EFA by prohibiting taxpayer handouts to fossil fuel projects overseas as well as improve EFA's transparency and accountability. Taxpayer money should not be wasted on assets that will be stranded, especially as we get close to $1 trillion in public debt. Agencies like EFA should also be transparent with the public about their activities and if they are making potentially loss-making investments. Regarding items 1 and 3, research conducted by Jubilee Australia has found that over a hundred potential fossil fuel transactions could not be properly identified due to poor disclosure requirements for EFA and an inability to FOI documents because EFA's commercial and national interest accounts are exempt.

Further, it's the purpose of this bill to allow the ability for EFA to make equity investments, which will increase the risk profile of transactions. And we get the compounded effect of riskier investments with a lack of transparency. The Australian people have no idea where money has been going. Potential losses are being incurred in their name. Any changes to equity investment ability must, therefore, be matched with corresponding changes to transparency provisions. To promote transparency, removal of the FOI exemption was a recommendation of the Productivity Commission in their 2012 review of the operations. As a reason for this, the Productivity Commission stated:

… the FOI Act exemptions reduce the ability of the public and the Australian Parliament to examine facilities for their environmental, social and human rights impacts …

Items 1 and 3 of these amendments will, therefore, amend the Freedom of Information Act 1982 to remove the freedom of information exception provided to part 4 of the Export Finance and Insurance Corporation Act 1991. After commencement of the bill, around 90 per cent of the transactions would be able to be FOI'd under this change. This is an important amendment. Importantly, the exception of part 5 of the EFIC Act, national interest accounts, remains in force, which would still provide important national security safeguards. Part 4 of the EFIC Act will also still be protected by existing FOI safeguards under sections 33 and 47 of the FOI Act.

The Australian public have no idea of the true extent of money being spent on fossil fuels through EFA. They deserve to know. It is simply remarkable that the EFA has operated in the dark for this long. Items 2, 3 and 4: we are experiencing rapid, alarming warming that jeopardises Australia's safety, security and future prosperity. It is clear from the recent IPCC report and from the advice from the International Energy Agency that we must rapidly transition away and stop funding fossil fuels. Item 2 will, therefore, introduce a third schedule to the bill and introduce a definition of 'fossil fuel based infrastructure' and 'fossil fuels'. Item 2 substitutes the definition for 'northern Australian economic infrastructure'. Items 23 and 24 make clear there will be prohibition any assistance, direct and indirect, given by EFA for fossil fuel based infrastructure. That includes guarantees, indemnity, loans, insurance, reinsurance, financial services, financial products, subsidies or investment for the purpose of supporting extraction, transportation of fossil fuels and energy generation. We must stop our fossil fuel spending spree, and these amendments will do just that. I call on both sides of the House, and in particular the opposition, Labor: if you are genuine in your commitment to transitioning to low emissions and dealing with the IPCC's very real warning then we cannot continue to fund fossil fuels.

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