Peter Garrett (Kingsford Smith, Australian Labor Party, Minister for the Environment, Heritage and the Arts) Share this | Link to this | Hansard source

I move:

That the amendment be agreed to.

The government amendment that is being considered today will enable an application to be made to the Administrative Appeals Tribunal for a review of a decision of the minister to refuse to vary an approval. Given that a decision to grant an approval and a decision to vary or revoke an approval are subject to merit reviews in the AAT, it is considered appropriate that a decision to refuse to vary an approval should also be subject to merit reviews in the AAT. However, the amendment does exclude a decision to refuse to vary an emergency approval to extend the period of its effect under section 17F. Emergency approvals are intended to be an interim and short-term measure to avoid potential fuel supply shortfalls following which an approval under section 13 of the act may be granted. Given the short duration for which an emergency approval would be in effect, it is considered appropriate that a decision to refuse to vary an emergency approval to extend the period of its effect under section 17F not be subject to merits review in the AAT.

Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Change, Environment and Water) Share this | Link to this | Hansard source

The opposition support the Fuel Quality Standards Amendment Bill 2009. We also happily lend our support to this particular amendment, the reason being that it simply refers to a 14-day emergency provision and it ensures that, even if the application to have it reviewed is not successful, it will lapse after those 14 days or any appropriate extension. So it is not unreasonable. It is designed to help, in cases of emergency, provide fuel security. I would simply make the point that in the broader context we are seeking to work towards higher quality but lower emission fuels through better intensity, and that is a goal supported by both sides of this House.

Peter Garrett (Kingsford Smith, Australian Labor Party, Minister for the Environment, Heritage and the Arts) Share this | Link to this | Hansard source

In summing up, I thank the shadow minister for his remarks and support. 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 for the variation of fuel standards and imposition of conditions to 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 been granted an approval to be required to take measures to offset the adverse impacts from any supply of substandard fuel.

The approvals process has also been streamlined in relation to variations of a minor nature and for the addition of other suppliers to the approval 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 a 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 to the approval.

The bill will also allow the circumstances in which fuel is supplied to be included as part of a 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 areas 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 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 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 penalty regime in the act, new section 65D will provide 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 in ensuring 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. (Extension of time granted) 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.

Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Change, Environment and Water) Share this | Link to this | Hansard source

As I said earlier, we support the Fuel Quality Standards Amendment Bill 2009. It builds upon the parent act of 2000, which was a coalition government initiative. It is part of a two-stage process. Firstly, it ensures that we have appropriate speed in dealing with emergency supplies in cases of unforeseen need, whether it is through shortage, act of nature or act of humanity. Secondly—and I think this is the most prospective and important element—it provides a regime to ensure that the quality of fuel provided in Australia will progressively be improved as we seek fuels which have a lower CO2 impact, which have a lower greenhouse emissions impact.

This bill, which was set up by the coalition and which is now being amended in line with directions that we established, will help us to achieve a lower emissions economy. For that reason and because we believe that the mechanisms chosen to enforce it are appropriate, we are happy to lend our support.

Question agreed to.