Russell Trood (Queensland, Liberal Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Treaties, I present report No. 81, Treaties tabled on 8 August 2006 (2). I move:

That the Senate take note of the report.

I seek the opportunity to make a few remarks on the report. Report 81 contained the findings, binding treaty action and additional recommendations of the committee’s review of two treaty actions tabled in parliament on 8 August 2006 relating to China.

The Agreement between the Government of Australia and the Government of the People’s Republic of China on the Transfer of Nuclear Material creates a nuclear safeguards and physical protection regime for the supply of Australian uranium and its derivatives to China. The second agreement, the Agreement between the Government of Australia and the Government of the People’s Republic of China for Cooperation in the Peaceful Uses of Nuclear Energy, provides for cooperation on nuclear related matters, including the transfer of nuclear-related material, equipment and technology.

Together, the agreements have the same effect as the provisions contained in Australia’s other nuclear material safeguards agreements. They provide assurances that Australian uranium and its derivatives will be used exclusively for peaceful purposes and not diverted to nuclear weapons or other military purposes. These agreements form part of Australia’s obligations under the International Atomic Energy Agency’s safeguards system, which, of course, is aimed at the non-proliferation of nuclear weapons. The agreements allow Australia’s uranium industry to expand its export market while helping China to meet its future energy requirements. The agreements also strengthen the Australia-China relationship and foster continued dialogue with China on nuclear related issues.

The committee received evidence that China is expecting to quadruple its nuclear energy consumption by 2020 and is seeking to secure a long-term source of uranium to satisfy its expanding nuclear energy program. In addition, the Australian uranium industry was interested in exporting uranium to China but was denied access to this export market due to long-standing Australian government policy. This led Australian mining companies, together with Chinese government officials, to approach the Australian government in 2004 to request that the Australian government consider negotiating a bilateral safeguards agreement with China. The treaties reviewed in report 81 were the result of these negotiations.

The short-term impact of the Nuclear Material Transfer Agreement is expected to be an increase the volume of uranium exported from Australia by existing uranium producing companies, agents and agencies. In the medium to long term, the committee found that the impact of the agreements was likely to be an increase in uranium production leading to an expansion of Australia’s uranium industry. However, the committee found that whether Australia’s uranium industry can expand its production is based on commercial decisions by mining companies, and approvals by relevant state, territory, and federal governments.

The committee’s review of these treaty actions focused on whether the treaties are in Australia’s national interest. Accordingly, the committee has concentrated on the main issues arising from the treaties: the impact of the sale of uranium to China, and safeguarding the use of Australian uranium. Where appropriate, the committee has also provided information on issues arising from the indirect impact of the treaty actions, namely environmental and social issues.

The committee received evidence about a number of public concerns relating to the lack of transparency and inadequate governance structures within China as a declared nuclear weapon state. In addition, the weaknesses of the IAEA’s verification and safeguards system were also highlighted.

The committee also received evidence about the negative environmental impact of nuclear energy. Alternative renewable forms of energy production instead of nuclear energy were suggested, as was the use of thorium reactors.

The committee found the treaties reviewed to be in Australia’s national interest. Other recommendations made in report 81 include: the ratification of the treaties; increasing Australia’s monetary contribution to the International Atomic Energy Agency and the Australian Safeguards and Non-Proliferation Office to improve the safeguards system; lobbying the International Atomic Energy Agency for mandatory safeguarding of conversion facilities in the five declared nuclear weapons states; and continuing dialogue with the Chinese government about governance and transparency issues.

I commend the report to the Senate.