Scott Ludlam (WA, Australian Greens) Share this | Link to this | Hansard source

asked the Minister representing the Treasurer, upon notice, on 14 June 2011:

In regard to the Extractives Industry Transparency Initiative and revenue transparency and in reference to the answers to questions during the 2010-11 additional estimates in February 2011 which stated that the United States of America (US) Dodd-Frank Act ‘does not demonstrably reduce corruption’:

(1) Is the Government aware that:

(a) the British and French Governments have publicly stated their support for extractive industry reporting rules in the European Union, similar to the US Dodd-Frank rules; and,

(b) the European Commission is now developing legislative proposals to improve extractive industry disclosure requirements.

(2) Is the Government aware that the Hong Kong Stock Exchange enacted a similar extractive industry disclosure requirement in 2010.

(3) Does the Government accept that secrecy of oil, gas and mining company payments to governments can foster government corruption and violent conflict in resource-rich countries.

(4) Does the Government agree that:

(a) initiatives such as the US Dodd-Frank Act can contribute to improving transparency of extractive industry payments and that this transparency is essential for tackling corruption and reducing poverty in resource rich, poor countries; and

(b) making public the revenues that governments receive from oil, gas and mining companies will make those governments more open and more accountable to their citizens.

(5) Does the Government agree that making public the revenues that governments receive from oil, gas and mining companies will make these industries more transparent to investors.

(6) Given that many companies and other stakeholders believe that extractive industry disclosure requirements should be adapted across all major markets to ensure a level playing field and consistent reporting across countries, what is the Government’s position on this.

(7) Will the Government commit to engaging in dialogue with stakeholders – including Australian mining oil and gas companies, investors and civil society – on possible Australian requirements for extractive industry disclosure similar to the US Dodd-Frank Act; if not, why not.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

(1) (a) The Government is aware that some European Governments have indicated support for extractive industry reporting rules in the European Union. (b) The Government is aware that the European Commission has consulted stakeholders regarding country-by-country reporting by multinational companies but has not yet brought forward draft legislation.

(2) The Government is aware of the new Chapter 18 requirements for extractives companies newly listing on the Hong Kong Stock Exchange.

(3) Yes. In countries with weak governance frameworks, or the absence of the rule of law, government corruption can be a serious problem. The Government supports improved governance arrangements to help address this.

(4) Refer to response to Question 3.

(5) The Australian Taxation Office regularly publishes details of revenue received by industry sector.

(6) The Government believes that action on this subject is most effective if coordinated globally, and is working with other G20 nations to achieve this.

(7) The Government continues to engage with stakeholders to ensure Australia’s governance arrangements remain world’s best practice.