Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Paper products, such as the one I am currently reading from, are made by Australian Paper, in the Latrobe Valley, which is subject to chain of custody certification which is globally endorsed by the Program for Endorsement of Forest Certification. They have one of the highest rates of certification of any paper manufacturer globally. Under the Australian Government ICT Sustainability Plan 2010-2015 all federal government departments were to procure 100 per cent recycled paper. As a result of this policy Australian Paper invested in a de-inking and recycling plant to accommodate government demand for recycled paper. Given Australian Paper's high environmental standards on a global scale, can the minister inform the Senate what steps the government is willing to take to ensure procurement connected policies are urgently addressed to support the long-term security of jobs and manufacturing in Australia upon the ceasing of the government's 100 per cent recycling commitment?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Muir for the question. The Australian government strongly supports recycling and sustainable use of any products under the National Waste Policy: Less Waste, More Resources. The Australian government works with the states and territories to support key national waste priorities, including approaches to sustainable procurement. Substantial improvements in recycling have been progressed through the Australian Packaging Covenant and the newspaper industry's national environment sustainability plan which sees around 80 per cent of all newspapers recycled across Australia. In conjunction with industry governments have also continued to support a number of recycling initiatives, including the National Television and Computer Recycling Scheme and a national tyre recycling scheme, and we are progressing work on batteries, paint and plastics.

Although we have achieved significant outcomes nationally in relation to paper recycling rates, we are looking to do better. The ICT Sustainability Plan 2010-2015 is managed by the Minister for the Environment and was completed by 30 June 2015. I understand the plan was ceased to reduce internal government regulation and reporting and, therefore, the onus on agencies to comply and report against the metrics under the plan will also cease. The plan required general use office paper to have a minimum post-consumer recycled content of 50 per cent by July 2011 with progression to 100 per cent post-consumer recycled content by July 2015. Value for money is of course a core rule of the Commonwealth Procurement Rules. The assessment of value for money includes relevant financial and non-financial considerations such as environmental sustainability, energy efficiency and environmental impact. I might just say here that the Commonwealth Procurement Rules incorporate the relevant provisions from Australia's international agreements and, without the use of local preferencing, Australian suppliers are well represented with 94 per cent of Commonwealth procurement contracts, according to the most recently available data, awarded to suppliers in Australia. (Time expired)

Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Australian Paper has the capacity to produce 50,000 tonnes of recycled paper from 80,000 tonnes of waste paper per year providing there is ongoing support to help Australian manufacturing through relevant government policy. Has the government considered consistency with minimising waste into the future through utilising Australian Paper's ability to operate as not only a manufacturer but also a de-inking plant?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

In order to provide a proper and considered answer to that question I would need to consult with the Minister for the Environment and the Minister for Industry. We have got substantial responsibility across these areas. The ICT Sustainability Plan 2010-2015 did not require the re-use of Australian paper and certainly did not mandate the use of Australian made paper; it was a guidance document to Australian government departments and agencies only. The plan expired in July 2015 and has not been renewed. Minister Hunt is writing to other ministers to ask that, wherever possible, agencies use 100 per cent recycled paper.

Ricky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The Commonwealth is accountable to the Australian people for how it uses and manages public resources. Can the minister explain why the government will not support the Australian paper industry by mandating that all government departments and agencies must replace imported paper with Australian-made paper?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I indicated in my response to the primary answer, there are some limitations under international agreements as to what we can mandate in this space. The Department of the Environment only buys 100 per cent recycled copy paper and encourages other agencies to do the same. The government is moving departments and agencies to digital format record keeping from 2011, guided by the whole-of-government Digital Transition Policy. All agencies are expected to comply with this policy by December 2015. This has resulted in a significant drop in the use of paper across the whole Commonwealth government. Industry was consulted on this policy and its impact on paper usage.

The finance department's Commonwealth Procurement Rules ensure environmental sustainability is part of the considerations in achieving the cost-effective use of resources in procurement decisions. The Commonwealth Procurement Rules incorporate the relevant provisions from Australia's international agreements, which limit the extent to which the Commonwealth government can preference local suppliers. (Time expired)

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

What a pathetic excuse! You abandoned the scheme; you are abandoning Australian jobs.

Senator Cormann interjecting—

It is pathetic!

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

What did you do?

Kim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Link to this | Hansard source

We set up the scheme! What do you mean what did we do?

Stephen Parry (President) Share this | Link to this | Hansard source

Order! Senator Carr! One of your colleagues is waiting to ask a question.