Review to cut red tape
A 12-MONTH review will be carried out by the Productivity Commission to streamline regulation in the resources sector.
It will investigate best-practice examples which remove unnecessary costs for business, while maintaining “sound oversight”.
The analysis looks to lift the efficiency of environmental approval to reduce regulatory burden on business, with the aim of ensuring resource projects are assessed transparently and efficiently, while upholding robust environmental standards.
The move follows criticism surrounding the tardiness of getting projects off the ground, such as the protracted approval processes for Adani’s Carmichael mine (Qld, eight years), the Wallarah 2 coal project (NSW, 16 years) and Cameco’s Yeelirrie uranium development (WA, five years).
The review has been welcomed by resource industry bodies, with the Australian Resources and Energy Group (AMMA) saying it is a significant step towards enhancing the industry’s economic, employment and regional contributions.
AMMA chief executive Steve Knott said it was appropriate that identifying and cutting unnecessary red-tape in major project approval considerations is first cab off the rank as part of the process.
“From a sovereign risk perspective, approvals for nationally important resources projects continue to be embarrassingly slow in Australia,” he said.
“Australians should not have to put up with bureaucratic inefficiencies and government duplication that delays, or in some cases disincentives, major projects that bring huge employment and economic benefits to the regions.
“A more streamlined and clear approach for balancing environmental protection with industry growth will help secure investment in new projects that drive Australian jobs and underpin our economy.”
Minerals Council of Australia chief executive officer Tania Constable applauded the review, saying faster approvals for mining projects and greater certainty of process would support more highly paid, highly skilled jobs across Australia.
“All governments should work together to end the duplication and overlap between environmental regulations and introduce risk-based approaches for assessments and approvals,” she said.
Ms Constable also commented on the Productivity Commission’s Trade and Assistance Review 2017-18, which she said confirmed that the estimated effective rate of assistance from tariff and budgetary assistance for mining was negligible.
“The Productivity Commission estimates that the effective rate of combined assistance to mining in 2017-18 was just 0.2pc – the same low rate observed in the previous five years,” she said.
“Further, mining incurred a net tariff penalty of $102m in 2017-18, owing to tariffs imposed on imports used in Australian mining operations.”