"The package of reforms to national environment laws unveiled today would dramatically improve the speed of the system and respond to many of the concerns expressed about the previous failed attempt. Improving the pace and predictability of approvals for major and critical projects is essential to Australia’s future economic success," Innes Willox, Chief Executive of the national employer association, Australian Industry Group, said today.
"The Parliament should scrutinise the proposals but ensure that measures come into effect in early 2027. Getting an agreement is in the national interest and will be a test of the parliament's maturity.
"These are complex changes to vital laws, and there are many issues to manage. But the fundamental truth is that Australia needs a lot of new projects built, in housing, industry, energy and more – and our current environmental assessments process simply can't deliver clear answers at the pace required.
"The proposed reforms would make it faster, simpler and cheaper to get a 'yes', a 'no, or a 'fix this' decision – without compromising protection for the environment. The consolidated assessment pathway is a good immediate improvement. The changes to landscape-scale assessments should make it much more feasible to do one big assessment for developments like Renewable Energy Zones, rather than a separate process for every component project.
"Most promising is the prospect of single-touch assessments, where States can be accredited to enforce new national environmental standards, and projects can undergo a single assessment process. The necessary powers and flexibilities are in the new legislation, but realistically it will take years of design and negotiation to put this into practice. That work needs to progress as soon as possible.
"On the other most sensitive issues the legislation appears to strike a reasonable balance – though we will continue to scrutinise the text and consult members to ensure it works as intended.
"Higher penalties for breaches are accompanied by more gradations of enforcement action. That should mean that the new National Environment Protection Agency (NEPA) can deliver a level playing field for businesses without using a sledgehammer.
"Opportunities for third parties to intervene in assessments remain, but with tighter time limits and other requirements. That should ensure that issues genuinely missed in an initial assessment are picked up, without an extended cloud of uncertainty.
"The independence of the NEPA was particularly vexed in the previous iteration of reform. The new approach is that NEPA has full independence in the exercise of its own powers around enforcement; the Minister has the power of assessments; but the Minister customarily delegates this to NEPA. That should allow professional and predictable decision making, with a safety valve for the government of the day to respond where community expectations are not met.
"The reforms require proposed projects to provide some greenhouse emissions information, but they don't appear to try to duplicate the Safeguard Mechanism that regulates Australian emissions, or pre-empt the policies of nations that buy Australia's coal and gas exports. That is appropriate. Energy transitions in China, Japan, Korea and other nations will reduce their demand for these fuels over time. But trying to force fuel supply down in advance of those transitions would be unlikely to work but highly likely to deliver domestic pain and international tension.
"The existing environment laws are huge and intricate and the changes are therefore a lot to digest. We need to look closely at every change. But we also need to get this done. There are hundreds of thousands of houses that need building to address the housing crisis. Tens of gigawatts of electricity assets are needed to keep the lights on and cut emissions. Passing legislation to speed up the approvals process takes us to the starting line – not the finish line. Parliament needs to move quickly and maturely," Mr Willox said.
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