Chapter 1


Introduction and background

Referral

1.1        On 13 October 2016, the Senate, on the recommendation of the Selection of Bills Committee, referred the Great Australian Bight Environment Protection Bill 2016 (the bill) to the Senate Environment and Communications Legislation Committee (the committee) for inquiry and report by 30 March 2017.[1]

1.2        The bill is a private senator's bill introduced by Senator Sarah Hanson-Young on 15 September 2016.[2]

References Committee inquiry into oil or gas production in the Great Australian Bight

1.3        The Senate Environment and Communications References Committee is currently conducting an inquiry into oil or gas drilling in the Great Australian Bight. This inquiry is examining issues associated with oil and gas exploration and production in the Great Australian Bight including:

  • the potential impact on marine ecosystems, local communities and industry in the event of an oil spill; and
  • the potential impact of exploratory activity such as seismic testing on marine wildlife.

1.4        The inquiry is also examining broader issues including:

  • the prospectivity of the Great Australian Bight;
  • the economic impact of Australia's oil and gas industry, including the generation of employment opportunities;
  • Australia's current and future energy security needs;
  • the offshore oil and gas regulatory regime—its strengths, and areas for improvement; and
  • the capacity for industry and government to mitigate the effects of an oil spill.

1.5        A number of organisations which provided submissions to the References Committee's inquiry subsequently made submissions to the bill inquiry which were substantially similar, or made reference to, their previous submission. Some submitters also provided a copy of their References Committee submission and reiterated that their concerns remained the same.

1.6        The committee notes the work of the Senate Environment and Communications References Committee on its inquiry into oil or gas production in the Great Australian Bight.

1.7        The committee would like to acknowledge and thank the Secretariat staff for their hard work and efforts with assisting the committee.  

Conduct of inquiry

1.8        In accordance with its usual practice, the committee advertised the inquiry on its website and wrote to relevant individuals and organisations inviting submissions. The date for receipt of submissions was 13 January 2017.

1.9        The committee received 13 submissions, which are listed at Appendix 1. The public submissions are available on the committee's website at https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/GABenvironmentalprotect. The committee did not hold any public hearing on the bill.

1.10      The committee thanks all of the individuals and organisations that contributed to the inquiry.

Reports of other committees

1.11      When examining a bill or draft bill, the committee takes into account any relevant comments published by the Senate Standing Committee for the Scrutiny of Bills. The Scrutiny of Bills Committee assesses legislative proposals against a set of accountability standards that focus on the effect of proposed legislation on individual rights, liberties and obligations, and on parliamentary propriety.

1.12      In its Alert Digest No. 7 of 2016, the Scrutiny of Bills Committee stated that it had no comment on the bill.[3]

Scope and structure of the report

1.13      This report comprises three chapters as follows:

  • Chapter 1—provides background information and the purpose of the bill;
  • Chapter 2—outlines the principal issues raised in submissions, and
  • Chapter 3—contains the committee view and recommendation.

Background

1.14      The Great Australian Bight (the Bight), situated off the coastline of South and Western Australia, provides habitat to an array of marine life including a number of endangered and threatened species. It also supports a range of industries such as aquaculture and fisheries, and tourism. The Bight contains a number of marine reserves in recognition of its critical role in providing habitat, the presence of threatened and endangered species, and its outstanding conservation and environmental values.

1.15      At the time of the bill's introduction, BP Australia was engaged in the National Offshore Petroleum Safety and Environmental Management Authority's (NOSPEMA) approvals process for proposed exploratory activity at four locations in the Bight.

1.16      Though BP Australia subsequently withdrew its plans for exploratory activity, other oil and gas companies, including Chevron and Santos, have announced similar plans to undertake exploratory activity in the Bight.

Purpose of the bill

1.17      The bill contains provisions to prohibit mining operations in the Great Australian Bight marine area. The object of the bill is to protect the environment of the Bight, and regional industries which rely on its waters from damage resulting from mining activities.[4]

1.18      The Explanatory Memorandum stated that 'deepwater drilling poses a serious and significant risk to the Bight, its marine life and fishing industries'. It noted the effects of the 2010 Deepwater Horizon oil spill on the Gulf of Mexico, including on marine and wetland ecosystems, and local industries. It further stated that:

Even without a spill, the loud and disruptive blasts from seismic exploration and drilling into the sea floor in conjunction with increased shipping will deter Australian sea lions and southern right whales from birthing in the area and will increase animal strike, pollution, biosecurity hazards and underwater noise.[5]

1.19      Senator Sarah Hanson-Young's second reading speech on the bill explained that 'regional South Australian primary industry groups, eco-tourism operators, traditional owners and environmental conservationists have all said that the Great Australian Bight is a national treasure that is too precious to put at risk' from mining operations.[6] The Explanatory Memorandum concluded that:

The Bight is a nationally significant environmental treasure and it needs to be protected so that local industries are able to flourish and future generations are able to enjoy this magnificent part of Australia.[7]

1.20      The bill proposes to make it an offence to engage in a mining operation in the Great Australian Bight marine area. The penalty for this offence would be two years imprisonment or 1,000 penalty units, or both.[8]

1.21      The bill would however, permit a mining operation if it was for the purpose of research or investigation relevant to the conservation or protection of the Great Australian Bight marine area.[9]

1.22      The bill would apply despite any other law of the Commonwealth including the Environment Protection and Biodiversity Conservation Act 1999 and the Offshore Petroleum and Greenhouse Gas Storage Act 2006. Further, the bill proposes that 'to avoid doubt, an authorisation, permit, title or other instrument that permits conduct that is inconsistent with the operation of this Act is taken to have no effect to the extent of this inconsistency'.[10] The bill would also apply despite any other law of a state or territory.[11]

1.23      The bill defines the 'Great Australian Bight marine area' as the waters of the Southern Ocean that are beyond the outer limits of the coastal waters of South Australia and Western Australia, within the outer limits of the continental shelf, and between Cape Pasley in Western Australia and Cape Carnot in South Australia.[12]

1.24      The bill defines a mining operation as any operation or activity connected with, or incidental to, the mining or recovery of minerals and other geological material (including naturally occurring hydrocarbons) in any form. It also includes any prospecting or exploring for minerals.[13]

1.25      Clause 7 provides that if the operation of the bill results in the acquisition of property from a person otherwise on just terms, the Commonwealth is liable to pay a reasonable amount of compensation. The bill also provides that in the event that the Commonwealth and the person do not agree on the amount of compensation, then the person may institute proceedings in the Federal Court of Australia for the recovery of such reasonable compensation as the court determines.[14]

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