CLP Govt has green tape weaponisation in its sights
The Finocchiaro Government is preparing to put the blow torch to third party merit reviews and their weaponisation.
Northern Territory
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The Finocchiaro Government is preparing to put the blow torch to third party merits reviews and their weaponisation.
Lands Planning and Environment Minister Josh Burgoyne says he wants to take a good hard look at third-party merits reviews and their current relevance.
“The weaponisation of third-party merits reviews has continuously been raised with government by industry proponents who are investing in the Northern Territory,” Mr Burgoyne said.
“Every option is on the table as we look to take action this year to rebuild the Territory economy.”
The reviews have long been blamed for damaging investor confidence in the Territory and holding up multimillion-dollar projects.
There are currently a number of third-party merits reviews before the NT Civil Administration Tribunal (NTCAT).
Two challenge the approval of environmental management plans for onshore petroleum activities under the Petroleum (Environment) Regulations 2016.
These reviews have been brought forward by organisations opposed to the development of the onshore petroleum industry in the NT.
The Environment Management Plans they want reviewed have already been through rigorous assessment by the regulating agency, the independent NT Environmental Protection Authority, and were informed by the public submission process.
These two requests to review decisions authorising petroleum activities are in the magnitude of around $50,000 in direct legal costs to the NT Government to date, however, both reviews are ongoing, and costs are expected to rise.
The costs for proponents would be of a significantly higher sum due to scheduling delays, the costs for specialised equipment and missed revenue for their operators.
It is estimated the cost of just one drill sitting idle on site in the Beetaloo sub-basin is in the magnitude of $100,000 per day, whereas the cost for lodging these review applications is virtually nothing.
According to the Minerals Council of Australia, a one-year delay could reduce the value of a major mining project by up to 13 per cent.
Since 2020, there have been 18 third-party reviews relating to 10 decisions of the Controller of Water Resources.
Seven of the requests for review were made by the Environment Centre NT or the Arid Lands Environment Centre.
Each merits review has taken on average six months to be finalised.
The most significant project which has been delayed as a result of a third-party merits review under the Water Act is for the Fortune Agribusiness’ horticulture development on Singleton Station in Central Australia.
The merits review took seven months however the subsequent legal challenge of the review decision in the Supreme Court exceeds three years at this point.
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