Push for CSG legislation goes to water

THE push for a direct commonwealth takeover of coal-seam gas exploration and mining approvals is doomed to failure.

Bruce Tyrell

THE push for a direct commonwealth takeover of coal-seam gas exploration and mining approvals that threaten water supplies is doomed to failure after two separate bills were rejected by powerful parliamentary committees.

A Senate committee found a Greens bill to toughen environmental laws went too far because it singled out the mining industry and cut across other state and federal negotiations on water.

A house committee recommended independent Tony Windsor's original bill "not be passed at this time" after a deal was done as part of the mining tax negotiations to standardise state laws and establish an expert scientific committee to review the CSG industry's impact on water.

The call for increased federal oversight of the CSG industry has been in response to rising public concern about the potential environmental impact of CSG exploration.

Veteran winemaker Bruce Tyrrell said yesterday the CSG industry had the potential to wreak havoc in the Hunter Valley, one of the world's best wine regions.

He said he was most concerned about the threat posed by salt water that was brought to the surface with the CSG.

"I am a great believer in food security and where you can grow food, you ought to be looking after it," Mr Tyrrell said.

"I am looking out the window at a piece of soil where I grow probably the best semillon in the world, the most awarded white in the last 15 years in Australia.

"You don't put that sort of stuff at risk for someone's profit for 30 years.

"If they want to come on to that, they will be dealt with under rule .303 -- I'll guarantee that," Mr Tyrrell added.

He said it was the government's job to get the legislation right.

The Senate report makes it clear that the Greens bill will fail when put to a vote in parliament.

Environment Minister Tony Burke said the government did not support the Greens' proposal to expand the Environmental Protection and Biodiversity Conservation Act in the way proposed.

"I made clear at the National Press Club last year what the government's proposals were to reform national environmental law," he said. "The Greens have a different policy.

"The committee has not adopted the Greens policy, nor do I."

The Greens bill sought to amend the act to include "protection of water resources from mining operations" as a matter of national environmental significance.

It strengthened a proposal put by independent MP Mr Windsor by removing the federal government's ability to delegate its decision-making powers to the states.

The Greens bill was reviewed by the rural and regional affairs and transport legislation committee. The mining industry and farm groups argued against the bill.

In a submission to the committee, the Association of Mining and Exploration Companies argued that the mining industry should not be "singled out".

It said a number of industries had the potential to significantly impact on Australia's water resources.

The National Farmers Federation told the committee that while the bill was specific to the mining industry, there was concern that a precedent would be set that could result in the agri-culture sector being targeted. In a majority decision, the Senate committee said matters of national environmental significance should focus on the environmental outcome, rather than a specific industry.

It found that the EPBC Act was not the best way to achieve the intended result, and that current commonwealth and state initiatives rendered the bill "duplicative and unnecessary".

In a dissenting report, the Greens said the legislation's focus on the mining industry was warranted.