Coronavirus Australia: Green tape to be cleared for recovery

Environment Minister Sussan Ley is set to slash green tape in time for October’s post-coronavirus federal budget.

Australian Environment Minister Sussan Ley. Picture: Lukas Coch/AAP

Environment Minister Sussan Ley is set to cut green tape in time for October’s post-coronavirus federal budget, as a new report shows restrictive environmental regu­lations have grown 4½ times since 2000 and threaten to hamper the economic recovery.

Think tank the Institute­ of Public Affairs’s new study of federal environment laws found regu­lations have grown by more than 10 per cent each year and have ­delayed up to $65bn in new investment.

As Scott Morrison looks ahead to rebuilding the Australian economy after the coronavirus crisis passes, the government is moving to clear its backlog of environmental decisions on dams, roads, public transport, mines and other key projects by June.

Ms Ley told The Australian on Thursday she would then move to make legislative changes to the Environmental Protection and Biodiversity Conservation Act before former com­p­et­ition regulator chief Graeme Samuel hands down his final review into the law at the start of next year.

“The Prime Minister says we need to look at everything with fresh eyes, and coming out of COVID-19 there is no better candidate than the 20-year-old EPBC Act,” the minister said. “The last thing I want to see is unnecessary blockages getting in the way of key projects at the time of recovery.

“The environmental imperatives will not be sacrificed. It’s about getting rid of process for process’s sake, duplication at state and federal levels.

“Once we get the interim report from Graeme Samuel in June, I will absolutely be looking at what changes we can make. I am looking at an early tranche of measures to present to parliament in the October­ ­period.”

A $25m push to improve the Environment Department’s approval processes has begun to produce­ dividends, with 87 per cent of decisions on big projects now being made on time, compared with 19 per cent of the time in the December quarter.

The backlog of decisions on smaller projects is also expected to clear by the end of the year.

Ms Ley said environmental standards would remain strict, but she intended to have all decisions on big schemes made on time by June. “That doesn’t mean everything will get approved. We will still be very tough on ensuring environmental standards are met; it remain­s front and centre. But we are reaching out proactively to key projects, big project­s, about helping them with the next stages of their approvals because these are job-generating enterprises.”

Previous IPA research on the EPBC Act has found green activists using section 487 of the act, which allows groups not directly affected by a project to lodge objection­s and take court action, have put at risk $65bn in investment in large schemes since 2000.

Ms Ley said she would not prejudice Mr Samuel’s review but drawn-out lawfare was not serving the interests of activists. “I agree that the way the EPBC Act is being used in courts is serving nobody’s interests,’’ she said. “There are better­ ways to deal with these issues where there are differences.’’

IPA research fellow Cian Hussey has found the number of regulations contained in the EPBC ACT increased by 445 per cent since the year 2000 and recommended the total volume of regulation should be returned to the year 2000 levels: an 82 per cent reduction in the number of regulatory restrictions from 4820 to 855.

“The Morrison government must slash environmental red tape to boost business investment and job creation in the post-corona­virus economy,” Mr Hussey said on Thursday. “Regulation contained in the EPBC Act has grown by an average of 10.4 per cent each year since 2000, compared with an average economic growth rate of 2.9 per cent and an average population growth rate of 1.5 per cent over the same period.