Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Hansard source

I particularly want to take this opportunity to speak in relation to the Excise Tariff Amendment (Product Stewardship for Oil) Bill 2014 and the Customs Tariff Amendment (Product Stewardship for Oil) Bill 2014, which are part of the government's overall economic strategy announced in the budget. We made the point that we would restore the Product Stewardship for Oil scheme to being budget neutral over the forward estimates period. What does it mean in practice? It means that there was a problem we inherited, a mess which needed to be fixed, and we have done that. And what that means is that the product stewardship sector will be able to continue, which will bring good environmental benefits, and it will have a certain basis for industry and investment going forward. The member for Flynn and the member for Riverina have both spoken in this debate and contributed to this outcome significantly.

In practice, this bill achieves what we have sought by increasing the rate of levy payable under the scheme to 8½c per litre of oil or kilogram of grease as generated or brought into Australia, because it is primarily brought into Australia, from 1 July 2014. It puts the industry and the product stewardship process on a stable footing.

What does it mean for the environment? We have a problem at the moment where used oil is insoluble, persistent and slow to degrade and evaporate. It does great damage to the system. Secondly, used oil often contains contaminants such as toxic chemicals and heavy metals. It poses a greater environmental risk then new oil. Improper disposal of this used oil can have catastrophic effects on the environment and public health and can pollute land, waterways and underground reservoirs. As a consequence of that, through the product stewardship scheme we are reducing environmental and other impacts of products by encouraging or requiring manufacturers, importers and distributors to take responsibility for these products.

The Product Stewardship for Oil scheme was established in 2001 by the Howard government. It continues today, with strong support from industry and environmental stakeholders

It was, however, not operating in a way which was budget neutral and so the changes we have made seek to ensure that the investment, which has occurred in areas such as the Riverina and Gladstone, is on a full and sustainable basis going forward.

Prior to the Product Stewardship for Oil Scheme being introduced, it was estimated that 160 million litres of used oil were collected annually, compared to 270 million litres today. So an additional 100 million litres of waste oil is being collected. As a consequence of this scheme and, in particular, as a consequence of the stability which we have built into it, 16 oil recyclers are now operating in Australia. It is estimated that their collective turnover is at least $3 billion.

In Gladstone, Southern Oil Refinery and J.J. Richards have just opened a new $55 million used-oil refinery, which is able to process up to $100 million litres of used oil a year. It has created 70 jobs. In Wagga Wagga, the Southern Oil Refinery employs around 30 people. Only today I met with representatives of Transpacific, which is a $1.6 billion ASX-listed Australian waste and recycling company. Their plants in Brisbane, Rutherford and Wetherill Park collect around 160 million litres of oil. So accessing the Product Stewardship for Oil Scheme is critical to the viability of these environmentally sustainable businesses. We have made a change; it is an important change. It puts the industry on a sustainable basis. It is the right thing to do by the environment, it is the right thing to do for job certainty, investment certainty and the future in this space. I commend the bill to the House.

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