Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

This is the fifth and final bill of a complex legislative instrument. Australian taxpayers should not have to bear the cost of regulating the offshore oil and gas activities. This bill will enable the recovery of the cost of regulation from industry, while minimising the regulatory burden on the industry.

This bill amends the Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 to allow two types of cost recovery levies: an annual titles administ­ration levy for an eligible title in force, for each year of the term of the title, to recover the new National Offshore Petroleum Titles Administrator (NOPTA) costs; and an environment plan levy to recover the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) costs.

In line with the Australian government's policy, NOPSEMA and NOPTA are to be funded on a full cost recovery basis with levies raised from the offshore petroleum industry. These fees will be reviewed regularly to ensure the fees reflect the cost of regulating the petroleum industry. The initial fees to recover the establishment and expansion costs for NOPTA and NOPSEMA have already undergone a cost recovery impact statement process. A further cost recovery impact statement will be undert­aken in the second half of 2011 covering NOPTA's and NOPSEMA's operating costs after 1 January 2012. These new levies will, on balance, be less than the fees levied under the current designated authority system and will reflect the true cost of offshore regulation. These reforms reduce the unnecessary compliance burden on industry of compliance and ensure the development of our offshore resources for the benefit of all Australians.

I also say, in seeking to bring this debate to conclusion, I appreciate the contribution to this debate by a range of members in the House and, importantly, the constructive engagement I have had with the opposition over an extended period in seeking to get to this point. The petroleum industry is very important to Australia's economic future. Gas is also regarded as a clean fuel in a transition to a lower emission economy; hence, the constructive development of this industry is essential to Australia's economic and environmental future. We therefore must work collectively together to maintain our social licence to operate in this industry. The experiences of the last 18 months to two years, both in the US with Macondo in the Gulf and in Australia with Montara, have sent a serious message to each and every one of us that we have to work to improve our performance when it comes to best practice in terms of the regulatory regime applicable in this industry. It is the intent of all members of the House to achieve that objective, and I am very lucky to have the support of the House with respect to that very objective.

As is always the case with respect to the reports that I have had to consider and the preparation of the legislative instruments, I, and previously the member for Groom, as minister, rely on a very good Public Service team to do all the necessary hard work. I say to the Department of Resources, Energy and Tourism, particularly the team responsible which is with us in the House today, thank you for a job well done. It is a huge effort, and the Australian community will be the beneficiary of your detailed commitment to consultation in the preparation of the bills which will soon come to conclusion in consideration of the House. I also say that I will continue to work with the Western Australian government to try and reach a conclusion on what I think is an objective being pursued both by Minister Moore, in Western Australia, and me, in the Common­wealth, with the support of the member for Groom, the shadow minister, to ensure not only that, at the end of this debate, there is agreement but that we are all satisfied we have best practice when it comes to the regulation of the petroleum industry in Australia. I commend the bill to the House.

Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Energy and Resources) Share this | Link to this | Hansard source

by leave—I rise briefly to associate myself with the comments that the Minister for Resources and Energy has just made and to reinforce a few of those comments. Firstly, as to the terms of the social licence of the oil and gas industry to operate in Australia, that is a key issue in terms of this industry going forward. As the minister said, it has a critical, if not crucial, role to play in a low-emissions economy, but it has to do that within the community expectations and the environmental constraints that are placed on the industry and it has to do it in such a way that the industry has the absolute confidence of the community.

Secondly, I would like to join the minister in thanking the Department of Resources, Energy and Tourism for their role in this legislation. As the minister suggested, it is very complex legislation and there is a set of quite complex amendments to go with it. It has been crucially important, as has been emphasised by those on both sides of the House, that we get this legislation right. It underpins the legislative framework which will ensure the safety of not only those who work in this industry but also, and just as importantly, the environment which hosts this industry. I thank the department, which is, from my personal experience as a minister, the best department in Australia, and I say that without reservation.

Finally, I thank the minister for the time that he has spent in negotiating with Minister Moore in Western Australia and I thank him for his commitment going forward that those negotiations will continue with the goal of reaching a conclusion. It is important that all parties in this debate do each have the opportunity to express their views. It has been very much a hallmark, starting with the inquiry after the Montara disaster, that all stakeholders in this debate have been able to participate, so I welcome the commitment of the minister going forward.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

It is a bit odd to let the member for Groom speak after the minister has summed up. He was on indulgence and given the nature of the debate and all the rest of it—and my confusion with what is going on—I am going to thank everyone for their assistance at this time. I have located my children!

Question agreed to.

Bill read a second time.