Richard Marles (Corio, Australian Labor Party, Shadow Minister for Immigration and Border Protection) Share this | Link to this | Hansard source

I rise this evening to speak in favour of and, in the process, to indicate Labor's support for the Civil Nuclear Transfers to India Bill 2016. Labor supports peaceful nuclear cooperation with India, which includes the exportation of uranium to India subject to a range of strong safeguards, many of which were assisted, facilitated and, indeed, negotiated by the previous Labor government with the government of India. What this bill will in essence do is provide certainty for the Australian export of uranium to India in the context of our law. That is important because, in turn, it will provide certainty to exporters here in Australia, which will assist in creating Australian jobs; it will provide a benefit to India, which desperately needs the development of a civil nuclear industry, and our uranium will help support that; and it will also assist in the development and increasing development of Australian-Indian bilateral relations.

At the outset, I want to make it clear that Labor takes a principled approach when it comes to issues regarding the export of uranium. Labor has a history of leadership on nuclear nonproliferation and disarmament. We absolutely and passionately believe in prohibiting and eliminating nuclear weapons as a humanitarian imperative, and we therefore have always taken a judicious and prudent approach to both the mining and the exportation of uranium from Australia. Most importantly, we support the export of uranium to India only under the most stringent of conditions, which ensure that Australian uranium: can only be used for civilian purposes in India; cannot, therefore, be diverted for military uses; can never be used in the development of nuclear weapons; and does not contribute, therefore, in any way to the proliferation of nuclear weapons.

Recognising that these safeguards and protections exist, and noting that our bilateral cooperation with India is beneficial to both nations, Labor is supporting this bill. In doing so, Labor recognises the government's urgency in the passage of this bill—acknowledging that there are Australian suppliers close to finalising initial contracts for supply to India, and India, having already worked for over 10 years with the Nuclear Suppliers Group to demonstrate sufficient credentials in this area, is prepared to begin importing uranium from Australia. As I have said, we also acknowledge the need to provide Australian businesses and exporters with certainty. While there is now an urgent need to pass this bill, in our view, this could have been avoided with better planning. It is unfortunate that the government failed to handle this bill in a more timely manner. In the September 2015 JSCOT report, Report 151, the committee clearly recommended, in recommendation 5, that the government:

… outline the legal advice it has received concerning whether the proposed Agreement between the Government of Australia and the Government of India on Cooperation in the Peaceful Uses of Nuclear Energy breaches Australia's obligations under the South Pacific Nuclear Weapons Free Zone Treaty.

The government has, with more than a year's time, failed to provide this legal advice and it is unfortunate. Australia's international treaty obligations deserve careful consideration, and the government ought to have provided this advice in a timely manner.

That said, Australia recognises India's strong nonproliferation record, and we acknowledge the separation that exists within India's civil and military nuclear industries. As I have said, India has worked for more than 10 years with the Nuclear Suppliers Group to demonstrate its credentials in this area. India has diligently pursued its credentials as a responsible nuclear nation, and its work within the global nonproliferation and safeguards system has contributed to its shift towards greater regional and global leadership. Australia's agreement to supply uranium to India has been negotiated with due caution and is supported by appropriate international agreements and strong safeguards. The safeguards in place which apply to Australia's supply of uranium to India are conditions set out by the Nuclear Suppliers Group framework, the International Atomic Energy Agency framework and the Australia-India agreement on civil nuclear cooperation.

Nuclear Suppliers Group is a group of nuclear supplier countries that seeks to contribute to the nonproliferation of nuclear weapons, of which Australia is a member. In 2008, the NSG declared that, due to sufficient commitment and action taken by India in support of nuclear nonproliferation, nuclear trade with India was permissible. The NSG framework also includes safeguards and conditions, with IAEA safeguards being a condition of supply. Australian exported nuclear material will exclusively remain in India's civil nuclear sector, to which the IAEA applies strong safeguards and independent inspections. These safeguards are comparable to the safeguards that underpin Australia's other nuclear cooperation agreements. India agrees, in relation to uranium imports under the IAEA conditions, that:

… no such item is used for the manufacture of any nuclear weapon or to further any other military purpose and that such items are used exclusively for peaceful purposes and not for the manufacture of any nuclear explosive device.

Through the Australia-India Nuclear Cooperation Agreement, India and Australia agree that the:

… use of nuclear energy for peaceful purposes should be consistent with the objectives of non-proliferation of nuclear weapons and with the respective international obligations of states;

Following the NSG's 2008 decision to permit nuclear trade with India, many countries including the US, Canada, France, Japan and Korea established nuclear cooperation with India. Over 10 years ago, India's then Prime Minister, Manmohan Singh, agreed in a joint statement with US President George W Bush, which stated:

India would reciprocally agree that it would be ready to assume the same responsibilities and practices and acquire the same benefits and advantages as other leading countries with advanced nuclear technology, such as the United States.

At this time, Prime Minister Singh committed to the IAEA process of separating India's civilian and military nuclear facilities and programs. This process also included the step of India voluntarily placing its civilian nuclear facilities under IAEA safeguards. More recently, in January 2015, Prime Minister Narendra Modi and President Barack Obama made a further commitment to civil nuclear cooperation, including a commitment to US-built nuclear reactors, which will contribute to India's energy security.

Labor acknowledges the lengthy and intensive process that India committed to over a decade ago and has been diligently pursuing ever since. India's commitment to non-proliferation and disarmament is not just an advancement of our ability to engage in bilateral nuclear cooperation; it also benefits global progress on nuclear responsibility.

This bill is consistent with the position taken by Labor when in government and the positon articulated in Labor's national party platform. Labor's national platform supports the export of uranium only under the most stringent conditions and safeguards. Since 2011, the platform specifically allows for supply to India on the basis of our bilateral relations and key steps taken by India towards nuclear non-proliferation. The current Labor national platform states:

In relation to India, an important strategic partner for Australia, commitments and responsible actions in support of nuclear non-proliferation, consistent with international guidelines on nuclear supply, will provide an acceptable basis for peaceful nuclear cooperation, including the export of uranium, subject to the application of strong safeguards.

Labor in government began the process addressed in this bill. In 2008, as a member of the NSG, Australia supported a decision to enable nuclear trade with India.    In 2009, as a member of the board of governors of the IAEA, Australia approved the nuclear safeguards agreement negotiated by India and the IAEA. In 2012, a key feature of former Prime Minister Gillard's visit to India was the bilateral agreement to commence negotiations on a nuclear agreement. Since that visit, the governments of both Australia and India have taken steps to implement the commitment then made by former prime ministers Gillard and Singh.

The way in which this bill operates is to make Australia's compliance with our international treaty obligations under the Treaty on the Non-Proliferation of Nuclear Weapons and the South Pacific Nuclear Free Zone Treaty clear by law. In terms of the Treaty on the Non-Proliferation of Nuclear Weapons, it is understood that the obligations under the frameworks which I have just described in many respects equal and even go beyond what is required under the NPT. In respect of the South Pacific Nuclear Free Zone Treaty, there is an argument, which this piece of legislation ultimately clarifies, to make sure that our export of uranium to India is compliant in law with that treaty. It is important to acknowledge that the original intent of that treaty related to nuclear testing within the Pacific and, of course, what is being proposed here does nothing to undermine that. None of the other state parties to that treaty have raised any objection to the very public position that Australia has taken in relation to its export of uranium to India and, in terms of what we do in respect of supporting India's civil energy generation in a way that does not give rise to carbon emissions, there is obviously a climate change benefit that benefits those in the region.

It is important to acknowledge the significance of the exportation of Australian uranium to India from the perspective of India. India's civil nuclear energy generation capacity is vitally needed by that country. In India today about 300 million people exist without access to electricity. There is an increasing dependence on imported energy resources to satisfy that rising demand. Its primary energy consumption more than doubled between 1990 and 2011. It is the world's third-largest energy consumer and the third-largest CO2 emitter, and in that context nuclear generated energy is critical to its future.

The passage of this bill will also provide significant benefits here in Australia. Whilst India right now represents a modest market for Australian uranium in the short term, it does have very significant growth potential. India's Department of Atomic Energy is seeking to buy up to 1,500 tonnes of uranium from Australia over the next five years. India currently has 22 operable reactors, with five under construction and another 20 planned within the next eight to 10 years. As new reactors come online from the early 2020s, Australia could expect to supply a significant part of the 2,000 tonnes annually that India will require. Obviously, as India continues its ambitious plans to grow to where it has 25 per cent of its power from nuclear sources by 2050, our position in that export market is critically important.

Finally, there is also strategic benefit from increased cooperation with India. Australia and India have shared a commitment to peace, prosperity and stability in our region. We share a commitment to rules-based order. Australia has a deep interest in not just strengthening the bilateral relationship with India but also supporting India's growing leadership role in our region. It is in our interest to encourage India's growing leadership in the Indian Ocean and across the Indo-Pacific. In 2009, under the previous Labor government, the Australia-India bilateral relationship was elevated to strategic partnership level. We enjoy warm bilateral relationships, including a broad trade and investment relationship and rich people-to-people links. Australia's defence and security ties with India have grown substantially over the past several years. An element of this cooperation is a senior officials level of dialogue between Australia and India on nuclear non-proliferation and disarmament. This type of bilateral exchange enhances the capacities of both our nations to contribute to the global advancement of non-proliferation and disarmament.

For all these reasons, Labor is happy to support this bill.