Richard Marles (Corio, Australian Labor Party, Minister for Defence) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

It is my privilege to present the Australian Naval Nuclear Power Safety Bill 2023.

Background

This bill is the second legislative step in support of Australia's acquisition of conventionally armed, nuclear-powered submarines.

It builds on the Defence Legislation Amendment (Naval Nuclear Propulsion) Bill that was introduced in Mayand commenced in July.

Following the passage of that bill, in August the Australian Labor Party National Conference adopted a statement in detail explaining why we are acquiring conventionally armed, nuclear-powered submarines.

We recognise that deciding to acquire conventionally armed, nuclear-powered submarines is a hard choice, but it is actually a clear choice.

The Collins class submarines we currently operate are a potent capability, but diesel-electric submarines will become increasingly detectable.

And so, if we want to maintain a leading-edge capability in the future, then we simply have to take the step of nuclear propulsion.

The statement in detail explains how this Labor government will go about acquiring conventionally armed, nuclear-powered submarines. For example, it says that:

Bill overview

This bill is specifically focused on ensuring Australia maintains the highest level of nuclear safety in respect of nuclear-powered submarines.

It will enable the establishment of a new regulatory framework, including an independent regulator, to ensure nuclear safety within Australia's nuclear-powered submarine enterprise and capability lifecycle.

The new framework will be harmonised with other schemes, including those relating to work health and safety, nuclear nonproliferation and civilian nuclear safety.

Regulated activities

The bill makes clear the activities that are to be regulated, identifying three distinct types of regulated activities:

(1) Facility activities—that relate to particular facilities in Australia that are relevant to AUKUS submarines;

(2) Submarine activities—that relate to AUKUS submarines themselves; and

(3) Material activities—that relate to certain material, plant and equipment that emit or produce radiation that come from (or are for use on) AUKUS submarines.

'Regulated activities' are relevant to 'AUKUS submarines'. 'AUKUS submarine' is a term defined by the Bill and includes, an Australian conventionally armed, nuclear-powered submarine or a United Kingdom or United States conventionally armed, nuclear-powered submarine.

The focus of this bill is on regulating activities across the lifecycle of Australia's own conventionally armed, nuclear-powered submarinesand the facilities in Australia that will support Australian submarines and UK and US submarines. The bill does not apply to conduct on board UK and US submarines.

Designated zones

Under this bill, regulated activities can only occur within 'designated zones' in Australia or in relation to Australia's conventionally armed, nuclear-powered submarines (wherever they are located).

Zones will be designated so it is clear where the boundaries lie between the Commonwealth's existing civil nuclear safety framework, established by the Australian Radiation Protection and Nuclear Safety Act 1998 and the new arrangements under this bill.

Two zones will be designated initially, one at HMAS Stirling in Western Australia and another at the Osborne Naval Shipyard in South Australia. The limits of those zones will be described in regulations.

This bill establishes nuclear safety duties that apply to people when they undertake a regulated activity. It is necessary to impose duties on persons undertaking regulated activities because it is those persons who bear prime responsibility for nuclear safety. For example, a person must ensure nuclear safety so far as reasonably practicable and must be authorised by a licence. A person who is a licence holder must also establish, implement and maintain a nuclear safety management system to ensure nuclear safety. A licence holder would also be required to report nuclear safety incidents and to ensure that persons who are authorised by a licence have the appropriate expertise, training and information to ensure nuclear safety.

Under this bill, a person must comply with the conditions of a licence. Work is underway to develop regulations that would, amongst other things, specify the conditions applicable to particular licences that would be required.

We anticipate an exposure draft of the regulations will be made available next year. Only Commonwealth related persons will be able to apply for a licence and become a licence holder. Commonwealth related persons are defined in this bill to include industry partners who are Commonwealth contractors. Other people may also be authorised under a licence.

This bill establishes a range of significant civil and criminal penalties for contraventions and offences, including breaches of licence conditions and contraventions of nuclear safety duties. These have been benchmarked against other offences in Commonwealth law and certain penalties proposed by the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023, which is currently before the parliament.

This bill establishes a new independent regulator, the Australian Naval Nuclear Power Safety Regulator. The new regulator will work with existing regulators to promote the safety of our submariners, Australian and international communities and the environment.

The name of the regulator is marginally different from the name announced in May this year. The reason for this change is to ensure a clarity of roles. As operator of Australian submarines, the Royal Australian Navy is responsible for the control and disposition of Australian submarines. It is responsible for ensuring all aspects of submarine safety. This applies to the Collins class today and the conventionally armed nuclear powered submarines it will operate in the future.

The Australian Naval Nuclear Power Safety Regulator will be responsible for monitoring and, where necessary, enforcing compliance with nuclear safety duties that would be applicable under this bill. This includes the nuclear powered submarines themselves and also the facilities where they are built, operated from and maintained in.

This regulator will have a range of functions, including considering applications for licences that would authorise regulated activities and compliance and enforcement functions, which would largely be discharged by inspectors who would be appointed under the bill. The powers of the regulator and its inspectors are comprehensive and are first directed towards promoting nuclear safety. The powers include entering, monitoring and investigating areas, conducting searches, operating equipment and securing or seizing evidential material. Inspectors may also give directions, improvement and prohibition notices and make certain requirements of persons that are necessary for nuclear safety. A person would only be appointed as an inspector where the person has the necessary competence, technical expertise and experience to properly exercise the powers of an inspector.

The regulator will be led by a director-general and a deputy director-general. A person will not be appointed as the Director-General or Deputy Director-General of the regulator unless the minister is satisfied they have the competence, independence, technical expertise and relevant experience to properly discharge their important functions. To ensure the independence of the regulator from the Australian Defence Force chain of command, neither the Director-General or the Deputy Director-General will be members of the Australian Defence Force.

The bill provides the Minister for Defence with a power to give the regulator a direction about the performance of its functions and the exercise of its relevant powers.

This power would only be exercisable where the Minister for Defence is satisfied that it is necessary to give the direction to the regulator in the interest of national security and where it is necessary to deal with an emergency. Submarines are warships and will be Australia's most significant strategic asset.

Should the power be exercised, the minister will be required to table, in each house of parliament, a statement that such direction was given to the regulator.

A ministerial direction would not have any effect on the operation of nuclear safety duties in relation to regulated activities—including the operation of an Australian nuclear-powered submarine.

The purpose of this power is to provide a mechanism to ensure that the functions of the regulator do not prejudice, and are not contrary, to national security during an emergency.

Moratorium on civil nuclear power

Consistent with the first tranche of AUKUS related legislation that passed the parliament earlier this year, this bill does not affect the moratorium on civil nuclear power in Australia.

The moratorium has been a feature of Australian law since the Howard government enacted the Australian Radiation Protection and Nuclear Safety Act and Environment Protection and Biodiversity Conservation Act in the late 1990s.

Conclusion

This bill is the second legislative step in support of Australia's acquisition of conventionally armed, nuclear-powered submarines.

This is a responsible and necessary step to ensure delivery of conventionally armed, nuclear-powered submarines, and the safety and security of Australians.

Building the legal architecture to support this endeavour will involve further tranches of legislation.

This work will extend beyond the life of this parliament.

We will continue to adopt a methodical, phased approach that builds our capacity as a nation to safely and securely build, maintain and operate conventionally armed, nuclear-powered submarines.

Doing so will keep Australians safe.

I commend the bill to the House.

Debate adjourned.