Nick Xenophon (SA, Independent) Share this | Hansard source

by leave—I move amendments (3) and (4) on sheet 7118 together:

(3)   Clause 56, page 81 (line 19), after "Act", insert "and subject to subsection (1A)".

[excluded offsets projects]

(4)   Clause 56, page 81 (after line 21), after subclause (1), insert:

(1A)   Notwithstanding subsection (1), if a project:

  (a)   was established as, or as part of, a managed investment scheme; or

  (b)   is determined by the Minister, on the advice of the Domestic Offsets Integrity Committee, to have an adverse impact on:

     (i)   the availability of water; or

     (ii)   land and resource access for agricultural production;

the project is deemed to be an excluded offsets project.

(1B)   A determination under paragraph (1A)(b) is a disallowable instrument for the purposes of the Legislative Instruments Act 2003.

(1C)   In this section:

managed investment scheme has the same meaning as in section 9 of the Corporations Act 2001.

[excluded offsets projects]

Mr Chairman, could you bear with me briefly. I apologise to those listening on NewsRadio for the delay—all seven of them! These amendments relate to the so-called negative list—that is, negative factors in terms of the approval of a Carbon Farming Initiative project. They state that projects based on advice by the Domestic Offsets Integrity Committee that have an adverse impact on the availability of water or agricultural production should be on the excluded offsets project list. As I indicated in my second reading contribution, ensuring Australia's water availability and security is vital. I do not believe it should be left up to regulations. If we look at what occurred with the managed investment schemes, the unintended consequences in relation to water security were not dealt with and there was a very real concern that those schemes led to significant rorting, if you like, that had a significant adverse impact on water security in this country and on the water market.

Amendment (4) also states that, where a forest was established by a managed investment scheme, it too should be on an excluded offsets list. Do not reward a project that has been set up as a managed investment scheme; it should be an excluded item. I am aware that the minister and the department have confirmed that managed investment schemes will not be allowed to participate in this scheme. If that is the case—and could I get confirmation of that—then let us put that into legislation. This amendment does this. To put this in context for my colleagues, this relates to ensuring that, when it comes to dealing with issues of water security, adverse impact on water is a significant factor in determining whether a proposal under the Carbon Farming Initiative is approved or not.