Australian businesses have sounded the alarm on the Federal Government’s radical environmental approvals reforms, with a survey revealing almost half would be less likely to invest in major projects if approval timelines were lengthened.
The survey of more than 950 businesses from a range of sectors across Australia was conducted by an independent third-party provider on behalf of CCIWA.
Of those, 45% said they would be less likely to invest in a project if there was further duplication or lengthening of approval timeframes, while 29% indicated they would not be deterred and 26% were unsure.
CCIWA’s submission to the Senate Committee examining the Bill to establish a national Environmental Protection Authority highlights significant concerns that the new body will duplicate approvals at state level, leading to delays and cost blow-outs for major projects.
Alarmingly for Western Australia, the survey found businesses in the resources sector were most likely to reconsider project investment (53%) followed by those in Agriculture (49%) and Construction (47%)
CCIWA Chief Economist Aaron Morey said WA had the most to lose from the proposed reforms.
“Businesses are already tangled in green tape and this proposal to add more hoops for them to jump through will undoubtedly lead to even longer timeframes to get projects off the ground.
“For major projects, every day an approval is delayed is money down the drain, and that sends a worrying message to overseas investors who want to develop projects in Australia.
“Approvals are already taking too long, but instead of working to address green tape like the Western Australian government, the Federal Government is pushing in the opposite direction.”
Only one in five Australian businesses (22%) said they would have confidence in an environmental approvals system run by independent bureaucrats in Canberra, with 44% indicating they would not have confidence, and 34% saying they were unsure.
The survey also highlighted considerable unease about the proposed lack of ministerial oversight for decisions made by the national EPA.
Under the proposed legislation, the EPA CEO will have the power to approve or reject a proposal on environmental grounds only, and once a decision is made, the environment minister would not be able to review the EPA’s approval decisions. This approach fails to take into account the economic and social benefits that major projects provide to Australia’s economy.
Three in five (60%) businesses believed the Federal Environment Minister should be accountable for making decisions on whether major projects proceed.
“Industry has significant concerns about how this new national body will operate. It appears it won’t be required to consider the economic and social benefits of a project and will made decisions purely on environmental grounds,” Mr Morey said.
“This means that nation-shaping infrastructure like new exploration in critical minerals, transmission lines to deliver clean energy to the grid, or residential developments to ease housing shortages could be blocked, with no option for the minister of the day to step in and make a case.
“We’re also deeply concerned about the overall governance of the new body, which would include a CEO that can only be sacked by the Governor-General.”
There was also significant concern around the prospect of a climate trigger being applied to major projects, which would effectively allow the Federal Government to block projects based on their carbon footprint.
The survey found 59% of businesses were “very concerned” or “somewhat concerned” about the Federal Government having the power to block major projects.
