Nearly half of Australian businesses say they are less likely to invest in major projects if approval timelines are lengthened, a CCIWA survey reveals.
CCIWA Chief Economist Aaron Morey.
The ‘Nature Positive’ Bill currently before Parliament is proposing to overhaul Australia’s environmental approvals system.
Of 950 businesses surveyed across various sectors, 45% say they are less likely to invest in a project if approval timeframes lengthen or duplicate, while 29% would proceed regardless and 26% are unsure.
CCIWA Chief Economist Aaron Morey says WA has 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,” he says.
“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.”
National EPA poses ‘significant concerns’
The proposed changes in the Bill include establishing a national Environmental Protection Authority (EPA).
“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,” Morey says.
“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.”
CCIWA is also concerned about the overall governance of the new body, which would include a CEO that can only be removed by the Governor-General.
Businesses lack confidence in system
The survey finds WA businesses in resources were most likely to reconsider project investment (53%), followed by those in agriculture (49%) and construction (47%).
Only 22% of Australian businesses say they would have confidence in an environmental approvals system run by independent bureaucrats in Canberra, with 44% having no confidence, and 34% are unsure.
Businesses expressed unease about the potential lack of ministerial oversight for decisions made by the national EPA (60%).
The prospect of the Federal Government’s ‘climate trigger’ on major project, allowing it to block approvals on carbon footprint grounds, is concerning for 59% of businesses.
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