House of Assembly Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia House of Assembly published Bills Explosives Bill Explosives Bill Explosives Bill Second Reading Second Reading The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE (Port Adelaide—Deputy Premier, Minister for Industry, Innovation and Science, Minister for Climate, Environment and Water, Minister for Workforce and Population Strategy) (20:36): I move: That the time allotted for all stages of the bill be 60 minutes. Motion carried. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE: I move: That this bill be now read a second time. A wide variety of different industries in South Australia are affected by the regulation of explosives. Those include transport and logistics, mining and quarrying, agriculture, manufacturing, construction, automotive and aircraft, and the entertainment and pyrotechnic industries. The licensing, transportation and use of explosives has long been regulated by the Explosives Act 1936. That act has only been amended in an ad hoc manner since its introduction and has long been recognised by industry stakeholders as archaic and out of touch with contemporary standards and practices. Each jurisdiction in Australia has its own explosives legislation. However, there has been a recent recognition nationally that the explosives industry has been negatively affected by inconsistent regulation. In 2018, commonwealth, state and territory work, health and safety ministers approved a set of consistent national policy proposals that each jurisdiction should reflect in their own legislation. These principles relate to key areas, including the definition of 'explosives', the licensing framework, the notifications process, and the authorisations process. This bill seeks to modernise the regulation of explosives in South Australia in line with those national policy proposals, ensuring we deliver the highest level of safety standards whilst also delivering efficiencies for businesses by way of reduced regulatory and administrative burden. The bill provides for a licensing framework for explosives, including security-sensitive substances and fireworks. It offers significant opportunity for bespoke licensing arrangements better tailored to address the needs of key industry stakeholders without compromising on safety and security requirements. The key changes proposed in the bill include improved clarity around the definition of 'explosives'; establishment of a licensing framework, including the improved capability for issuing of bespoke licence conditions; the use of digital capability to assist in the administration process and red tape production; an improved notifications process, which provides information to explosive regulators about activities, events or incidents; and an authorisation process, which better accommodates jurisdictional consistency and the removal of duplicate processes. Part 1 of the bill establishes the objects of the act and contains the definitions. The definition of 'explosives' is consistent with the national policy proposals and is supported by industry. Part 2 of the bill introduces new safety and security duties and contains the offence categories. Duty holders must take reasonable precaution and care to eliminate or minimise safety and security risks for activities involving explosives and ensure that all people involved in activities within the scope of the legislation comply with these primary duties. There are four categories of offence for failure to comply with the duties determined by the degree of harm that results from the breach: death, harm to a person, property or the environment, or a dangerous situation. Part 3 of the bill prescribes that the minister may appoint a regulator and sets out the functions of the regulator. It is intended that the regulator will be the Executive Director of SafeWork SA consistent with, current practice. Part 4 of the bill prescribes the process for the authorisation of explosives by the regulator. Once an explosive is authorised, a person with an appropriate licence can manufacture, store, transport, supply, use, import or export the explosive. In addition to being consistent with the national policy proposals, the authorisations process in the bill provides for the recognition of authorisations from other jurisdictions under corresponding laws. Part 5 of the bill provides the regulator with the power to declare an explosive as a prohibited explosive and contains offence provisions for dealing with prohibited explosives. Part 6 of the bill establishes a licensing scheme and gives the regulator power to grant, renew, refuse, suspend or cancel the licence and impose conditions on a licence. Licensing is the key regulatory control of explosives. Under the bill a person must not carry on any activity involving an explosive, unless authorised by licence. The new framework will contain licences to authorise activities (an activity licence), and licences to authorise a person to engage in an occupation involving explosives (an occupational licence). Activity licences include licences to manufacture, import, export, supply, store, transport or use explosives. Occupational licences include for firework contractors and operators and for driving and blasting. Part 7 of the bill deals with enforcement measures. The bill provides for the appointment of authorised persons and sets out their powers and functions, including the ability to issue improvement notices and prohibition notices for noncompliance. Parts 8 and 9 and schedule 1 of the bill provide for reviews of decisions and matters that relate to the administration of the legislation, such as delegations, exemptions, regulation-making powers and transitional provisions. Notices and licensing decisions will be externally reviewed by the South Australian Civil and Administrative Tribunal. Penalties contained in the bill are higher, and in some cases substantially higher, than in the current act. The penalties are consistent with other legislation and reflect the potential for catastrophic harm to people, property and the environment should the duties be breached. The bill reflects widespread consultation incorporating the views of a range of industries, government agencies and other stakeholders, including the Australasian Explosives Industry Safety Group and South Australia Police. I also particularly wish to acknowledge the significant work which has been done at a departmental level by SafeWork SA over a number of years to develop this legislation in consultation with stakeholders. I commend the bill to members and seek leave for the explanation of clauses to be inserted into Hansard without my reading it. Leave granted. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement These clauses are formal. 3—Objects of Act This clause establishes the objects of the measure. 4—Interpretation This clause defines terms for the purposes of the measure. 5—Explosives This clause provides that an explosive is a substance, mixture or article that— (a)	is an explosive within the meaning of Chapter 2.1 of the United Nations Globally Harmonised System of Classification and Labelling of Chemicals (GHS), as in force from time to time; or (b)	is declared by the Regulator under subsection (2) to be an explosive; or (c)	is prescribed by regulation to be an explosive, but does not include a substance, mixture or article that is declared by the Regulator under proposed subsection (2) to not be an explosive. The clause enables the Regulator to make a declaration declaring a substance, mixture or article to be an explosive in certain circumstances. The clause also provides that the regulations may refer to or incorporate, wholly or partially and with or without modification, a specified code, standard or classification scheme. 6—Interaction with other Acts This clause provides that the proposed Act is in addition to and does not limit or derogate from the provisions of the Work Health and Safety Act 2012 or any other Act. 7—Civil remedies not affected This clause provides that he provisions of the proposed Act do not limit or affect any civil right or remedy and compliance with the Act does not necessarily indicate that a common law duty of care has been satisfied. Part 2—Duties for safety and security Division 1—Duties 8—Safety duty This clause establishes that a person must, in carrying on an activity involving an explosive, take reasonable precautions and care to eliminate or minimise the safety risks associated with the activity. 9—Security duty This clause provides that a person must, in carrying on an activity involving an explosive, take reasonable precautions and care in order to keep the explosive secure. Division 2—Offences 10—Failure to comply with duty with knowledge or indifference—Category 1 This clause sets out the elements for a category 1 offence. 11—Failure to comply with duty with indifference—Category 2 This clause sets out the elements for a category 2 offence. 12—Failure to comply with duty—Category 3 This clause sets out the elements for a category 3 offence. 13—Failure to comply with duty—Category 4 This clause sets out the elements for a category 4 offence. 14—Alternative with lesser penalty This clause provides for a court that is not satisfied that a defendant is guilty of an offence charged but is satisfied that the defendant is guilty of some other offence against the Division for which a lesser maximum penalty may be imposed to find the defendant guilty of the latter offence. Part 3—Regulator 15—Regulator This clause relates to the appointment of the Regulator for the purposes of the Act. 16—Functions This clause provides for the functions of the Regulator. Part 4—Authorisations Division 1—Register of authorisations 17—Register of authorisations This clause provides for a register of authorisations for the purposes of the Act. Division 2—Authorisations—General 18—Authorisations This clause provides for authorisations relating to explosives. 19—Determination of application This clause relates to the grant, renewal or variation of an authorisation under the Part. 20—Classification This clause provides for the classification of explosives authorised under the Part. 21—Period of authorisation This clause provides for the period for an authorisation has effect. 22—Renewal of authorisation This clause makes provision in relation to the renewal of authorisations. 23—Variation of authorisation This clause provides for the Regulator to vary an authorisation under the Part. 24—Cancellation of authorisation This clause provides for the Regulator to cancel an authorisation under the Part. 25—Corresponding law authorisations This clause provides for the Regulator to register an authorisation granted under a corresponding law that complies with any requirements prescribed by the regulations. Division 3—Applications 26—Form of application The form of applications under the Part is provided for. Division 4—Unauthorised explosives 27—Unauthorised explosives An offence of dealing with an unauthorised explosive, or contravening a condition of an authorisation, is provided for. Part 5—Prohibited explosives 28—Prohibited explosives This clause provides for the Regulator to declare an explosive to be a prohibited explosive. An offence of dealing with a prohibited explosive is included. Part 6—Licensing Division 1—Requirement to hold licence 29—Requirement to hold licence An offence of carrying on a business or other activity involving explosives as specified in the provision, except as authorised by licence, is set out. An offence of engaging in specified activities involving explosives, except as authorised by licence, is also set out. Related offences are also provided for. It is also provided that a person need not hold a licence in prescribed circumstances or in circumstances determined by the Regulator. 30—Requirement to produce licence A requirement for licence holders to produce their licence is provided for. Division 2—Activity licences 31—Activity licence Activity licences will be of the classes prescribed by the regulations. Division 3—Occupational licences 32—Occupational licences Occupational licences will be of the classes prescribed by the regulations. Division 4—General provisions 33—Grant or renewal of licence A licence may be granted or renewed by the Regulator on application by a person. 34—Term of licence The term of licences is provided for. 35—Licence non-transferable A licence is not transferable. 36—Surrender of licence The Regulator may approve the surrender of a licence. 37—Corresponding law licences The granting or renewal of a licence granted under a corresponding law that complies with any requirements prescribed by the regulations is provided for. 38—Application Provision is made in relation to applications for licences. 39—Safety, security and emergency plans Applicants for licences may be required to submit safety, security or emergency plans. 40—Criteria—general Criteria for determining an application under the Part are provided for. 41—Security clearance Provision is made for applicants for licences to have security cleared persons approved by the Regulator. 42—Fit and proper person The Regulator may refuse an application for the grant, renewal or variation of a licence if the Regulator is not satisfied that the licensee or proposed licensee is a fit and proper person to hold the licence. Division 5—Suspension, cancellation, extension or variation 43—Variation of licence Provision is made for the Regulator to vary a licence (or a condition of a licence). 44—Suspension, cancellation or variation of licence or approval by Regulator Provision is made for the Regulator to suspend, cancel or vary a licence on certain grounds. 45—Extension or reinstatement of licence Provision is made for the Regulator to extend a licence or reinstate a licence that has expired in certain circumstances. Division 6—Licence conditions 46—Licence conditions A licence is subject to conditions determined by the Regulator. 47—Offence to contravene licence conditions If a licence condition is contravened, the licensee is guilty of an offence. 48—Responsible person The business conducted under a licence must be managed by an individual who meets certain criteria (a responsible person). 49—Reporting of loss, theft or unauthorised interference Provision is made for the reporting of loss, theft or unauthorised interference with an explosive to which a licence relates by a licensee. Division 7—Reconsideration of decisions 50—Reconsideration of decisions Provision is made for a person affected by a decision of the Regulator under the Part to apply to the Regulator for reconsideration of the decision. Part 7—Enforcement measures Division 1—General Subdivision 1—Authorised persons 51—Interpretation Definitions are inserted for the Division. 52—Appointment of authorised persons The Minister may appoint authorised persons for the purposes of the Act. 53—Identification of authorised persons Provision is made in relation to the identification of authorised persons. 54—Warrant procedures The issuing of warrants for the purposes of the Division by magistrates is provided for. Subdivision 2—Powers of entry 55—Power to enter An authorised person may enter any place or vehicle to which the Division applies. 56—Entry into residential premises Residential premises cannot be entered under the Part without the permission of the occupier or the authority of a warrant. 57—General powers of authorised persons The general powers of authorised persons are set out. Subdivision 3—Miscellaneous 58—Provisions relating to seizure Provisions relating to seizure orders are set out. 59—Offence to hinder etc authorised persons Actions in respect of authorised persons (including hindering or obstructing authorised persons) are set out in an offence provision. Division 2—Improvement and prohibition notices Subdivision 1—Improvement notices 60—Issue of improvement notices The issuing of improvement notices is provided for. 61—Contents of improvement notices Provisions relating to the contents of improvement notices are set out. 62—Compliance with improvement notice A person to whom an improvement notice is issued must comply with the notice within the period specified in the notice. 63—Extension of time for compliance with improvement notices Provision is made for an authorised person to extend the compliance period for an improvement notice. Subdivision 2—Prohibition notices 64—Power to issue prohibition notice Provision is made for authorised officers to issue prohibition notices in certain circumstances. 65—Contents of prohibition notice Provisions relating to the contents of prohibition notices are set out. 66—Compliance with prohibition notice A person to whom a prohibition notice is issued or a specified direction is given must comply with the direction or notice. 67—Remedial action Provision is made in relation to remedial action to be taken in certain circumstances. 68—Costs of remedial or other action Regulator may recover the reasonable costs of any remedial action taken from the person to whom the notice (to take action) is issued. Subdivision 3—General requirements applying to improvement and prohibition notices 69—Directions in notices Certain matters about directions in notices are provided for. 70—Changes to notice by authorised person Provision is made for changes to notices by authorised persons. 71—Regulator may vary or cancel notice Provision is made for the Regulator vary or cancel notices given under the Division. 72—Formal irregularities or defects in notice This provision is technical. Division 3—Other matters 73—Self-incrimination Provision is made in relation to the privilege against self-incrimination. 74—Notification of certain situations Certain requirement apply in relation to a notifiable situation (which is defined). 75—Power to recall If the Regulator considers that the supply or use of an explosive is unreasonably dangerous, the Regulator may give directions relating to recalling the explosive (or a class of explosives). 76—Action in emergencies Authorised officers are authorised to take action or cause action to be taken in an emergency. 77—Review of notices by Regulator Review of certain notices by the Regulator is provided for. Part 8—Reviews 78—Reviews Provision is made conferring jurisdiction on SACAT to review certain decisions of the Regulator. Part 9—Miscellaneous 79—Exemptions Provision is made for the Regulator to grant exemptions from compliance with the Act or specified provisions of the Act. 80—Delegation by Minister or Regulator Delegation by the Minister or Regulator is provided for. 81—Forfeiture of explosive on conviction Forfeiture of an explosive on conviction of an offence is provided for. 82—Prohibiting offender from involvement with explosives The power to grant an order prohibiting an offender from involvement with explosives is conferred on a court that finds a person guilty of an offence against the Act. 83—Adverse publicity orders A court that finds a person guilty of an offence against the Act may make an adverse publicity order in relation to the person. 84—False or misleading statements An offence of making a false or misleading statement in information provided under the Act is provided for. 85—Statutory declaration The Minister or Regulator may require that information required to be provided by or under the Act be verified by statutory declaration. 86—Confidentiality of information Provision is made in relation to confidentiality of certain information. 87—Giving of notice The means of giving a notice under the Act is provided for. 88—General defence A general defence in criminal proceedings in respect of an alleged contravention of the Act is provided for. 89—Notice of defences Notice of reliance on a defence under the Act must be given to the Regulator. 90—Proof of intention etc for offences It is declared that it is not necessary to prove any intention or other state of mind in order to establish a contravention of the Act (except if there is an express provision in the Act to the contrary). 91—Imputation in proceedings of conduct or state of mind of officer, employee etc Provision is made for the imputation of the conduct or state of mind of an officer, employee or agent of a body corporate acting within the scope of their actual, usual or ostensible authority to the body corporate in proceedings. Similar provision is made in relation to employees and agents of individuals. 92—Statement of officer evidence against body corporate In proceedings for an offence against this Act by a body corporate, a statement made by an officer of the body corporate is admissible as evidence against the body corporate. 93—Liability of officers of body corporate Provision is made in relation to the liability of officers of body corporate for contraventions of the Act by the body corporate. 94—Continuing offences Provision is made for additional penalties for continuing acts or omissions constituting an offence against the Act. 95—Commencement of proceedings for summary offences Provision is made in relation to commencement of proceedings for summary offences against the Act. 96—Evidence Evidentiary provisions are set out. 97—Recovery of administrative and technical costs associated with contraventions Provision is made in relation to the recovery of certain costs associated with contraventions of the Act. 98—Cost recovery for dealing with dangerous situations Provision is made in relation to the recovery of certain costs for dealing with dangerous situations. 99—Government magazine Provision is made in relation to the establishment, control and supervision of a Government magazine (being a place for the storage of explosives). 100—Harbors and vessels The Regulator may publish standards relating to certain activities involving explosives in or in relation to vessels or harbors. 101—Prohibition of explosives being transported on prescribed roads The transport of explosives on prescribed roads is prohibited. 102—Compulsory acquisition of land A power to compulsorily acquire land for certain purposes is provided for. 103—Requirement to return licence on request A requirement for a licensee to return a licence on request is provided for. 104—Regulations and fee notices Provisions relating to making regulations and fee notices under the Act are set out. Schedule 1—Amendments, repeals and transitional provisions Part 1—Amendment of Tattooing Industry Control Act 2015 1—Amendment of section 21—Offence to possess certain items in premises where tattooing services provided 2—Amendment of section 22—Further powers of police officers—random weapon and explosive searches These clauses make related amendments to the Tattooing Industry Control Act 2015. Part 2—Amendment of Work Health and Safety Act 2012 3—Amendment of section 4—Definitions This clause makes a related amendment to the Work Health and Safety Act 2012. Part 3—Repeals 4—Repeal of Explosives Act 1936 This clause repeals the Explosives Act 1936. 5—Repeal of regulations under Explosives Act 1936 This clause repeals all regulations made under the Explosives Act 1936. Part 4—Transitional provisions This Part sets out transitional provisions relating to the measure. Mr TEAGUE House of Assembly Heysen Mr TEAGUE (Heysen) (20:43): I commend the Deputy Premier for ably rehearsing the contents of the government's speech, for the first time aired, at its premiere, if you like, back on 4 May of last year in another place, and so we had the benefit of that and it is also well known that the opposition supports the bill. I am the lead speaker for the opposition but I will not need anything like the period of the guillotine in this case, at least as presently advised the eleventh guillotine in a day. I do just take a moment to indulge a memory of my wife Maria's grandmother who, back in the day travelling on public transport in Stockholm, used to make a habit of carrying the explosives with her on the bus to get to the block to be able to then build the family home. That is a family story that is told. The Swedes are big on explosives, Alfred Nobel perhaps having been the most famous entrepreneur, scientist and developer of that technology. The ad hoc use of explosives is something that perhaps belongs to another era—not so routine. While reflecting on people's grandparents, I remember that, on those rare occasions when my grandparents used to fly over from Western Australia, it used to be my grandfather's practice to put his chainsaw in the hand luggage. That is something that would not happen today either. So we have better, particularly as far as industry is concerned, and hopefully nationally consistent laws in terms of the regulation of the use of explosives, and this is such an example. It has been observed that the old act, the 1936 act, is both long in the tooth and has been the subject of ad hoc amendment over the journey. What we are now going to see is a nationally consistent approach. Each of the relevant parts are going to now take on, hopefully, something that those who are involved in transport logistics, mining and quarrying, agriculture, manufacturing, construction, the automotive and aircraft industries, as well as the entertainment and pyrotechnic industries, are all going to benefit from. The work that has been done nationally goes back some significant number of years, back to 2018. I commend the work of the minister in another place for bringing the legislation here. I again express my surprise that it has now taken well over a year, since the time that we first heard about it from the minister in another place, to get here. It has long been known that the opposition supports the bill, and the government has been in a position to progress debate for many months. It is high time that it did. I commend the bill and commend its speedy passage through the house this night. The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE (Port Adelaide—Deputy Premier, Minister for Industry, Innovation and Science, Minister for Climate, Environment and Water, Minister for Workforce and Population Strategy) (20:47): I thank the member for his contribution and support of the legislation. I look forward to its passage. Bill read a second time. Third Reading Third Reading The Hon. S.E. CLOSE House of Assembly Port Adelaide Deputy Premier Minister for Industry, Innovation and Science Minister for Climate, Environment and Water Minister for Workforce and Population Strategy The Hon. S.E. CLOSE (Port Adelaide—Deputy Premier, Minister for Industry, Innovation and Science, Minister for Climate, Environment and Water, Minister for Workforce and Population Strategy) (20:47): I move: That this bill be now read a third time. Bill read a third time and passed.