WATER EFFICIENCY LABELLING AND STANDARDS (SOUTH AUSTRALIA) BILL

Second Reading

Adjourned debate on second reading.

(Continued from 1 May 2013.)

The Hon. J.M.A. LENSINK (15:48): I rise to indicate support for this piece of legislation, which implements recommendations of the review of the Water Efficiency Labelling and Standards (WELS) scheme. WELS is a joint initiative between the commonwealth, states and territories. It was originally a voluntary scheme which later became mandatory, and its goal is to implement uniform water efficiency and labelling standards throughout Australia.

A lot of people would be familiar with the star rating system that we have on electrical goods to indicate energy consumption; this is a similar scheme to indicate water consumption. It legislates the minimum water labelling information and water efficiency standards that must be displayed at the point of sale, as well as through advertising on specific plumbing, sanitary and whitegoods products. It does not contain energy information.

The original concept was introduced by the Howard government in 2005. It was then established under the Water Efficiency Labelling and Standards Act 2005 as part of the COAG National Water Initiative. In 2010, an independent review of the WELS scheme was conducted as required under the act, and the Standing Council on Environment and Water agreed to most of the recommendations made, resulting in this bill. The commonwealth parliament passed legislation in 2012 which included amending the Water Efficiency Labelling and Standards Act 2005 and a range of other acts.

This bill will allow the commonwealth to make changes without having to amend state or territory legislation. My understanding is that New South Wales has adopted a similar model, while Tasmania also has a similar bill. Both Victoria and Western Australia are considering the same approach, which is to be more efficient, fairer to registrants, and to better inform consumers.

Registration and fee arrangements subsequently will change with the aim to simplify and streamline registration processes. It will also line up with the commonwealth's definition of supply and will include a new range of products. The bill also clearly defines that any offence committed is to be treated as an offence against the commonwealth. The funding for the scheme is over a three-year period and includes the princely contribution from the South Australian government of $14,000 per annum.

The scheme is important in continuing to achieve water use efficiency goals throughout South Australia, as well as providing a basis to lower households' cost of living by giving them a better understanding of the products they have purchased. I was advised in the briefing that the Department of Sustainability, Environment, Water, Population and Communities (a commonwealth department) received 119 submissions on this WELS scheme specifically in relation to funding arrangements, registration fees, rules and processes, compliance and enforcement, and further development.

I was advised by the government that industry is broadly supportive of the scheme. Whilst not every submission is publicly available, I was advised that no concerns were raised by any South Australian submissions. I would like to thank the minister's office and the departmental offices for providing the briefing and look forward to the committee stage of the debate.

The Hon. K.L. VINCENT (15:52): I would like to thank the council for its patience. I will make a very brief contribution in support of this bill on behalf of Dignity for Disability. Firstly, I would like to thank minister Hunter's office for providing my staff member with a comprehensive briefing on this bill; that is much appreciated.

I believe that the Water Efficiency Labelling and Standards scheme (WELS, as it is fittingly known) is an important regulatory scheme to ensure consumers are informed about the water efficiency of their appliances, such as washing machines and so on. Certainly, in today's society, with what is happening to our environment, arguably that is a very good thing.

From the information given to my office on the briefing, the figures on energy and water savings are very positive and an important feature of this scheme when energy and water bills are particularly a huge cost burden to South Australian families and households in 2013. I do not have any particular questions about the bill at this stage and commend it to the chamber.

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (15:53): The Water Efficiency Labelling and Standards scheme demonstrates how government at all levels and industry can work together on water conservation that benefits both the economy and the environment. The WELS scheme aims to conserve water supplies by reducing water consumption through the adoption of water efficient appliances, provide for appliance efficiency and performance information to purchases of water appliances to allow them to make a well-informed purchasing decision, and promote the adoption of efficient and effective water use technology.

The WELS scheme was introduced in 2006, following commonwealth legislation in 2005 and mirror legislation in other states and territories, including South Australian legislation in 2006. The commonwealth WELS Act 2005 received broad support in the Australian parliament when it was first introduced. Subsequent amendments to that act have also received broad political support. These amendments have enhanced the scheme's efficiency, ensuring that WELS products are fit for purpose and enhancing funding arrangements.

Most recently, the Water Efficiency Labelling and Standards Amendment (Registration Fees) Bill 2013, aimed at supporting the scheme's funding arrangements, has been introduced into the Australian parliament. The current South Australian WELS Act 2006 is no longer consistent with the commonwealth act. This has resulted in the essential intent of the WELS legislation, which is to ensure the local application of WELS consistently with the national approach, being somewhat diminished.

The bill before the council today will ensure the South Australian legislation is consistent with the commonwealth law. At the same time, the bill will address the possibility of different requirements applying to importers and incorporated enterprises under the commonwealth's WELS legislation, compared to an unincorporated business that manufactures WELS products for trade solely within South Australia.

Consistency in the application of WELS across jurisdictions is critical for an effective scheme. South Australia's bill will support a level playing field for businesses that manufacture or are involved in the supply chain of WELS products by applying the commonwealth water efficiency laws as laws of this state. Future administrative changes to the commonwealth act cannot be categorically ruled out of course.

The bill will ensure that South Australia's approach to WELS remains consistent with national legislation and will mitigate the need to amend the state's WELS legislation whenever the commonwealth act is amended in the future. The bill will reduce any potential confusion around the scheme and enhance the overall integrity of WELS for businesses that manufacture or sell WELS products in South Australia, as well as for Australian consumers.

The bill also ensures that South Australia's interests are well served by allowing the state to vary the commonwealth water efficiency laws as they apply within the state, should it be appropriate. The passing of this bill by the South Australian parliament will continue the state's strong role in water management locally and at a national level. I would like to thank members of the council for their time and input into this important legislation.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. J.M.A. LENSINK: I have a couple of questions. Can the minister provide some information about what products might be included in the future in this scheme?

The Hon. I.K. HUNTER: My advice (and I do not have my adviser beside me right now but they are on their way) from memory is that this scheme covers all sorts of products in the water industry such as handbasins, bathroom accessories, toilet accessories, washing machines, etc. Previously I think we used to have a droplet system and now it is moving to a star system I am advised.

The ACTING CHAIR (Hon. K.J. Maher): Are there any further contributions?

The Hon. J.M.A. LENSINK: The question I asked was about what new products may be included within the scheme. Perhaps, with the benefit of his adviser, the minister might have some more information available.

The Hon. I.K. HUNTER: I am advised that the commonwealth and the states are investigating bringing other appliances into the scheme. They are looking at the cost-effective analysis at the moment, but they have under active consideration evaporative air conditioners. There is potential to bring higher standards into play for toilets, I am advised, but there will be the mechanisms should new products be brought into the system that they can be brought in through the standards approach.

The Hon. J.M.A. LENSINK: Thank you for that response. In the briefing, one of the comments was that part of the purpose of the bill is to reduce red tape and the likelihood of future act amendments. Perhaps the minister could comment on that.

The Hon. I.K. HUNTER: My advice is that the commonwealth act has been amended four times and I am also advised that there is another bill before the federal parliament to amend it once more. Each time this happens, of course, we need to amend our complementary legislation which often provides for a period where our acts are inconsistent. That brings about an effective administrative burden to many businesses and so the reduction of red tape will come through the process of having amendments to our state act flow through in the processes that are outlined in this bill through regulation.

Clause passed.

Remaining clauses (2 to 20), schedule and title passed.

Bill reported without amendment.

Third Reading

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation) (16:05): I move:

That this bill be now read a third time.

Bill read a third time and passed.