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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-02-17 Daily Xml
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PETROLEUM INDUSTRY

The Hon. B.V. FINNIGAN (16:25): I seek leave to make a brief explanation before asking the Leader of the Government and Minister for Mineral Resources Development a question about regulation of the upstream petroleum industry.

Leave granted.

The Hon. B.V. FINNIGAN: The Productivity Commission last July published an issues paper and requested submissions on the regulatory burden on the upstream petroleum sector. The commission published its draft research report in December and requested that submissions be made by 30 January this year. Will the minister explain how the South Australian regulatory regime fared in this review and how the draft recommendations will affect regulation of the industry in this state?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (16:25): I am delighted to inform members that South Australia's approach to regulating the upstream petroleum sector has been highlighted by the commission's draft report as a working example of best practice. Examples of this recognition are reflected in the following extracts from that draft. In relation to South Australia's adoption of the lead agency or one-stop shop approach in regulating the sector, the report states:

Primary Industries and Resources South Australia was widely seen as a model for other jurisdictions.

In relation to the relative efficiency and effectiveness of various Australian petroleum legislative frameworks, the report states:

Industry participants' feedback suggests that South Australia has a relatively straightforward regulatory system which could be considered a benchmark for other jurisdictions.

The report also states:

The South Australian Petroleum Act 2000 is simple to follow and regulate. The ease of comprehension of the legislation and its purpose are discernible factors when reading the SA legislation.

In relation to breaking through what are considered unreasonable delays in proceeding with native title negotiations, the report states:

ILUAs provide a flexible alternative to negotiating land access approvals...Such agreements have been used successfully in South Australia...Governments should investigate whether the greater use of such agreements is feasible, particularly as reducing unnecessary process delays should lead to better outcomes for all parties.

I am certain that members will agree that such findings reflect the strong support this government affords the resources sector in this state. In particular, the government recognises the fundamental need for an effective and efficient regulatory framework upon which this sector can operate in a safe and environmentally responsible manner. In response to the second part of the honourable member's question, I can advise that draft recommendations simply reinforce the best practice regulatory principles to which the South Australian framework adheres.

Furthermore, the draft recommendations, if implemented, will assist greatly in delivering a consistent best practice regulatory framework for this sector across all jurisdictions, which has been an ambition of this government for some time and which is why the government supports the draft recommendations. Our submission to the review offers not only support for the draft recommendations but also suggests how the intent of these recommendations could be strengthened. In closing, I congratulate the people within Primary Industries and Resources SA who are responsible for developing and administering this regulatory regime.

Shortly I will be seeking cabinet approval to introduce into parliament a bill that will propose amendments to the Petroleum Act to provide further improvements and strengthen what is already widely recognised to be best practice.

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