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The Guardian - AU
The Guardian - AU
National
Paul Karp

Labor dissent sees Plibersek’s veto on offshore gas project rules restored

Tanya Plibersek
Amendments to a controversial bill are understood to restore the power of veto to the environment minister, currently Tanya Plibersek, after internal Labor dissent. Photograph: Mike Bowers/The Guardian

The Albanese government has kept a lid on dissent over changes to the approval process for offshore gas projects, but a late internal push has seen the environment minister, Tanya Plibersek, regain a power to prevent consultation rules being watered down.

While the resources minister, Madeleine King, had labelled claims she was taking over environmental approvals a “conspiracy theory”, widespread opposition from the Greens, the crossbench, First Nations activists and environmental groups spurred an informal Labor pro-climate group into action.

The relatively innocuous sounding offshore petroleum and greenhouse gas storage amendment (safety and other measures) bill sailed through Labor caucus on 13 February.

But buried in a bill ostensibly about worker safety were amendments stating that approved offshore gas projects would be taken to be compliant with environmental laws even if they wouldn’t otherwise be – an effective override.

The bill’s explanatory memorandum said this is needed to “provide certainty to stakeholders” that existing approvals will “remain effective” in the event of changes to environmental laws.

The Greens were the first to raise the alarm, with their concerns backed by Indigenous activists and environmental groups who argue the bill responds to industry pressure to water down consultation requirements after two high-profile court cases.

Mardudhunera woman Raelene Cooper won her challenge against Woodside’s seismic blasting for the controversial $16.5bn Scarborough gas development due to inadequate consultation, and a Tiwi Islander challenge against Santos’s $5.8bn Barossa offshore gas project succeeded in 2022, slowing down the approval process.

Fears over the bill could be justified after the West Australian revealed Santos had warned King the offshore gas approvals regime was in a “dire” state a week after the federal court overturned Woodside’s approval.

King insists the bill itself does not change the process of assessments or water down environmental standards.

But when combined with her powers to change the consultation requirements and the fact offshore gas approvals are not in the environment minister’s portfolio, it’s easy to see how it could achieve just that.

The bill was expected to pass parliament with bipartisan support after the Coalition demanded clarification of consultation requirements to restart offshore gas investment as one of four demands to pass the petroleum resource rent tax.

The treasurer, Jim Chalmers, insists clarifying consultation requirements and environmental approval changes are happening “for their own good reasons, not as a bargaining chip”.

On 29 February the bill was referred to a snap parliamentary inquiry, which held just one five-hour hearing, adding to crossbench fears the fix was in.

At the inquiry, the resources department explained that since 2014 projects only needed approval from the environment or resources department.

The bill “simply allows flexibility for improvements to the law without automatically introducing that burdensome and bureaucratic process” of requiring approval from both, according to Robert Jeremenko, the head of the industry and resources department’s oil and gas division.

The Senate economics committee reported back on Friday, with the Labor and Coalition majority recommending the bill pass. The Greens, David Pocock and Lidia Thorpe dissented.

Earlier in the week, the government pulled its own bill from the notice paper, a sign that behind the scenes things were a little more complicated.

The assistant health minister, Ged Kearney, Macnamara MP Josh Burns, Fremantle MP Josh Wilson and other Northern Territory and Victoria-based MPs lobbied internally for changes.

The Labor Environment Action Network wrote to the government on Friday, saying it was “deeply concerned” the bill would “create parallel and divergent environmental assessment and approval processes for offshore resource projects”.

King suggested she was open to amendments, as Plibersek pushed to prevent the override becoming a loophole that would exempt offshore gas from the Environment Protection and Biodiversity Conservation Act (EPBC).

Amendments to be introduced this week reinsert a power of veto for Plibersek, through a requirement that both the resources minister and then the environment minister must be satisfied that any changes to consultation rules comply with the ecologically sustainable development principles in the EPBC Act.

The government will also add a 12-month sunset clause to the EPBC override, by which time Plibersek’s EPBC reforms should be done. This should prevent a future Coalition government further streamlining offshore gas approval consultation.

The bill is listed in the House early this week, and in the Senate on Wednesday, allowing it to be passed by Easter.

Despite the marginal improvement that will need two ministers to change consultation requirements, this is still a Labor bill designed to streamline approval for offshore gas and more likely to pass with Coalition votes than the crossbench.

On Thursday Pocock said he is concerned when it comes to climate action that “rather than working with the crossbench the Australian people delivered, Labor seems to want to do a deal with the Coalition, who were voted out” on the basis of climate “inaction”.

“The crossbench stands ready to act in the best interests of Australians, not the best interests of the fossil fuel industry.

“We know … it’s played an important part in our economy but it’s time to transition out of [fossil fuels]. We’re not seeing that – [it’s] really worrying.”

The Albanese government seems determined to govern from the political centre. And on issues like political donations, religious discrimination and offshore gas consultation, it now seems that amounts to seeking opposition support rather than crossbench deals or amendments.

Labor MPs will have to have their wits about them about what they’re being asked to rubber stamp through parliament.

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