Labor resources spokesman Gary Gray has warned the Coalition not to “interrupt” the historic constitutional relationship between the commonwealth and the states by changing the land access rights between farmers and mining companies.
Energy minister Josh Frydenberg has promised to place the issue of landholder rights on the agenda for state and federal resources ministers at the Council Of Australian Governments (Coag) December meeting.
His comments follow the suicide of Queensland farmer George Bender, whose daughter Helen has said it was a result of bullying by coal seam gas companies. She called on state governments to give farmers the right to veto mining on their land.
The assistant health minister, Fiona Nash, was the first to break ranks in the Coalition on the issue, agreeing that farmers should have the right to veto coal seam gas and conventional mining on their land.
The deputy prime minister, Warren Truss, agreed that farmer agreement should be reached for CSG development and agriculture minister Barnaby Joyce, assistant infrastructure minister Michael McCormack and senator Matt Canavan agreed. However, National party MPs said it was a matter for state governments.
Gray told Guardian Australia that while he was sympathetic to the Bender family, the constitution defines mineral wealth belonging to the states for the benefit of all taxpayers.
“Land users obtain the right to use land for the purposes expressed in the lease or licence conditions that they have legally obtained from the state,” said Gray.
“It is not up to the commonwealth to interrupt the historic and constitutional relationship that exists between different levels of government. The mineral wealth of our nation and our states belongs to the people, and belongs to the states. States make decisions as to how that mineral wealth is allocated.”
Gray said if a national regulatory system was needed, Coag could use the national framework for coal seam gas and Labor would support its elevation to Coag standing.
“The mineral resources of our states belong to the people of those states. They don’t belong to individual landowners,” said Gray. “This is an ancient Australian constitutional provision that descends from UK constitutional practice.”
He said the benefit of the current system, which sees mining companies pay royalties to state governments, was the return of $1bn to the taxpayers of Queensland over the forward estimates. While Gray said his preference was to keep the money retained in a “future fund”, it was a decision for the states.
Warren Truss, the Nationals leader and deputy prime minister, said the coal seam gas fields were already largely developed and “plans for the future are largely assured”.
“I think in reality these days, with the capacity to drill sideways, if one farmer does not want to be engaged and participate in the revenue stream from the coal seam gas that does not prevent the project from going ahead,” Truss told the ABC.
“So I think there should be more flexibility available … one landholder’s personal decision is not enough to prevent others in the region from being able to benefit if they choose to participate.”
Truss said the situation in CSG fields had “improved over time” as the companies have adopted a more dealing with land holders.
“It is true early in the process there were some [mining companies] who exercised rights without realising they had to have a social license as well and that has caused a lot of bitterness which has endured but many of the companies now have excellent relationships with farmers,” Truss said.
“The farmers and graziers are sharing resource wealth and as a result the local towns have benefited enormously.”
