CERTAINTY: The resources sector responded swiftly and strongly to the EPA recommendations. Photo: Patrick Cummins

EPA stirs resources sector

Tuesday, 19 March, 2019 - 14:24

The Environmental Protection Authority’s controversial recommendation for major new resources projects to offset their entire greenhouse gas emissions was never going to fly. That’s the political reality in a resources-rich state such as Western Australia.

The outcry from the resources sector, and the federal government, which came in for its share of the criticism from the EPA, was entirely predictable.

So was the early announcement by Premier Mark McGowan that his government did not support the guidelines and would not be acting on them.

The EPA proposed that all new projects emitting more than 100,000 tonnes of carbon dioxide annually fully offset the resulting pollution in order to secure the authority’s approval.

Woodside Petroleum chief executive Peter Coleman didn’t pull his punches, describing it as terrible policy that undermined industries such as natural gas, which were planning investments that would make big contributions to cutting global emissions. Woodside’s proposed investments would create thousands of jobs, he said.

The government was caught between a rock and a hard place. It must be seen to act responsibly on the environmental front, as well as safeguard the state’s economic future. Yet the EPA was simply doing its job.

Its five members, who are appointed on the recommendation of the government, must provide advice on how best to protect the environment and prevent, control and abate pollution and environmental harm.

The members are not public servants, so their advice is independent. It is up to the government whether their recommendations are accepted and implemented.

Bodies such as the EPA have the luxury of advising governments on what is the ‘pure’ position, in this case what is needed to significantly contain carbon emissions. The Productivity Commission in Canberra plays a similar role on economic issues. Its reports rarely meet with total government approval, but they frequently provide a wake-up call.

It’s worth noting that, as environment minister in the Carpenter government in 2006, Mr McGowan had to give the tick for the massive Gorgon project on Barrow Island, against EPA concerns. But that was only after significant safeguards had been obtained.

If the EPA’s recommendations failed to attract a strong reaction from industry – which is naturally defending its own patch – it would be a toothless tiger. Where disputes occur the government becomes the arbiter, as it must be.

The issue for the resources sector in this case is certainty. It doesn’t want tougher environmental guidelines imposed in the middle of major developments.

The issue for the government is balance – a healthy environment on the one hand, and jobs growth on the other. That’s politics.

Hammond over first hurdle

It was important for the Liberal Party that a decisive margin be recorded if former vice-chancellor at The University of Notre Dame Australia, Celia Hammond, was to win party selection for the blue ribbon federal seat of Curtin.

It would show that the party members in the western suburbs electorate strongly backed her. And it would indicate that her traditional Catholic stance on such issues as same-sex marriage was not considered an obstacle in a seat that voted for such change in the national plebiscite.

Winning an absolute majority over her four opponents in the first ballot showed that the selection committee, comprised mainly of local branch members, believed Ms Hammond was the outstanding candidate.

The support of party heavyweights such as former prime minister John Howard, Finance Minister Mathias Cormann and state MLC Peter Collier, plus former Howard government minister Chris Ellison (Notre Dame’s chancellor) did not go astray.

The contest also attracted other well-qualified candidates such as Anna Dartnell from the resources sector, and Erin Watson-Lyn, whose career is in foreign affairs.

Endorsement contests for plum seats can be bruising, and the battle for Curtin didn’t disappoint. An old speech of Ms Hammond’s dealing with conservative values was dug up and circulated by her critics, as were social media messages of Ms Watson-Lyn’s critical of previous party leaders.

Ms Hammond’s challenge is not over. She’s expected to face a strong campaign from independent Louise Stewart, who has chaired Subcontractors WA, in the May federal poll when Curtin voters decide whom to send to Canberra.