Better regulation will support investment and build community trust in the resources sector

Government commitment to improve regulation for mining and gas projects will have benefits for both industry and the wider community according to a Productivity Commission report released today.

Improving regulation in the resources sector will not only reduce delays and other costs for industry but also help build community confidence in an industry that sees its social licence to operate as one of its greatest risks.

The report is about identifying leading practice processes that reduce unnecessary costs without undermining environmental outcomes.

While all governments have adopted elements of leading practice there remains considerable room for improvement.

“All jurisdictions could learn from each other. A consistent theme is that approval processes have become more complex, take longer and are less certain, for no apparent environmental benefit,” Commissioner Lisa Gropp said.

Leading practice requires focusing on what matters — the biggest risks to the environment and community — and being accountable and transparent.

Priorities for improvement include:

• effective risk- and outcomes-based approaches
• clearer guidance to and stronger engagement with industry
• use of target approval timelines and reporting against them
• improved coordination between regulators to reduce needless duplication
• greater engagement and transparency to build community confidence.

“Few of the issues raised in this study are new. Enduring reform will require governments to provide clear policies and set expectations for regulators, ensuring they have the resources they need to do their job well,” Commissioner Gropp said.

The report also considers how communities, including Indigenous communities, are engaged in projects and share in their benefits.

“Effective engagement is needed to build trust, so listening and being transparent are key,” said Commissioner Gropp. “Regulators need to actively reach out to affected communities. Governments and companies both have roles to play in managing project impacts on local communities.”

The full report can be found at www.pc.gov.au. The closing date for submissions to the draft report is 5 June 2020.

• Preliminaries: Cover, Copyright, Opportunity for further comment, Terms of reference, Contents, Abbreviations
• Overview - including key points
  • Key points
  • Australia’s resources sector at a glance
  • The regulatory landscape is complex
  • Australian jurisdictions have been working to improve their regulatory systems
  • Considerable scope for improvement remains
  • Effective community engagement and benefit sharing can build confidence
  • Indigenous community engagement and benefit sharing
• Leading practices, findings and recommendations
• Chapter 1 About the study
  • 1.1 What has the Commission has been asked to do?
  • 1.2 The scope of the study
  • 1.3 The Commission’s approach
• Chapter 2 Resources activity in Australia
  • 2.1 Australia’s resources sector — an overview
  • 2.2 Resources investment in Australia
• Chapter 3 Regulation: rationales, principles and landscape
  • 3.1 Why do governments regulate resources?
  • 3.2 What does Australia’s resources regulation look like?
  • 3.3 A framework for leading-practice regulation
• Chapter 4 Resource management
  • 4.1 Government provision of pre‑competitive geoscience information encourages exploration investment
  • 4.2 Where can resources developments take place?
  • 4.3 Resource management policies
• Chapter 5 Land access
  • 5.1 The process for obtaining access to private land
  • 5.2 Mining on other Crown land
  • 5.3 Resources development on Indigenous land
• Chapter 6 Approval processes
  • 6.1 Application through to assessment
  • 6.2 Approval and conditioning
  • 6.3 Post‑approvals
  • 6.4 Review mechanisms
  • 6.5 Broader approval processes
• Chapter 7 Managing environmental and safety outcomes
  • 7.1 Compliance monitoring and enforcement
  • 7.2 Offsets
  • 7.3 Resource site rehabilitation and decommissioning
  • 7.4 Safety
• Chapter 8 Other factors affecting investment
  • 8.1 Policy and regulatory uncertainty
  • 8.2 Workforce issues
  • 8.3 Barriers to foreign investment
  • 8.4 Taxation
  • 8.5 Other factors raised in submission
• Chapter 9 Community engagement and benefit sharing
  • 9.1 What problems are community engagement and benefit sharing trying to address?
  • 9.2 Identifying leading practice community engagement
  • 9.3 Identifying leading-practice benefit sharing
• Chapter 10 Indigenous community engagement and benefit sharing
  • 10.1 Understanding Indigenous community engagement and benefit sharing
  • 10.2 Effective Indigenous community engagement
  • 10.3 Effective Indigenous benefit sharing
• Chapter 11 Improving regulator governance, conduct and performance
  • 11.1 Governments are responsible for the foundations of robust regulatory systems
  • 11.2 Regulator performance is also key to outcomes
• Appendix A Conduct of the study
• Appendix B Regulatory arrangements across jurisdictions
• References