Environmental overregulation a major ‘roadblock’ to agricultural productivity: Institute of Public Affairs

Australia’s powerhouse agriculture sector is being entangled in green tape as the Federal environmental regulator grows in size and power, a new report reveals, at a time productivity growth is “desperately needed”. The report by conservative think tank the Institute of Public Affairs analysed the number of pages of legislation administered by Federal environment departments dating back to 1971. It found the Department of Climate Change, Energy, the Environment and Water was currently responsible for enforcing 6803 pages of legislation — the highest level on record. By contrast, in 2021 — the final full year of the former Coalition government — DCCEEW enforced fewer than 3000 pages. The massive increase followed Federal Labor’s decision to shift numerous pieces of legislation into the department’s control in October 2022. This was partially due to the transferring of responsibility for existing laws from other portfolios to the environment minister. The result, according to the report, is that the agriculture and resources industries are being burdened by an unprecedented amount of green tape. “The decision by the Albanese Government to massively increase the power and responsibilities of the Federal environment department confirms once and for all its hostility towards Australia’s most productive industries,” IPA research fellow Lachlan Clark said. “At the time Australia desperately needs productivity growth, the Federal Government is handing more laws to the environmental department, which are used as weapons in lawfare by activists, such as the Environmental Defenders Office, to stop the work of Australian farmers and miners.” The report cited section 487 of the Environment Protection and Biodiversity Conservation (EPBC) Act, which enables environmental groups to challenge ministerial approvals of major projects. “Between 2000 and 2020, legal activism by environmental groups through section 487 had put $65 billion of investment at risk by holding major projects up in court for a cumulative total of 10,100 days,” the report said. The report noted the first Federal environment department enforced just 57 pages of legislation at the time it was established in 1971. If the three Nature Positive bills currently before the Parliament were passed, the number of pages of legislation administered by DCCEEW would rise to at least 7004 — a 142 per cent increase from 2021. “This growth in green tape comes at a time when productivity growth remains at near record lows, with economic growth (according to the Federal Budget) not expected to get beyond 2 per cent growth over the next five years,” the report said. “Meanwhile living standards, as measured by per capita growth, have declined for five consecutive quarters, which is the worst on record which goes back to 1972.” IPA is calling for environmental regulatory responsibilities to be handed back to State and Territory governments — a move it said would free business and industry of the regulatory duplication they are currently forced to comply with. Other recommendations in the report included reducing the size and restrictiveness of the EPBC Act to pre-2000 levels, and focusing environmental regulation on “outcomes rather than compliance”. Mr Clark said political leaders must also back the regions, where regulations such as Nature Positive had the biggest impact. “Our regions have so much promise and potential but are being held back by short-sighted policies which risk closing critical industries, and ending well-paid, full-time jobs,” he said.