Meetings with the new Minister for Energy and Resources, the Hon Russell Northe

DR ELIZABETH GIBSON, General Manager of CMPA reports on the meeting with Minister for Energy and Resources, the Hon Russell Northe.

The new Minister for Energy and resources has been active in meeting with the extractive industry. In May he met with John Mawson (Chairperson), Ron Kerr (Hon. CEO) and Dr Elizabeth Gibson. The Minister was introduced to the CMPA and its purpose. The CMPA welcomed the Government response to the EDIC Inquiry that has focused on the extractive industry and acknowledges the work that is in progress to implement recommendations. However, CMPA still has some concerns and feels the reforms could be taken further. According to the Victorian WorkCover Authority in 2012/13 there were currently 500 operating quarries of which 2/3 are small businesses (note: there is no recent publicly available data from DSDBI on the industry). A number of issues were raised with the Minister as follows:

1.Proposed new fees and fee increases

Recommendations

• The Regulations should be introduced after the changes have been implemented.
• The formula should be adjusted to make it more equitable for smaller operators.
• Key performance indicators should be set for the Earth resources unit.

2.Proposed draft risk based Work Plan form

Recommendations

• DSDBI demonstrates the guiding principles are met by the proposed draft risk-based Work Plan form prior to its acceptance.
• The time frame for completion be lengthened to allow adequate industry input.
• DSDBI establish a core group of experienced and qualified persons to assess work plans to ensure consistency in the endorsement and approvals process.

3.Extractive Sector Rehabilitation Bonds

Recommendations

• The Earth Resources Reform Steering Committee (DSDBI) is overseeing a review into the rehabilitation bonds which, whilst worthwhile, should also consider the recommendations as outlined in CMPA “the Way Forward – reform of the rehabilitation Bond System” (2013).
• Remove the unreasonable responsibility on the Minister by removing section 83(1)(c) from the MRSD Act.
• Ensure the remaining reserves value and end value of the land is incorporated into the Bond Formula.
• Ensure the Bond Formula only addresses “safe and stable” issues.

At the end of the meeting the Minister was invited to visit some quarries and he readily accepted.

The Minister and Lea Bacon (Senior Adviser) visited on (13 June 2014) K & R J Matthews Quarries (Rob Matthews) and Latrobe valley Sands (Chris Blackwood) and met with Garry Cranny (Deputy Chairperson), Ron Kerr and Elizabeth Gibson.

At K & R J Matthews, a demonstration was given of the state of the art monitoring/plant management system. Rob Matthews raised issues with Work Plans and rehabilitation bonds. The Minister then travelled to La trobe Valley Sands where he met with Chris Blackwood. The Minister
demonstrated an interest in the natural resources within the area. Chris Blackwood raised a number of issues with the Minister which he followed through on and resolved.

The Minister was able to hear and see firsthand the constraints currently facing the industry. These constraints will impact on growth in Victoria through spiraling costs attributable to scarcity of accessible and affordable construction materials. CMPA looks forward to further interaction with the Minister.

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