FROM THE CMPA SECRETARIAT (Issue 59)

General Manager makes the comment – It’s time for action!

BRUCE MCCLURE, General Manager CMPA comments on the number of submissions provided to various bodies in Victoria.

GOVERNMENTS of all persuasions like enquiries, they like to be seen consulting with the community, they like to be seen to be looking at ways of improving the society that we live in. Yet there comes a time when we as a community need to see results, we need to see improvements. In the case of the extractive industry, the CMPA has been consistently discussing with the government departments ways of improving the mechanisms used to regulate the industry.

The CMPA has consistently pointed out during reviews major problems that will or have arisen from poorly thought out legislation. These are not limited to our own act, native vegetation, cultural heritage and planning policies and consequently are resulting in the sterilisation of extractive sites which will have major repercussions on Victoria’s economy over the next fifteen to twenty years. One such issue that all members would be aware of is that of rehabilitation bonds.

Since its inception, the CMPA has also openly stated that the current method of assessing and funding rehabilitation bonds is without foundation and not based on any historical problems, but simply what might happen, placing a major restraint on Member’s business finances.

A quick review of our records shows that over the last five years from June 2006 to June 2011, the CMPA has reviewed, commented or provided a submission on 65 occasions to various bodies in Victoria.

One presumes that most of these submissions have been considered by the relevant bodies, but there is very little to suggest this is the case when subsequent reports, recommendations were submitted to government without any reference or consideration of the comments from stakeholder groups like the CMPA.

There had been a trend developing in recent years where less and less of the concerns and issues raised by industry groups like the CMPA are being considered. I do not deny that there has been the opportunity to make comments, to suggest possible improvements, to be part of the consultation process that governments like but unfortunately there has been very little evidence to show that the regulations and planning imposed has actually resulted in any improvements to process within the extractives industry.

This is underpinned by the fact that over the last 5 years, only two Extractive Industry Work Authorities with rehabilitation bonds greater than $50,000 have been issued where over the same time in excess of 240 million tonnes of product has been consumed.

We have a new state government in Victoria who has been in power just on twelve months. The CMPA discussed its concerns, especially the impacts on family businesses, with shadow ministers well in advance of the election in November 2010 but has been unavailable to discuss our members concerns with our minister since the new government election, despite a number of requests for a meeting.

At present there is no clear evidence of policy change or improvement to the many restrictions on small family business in our industry in Victoria.

These concerns are not simply to aid the financial viability of the industry but are also being brought forward because of the concern that CMPA members have for the future of this state, for the future of their children whom most hope will be able to carry on in the industry. It is also about having an industry where there are fewer restrictions on entry for people who would like to develop an extractive industry business but cannot because of the costs, the departmental restrictions and the red tape.

It is time to see action; it is time to see decisions being made that will ensure that the extractives industry remains a viable component of Victoria’s economy.

LAND TAX ON QUARRY SITES

The Secretariat was recently advised by a CMPA member that it appears that his quarry site may be subject to land tax imposed by the Victorian State Revenue Office.

In this instance the land tax would amount to approximately $44,000 per year and with at least a life of 50 years left in the quarry, this amounts to a considerable sum each year for the foreseeable future.

Discussions with CJ Ham & Murray Pty Ltd have indicated that they were aware that other quarries were being considered for land tax payments.

CJ Ham & Murray Pty Ltd has done some research on land tax implications on quarry sites, the exemptions that may apply etc and these details will be made available to the CMPA for further investigation.

The CMPA will further investigate this issue and will bring its findings back to all members in a future issue of the Sand & Stone magazine.

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