FROM THE CMPA SECRETARIAT (Issue 46)

Regulation must not be Oppressive

CMPA Honorary CEO, RON KERR, reflects on the burden of red tape on the industry.

IN recent days, we have perhaps witnessed signs of common sense with respect to the winding back of regulation.

As a result of the Black Saturday bush fires, the compliance requirements of native vegetation have been softened allowing the removal of native vegetation around homes. While this move is welcome it is seemingly difficult to stem or reverse regulatory change until a significant event, such as Black Saturday, affects the wider community and brings attention to what is essentially bad policy.

Time and again those with personal experience warn of the need for caution before change is made to legislation. Time and again we seek evidence of the need for change and evidence of the improved social outcomes that will result. Time and again we are not presented quantifiable evidence of the need for change.

Presently our industry sector is being forced to pick up new regulatory burdens under the Minerals Resources (Sustainable Development) Act while at the same time industry experience and wisdom is crying out for caution.

The concerns of the experienced and the affected don’t seem to be given the respect they deserve. It is as though the regulator has an outcome in mind before it consults.

At the core of any new regulation should be the removal of risk. If new regulation creates an environment where future generations are going to be personally and financially impacted, is it tolerable to enforce these regulations?

For example, is it acceptable that future generations are not able to access affordable housing or be supported with an appropriate levels of public infrastructure as construction material resources are sterilised without regard and their costs consequently accelerate?

This sterilising of resources is the outcome of the CMPA’s report ‘An Unsustainable Future – Th e Prohibitive Costs of Securing Extractive Industry Access in Victoria’.

Is there any reasonable explanation to this observation that can be substantiated with evidence of need, be it based on risk or previous historical failure?

If future communities can only participate and not own capital because of the expansion of complex bureaucratic barriers social inequality is being enshrined in bad regulation.

The inevitable outcome of this is that large numbers of people are forced into circumstances where they are unable to control their destiny. Are we not witnessing the act of exclusion, and is this then not oppression by regulation.

Executive Summary from the CMPA Report, An Unsustainable Future:

The Prohibitive Costs of Securing Extractive Industry Access in Victoria This report highlights the high sovereign risk in Victoria due to the slow, costly, repetitive, uncertain approvals process with ever increasing regulatory burdens from the new native vegetation and heritage requirements for new or extended quarry operations. This is leading to the reduced investment in new quarry operations during a time of increasing demand. This has the potential to limit future supply and increase product cost which will lead to the increased cost of public infrastructure projects, decreased housing affordability and increased environmental footprint of transport to the market.

The community will pay the price for increased regulatory burden.

This market failure requires Government action now.

Government also needs to recognise its stewardship role of the valuable
construction material resource to ensure they are not sterilised by alternative values in the future.

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In light of the current economic climate and the CMPA’s need to recover compilation, printing and distribution costs, future editions of Sand & Stone will only be sent free of charge to CMPA Members.

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Sand & Stone is the primary means of keeping Members informed of the CMPA’s activities, latest legislative impacts relevant to their businesses, and innovative solutions to business issues.

Future edition of Sand & Stone will incorporate articles on the Medical Agreement and Transport Contract.

Membership provides industry suppliers with a clear advantage in accessing the Victorian construction materials industry. At the same time, the CMPA encourages Members to support those businesses that are committed to the industry’s success – businesses that are willing to financially support the Association.

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