Uncertainties in WA Approvals

Clearly identifying the cost in terms of time and dollars of a Work Authority application is something that is not widely done, however a number of sites have volunteered to do just that with the CMPA, as reported by SARAH ANDREW, CMPA Project Manager.

DESPITE repeated attempts by Governments of either persuasion at Federal or state levels to reduce red tape there has nevertheless been an avalanche of new regulatory imposts on the business sector generally and the extractive industry specifically over recent years.

These increased regulatory burdens with their associated costs also come at a time when Government and the community is calling for increased exports to balance the country’s terms of trade.

The business sector continues to argue for the adoption of best practice regulation which meets clearly defined objectives in ways that support least-cost smooth operation of markets and the economy. The objectives should be both clear and unambiguous but at the same time readily measured.

Best practice regulation will include methodologies for accurately assessing compliance. Clear specification of the problem will lead to more accurately targeted responses. This may lead to a focus on outcomes rather than prescribing solutions.

In order to ensure continued economic prosperity there should be an ongoing driver to reduce regulatory compliance costs. The State Government’s program of sun-setting of Regulations was originally designed to provide the opportunity to do this yet it is not clear at all whether or not this has been effective.

Regulation in the extractive industry can by its nature involve the need for large-scale capital investment for safety or environmental compliance. These costs, and their associated opportunity costs, must also be calculated and assessed against the benefits before the proposed regulation is allowed to be implemented. Compliance costs are also barriers to entry to the industry.

Peter Day Consulting has been commissioned by the Construction Material Processors Association (CMPA) to conduct a review of the regulatory changes and costs involved in making an application for a Work Authority under the Extractive Industries Development Act 1995.

The purpose of the review is to:

• Establish whether there has been a change in the time and cost of the process to obtain a Work Authority over the last 10 years; and
• Establish whether there has been a net increase in the range of Victorian regulatory approvals necessary in submitting an application for a Work Authority.

The review will then be used to inform regulatory authorities at Federal, State or local Government levels and other parties interested in minimising overhead compliance costs for business to apply pressure for reform.

To date, nine businesses have expressed a willingness to participate in the process and any other interested businesses (CMPA Members or not) are recommended to contact Peter Day Consulting for further information.

By email (preferred) to: pdc@senet.com.au
By mail to:
Peter Day
PDC
PO Box 665
Blackwood, SA 5051

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