What’s News? (Issue 37)

Work Authority Annual Returns

Summary of 2007

Last year, the Department of Primary Industries (DPI) issued the annual production, sales and value of stone returns (“Schedule 4 Return”) to be completed by Work Authority (WA) holders in June 2007. Of the over 860 Work Authorities, 187 were issued with infringement notices for late return of “Schedule 4 Returns”.

Following successful appeals, withdrawn infringements and other issues, 128 were upheld. The penalty for each of these fines was $551 (five penalty units) resulting in excess of $70,000 worth of fines.

Offering Choice for the Method of Submitting Annual Returns

The process of submitting annual returns in the manual form that is presently being utilised by the DPI needs to be brought into the 21st century.

At what point in time is the industry going to be allowed to provide the data online as it does presently with its BAS payments, tax returns and other legal requirements?

Removing Witness Requirements on Annual Returns

Completion of annual returns and their witnessing is, for many Members, creating a situation where they are required to leave their site during production hours and travel long distances to carry out the annual ritual of having their returns witnessed.

I am not saying that the integrity of the information should not be guaranteed by signing a declaration, what I am saying is that I don’t see the reason why the information has to be provided to my local chemist or doctor as nominated witnesses for viewing, just so that they can countersign, proving that I am the person who provided the information.

I am not subjected to this inconvenience or humiliating process when making a BAS payment or filling out a tax return.

This is not just another business impediment; it is also leaving employees exposed and confidential information is being seen by people who do not need to view it. It is an age old issue which has been brought forward by many Members in the past and needs the immediate attention of the DPI.

Looking After Our Industry’s Future

Support of DPI Resources Study

In November 2007, WA holders throughout Victoria were asked to provide information on resource life of extractive industry reserves to the DPI. The study has been unable to be completed as not enough WA holders were willing to participate. How can we as an industry expect government to understand and address our industry’s concerns, if as an industry we are unwilling to participate in data collection which is attempting to establish specific information pertaining to the accessible resources remaining for our community’s use?

As an industry, we are required to supply annual returns on the tonnage of materials processed and sold with their unit rates. The supplying of this information is underpinned by the fact that we have faith in our regulator’s ability to ensure the confidentiality of this information.

Excuses pertaining to confidentiality, company policy or the lack of time must be overridden for the good of our industry. The available resources that are left for our community’s needs must be understood, so that policies for future resource access can be planned well in advance of need.

As quarry owners we support competition when it comes to the purchasing of goods and services. As community members we are expecting government to ensure that our carbon footprint is minimal, that there are a range of providers in the market to ensure competitive pricing, and that there are appropriate reserves of quality resources both available and accessible for maintenance of our lifestyle and new capital works into the next 100 years.

Without quality information from our industry, ill-informed planning outcomes, shortages in supply, sterilisation of valuable assets, increased costs and increased environmental impacts will inevitably be our legacy.

Inevitably, government will be left to explain why there is not enough rock left to build a new power plant in the Loy Yang Valley; why we are to manufacture sands for the Melbourne market; why we have to deliver rock to the Melbourne market at ever increasing cartage distances; and why we are importing our raw materials.

Reports by Honorary CEO.

The Secretariat has refocused its efforts over the last two months with more time being invested in understanding our Members.

This has seen both Sarah and Briony undertake a number of site visits and contact many Members personally on items of interest.

We’ve seen a reasonable number participate in the Drilling Workshop and hope the see a similar number at the Mobile Plant Stability Workshops in April.

Following are reports on a number of activities and issues the CMPA are pursuing on Member’s behalf.

Royalty, Work Plan and Hydrocarbon Audits

The DPI will be conducting audits on accuracy of royalty returns, compliance to Work Plans and hydrocarbon storage in coming months.

Progress of the EIDA Review

The review of the EIDA has been completed, with the recommendation likely to be that the Extractive Industry Development Act be merged into the Mineral Resources (Sustainable Development) Act.

A decision is yet to be formally released, however the CMPA has conducted a brief investigation into the impact this would have on Members and will be outlining the issues faced by industry to the Minister.

Annual Statement of Government Intentions

The Premier recently released its ‘Annual Statement of Government Intentions’ which outlines the Government’s legislative objectives for the upcoming year.

Of particular interest to Members is:

• Resources Industry Legislation Amendment Bill which will include revisions to the EIDA & Minerals Resources Act
• Planning and Environment Bill – which will revise the Planning and Environment Act

DPI Investigation of State Resources

Department of Primary Industries – GeoScience is conducting this investigation into the state’s resources, however the investigation has been limited to a 75km radius.

Results of this investigation are yet to be released, however it is understood that there has not been sufficient data provided.

Stakeholders Regulatory Forum

The CMPA raised the following issues at the 13 March Stakeholders Regulatory Forum:

• Status of the EIDA Review and the Resources Survey (outlined above)
• Discussion on the Rehabilitation Bond Guidelines
• Impact of the EPA PEM document
• Clearer presentation of data for Work Plan progression

Guidelines for Establishment and Management of Rehabilitation Bonds

The Department of Primary Industries (DPI) has released their electronic bond calculator for both the mining and extractive industry. The guidelines (and associated worksheets) have been developed to enable both industry sectors to undertake self assessments of their rehabilitation bonds.

The guideline doesn’t look at how the figures should be extracted; rather it looks at overarching principles such as:

• Guidance for self assessment
• How the guidelines will be implemented
• Review period of bonds
• Process for approving rehabilitation bond set
• Financial impacts
• Bond return
• Standard bonds for simple operations
• Infrastructure removal
• Setting of rehabilitation rates
• Management and contingency costs

The associated spreadsheets allow the operator to work through their site to establish their rehabilitation bond.

The CMPA has raised several concerns at the recent Stakeholders Forum which will be followed up with senior DPI representatives.

Protocol for Environmental Management (Mining and Extractive)

As reported in the last issue, the Environment Protection Authority (EPA) have released their long awaited PEM document. The CMPA is seeking further information on the impact this will have upon the industry.

Move to WorkSafe

The WorkSafe Construction and Utilities Program have commenced managing OHS in the extractive industries. There will be 300 site visits before the end of financial year.

The CMPA has been included on the Victorian Congress of Employer Associations which means we have a single contact that represents our (and others) needs to WorkSafe on high level matters.

Earth Resources Tripartite Safety Forum

On 27 February, the CMPA attended the first ERTS Forum hosted by WorkSafe. Of particular importance is the Minerals Council’s suggestion that the extractive industry be moved out of this forum and be incorporated into general construction. This will reduce the extractive industry’s links to mining and result in less formal contact with WorkSafe.

After much consideration the CMPA will be seeking to remain a member of the forum into the future.

Impact of Construction Chapter — OHS Regulations

On 1 July, the Construction Chapter of the OHS Regulations will be enacted.

Impact of the Native Vegetation Framework

The CMPA agrees with the CCAA in that there is no clear understanding of the potential impact of the Native Vegetation Framework held by either industry or our regulators. Considering the controls provided for under the Extractive Industry Development Act and the negligible impact Member’s operations have upon native vegetation across the state, it seems valuable resources and time are being wasted.

The CCAA recently approached the CMPA for support on a study into native vegetation to which the CMPA felt that there were a number of points requiring consideration before proceeding, these included:

• Ensuring regulatory and industry participation
• Separation of the two industry studies being ‘native vegetation’ and ‘estimation of available hard rock, sand and gravel resources’

CMPA Secretariat Available to Assist Members

Have you got a few of those ‘odd jobs’ lying around that just aren’t getting done? Do you need help with the administrative side of your business? Do you have documents, procedures or publications that you need developed but just don’t have the time? The CMPA can help!

In an attempt to expand the variety of services the CMPA offers its Members, the Secretariat would like to offer its skills to assist your business.

Both Briony Rowley and Sarah Andrew will be available to assist your business. It may be filling in for an absent staff member or doing a particular job.

Particular skills held include:

• Document design and templates
• Website content development
• Filing and archiving system set up (electronic/hard copy)
• Typing
• Event facilitation and coordination
• Training needs analysis
• Developing/reviewing systems (i.e. safety, education)

As Sarah and Briony are still responsible for running the Secretariat, there is limited availability for this service. Please contact the CMPA for further information and pricing.

CMPA AGM and Annual Dinner

The 2008 CMPA Annual General Meeting and Dinner is to be held on Saturday 16 August at Bayview on the Park in Melbourne. With a great location, plenty of entertainment, on site accommodation and weekend activities, this event is not to be missed.

The Annual General Meeting will include the election of a new Chairperson along with a number of new committee members. Nominations for positions must be received well in advance of the meeting, with ballot slips being distributed by the Secretariat three weeks prior to the event. No nominations will be accepted on the evening and all nominees will be advised of their nomination prior to the meeting – so no, you cannot be dobbed in unexpectedly for a position during the meeting!

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