Almost half of businesses have no faith that Canberra bureaucrats can handle an environmental approvals system and would consider ditching major projects if timelines drag out any longer, a major survey has found.
The Chamber of Commerce and Industry WA last month quizzed 954 businesses on their attitudes towards the Federal Government’s proposed Nature Positive policy, which the business group has decried as a threat to national infrastructure investment and a path to further cost blow-outs.
“Businesses are already tangled in green tape and this proposal to add more hoops for them to jump through will undoubtedly lead to even longer timeframes to get projects off the ground,” CCIWA chief economist Aaron Morey said.
“For major projects, every day an approval is delayed is money down the drain, and that sends a worrying message to overseas investors who want to develop projects in Australia.”
He claimed it was the mining State of WA that stood to lose most from the reforms.
The survey found resource companies were the most likely to pull back investment in a project if there was any more “duplication or lengthening” of approval timeframes.
“Approvals are already taking too long, but instead of working to address green tape like the WA government, the Federal Government is pushing in the opposite direction.”
It comes as the Federal Government takes submissions for the proposed Nature Positive policy in an effort to overhaul the Environment Protection and Biodiversity Conservation Act, with CCIWA among the respondents.
The plan, which would establish a national independent environmental approvals body as well as existing offices at a State level among other items, has so far drawn a frosty reception from business and industry groups.
Part of the proposed reforms would include a so-called “climate trigger”, which CCIWA was concerned would allow the Federal Government to intervene in projects if they breached carbon footprint specs.
Some 59 per cent of businesses said they were “very” or “somewhat concerned” about the Government having such a power when posed the question by the chamber.
But the majority (60 per cent) were supportive of the Federal Environment Minister, the office held by Tanya Plibersek, being accountable for deciding whether major projects should proceed.
Only 22 per cent said they would have faith in an approvals system overseen by independent civil servants in Canberra, and 34 per cent were unsure.
Mr Morey said CCIWA was worried about how the proposed body would operate and that it would make decisions “purely on environmental grounds”.
“Nation-shaping infrastructure like new exploration in critical minerals, transmission lines to deliver clean energy to the grid, or residential developments to ease housing shortages could be blocked, with no option for the minister of the day to step in and make a case,” he threatened.
“We’re also deeply concerned about the overall governance of the new body, which would include a CEO that can only be sacked by the Governor-General.”
