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Project planning

Business groups back faster EPBC Act reforms

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The news: Business Council of Australia Bran Black has called on the government to speed up the pace of environment law overhauls or risk a slump in major project investment.

The numbers: In a report released today, the BCA said infrastructure investment had peaked at 2.4% of GDP as a spate of nationally significant projects were delivered in 2023-24, but risked falling to 1.5% by 2028 if the next batch of projects were not quickly approved.

The BCA considers a spend of 1.1% of GDP on infrastructure to be a trough.

The context: Black told assembled media this morning that Environment Protection and Biodiversity Consultation (EPBC) Act reforms, due to be tabled in parliament this week, were critical to get major projects planned, approved and delivered to support Australia's growing population.

"What’s critical is that we continue to back planning reform through the EPBC process. Obviously that is a key focus here in Canberra today, and it’s a key focus because it matters. It has been described as the single biggest impediment to the green energy transition — it's major projects right across the economy," he said.

Consistency mattered when getting infrastructure projects planned and delivered on time, he added.

"The pitfalls are pretty clear [without a consistent approach]: you lose skills, people move out of industry, they head overseas. And when it comes time to re-invest, they’ll reacquire those skills, it costs more, it takes time and that slows down delivery of infrastructure."

The report also called for a royal commission into the activities of the Construction, Mining, Forestry and Energy Union, re-establishing reform of the National Construction Code which was suspended, and reintroducing asset recycling, where state assets are sold to private buyers.

What they said: Federal Environment Minister Murray Watt told reporters earlier today that EPBC Act reform was now being treated as urgent. He confirmed the bill would be introduced in one tranche, instead of two as Coalition leader Sussan Ley called for over the weekend.

"We are rejecting this silly idea that has come forward from Sussan Ley and [shadow environment Minister Angie Bell yesterday that we should split the bill and only proceed at this point in time with the pro-business aspects of these reforms," he said.

"Some of the changes that we want to make to business processes and approvals processes can help the improvement by cordoning off certain areas that can't be developed into the future. That's why this this idea about splitting the bill is so mad because it won't actually deliver for the environment or for business."

The sources: Business Council of Australia press conference and report, Environment Minister Murray Watt press conference


By Kate Burgess