Productivity Commission implementation program: what’s happening now.
The efficiency and effectiveness of regulation, policies and practices of the extractives industry supply chain was formally reviewed by the South Australian Productivity Commission in 2020. The South Australian Government released a response to the review findings on 26 November stating which recommendations were supported and how it would act on them. The government replied to 15 recommendations, 11 in full support and 6 in partial support. An implementation program is underway.
The Department for Energy and Mining has started a project related to recommendations 4.1 and 5.8 which called for improved guidance material for industry to reduce the amount of information requested during the assessment process. The department is engaging with industry and referral agencies with the aim of understanding needs to inform drafting of new guidelines. Draft guidelines and an invitation to provide feedback are scheduled for release in July 2021 with final guidelines released by the end of September 2021.
The extractives supply chain implementation program will help guide the development of initiatives that can contribute to the Energy and Mining Strategy and 20-Year State Infrastructure Strategy in significant ways, including:
- improving the capacity to extract value for money by aligning infrastructure projects with locally sourced materials
- responding through regulatory reform to higher demands for extractives which in turn contributes to valuable community assets, growth and jobs for South Australians
- supporting Growth State objectives to grow investment and exports by improving supply chain efficiencies
- considering planning processes which take into account both extractive mining operations and urban development
- streamlining the regulatory framework to support a whole-of-government approach to maximise competitiveness and productivity for the extractives sector, without compromising other government objectives or regulatory standards.
Background
On 6 February 2020, the South Australian Productivity Commission received a notice from the Premier to undertake a formal review into the efficiency and effectiveness of regulation, policies and practices of the extractives industry supply chain. The terms of reference provided scope for the review to examine the processes and timeframes for approving quarries, costs for business, and land use issues. The strategic development of the industry, supply of extractive inputs into strategic infrastructure, and options to support industry best practice were also considered.
In March 2020, an issues paper was released to generate responses from industry and government. This also began a targeted engagement and information gathering process where the commission sought to meet with key industry players and government departments to understand approval processes and any other issues relevant to the terms of reference.
Release of the draft report started further engagement meetings between the commission, industry and government departments, which allowed the commission to further refine the draft recommendations which were released in the final report.
– Paul Thompson, April 2021
