OIL REFINERY AGREEMENT RATIFICATION ACT REPEAL BILL 2002 Second Reading Speech

Northern Territory Second Reading Speeches

OIL REFINERY AGREEMENT RATIFICATION ACT REPEAL BILL 2002

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill be now read a second time.

The purpose of this bill is to repeal Oil Refinery Agreement Ratification Act. The focus of the Act is now largely historical in nature and ratifies an agreement between the Northern Territory and the Mereenie Joint Venture partners about possible construction of a major oil refinery in Central Australia to process local crude oil. A small oil refinery has been operating for well over a decade in Alice Springs, but the much larger scale refinery, as contemplated by the agreement, has always been viewed as impractical or uneconomic.

You would be aware that, in accordance with National Competition Policy, all governments are committed to conducting competition reviews of legislation and identifying provisions with potentially anti-competitive restrictions. Where necessary, legislation must be amended or repealed to remove the restrictive provisions, unless retention of the restrictive provisions can be justified as being in the public interest and the objectives of the legislation cannot be met without such restrictions.

A competition policy legislative review was conducted of the Oil Refinery Ratification Agreement Act and found that its provisions are restrictive and anti-competitive. The review recommended repeal of the Act and the report was endorsed by the former government. Continued retention of this restricted legislation is considered incompatible with competition principles, and difficult to justify in terms of competition policy.

It’s also generally acknowledged that the act has outlived its usefulness, especially given the very limited known onshore petroleum reserves of Central Australia. The government is satisfied that this legislation is no longer necessary and, indeed, inappropriate as reflected in the recommendation of the competition review of the act, and should be immediately repealed.

Discussions will be conducted with the Mereenie joint venture partners over the future of the agreement that this act ratifies. The intention is to cancel the agreements in the near future, following discussions with the Mereenie joint partners; their initial response is one of support for the government’s intention.

With this repeal bill, the government is demonstrating its commitment to the principles of competition policy, and the reform of the statue book to avoid retaining unnecessary or inappropriate legislative restrictions on Territory business wherever possible. I commend the bill to honourable members.

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