Business News Releases

HESTA backs Parliamentary call for Australian mining companies to review all their agreements with Traditional Owners

THE INTERIM recommendations of a Parliamentary Inquiry into Juukan Gorge have confirmed HESTA’s view that without an independent review of agreements between mining companies and Traditional Owners, investors cannot be confident this clear financial risk is being appropriately managed.

The Joint Standing Committee on Northern Australia’s Interim Report recommended all mining companies operating in WA conduct independent reviews of their agreements with Traditional Owners, and publicly commit to not using ‘gag orders’ to prevent Traditional Owners protecting their rights.

“The work of this Parliamentary Inquiry has shone an invaluable light on how mining companies are negotiating agreements and engaging with Traditional Owners,” HESTA CEO Debby Blakey said.

“The finding that the tragedy at Juukan Gorge was ‘inevitable’ given current mining industry practices and inadequate legal and regulatory frameworks is extremely concerning to investors.

“Mining companies failing to negotiate fairly and in good faith with Traditional Owners represents a clear systemic risk to investors. Only an industry-wide independent review will provide certainty to investors that this risk is properly managed.”

Ms Blakey said HESTA would continue working with other large global investors to engage with Australian mining companies on how they are responding to the Inquiry’s recommendations.

“The inescapable findings of the Inquiry are that Aboriginal heritage sites remain vulnerable to destruction. It would be unacceptable to investors that boards of mining companies are not actively and transparently seeking to understand their exposure to this risk,” Ms Blakey said.

“After all that has occurred at Rio, the boards of mining companies need to show investors that they have appropriate oversight and effective governance frameworks in place to ensure respectful, fair and ongoing engagement with Traditional Owners.”

The Inquiry’s recommendations that Rio Tinto pay restitution and implement a moratorium on mining across the Juukan Gorge area highlight to companies and investors alike the financial costs from actions that damage a company’s social licence to operate.

Ms Blakey said mining companies could start by publicly stating they will not enforce gag orders in the current agreements, allowing Traditional Owners to raise heritage concerns.

She said HESTA strongly supported the Inquiry’s recommendation that companies with current ‘Section 18’ permissions halt all operations unless it can be established and verified that there is current, free, prior and informed consent obtained from Traditional Owners.

“This Inquiry’s important work is ongoing and represents a significant turning point in how the mining industry and Government manage heritage issues in this country,” Ms Blakey said.

“I’d like to commend all Committee members for their work on this issue during this very difficult time, and particularly Chair Warren Entsch.

“The comprehensive and bipartisan findings of this Inquiry have revealed glaring gaps in the protection of Indigenous Heritage, and we have a responsibility to all Australians and the world to ensure the tragedy of Juukan Gorge never happens again,” Ms Blakey said.

About HESTA

HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has over 870,000 members (more than 80% are women) and manages more than $56 billion in assets invested around the world. As a responsible steward of their members’ retirement savings, HESTA focuses on achieving strong, sustainable, long-term returns while making a positive difference to the world members will retire into. HESTA is the acronym for Health Employees Superannuation Trust Australia.

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Fairer funding and financing of faster rail

A NEW parliamentary report highlights the importance of faster rail investment in Australia’s economic recovery and proposes a fairer and more sustainable funding approach.

John Alexander OAM MP, Chair of the House of Representatives Infrastructure, Transport and Cities Committee, last month tabled the report for the committee’s inquiry into options for financing faster rail.

"Before COVID-19, this committee saw funding faster rail using value capture as an opportunity. Today, it’s an imperative," Mr Alexander said.

Value capture is a means by which governments can more fairly fund part, or all, of the costs of rail infrastructure projects and provide relief for taxpayers now and in the future, the report said.

"When government funded infrastructure is clearly linked to significant property value uplifts, or rezoning, governments have a duty to taxpayers to secure just, equitable and fair portions of these increases in property values," Mr Alexander said.

The report makes three recommendations which focus on value capture and value sharing, addressing the missed opportunities where property values rise dramatically as a result of taxpayer funded rail infrastructure.

"During the inquiry the committee considered the issue of fairness: Is it fair for the taxpayer to fund infrastructure that creates great wealth for landowners, speculators and developers? Should the taxpayer receive a return when their money is invested? Is it fair that we leave future generations to pay for our spending today?" Mr Alexander said.

The report builds on the committee’s work in the 45th Parliament. In two previous reports, the committee recommended a value capture model be designed and utilised in Australia, with the Australian Government, state and territory, and locals governments working together in a coordinated approach to value capture.

The report and further information about the inquiry is available on the committee’s website.

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Regional freight jobs threatened by $7 per hour foreign-flagged ships

A TRANSPORT Department proposal to allow foreign-flagged ships to compete for freight transport work will threatens the viability of the interstate rail freight sector and put thousands of jobs at risk in regional Australia.

The Rail Tram and Bus Union (RTBU) has blown the whistle on the proposal, which was quietly recommended in a recent departmental discussion paper.

The discussion paper proposed a series of reforms that would lead to greater use of overseas-based ships for the transport of domestic freight, including: Removal of five-voyage minimum for temporary licences; automatic approval of temporary licence applications where there is no approved general licence route/cargo nomination; and removal of tolerance limits for temporary licence voyages for routes or cargo types where there are no general licence holder route/cargo nominations.

RTBU national secretary, Mark Diamond, called for the Deputy Prime Minister and Transport Minister, Michael McCormack, to quash the reforms and pull his department into line.

“These reforms will decimate jobs, many of which are concentrated in regional Australia in towns including Kalgoorlie, Port Augusta, Albury, Parkes, Narrabri and Moree," Mr Diamond said.

“Up to 10,000 direct and indirect jobs are at risk if foreign-flagged vessels with third world labour practices are allowed to undercut Australian conditions. This will be a sucker punch to Australian workers.

“The trade union movement has repeatedly exposed exploitation on flag of convenience vessels. It is astounding to think the Commonwealth Department of Transport would consider giving these shonks a stronger foothold in the Australian market.

“This proposal would drain money from the Australian economy at precisely the worst time. Foreign owned shipping operators do not pay Australian wages or Australian taxes, and do not operate to Australian safety standards.  Their profits are repatriated overseas.

“We would also likely see an increase to rail freight pricing due to the reduced rail volumes. Freight rail requires critical mass in order to recover its fixed operational costs," Mr Diamond said.

“The Deputy Prime Minister has made much of his government’s Inland Rail project, describing it as a 1,700km ‘corridor of commerce’ that will underpin regional economies.

“But now his own department could turn that project into a massive white elephant."

RTBU submission to the Federal Government.

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Never Again report on Juukan Gorge destruction

THE Parliament's Parliament’s Northern Australia Committee Chair, Warren Entsch, has made it clear about the ramifications of the an interim report of the inquiry into the destruction of Indigenous heritage sites at Juukan Gorge, WA.

"Never again can we allow the destruction, the devastation and the vandalism of cultural sites as has occurred with the Juukan Gorge—never again!" he said.

The report, simply titled Never Again, highlights the disparity in power between Indigenous peoples and industry in the protection of Indigenous heritage, and the serious failings of legislation designed to protect Indigenous heritage and promote native title. Mr Entsch noted there were a lot of factors that contributed to the destruction of the Juukan Gorge shelters.

"The PKKP (Puutu Kunti Kurrama and Pinikura peoples) faced a perfect storm, with no support or protection from anywhere," Mr Entsch said. "They were let down by Rio Tinto, the Western Australian Government, the Australian Government, their own lawyers, and Native Title law.

"In making these recommendations today, the Committee and I want to break that cycle. The neglect of the PKKP people stops here."

The report makes seven recommendations focusing on improving relations between industry and Aboriginal and Torres Strait Islander peoples and improving the legislative framework protecting Indigenous heritage.

Among other things, it urges Rio Tinto to commit to:

  • A moratorium on mining in the Juukan Gorge area;
  • Rehabilitation of the Juukan Gorge site;
  • A review of all agreements with Traditional Owners;
  • A stay of all actions under s.18 of the Aboriginal Heritage Act 1972;
  • A voluntary moratorium on s.18 applications;
  • A return of all artefacts to the Puutu Kunti Kurrama and Pinikura peoples.

Other sections of the mining industry are urged to make similar commitments, while the Western Australian Government is urged to pursue urgent reform of current State laws. The Committee also recommended on urgent review of the Aboriginal and Torres Strait Island Heritage Protection Act 1984, and changes to its application and administration in the meantime.

Mr Entsch emphasised that the report was an interim report and that the inquiry would continue.

"The scale of the inquiry, the sheer volume of evidence that the Committee has received, and continues to receive, and the serious constraints posed by COVID-19, means that the Committee felt unable to do full justice to the inquiry in so short a time,": Mr Entsch said.

"As a result, the Committee has chosen to table this interim report addressing its findings to date and setting forth recommendations which will be built upon next year (2021)."

A copy of the interim report can be obtained from the Committee’s website or from the secretariat on (02) 6277 4162.

Further details of the inquiry, including terms of reference, can be found on the Committee’s website.

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Electoral reforms needed in Australia: report

OPTIONAL preferential voting, the introduction of the Robson Rotation for House of Representatives ballot papers and an entirely new Electoral Act have all been recommended by the Parliament’s Electoral Matters Committee.

Tabling a report into the 2019 Federal Election, Committee Chair Senator James McGrath said Australia’s reputation as a successful democracy was upheld by the delivery of a transparent and robust election outcome.

“Australia is one of the oldest most successful democracies in the world,” Senator McGrath said.

“But that has not come through chance, or good luck - our democracy works because over a century, generations of people, paid and unpaid, have worked to make it so through blood, sweat and tears.

“Our democracy works because countless Australians have made the ultimate sacrifice to protect the freedoms inherent in democracy.

“Our elections are a fundamental cornerstone to our democracy and they should not only be fair, open and transparent, they should be seen to be so.

“As technology evolves and society changes, we must ensure our electoral processes are robust and voters are empowered.

“There is action that can be taken to increase fairness and protect our electoral system. The Committee’s recommendations will empower the voter, increase transparency, establish further safeguards, and create consistency.”

The Committee recommended:

  • To maximise voter choice compulsory preferential voting should be replaced by optional preferential voting.
  • To increase fairness and to reduce the luck of the ballot draw while minimising the so-called donkey vote, the Robson Rotation of candidates on the ballot paper should be introduced for the House of Representatives in tandem.
  • Voter ID should be introduced for all voters with savings measures similar to provisional votes. Likewise, all electoral enrolments, whether new or changes should require proof of ID.
  • The pre poll voting period should be reduced from three weeks to a maximum of two weeks. Voters who choose to vote early should be required to explain why they are unable to attend on the day rather than it being a matter of convenience.
  • The Electoral Act should be completely rewritten to make it fit for purpose. A new offence of political violence, both physical and verbal should be introduced.
  • The rules governing the use of Party names should be tightened to restrict the use of existing party names by new political entrants.

“Parliament should also commence a conversation about whether the Parliament should be increased in size,” Senator McGrath said.

“Part of the dialogue should consider whether the nexus between the Senate and the House of Representatives should be reformed.”

“In addition, consideration should be given to changing the term of the House of Representatives from three years to four years.”

Full report here.

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