Sch 1Intergovernmental Agreement on the Environment

Schedule 1—Intergovernmental Agreement on the Environment AN AGREEMENT made the 1st day of May one thousand nine hundred and ninety two BETWEEN THE COMMONWEALTH OF AUSTRALIA of the first part, THE STATE OF NEW SOUTH WALES of the second part, THE STATE OF VICTORIA of the third part, THE STATE OF QUEENSLAND of the fourth part, THE STATE OF WESTERN AUSTRALIA of the fifth part, THE STATE OF SOUTH AUSTRALIA of the sixth part, THE STATE OF TASMANIA of the seventh part, THE AUSTRALIAN CAPITAL TERRITORY of the eighth part, THE NORTHERN TERRITORY OF AUSTRALIA of the ninth part, THE AUSTRALIAN LOCAL GOVERNMENT ASSOCIATION of the tenth part. WHEREAS On 31 October 1990, Heads of Government of the Commonwealth, States and Territories of Australia, and representatives of Local Government in Australia, meeting at a Special Premiers' Conference held in Brisbane, agreed to develop and conclude an Intergovernmental Agreement on the Environment to provide a mechanism by which to facilitate: • a cooperative national approach to the environment; • a better definition of the roles of the respective governments; • a reduction in the number of disputes between the Commonwealth and the States and Territories on environment issues; • greater certainty of Government and business decision making; and • better environment protection; AND WHEREAS the Parties to this Agreement ACKNOWLEDGE the important role of the Commonwealth and the States in relation to the environment and the contribution the States can make in the development of national and international policies for which the Commonwealth has responsibilities; RECOGNISE that environmental concerns and impacts respect neither physical nor political boundaries and are increasingly taking on interjurisdictional, international and global significance in a way that was not contemplated by those who framed the Australian Constitution; RECOGNISE that the concept of ecologically sustainable development including proper resource accounting provides potential for the integration of environmental and economic considerations in decision making and for balancing the interests of current and future generations; RECOGNISE that it is vital to develop and continue land use programs and co-operative arrangements to achieve sustainable land use and to conserve and improve Australia's biota, and soil and water resources which are basic to the maintenance of essential ecological processes and the production of food, fibre and shelter; ACKNOWLEDGE that the efficiency and effectiveness of administrative and political processes and systems for the development and implementation of environmental policy in a Federal system will be a direct function of:— (i) the extent to which roles and responsibilities of the different levels of Government can be clearly and unambiguously defined; (ii) the extent to which duplication of functions between different levels of Government can be avoided; (iii) the extent to which the total benefits and costs of decisions to the community are explicit and transparent; (iv) the extent to which effective processes are established for co-operation between governments on environmental issues; and (v) the extent to which responsible Governments are clearly accountable to the electorate for the development and implementation of policy; and ACKNOWLEDGE that in the development and implementation of environmental policy it is necessary to accommodate the regional environmental differences which occur within Australia; THE PARTIES AGREE AS FOLLOWS: SECTION 1—APPLICATION AND INTERPRETATION 1.1. "Commonwealth" means the Commonwealth of Australia. 1.2. "States" means a State or Territory named as a party to this Agreement. 1.3. "Local Government" means a Local Government body established by or under a law of a State other than a body the sole or principal function of which is to provide a particular service (such as the supply of electricity or water). 1.4. "Australian Local Government Association" means the Federation of State-wide Local Government Associations of the States, constituted by Local Government bodies. 1.5. A reference in this Agreement to the words "give full faith and credit" to the results of mutually approved or accredited systems, practices, procedures or processes, means that the Commonwealth and the States acting in accordance with the laws in force in their jurisdictions, will accept and rely on the outcomes of that system or the practices, procedures or processes, as the case may be, as a basis for their decision making. In making the decision to accredit a system or practices, procedures or processes, the Commonwealth or the States may make provision for how unforeseeable circumstances or flawed execution may be taken into account. A decision to accept and rely on the outcome does not preclude the Commonwealth or the States taking factors into account in their decision making, other than those dealt with in that system or those practices, procedures or processes. 1.6. A reference to a Ministerial Council in this Agreement is a reference not to the Ministerial Council as such but to the Australian members of that Council acting separately from that Council pursuant to this Agreement. 1.7. Commonwealth responsibilities under this Agreement include ensuring adherence as far as practicable within the External Territories and the Jervis Bay Territory. 1.8. Any matters under this Agreement which are the responsibility of the Norfolk Island Assembly under the Norfolk Island Act 1979 will be referred by the Commonwealth to the Norfolk Island Government for its consideration. 1.9. In relation to each of its external Territories and the Territory of Jervis Bay, the Commonwealth has, subject to paragraphs 1.7 and 1.8 the same responsibilities and interests as each State has in relation to that State under paragraph 2.3. 1.10. Section 2.2.3 of this Agreement should be read subject to the Australian Capital Territory (Planning and Land Management) Act 1988. 1.11. The Commonwealth, the States and the Australian Local Government Association acknowledge that while the Association is a party to this Agreement, it cannot bind local government bodies to observe the terms of this Agreement. However in view of the responsibilities and interests of local government in environmental matters and in recognition of the partnership established between the three levels of government by the Special Premiers Conference process, the Commonwealth and the States have included the Australian Local Government Association as a party to this Agreement and included references in the Agreement to local government and all levels of government. 1.12 The States will consult with and involve Local Government in the application of the principles and the discharge of responsibilities contained in this Agreement to the extent that State statutes and administrative arrangements authorise or delegate responsibilities to Local Government, and in a manner which reflects the concept of partnership between the Commonwealth, State and Local Governments. 1.13 Questions of interpretation of this Agreement are to be raised in the first instance in the appropriate Ministerial Council(s) after consultation by the Chair of the Ministerial Council with the President of the Australian Local Government Association where appropriate. Where these mechanisms do not resolve the interpretation, the matter will be dealt with by reference from the Ministerial Council(s) to First Ministers. SECTION 2—ROLES OF THE PARTIES—RESPONSIBILITIES AND INTERESTS 2.1. RESPONSIBILITIES AND INTERESTS OF ALL PARTIES 2.1.1 The following will guide the parties in defining the roles, responsibilities and interests of all levels of Government in relation to the environment and in particular in determining the content of Schedules to this Agreement. 2.2. RESPONSIBILITIES AND INTERESTS OF THE COMMONWEALTH 2.2.1. The responsibilities and interests of the Commonwealth in safeguarding and accommodating national environmental matters include: (i) matters of foreign policy relating to the environment and, in particular, negotiating and entering into international agreements relating to the environment and ensuring that international obligations relating to the environment are met by Australia; (ii) ensuring that the policies or practices of a State do not result in significant adverse external effects in relation to the environment of another State or the lands or territories of the Commonwealth or maritime areas within Australia's jurisdiction (subject to any existing Commonwealth legislative arrangements in relation to maritime areas). (iii) facilitating the co-operative development of national environmental standards and guidelines as agreed in Schedules to this Agreement. 2.2.2. When considering its responsibilities and interests under paragraph 2.2.1(ii), the Commonwealth will have regard to the role of the States in dealing with significant adverse external effects as determined in 2.5.5 of this Agreement, and any action taken pursuant to 2.5.5. 2.2.3. The Commonwealth has responsibility for the management (including operational policy) of living and non-living resources on land which the Commonwealth owns or which it occupies for its own use. 2.3. RESPONSIBILITIES AND INTERESTS OF THE STATES 2.3.1. Each State will continue to have responsibility for the development and implementation of policy in relation to environmental matters which have no significant effects on matters which are the responsibility of the Commonwealth or any other State. 2.3.2 Each State has responsibility for the policy, legislative and administrative framework within which living and non living resources are managed within the State. 2.3.3 The States have an interest in the development of Australia's position in relation to any proposed international agreements (either bilateral or multilateral) of environmental significance which may impact on the discharge of their responsibilities. 2.3.4 The States have an interest and responsibility to participate in the development of national environmental policies and standards. 2.4. RESPONSIBILITIES AND INTERESTS OF LOCAL GOVERNMENT 2.4.1 Local Government has a responsibility for the development and implementation of locally relevant and applicable environmental policies within its jurisdiction in co-operation with other levels of Government and the local community. 2.4.2 Local Government units have an interest in the environment of their localities and in the environments to which they are linked. 2.4.3 Local Government also has an interest in the development and implementation of regional, Statewide and national policies, programs and mechanisms which affect more than one Local Government unit. 2.5 ACCOMMODATION OF INTERESTS 2.5.1 Between the States and the Commonwealth 2.5.1.1 Where there is a Commonwealth interest in an environmental matter which involves one or more States, that interest will be accommodated as follows: (i) the Commonwealth and the affected States will cooperatively set outcomes or standards and periodically review progress in meeting those standards or achieving those outcomes; or (ii) where outcomes or standards are impractical or inappropriate, the Commonwealth may approve or accredit a State's practices, procedures, and processes; or (iii) where the Commonwealth does not agree that State practices, procedures or processes are appropriate, the Commonwealth and the States concerned will endeavour to agree to modification of those practices, procedures and processes to meet the needs of both the Commonwealth and the States concerned; (iv) where agreement is reached between the Commonwealth and a State under (iii) the Commonwealth will approve or accredit that State practice, procedure or process. 2.5.1.2 Where it has approved or accredited practices, procedures or processes under 2.5.1.1 the Commonwealth will give full faith and credit to the results of such practices, procedures and processes when exercising Commonwealth responsibilities. 2.5.1.3 Where a State considers that its interests can be accommodated by approving or accrediting Commonwealth practices, procedures or processes, or an agreed modified form of those practices, procedures or processes, a State may enter into arrangements with the Commonwealth for that purpose. 2.5.1.4 Where a State has approved or accredited practices, procedures or processes under 2.5.1.3 that State will give full faith and credit to the results of such practices, procedures or processes when exercising State responsibilities. 2.5.1.5 The Commonwealth and the States note that decisions on major environmental issues taken at one level of government may have significant financial implications for other levels of government and agree that consideration will be given to these implications where they are major or outside the normal discharge of legislative or administrative responsibilities of the level of government concerned. 2.5.1.6 Clause 2.5.1.5 applies to each of the Schedules to this Agreement. 2.5.2 International Agreements 2.5.2.1 The parties recognise that the Commonwealth has responsibility for negotiating and entering into international agreements concerning the environment. The Commonwealth agrees to exercise that responsibility having regard to this Agreement and the Principles and Procedures for the Commonwealth-State Consultation on Treaties as agreed from time to time. In particular, the Commonwealth will consult with the States in accordance with the Principles and Procedures, prior to entering into any such international agreements. 2.5.2.2 The Commonwealth will, where a State interest has become apparent pursuant to the Principles and Procedures and subject to the following provisions not being allowed to result in unreasonable delays in the negotiation, joining or implementation of international agreements: (i) notify and consult with the States at the earliest opportunity on any proposals for the development or revision of international agreements which are relevant to Australia and which relate to the environment and will take into account the views of the States in formulating Australian policy, including consultation on issues relating to roles, responsibilities and costs; (ii) when requested, include in appropriate cases, a representative of the States on Australian delegations negotiating international agreements related to the environment. Any such representation will be subject to the approval of the Minister for Foreign Affairs and Trade, and will, unless otherwise agreed, be at the expense of the States; (iii) prior to ratifying or acceding to, approving or accepting any international agreement with environmental significance, consult the States in an effort to secure agreement on the manner in which the obligations incurred should be implemented in Australia, consistent with the roles and responsibilities established pursuant to this Agreement. 2.5.2.3 The States will establish and advise the Commonwealth on the appropriate channels of communication, and persons responsible for consultation, to ensure that the Commonwealth can discharge its international responsibilities in a timely manner. 2.5.2.4 When ratifying, or acceding to, approving or accepting any international agreement with environmental significance, the Commonwealth will consider, on a case by case basis, making the standard Federal Statement on ratification, accession, approval or acceptance. 2.5.3 Mechanisms for Determining Commonwealth Interests 2.5.3.1 Where a State wishes to determine whether or not an environmental matter in that State will involve the interests of the Commonwealth and is not covered by any established processes, that State may request the Commonwealth to indicate whether that matter is a matter of Commonwealth interest. 2.5.3.2 On receipt of a request from a State, the Commonwealth will consult with that State. If the Commonwealth requires further information it will seek such information within six weeks. The Commonwealth will, as soon as possible, or in any event within eight weeks after receipt of the original request, or six weeks after the provision of the further information, as the case may be, notify the State whether or not it considers that the matter does involve Commonwealth interests. If it does involve Commonwealth interests, the Commonwealth will notify all other States of the basis and scope of its interest. 2.5.3.3 Where the Commonwealth wishes to determine whether or not a State agrees that an environmental matter in that State involves the interests of the Commonwealth, it may seek advice from the State concerned and the State and the Commonwealth will, if necessary, enter into discussions on the matter within four weeks after the State receives the request for advice. 2.5.3.4 The Commonwealth and the States recognise the importance of responding to requests made under 2.5.3.1 and 2.5.3.3 in the shortest possible time. 2.5.3.5 Where there is disagreement as to whether or not there is a Commonwealth interest in an environmental matter, the Commonwealth and the States concerned will use their best endeavours to resolve the disagreement at First Minister level. 2.5.4 Duplication of Interests 2.5.4.1 With a view to eliminating functional duplication, wherever the interests of a level of Government have been accommodated, the relevant levels of Government will review the need and justification for retaining any comparable processes or institutions. 2.5.4.2 Where some duplication or overlap of interests between levels of government is unavoidable, the relevant levels of Government will seek clear and distinct liaison and consultative procedures, under mechanisms to be agreed at First Minister level, such as Ministerial Councils, to coordinate and harmonise actions and to avoid disputes. 2.5.4.3 Any review under clause 2.5.4.1 or liaison and consultation procedures under 2.5.4.2 will be guided by the need to work towards simplicity, certainty and transparency in the mechanisms relevant to the development and implementation of environmental policy, consistent with the maintenance of proper environmental protection. 2.5.5 Between the States 2.5.5.1 Where the policies, programs, projects, legislation or regulations of a State may affect the environment of another State or States, the States undertake to provide timely notification to any affected State, and appropriate consultation in relation to those policies, programs, projects, legislation or regulations. 2.5.5.2 Wherever significant adverse external effects on another State are expected or identified, the relevant States will use their best endeavours to establish appropriate mechanisms for ensuring cooperative management. 2.5.5.3 Where the States are directly and cooperatively involved with the management of significant adverse external effects and one or more of the States considers that one or more of the other States are not adequately discharging their management responsibilities, the State or States concerned will endeavour to resolve expeditiously any issue of disagreement or concern. 2.5.5.4 The States will if necessary determine what mechanism or process should be employed to resolve any disagreement or matter of concern, which mechanism or process may include inviting the Commonwealth to assist in the resolution of the matter. 2.5.6 National Interest Notwithstanding the particular responsibilities of the Commonwealth in safeguarding and accommodating national environmental matters, the parties agree that all levels of Government have a responsibility to ensure that matters of national interest are properly taken into account in their activities. SECTION 3—PRINCIPLES OF ENVIRONMENTAL POLICY 3.1 The parties agree that the development and implementation of environmental policy and programs by all levels of Government should be guided by the following considerations and principles. 3.2 The parties consider that the adoption of sound environmental practices and procedures, as a basis for ecologically sustainable development, will benefit both the Australian people and environment, and the international community and environment. This requires the effective integration of economic and environmental considerations in decision-making processes, in order to improve community well-being and to benefit future generations. 3.3 The parties consider that strong, growing and diversified economies (committed to the principles of ecologically sustainable development) can enhance the capacity for environmental protection. In order to achieve sustainable economic development, there is a need for a country's international competitiveness to be maintained and enhanced in an environmentally sound manner. 3.4 Accordingly, the parties agree that environmental considerations will be integrated into Government decision-making processes at all levels by, among other things: (i) ensuring that environmental issues associated with a proposed project, program or policy will be taken into consideration in the decision making process; (ii) ensuring that there is a proper examination of matters which significantly affect the environment; and (iii) ensuring that measures adopted should be cost-effective and not be disproportionate to the significance of the environmental problems being addressed. 3.5 The parties further agree that, in order to promote the above approach, the principles set out below should inform policy making and program implementation. 3.5.1 precautionary principle— Where there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation. In the application of the precautionary principle, public and private decisions should be guided by: (i) careful evaluation to avoid, wherever practicable, serious or irreversible damage to the environment; and (ii) an assessment of the risk-weighted consequences of various options. 3.5.2 intergenerational equity— the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefit of future generations. 3.5.3 conservation of biological diversity and ecological integrity— conservation of biological diversity and ecological integrity should be a fundamental consideration. 3.5.4 improved valuation, pricing and incentive mechanisms— • environmental factors should be included in the valuation of assets and services • polluter pays i.e. those who generate pollution and waste should bear the cost of containment, avoidance, or abatement • the users of goods and services should pay prices based on the full life cycle costs of providing goods and services, including the use of natural resources and assets and the ultimate disposal of any wastes • environment goals, having been established, should be pursued in the most cost effective way, by establishing incentive structures, including market mechanisms, which enable those best placed to maximise benefits and/or minimise costs to develop their own solutions and responses to environmental problems. SECTION 4—IMPLEMENTATION AND APPLICATION OF PRINCIPLES 4.1 The Schedules to this Agreement deal with specific areas of environmental policy and management and form part of this Agreement. The schedules have been prepared and are to be interpreted in accordance with Sections 1, 2 and 3 of this Agreement. 4.2 Nothing in this Agreement will affect any existing intergovernmental agreement between the Commonwealth and a State or States, or between the States, unless alterations or amendments to those agreements are proposed in accordance with any existing review process and/or any review process arising as a result of this Agreement. 4.3 For each particular Schedule included in this Agreement, the Commonwealth and the States undertake to nominate an agency or Ministry to assume primary responsibility within its jurisdiction for the issues covered in the Schedule and to inform the other parties accordingly. 4.4 Where not otherwise provided in the Schedules, existing intergovernmental arrangements will be the primary mechanisms for the cooperative application of the provisions of this Agreement. SECTION 5—REVIEW 5.1 The operation of this Agreement will be reviewed every three years by the presentation of a report from the relevant Ministerial Councils to the First Ministers following consultation by the Chair of the Ministerial Council with the President of the Australian Local Government Association. 5.2 The Agreement may be amended and schedules added by agreement of all First Ministers. Prior to making amendments in relation to matters specified in this Agreement, or developing any draft schedules, that involve local government, First Ministers will consult and seek the agreement of the President of the Australian Local Government Association.