Australian businesses warn of investment pullback if faced with further approval delays

Australian businesses have sounded the alarm on the federal government’s radical environmental approvals reforms, with a survey revealing almost half would be less likely to invest in major projects if approval timelines were lengthened.

A Chamber of Commerce and Industry of Western Australia (CCIWA) survey found that 45% of companies would not invest in a project if there was further duplication or lengthening of approval timeframes.

CCIWA has sent a submission to a senate committee examining a bill to establish a national Environmental Protection Authority (EPA).

Range of participants

More than 950 businesses from a range of sectors across Australia participated in the survey conducted by an independent third-party provider on behalf of the CCIWA.

Around 29% of respondents said they would not be deterred, and 26% were unsure.

In its EPA submission, the CCIWA highlighted its concerns that the new body would duplicate approvals at the state level, leading to delays and cost blow-outs for major projects.

WA most at risk

CCIWA chief economist Aaron Morey said WA had the most to lose from the proposed reforms, with the survey finding that businesses in the resources sector (53%) were most likely to reconsider project investment followed by those in agriculture (49%) and construction (47%).

“Businesses are already tangled in green tape, and this proposal to add more hoops for them to jump through will undoubtedly lead to even longer timeframes to get projects off the ground,” Mr Morey said.

“For major projects, every day an approval is delayed is money down the drain and that sends a worrying message to overseas investors who want to develop projects in Australia.”

Opposite direction

Mr Morey said approvals are already taking too long but, instead of working to address green tape like the WA government, the federal government is pushing in the opposite direction.

Only roughly one in five Australian businesses said they would have confidence in an environmental approvals system run by independent bureaucrats in Canberra, with 44% indicating they would not have confidence and 34% unsure.

The survey also highlighted considerable unease about the proposed lack of ministerial oversight for decisions made by the national EPA.

Under the proposed legislation, the EPA executive body would have the power to approve or reject a proposal on environmental grounds only, leaving the environment minister unable to review the EPA’s approval decision once it has been made.