PRESS RELEASE P.R. No. 84/55 CANBERRA

4 APRIL 1984

THE SENATE

DEMOCRATS INTRODUCE BILL TO PROHIBIT

NUCLEAR INDUSTRY IN AUSTRALIA

Senator Don Chipp, Parliamentary Leader of the Australian

Democrats,  today introduced the Customs (Prohibition of

Importation of Nuclear Hardware) Bill 1984, designed to

prevent a nuclear industry being established in Australia.

"The only way to guarantee Australia never develops nuclear

bombs,  is to ensure that we do not acquire the facilities and

technology that would be necessary to build nuclear bombs.

The Democrats' bill would guarantee we never acquire nuclear

bombs.

"The repudiation of the nuclear industry would increase

Australia's leverage, for nuclear non-proliferation. The "Four

Corners" report on nuclear safeguards dispelled the notion

that we must be involved in the nuclear industry to have a

say in averting proliferation.

"The Labor Party must support this bill. Their policy

unambiguously opposes any nuclear industry in Australia.

Statements by Labor Ministers have opposed the development of

any nuclear industry. Any deviation from these binding

undertakings will destroy any claim to honesty the Government

has. ‘

"Passage of the Democrats' bill would provide a clear and

unambiguous signal to the world that claims that the nuclear

industry offers any benefits are spurious.

"Passage of the bill would make Australia a working example

of a non-nuclear nation that others can emulate. Australia

will be then making its greatest contribution to nuclear

non-proliferation," Senator Chipp said.

FOR FURTHER INFORMATION CONTACT:  Senator Don Chipp 062 72 7175

David Campbell 062 72 7328

1983-84

THE SENATE

(P R IV A T E  S E N A T O R ’S B IL L — S EN A TO R  C H IP P )

A BILL FO R

An Act to prohibit the importation of nuclear hardware, and for  purposes connected therewith

BE IT ENACTED by the Queen, and the Senate and the House of  Representatives of the Commonwealth of Australia, as follows:

Short title 1. This Act may be cited as the Customs (Prohibition o f Importation o f 5 Nuclear Hardware) Act 1984.

Commencement 2. This Act shall come into operation on the day on which it receives the  Royal Assent.

Incorporation of Customs Act 10 3. The Customs Act 1901 is incorporated in, and shall be read as one with, this Act.

Interpretation 4. In this A c t -

n u clear hardware” means— 15 (a) equipment specially designed or prepared for the enrichment or separation of uranium isotopes, including, but without limiting the  generality of the foregoing—

(i) gaseous diffusion barriers;

300/2. 4. 1984—  (52/84)

2 Customs (Prohibition o f Importation o f Nuclear Hardware) No. ,1984

(ii) gaseous diffusion housings; (iii) gas centrifuge separation units; (iv) jet-nozzle separation units;

(v) vortex separation units; (vi) large axial or centrifugal compressors and special seals for  compressors of such a kind; (vii) frequency changers capable of multiphase electrical output of

not less than 600 hertz and not more than 2000 hertz, and parts,  components and sub-assemblies for frequency changers of such  a kind; and .

(viii) bulging dies; (b) major components for nuclear reactors, including, but without limiting . the generality of the foregoing— (i) reactor vessels;

(ii) core support structures; (iii) coolant pumps; (iv) fuel element handling equipment; (v) heat exchangers;

(vi) control rod drive mechanisms; and (vii) nuclear fuel rods; and (c) spent nuclear fuel rods; “vessel" means a ship or aircraft.

Act extends to Crown 5. This Act extends to the importation of nuclear hardware by or on behalf  of the Crown in right of the Commonwealth, a State or the Northern Territory.

Prohibited imports 6. (1) The importation into Australia of nuclear hardware is prohibited unless a permission in writing to import the nuclear hardware has been granted  by the Minister. :

(2) A permission to import nuclear hardware— (a) may be granted only to the Australian Atomic Energy Agency; (b) shall not be granted to the Australian Atomic Energy Agency unless  the Minister is satisfied that the nuclear hardware is essential for the

purpose of enabling the Australian Atomic Energy Agency to maintain  its capacity to produce isotopes for medical or industrial use; (c) shall be granted subject to compliance by the Australian Atomic Energy Agency, after the importation of the nuclear hardware, with

the following conditions: Ã¢ÂÂ

(i) -that the Australian Atomic Energy Agency will not use any  nuclear hardware imported by it in accordance with the  permission except in the production of isotopes for medical or  industrial use; .

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Customs (Prohibition o f Importation ofNuclear Hardware) No. ,1984 3

(ii) that the Australian Atomic Energy Agency will not dispose of  any nuclear hardware imported by it in accordance with the  permission unless it is satisfied that it is no longer essential for  the purpose of enabling it to maintain its capacity to produce  isotopes for medical or industrial use; (iii) that the Australian Atomic Energy Agency will, within

1 month after any of the nuclear hardware imported by it in  accordance with the permission is put into use by it, furnish to  the Minister a statement, in writing, setting out the manner in  which, and purpose for which, that hardware is being used; and (iv) if the Australian Atomic, Energy Agency disposes of any of the

nuclear hardware imported by it in accordance with the  permission—that it will, within 1 month after disposing of the  hardware, furnish to the Minister a statement, in writing,  setting out its reasons for the disposing of the hardware, the

manner in which it disposed of the hardware and, if the  hardware was acquired by another person, particulars of the  person by whom it was acquired.

(3) The Minister shall cause a copy of a statement referred to in  sub-paragraph (2) (c) (iii) or (iv) to be laid before each House of the  Parliament within 15 sitting days of that House after its receipt by the Minister.

(4) The Minister shall, as soon as practicable after granting a permission to  the Australian Atomic Energy Agency to import any nuclear hardware, cause  to be laid before each House of the Parliament a statement setting out  particulars of the nuclear hardware to which the permission relates and of the  manner in which that hardware is intended to be used.

(5) For the purpose of the condition specified in sub-paragraph  (2) (c) (iv), the Australian Atomic Energy Agency shall be taken to have  disposed of nuclear hardware imported in accordance with a permission  granted under sub-section (2) if it disposes of it as a separate article or if it  disposes of equipment or another article of which the hardware forms part or in  the construction or maintenance of which the hardware has been used.

(6) In this section, “the Minister” means the Minister administering the  Atomic Energy Act 1953.

Application

7. Sub-section 6 (1 ) does not apply to nuclear hardware loaded onto a  vessel before the day on which this Act receives the Royal Assent for  importation into Australia.

Primed by Authority by the Commonwealth Government Printer

SECOND READING SPEECH

V'

CUSTOMS (PROHIBITION OF IMPORTATION OF

NUCLEAR HARDWARE) BILL 1984

The Democrats want to highlight the role Australia plays in  supporting the nuclear arms race, and the role Australia can  and should play in bringing an end to the nuclear arms race.  This bill deals with one aspect of that overall picture.

This Bill provides for a prohibition on the importation of  nuclear hardware that would be essential for the

establishment of nuclear power reactors,  uranium enrichment  plants or nuclear waste reprocessing facilities.

None of these facilities exist in Australia at present,   except for research facilities run by the Australian Atomic  Energy Commission.

This bill would prevent the establishment of any other  elements of the nuclear fuel cycle in Australia.

One exception is provided to the absolute prohibition of  imports of nuclear hardware. This would operate where imports  would be necessary for the Atomic Energy Commission to  maintain its present capacity to produce medical and

industrial isotopes.

The Bill provides for substantial Parliamentary scrutiny to  ensure that if nuclear hardware is imported, as provided for  in the exception, there can be no abuse.

The permission to import can only be given to the Atomic  Energy Commission; the Minister responsible has to be  satisfied that the hardware is essential;  and requires the  Minister to table a statement in Parliament relating to the

permission granted. The Commission cannot dispose of any  hardware unless it is no longer required for the purpose,  and  if it disposes of the hardware it must notify the Minister  and the Minister must table the notification in the

Parliament. Ã¢ÂÂ

The Democrats believe that there are overwhelming arguments -  relating to both energy policy and nuclear weapons

non-proliferation policy - that show the nuclear industry is  of no benefit to the wellbeing of humanity.

The energy problem, that the nuclear industry is supposed to  solve, is not a simple search for new sources of energy at  any price.

Solving the energy problem has to relate consumer demand to  energy sources that are economic. There is no demand for  coal, electricity or nuclear power per se. The demand that  exists in the community is for light, comfort and heat, which

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can be provided in a number of ways.  Coal,  electricity or  nuclear power are simply means to an end, they are some of  the ways of providing light, comfort or heat.

The task of energy planners is to seek the best way to

provide for the real needs of consumers. The end use of  energy has to be examined and the best means to provide it  has to be employed.

The cornerstone of the "soft-path" energy strategy that the  Democrats endorse, is that given the choice people will  choose the cheaper form of energy supply.

This will rule out nuclear power instantly. When the costs of  every aspect of establishing and running a nuclear reactor  are added up, the total is more than any reasonable person

could afford.

In November 1983, the capital cost for a nuclear reactor to  deliver a kilowatt of electricity was $9020 per kilowatt.

Let me give an example as to what that figure means. To heat  a house involves about 10 kilowatts of electricity.  If a  consumer is using nuclear generated electricity it' is costing  the electricity authority over $90,000 to provide that

electricity.

Thus the cost of providing the electricity to heat the house  will, in many cases, exceed the total cost, of the house  itself 1  .

To maintain such an uneconomic form of electricity generation  is not just bad news for the operators,  it is disastrous for  the consumers. U.S. power utilities struggling to maintain  nuclear reactors are either increasing their charges by up to

50% or defaulting on their loans, or both.

Official industry projections of the cost of nuclear power  are well below the figures I cite. Those with an interest in  promoting nuclear power have left out the costs of waste  management,  decommissioning nuclear plants, the low capacity

factor of reactors and the grid loss of electricity in their  estimates. They have deliberately left out these factors to  depress their costs, to deceive the public.

The extent of the economic lunacy that is nuclear power is  evident in the fact that it is collapsing despite massive  government support. The U.S. Government has provided between  $40 billion and $100 billion in subsidies to the industry

over the last 40 years. Not even those enormous subsidies  have been able to shield the realities of consumer choice.

Why then,  if the technology is as uneconomic as experience  clearly shows, are we introducing legislation to prevent its  establishment in Australia?

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Despite suffering savage attacks from market forces,  the  nuclear industry is being supported by some governments  because of the power of vested interests and the fact that a  nuclear industry is indispensable to the continued production  of nuclear weapons.

The continuation of the nuclear industry in the Western World  provides an example of the worst kind to developing nations.  Combined with the aggressive policy of the nuclear club to  sell this technology at greatly reduced cost,  the Western  World is providing the example and the means for nuclear  weapons proliferation.

To alter this situation requires that the appropriate nations  repudiate the nuclear option and demonstrate that energy  security can be achieved more fully, at a faster rate and at  less cost than through the nuclear option.

That is the rationale for this legislation. Nations such as  Australia need to publicly repudiate the nuclear option.  Unless we do, we can expect more and more nations to develop  the capability to produce nuclear bombs.

Vietnam plans to proceed with nuclear power. The Philippines  is ready to start up its first nuclear reactor. Indonesia has  expanded its nuclear research centre and it may develop a  civil nuclear power programme. These nations, among others,  rationalise their foray into nuclear technology by citing the  promotion of nuclear technology by the industrialised nations  as evidence of nuclear power's benefits.

If this false illusion of benefits is not removed more  countries will follow blindly a path that is expensive,   grossly inefficient and the driving force behind nuclear  weapons proliferation. ,

The publication of the Strategic Basis of Australian Defence  Policy on March 30, 1983 by "The National Times" has provided  stark evidence that Australia needs this legislation.

While the Government denies that they have endorsed the  development of nuclear weapons if our neighbours do so, they  have not denied that Australia is actively monitoring nuclear

weapons developments "to ensure that the lead time for  Australia could be matched to developments in other countries  should the Government so decide".

The only way to ensure that Australia does not develop  nuclear weapons is to ensure that there are no facilities to  produce the materials needed for nuclear weapons in

Australia. This legislation will provide that assurance.

There are many alternatives to centralised energy sources  such as nuclear power.

Energy efficiency improvements such as insulation and

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retrofitting can save so much energy that new sources are all  but unnecessary.

As the next option,  renewable energy sources must be pursued.  Solar power, wind power and biogas fuels,  amongst others are  the cheapest and most benign energy sources now available.

They are not a pipedream of the future. They are the cheapest  and best buys now. Private power utilities in the U.S. are  opting for renewable energy resources now because of their  economic benefits.

Renewable energy resources now provide more than twice the  delivered energy than does nuclear power in the U.S. This is  despite the fact that they have had to overcome government  disincentives, while nuclear power has been propped up with

billions of dollars in subsidies.

Any continuation of the nuclear industry will absorb funds  that would be more effectively and efficiently used in the  technologies I have outlined. Every dollar spent on nuclear  power will retard the implementation of the economic and  efficient energy resources.

The Labor Party has made statements in its platform, and from  Ministers in Government, that should lead it to support that  legislation.

The ALP platform on nuclear power states that Labor in  Government will:

"Prohibit the establishment in Australia of nuclear  power plants and all other stages of the nuclear fuel  cycle."

The Acting Prime Minister, Mr Bowen,  in a letter to my

colleague Senator Mason on February 3, 1984 stated:

"... the Government has withdrawn support from a private  sector study of the feasibility of an enrichment  industry in Australia and we consider that there is no  prospect of the nuclear option for power generation  being utilised in Australia."

The Minister for Defence wrote to me on April 2, 1984 and  stated:

"The Government does not have the slightest intention of  interesting itself in acquiring any nuclear weapons  capability."

These statements are in accord with ALP policy and should  ensure this legislation passes both Houses of Parliament. I  will be happy to negotiate with the Government and consider  amendments so long as the essence of the legislation,

opposition to all elements of the nuclear industry, is in no

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way weakened.

The passage of this bill would provide a clear and

unambiguous signal to the world.

It would make it clear that we see no benefits accruing to  anyone from nuclear power. It would substantially reinforce  our international nuclear non-proliferation concerns by  stating that we take those concerns so seriously we are  willing to make them part of our domestic policy.

With our house in order our international concerns will be  received with a force and clarity that will make them

difficult to ignore. Australia will then be a working example  of a non-nuclear nation that others can emulate. Australia  will then be making its greatest contribution to nuclear  non-proliferation. .

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