P R E S S  R E L E A S E m

THE SENATE

(a Lj.

No. 82/85  CANBERRA  12 JULY 1982

DEMOCRATS OPPOSE STATES HAVING NUCLEAR POWER: CHIRP

The Australian democrats today warned that any legislation

introduced to help establish a nuclear fuel enrichment

industry, especially one under the control of the S t a t e s , would

be resolutely opposed.

Senator Don C h i p p , speaking after a party meeting of the

Australian Democrat Senators in Melbourne, said that

legislation foreshadowed by the Government to establish a

legislative base for a nuclear power industry in Australia

would not be passed as far as the Australian Democrats are

concerned.

"The ALP can make up its own mind. As a result of the National

Conference, they may not be so firmly opposed to this legislation,

but I warn the Government that the Democrats are resolutely

opposed to these developments," Senator Chipp said.

"The Federal Government is trying to implement the nuclear

power industry through the backdoor, by giving control to

the S t ates, because of Democrat.opposition."

But to do this they will have to introduce some enabling

legislation to the Federal Parliament. We will oppose this

all they way.

"The nuclear power industry is widely recognised as being on the

way o u t .  It is burdened by excessive capital costs, safety

concerns and waste storage problems. Its economic benefits

to Australia are dubious. It would be a folly for Australia

to embark on what is redundant and discredited technology,"

Senator Chipp a d d e d .

"It would be particularly disastrous if some of the manically

pro-nuclear Premiers were able to control and regulate the

nuclear industry themselves," Senator Chipp said.

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"It is horrifying enough to contemplate a nuclear power industry

controlled by the Federal Government, but it enters the realm

of a nightmare to imagine each of the six States jealously

presiding over their own nuclear Kingdoms," Senator Chipp

concluded.

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FOR ADDITIONAL INFORMATION SEE ATTACHMENTS.

*******

FOR FURTHER INFORMATION CONTACT:

Senator Don Chipp

David Campbell

(03) 61 3137

(03) 62 3295

BACKGROUND PAPER

OFFICE OF SENATOR THE HON. D.L. CHIPP

JULY 1982

GOVERNMENT'S PROPOSED CHANGES TO THE REGULATION AND CONTROL

OF NUCLEAR ACTIVITIES IN AUSTRALIA .  .

The Federal Government is actively working towards the

establishment of a nuclear industry in Australia.

The first evidence of this is the support the Federal

Government has given to the pre-feasibility study of the

Uranium Enrichment Group of Australia (UEGA), which is aiming

to establish a uranium enrichment plant.

Government support for this has been indicated by Mr Anthony

who said in June 1981 he hoped Australia would be exporting

enriched uranium by 1990 (Canberra Times 6.6.81).

On 12 August 1980, an Inter-Departmental Committee (IDCl

was established by the Federal Government to examine the

legislative base required for a nuclear industry in Australia.

The Committee was prompted by calls from the States for less

Commonwealth interference in the regulation of a nuclear

industry. Premier Bjelke-Petersen has been particularly

vociferous in this field. He believes it is Queensland's

constitutional responsibility ot control the regulation,

licensing and development of a nuclear industry within its

boundaries (Age 7.4.82).

The Inter-Departmental Committee report is a confidential

document which has been leaked to the press.

The IDC undertook a review of the Atomic Energy Act 1953

to determine the necessary alterations. The major conclusions

of the IDC are as follows:

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(a) The Atomic Energy Act 1953 is inappropriate as a

legislative base for the regulation of a commercial

nuclear industry.

(b) New legislation would thus be required.

(c) There should be seperate legislation to separate the

competing interests of regulation of nuclear activities,

and the promotion of nuclear activities. .

(d) High priority should be given to nuclear non-proliferation

legislation to cover:

safeguards arising from international obligations;

physical protection of nuclear materials arising  from international obligations;

protection of classified information and sensitive  technology;

establishment of the Australian Safeguards Office  as a statutory b o d y .

The IDC report was in line with the 1980-81 Uranium Advisory

Council (UAC) Report which recommended similar changes.

On 30 April 1982, the Review of Commonwealth Functions

(Razor Gang) Report recommended, in line with the Fraser

Government's "small government" philosophy, that:

"Responsibilities for the regulation and control

of nuclear activities are to be implemented as far

as possible by the States and the Northern Territory,

with the Commonwealth maintaining a co-ordinating

role." (p.  26)

On 5 June 1981, Ministers Anthony and Carrick "foreshadowed

far-reaching changes to Commonwealth legislation on nuclear

matters". These changes were to be the result of the IDC

Report, the UAC Report, and the "Razor Gang" Recommendations.

(i)

(ii)

(iii)

(iv)

3

Progress on these "far-reaching" changes, however, has been

very slow. No legislation has been presented to any

Parliament in Australia in the year since 5 June 1981.

Discussions between Federal and State Government officials

are continuing, the last known meeting being at the end of

April this year.

The Uranium Information Centre Newsletter of May 1982

reports that the proposed revision:

"Includes changes to Commonwealth legislation and

new laws to be enacted by State Governments which, will

give them increased power to regulate nuclear activities."

When the State and Federal Government officials met at the

end of April, it.is believed that the Labor State officials

refused to participate actively, and were just observers.

The Science and Technology Group in the Parliamentary Library

were under the impression that the proposed changes to the

relevant Commonwealth legislation were to be made a priority

for the last Session. That did not end up being the case.

This means the changes could come in the Budget Session.

STATISTICS ON THE AUSTRALIAN URANIUM INDUSTRY

EMPLOYMENT:

Total employment is at present 2180 people directly employed.

A great many of these are employed in the construction phase.

By 1984, employment will be in the region of 1430-1530 p e o p l e .

Employment levels are likely to be susceptible to shutdowns,

such as the doubts over Yeelerie after Esso's pull-out.

INVESTMENT:

To June 1982, investment has been something over $500 million

expected to rise to $732 million on present estimates.

PRODUCTION:

The year ended June 1981 saw Australia produce a total of

2523 tonnes.

Exports were 1513 tonnes, at a vallue of $118 million.

RESERVES:

Australia has 17% of the world's low-cost reserves, and

produces 3-5% of the total world production. Existing,

planned, or committed projects, have total reserves of

1,395,348 tonnes.

The proportion of the above that is "economically viable" will

depend on world prices. .

MARKET CONDITIONS:

World uranium projections are being continously revised downwards

v- ; Ã¢ÂÂ  *

2

The Australian Atomic Energy Commission estimates for world

demand have been reduced as follows:

1975 estimate : 108,000 tonnes by 1985

1981 estimate : 39,000 tonnes by 1985

Estimates for generating capacity of nuclear industry:

1976 estimate : 2,500 gregawatts by 2000

1981 estimate : 440-680 gregawatts by 2 000. .

WORLD PRICES

Spot prices of uranium peaked at $US48/lb in 19 78.

They are now barely above $US20/lb.

)  .

SENATOR DON CHIPP

