Standing Committee on Chemicals (SCOC) Progress Report – March 2013
As at 8 March 2013, ten reforms (3.1, 4.6, 5.1, 5.6, 6.4, 7.1, 7.2, 7.3, 7.4 and 10.3) were
completed, or agreed by the Council of Australian Governments (COAG) that they are completed
as far as practical, out of the 30 COAG agreed reforms in response to the Productivity Commission
Research Report: Chemicals and Plastics Regulation, July 2008 (PC report).
COAG also agreed in April 2012 that a further seven reforms (4.1 - 4.5 and 5.4 - 5.5) will be
progressed through the Better Regulation Ministerial Partnership (BRMP) between the Minister for
Health and the Minister for Finance and Deregulation rather than through the National Partnership
Agreement to Deliver a Seamless National Economy (SNE NP). These reforms, which primarily
relate to the role of National Industrial Chemicals Notification and Assessment Scheme (NICNAS)
will now be progressed under the BRMP through the Australian Government and thus will no
longer be reported through COAG processes.
The SCOC has been advised by relevant agencies that all 18 ‘Early Harvest Reforms’ (EHR) are
complete or have been included in other reform processes.
The SCOC, which coordinates overall reform delivery for chemicals and plastics regulation, will
continue to have oversight of the chemicals and plastics reform agenda until at least the end of its
initial term at the end of 2014. In April 2012 COAG announced that the BRCWG would not
continue beyond the end of the SNE NP in December 2012. In 2013, the SCOC will report to
COAG through the Business Advisory Forum Taskforce. Significant progress was made on many
of the outstanding reforms in 2012 and SCOC will aim to maintain this momentum in 2013.
Under the Memorandum of Understanding which established the SCOC, its operation must be
reviewed by the end of 2013.
Standing Council on Health (SCoH)
Reforms: 5.2, 5.3
These reforms are concerned with the effectiveness of the scheduling and regulation of poisons
and medicines.
Reform 5.2 requires states and territories to adopt poison scheduling decisions by reference and
regulation controls through template/model approaches. Decisions relating to scheduling are now
adopted by reference by all states and territories. However, this reform focuses on improving
consistency over scheduled poison controls.
The Office of Best Practice Regulation (OBPR) approved a Consultation Regulation Impact
Statement (RIS) on 6 June 2012. After a 4 week consultation period a Decision RIS and
implementation plan have been drafted. Further consultation was scheduled between
Commonwealth and State jurisdictions in January 2013. The Decision RIS and implementation
plan were considered by the Australian Health Ministers’ Advisory Council (AHMAC) on 8 March
2013 and will be considered for final decision by the SCoH in May 2013.
Work on reform 5.3 is ongoing. This reform involves exempting users from poison controls where
the poison is adequately covered under model Work Health and Safety (WHS) Regulations and
there is a demonstrated compliance. Poisons currently utilised solely for industrial use are exempt
from labelling requirements of the Standard for Uniform Scheduling of Drugs and Poisons
(SUSMP). Reform 5.3 is dependent on states and territories implementing wider model WHS
reform.
Select Council on Workplace Relations (SCWR)
Reforms: 6.1, 6.2, 6.3
These reforms are concerned with consistency and overall effectiveness of the regulation of
chemicals and plastics in the workplace.
Reforms 6.1, 6.2 and 6.3 have been completed as part of the broader reforms involving
harmonisation of Work Health and Safety (WHS) laws comprising a model WHS Act, supported by
model WHS regulations and model codes of practice, and complemented by a nationally consistent
approach to compliance and enforcement policy.
Harmonised WHS laws are in effect in the Commonwealth, Australian Capital Territory, New South
Wales, Northern Territory, Queensland, Tasmania and South Australia. Of the remaining two
jurisdictions: WA has advised that it is still considering whether to implement the model OH&S
laws; and Victoria has advised it will not introduce the model laws.
The framework for Major Hazard Facilities (reform 6.1) has been reviewed in line with COAG and
OBPR requirements, which is consistent with the COAG response to the PC report. The revised
framework has been incorporated as part of model WHS law.
With respect to workplace chemicals (reforms 6.2 and 6.3), the approach taken in the model
regulations involves the consolidation of existing requirements for workplace hazardous
substances and dangerous goods into a single framework, and the implementation of the Globally
Harmonised System of Classification and Labelling of Chemicals (GHS) as the primary tool for
classification, labelling and safety data sheets for workplace chemicals. The assessment of the
costs and benefits of these regulatory changes (i.e. Reforms 6.2 and 6.3 – including the
requirement for agricultural and veterinary chemical products that are workplace chemicals to
include GHS information on the label) was assessed in a 2010 regulatory impact assessment. This
assessment found an overall net benefit for the adoption of the new framework which is consistent
with the COAG response to the PC report. The regulatory change has been incorporated as part of
model WHS laws. All jurisdictions have agreed in principle to the 1 January 2017 start date for
mandatory GHS labelling for new and existing chemicals.
GHS labelling is currently recognised optionally in all jurisdictions, even those that have not yet
passed the model WHS laws. The ACT intends to pass an amendment in Spring 2013 that will
make GHS labelling for workplace mandatory from 1 January 2017. Victoria and Western Australia
will need to pass legislation before 1 January 2017 to make GHS labelling for workplace chemicals
mandatory.
Standing Council on Transport and Infrastructure (SCOTI)
All reforms relating to transport safety are now considered complete for COAG purposes. For more
information on the Dangerous Goods Code see the National Transport Commission website:
www.ntc.gov.au.
Standing Council on Primary Industries (SCoPI)
Reforms: 8.1, 8.2
In 2008, COAG requested that the then Primary Industries Ministerial Council (PIMC), now
Standing Council on Primary Industries (SCoPI), submit a detailed regulatory model, supported by
a Decision Regulation Impact Statement (RIS) for a single national framework for assessment,
registration and control of use of agricultural chemicals and veterinary medicines (agvet
chemicals). COAG also requested that this be delivered with a funding model and
intergovernmental agreement (IGA).
The National Agvet System Policy (NASP) Taskforce was created in April 2012 to finalise the agvet
chemical reform package and deliver it to COAG.
In October 2012, SCoPI endorsed the deliverables (regulatory model, funding model and amended
IGA). SCoPI also requested advice on additional wording for inclusion in the IGA. In December
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2012, COAG considered the reform package and noted that it would be finalised by SCoPI. SCoPI
has not met since the COAG meeting.
SCoPI is scheduled to consider signing the IGA and confirm the regulatory model and funding
model at its meeting in May 2013. The RIS will be published once SCoPI has agreed to the reform
package.
Complementary elements of these reforms are being progressed as part of the Better Regulation
Ministerial Partnership (BRMP) for Agricultural and Veterinary Chemicals. Exposure draft
legislation relating to the reforms has been released for public comment and 38 public submissions
were received in consideration of a Decision RIS.
On the 28 November 2012, the BRMP legislative package was introduced to the Commonwealth
Parliament and it is scheduled for debate in March 2013.
Standing Council on Environment and Water (SCEW)
Reforms: 9.1, 9.2, 9.3
These reforms relate to the management of the impact of chemicals on the environment. An
integrated implementation plan was agreed by COAG in April 2012 for PC reforms 9.1 (mandatory
environmental labelling of chemicals), 9.2 (Environment Chemicals Bureau) and 9.3 (performance
measurement framework for monitoring the impact of chemicals on the environment). A
Consultation RIS has been prepared and consultation is expected to begin in March 2013.
The NICNAS review discussion paper proposes possible amendments to the Industrial Chemicals
(Notification and Assessment) Act 1989 which would have bearing on its interrelationship with the
proposed environmental reforms. The proposed changes to NICNAS do not remove the need for a
collaborative arrangement between states, territories and the Commonwealth in determining and
implementing risk management actions on the ground for chemicals in the environment. SCEW are
keen to monitor progress on the NICNAS reforms that enable a consistent and cohesive system,
and which will work in harmony with the environmental reforms 9.1-9.3 already agreed by COAG.
Resourcing the operation of a new standard setting body and jurisdictional implementation has
been identified as potential risks in implementing this reform.
Attorney-General’s Department (AGD)
Reforms: 10.1, 10.2, 10.4
Reforms 10.1 and 10.2 relate to more consistent harmonisation of regulations surrounding security
sensitive ammonium nitrate (SSAN). These reforms remain outstanding as parts of reforms 10.1
and 10.2 and have not been consistently implemented.
BRCWG’s recommendation that AGD be tasked with considering an appropriate way forward for
progressing PC reforms 10.1 and 10.2 in relation to SSAN is reflected in the December 2011
recommendations of the COAG Reform Council (CRC). The BRCWG requested AGD to lead
progress on SSAN reforms and an implementation plan has been agreed by the National
Government Advisory Group (NGAG) on chemical security. The implementation plan was agreed
by COAG at its December 2012 meeting.
In 2013 AGD intends to form a working group comprising government and industry members to
progress SSAN regulatory reforms.
Reform 10.4 is the establishment of the Chemical Security Management Framework (CSMF) and
the re-examination of the controls on SSAN. The framework reflects an agreed approach to
minimising the potential of chemicals being used by terrorists to harm the Australian community,
industry and infrastructure.
AGD’s work under PC reform 10.4 in applying the framework to 96 chemicals of security concern,
including SSAN, is ongoing. To date 25 chemicals have been risk assessed: 11 precursor
chemicals to homemade explosives and 14 toxic chemicals stored and/or transported in bulk. The
risk assessment for SSAN has been completed and AGD is currently assessing the risks posed by
29 agricultural and veterinary chemicals.
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AGD recently held a public consultation on the draft voluntary National Code of Practice for
Chemicals of Security Concern. The draft code, initially applicable to 11 chemical precursors to
homemade explosives, asks business to self-assess risk and suggests strategies to reduce the risk
of terrorists acquiring chemicals. The draft code was the recommended outcome of a regulation
impact analysis process. Subject to agreement by the Attorney-General and all responsible State
and Territory Ministers, AGD expects to launch the final version of the code in mid-2013.
AGD is on track to assess and treat the risks posed by the 96 chemicals of security concern under
the CSMF by June 2015. The SCOC secretariat considers that this reform will be complete if the
security controls on SSAN are re-examined by the NGAG.
Web publication: April 2013
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