Natural Resource Transparency-What you had to say
Further in the series- Issues raised in Submissions on Draft National Action Plan
1.3 Natural Resource Transparency
Issues raised include whether this is limited to the Extractive Industries Transparency Initiative, and From Publish What You Pay Australia:
Should be greater connection between commitments 1.2 and 1.3 – the EITI Standard recommends by 2020, countries have to ensure that beneficial ownership information is identified, and recommends this information is made available through a public register; and include mandatory disclosure legislation, requiring extractive companies listed or based in Australia to disclose all payments made to governments on a country-by-country and project-by-project basis, as a natural next step. This would bring Australia in line with numerous jurisdictions.
From the PM&C round up:
Justin Warren PivotNine (consultancy)
Why should disclosure of company payments and government revenues be limited to the extractive industries? If this is a good idea, then it should relate to all industries equally. Is there a particular issue with transparency and accountability in this industry today?
Marie Lintzer OGP Natural Resources Working Group (Natural Resource Governance Institute)
Australia committed at the UK Anti-Corruption Summit to enhance company disclosure regarding payments to governments for the sale of petroleum and minerals (physical commodities trading), as a complement to EITI. Australia also committed to potentially report progress via OGP. Commitment 1.3 would be the obvious place for Australia to flesh out how it is progressing this commitment. This could include participation in the international dialogue for which the UK is due to finalise ToR in Dec 2016.
Consider adding EITI to the commitment title. It is broader than just revenue transparency – it refers to transparency along the entire value chain.
Consider a milestone on developing an action plan to implement the initiative.
A number of countries which have major extractive companies listed have put in place mandatory payment disclosure laws requiring them to disclose payments to governments not just in the country where the laws is passed, but in all countries where they operate (US, UK/EU, Canada and Norway). Major Australian companies are already reporting under such laws, but many ASX listed companies are not. A commitment to implement or consult on such a law would be an important and complementary milestone.
Jack Mahoney OGP Support Unit
Commitment description “we will work together” is unclear.
It would be helpful to elaborate on how the commitment will enhance transparency and accountability in the ambition section.
Could forgo the milestone on ‘validation in 2019’ and just note this in the text.
Carole Excell OGP Natural Resources Working Group (World Resources Institute)
Consider changing title to “Extractives Transparency” as natural resource transparency is broader than just extractives
Engagement with local communities is key – recommend having clear commitments related to the extractive sector and participation, whether this is reinforced in this commitment or commitment 5.1/5.2. Recommend including a commitment to implement or consult on the requirements for corporate environmental disclosure.
Status Quo – Within the EITI, there is an opportunity to require corporate environmental and social disclosures to reduce impact legacy risk. Recommend including reference to this in commitments – see https://www.researchgate.net/publication/227739972_Environmental_Disclosure_by_Australian_Mining_Companies_Environmental_Conscience_or_Commercial_Reality and
Jose Marin OGP Anti-Corruption Working Group
Supports this commitment – has potential transformative impact.
Jessie Cato Publish What You Pay Australia
Supports this commitment, and EITI being included in this Plan.
There should be greater connection between commitments 1.2 and 1.3 – the EITI Standard recommends by 2020, countries have to ensure that beneficial ownership information is identified, and recommends this information is made available through a public register.
Should be acknowledged in this commitment that countries are generally chosen for validation by the EITI Secretariat, rather than by their own timeframe. If implementation progresses as outlined, Australia can request early validation from the Secretariat.
Second National Action Plan should include mandatory disclosure legislation, requiring extractive companies listed or based in Australia to disclose all payments made to governments on a country-by-country and project-by-project basis, as a natural next step. This would bring Australia in line with numerous jurisdictions.
Dr Madeleine Roberts
Must include information on the Australian Government’s (and private Australian company’s) offshore extraction and the licence agreements that have been negotiated with neighbouring countries about resources that the Australian government or company is claiming.
Why is Australia ‘supporting the application of EITI principles around the world’ while it only ‘work(s) towards compliance with the standard? This means it will be proactive in enforcing its own claims on other country’s resources while delaying ensuring the principles are adhered to on Australian land.
Phil Jones SJ Around the Bay
Should not use the term ‘sustainable development’ as oil, gas etc are non-sustainable resources. Could use ‘extraction’ instead.
Natasha Molt Law Council of Australia
Commitment 1.3, the associated milestones and proposed timing appear consistent with the steps set out in the EITI.
Mel Flanagan Nook Studios
This commitment could deliver more tangible outcomes within the timeframe for Australian citizens beyond EITI compliance – by creating a reporting and publishing platform permitting people to easily search and discover information and linked data related to projects and companies.
To deliver holistic transparency, the whole lifecycle of extractive and energy projects should be available.
Luke Bacon
Commitment to create and maintain a beneficial ownership register, rather than just explore options.