On 9 October 2015 the Infrastructure, Planning and Natural
Resources Committee released its “Parliamentary Inquiry report into FIFO and
other long distance commuting work practices in regional Queensland” (Parliamentary Inquiry Report). Earlier
this month, on 1 October 2015, the Government appointed FIFO Panel made its “FIFO
Review Report” (Review Report) publicly
available, after being provided to the Minister of State Development at the end
of July 2015. Both reports form part of the Queensland Government’s FIFO
Review, which aims to introduce choice for employees working at mines located
near a resource town or regional community to live near their workplace.
Key recommendations
Both Reports recommend legislative reform to prescribe that
a social impact assessment process be undertaken for major projects. If this
recommendation is implemented it would likely involve the amendment of the State Development and Public Works
Organisation Act 1971 (Qld) or the Environmental
Protection Act 1994 (Qld). These pieces of legislation set out and
facilitate approval processes for resource projects in Queensland.
The Review Report recommends that the Environmental Protection Act 1994 (Qld) be amended to require resource
proponents to prepare appropriate workforce, procurement and accommodation
plans for proposed resource activities as part of their environmental approval
process. It further recommends monitoring and enforcement measures be put in
place to ensure compliance with approved workforce, procurement and
accommodation plans for new resource activities.
The Parliamentary Inquiry Report recommends that the
government consider making changes to anti-discrimination legislation to
prevent local workers in regional or mining towns being discriminated against
on the basis of where they live for work. The Parliamentary Inquiry Report
emphasises that workers should have a genuine choice of where they live for
work. It also makes recommendations in relation to the minimum standards for
the provision of substantial temporary and permanent accommodation for FIFO
workers, such as room design and access to health services and recreational
areas and that the standards advise against the practice of ‘motelling’ or
‘hot-bedding’..
Implications
Neither Report recommends any form of retrospective action
to place limits on existing FIFO workforces. As such, current resource projects
with FIFO workforces should not be impacted by changes flowing from the
recommendations in the Reports.
The Parliamentary Inquiry Report recognises that some
resource operations require total FIFO workforces due to their remoteness or
during construction; indicating that future resource projects in remote areas with
100% FIFO workforces may still be acceptable.
Government response to these Reports is expected in early
2016. This may be followed by the introduction of new laws and regulations in
regards to FIFO and non-resident workforces.
For further information, please contact Jay Leary,
Partner, or your usual Herbert Smith Freehills contact.