Imports and Exports (Restrictions) Amendment Bill Report of the Foreign Affairs, Defence and Trade Committee No. 217-1 Government Bill Contents Background 2 Export of PCBs for environmentally sound disposal 2 Inclusion of the Basel Ban Amendment 3 The Green member s minority view 3 Appendix 5
Imports and Exports (Restrictions) Amendment Bill Recommendation The Foreign Affairs, Defence and Trade has examined the Imports and Exports (Restrictions) Amendment Bill and recommends that it be passed without amendment. Background The Imports and Exports (Restrictions) Amendment Bill amends the Import Control Act 1988 to provide for the making of export control Orders in Council to give effect to the requirements of: the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade the Stockholm Convention on Persistent Organic Pollutants any other international obligation that provides for the restriction on, or the prohibition of, the exportation of certain chemicals, products, organisms, wastes or other substances that pose a risk to human health or to the environment. Enactment of the bill, together with amendments to the Hazardous Substances and New Organisms Act 1996 in a companion bill, will enable New Zealand to ratify the Rotterdam and Stockholm Conventions. This report outlines our consideration of the major issues raised in relation to the bill. Export of PCBs for environmentally sound disposal The submission of Transpower New Zealand Ltd sought provision to allow for the export of PCBs (polychlorinated biphenyls) for environmentally sound disposal. We do not believe this is necessary because clause 9 of the bill (new section 3A of the Act) provides for the making of Orders in Council to prohibit the export of certain substances in order for New Zealand to give effect to the requirements of the Rotterdam and Stockholm Conventions and other international obligations (as defined in the bill), which restrict or prohibit the exportations of certain substances that pose a risk to human health or the environment. However, we note the export of PCBs is permitted under the Stockholm Convention for the purposes of environmentally sound disposal. New section 3A would enable the making of Orders in Council to prohibit exports absolutely or conditionally. Therefore, the export of PCBs for environmentally sound disposal should be considered in the course of making Orders in Council pursuant to new section 3A. Orders in Council making provisions to give effect to international obligations We considered amendments to clause 9 of the bill. We note that there is the potential in clause 9 for the Government, in making Orders in Council to give effect to an international obligation, to establish a higher threshold than the international obligations as defined in the bill. However, we are advised that the Government has no intention to exceed the 2
requirements of the international obligations listed in clause 6 of the bill. Moreover, in making Orders in Council related to export prohibitions, the Government is constrained by both the requirement that the prohibition be necessary to give effect to the international obligation and its other international trade obligations. Inclusion of the Basel Ban Amendment We considered an amendment to clause 6 to incorporate the Basel Ban Amendment. As an amendment to the Basel Convention, the Basel Ban Amendment must be ratified by 62 of the Parties to the Convention who were present when the amendment was adopted, before it comes into force. Clause 6(1)(c) of the bill automatically includes any amendments to the Basel Convention when they become binding on New Zealand. The Basel Ban Amendment would ban the hazardous wastes exports for final disposal and recycling from what are known as Annex VII countries (Basel Convention Parties that are members of the European Union, OECD and Liechtenstein) to non-annex VII countries (all other Parties to the Convention). We are advised that the New Zealand Government is currently working with other countries within the Basel Convention process in order to establish whether the Basel Ban Amendment achieves the desired purpose of the Basel Convention. New Zealand, along with Japan, the United States of America, Canada, Australia and several industrialising countries, has traditionally opposed the Basel Ban Amendment because it is flawed, is likely to distort the aims of the Basel Convention and duplicates a mechanism already provided in the Basel Convention. It does not distinguish between different countries on the basis of their capacity to undertake environmentally sound and efficient disposal of hazardous wastes. There are excellent recycling and disposal facilities in developing countries. In the absence of imported hazardous waste, developing countries may lack the economies of scale necessary to develop their own capacity to dispose of hazardous wastes. The Basel Ban Amendment would also deny developing countries access to economic sources of certain recyclable wastes, increasing their reliance on unsustainable virgin materials. A submission providing background on this policy position has been sent to the office of the Minister of Foreign Affairs and Trade. A working group of parties to the Basel Convention is due to report to Basel Conference of Parties Seven in October 2004 on the likely social, environmental and economic impacts of ratifying the Amendment. This meeting will present New Zealand with a further opportunity to access its position on the proposed Basel Ban Amendment should the Government wish to do so. We expect that once this work is completed, the Basel Ban Amendment will be presented to the House for examination if the decision is taken to ratify. The Green member s minority view The Green member believes we already have enough information for New Zealand to ratify the Basel Ban Amendment, joining the many countries who have already done so. He believes New Zealand should have continued the support it gave to the Basel Ban Amendment at the 1994 Conference of Parties 2 in Geneva, referred to in that conference s official report. The Ban deals with the very real problem of the richer OECD countries dumping their hazardous wastes on poorer countries. He notes concern that the Basel Ban Amendment might stop the present New Zealand export of used lead batteries to the Philippines, but believes that this is actually a reason why we should support the 3
Amendment. He has seen reports that the Philippine processing of lead batteries has shortcomings and is polluting the surrounding environment. 4
Appendix Committee process The Imports and Exports (Restrictions) Amendment Bill was referred to the committee on 20 February 2003. The closing date for submissions was 21 March 2003. We received and considered 1 submission. Consideration took 1 hour 24 minutes. We received advice from the Ministry of Economic Development and the Ministry of Foreign Affairs and Trade. Committee membership Hon Peter Dunne (Chairperson, United Future) Graham Kelly (Labour) Tim Barnett (Labour) Martin Gallagher (Labour) Keith Locke (Green) Dr Wayne Mapp (National) Ron Mark (New Zealand First) Hon Matt Robson (Progressive) Dr the Hon Lockwood Smith (National) Dr Paul Hutchison was a replacement member for this item of business. 5