Australian PM threatens to use constitutionalPM threatens Labor over China
By Patrick Walters and Joseph Kerr
04-04-2006
From: The Australian
JOHN Howard has raised the prospect of using constitutional powers to override the states if future exports of uranium to China were jeopardised by Labor's three-mines policy.
But he might not need to, after a second Labor premier - Queensland's Peter Beattie - signalled yesterday he would not stand in the way of moves to scrap the policy and allow a new mine.
The Prime Minister said he believed the policy was "already crumbling" but indicated the Government would consider legislation to override the states if necessary.
"We will examine that and watch developments in that area with great interest," he said.
"The Government will also, in the fullness of time, examine what other capacity the national government has if that becomes necessary, but it's a little early to be contemplating that."
Mr Howard and Chinese Premier Wen Jiabao yesterday witnessed the signing of two agreements clearing the way for future sales of Australian uranium to China's nuclear power program.
Mr Howard also agreed to adopt an accelerated two-year timetable to clear major obstacles to a bilateral free-trade agreement.
But Trade Minister Mark Vaile warned that tough negotiations with Beijing lay ahead on the trade deal. "The negotiations will be difficult but are worth persisting with," he said.
The nuclear accord unlocks Chinese investment opportunities in Australia's uranium industry as Beijing seeks to diversify its energy supply away from its reliance on fossil fuels.
However the nuclear transfer agreement signed by Foreign Minister Alexander Downer and his Chinese counterpart Li Zhaoxing also establishes strict export safeguards to ensure Australian uranium is used exclusively for peaceful purposes.
A second co-operation agreement provides for collaborative work including research on peaceful nuclear science as well as safeguards and nuclear security issues.
Labor's "no new mines" policy applies in Queensland, NSW, Victoria and Western Australia, but there is growing pressure from within the party to junk the long-standing position.
The three mines allowed are at Ranger in the Northern Territory and Nabarlek and Olympic Dam, also known as Roxby downs, in South Australia.
Mr Beattie disputed Canberra's constitutional powers to override the states to allow new uranium mines, but agreed if federal Labor changed its policy he would not stand in the way of other mining opportunities.
"The reality is he can't do that. Our legal advice is the issuing of licences is a matter for us," said Mr Beattie. "I don't want to see anything that would undermine Queensland's coal ... but obviously if the Labor Party changes its view on uranium we would follow suit."
Constitutional expert George Williams said if the Federal Government wanted to allow one or more new uranium mines, it could use the constitution's trade and commerce power to overturn any state law blocking a new mine being established for export purposes.
Professor Williams, the director of the Gilbert & Tobin Centre of Public Law at the University of NSW, said Canberra could also use the corporations power, currently being used to dramatic effect in implementing the Howard Government's industrial relations changes.
China insists it takes seriously its obligations as a member of the International Atomic Energy Agency and as a signatory to the Nuclear Non-Proliferation Treaty.
"China is conducting nuclear co-operation and this is solely for peaceful purposes," Mr Wen said.
Mr Howard said he was satisfied Australian safeguards would be enforced. "It's on that basis that the agreements have been signed," he said.
It is believed China wants to import about 20,000 tonnes of uranium, about double Australia's current production, but with sales also coming from Canada and Kazakhstan. Industry Minister Ian Macfarlane said he did not expect any sales to China before 2008 as Australia was committed in terms of production.
The Chinese leader caused confusion on Sunday when he said the nuclear safeguards agreement - signed in Canberra yesterday - should contain a price-setting mechanism.
China expert Ross Terrill said he believed Mr Wen was sending Australia a message by suggesting there should be a price mechanism. Professor Terrill said the remarks were clearly not off the cuff.