Debate resumed from 8 February 2024.

The Hon. AILEEN MacDONALD (16:35): On behalf of the Opposition, I support the Environmental Legislation Amendment (Hazardous Chemicals) Bill 2024. The bill proposes changes to the State's environmental laws to strengthen the regulation of industrial chemicals in New South Wales. The proposals in the bill will align New South Wales with new national standards that are being rolled out across Australia to protect our land, air and water from the environmental risks of industrial chemicals. It will harmonise the management of hazardous chemicals across the States and Territories to provide greater oversight and control by the Environment and Protection Authority [EPA]. Currently more than 40,000 industrial chemicals are used in Australia in everyday products such as paints, fertilisers, cosmetics, cleaning products, plastics and more. Most are not harmful to people or the environment when used as intended. But a small proportion of industrial chemicals can cause serious harm to the environment and human health, if not managed properly.

Poor management of the environmental risks of industrial chemicals can result in pollution of the environment due to emissions or wastes from manufacture or product formulation; harm to the community or environment from incorrect storage or handling; contamination of land and water from poor disposal practices; environmental and human health risks from high‑risk industrial chemicals; and costs associated with legacy issues like cleaning up contaminated sites. National frameworks exist to manage products used in food, medicines and pesticides, but there has not been a mechanism to manage risk across the environment and across jurisdictions.

I support the Industrial Chemicals Environmental Management Standard, better known as IChEMS, because it is a new national approach for managing the importation, use and disposal of industrial chemicals. All chemical users and manufacturers will be licensed under one piece of environmental legislation, removing the need to hold two licences under different Acts, which will reduce the costs for businesses in New South Wales. Until recently there has not been a mechanism to consistently manage risks to the environment from industrial chemicals across all jurisdictions. Naturally this has resulted in uncertainty, duplication and increased costs for businesses that use or manufacture industrial chemicals. The Coalition supports the bill and notes that the work began under our Government. It will harmonise the management of hazardous chemicals across States and Territories and will provide greater oversight and control by the EPA.

Ms SUE HIGGINSON (16:38): On behalf of The Greens, I indicate support for the Environmental Legislation Amendment (Hazardous Chemicals) Bill 2024. The bill will implement the Industrial Chemicals Environmental Management Standard, or IChEMS, which is a national mechanism to harmonise Federal, State and Territory frameworks. The regulation of hazardous chemicals will be moved into the Protection of the Environment Operations Act 1997 and the Environmentally Hazardous Chemicals Act 1985 will be repealed. The Greens support stronger and clearer regulatory requirements for industrial chemicals, but we are also hoping that the Government will soon address agricultural and veterinary chemicals, or agvet chemicals. These reforms seek to tidy up the system. But the current frameworks are not just fragmented; they are also inefficient, unsafe and fail to prioritise environmental and human health. The gaps mean that chemical regulation in Australia is not in line with comparative regulations in the European Union, the United States and Canada. These countries represent key export destinations for Australian agricultural products, amounting to $1.75 billion in the last year. We should be aware of and responsive to the risks that farmers face if those markets decide to impose limits on our products.

We want New South Wales to be the leader in Australia when it comes to establishing national programs to monitor chemical residues, increasing the pace of conducting chemical reviews and investing in research efforts that examine environmental and human health impacts. We need much more than just a consistent risk management framework and mechanism. We need a national surveillance and chemical residue monitoring system. We need to improve chemical review efficiency and to develop regular performance review mechanisms to ensure that the environment and human health is protected across the field.

Current chemical exposures are adversely affecting human health and the environment. This is particularly the case for vulnerable populations such as the young, the aged, pregnant women and their fetuses, and First Nations communities. Although I recognise that the Agricultural Pesticides and Veterinary Medicines Authority has ultimate responsibility for agvet chemicals, New South Wales is experiencing a quiet crisis caused by the irresponsible use and overuse of very harmful chemicals. Food growers, residents and the natural environment are being smashed across the Central West, where spray drift is causing defoliation of entire ecosystems while also contaminating lands and waters. The environment and people of New South Wales are at risk because these chemicals are incredibly damaging and the regulatory framework for agvets has not been subject to rigorous review and reform.

The New South Wales Government has a significant advocacy role to play. My urgent advice to the Government is simple: Do not wait for the Federal Government to address the continuing inadequacies in the agvet space. If it has not already, it must start the conversation on risk management across jurisdictions and on increased biomonitoring, focused research on environmental and human health impacts of chemical exposure, and improved performance review systems. It must establish live and real‑time digital systems to track chemical use. It must use the available tools to reform New South Wales and set a standard so good that other jurisdictions will set their standard based on ours. These are significant issues and all stakeholders—including community members, product users, public health and environmental health organisations, the regulator, governments and industry—need to actively participate in the governance and oversight of the system.

The Hon. PENNY SHARPE (Minister for Climate Change, Minister for Energy, Minister for the Environment, and Minister for Heritage) (16:42): In reply: I thank the Hon. Aileen MacDonald and Ms Sue Higginson for their contributions to debate on the Environmental Legislation Amendment (Hazardous Chemicals) Bill 2024. There is broad support for the bill for good reason. It will support New South Wales to cooperate in the national approach to industrial chemical risk management, known as IChEMS, which is a new and ambitious framework for reducing chemical contamination and pollution across Australia. It will enhance the Government's oversight of emerging problem chemicals that are yet to be regulated, preventing future harm to people and the environment.

I note the comments of Ms Sue Higginson and state that this bill is not seeking to regulate pesticides, which I think she acknowledged. The bill delivers national harmonisation of industrial chemical environmental risk management across Australia under IChEMS. It supports a shift in the way businesses manage industrial chemicals in New South Wales, supporting industry to make better chemical choices and safeguarding future generations against contamination and costly clean‑ups. The bill will help protect New South Wales communities from the harmful effects of industrial chemicals. It is yet another example of the Government's strong commitment to protecting our natural environment for generations to come. I welcome the support of members and commend the bill to the House.

The DEPUTY PRESIDENT (The Hon. Rod Roberts): The question is that this bill be now read a second time.

Motion agreed to.

Third Reading

The Hon. PENNY SHARPE: I move:

That this bill be now read a third time.

Motion agreed to.