Adani Mining Pty Ltd: allegations of "black money" and environmental degradation

“The Indian government’s Directorate of Revenue Intelligence (DRI) is currently investigating a number of Adani Group entities, including Adani Enterprises Ltd (AEL), which is the ultimate holding company of Adani Mining Pty Ltd, the proponent of the Carmichael Mine, for illegally overvaluing imports of coal and capital equipment in order to siphon funds offshore, a practice that creates “black money.” A detailed report from a reliable media source also indicates that for more than a decade the DRI has also been investigating Adani Group entities for tax evasion and money laundering whilst trading in diamonds.”  

Major Reports, February 2017:

The Adani Brief

If it proceeds, the Adani Group’s Carmichael Coal Mine and Rail Project in the Galilee Basin in Queensland will be among the largest new coalmines in the world. The associated rail infrastructure and expansion of the coal export terminal at Port of Abbot Point adjacent to Queensland’s Great Barrier Reef World Heritage Area would facilitate the shipping of coal through the Great Barrier Reef’s waters from the Carmichael Mine.

The Adani Brief: What governments and financiers need to know about the Adani Group’s record overseas suggests that governments and private stakeholders should give serious consideration to:

* the Adani Group’s global legal compliance record which demonstrates numerous serious breaches with adverse consequences for the environment and local people; and

* the possibility that if this track record continues in Australia, then supporting the Adani Group’s Carmichael Mine and the Abbot Point Port may expose governments and private  

  stakeholders to reputational and financial risks.

Read The Adani Brief (PDF, 1.53MB)

Read the Overview of The Adani Brief (PDF, 160KB)

View key source documents

Report/submission Type:  

Major Reports

Topics:  

Fossil Fuel Extraction

There would be a particularly nervous class of Australian investors right now - perhaps even Mr. Harbourside Mansion himself

The Guardian, 11 February 2017:

The founders of Mossack Fonseca, the law firm at the centre of the Panama Papers scandal, were arrested in Panama City on Thursday as the country’s attorney general launched a probe into their alleged connections with Brazil’s sprawling Lava Jato corruption scandal.

Juergen Mossack and his colleague Ramon Fonseca, a former adviser to Panama’s president Juan Carlos Varela, were taken into custody and transferred to police cells in the capital overnight for further questioning on Friday, their defence attorney Elías Solano was quoted telling reporters.

Panamanian prosecutors raided the offices of Mossack Fonseca on Thursday. In a press conference on Kenia Porcell, Panama’s attorney general, said she had information that identified Mossack Fonseca “allegedly as a criminal organisation that is dedicated to hiding money assets from suspicious origins”. 

She said the firm’s Brazilian representative had allegedly been instructed to conceal documents and to remove evidence of illegal activities related to the Lava Jato case.

“Put simply, the money comes from bribes, circulated via certain corporate entities to return bleached or washed to Panama,” said Porcell. She explained charges had been formulated against four individuals, including the Mossack Fonseca partners. 

Porcell thanked the authorities in Brazil, Ecuador, Colombia, Peru, Switzerland and the United States for their part in a collaboration which she said began over a year ago.

The Panama Papers, which consist of millions of documents belonging to Mossack Fonseca and leaked in April 2016, provoked a global scandal after showing how the rich and powerful used offshore corporations to avoid paying taxes.

Australian Financial Review, 14 June 2016:

Prime Minister Malcolm Turnbull's merchant bank Turnbull & Partners received an estimated $3 million in 1995 and 1996 from the sales of shares held through offshore companies administered by notorious Panama law firm Mossack Fonseca.

Turnbull & Partners received up to $7 million from share sales and advisory fees from Mr Turnbull's time as a director of a listed mining company, Star Mining, which had an interest in a Siberian gold deposit.

Documents obtained by The Australian Financial Review, which first revealed Mr Turnbull's link to a Mossack Fonseca company last month, show heavy selling of Star Mining shares by offshore companies in 1995 after a series of favourable decisions by Russian politicians and bureaucrats boosted the Star Mining share price.

One of the key figures who helped obtain Star's Siberian  mining leases, Ludmila Melnikoff, accuses Star director Ian MacNee, who died in 2008, of paying bribes of more than $US2 million to secure these decisions.

So why are the Turnbull & Andrews Governments giving, not loaning, almost a quarter of a billion dollars to Alcoa Corp?

Every blast furnace operator has exactly the same vulnerability - lose power and you lose your primary income producing asset.

But for some reason Alcoa Corp in Victoria was happily smelting along at 85% capacity with no back-up power supply when in early December 2016 along came a storm – a big bad storm like so many these days – and took out the power grid.

The pots that were operational when this happened ‘froze’ and the aluminium inside cooled and solidified.

When the power came back on the Portland plant was only able to work at one third capacity and has since been losing about $1million a day according to media reports.

The corporation stated that this plant will not come back online for at least eight months, that is August 2017.

The Age also reported on 6 January 2017 that:

The outage occurred with remarkable timing – just days after Alcoa's 30-year government-subsidised power contract ended and with power prices set to rise after the closure of the Hazelwood power station.

So it comes as no surprise that the Turnbull Government decided to give, not loan, this approx. 128 year-old New York based multinational company $30 million dollars to continue operating at Portland for another ten years.

The Victorian Government is handing over another $210 million to this corporation and AGL has agreed to a lower price electricity supply price for Alcoa.

Now as I write Alcoa shares on the New York Stock Exchange are $36.47 and rising, with company revenue for the last quarter at $2.5 billion, up 9 percent sequentially, reflecting higher volume in the Company’s rolled products business and higher alumina pricing and a cash balance of $853 million.

Meanwhile rumours are circulating that Alcoa is intending to close the Portland plant by 2020 regardless.

These facts got up the nose of one North Coast Voices reader and he discussed the matter with a mate.

This was the result……

“This was a predictable, preventable & foreseeable occurrence and all the damage was deliberately self-inflicted by management

Every telephone exchange, every ISP, every commercial Data Centre, even every mobile phone tower has backup power.
When the floods hit the Hunter Region of NSW & knocked out power in 2015/6 for a few weeks, the mobile phones kept working - because there weren’t just batteries, there were diesel generators and contractors signed up to refuel them. We know this because it was documented in the Telco community.

So do many more ‘ordinary’ businesses, even high-rise buildings. Not to mention airports & control towers, radio & TV stations and major plant like Oil Refineries.

Grid Power is not, and never has been, a 100% guaranteed service: if that’s a problem for your business, you need to mitigate that commercial risk.
Even if you’re a big factory or industrial site, there will be unplanned outages of the external power supply.
Even something as simple as a vehicle accident taking out a pole, an animal short-circuits

Good managers take out insurance against ‘threats’ to production/income, as an integral part of their formal Risk Management Strategy
This is not odd or extreme behaviour, certainly not in high-value industrial plant….

The Alcoa management right royally screwed over their owners and workers by failing to plan for the inevitable.
And somehow that is now the taxpayer’s responsibility?.....

If Alcoa are “losing $1M/day” from two thirds of its (electric) ‘pot lines’ being ‘frozen’ (the Aluminium set, or ‘froze’) how was unknown to the management?
Every blast furnace operator has exactly the same vulnerability - lose power and you lose your primary income producing asset.

The plant operators will know to the minute how long it takes to do orderly shutdown & startup of the entire production line.
This will be formally documented in fine detail, with many checks & contingencies included.

So why did the management deliberately decide to not ‘mitigate' against this extreme impact event and like thousands of large industrial plants around the country have enough on-site power generation to do a zero-damage shutdown?”

Remembering that Alcoa Australian Holdings Pty Ltd paid no tax and Alcoa Of Australia Limited paid minimal tax  in 2014-15, and probably paid even less last financial year, I think I agree with these two disgruntled men.

I don’t care that on 26 January 2017 The Australian reported that; The head of downsized US aluminium company Alcoa has given a commitment to finding a long-term power solution at its Portland aluminium smelter in the wake of Victoria’s $200 million power subsidy agreement, saying the smelter is “modern and competitive”. The comments were made in the company’s December quarter earnings call on Tuesday night, which discussed a strong result on the back of strong margins and sent shares of its Australian junior partner Alumina soaring 11 per cent to a two-year high.

Foreign-owned Alcoa Corp right royally screwed up and it’s not up to Australian taxpayers to take up the burden of smelter repairs in order to placate the company’s major shareholders.

I don’t care how many shares/units multimillionaire Prime Minister Malcolm Turnbull or members of his cabinet might hold in investment companies and banks on that list.

Adani Group in hot water on two continents?

In debt for billions, refused additional finance, under investigation in India and still before the courts in Australia – the rather suspect Adani Group is not starting the year on a high.

The Hindu,  8 May 2016:

Adani group (Gautam Adani)

The billionaire Gautam Adani’s Adani group, with Rs 96,031 crore debt, is under pressure to sell its stake in the Abbott Point coal mines, port and rail project. The Adani Group’s debt stands at Rs. 72,000 crore. Last year, Standard Chartered bank had recalled loans amounting to $2.5 billion as part of its global policy of reducing exposure in emerging markets. Global lenders have backed out from funding the $10-billion coal mine development project. State Bank of India has also declined to offer a loan despite signing an MoU to fund the group with $1 billion. An Adani spokesperson declined to offer any comments on the issue.

Times of India, 13 September 2016:

DRI has been investigating 40 power generating companies and traders for the past couple of years. According to DRI, some prominent public and private sector companies inflated the import value of coal beyond that prevailing in the international market. Some companies are also being probed for allegedly inflating the value of imported capital goods. According to DRI, power tariffs were fixed based on the inflated values, which resulted in consumers paying higher charges.

DRI has alleged that Adani Group and Essar have imported capital goods through intermediaries in tax havens. It claims that the companies' objective was to siphon off money abroad while availing higher power tariff compensation based on artificially-inflated costs of imported coal or capital goods.

While the coal was directly shipped from Indonesian ports to importers in India, the import invoices were routed through one or more intermediaries based in a third country such as Singapore, Dubai, Hong Kong and British Virgin Islands. These intermediary firms appear to be either subsidiaries of Indian importers or their front companies. This was the modus operandi used in the import of capital goods too. Investigations into overvaluation by other companies are still in progress.

Meanwhile, the Supreme Court has stayed an order of Appellate Tribunal for Electricity (APTEL) that directed the Central Electricity Regulatory Commission to award compensatory tariffs to Adani Power and Coastal Gujarat Power (Tata group) based on power purchase agreements for their power plants in Mundra. APTEL has also disallowed compensatory tariff to Adani Group's power plant at Tiroda in Maharashtra and Kawai in Rajasthan.

ABC News, 7 December 2016:

Traditional owners are set to launch further legal action against Adani's Carmichael coal mine slated for central Queensland.

The Wangan and Jagalingou people claimed the $22 billion project impinges on their native title rights, and would extinguish their interests over 28 square kilometres of land if it goes ahead.

Spokesman Adrian Burragubba said the group was running four separate legal challenges to the project, and vowed to continue fighting.

"We will continue to pursue all legal avenues, Australian and international, and put a stop to this disastrous project," he said.

"Our rights are not protected, and we will test the limits of the law in this country if need be, including all the way to the High Court."

Courier Mail, 11 December 2016:

Questions remain over how the Carmichael project will be funded.

Mr Buckley says the Adani group is among the most highly leveraged companies in India with net debt across the group of about $15 billion.

More than a dozen major international financiers have ruled out providing funds for the project.

ABC News, 22 December 2016:

The business behind the planned Carmichael coal mine in North Queensland is facing multiple financial crime and corruption probes, with Indian authorities investigating Adani companies for siphoning money offshore and artificially inflating power prices at the expense of Indian consumers.

Companies under scrutiny for the alleged corrupt conduct include Adani Enterprises Limited — the ultimate parent company of the massive mine planned for the Galilee Basin.

Two separate investigations into allegations of trade-based money laundering by Adani companies are underway — one into the fraudulent invoicing of coal imports and the other into a scam involving false invoicing for capital equipment imports.

"They are very serious allegations and they are being conducted by the premier Indian government agency investigating financial crime," Australia's foremost expert on money laundering, Professor David Chaikin of the University of Sydney, told the ABC.

"The allegations involve substantial sums of money with major losses to the Indian taxpayer."

Adani denies wrongdoing.

The "modus operandi" of the claimed fraud is outlined in a circular issued by India's Directorate of Revenue Intelligence, which was obtained by the ABC.

"Intelligence obtained by the Directorate of Revenue Intelligence indicated that certain importers of Indonesian coal were artificially inflating its import value as opposed to its actual value," Professor Chaikin said.

"The objective … appears to be two-fold: (i) siphoning off money abroad and (ii) to avail higher power tariff compensation based on [the] artificially inflated cost of the imported coal."

Five Adani Group companies are among a number of power companies named in the circular as under investigation.

These include Adani Enterprises Ltd, the ultimate parent company of the Adani entity, which holds the environmental approvals for the planned Carmichael Coal Mine and a railway to the mine.

Adani Enterprises Ltd has also been accused of involvement in large-scale illegal iron ore exports and bribery of public officials.

According to a 2011 report by the ombudsman of the Indian State of Karnataka, obtained by the ABC, police seized documents from Adani Enterprises in raids "which indicate that money has been regularly paid to port authorities, customs authorities, police department, mines and geology and even to MLAs/MPs".

The revelations come as the Federal Government considers granting Adani a $1 billion subsidy to build a railway from the Abbot Point Coal Terminal to the mine site 400 kilometres inland.

Just the sheer size and reach of the Trump Organisation's business interests has implications for U.S. foreign policy

For the last eighteen months in particular there has been media comment on the extensive business interests of U.S. president-elect Donald John Trump.

Since the November 2016 presidential election focus has intensified.

However, the U.S. Constitution drawn up in a simpler century teflon coats presidents - never having envisioned the likes of  Donald Trump.

The reach of Trump’s business interests are said to reach as far as Australia.

Given the man doesn’t seem to understand that the only ethical course would be to divest himself entirely of his business interests by placing them in a genuine blind trust not run by family members, close friends or business partners, so that both America and the world can have a measure of confidence in the his decision making as president, one can only look aghast at the potential for these business interests to fatally infect his presidency and U.S. foreign policy.

In July 2015 Donald Trump disclosed 515 U.S. and foreign corporations or partnerships in which he was either president, partner, chair, director, secretary, member and/or shareholder.

Forbes, 17 August 2015:

Under “Our Hotels” on the Trump Hotel Collection website, it lists six domestic hotels and six international hotels…..

The other hotels abroad are in Toronto, Doonbeg, Ireland, Vancouver, and Baku, Azerbaijan. (Toronto and Vancouver also have a Trump Tower.)

On the website for the Trump Real Estate Collection, nine international properties are listed, including two Trump Towers in India and one in Istanbul, another in Uruguay and another in the Philippines, as well as a Trump World in South Korea, among others.

Donald Trump has an interest in more than 30 U.S. properties, roughly half of which have debt on them according to The New York Times on 20 August 2016:

Debt on properties Mr. Trump owns or leases

PROPERTY	LOCATION	DEBT OUTSTANDING
40 Wall Street	Manhattan	157,400,000
Trump International Hotel*	Washington	127,000,000
Trump National Doral golf resort	Miami	125,000,000
Trump Tower	Manhattan	100,000,000
Trump International Hotel	Chicago	45,000,000
167 East 61st Street	Manhattan	14,500,000
Trump Park Avenue	Manhattan	12,495,000
Trump National Golf Club	Colts Neck, N.J.	11,700,000
4-8 East 57th Street "Niketown"	Manhattan	10,600,000
Seven Springs estate	Mount Kisco, N.Y.	8,000,000
Trump National Golf Club Washington	Potomac Falls, Va.	7,600,000
Trump International Hotel and Tower	Manhattan	7,000,000
Trump International Hotel**	Las Vegas	3,200,000
1094 South Ocean Boulevard	Palm Beach, Fla.	250,000
124 Woodbridge Road	Palm Beach, Fla.	250,000

*This construction loan was for $170 million. The Trump Organization and Times sources confirm roughly $127 million has been drawn down on.
**This loan was worth $110 million in 2010. The Trump Organization says a Trump entity is responsible for $3.2 million of the debt outstanding. The Times could not confirm this.

Debt associated with Mr. Trump's limited partnerships/investments

PROPERTY	LOCATION	PRC  OWNED	DEBT OUTSTANDING
1290 Avenue of the Americas	Manhattan	30	950,000,000
555 California Street	San Francisco	30	589,000,000
Starrett City / Spring Creek Towers	Brooklyn	4	410,000,000

Other:

An internal Trump Organization corporate loan, which Mr. Trump says is worth more than $50 million.

Sources: RedVision Systems, Securities and Exchange Commission, New York Times, Bloomberg data, Trump Organization.

The New York Times compiled these debt estimates using bank documents, public filings and through interviews with the Trump Organization and people familiar with the debt who asked not to be identified because they were not authorized to speak on the record about it.

The bulk of these liabilities appear to consist of mortgages maturing between 2016 and 2029.

The Washington Post, 16 September 2016:

U.S. Customs and Border Protection records, compiled by ImportGenius.com since 2007, give us a look at what has been imported by many of the businesses that are owned by Trump or use his name via licensing deals.

Trump has imported from the countries coloured red and many of the products bearing Donald Trump’s name appear to come from low-wage countries in East Asia.

Vodka

Trump licensed his name to the Israeli vodka after a 2011 legal battle. Unlike the original Trump vodka made in Holland, the new version was popular as one of the few liquors that’s kosher for Passover.

Barware

Made by a crystal company in a small town in Slovenia, its first entry into the U.S. market.

Ties

Made in countries such as China and sold on Amazon.com in nearly 200 patterns and sizes.

Mirrors

Made in China.

Accessories

Including cuff links, belts and eyeglasses made in China and other countries.

Fragrance

Trump’s cologne has been manufactured in and out of the United States.

Clothing

Trump makes his clothing line abroad. The manufacturers are generally scattered throughout East Asia and Central America.

Chandeliers and lamps

Some of these products retail for more than $4,000. Made in China.

Furniture

Trump Home sells furniture to consumers made in Germany and Turkey, but his own hotels often get furniture from massive distributors such as the multinational IHS Global Alliance.

Dutch-owned 'super' trawler "Geelong Star" has left Australian waters and will not be returning

Save Our Marine Life is celebrating the fact that the Dutch-owned factory trawler Geelong Star has left Australian waters and will not be returning.

The trawler has removed its Australian flag of convenience and been reflagged as Dutch – in the process its old name KW 172 Dirk Dirk has been re-instated.

ABC News reported on 24 November 2016 that:

The ship's departure came just before Labor and Greens members on a Senate committee recommended all mid-water trawlers be banned from fishing in Australian waters.

The committee had been investigating the environmental, social and economic impacts of super trawlers.

In 2012, ships known as super trawlers were prohibited from fishing in Australian waters, but the ban only applied to vessels over 130 metres, and not the Geelong Star, which is 95 metres.

Labor and Greens committee members also urged the Federal Government to appoint a National Recreational Fishing Council.

The report said public confidence in the management of Australia's fisheries needed to be enhanced, and it suggested the Australian Fisheries Management Authority publish information about fishing activity in the Small Pelagic Fishery regularly, such as bycatch quantities.

Liberal Senators Jonathon Duniam and David Bushby dissented from the recommendations, and said the Government was "committed to maintaining a balanced and science-based approach to all decisions regarding access to Commonwealth fisheries".

The Senate Standing Committees on Environment and Communications report into the Environmental, social and economic impacts of large-capacity fishing vessels commonly known as 'Supertrawlers' operating in Australia's marine jurisdiction was published in November 2016.

The Committee report stated:

1.46 The FV Geelong Star commenced fishing in the SPF on 2 April 2015.⁴⁰ The Geelong Star is a 3181 tonne factory freezer vessel with a hold capacity of 1061 tonnes. At 95.18 metres, the Geelong Star is the longest fishing vessel in the AFZ.⁴¹

1.47 The operation of the Geelong Star in the SPF is a joint enterprise between Seafish Tasmania and Dutch company Parlevliet & Van der Plas BV and its Australian subsidiary, Seafish Tasmania Pelagic Pty Ltd.⁴² The fish caught by the Geelong Star is shipped to export markets, usually in West Africa.⁴³

1.48 AFMA was notified that Seafish Tasmania had nominated the Geelong Star to fish its concessions in the SPF on 12 February 2015. Following registration of the Geelong Star as an Australian-flagged boat by the Australian Maritime Safety Authority,⁴⁴ AFMA confirmed that the vessel met its requirements. The Geelong Star commenced fishing in the SPF on 2 April 2015. As the Geelong Star is less than 130 metres in length, it is not affected by the ban introduced by the government in April 2015….

1.50 Since it commenced operating, AFMA has initiated various regulatory measures in response to mortalities of protected species caused by the operations of the Geelong Star. Various stakeholders are also concerned about the effect of the trawler's operations on other commercial fishing operations and recreational fishing activities. Both the fishing activities of the Geelong Star and the regulatory approach taken by AFMA have attracted controversy. 

1.51 Environmental non-government organisations expressed opposition to the activities of the Geelong Star and the approach taken to managing the SPF. Environment Tasmania and the Australian Marine Conservation Society both called on the government to 'enact a permanent ban on the operation of factory freezer trawlers in the Small Pelagic Fishery'.⁴⁵ The Conservation Council SA provided a list of recommendations regarding potential localised depletion, adverse environmental effects, how to minimise impacts on protected species and the presence of AFMA observers on the vessel. The Conservation Council SA called for vessels such as the Geelong Star to be banned from the fishery 'until management strategies', including the recommendations outlined in its submission, 'are in place to effectively minimise impacts on protected species'.⁴⁶

1.52 Recreational fishing interests are another key stakeholder group. Submitters in this group expressed concern about potential repercussions for the Australian recreational fishing sector from the operations of the Geelong Star. The Australian Recreational Fishing Foundation (ARFF) called for a moratorium on 'industry scale' fishing in areas of the SPF that are of concern to the recreational fishing sector. The ARFF argued that this moratorium should remain in place 'until a comprehensive assessment has been conducted to determine whether industrial scale fishing of the SPF is the highest and best use of the SPF, in our nation's interest and whether the small pelagic fishery should be commercially fished at all'.⁴⁷

1.53 Seafish Tasmania, the operator of the Geelong Star, argued that the use of a factory freezer trawler such as the Geelong Star is the only way that operations in the SPF can be commercially viable. Seafish Tasmania also advised that, over 11 years, it has worked within the regulatory arrangements to assist in developing management plans and strategies 'that support the sustainable management of the SPF'.⁴⁸ Seafish Tasmania added: 

The current management regime in the SPF, and in particular the conditions applied to the Geelong Star, are extremely strict. Clearly, they are designed  

to provide a high degree of public confidence that the operations of the vessel are being closely monitored and managed.⁴⁹

1.54 Seafish Tasmania concluded: 

The company has made substantial investments in supporting scientific surveys and more recently in bringing freezer trawlers from Europe to catch our quota and to produce high quality fish for human consumption. It is time to let us get on with the job of catching our quota.⁵⁰

1.55 Seafish Tasmania and the Small Pelagic Fishery Industry Association (SPFIA) also argued that the science-based management of the fishery and the statutory fishing rights associated with the vessel should be respected. For example, the SPFIA submitted: 

The impact of the continued political interventions in the management of the Small Pelagic Fishery is being felt well beyond the confines of this Association. Although SPF quota holders are effectively the primary target of the political attacks, there is widespread erosion of industry confidence in the ability of AFMA to manage fisheries in an independent, non-political and science based manner. Consequently, industry confidence in the quality and security of their Statutory Fishing Rights is being steadily undermined. 

In these destabilising circumstances, it should not be surprising if industry were to take a shorter term view of their investments reflecting the increased political risk being faced. This is exactly the situation that Government sought to avoid by providing the fishing industry with well defined, long term secure fishing rights to inspire operators to take economically responsible decisions and to look after the marine resources on which their businesses depend.⁵¹

1.56 Other commercial fishing interests urged the committee and other interested stakeholders to separate concerns about factory freezer vessels operating in the SPF, where resource sharing issues involving recreational fishers are important, and the operation of factory freezer trawlers in other fisheries. Petuna Sealord Deepwater Fishing, which has operated a factory freezer vessel in the blue grenadier fishery since 1988, urged the committee to separate 'what we see are two dissimilar issues', namely concerns about 'super trawlers' in the SPF and the operation of factory freezer trawlers elsewhere. It explained: 

The current community concern which has led to this inquiry is not necessary driven by the size or freezing capacity of the vessel or the science of the fishery, as evidenced in the blue grenadier fishery, but centres around resource sharing and access to a fish species that recreational fishers consider is a significant driver in maintaining healthy populations of key recreational species.⁵²……..

1.62 The Geelong Star is 95 metres long and, therefore, is not covered by the 130-metre definition of super trawler used for the ban. Nevertheless, the Geelong Star has commonly been referred to as a super trawler, including by the media and state governments.⁵⁸ In addition, some of the concerns expressed by groups that opposed the Margiris have similarly been applied to the Geelong Star. Some submitters also argued that there is only a marginal difference in the quota allocated to the Abel Tasman, which was banned, and vessels such as the Geelong Star that are not.⁵⁹ Other submitters, however, maintain that 'there is no correlation between vessel size and fishing power'.⁶⁰

1.63 On this issue, Mr Allan Hansard, Managing Director, Australian Recreational Fishing Foundation, commented: 'It is not necessarily the size of the boat; it is that intensity that we need to really focus on in this case'.⁶¹

1.64 From the perspective of the Stop the Trawler Alliance, which is an alliance of environment, fishing and tourism organisations established in 2012 in response to the Margiris, the principal issue is that a factory freezer vessel is operating in the SPF, not that a vessel of a certain size is operating.⁶²......

The end result was this:

Recommendation 1 

6.22 The committee recommends that the Australian government ban all factory freezer mid-water trawlers from operating in the Commonwealth Small Pelagic Fishery.

The full report can be read here.

Because the recommendation is not yet reflected in legislation and because there is some uncertainty about the reasons the trawler vacated Australian waters as well as a fear it may eventually return, concerned people should write to Deputy Prime Minister, Minister for Agriculture and Water Resources, Barnaby Joyce MP and Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston who have portfolio responsibility for fisheries management and to their federal MP calling on government to permanently ban all freezer mid-water trawlers from operating in Australian Small Pelagic Fisheries.

Save Our Marine Life has started a petition here. 

Multinational gas and petroleum giant BP withdraws from offshore exploration in the Great Australian Bight - for now.

Multinational gas and petroleum giant BP plc (British Petroleum) operating as BP Developments Australia Pty Ltd (BP), in its capacity as operator of the proposed Great Australian Bight (GAB) Exploration Drilling Program has announced that:

We have looked long and hard at our exploration plans for the Great Australian Bight but, in the current external environment, we will only pursue frontier exploration opportunities if they are competitive and aligned to our strategic goals. After extensive and careful consideration, this has proven not to be the case for our project to explore in the Bight.

Concerned citizens and environmental groups can see this as a win – even if business economics and the risk profile for mega storm in the Great Australian Bight may have had a much to do with this decision as the strength of community opposition.

However, it should be noted that BP does not appear to be abandoning its offshore petroleum exploration leases in the GAB which don’t expire until 2020* and, this multinational is not the only oil and gas corporation with exploration licenses in the area - Santos, Chevron and Murphy Australia Oil received exploration permits in 2013-2015 which are current until 2020-2021, Karoon Gas has a permit current until 2022, joining a Bight Petroleum Pty Ltd presence there not due to end until 2020-21.

Petroleum exploration leases current in GAB in 2016

Nor has the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) indicated that it is averse to further mining exploration being undertaken in the Great Australian Bight.

* BP had guaranteed to undertake exploration worth about $605 million and drill four exploration wells in 2016-17 and under a “Good Standing Agreement” entered into with the federal government it is reportedly liable for that amount unless it commits to a new project within Australia or its Norwegian joint venture partner StatOil decides to exercise an option to proceed with the GAB exploration program.

The trouble with blueberries....

An Coffs Harbour man and a Canadian multimillionaire decide to farm water-hungry blueberries in the Clarence Valley.

The Daily Examiner, 3 October 2016, p.12:

VOICES FOR THE EARTH

Media reports in August of a proposed 850 hectare blueberry development at Bawdens Bridge raise serious issues that add to growing community concerns about the industry.

The application to Water NSW to extract 66ML of water annually from the Orara River indicated the proposed orchard size would be just 30 hectares.

In a meeting with concerned neighbours, the proponent scoffed at rumours they intended to plant as much as 100ha, explaining there just wasn't enough available water.

That comment is supported by the Department of Primary Industry's Primefacts which states: "Water storage facilities of 2-3 megalitres per hectare are required for blueberry production".

Currently there is only 90ML available to the proponent as a harvestable right (collected run-off in dams), plus the 66ML from the river if the licence is approved. So where will the remaining 2000ML come from, and how will it be stored?

Council's director environment, planning and community, Des Schroder, was quoted in the media, describing the partnership between a Coffs Harbour grower and Vancouver businessman Luigi Aquilini, as providing "a multi- national presence in the region", and seemingly in awe of Mr Aquilini describing him as, "a Rupert Murdoch figure in Canadian business circles".

However, as the former manager of the NSW Department of Land and Water Conservation, Mr Schroder should be well aware that, in a drought year, there would be insufficient water in the Orara River to pump at all, much less irrigate 850ha of blueberries.

Proponents engaged in intensive horticulture can legally clear native vegetation, even supposedly protected vegetation, to build massive harvestable rights dams, and can transform the rural landscape into an industrial complex, covered end to end by netting or plastic, without applying for approval, or any need to consult honestly with neighbours.

So the industry needs to do much more to change that perception, and open and transparent consultation would be a good way to start.

John Edwards

Clarence Valley Conservation Coalition

BACKGROUND

The Land, 19 August 2016:

THE sale of Grafton’s old abattoir to Golden Eagle Berries and its planned conversion to packing and cold store signals a new direction for the Clarence Valley with the business saying it will require 1200 picking jobs by 2018 – as much as the abattoir ever used to employ.

Clarence land previously deemed too poor for agriculture remains very attractive to the industry as blueberry shrubs prefer an acid soil, well draining.

Last year Mr Dosanjh formed a partnership with Vancouver businessman Luigi Aquilini and together they are growing blueberries on 120ha at Clarenza and will develop another 850ha at Waterview Heights.

Mr Dosanjh is both excited and a little frightened of a bright berry future in the valley. There is potential for employment and career paths but high prices are overdue for correction. The new reality will require smart farming.

“Unless we can export blueberries the industry may go the way of bananas,” says Mr Dosanjh.

Fruit fly protocall for markets like Japan remains the greatest obstacle but cold storage at low temperatures will kill fruit fly larvae.

NSW Government Gazette No 21 of 24 March 2016:

WATER ACT 1912

An application under section 10 of the Water Act 1912 for a 150 Megalitre dam & 150mm pump on UNNAMED WATERCOURSE has been received from HARJAP SINGH DOSANJH for irrigation and farming purposes (150 megalitres) on Lot 137 DP 751362 Parish Clarenza County Clarence. (30SL067326)

An application under section 10 of the Water Act 1912 for a 150mm pump on ORARA RIVER has been received from DOSANJH INVESTMENTS PTY LTD for irrigation and farming purposes (66 megalitres) on Lot 262 DP 751383 Parish Rushforth County Clarence. (30SL067327)

Objections to the granting of this licence must be registered in writing to Locked Bag 10, Grafton NSW 2460 within 28 days of this notice. The objection must include your name and address and specify the grounds of objection. Any queries please call (02) 6641 6500.

PETER HACKETT Water Regulation Officer. Department of Primary Industries (DPI) Water

Clarence Environment Centre Newsletter Winter 2016:

There is no gazetted Water Sharing Plan for the Clarence River, with only a Draft Report Card for the Lower Orara River available on the DPI web site, which is now rendered obsolete by the permanent closure of the Nymboida Power Station.

We also learned that the proponent had already begun work on a very large dam on a local creek line known as “Chain of Ponds”, removing some 300m of gully vegetation. Enquiries to Council revealed that, despite the Local Environment Plan clearly indicating the water storages cannot be built on land of that zoning, the proponent can in fact construct a dam big enough to store the property's harvestable rights, without any approval. Those rights, for the 1000 hectare plus property, amount to some 90 megalitres annually.

Because blueberries are highly chemical dependent, there are other matters of concern, particularly the potential for pollution of the Orara River, which runs along the property's boundary. Pollution could impact on threatened species like the endangered Eastern Freshwater Cod, and the unique riparian vegetation community. Dominated by a mix of Black Bean (Castanospermum australe), Silky Oak (Grevillea Robusta) and Satinash (Syzygium floribundum), that community, to the best of our knowledge, only occurs along the lower reaches of the Orara and nowhere else in the world.

Vancouver Sun, 9 September 2013:

a vast family empire that owns the Vancouver Canucks hockey team, development companies, investment and hotel properties, North America’s largest blueberry and cranberry farms, and a lot more. The empire is wrapped up tightly in an extraordinarily complex trust system that Francesco’s father Luigi set up years ago to protect the family assets for his wife Elisa, their three sons Francesco, Roberto and Paolo, and others.

The multinational Aquilini empire outlined here.