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INTERNATIONAL FINANCIAL INSTITUTIONS (SHARE INCREASE) BILL 1986

Order of the Day read for the adjourned debate on the motion of the Minister for Community Services (Senator Grimes)-That this Bill be now read a second time.

Debate resumed.

Senator Mason moved an amendment, viz: At end of motion, add "", but the Senate is of the opinion that the Treasurer, as Governor for Australia of the International Bank for Reconstruction and Development, and as Governor for Australia of the International Finance Corporation, should-

(a) vigorously promote a commitment of these institutions to add or strengthen professionally trained staff to undertake environmental review of projects, or have development management plans to increase substantially the environmentally trained staff engaged in review of the ecological impact of prospective projects;

(b) vigorously promote changes in these institutions in their preparation of projects and country programs that will encourage staff and borrower countries to:

i(i) actively and regularly involve environmental and health ministers, or comparable representatives, in the preparation of environmentally sensitive projects and in bank-supported country program planning and strategy sessions, and

(ii) actively and regularly use the resources of available non-governmental conservation and indigenous peoples' organisations, consistent with international procurement policies, in the preparation of environmentally sensitive projects and in bank-supported country program planning and strategy sessions;

(c) vigorously promote a commitment of these institutions to increase the proportion of their lending programs supporting environmentally beneficial projects and project components, protection of indigenous peoples, and appropriate light capital technology projects (examples of such projects include small scale mixed farming and multiple cropping, agroforestry, programs to promote kitchen gardens, watershed management and rehabilitation, high yield woodlots, integrated pest management systems, dune stabilization programs, programs to improve energy efficiency, energy efficient technologies such as small scale hydro projects, rural solar energy systems, and rural and mobile telecommunications systems, and improved efficiency and management of irrigation systems);

(d) vigorously promote the establishment within the International Bank for Reconstruction and Development of a component which would provide training in environmental and natural resource planning and program development;

(e) ensure that there is a thorough evaluation within the Australian Government of the potential environmental problems, and the adequacy of measures to address these problems, associated with all proposed loans for projects involving large impoundments of rivers in tropical countries, penetration roads into relatively undeveloped areas, and agricultural and rural development programs (the potential environmental problems to be addressed in such evaluations to include those relating to deterioration of water quality, siltation, spread of water borne diseases, forced resettlement, deforestation, threats to the land, health and culture of indigenous peoples, topsoil management, water logging and salinization in irrigation projects, and pesticide misuse and resistance);

(f) call for, by 30 June 1987, separate and special meetings of each of the Boards of Governors of these institutions to discuss their environmental performance, and ways in which this performance can be improved, including alternative projects considered and alternative configurations of projects with specific attention to environmental problems associated with the following categories of projects: large impoundments of rivers in tropical countries, penetration roads into relatively undeveloped areas, and agriculture and rural development projects;

(g) in preparation for the meetings referred to in paragraph (f), request the preparation of reviews by the institutions, from available information, of their environmental performance over the past decade with respect to the categories of projects referred to in paragraph (f), and request that these reviews specifically discuss the environmental problems explicitly referred to in paragraph (e); and

(h) prepare and submit to the Parliament by 30 June 1988 a report documenting the progress the institutions have made in implementing the environmental reform measures described in paragraphs (a) to (d)''.

Debate continued.

Question-That the words proposed to be added be added-put.

The Senate divided

AYES, 7

Senators- Haines Macklin (Teller) Mason Powell Sanders Siddons Vigor

NOES, 53

Senators- Archer Aulich Baume, Michael Baume, Peter Bjelke-Petersen Black Boswell Brownhill Carrick, Sir John Childs Coleman Collard Colston Cook Crichton-Browne Crowley Devlin Durack Elstob Evans Foreman Gietzelt Giles Grimes Jones Kilgariff Knowles Lewis MacGibbon McIntosh McKiernan Maguire Messner Morris Newman Parer Puplick Ray Reid Reynolds Richardson Robertson Ryan Sheil (Teller) Short Sibraa Tate Townley Vanstone Walsh Walters Watson Zakharov

And so it was negatived.

Question-That this Bill be now read a second time-put and passed.

Bill read a second time.

The Senate, according to Order, resolved itself into Committee for the consideration of the Bill.

In the Committee

Bill, by leave, taken as a whole and agreed to.

Bill to be reported without amendment.

The Deputy-President (Senator Hamer) resumed the Chair; and the Temporary Chairman of Committees (Senator Townley) reported accordingly.

On the motion of Senator Grimes the Report from the Committee was adopted, and the Bill read a third time.