(Question No. 685)
Senator Ludlam asked the Minister representing the Minister for Foreign Affairs, upon notice, on 14 June 2011:
In regard to the Voluntary Principles on Security and Human Rights (the Principles).
(1) Is the Government aware that the Principles are widely recognised as a leading voluntary, multi-stakeholder initiative designed to provide guidance to extractives companies on maintaining the security of their operations in a manner that respects human rights and fundamental freedoms.
(2) Is the Government aware that the Governments of Canada, Norway, the Netherlands, Colombia, Switzerland, the United Kingdom and the United States of America actively participate in and promote the Principles.
(3) Why has the Government to date refused to join the Principles.
(4) What is the Government doing to ensure that Australian companies operating as ‘high risk’ companies comply with the Principles and do not, through their security arrangements, cause harm to local communities.
(5) Will the Government consider supporting the Principles.
(6) Does the department currently promote the Organisation for Economic Co-operation and Development [OECD] Guidelines for Multinational Enterprises and responsible mining by Australian companies overseas; if so, how.
Senator Conroy: The Minister for Foreign Affairs has provided the following answer to the honourable senator’s question:
(1) Yes, the Government is aware of the Principles as well as the many other corporate social responsibility frameworks that cover human rights, including the UN’s recently endorsed Guiding Principles on Business and Human Rights (also known as the ‘Protect, Respect and Remedy’ framework or the Ruggie report), the Global Compact, the Global Reporting Initiative and others.
(2) Yes.
(3) and (5) The Government is currently considering the issue of joining the Voluntary Principles in the context of the many other international corporate social responsibility initiatives open to governments and business.
(4) The Government by definition can only encourage, rather than ensure, compliance with a voluntary framework. However, the Government actively encourages Australian companies to develop sound and robust policies, including for their security arrangements, for operations overseas. This includes promoting sector specific programs such as the Department of Resources, Energy and Tourism’s Leading Practice Sustainable Development Program for the Mining Industry and broader initiatives such as the OECD Guidelines for Multinational Enterprises (the OECD Guidelines). The Government also expects Australian companies to abide by the rules of the jurisdiction in which they operate.
(6) The Treasury hosts Australia’s National Contact Point for the OECD Guidelines and has primary responsibility within the Government for its promotion to Australian companies. The Australian National Contact Point liaises with Australian businesses and peak business organisations in addition to other stakeholders (a wide range of NGOs) on a regular basis and also hosts a website www.ausncp.gov.au The Treasury, including the Australian National Contact Point, also conducts regular briefing to Australian government representatives overseas on corporate social responsibility issues. The Department of Foreign Affairs and Trade also conducts industry outreach activities on “trading with integrity” on a regular basis to highlight Australian laws applying to Australian companies trading internationally. As part of this outreach, the Department actively promotes both the OECD Guidelines as well as the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones.