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Regulatory Impact Statement REGULATORY IMPACT STATEMENT Heritage (Historic Shipwrecks) Regulations 2007 March 2007 This Regulatory Impact Statement (RIS) has been prepared to facilitate public discussion on the proposed Heritage (Historic Shipwrecks) Regulations 2007 Copies of the draft Regulations 2007 are provided as an attachment to this RIS. Public comments and written submissions are invited on the proposed Regulations in response to information provided in the RIS. All submissions will be treated as public documents. Liz Kilpatrick Project Officer Heritage Victoria Department of Sustainability and Environment P O Box 500 East Melbourne, Victoria 3002 Email: [email protected] © The State of Victoria, Department of Sustainability and Environment, 2006 A Victorian Government Publication This publication is copyright. No part may be reproduced by any process except In accordance with the provisions of the Copyright Act 1986. Prepared by Peter Day Consulting Pty Ltd for the Department of Sustainability and Environment Published by the Department of Sustainability and Environment, Built Environment Division, 8 Nicholson Street, East Melbourne, Victoria 3002. www.dse.vic.gov.au ISBN 1 74152 444 X This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. CONTENTS EXECUTIVE SUMMARY 1 1. INTRODUCTION 3 1.1 Background 1.2 The Regulatory Framework 2. THE NATURE AND EXTENT OF THE PROBLEM 6 2.1 Background 2.2 Threats to Historic Shipwrecks 2.3 City of Launceston Historic Shipwreck Protected Zone 2.4 Summary of Problems 3. THE OBJECTIVES 13 3.1 Primary Objectives 3.2 Secondary Objectives 4. THE PROPOSED REGULATIONS 14 4.1 Legislative Power 4.2 Affected Parties 4.3 The Proposed Regulations 4.4 Summary of Impact Analysis 4.5 Enforcement of Proposed Regulations 4.6 Consultation 4.7 Interstate Legislation 5. COSTS AND BENEFITS OF PROPOSED REGULATIONS 21 5.1 Analytical Framework 5.2 The Base Case 5.3 Benefit/Cost Impact Assessment of Proposed Regulations 5.4 Summary of Cost and Benefit Assessment 6. OTHER MEANS OF ACHIEVING THE OBJECTIVES 29 6.1 Introduction 6.2 Voluntary Industry Code of Practice – Option 1 6.3 Fees apply only for Commercial Access – Option 2 6.4 Conclusion 7. NATIONAL COMPETITION POLICY ASSESSMENT 34 7.1 Policy Background 7.2 Definition of Market 7.3 Test for Restriction on Competition APPENDIX 1: PROPOSED FEES FOR PERMITS Attachment 1: Capital and Ongoing Costs for C ity of Launceston Access & Anticipated Visitation Rates APPENDIX 2: VICTORIA’S PROTECTED ZONES APPENDIX 3: PROPOSED REGULATIONS Regulatory Impact Statement Proposed Heritage (Historic Shipwrecks) Regulations 2007 HERITAGE (HISTORIC SHIPWRECKS) REGULATIONS 2007 REGULATORY IMPACT STATEMENT EXECUTIVE SUMMARY The single greatest threat to historic shipwrecks is disturbance. Removing concretions from ferrous metals and timbers removes the protective sedimentary covering and re- exposes the object to accelerated corrosion rates. The removal of concretions themselves can also remove any potential to lift impressions where the enclosed object has disappeared. Disturbance occurs where a diver wittingly or unwittingly disturbs the shipwreck. Divers looting a shipwreck site reduce the intrinsic value of the site by removing artefacts as well as accelerating the deterioration process by disturbing the site. Despite a significant and ongoing education program directed to diving, boating and fishing groups, as well as to the wider community, and despite also the extensive national publicity given to an amnesty proclaimed in 1993 which members of the community holding undeclared artefacts were able to register those artefacts without fear of prosecution, a small number of irresponsible people continue to engage in actions which constitute a major threat to our maritime heritage or which are contrary to public safety policies. In order to effectively manage visitation to particularly sensitive sites, capital investment on mooring facilities is being made by Heritage Victoria. These costs are proposed to be recovered through a new category of permit fee. Victoria’s Heritage Act 1995 was passed to provide for the protection and conservation of places and objects of cultural heritage significance and the registration of such places and objects. One of the most significant provisions of the Act is the ability to register an area of up to 100 hectares in Victorian waters as a protected zone. The purpose of such zones is to protect historic shipwrecks or historic relics which are particularly vulnerable to looting or other physical disturbance or to ensure the safety of the public. Of the almost two hundred wrecks currently protected under the Victoria’s Heritage Act, six are protected by Historic Shipwreck protected zones. The Heritage (Historic Shipwrecks) (General) Regulations 1996 were made to improve the management of historic shipwreck sites and the cultural material they contain; particularly those shipwrecks which are located within registered protected zones because of their exceptional cultural significance or vulnerability to disturbance, or for reasons of public safety. 1 Regulatory Impact Statement Proposed Heritage (Historic Shipwrecks) Regulations 2007 A further objective of the Regulations was to provide an administrative framework to enable the efficient operation of the Act in so far as it applies to historic shipwrecks and historic shipwreck relics. The Regulations set the fees for permits required under the Act and incorporate various administrative measures necessary for the efficient implementation of the Act. The Regulations expire on 25 August 2007 under the sunsetting provisions of the Subordinate Legislation Act 1994. This Regulatory Impact Statement (RIS) examines the costs and benefits of proposed replacement Regulations that are attached. The proposed Regulations are essentially the same as the existing Regulations and have the same objectives. Two new fees are proposed to cover the circumstances where Heritage Victoria has provided infrastructure near particular historic shipwrecks to facilitate access. Because of the intangible nature of the subject material a balanced scorecard approach has been adopted in the assessment of costs and benefits as provided in the Victorian Guide to Regulation .1 This assessment shows a strong positive outcome for the proposed Regulations. In considering the most effective means to achieve the objectives consideration has been given to two alternatives to the proposed Regulations, namely: • the introduction of a voluntary Code (or Codes) of Practice for divers, fishers, boat operators and other people likely to undertake threatening activities in a protected zone; and • fees to only apply for commercial access. The balanced scorecard approach was also used to assess each Option. Both returned negative or zero impacts from the assessment and are therefore considered inferior Options to the proposed regulatory approach. The proposed Regulations were assessed for any restriction on competition. The assessment shows that the regulations do not limit the entry to this market in any way, and all businesses within the market will be equally affected. Therefore, the proposed Regulations do not contain a restriction on competition. Moreover, the possible markets are not restricted by the proposed Regulations as barriers to competition do not apply. 1 Victorian Guide to Regulation incorporating Guidelines made under the Subordinate Legislation Act 1994 , February 2005, published by the Department of Treasury and Finance, State of Victoria 2005, page 5-13. 2 Regulatory Impact Statement Proposed Heritage (Historic Shipwrecks) Regulations 2007 1. INTRODUCTION 1.1 Background Victoria has approximately 673 shipwrecks scattered around its coastline and within its bays and estuaries. Of these, 259 are situated in State waters, and 187 are currently protected by the provisions of the Heritage Act 1995. Historic shipwrecks and their relics are an extremely important component of Victoria’s cultural heritage. They provide recreation, tourism, education, and research opportunities to a wide client base. The nature of their occurrence as often unplanned events ensures that, undisturbed, they provide a valuable insight to the past. The romance associated with the sea and shipwrecks, and images of treasure for the taking, have unfortunately resulted in the loss of much of the information that could otherwise have been obtained. The unlawful and irresponsible removal of artefacts from shipwrecks by a small minority of divers, without appropriate recording, destroys the context of those artefacts and hence the greater part of their archaeological value. More importantly, a near equilibrium is reached between the wreck and its environment over many years and the rate of physical deterioration becomes extremely low. Fresh disturbances to the wreck or its artefacts can greatly accelerate the deterioration processes and, as a consequence, may cause irretrievable losses of both the objects and the information they can provide. The information preserved in archaeological sites often reveals details not found in historical records. Shipwrecks by their nature as accidental events provide for a very candid archaeological record. Illegal behaviour which, for obvious
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