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THE ENVIRONMENTAL CHALLENGE to the OVERLOADED STATE : the POLITICS of TOXIC CHEMICALS in NSW SINCE the LATE 1970S

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THE ENVIRONMENTAL CHALLENGE to the OVERLOADED STATE : the POLITICS of TOXIC CHEMICALS in NSW SINCE the LATE 1970S THE ENVIRONMENTAL CHALLENGE TO THE OVERLOADED STATE : THE POLITICS OF TOXIC CHEMICALS IN NSW SINCE THE LATE 1970s Submitted for the degree of Doctor of Philosophy Suzanne Benn 1999 DEDICATION This thesis is dedicated to my supervisor, Professor Gavan McDonell, to my partner, Andrew Martin, and to my three sons, Steven, Andrew and Thomas Benn. To Gavan McDonell, whose understanding of the complexity and interdisciplinarity of environmental issues is so inspirational, I am indebted not only for his intellectual leadership, but for his equally remarkable humanity and humour. To Andrew Martin, I owe thanks for his boundless enthusiasm and insightfulness, for our many discussions in which his legal mind has dissected out some of my woollier abstractions and for the loving support of a close relationship. To my sons, of whom I am so proud, I am beholden for the pride that they, in turn, have shown towards this project. For the sake of their trust in me alone, I could never have given it up. And to my good friends, who have tolerated my preoccupations, can I say only that this thesis has been truly a `rite of passage'. To grapple with the politics of sustainability is to recognise the enormity of the problems that lie ahead and the preciousness of what we stand to lose. To all of you, my thanks for your patience and support. Abstract This thesis is a regional interdisciplinary analysis of the environmental challenge to the liberal democratic state. It situates these new problems of governance in one of the dominating political conflicts of our time, the battle between market and state for the ‘commanding heights’. By the end of the 1970s, environmental concerns had added to the social crises associated with the overloaded, welfare state. The study sets the political context through an exposition of the perceived problems of the overloaded state, analysed by neo-Marxist theorists in terms of rationality and legitimacy deficits and by public choice theorists in terms of the incentives and calculations confronting rational individuals. It draws out the association between these alternative perspectives on ‘state overload’ and the political philosophies of corporatism and neo-liberalism, showing that, on the neo-Marxist understanding, corporatism addresses the functional requirements of late capitalism, while public choice precepts are strongly influential on leading elements of neo-liberalism. This political analysis is developed through the history of a landmark piece of legislation, the Environmentally Hazardous Chemicals Act (NSW) 1985, in toxic chemicals policymaking from the late 1970s to the end of 1997. The interpretation of the case material shows that the response in NSW to the environmental problematic has been driven by the reform agenda of the successive political programs of corporatism and neo-liberalism for the state, the bureaucracy and the democratic process. Neither the corporatist nor the neo-liberal programs succeeded in meeting environmental criteria. Examination of the inadequate responses of both corporatism and neo-liberalism, when measured against sustainability criteria, leads to a deeper understanding of the institutional reforms required if these criteria are to be addressed. The thesis concludes that the failure to effect successful reform of toxic chemicals policy in NSW reflects the failure of leading political theorems of the liberal democratic state to incorporate sustainability criteria successfully into their reform agenda for the state, the bureaucracy and the democratic process. These regional issues are shown to be thematic for the nation-state when raised in the context of the globalisation of the environmental challenge and the internationalisation of market forces. The thesis concludes with a brief review of some recent political theory in relation to the programmatic issues of sustainability and democracy which it has pursued. THE ENVIRONMENTAL CHALLENGE TO THE OVERLOADED STATE: THE POLITICS OF TOXIC CHEMICALS IN NSW SINCE THE LATE 1970s Table of Contents SECTION A Theoretical Understandings of the Overloaded State Chapter 1 Introduction: the Environmental Challenge to the Nation-state and the Global Order 1.1.0 The environmental challenge and the Australian state 1.2.0 The purpose of the study 1.2.1 The argument 1.2.2 A case study of the EHCA (NSW) 1985 1.3.0 Theme (1): theoretical understandings of the overloaded state 1.3.1 Neo-Marxist systems theory in brief 1.3.2 Public choice theory in brief 1.3.3 The environmental problematic and the emergence of sustainability principles 1.3.4 Programmatic applications and institutional reform agenda 1.4.0 Theme (2): political responses in NSW to the environmental challenge 1.4.1 The corporatist response to the first phase of the environmental challenge 1.4.1.1 Results of the first phase of reform 1.4.2 The second phase of the environmental crisis and the programs of the individualist state 1.4.2.1 Results of the second phase of reform 1.5.0 Theme (3): theoretical bases of contemporary political programs 1.5.1 Neo-Marxist analysis and the corporatist phase 1.5.1.1 Neo-Marxist theory and sustainability deficits 1.5.2 Public choice theory and the individualist phase 1.5.2.1 Public choice theory and sustainability deficits 1.6.0 Conclusion: the failure of established programs 1.6.1 Thematic issues: sustainability at the global level 1.6.2 Recent theoretical developments Chapter 2 Theoretical Analysis and Political Prescriptions: the Overloaded State in the Context of Sustainability Criteria 2.1.0 Introduction: theories of the overloaded state 2.1.1.0 Neo-Marxist deficit theory 2.1.1.1 Rationality deficits 2.1.1.2 Legitimacy deficits 2.1.2.0 Public choice theory 2.2.0 Analytical theme (1): the new challenges of sustainability criteria 2.2.1 Implications for the overloaded state 2.3.0 Analytical theme (2): institutional targets of political reform 2.3.1 The state as coordinator 2.3.2 The bureaucracy as agent 2.3.3 The democratic process as legitimator 2.4.0 Fields of application theme (3): the programmatic responses to the problems of the overloaded state 2.4.1 The rise of the corporatist state 2.4.1.1 Reform agenda for the state 2.4.1.2 Reform agenda for the bureaucracy. 2.4.1.3 Reform agenda for the democratic process 2.4.2 The rise of the individualist state 2.4.2.1 Reform agenda for the individualist state 2.4.2.2 Reform agenda for the bureaucracy 2.4.2.3 Reform agenda for the democratic process SECTION B A Regional Case Study of Toxic Chemicals Policymaking: the History of the EHCA (NSW) 1985 Chapter 3 The First Phase of the Environmental Challenge: the EHCA (NSW) 1985 in its Political and Regulatory Context 3.1.0 The first phase of the environmental challenge 3.1.1 The political context: the interventionist state in Australia 3.1.1.1 The rise of corporatism in Australia 3.1.2 The regulatory context: command and control 3.2.0 The push for reform 3.2.1 The EHCA (NSW) 1985 as landmark legislation 3.2.2 The drafting and implementation of the EHCA (NSW) 1985: the politics of corporatism 3.2.2.1 Industry and insider status 3.3.0 Results of the first phase: the EHCA (NSW) 1985 as a record of corporatist failure 3.3.1 Administrative and legitimacy deficits Chapter 4 From the Corporatist State to the Devolving State: the EHCA (NSW) 1985 and the Second Phase of the Environmental Challenge 4.1.0 The second phase of the environmental challenge 4.1 1 The political context: neo-liberalism and the heterogeneity of environmentalism 4.1.2 The regulatory context: stepping back from intervention 4.2.0 The fate of the EHCA (NSW) 1985 and the politics of neo-liberalism 4.2.1 Consolidation and restructuring measures 4.2.2 The shift to economic policy tools 4.2.3 Devolution and self-regulation measures 4.3.0 Critique of the second period of environmental reform: introduction 4.3.1 The background: federal deregulation 4.3.2 Devolution of authority and expanded state functions 4.3.3 Co-operation, bureaucratic territoriality and corporate capture 4.3.4 Considerations of equity and trust 4.4.0 Results of the second period of environmental reform 4.4.1 Administrative and legitimacy deficits 4.5.0 Conclusion SECTION C Two Decades of Toxic Chemicals Management: Sustainability and Policy Failure Chapter 5 The Overloaded State and the Politics of Corporatism: Analysis of the Corporatist Response to the Environmental Challenge 5.1.0 The EHCA (NSW) 1985 as a corporatist response 5.1.1 The EHCA (NSW) 1985 and the corporatist program for the state 5.1.2 The EHCA (NSW) 1985 and the corporatist program for the bureaucracy 5.1.3 The EHCA (NSW) 1985 and the corporatist program for the democratic process 5.1.4 Summary: the EHCA (NSW) 1985 as corporatist policymaking 5.2.0 Corporatism and sustainability deficits 5.2.1 The interventionist, welfare state 5.2.2 Scientific risk assessment and the institutionalised bureaucracy 5.2.3 Selected interest group representation 5.3.0 Summary: sustainability and the challenges to corporatism 5.3.1 Political decentralisation 5.3.2 Integrated policy and devolved bureaucratic responsibilities 5.3.3 Institutional transparency 5.4.0 Conclusion 5.4.1 The passage to the second phase of the environmental challenge Chapter 6 The Disappearing State and the Politics of Individualism: Analysis of the Neo- Liberal Response to the Environmental Challenge 6.1.0 The second phase of the environmental challenge: the neo-liberal response 6.1.1 The EHCA (NSW) 1985, public choice principles and the individualist program for the state 6.1.2 The EHCA (NSW) 1985, public choice
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