Environmentalists have proposed marine lease approvals and expansions should be subject to the state's planning scheme regime at the first day of hearings for a Legislative Council inquiry on fish farming.
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At the moment, land-based marine farming hatcheries and processing facilities are subject to the Land Use Planning and Approvals Act with development applications assessed by councils.
This allows for an appeals process for proponents and community members.
Environmental Defenders Office chief executive Nicole Sommer said marine farms in state waters were excluded from the planning scheme which meant there was no avenue for appeal.
She said the inclusion of offshore farms in the planning scheme would require coastal and marine plans to be developed with regional communities and reviewed by the Tasmanian Planning Commission before implementation.
Tasmanian Conservation Trust director Peter McGlone said the planning commission needed to be able to review submissions made to the Marine Farming Review Panel, similar to the process applied for reserve management plans and water management plans.
He said the panel's decision and minister's decision on a development also needed to an avenue for appeal.
"This is a fundamental thing missing from the system," Mr McGlone said.
"If we had a local government approval system that didn't allow for appeals over discretionary developments, it would be an absolute breakdown in society.
"It's not a part of environment assessments, it's a part of democracy."
He said there was no requirement for the panel to document responses to public submissions. Hearings continue on Wednesday.