Jim Lloyd (Robertson, Liberal Party, Minister for Local Government, Territories and Roads) Share this | Hansard source

I move:

That the bill be now read a second time.

Australia has a proud heritage in health and medical research, which I am sure we all on both sides of the House support. Australian health professionals, scientists and academics have helped to improve the quality of life of millions of people in Australia and throughout the world.

Since September 1936, the National Health and Medical Research Council (otherwise known as the NHMRC) has played a pivotal role in funding and supporting health and medical research in Australia. The NHMRC’s role, responsibilities and functions were eventually enacted through legislation in 1992.

In 1999, the government undertook to increase annual funding for health and medical research through the NHMRC from $165 million in 1998-99 to more than $350 million in 2004-05. Further, the Minister for Health and Ageing announced on 21 March 2006 that the Australian government will provide a further $9.8 million for health research into chronic diseases, Indigenous health and the recovery process of older Australians who have been hospitalised. This brings the federal government’s investment in health and medical research through the NHMRC to more than $490 million this year, more than double the 1999 figure.

The council has provided high quality advice on medical research, health ethics and health. A number of recent reviews have, however, identified governance concerns. These are:

• the Governance of the National Health and Medical Research Council report published by the Australian National Audit Office in February 2004; and
• the Sustaining the virtuous cycle for a healthy, competitive Australia: investment review of health and medical research—final report published by the Investment Review of Health and Medical Research Committee in December 2004.

In response, this bill improves the NHMRC’s corporate governance, including reporting and accountability frameworks, congruent with the principles of good governance as adopted by the Australian government in 2003 following the review of corporate governance of statutory authorities and office holders by Mr John Uhrig AC.

It is proposed that, from 1 July 2006, the NHMRC be established as a statutory agency for the purposes of the Public Service Act 1999 and as a prescribed agency under the Financial Management and Accountability Act 1997.

The new agency will remain within the Health and Ageing portfolio, with reporting and accountability frameworks that clearly separate the NHMRC roles and functions from those of the Department of Health and Ageing. The bill’s provisions strengthen the NHMRC’s independence, promote clear lines of responsibility for governance and financial accountability and allow the council to focus on issues relating to medical and biological research and advice.

Previously, the NHMRC’s chief executive officer has had a cumbersome accountability framework with three concurrent lines of reporting, including:

• the Minister for Health and Ageing
• the Secretary of the Department of Health and Ageing and
• the council itself.

Under this bill, the chief executive officer will report directly to the Minister for Health and Ageing, while keeping the Secretary of the Department of Health and Ageing informed on a ‘no surprises’ basis. These changes will provide the NHMRC with clearer delineation of responsibility and accountability in management, advice and strategic development. The NHMRC will retain its name and will include the CEO, staff, council, principal committees and working committees.

Whilst the accountability and reporting structure has been streamlined, the roles and functions of the council, the principal committees and working committees have not been altered. The council will continue to provide independent expert advice and inquire into medical research and health related issues, including issuing guidelines and advising the government and community on matters relating to:

• the improvement of health;
• the prevention, diagnosis and treatment of disease;
• the provision of health care;
• public health research and medical research; and
• ethical issues relating to health.

The proposed legislation prescribes that membership of the council consist of 19 members, with provision for additional expert members as required from time to time. Whilst this represents a reduction from the current 29 council members, requirements for appointments, including qualifications and experience, remain largely unaltered. This will enable the council to be more effective whilst retaining its high level of expertise.

The administrative requirements for appointment processes have also been streamlined. Whereas previously it has taken up to eight months to complete some appointments, more effective consultation and administrative processes will help to ensure appointments can be made in an efficient and timely manner. The term for council membership will continue to be three years.

The new agency will be financially autonomous, with direct appropriations, and the CEO will be responsible and accountable for the financial and day-to-day operations of the agency. As the biotechnology, health and medical industries in Australia continue to strengthen and grow, the provisions included in this bill will enable the NHMRC to:

• be more responsive to emerging health priorities and issues;
• explore innovative collaborations and industry joint ventures; and
• provide greater transparency and accountability in its operations.

The research committee will continue to recommend funding for research proposals and monitor the use of research funding. The research committee, as with all principal committees of the agency, will report to the CEO on operational and financial matters, but will report to council on technical matters concerning health and medical research.

The bill will not affect the level of funding the government has allocated for health and medical research, but provides for a more effective, efficient, accountable and responsive agency. These changes will see the NHMRC better placed to operate as a leader in Australia’s internationally recognised health and medical research sector.

I commend the bill to the House and present the explanatory memorandum.

Leave granted for second reading debate to continue immediately.

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