Sussan Ley (Farrer, Liberal Party, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry) Share this | Hansard source

I thank all members for their contributions to this debate on the Primary Industries and Energy Research and Development Amendment Bill 2007 dealing with the important issue of research and development and its effective governance. While there have been some differences of emphasis on future approaches and priorities for R&D, there seemed to be broad agreement on the positive contribution of R&D to productivity and sustainability. Many members mentioned that, and the member for Hume quite rightly highlighted the value of rural R&D in the honey bee industry—something in which he has taken a great deal of interest since my time in this place. At the breakfast meeting this morning involving our R&D agency, Land and Water Australia, in conjunction with the Grains Research and Development Corporation and others, we were shown a display of tools that farmers are accessing to help them manage climate variability and to put them on the front foot in these uncertain times.

The proposed amendments to the Primary Industries and Energy Research and Development Act 1989, the PIERD Act, will improve the governance of the eight statutory rural research and development corporations, RDCs. Together with the seven industry owned companies, these bodies currently spend more than $540 million on agricultural R&D. With this money provided through a partnership of industry and the government, it is crucial that corporate governance remains at the leading edge to deliver accountability for producers and taxpayers.

Best practice was identified in the 2004 report by John Uhrig AC, and his recommendations have been used as a benchmark for RDC corporate governance practices. A key PIERD Act amendment will see the removal of the potential for any conflict of interest through discontinuing the appointment of Australian government directors to each statutory RDC board. This proposed amendment is complemented by the expansion of the skills set for board selection to include expertise in government administration. As a result, representational elements are removed and the focus on board expertise enhanced.

To back these specific legislative amendments, I have recently provided each of the RDCs with a statement of expectations as part of my responsibilities as parliamentary secretary. These statements reflect Uhrig report best practice and provide the RDCs with clear guidance on what the government expects on performance. This process will then be completed with the RDCs responding to me with a statement of intent advising how the government’s expectations will be met.

I also highlight the amendments to the PIERD Act in the areas of board selection committees, nomination requirements and reporting on selection committee performance. These will deliver best practice. A more diverse pool of candidates on selection committees should deliver broader expertise, experience and gender to underpin more effective board membership and governance. The inclusion of assessments of the effectiveness of selection committees’ processes to identify the widest pool of candidates in their annual reports will increase transparency and accountability. These proposed amendments will also provide a practical response to the recommendations by the report of the inquiry into women’s representation on regional and rural bodies of influence—the At the table report.

A third aspect of these legislative amendments I emphasise will also deliver accountability improvements. These elements require the RDCs to consult with the minister in preparing or varying their key strategic plans and include reporting in their annual reports on the impacts of their R&D expenditure for their industry. Increases in performance monitoring and analysis by the RDCs and enhanced communications will again contribute to bolstering accountability of decision making by their boards.

In conclusion, I emphasise that the package of proposed amendments to the PIERD Act will deliver best practice in governance. Increased communication, accountability and responsiveness by the boards in governing the RDCs will ensure the continuing success of these organisations in delivering productivity and sustainability improvements for rural producers and the broader community. The proposed amendments to the PIERD Act will commence on the day the bill receives royal assent.

Question agreed to.

Bill read a second time.

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