Sussan Ley (Farrer, Liberal Party, Minister for Health) Share this | Hansard source

I am pleased to continue my remarks from earlier today about the Medical Research Future Fund Bill 2015 and government amendments that we have already circulated. These amendments clarify and enhance the decision-making and accountability mechanisms to be used in the disbursement of funds from the MRFF. They reflect the policy approach already announced, but for public assurance the government is very willing to insert arrangements into the legislation that were originally intended to be implemented administratively. By shifting this detail into the legislation, the government can disabuse concerns raised by the opposition that disbursements from the fund may lack sufficient governance or expert leadership. The amendments ensure robust decision making and strong accountability mechanisms.

In summary, the amendments to increase transparency in the decision-making process include the requirements for an expert Australian medical research advisory board, setting out the advisory board's role, governance and reporting arrangements; an Australian medical research and innovation strategy; Australian medical research and innovation priorities; and decision-making mechanisms for the disbursement of funds from the MRFF to be reliant upon the strategy and the priorities.

As Australia's pre-eminent health and medical research body, the NHMRC has a vital contribution to make to the proposed arrangements and will continue to do so, contrary to the claims of the opposition. The independent Australian medical research advisory board that I will appoint will have eight members, including the CEO of NHMRC. The board will collectively possess expertise in medical research, policy relating to health systems, management of health services, medical innovation, financing and investment, and commercialisation. The role of the advisory board will be to set the Australian medical research and innovation strategy every five years and to determine the priorities arising from this strategy every two years. The Australian medical research and innovation strategy will ensure that a coherent and consistent approach is adopted in the funding of medical research and medical innovation from the MRFF over a five-year period.

The strategy determined by the advisory board must take into account the national strategy prepared by the NHMRC, and it should also refer to the government's science and research priorities. The priorities will inform the proposals for disbursement that I will take to cabinet each year for decision through the budget process. The government's decisions on MRFF disbursements will be accountable decisions—accountable to parliament in biennial reports. The MRFF represents a major injection of new funds into the medical research sector, adding to the research funding allocated by the NHMRC through the Medical Research Endowment Account. The MRFF and MREA will operate alongside each other and in clear sight of each other. My biennial reports to the parliament will disclose how the spending profile for the MRFF adds to other categories of Commonwealth funding on medical research and innovation, to demonstrate that the new fund builds upon existing funding. That is another important safeguard in the amendments that will give public confidence around assurances that the government has already given.

The proposed amendments also clarify the finance minister's role. The finance minister is not the decision maker of funds from the MRFF, contrary to what the opposition had thought during the second reading debate. Debits from the MRFF special account will only be made by the finance minister after being required to do so by the health minister. The role of the finance minister merely credits amounts between accounts as a bursar of funds, acting on instruction of the health minister. What we are putting in legislation today has been the government's intention all along, and public statements by my colleagues and I have indicated as much. However, I trust that bringing this additional clarity into the legislation will allay the concerns that have been raised about this vital initiative.

I commend the bill and the amendments to the House.

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