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

I present a supplementary explanatory memorandum to this bill and to the Medical Research Future Fund (Consequential Amendments) Bill 2015, which is next on the order of business.

I seek leave to move government amendments as circulated on sheet HK145 together. They amend the Medical Research Future Fund Bill 2015.

Leave granted.

I move government amendments (1) to (22), as circulated on sheet HK145, together:

(1) Clause 4, page 4 (after line 8), after:

  (c) making grants of financial assistance directly to corporate Commonwealth entities.

  insert:

The Australian Medical Research Advisory Board is established to determine the Australian Medical Research and Innovation Strategy and the Australian Medical Research and Innovation Priorities. The Health Minister takes the Priorities into account in making decisions about the financial assistance that is provided from the Medical Research Future Fund Special Account.

(2) Clause 5, page 4 (after line 18), after the definition of acquire, insert:

  Advisory Board means the Australian Medical Research Advisory Board established by section 32B.

(3) Clause 5, page 4 (after line 22), after the definition of asset, insert:

Australian Medical Research and Innovation Priorities means the priorities determined under section 32E.

  Australian Medical Research and Innovation Strategy means the strategy determined under section 32D.

(4) Clause 10, page 12 (after line 20), after:

  (c) making grants of financial assistance directly to corporate Commonwealth entities.

  insert:

Debits are made from the Medical Research Future Fund Special Account by the Finance Minister after being required to do so by the Health Minister. The Health Minister takes the Australian Medical Research and Innovation Priorities (which are determined by the Australian Medical Research Advisory Board under Part 2A) into account in making decisions about the financial assistance that is provided from the Medical Research Future Fund Special Account.

(5) Heading to Subdivision A, page 16 (lines 3 and 4), omit the heading, substitute:

Subdivision A—Rules relating to debits from the Medical Research Future Fund Special Account

15A Health Minister may require the Finance Minister to debit amounts

(1) The Health Minister may, in writing,require the Finance Minister to debit a specified amount from the Medical Research Future Fund Special Account under Subdivision C, D or E.

Note 1: The Health Minister must report on the financial assistance provided from the Medical Research Future Fund Special Account (see section 57A).

Note 2: The Health Minister may delegate this power under section 61A.

(2) The Health Minister must take into account the Australian Medical Research and Innovation Priorities that are in force in determining whether to require the Finance Minister to debit an amount.

(3) A requirement under subsection (1) is not a legislative instrument.

(6) Clause 20, page 19 (lines 16 and 17), omit "The Finance Minister may, by writing, direct that, on a specified day, a", substitute "If, under section 15A, the Health Minister requires the Finance Minister to debit a specified amount from the Medical Research Future Fund Special Account under this Subdivision, the Finance Minister must, by writing, direct that, on a specified day, the".

(7) Clause 20, page 19 (line 18), omit "Medical Research Future Fund".

(8) Clause 24, page 21 (line 2), omit "(1) The purpose of the MRFF Health Special Account is (subject to subsection (2))", substitute "The purpose of the MRFF Health Special Account is".

(9) Clause 24, page 21 (lines 12 and 13), omit subclause (2).

(10) Clause 25, page 21 (lines 15 and 16), omit "The Finance Minister may, by writing, direct that, on a specified day, a", substitute "If, under section 15A, the Health Minister requires the Finance Minister to debit a specified amount from the Medical Research Future Fund Special Account under this Subdivision, the Finance Minister must, by writing, direct that, on a specified day, the".

(11) Clause 25, page 21 (line 17), omit "Medical Research Future Fund".

(12) Clause 25, page 21 (lines 20 to 23), omit subclause (2).

(13) Clause 26, page 22 (lines 1 to 13), omit the clause, substitute:

26 Debits from the MRFF Health Special Account

(1) As soon as practicable after an amount has been credited to the MRFF Health Special Account under paragraph 25(1)(b), the Health Minister must ensure that the MRFF Health Special Account is debited for the purposes of making one or more grants to bodies of a kind referred to in section 24.

Note 1: The Health Minister must publish on the internet information about the grant to which the debit relates—see section 58.

Note 2: The Health Minister may delegate the power under this section to the CEO, an SES employee or acting SES employee of the NHMRC (see section 61A).

(2) However, if one or more of the grants cannot be made, an amount equal to the credited amounts of those grants is to be:

  (a) debited from the MRFF Health Special Account; and

  (b) credited to the Medical Research Future Fund Special Account.

(14) Clause 27, page 22 (line 16), omit "subsection 25(2)", substitute "subsection 26(1)".

(15) Clause 27, page 22 (after line 21), at the end of subclause (3), add:

Note: The Health Minister may delegate the power under this section to the CEO, an SES employee or acting SES employee of the NHMRC (see section 61A).

(16) Clause 28, page 22 (line 22) to page 23 (line 11), omit the clause.

(17) Clause 29, page 23 (lines 15 and 16), omit "The Finance Minister may, by writing, direct that, on a specified day, a", substitute "If, under section 15A, the Health Minister requires the Finance Minister to debit a specified amount from the Medical Research Future Fund Special Account under this Subdivision, the Finance Minister must, by writing, direct that, on a specified day, the".

(18) Clause 29, page 23 (lines 16 and 17), omit "Medical Research Future Fund".

(19) Page 25 (after line 13), after Part 2, insert:

Part 2A—Australian Medical Research Advisory Board

Division 1—Simplified outline of this Part

32A Simplified outline of this Part

The Australian Medical Research Advisory Board is established to determine the Australian Medical Research and Innovation Strategy and the Australian Medical Research and Innovation Priorities. The Health Minister takes the Priorities into account in making decisions in relation to the financial assistance provided from the Medical Research Future Fund Special Account.

The Strategy is determined every 5 years and the Priorities are determined every 2 years.

The Advisory Board consists of the CEO of the NHMRC and other persons appointed by the Health Minister with suitable experience and knowledge.

Division 2—Establishment of Australian Medical Research Advisory Board and functions

32B Australian Medical Research Advisory Board

(1) The Australian Medical Research Advisory Board is established.

(2) The Health Minister may give the Advisory Board written directions as to:

  (a) the way in which the Advisory Board is to carry out its functions; and

  (b) procedures to be followed in relation to meetings.

(3) A direction under subsection (2) is not a legislative instrument.

32C Functions of the Advisory Board

     The functions of the Advisory Board are:

  (a) to determine the Australian Medical Research and Innovation Strategy and the Australian Medical Research and Innovation Priorities in accordance with Division 3; and

  (b) to advise the Health Minister about other matters that the Health Minister refers to the Advisory Board.

Division 3—The Australian Medical Research and Innovation Strategy and Australian Medical Research and Innovation Priorities

32D The Australian Medical Research and Innovation Strategy

(1) The Advisory Board must determine a strategy for ensuring that a coherent and consistent approach is adopted in providing financial assistance under this Act for medical research and medical innovation.

(2) The first Australian Medical Research and Innovation Strategy must be determined as soon as practicable after this section commences. A subsequent Strategy must be determined and in force as soon as the current Strategy ceases to be in force.

(3) In determining the Australian Medical Research and Innovation Strategy, the Advisory Board must take into account:

  (a) the national strategy for medical research and public health research prepared for the purposes of paragraph 16(2)(c) of the National Health and Medical Research Council Act 1992; and

  (b) any other relevant matter.

(4) An Australian Medical Research and Innovation Strategy is in force for 5 years.

(5) An Australian Medical Research and Innovation Strategy must not require financial assistance to be provided to a particular person, or for a particular project.

(6) An Australian Medical Research and Innovation Strategy is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the Strategy.

(7) In addition to the requirement under the Legislative Instruments Act 2003 for an Australian Medical Research and Innovation Strategy to be registered, the Advisory Board must ensure that the Strategy that is in force is published on the internet.

(8) Subsection 33(3) of the Acts Interpretation Act 1901 does not apply in relation to the power under this section to determine an Australian Medical Research and Innovation Strategy.

32E The Australian Medical Research and Innovation Priorities

(1) The Advisory Board must determine the priorities for providing financial assistance under this Act for medical research and medical innovation.

(2) The Australian Medical Research and Innovation Priorities must be consistent with the Australian Medical Research and Innovation Strategy that is in force.

(3) In determining the Australian Medical Research and Innovation Priorities, the Advisory Board must take into account the following:

  (a) the burden of disease on the Australian community;

  (b) how to deliver practical benefits from medical research and medical innovation to as many Australians as possible;

  (c) how to ensure that financial assistance provided under this Act provides the greatest value for all Australians;

  (d) how to ensure that financial assistance provided under this Act complements and enhances other financial assistance provided formedical research and medical innovation;

  (e) any other relevant matter.

(4) Australian Medical Research and Innovation Priorities must be determined as soon as practicable after the first Australian Medical Research and Innovation Strategy is registered under the Legislative Instruments Act 2003. Subsequent Australian Medical Research and Innovation Priorities must be determined and in force as soon as the current Priorities cease to be in force.

(5) Australian Medical Research and Innovation Priorities are in force for 2 years.

(6) Australian Medical Research and Innovation Priorities are a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to the priorities.

(7) In addition to the requirement under the Legislative Instruments Act 2003 for Australian Medical Research and Innovation Priorities to be registered, the Advisory Board must ensure that the Priorities that are in force are published on the internet.

(8) Subsection 33(3) of the Acts Interpretation Act 1901 does not apply in relation to the power under this section to determine Australian Medical Research and Innovation Priorities.

Division 4—Advisory Board members

32F Membership of the Advisory Board

     The Advisory Board consists of:

  (a) the CEO (within the meaning of section 4 of the National Health and Medical Research Council Act 1992) of the NHMRC; and

  (b) up to7 other members.

32G Appointment of members

(1) Advisory Board members referred to in paragraph 32F(b) are to be appointed, on a part-time basis, by the Health Minister by written instrument.

(2) A person is not eligible for appointment to the Advisory Board under paragraph 32F(b) unless the Health Minister is satisfied that, if the person were appointed, the Board would collectively possess an appropriate balance of experience or knowledge in the following fields:

  (a) medical research;

  (b) policy relating to health systems;

  (c) management of health services;

  (d) medical innovation;

  (e) financing and investment;

  (f) commercialisation.

(3) The Minister must appoint one of the members of the Advisory Board appointed under subsection (1) to be the Chair.

(4) A member of the Advisory Board appointed under subsection (1) holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.

Note: A member of the Advisory Board may be reappointed—see section 33AA of the Acts Interpretation Act 1901.

32H Remuneration and allowances

(1) A member of the Advisory Board is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the member is to be paid the remuneration that is determined by the Health Minister.

(2) A member of the Advisory Board is to be paid the allowances that are prescribed under subsection (4).

(3) This section has effect subject to the Remuneration Tribunal Act 1973.

(4) The Health Minister may, by legislative instrument, prescribe:

  (a) remuneration for the purposes of subsection (1); and

  (b) allowances for the purposes of subsection (2).

32J Leave of absence

     The Health Minister may grant leave of absence to a member of the Advisory Board on the terms and conditions that the Health Minister determines.

32K Disclosure of interests

(1) This section applies to a member of the Advisory Board who has a material personal interest in a matter being considered, or about to be considered, by the Advisory Board.

(2) The member must, as soon as possible after the relevant facts have come to the member's knowledge:

  (a) disclose the nature of the interest at a meeting of the Advisory Board; and

  (b) disclose the nature of the interest to the Health Minister.

(3) A disclosure under paragraph (2)(a) must be recorded in the minutes of the meeting.

(4) The Health Minister must terminate the appointment of a member of the Advisory Board appointed under subsection 32G(1)if the member fails, without reasonable excuse, to comply with subsection (2) of this section.

(5) Subsection (4) does not limit section 32N.

32L Other terms and conditions

     A member of the Advisory Board holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined, in writing, by the Health Minister.

32M Resignation

(1) A member of the Advisory Board appointed under subsection 32G(1)may resign his or her appointment by giving the Health Minister a written resignation.

(2) The resignation takes effect on the day it is received by the Health Minister or, if a later day is specified in the resignation, on that later day.

32N Termination

     The Health Minister may at any time terminate the appointment of person under subsection 32G(1)to the Advisory Board.

(20) Clause 54, page 40 (after line 9), at the end of the clause, add:

Every 2 years, the Health Minister must provide a report to the Parliament on the financial assistance provided from the Medical Research Future Fund Special Account.

(21) Page 41 (after line 14), after clause 57, insert:

57A Health Minister to report to Parliament on financial assistance

(1) The Health Minister must, as soon as practicable after the most recent Australian Medical Research and Innovation Priorities cease to be in force, prepare a report on the financial assistance provided for medical research and medical innovation from the Medical Research Future Fund Special Account during the period the Priorities were in force.

(2) The report must include:

  (a) a description of how the financial assistance provided was consistent with the Australian Medical Research and Innovation Priorities; and

  (b) information about any other financial assistance provided by the Commonwealth for medical research and medical innovation.

(3) The Health Minister must cause a copy of the report to be laid before each House of the Parliament within 15 sitting days of that House after the report is prepared.

(22) Page 43 (after line 6), after clause 61, insert:

61A Delegation by the Health Minister

(1) The Health Minister may, by writing, delegate any or all of his or her powers under section 15A, 26 or 27 to:

  (a) the Secretary of the Health Department; or

  (b) an SES employee, or acting SES employee, of the Health Department; or

  (c) the CEO (within the meaning of section 4 of the National Health and Medical Research Council Act 1992) of the NHMRC; or

  (d) an SES employee, or acting SES employee, of the NHMRC.

Note 1: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.

Note 2: A power delegated under paragraph (1)(c) is a function conferred on the CEO of the NHMRC under paragraph 7(1)(e) of the National Health and Medical Research Council Act 1992.

Note 3: This section allows the Health Minister to delegate powers to the CEO, or an SES employee or acting SES employee, of the NHMRC. This allows the Minister to benefit from the NHMRC's expertise in funding medical research and allows the NHMRC to manage distributions from the MRFF Health Special Account (for example, for payments in relation to competitive grants or other programs administered by the NHMRC).

(2) In exercising powers under a delegation under subsection (1), the delegate must comply with any directions of the Health Minister.

These amendments clarify and enhance the decision-making and accountability mechanisms to be used in the disbursement of funds from the MRFF. I seek leave to continue my remarks at a later time.

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