Chris Pearce (Aston, Liberal Party, Parliamentary Secretary to the Treasurer) Share this | Link to this | Hansard source

in reply—The Governance Review Implementation (Treasury Portfolio Agencies) Bill 2007 will improve corporate governance arrangements for the Australian Securities and Investments Commission, ASIC, the Corporations and Markets Advisory Committee, CAMAC, and the Australian Prudential Regulation Authority, APRA. This bill is part of a broader effort within government to improve transparency and consistency in relation to the governance arrangements for statutory authorities and office holders. This is as a result of the June 2003 Uhrig review, entitled Review of the corporate governance of statutory authorities and office holders. The government’s response to the review demonstrates our commitment to an effective public sector.

This bill amends the financial framework for ASIC, CAMAC and APRA by transferring these agencies from the Commonwealth Authorities and Companies Act 1997, otherwise referred to as the CAC Act, to the Financial Management and Accountability Act 1997, otherwise known as the FMA Act. This change is consistent with the Uhrig recommendation that the FMA Act should apply to statutory authorities where it is appropriate that they be legally and financially part of the Commonwealth and they do not need to own their own assets. The Uhrig review noted that agencies that the FMA Act would typically apply to include budget funded authorities as opposed to those primarily funded through commercial operations.

The FMA Act provides a rigorous framework for the collection, management and expenditure of public money generally. The FMA Act is well suited to ASIC, CAMAC and APRA, as these agencies are largely budget funded. The FMA Act better reflects the role of ASIC and APRA as regulators and CAMAC as an advisory body, in contrast to government bodies with a focus on commercial activities. Transferring ASIC, CAMAC and APRA to the FMA Act will not affect these bodies’ independence or their operational activities. As the Uhrig review pointed out, an authority’s independence is determined by their legislative framework rather than their financial frameworks. In conclusion, I believe that the benefits of the measures contained in this bill can be clearly identified in terms of increased consistency of arrangements for agencies across government and improved corporate governance for ASIC, CAMAC and APRA resulting from the new financial framework. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.