Peter Khalil (Wills, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Joint Committee on Intelligence and Security, I present the committee's report entitled Review of the Foreign Influence Transparency Scheme Act 2018.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—On behalf of the PJCIS, the Parliamentary Joint Committee on Intelligence and Security, I present our committee's report on its Review of the Foreign Influence Transparency Scheme Act 2018also known as the FITS Act.

The committee's review, required by section 70 of the FITS Act, commenced in August 2021, quite a while ago, and was readopted in the 47th Parliament. The committee received 25 written submissions, and held one public hearing and several private briefings in relation to the act.

The FITS Act was established to provide the public with visibility of the nature, level and extent of foreign influence on Australia's government and politics. The scheme creates an obligation for people and organisations who undertake certain activities on behalf of a 'foreign principal'—that is, a foreign government or political party, or a related entity or individual—to be listed on a public register.

During the inquiry, the committee heard criticisms of the scheme for its limited effectiveness in achieving its intended transparency outcomes. In particular, the committee noted with concern the very low number of registrations and minimal compliance and enforcement activity during the six years since the scheme was established.

The committee was satisfied that the scheme's objective of shining a light on both legitimate and malign foreign influence activities in our society remains worthwhile and necessary. Nonetheless, given the significant flaws in the scheme, the committee considers that substantial reform is required if the FITS is to meet its original intent and justify the compliance burden and resources required to administer it.

The committee has therefore made 14 recommendations to improve the scheme and its administration. These include amending the current FITS Act:

The committee has also recommended that the government review the resourcing of the department administering the scheme to ensure both the level and the capacity of staffing are sufficient to support its timely and efficient administration.

In its review the committee was conscious that the Foreign Influence Transparency Scheme is distinct from, but sits alongside, the framework for combating espionage and foreign interference in Australia. The committee has recommended it be referred a review of the espionage and foreign interference laws put in place by this parliament in 2018, while avoiding duplication with any similar review if undertaken by the Independent National Security Legislation Monitor.

On behalf of the committee, I extend my thanks to those who participated in the inquiry by providing submissions and appearing at public hearings. I thank the secretariat for their great work, as always, in an intense period when we were working on 14 inquiries at the same time. I thank my fellow members of the committee, the PJCIS, who put a lot of time and effort into what is important work for the national interest. I also thank and acknowledge the deputy chair for his work on this.

I commend this report to the House.