Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

Senator Mason, I think you should read section 54-1 in the context of section 60-1 under division 60 of the current act. It sets down the procedures by which a minister may act to reduce a grant or require repayment of a grant. It is quite a complicated process:

(1)

Before making a decision under paragraph 54-1(a) or (b) in respect of a body, the Minister must give to the body notice in writing:

(a)

stating that the Minister is considering reducing the body’s grant, or requiring the repayment of a grant made to the body, as the case may be; and

(b)

stating the amount of the proposed reduction or repayment and the reasons why the Minister is considering taking that action; and

(c)

inviting the body to make written submissions to the Minister within 28 days on either or both of the following matters:

(i)

why that action should not be taken;

(ii)

why the amount of the proposed reduction or repayment should be reduced; and

(d)

informing the body that, if no submission is received under paragraph (c) within the time required, the action will take effect on the day after the last day for making submissions.

That indicates that the minister cannot act unilaterally. Under the opposition amendments that are foreshadowed, there is a mandatory 7.5 per cent reduction in a university’s base grant if, in someone’s assessment, the university has not met the National Governance Protocols.