Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Hansard source

by leave—I move opposition amendments (55) to (61) on sheet 5684:

(55)  Clause 4, page 6 (after line 2), after the definition of Communications Minister, insert:

Competitive Neutrality Guidelines means the Australian Government Competitive Neutrality Guidelines for Managers contained in Finance Management Guidance No. 9, published by the Department of Finance and Deregulation, as in force from time to time.

(56)  Clause 116, page 91 (lines 11 and 12), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(57)  Clause 117, page 91 (lines 23 and 24), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(58)  Clause 118, page 92 (lines 11 and 12), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(59)  Clause 119, page 91 (lines 27 and 28), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(60)  Clause 171, page 132 (lines 20 and 21), omit subclause (4), substitute:

        (4)    In giving advice under paragraph (1)(a) or (b), the EIF Advisory Board must:

             (a)    apply the EIF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(61)  Clause 246, page 186 (lines 7 and 8), omit subclause (2), substitute:

        (2)    In giving advice under paragraph (1)(a), the HHF Advisory Board must:

             (a)    apply the HHF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

This is quite an important issue. It goes to the matters that should be taken into account in giving advice on projects. The important issue here is that of competitive neutrality. It is always an issue when governments fund projects—and I saw this often through the 11½ years that we were in government, and I am sure Senator Sherry is well aware of this. It is quite an important principle that government funding of particular projects does not breach the very important principle of competitive neutrality and, either by design or inadvertence, disadvantage private providers of similar or equivalent services by virtue of taxpayers’ money being used to fund particular projects.

It is an inherent principle of government—one not always necessarily properly observed by either side of the parliament at state or federal level, but one the coalition does believe is very important. It is one that I personally believe is critically important and, in my years as finance minister, it is one that I took great account of. So I do think it is quite important that, in relation to projects that are to be funded, there is this assessment of the question of competitive neutrality. It is quite important that the rights of private providers of services derived from infrastructure are taken proper account of and they are not commercially disadvantaged by the consequences of taxpayers’ money being used to fund particular projects. So I do commend these amendments.