Helen Coonan (NSW, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Hansard source

I rise to speak in response to the proposed International Monetary Agreements Amendment Bill 2009 and indicate that the coalition will be supporting this bill. It proposes to amend the International Monetary Agreements Act 1947 so that the process for Australian acceptance of amendments to the articles of agreement of the International Monetary Fund, the IMF, and the International Bank for Reconstruction and Development, the IBRD, is simplified.

At present, when an amendment to the articles of agreement is agreed to by the IMF or the IBRD an amendment of the IMA Act is required to change the schedules to reflect the new articles of agreement. This bill proposes to alter the definition of ‘articles of agreement’ in the International Monetary Agreements Act to include any amendments that enter into force for Australia, without the need for further legislation to amend the act. This will not have any financial impact. In our view, it makes a great deal of common sense for this action to be taken because it will allow governance changes approved by the IMF and the IBRD to be accepted by Australia without an amending bill having to pass through parliament. An example of the benefit of this in action is the speedy approval of the new funding model for the IMF. The current financial crisis is an example in point. It has only served to highlight the need to respond very quickly to changes introduced by these global bodies. Expediting Australia’s formal acceptance of amendments to the IMF and IBRD agreements will ensure that we continue to work together with these bodies in a seamless manner.

I am aware that there is some force to the concern that this bill will undermine parliamentary democracy and national sovereignty by allowing legislative changes to occur without reference to parliament. That is a very reasonable apprehension on the part of certain persons. But we must also acknowledge that there are already similar provisions in place that allow updates to international treaties to which Australia is a party, and it is this latter category that makes the coalition confident that this is an appropriate way to deal with this bill. In addition, as the IMF and IBRD agreements are international treaties, amendments to the agreements will still be tabled in parliament and considered by the Joint Standing Committee on Treaties, so there will be an opportunity for particular concerns to be raised and for there to be both scrutiny and, potentially, review. Also, if there are any funding requirements arising from amendments to the IMF or IBRD agreements, they will still be dealt with through an appropriation bill, ensuring that nothing will slip through the cracks.

We in the coalition support the role the International Monetary Fund and the International Bank for Reconstruction and Development play in assisting and supporting global financial stability, particularly in times such as those we have now encountered and, in some views, are still encountering as the global downturn works its way through. We also acknowledge the need for swift reaction to enable the full potential of the powers and authority of these important international bodies to be realised and activated when required. For those reasons we support the bill as drafted and commend it to the Senate.