Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The Minister for Foreign Affairs has provided the following answer to the honourable senator's question:

(1) Australia is a supporting member country of EITI. Australia provides funding, through the aid program, to support developing countries implement EITI.

(2) EITI is a global initiative promoting the disclosure by both governments and companies of revenue payments relevant to the mining, gas and petroleum sectors. Countries participate in the EITI process on a voluntary basis.

In Australia, each government jurisdiction has its own regulations and financial disclosure obligations. All Australian Government agencies comply with internationally accepted accounting standards and are subject to the Australian National Audit Office. Corporations are regulated under the Corporations Act 2001. Payments made by the mining, oil and gas companies operating in Australia and receipted by the Australian Government are publicly disclosed through these mechanisms.

(3) AusAID has contributed a total of $1.45m to the World Bank administered EITI Multi-Donor Trust Fund, which supports implementation of EITI in developing countries. AusAID has allocated a further $9m over three years for the EITI MDTF. AusAID has also allocated $1m over three years for the EITI Secretariat.

(4) The Government, in conjunction with industry and civil society, is considering the issues around the EITI and its domestic implementation, noting the response to Question 2. The Government has yet to conclude its consideration.

(5) The Commonwealth Government is responsible for considering whether Australia becomes an implementing country, although aspects of implementation may be the responsibility of, and may require the agreement of, state and territory governments.

(6) The Government is aware of the Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 and its impact on the Securities Exchange Act 1934.

The Australian Government is not considering implementing similar extra-territorial legislation in Australia as it considers that initiatives such as the Dodd-Frank Act do not demonstrably reduce corruption. Australian companies already operate in compliance with the International Accounting Standard Board's International Financial Reporting Standards, which it adopted in 2005.

(7) The Australian Government is supportive of the promotion of improved transparency, governance and anti-corruption mechanisms through the G20. Australia is an active member of the G20 Anti-Corruption Working Group which was established following the Toronto meeting in June 2010 to make recommendations for the G20 to promote international cooperation to combat corruption.

(8) In the 2009 Statement of the Pittsburgh Summit, G20 Leaders supported voluntary participation in the EITI. The Australian Government continues to support the EITI.