Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

I table revised explanatory memoranda relating to the Aviation Transport Security Amendment (Screening) Bill 2012 and the Environment Protection and Biodiversity Conservation Amendment (Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development) Bill 2012 and move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

AGRICULTURE, FISHERIES AND FORESTRY LEGISLATION AMENDMENT BILL (NO. 1) 2012

The Agriculture, Fisheries and Forestry Legislation Amendment Bill (No. 1) 2012 reflects the government's commitment to more effective regulation by cutting red tape and creating clearer Commonwealth laws.

The bill will amend eight portfolio acts and repeal one act entirely.

It contains no significant policy changes, but the amendments will provide consistency, amend outdated or unclear provisions and reduce the likelihood of reader confusion. The bill responds to industry requests for reform of existing regulation. It will streamline existing administrative arrangements and improve response times.

The bill will amend requirements of the Label Integrity Program under the wine legislation. The program aims to ensure truthfulness of label claims on vintage, variety or geographical indication of wine. It relies on accurate record keeping so that wines and label claims can be audited effectively.

Retailers have demonstrated the need for differentiation of record keeping requirements between producers and retailers and the proposed amendments are supported by retailers, wholesalers and the wine industry.

The proposed amendments will reduce the record keeping requirements of people who supply or receive wine goods that are packaged for sale to a consumer. Suppliers and retailers who do not change or affect any label claims about wine goods will be required to provide the Wine Australia Corporation auditors with details of the manufacturer or supplier of the wine goods, rather than all the details to substantiate vintage, variety or geographical indication label claims. This maintains the integrity of the program, while meeting the practical requirements of suppliers and retailers.

For the purposes of defining 'vintage' on a wine label, the bill will amend the Wine Australia Corporation Act 1980 to assist producers by ensuring grapes grown in the same growing season can be labelled with the same vintage year. For example, producers will now be able to label wine made from grapes harvested from 1 September 2012 through to 31 August 2013 as a 2013 wine, not a 2014 wine.

The bill will amend the Fisheries Management Act 1991 to ensure that provisions are consistent and wording is clear. The amendments will correct a grammatical error and remove redundant wording in provisions relating to directions to close a fishery, or a part of a fishery. They will also make compliance with a direction to close a fishery a condition on all types of statutory fishing concessions. The amendments will better reflect the intention of the provisions, clarify requirements and simplify the administration of the act.

The amendments to the Fisheries Administration Act 1991 will correct a drafting error made in an earlier amending act so that agreed co-management arrangements can be implemented. The drafting error applied a delegation of powers provision to section 93 rather than section 92. Once the provision is applied correctly to section 92, co-management arrangements—in which stakeholders will assist the Australian Fisheries Management Authority to perform powers and functions for the sustainable management of fisheries—can be implemented.

The Primary Industries Levies and Charges Collection Act 1991 is being amended to allow the Secretary of the Department of Agriculture Fisheries and Forestry to consider all requests for the remission of late levy payment penalties. At present, only the portfolio minister can remit penalties exceeding $5000. The proposed amendment mirrors efficient penalty remission arrangements for the Dairy Adjustment Levy. The process will be more streamlined and response times will be improved for levy payers. Levy payers will still be able to approach the minister to review a decision made by the secretary.

To assist with clearer Commonwealth legislation, the bill will make the following technical amendments.

It will re-number an alphabetical list in the Primary Industries and Energy Research and Development Act 1989 to remove any doubt about whether the list is incorrect or incomplete.

It will replace the United States spelling of 'authorized' with the Australian spelling of 'authorised' in the Export Control Act 1982 and the Quarantine Act 1908. The Australian spelling is the preferred style for Commonwealth legislation and these changes improve readability by ensuring consistent spelling throughout the two acts.

It will remove redundant text in the Fisheries Management Act 1991, including several cross-references to provisions that have been repealed. These amendments will promote consistency in the act and reduce the likelihood of reader confusion.

In line with legislative drafting protocols, it will remove specific references to departments and secretaries in the Farm Household Support Act 1992. This will mean any references to department or secretary are related to the correct portfolio responsible for administering the act and will reduce the need for future amendments arising from changes to the Administrative Arrangements Orders.

The bill will also repeal an entire act—the States Grants (War Service Land Settlement) Act 1952. The War Service Land Settlement Scheme commenced in 1945 to assist returned soldiers into farming after World War II. Authority for the scheme was established under Commonwealth legislation. The Australian Government has negotiated the sale and transfer of the scheme to each of the states, and now the Commonwealth legislation is redundant and suitable for repeal. The scheme served its purpose but has generally outgrown its original intent. Repeal of this act marks the end of an era and closes a chapter in Australia's history.

AVIATION TRANSPORT SECURITY AMENDMENT (SCREENING) BILL 2012

On the 25th of December 2009, a passenger attempted to bomb North West Airlines flight 253 en route from Amsterdam to Detroit.

The would-be bomber successfully smuggled a viable improvised explosive device through aviation security screening and onto the aircraft without being detected.

The device, which was concealed inside the passenger's underwear, contained no metallic components and was therefore able to be carried through a walk through metal detector without triggering any alarm.

This event highlighted a significant vulnerability in global aviation security screening practices, including Australia.

In response to this incident, on the 9th of February 2010, the Government announced a package of measures to strengthen Australia's aviation security.

This package included $28.5 million to assist the aviation industry to introduce a range of optimal technologies, including body scanners, multi-view X-ray machines, bottled liquid scanners and additional explosive trace detection units at international screening points.

These new technologies will mitigate current vulnerabilities in the aviation security screening regime.

The Aviation Transport Security Amendment (Screening) Bill 2012 will support the upcoming introduction of body scanners at Australian international airports.

This will ensure that Australian travellers are afforded the highest level of protection against aviation terrorism, bringing Australia into line with countries such as the United States of America, Canada, the United Kingdom and the Netherlands.

The Bill will provide flexibility in the future for the Government to introduce new screening tools as improvements are made to existing technologies.

It will also ensure that these technologies are used in such a way that achieves both a maximum security outcome and minimal impact on passenger facilitation.

It is important to note that the new body scanner technology will operate alongside existing walk through metal detectors at airports.

This bill contains four amendments to the Aviation Transport Security Act 2004 that allow for the introduction of body scanners and enhance current screening procedures.

The first amendment will ensure that passenger through-put rates are not unnecessarily affected by the introduction of body scanners and other technologies.

It will allow aviation screening officers to assume that a person who presents at an aviation security screening point consents to any screening procedure, with the exception of a frisk search, unless the person expressly states their refusal to undergo a particular screening procedure.

This measure will minimise the impact of body scanners on passenger facilitation by removing the requirement for screening officers to ask every passenger whether or not they consent to undergo a body scan.

It will also increase facilitation rates for screening procedures already in use at aviation security screening points, such as explosive trace detection.

It is essential that passengers are fully informed of their rights and obligations at a screening point.

As such, the Government is making changes to the Aviation Transport Security Regulations 2005 to mandate appropriate signage requirements at screening points.

These signs will inform passengers that they will be taken to have consented to screening procedures, with the exception of a frisk search, once they enter a screening point unless they specifically indicate otherwise.

The signs will take a form similar to those currently used to inform passengers of requirements regarding the carriage of liquid, aerosol and gel products through screening points at Australia's international airports.

The second amendment will allow the Aviation Transport Security Regulations to prescribe persons that must not pass through a screening point.

This will allow for a subsequent change to the Regulations, whereby a person who refuses to undergo a screening procedure they have been randomly selected for will not be granted clearance and will be unable to pass through the screening point.

The benefit of introducing body scanning technology is that it can identify a variety of sophisticated threats that cannot be detected by existing screening technology.

Australia's current security environment is such that we are vulnerable to these types of threats.

Walk through metal detectors and the style of frisk search currently used at Australian airports simply cannot provide the same security outcome that a body scanner can.

The only method of screening that could provide a similar security outcome to that of a body scanner is the type of invasive body search that is conducted in the US.

The Government has been resolute in not introducing invasive body searches as part of our airport security arrangements.

For this reason and in the interests of security and privacy, passengers selected for body scanner screening cannot choose inferior or significantly intrusive alternatives.

Accordingly, the Government has decided that a no opt out policy will be enforced in relation to screening at airports.

As such, the third amendment to this Bill will be to repeal the current provision in the Aviation Transport Security Act 2004 that allows passengers to request a frisk search as an alternative to another screening procedure.

This policy will not only apply to passengers, but also airport and airline staff.

Provision will be retained so that persons who have a physical or medical condition that prevents them from being screened by a body scanner can be screened by alternative means appropriate to their circumstances.

The Government has carefully considered what can be done to alleviate concerns that passengers may have about being screened by body scanners.

A voluntary body scanner trial was conducted at Sydney and Melbourne international airports last year.

Over 23 000 passengers volunteered to go through the body scanners during the trial period.

Market research conducted during the trial found that a great majority of passengers who underwent a body scan reported a positive experience.

Nonetheless, the Government has been focused on ensuring that health concerns regarding body scanners are understood and addressed.

There are two types of body scanning technology used for aviation security screening internationally; millimetre-wave and backscatter X-ray.

After consideration of the merits of both technologies and extensive consultation with relevant federal and state government agencies, including the Australian Radiation Protection and Nuclear Safety Agency, the Therapeutic Goods Administration, the Department of Health and Ageing, state health agencies and international partner agencies, the Government decided that only body scanners that use millimetre-wave technology will be used in Australia.

Active millimetre-wave body scanners use safe non-ionising radiation and produce emissions well below the permissible limits set by the Australian Radiation Protection and Nuclear Safety Agency.

One body scan emits 10 000 times less radio frequency energy than a single mobile phone call.

Health and safety information about millimetre-wave body scanners is available on my Department's website.

The second key area of concern regarding body scanners is in relation to privacy.

The Department of Infrastructure and Transport has consulted extensively with privacy and civil society groups in order to address any privacy concerns.

These consultations have been productive and have allowed us to strike the right balance between security and privacy.

Importantly, only body scanners equipped with automatic threat detection technology will be used.

This technology has the ability to identify areas of concerns on a generic human representation, similar to that of a 'stick figure'. The operator will not view raw or 'naked' images such as those produced by first generation body scanning technology.

In addition, body scanners that are introduced in Australia will not be allowed to store or transmit any information or data.

My Department has worked closely with the Office of the Australian Information Commission (OAIC) to address stakeholder issues.

Two round-table discussions have been held with various privacy and civil society groups to discuss the impact of body scanners.

Stakeholders were also invited to attend the body scanner trial last year, giving them the opportunity to view the body scanner in operation.

A comprehensive privacy impact assessment was prepared in consultation with the OAIC.

A draft of this assessment was released for public comment in September last year.

The final amendment will list, but not limit, the equipment that can be used for screening.

The list contains equipment already in use at screening points in Australia, including metal detection and explosive trace detection equipment, and also includes body scanning equipment to clarify that the use of such equipment in aviation security screening is lawful.

These amendments will ensure that Australia continues to enjoy a robust and effective aviation security screening regime.

I commend the Bill to the Senate.

BROADCASTING SERVICES AMENDMENT (DIGITAL TELEVISION) BILL 2012

The Broadcasting Services Amendment (Digital Television) Bill 2012 introduces amendments to the Broadcasting Services Act 1992 to facilitate earlier access, in particular circumstances, to the digital commercial satellite television services known as the Viewer Access Satellite Television service, or VAST.

The VAST service is a first class direct-to-home digital TV satellite service which covers all of Australia. For the first time, viewers not served by terrestrial transmitters have access to the full range of digital television services. Every Australian can now access the full range of commercial and national free-to-air digital television services. This includes the digital-only channels Go!, GEM, 7Two, 7Mate, ONE, and Eleven. As at 1 April 2012, over 60,000 households in remote and regional Australia had been connected to VAST.

However, viewers in metropolitan and regional areas that will never receive adequate commercial digital television terrestrial reception are currently ineligible to apply to access VAST until six months before switchover in their licence area.

This Bill will allow the administrator of a VAST conditional access scheme to specify areas, known as 'open access areas', where viewers will not be able to receive adequate reception of digital terrestrial commercial television services. Viewers residing in open access areas will be automatically entitled to immediate access to VAST.

The Bill will also amend the way in which the scheme administrator for a VAST conditional access scheme assesses a person's eligibility to access VAST.

Before providing access to VAST, the scheme administrator must assess if viewers have adequate reception of 'applicable digital terrestrial commercial television broadcasting services' (or 'applicable services'). The current definition of applicable services is restricted to those services provided by commercial television broadcasting licensees. A retransmission service provided by a third party provider does not constitute an 'applicable service'.

The commercial television broadcasters have agreed to convert to digital a number of analog self-help retransmission sites that were previously operated by local councils or other community groups. In most circumstances, the transmitters operating at these sites are licensed to Regional Broadcasting Australia, the peak body representing all regional and remote commercial broadcasters.

The amendments in this Bill will allow a scheme administrator to take account of services provided by organisations which represent commercial broadcasters, such as the Regional Broadcasting Australia, when assessing whether a viewer has adequate reception of 'applicable services'.

The Bill also contains minor amendments to allow broadcasters operating in the Remote Central and Eastern Australia licence areas to use services from VAST as a source of programming for their terrestrial transmitters and to authorise viewers in the Territory of Christmas Island and the Territory of Cocos (Keeling) Islands, the Coral Sea Islands Territory and Norfolk Island to access VAST if they choose.

Finally, in 2008 the Minister for Broadband, Communications and the Digital Economy announced a firm timetable for the switch off of analog signals. Regional Victoria, South Australia, and Queensland have all switched to digital only television and regional New South Wales will follow later this year.

On 2 November 2009, the Minister determined that digital switchover would occur in the Brisbane TV1 and Perth TV1 licence areas on 30 June 2013, and in the Adelaide TV1, Melbourne TV1 and Sydney TV1 licence areas on 31 December 2013.

Following further consultation with broadcasters, it is apparent that the switchover dates in all of the metropolitan licence areas are likely to require change. These variations in the switchover dates are to facilitate a staggered approach to the transition to digital television in metropolitan areas to ensure both Government assistance schemes and broadcaster engineering resources are available and appropriately managed to achieve digital switchover by the end of 2013. For example, the broadcasting industry has recently requested that the switchover date in the Adelaide licence area be varied to a date in the first half of 2013.

In some cases, these amended dates could fall outside the maximum variations currently permitted by the Broadcasting Services Act. At the moment, where the Minister has made a digital switchover determination, the end date for the simulcast period can be varied by up to three months before or after the originally determined date.

The Bill will allow the Minister to vary the date for a licence area's digital switchover to any other future date the Minister specifies, provided that the date determined occurs before 31 December 2013. Similar amendments will be made in respect of digital-only local market area determinations to allow the Minister to vary the date when a local market area becomes a digital-only local market area.

The Government is committed to working with local communities on the switchover to digital television. It will continue to set and publicise the dates well in advance of switchover just as it has done in other switchover areas.

CLEAN ENERGY FINANCE CORPORATION BILL 2012

The Gillard Government has passed historic reforms to build a clean energy future which will strengthen our economy and protect our environment.

The Clean Energy Finance Corporation is a key part of the Government's plan. It will encourage private investment and help overcome financial barriers to commercialising and deploying cleaner energy technologies.

There is global recognition of the importance of moving to cleaner energy sources. Due to its endowment and use of low cost fossil fuels, Australia is a late starter in the transformation to clean technology.

The Clean Energy Future plan, along with the Renewable Energy Target, will cut carbon pollution and drive investment and innovation in clean energy technologies. This will ensure our economy and industries remain competitive in a world that is becoming carbon constrained.

The transformation of our economy will be most evident in the electricity sector. It is expected that the sector will over time move away from coal-fired generation to renewables, with renewable energy growing from 10 per cent to 40 per cent of the generation mix by 2050, and conventional coal-fired generation falling from 70 per cent to below 10 per cent.

The Clean Energy Finance Corporation will facilitate increased flows of finance into the clean energy sector to support this transformation, removing barriers that would otherwise prevent the financing of projects.

Several factors can inhibit the financing of clean energy projects, including current global financial conditions, the complex nature of Australia's electricity markets, the cost of renewable energy, the preference of investment institutions for listed assets and a limited track record of returns.

Given the complexities involved, the Gillard Government appointed an Expert Review Panel to design the $10 billion Clean Energy Finance Corporation. The Review was chaired by Ms Jillian Broadbent, an eminent Australian with extensive experience in the financial sector.

The Review recommended a framework for how the corporation should operate. The Government is implementing the recommendations through this Bill.

The Clean Energy Finance Corporation will be independent from government, with no ability for the government to direct the Corporation in relation to specific projects for investment. This will ensure an independent decision making process.

The Corporation will operate based on three principles:

Firstly, the Corporation is a mechanism to help mobilise private investment in renewable energy, low-emissions and energy efficiency projects and technologies in Australia. The Corporation will also invest in manufacturing businesses that provide inputs to the clean energy sector.

The Corporation will focus on catalysing private finance into Australia's clean energy sector. It will provide financial products and structures that address the financial barriers currently inhibiting private investment. Such facilitation is critical in transitioning the Australian energy market.

To ensure the effectiveness of this capital mobilisation the Corporation is expected to require private co-investment in projects. It is unlikely to ever be a sole financier. This approach will build investor experience and confidence in the clean energy sector.

The Corporation will invest at least half of its funds in renewable energy technologies. The other half will be available to fund energy efficiency and low-emissions technologies.

Secondly, the Corporation will apply a commercial filter when making its investment decisions. It will focus on projects and technologies at the later stages of development, consistent with the Report of the Expert Review Panel.

The commercial filter will apply private sector skills and disciplines to investment selection. Having a public policy purpose, the Corporation has different financial risk/return requirements and values any positive externalities from investments. For a given financial return, the Corporation may take on higher risk and, for a given level of risk, due to positive externalities, may accept a lower financial return.

Thirdly, the Corporation has the capacity to offer concessional finance and directly influence financial barriers that inhibit the financing of this sector. The individuality of each project necessitates a case-by-case approach.

The Corporation can tailor concessionality in each case and apply it through availability, tenor or cost of finance. In setting the terms, the Corporation will provide only the least generous terms required for a proposal to go ahead.

Guaranteed funding

The funding that the Corporation will receive for making investments is set out in this Bill. This will provide long-term support and continuity to the clean energy sector.

The Corporation will receive $2 billion per year for five years from 2013-14 through the special appropriation in this Bill. The Corporation will also be provided three years of funding through the annual appropriation bills to assist with the establishment and operations of the Corporation.

The Corporation is intended to be self-sustaining once mature. That is, it won't require further assistance from the Budget. Rather, the Corporation's profits and funds returned from its investments will be available for reinvestment.

To allow the Corporation to focus on its primary function of investing in the clean energy sector, a Special Account is being created to manage surplus funds and limit the Corporation's need to undertake a cash management function.

This Bill establishes mechanisms for flows of payments between the Special Account and the Corporation that guarantees access to funds as needed to undertake its investment function.

Board

This Bill establishes the Clean Energy Finance Corporation as a Commonwealth authority under the Commonwealth Authorities and Companies Act 1997.

The Corporation will be managed by an independent board comprised of experts in areas such as banking, finance, economics and energy markets to ensure a robust and rigorous organisation.

The Board will be appointed by the Government and will be responsible for the management, operational and investment decisions of the Corporation.

The Board will be responsible for appointing the chief executive officer, who will take on the day-to-day administration of the Corporation under the directions of the Board

The staff of the Corporation will be well experienced to provide the necessary support to the Board and CEO to determine the best investments and manage tax payers money appropriately.

Investment mandate

The Government will provide the Board with an investment mandate that, combined with the legislation, will set the parameters for its management of investments. This allows the Board to develop its own investment strategy, in line with the Government's broad directions.

Similar to the Future Fund, this Bill ensures the Board is consulted on the investment mandate and their response tabled in parliament.

The Government expects the Corporation to apply a commercial filter when making its investment decisions. Investments will focus on projects beyond the research and development stage, have a positive rate of return and have the capacity to repay capital. This approach will ensure the Corporation invests responsibly and manages risk to achieve a target rate of return and ultimately be financially self-sufficient.

Technologies with a track record have generally had fewer problems accessing finance as the financial market has experience with their risk/return metrics. As such the Corporation is not expected to fund these projects. One example of this would be conventional gas which may technically be eligible for funding as a low-emission technology

The Government also intends on requiring the Corporation to apply Australian Industry Participation Plans through the investment mandate. Industry Participation Plans ensure Australian industry is afforded full, fair and reasonable opportunity to participate in projects.

As a part of the Clean Energy Future plan, the Clean Energy Finance Corporation will complement other Australian Government policies and programs. This includes the Renewable Energy Target, the Australian Renewable Energy Agency (ARENA), the Clean Technology Investment Program and the Clean Technology Innovation Program.

It will be particularly important for the Corporation and ARENA to maintain an active ongoing dialogue as projects funded by ARENA provide a potential pipeline of projects for the Corporation.

The Clean Energy Finance Corporation will bring to bear the utmost rigour in assessing its investments, but will also give effect to its important public policy objectives by facilitating transactions where financial barriers are inhibiting the mobilisation of private sector funds.

Passing the legislation in this sitting will enable the Corporation to undertake the necessary preparations to commence its investment operations from 1 July 2013.

I commend the Bill to the Senate.

NATIONAL HEALTH AMENDMENT (PHARMACEUTICAL BENEFITS SCHEME) BILL 2012

The Nati