David Johnston (WA, Liberal Party, Minister for Defence) Share this | Hansard source

I propose to sum up for the government on the Infrastructure Australia Amendment Bill 2013. The government fully supports Infrastructure Australia and its role as a key adviser to government on infrastructure projects and policy reforms. The government sees Infrastructure Australia's role as pivotal in its strategy to lift Australia's productivity. For this reason, the government has sought to strengthen Infrastructure Australia by establishing it as a more independent, transparent and expert advisory body through a change in its governance structure and better clarification of its functions.

The Infrastructure Australia Amendment Bill passed through the House of Representatives on 10 December 2013 and was introduced into the Senate the very next day. Since then, the bill has been subject to robust scrutiny through a Senate inquiry, the report of which was tabled in parliament on 17 March this year. That report recommended that the bill be passed in its original form.

The business community indicated strong support for the bill. It did, however, suggest that Infrastructure Australia be provided with greater flexibility in three key areas: firstly, in the evaluation of infrastructure proposals; secondly, in publishing material appropriately; and, thirdly, in performing its function independently. The government has listened and responded to the business community's suggestions and has made three amendments to the bill. The amendments firstly remove the ministerial powers to determine a class of proposal that Infrastructure Australia must not evaluate. The opposition tried to make much out of this from the perspective of saying that it was all about public transport. Let me advise the Senate that the original intent of referring to a class of proposals was to exclude defence projects and projects seeking Commonwealth funding that was below the $100 million figure.

Secondly, the amendments remove the specific functions to be performed only when directed by the minister. The original intent of allowing for publication requests was to increase transparency to the public while striking the right balance with commercial confidentiality issues. By removing this reference it remains the responsibility of Infrastructure Australia to determine what it will and will not publish, in accordance with general law principles, including breach of confidentiality, the Privacy Act, and other common law principles, and of course the Freedom of Information Act.

Thirdly, our amendments remove the ministerial power to specify requirements related to the timeframe, scope and manner in which Infrastructure Australia must perform a function. Again, the original intent was to ensure that Infrastructure Australia would perform its functions in a timely manner and provide advice to the government on key policy issues of high priority. We know that Infrastructure Australia previously engaged in activities that were not part of their core functions. By removing this reference, the minister can provide directions of a general nature only.

These changes in part also address the opposition's key concerns. However, the opposition's amendments effectively keep the existing legislation as it is, and therefore do not empower Infrastructure Australia with the same level of independence as that proposed by the government.

Together with the new governance arrangements that set up Infrastructure Australia as an independent board, and abolish the role of the Infrastructure Coordinator, we are trusting Infrastructure Australia's judgment, as an independent body, to carry out its function suitably and according to the provisions the parliament has set.

I would like to emphasise that these changes do not affect the government's original commitments firstly to enhancing Infrastructure Australia's status as an independent statutory authority governed by a board; secondly, to abolishing the role of the Infrastructure Coordinator; thirdly, to establishing the role of a chief executive officer to be appointed to and reporting to the board; and, fourthly, to reforming Infrastructure Australia's key functions and asking it to undertake an audit of nationally significant infrastructure, and developing a 15-year plan on infrastructure priorities. The bill still increases Infrastructure Australia's independence through its new governance structure, which will provide for an independent governing entity that is both legally and financially separate from the Commonwealth.

The bill still provides Infrastructure Australia with the remit to evaluate nationally significant infrastructure proposals and provide policy advice relating to the development of or investment in infrastructure, without waiting for a request from this government. The bill still better defines Infrastructure Australia's functions and deliverables so that infrastructure planning and prioritisation is improved on a national basis, providing a robust evidence based approach to allocating public funds to projects with the highest productivity returns. We are still holding Infrastructure Australia to account and ensuring that they assess projects seeking Commonwealth funding of $100 million or more, including those announced in the Infrastructure Growth Package.

In closing I would like to reiterate that through this bill the government is delivering on its commitment to broader infrastructure reforms. The reforms to Infrastructure Australia will help the government remain focused on delivering critical infrastructure, ensuring we are getting value for money, maximising productivity and building the infrastructure of the 21st century. These reforms are rightly provided for in this bill.

I thank senators for their contributions and I commend the bill to the Senate.