Nick Xenophon (SA, Independent) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table an explanatory memorandum and seek leave to have the second reading speech incorporated in Hansard and to continue my remarks.

Leave granted.

The speech read as follows—

AUSTRALIAN GOVERNMENT BOARDS (GENDER BALANCED REPRESENTATION) BILL 2015

The need for balanced gender representation at board level, across all sectors, has long been widely recognised. Ideally, a company or government board should represent not only its own stakeholders, but the wider community. A balance of views, backgrounds and approaches has been shown to result in better outcomes for boards, and by extension for the entities they manage.

In particular, a significant body of research has shown that boards with more balanced gender representation lead to better financial outcomes for companies, as opposed to those with boards that consist entirely of one gender. For example, a recent study undertaken by Credit Suisse in September 2014 found that companies with more than one woman on the board returned a compound of 3.7 per cent a year since 2005 over those with no women on the board.

This echoes earlier research by Credit Suisse in 2012, which found that companies with women on the board outperformed those without by 26 per cent. Equally, a paper produced by Professor Robert Wood from the University of Melbourne's Centre for Ethical Leadership summarises over forty pieces of research that support the argument that gender equality on boards leads to better outcomes.

The aim of this Bill is to implement in legislation the existing Government policy in relation to gender balance on Government boards, and as such to emphasise the Government's position as a leader in gender equality. The policy, which was established by the former Gillard Labor Government following the 2010 election, establishes a gender diversity target of 40 per cent men and 40 per cent women on Government boards, with the remaining 20 per cent to be made up of either gender.

The Bill introduces these targets as a positive obligation, rather than an aspirational objective. It also provides for certain exemptions, such as when it may not be reasonably practical to meet the target. The explanatory memorandum expands on the circumstances that would apply in this situation.

The Bill applies the gender balance target to Commonwealth entities under the Public Governance, Performance and Accountability Act 2013; Ministerial advisory committees; review committees where the appointments are made entirely by a Minister or the Cabinet; and Commonwealth statutory authorities. This definition is consistent with the boards that are currently required to report for the purpose of the Gender Balance on Australian Government Boards Report.

Further, the Bill establishes a legislative basis for the reporting requirements that currently exist in relation to the Gender Balance on Australian Government Boards Report. Under the Bill, each Portfolio will be required to supply information on each board within its remit to the Minister, who will then be required to collate this information into an annual report to be tabled in Parliament.

While this Bill focusses on existing policy, it is important to note the need for further measures to support this legislation. The Government should improve support and funding for programs such as Boardlinks to grow the pool of potential applicants, as well as working with organisations such as Women on Boards to raise awareness of this legislative change.

While there appears to be no valid argument as to why this legislation should not be put in place, the research quoted above shows that there are many arguments as to why it should. The business sector has made significant progress in terms of gender-balanced representation over the years, but there is still a leadership role for Government in terms of promoting boards that are more representative of our society as a whole.

The Australian Government has a responsibility to lead the way in terms of gender-balanced representation on boards, in order to drive a much-needed cultural shift. This legislation ensures the current policy, which is supported by both major parties, will remain in place and enforceable into the future.

Debate adjourned.