Marise Payne (NSW, Liberal Party, Minister for Human Services) Share this | Hansard source

I table two revised explanatory memoranda relating to the bills 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—

MEDICAL RESEARCH FUTURE FUND BILL 2015

The Medical Research Future Fund Bill 2015 establishes the Medical Research Future Fund as a vehicle for providing significantly increased Government funding towards vital medical research and medical innovation in Australia.

The establishment of the Medical Research Future Fund will provide a secure revenue stream for medical research, supporting a sustainable health system into the future. Establishing the Medical Research Future Fund demonstrates the Government’s commitment to medical research and medical innovation beyond the next election cycle.

All Australians stand to benefit from this initiative, which will transform our health system, both directly through improved health outcomes, and indirectly through improved productivity and economic growth.

The Medical Research Future Fund will fund vital research leading to the discovery and development of new medicines and technologies.

The establishment of this Fund will encourage innovation in research and in business, at all levels of health and medical research. It will support investment across the research spectrum, from laboratory research, through clinical trials, to public health and health services research, the commercialisation of new drugs or devices, and the translation of new techniques or protocols into clinical practice.

The Fund will receive an initial contribution of $1 billion from the uncommitted balance of the Health and Hospitals Fund.

The Medical Research Future Fund will be managed by the Future Fund Board of Guardians, which has a proven track record of managing investment portfolios on behalf of the Government, and maximising returns over the long term.

The bill requires the Finance Minister and the Treasurer to issue directions setting out the Government’s expectations as to how the Fund will be managed and invested by the Board, including setting a benchmark return for earnings.

The Future Fund Board of Guardians will have responsibility for preserving the capital of the Fund and for advising the Government on the amount of net earnings that can be withdrawn from the Medical Research Future Fund in a given year.

Decisions on how these net earnings are to be used to fund specific initiatives in medical research and innovation will be made by the Government, through the Budget process.

The establishment of the Medical Research Future Fund meets the Government’s commitment to increase investment in medical research and maintain national expenditure on health while delivering a sustainable health system for all Australians into the future.

Innovations in health and medical research play an important role in increasing the efficiency of health services and improving health outcomes.

MEDICAL RESEARCH FUTURE FUND (CONSEQUENTIAL AMENDMENTS) BILL 2015

The Medical Research Future Fund (Consequential Amendments) Bill 2015 facilitates the establishment of the Medical Research Future Fund through amendments to:

The consequential amendments to these acts enable the effective operation of the Medical Research Future Fund at commencement:

The bill also abolishes the Health and Hospitals Fund by repealing relevant sections of the Nation-building Funds Act 2008.

As it is Government policy to close the Health and Hospitals Fund no new commitments have been made from the Health and Hospitals Fund by the Government.

By transferring uncommitted funds from the Health and Hospitals Fund to the Medical Research Future Fund the Government will use these funds to make a practical contribution to health outcomes, by putting medical research funding on a sustainable and strong path.

Debate adjourned.

Ordered that the resumption of the debate be made an order of the day for a later hour.