Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Hansard source

Labor will be opposing this amendment on sheet 7764 on the basis that these privileges and immunities are consistent with those conferred to other institutions such as the World Bank and the Asian Development Bank. These privileges and immunities allow the bank and its officers to operate consistent with the articles of the bank and notwithstanding they may be undertaking work in areas of uncertainty, including in weak states or where rule of law is not consistently upheld.

Clause 8 of the bill states that regulations may confer privileges and immunities on the Asian Infrastructure Investment Bank, officers and employees of the bank and consultants performing services for the bank. Clause 8(1) specifies that privileges and immunities necessary or desirable to give effect to chapter 9 of the bank's Articles of Agreement may be conferred on the Asian Infrastructure Investment Bank by the regulations. In chapter 9, articles 44 to 52 of the Asian Infrastructure Investment Bank's Articles of Agreement set out the status, immunities, privileges and exemptions that must be given to the bank by each Asian Infrastructure Investment Bank member state. This means, for example, that the bank is recognised as having international legal personality, which means that this organisation possesses international rights and duties. That is article 45. It also means that the bank will enjoy immunity from every form of the legal process except in cases arising out of, or in conjunction with, the exercise of its powers to raise funds through borrowings or other means to guarantee obligations or to buy and sell or underwrite the sale of securities. That is article 46.1, which I spoke about earlier.

I note again the commitment given that the bank's officers or employees will still be subject to the general laws of the country. I note that this matter was addressed in the report of the Senate Economics Legislation Committee, which identified that the Senate Standing Committee for the Scrutiny of Bills in its Alert Digest sought clarification on two matters: the nature of the proposed immunities and privileges as set out in clause 8 of the bill, and why these immunities and privileges are set out in regulation and not in the bill.

These are matters that were also canvassed at the hearing of the Senate Economics Legislation Committee last night, where interested senators had the opportunity to explore this matter further. I note that the Greens did not participate in the hearing. The officials present at the hearing last night advised the Economics Committee that conferring immunities and privileges is similar to that for comparable institutions. The Treasurer also advised the Senate Scrutiny of Bills Committee that the immunities and privileges conferred by the bill were consistent with those of other multilateral development banks, stating:

The nature of the proposed privileges and immunities are consistent with privileges and immunities afforded to the Asian Development Bank and the European Bank for Reconstruction and Development. Australia is a member of both of these multilateral development banks.

The opposition is satisfied with this explanation, although it would be useful if the minister could explain to the Committee of the Whole why these immunities and privileges are set out in regulations and not in the bill.