Katy Gallagher (ACT, Australian Labor Party) Share this | Hansard source

I move opposition amendment (1) on sheet 8239.

(1) Schedule 1, page 8 (after line 12), after item 3, insert:

3A At the end of Division 3 of Part 5.7B

Add:

   588HA Review relating to safe harbour

  (1) The Minister must cause an independent review of the following matters to be undertaken as soon as practicable after the last day of the 2 year period commencing on the commencement of this section:

  (a) the impact of the availability of the safe harbour to directors of companies on:

     (i) the conduct of directors; and

     (ii) the interests of creditors and employees of those companies;

     (b) any other matters the Minister considers relevant.

  (2) The review must be undertaken by 3 persons who, in the Minister's opinion, possess appropriate qualifications to undertake the review.

  (3) The persons who undertake the review must give the Minister a written report of the review.

  (4) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the day on which the report is given to the Minister.

  (5) The report is not a legislative instrument.

This amendment introduces a requirement for the minister to initiate a review of the safe harbour provisions by an independent panel two years after it commences. It is an opportunity to make sure the safe harbour is not having any unintended consequences. It is fair to say that Labor does have concerns with how the safe harbour provisions will be utilised. We would have liked them to have been tougher than they are presently going to be. This amendment would allow a three-person independent panel to review and look at the impact of the availability of safe harbour on the conduct of directors and the interests of creditors and employees of those companies and any other relevant matter. In the interests of time, I commend the amendment to the Senate.