Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Hansard source

Thank you very much, Senator Wong. This is obviously a matter which we discussed yesterday and have again today. It is a matter which was considered seriously in the drafting of the legislation. The government is of the view, similarly to the way the FIRB legislation is constructed, that to prevent the potential for damage to bilateral relations, to protect Australia's position, including in bilateral and international forums or negotiations, it is appropriate for such serious decisions, as they are taken in the context of the FIRB as well, for reasons not to be publicly provided. However, I do think that the implementation of the bill, the provisions within the bill and the work of the Department of Foreign Affairs and Trade task force will go a great distance in our engagement with states and territories, local governments and universities in informing them and enabling them to work on these issues with a much better foundation.

It's not a secret process. The minister's decisions are made public through the register. They are open for all to see and to scrutinise. The minister is required in section 51 to take a significant set of matters into account in relation to the state or territory that might be making the arrangement. They include the importance of the arrangement in assisting or enhancing the state or territory's functioning and the extent of the performance of the arrangement—so its implementation. They include whether the declaration would impair the continued existence of the state or territory as an independent entity.

Senator Wong interjecting—

Senator, they include whether the declaration would significantly curtail or interfere with the capacity of the state or territory to function as a government; whether the declaration would have significant financial consequences; whether it would impede the acquisition of goods or services by the state or territory, including, as some have raised, for the purposes of infrastructure; and whether it would have an effect on the capacity of the state or territory to complete an existing project that is to be delivered under the arrangement.

The senator may choose to find humour in that list of matters, but the point I would make is that you would expect us to have considered the implications for states and territories in relation to this legislation. In doing so, we have developed and put into the legislation presented to the parliament as part of section 51(2) those particular conditions. These are going to be decisions which are made robustly, made in the public interest, and made with transparency and accountability, as is appropriate given the nature of the issues concerned.