Carol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | Hansard source

The National Collecting Institutions Legislation Amendment Bill 2020 impacts six of the national collecting institutions: the Australian National Maritime Museum, the National Film and Sound Archive of Australia, the National Gallery of Australia, the National Library of Australia, the National Museum of Australia and the National Portrait Gallery of Australia. This bill was subject to a short Senate inquiry, at which all six institutions appeared to give their views and discuss the consultation process. I thank those who appeared for their time.

There are two main parts to the bill. Schedule 1 makes a major change to the investment mandate of these institutions. Under the current Public Governance, Performance and Accountability Act 2013, the institutions are subject to a high level of restriction in terms of how they can invest any funds they receive which exceed their operating costs, such as private donations. For instance, in the current ultralow interest rate environment, some of them are having to hold these funds in cash. The inquiry heard that this was an impediment to private philanthropy, as donors wish to know that their money is being used to the maximum financial benefit for the institution. The change contained in this bill would allow for the institutions to invest in higher-risk, higher-return investments, with the hope of attracting greater private philanthropy. There would be important checks and balances to ensure funds were invested properly. Representatives of the institutions gave evidence at the inquiry that they had requested this change themselves, and so Labor accepts there is a valid need for change. I would, however, like to echo my colleague in the House the shadow minister for the arts, who raised concerns that this change must never be used as a pretext to lessen public funding for our national institutions. The government has a terrible track record in terms of funding these vital institutions, which are the keepers and promoters of Australian stories, most notably through cuts administered under the Abbott government. So Labor will be monitoring the situation closely.

Schedule 2 of the bill makes a number of changes which the explanatory memorandum of the bill explains as an attempt to harmonise the legislation that governs the six institutions so that it is more consistent. What this means is that some of the institutions are subject to rules and regulations for the first time. For instance, both the National Library and the National Gallery would join the other institutions in becoming subject to ministerial direction. Any provision which allows for potential ministerial interference in how our national institutions are run should be treated with caution. However, Labor is reassured by evidence given at the recent inquiry hearing that this power has never been used for any institution since 2013 and that any direction must be of a general nature only. Again, Labor will be monitoring the situation to ensure the expansion of this power to the National Gallery and National Library is not misused.

In summary, Labor will not stand in the way of this piece of legislation, given the supportive evidence heard from the institutions themselves at the Senate inquiry. In conclusion, however, I would urge the government not to think that its job is done by just giving the institutions what they want, in terms of legislation; they need funding after years of being undermined by government cuts. They are too important to lose. I commend the legislation to the Senate.