Rod Kemp (Victoria, Liberal Party, Minister for the Arts and Sport) Share this | Link to this | Hansard source

I 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—

STUDENT ASSISTANCE LEGISLATION AMENDMENT BILL 2005

The Student Assistance Legislation Amendment Bill 2005 amends the Student Assistance Act 1973 and the Social Security Act 1991 to make it clear that a student cannot apply for assistance under the Student Financial Supplement Scheme under either Act after the commencement of the Bill.

The Bill also amends both Acts to provide for the alignment of the Student Financial Supplement Scheme repayment thresholds and indexation with the Higher Education Loan Programme (HELP) under the Higher Education Support Act 2003 and applies the definition of taxable income used under the HELP arrangements to the SFSS.

The Student Financial Supplement Scheme was a voluntary loan scheme under which eligible tertiary students could trade-in income support in return for a loan, on the basis of a $1 trade for a $2 loan. The money traded-in became part of the loan, all of which is repayable.

The Student Financial Supplement Scheme was not delivering good outcomes for students or for Australian taxpayers, and as a consequence it was closed administratively on 31 December 2003. No new loans have been issued since its closure.

The Student Financial Supplement Scheme was closed in response to increasing levels of bad and doubtful debt and reduced take-up of loans. The Australian Government Actuary has estimated that some 84 per cent of the loans under the Student Assistance Act 1973 and 56 per cent of the loans under the Social Security Act 1991 may never be repaid.

The Student Financial Supplement Scheme was introduced in a climate of high youth unemployment, high interest rates and when few commercial loan packages were available to students. The take up of the Student Financial Supplement Scheme has declined over the years.

The Bill also makes a minor technical amendment to the Student Assistance Act 1973 by inserting an express provision to permit the incorporation of an instrument “as in force or existing from time to time” for the purposes of section 14 of Legislative Instruments Act 2003. This will eliminate the need to make new regulations under the Act whenever guidelines for the non-statutory ABSTUDY and Assistance for Isolated Children schemes are altered.

I commend the Bill to the Senate.

FINANCIAL FRAMEWORK LEGISLATION AMENDMENT BILL (No. 2) 2005

The purpose of this Bill is to update, clarify, and align or integrate several financial management provisions in legislation. The Bill proposes amendments to 16 Acts and the repeal of 2 Acts.

The Bill is divided into 4 schedules. Schedule 1 proposes amendments to 9 Acts that establish individual Special Accounts. These amendments cover the following Special Accounts: the Aboriginal and Torres Strait Islander Land Account, the Aboriginal Advancement Account, the ARC Research Endowment Account, the Child Support Account, the Gene Technology Account, the Industrial Chemicals Account, the National Blood Account, the Medical Research Endowment Account and the Natural Resources Management Account.

Most of the amendments covering Special Accounts are of the same type as the amendments made in Schedule 1 of the Financial Framework Legislation Amendment Act 2005 (FFLA Act). The FFLA Act commenced on 22 February 2005. These amendments aligned financial management provisions in 85 Acts with the amendments made to the Financial Management and Accountability Act 1997 (FMA Act) by the Financial Management Legislation Amendment Act 1999. The Financial Management Legislation Amendment Act 1999 abolished separate accounting funds in the Commonwealth’s financial management framework and introduced the concept of Special Accounts. A Special Account is a ledger that records amounts in the Consolidated Revenue Fund set aside for expenditure on the purposes of the Special Account.

The proposed amendments covering the Medical Research Endowment Account and the Natural Resources Management Account differ from the amendments made in Schedule 1 of the FFLA Act. The proposed amendments transfer from the Finance Minister to the respective Ministers responsible for these Special Accounts the power to receive money on trust for the purposes of each Account. Under the devolved financial management framework that now applies in the Commonwealth public sector it is appropriate that these powers be exercised by the Ministers responsible for the Acts that establish these Special Accounts.

Schedule 2 of the Bill proposes amendments to the Safety, Rehabilitation and Compensation Act 1988 (SRC Act) to authorise Comcare to pay workers’ compensation benefits to employee either through Commonwealth employers or direct to employees. The SRC Act currently authorises compensation benefits only to be paid directly to employees. The proposed amendments reflect current and best practice to ensure there is a seamless transition for the employee between payment of salary, etc and payment of compensation. The amendments also give effect to the conclusion of the Joint Committee of Public Accounts and Audit, in its report 395 Inquiry into the Draft Financial Framework Legislation Amendment Bill, supporting amendments to align the Act “with current good practice whereby Comcare makes compensation payments to agencies”.

Schedule 3 of the Bill proposes amendments to 6 Acts that are not included in Schedules 1 or 2. I will now highlight the main amendments proposed in Schedule 3.

The Bill proposes amendments to the FMA Act to extend to law enforcement agencies access to the modifications to the FMA Act that currently apply to intelligence or security agencies. These modifications are set out in the Financial Management and Accountability Regulations 1997. Some law enforcement agencies need to undertake sensitive activities that are similar in nature to those of intelligence and security agencies. It is therefore appropriate that they be able to access the same modified application of the FMA Act for those sensitive activities, subject to Ministerial agreement and consideration by Parliament through an amendment to the FMA Regulations that would prescribe a law enforcement agency for this purpose.

Amendments to the Public Accounts and Audit Committee Act 1951 are proposed to correct, update and to express in clearer language, various provisions. The amendments cover such matters as the inclusion of non-gender specific language, Sectional Committees, evidence taken in public or in private, and payment of allowances. The amendments do not alter the intent of the existing provisions.

Amendments to the Native Title Act 1993 are proposed to transfer from the Treasurer to the Finance Minister the power to approve the investment of surplus money by an Aboriginal and Torres Strait Islander body and to provide the Finance Minister with a delegation power in relation to that approval power. The amendment proposed to the Australian Institute of Marine Science Act 1972 provides the Finance Minister with a delegation power in relation to his existing powers to approve borrowing by, and guarantees relating to, the Australian Institute of Marine Science. The amendments proposed to the Native Title Act and the Australian Institute of Marine Science Act align these Acts with the amendments made to 25 Acts by the FFLA Act.

Schedule 3 also proposes the amendments to the FMA Act and the Public Service Act 1999 to clarify that the appropriation authority for an act of grace payment, or payment to a person because of special circumstances arising out of employment by the Commonwealth, is not provided in these Acts. The appropriation authority would generally be an agency’s annual appropriation, providing the payment relates to some matter that has arisen in the course of an agency’s administration.

Schedule 4 of the Bill proposes the repeal of 2 Acts, the Employment Services Act 1994 and the Loan Act 1977. With the commencement of the Employment Services market in 1998, the case management system set up by the Employment Services Act is no longer required and the Employment Services Regulatory Authority, which is established in that Act, has become non-operational. The Employments Services Act is, therefore, now redundant. The Loan Act is also redundant. It authorises the Treasurer to borrow a specified amount of money during the financial year ended 30 June 1978.

This proposed law will update, clarify and align or integrate a wide range of financial management provisions applying to Commonwealth entities and thereby enhance the financial management framework of the Australian Government generally. The Bill largely proposes a continuation of the types of amendments made in the FFLA Act. I commend the Bill.

APPROPRIATION BILL (No. 3) 2005-2006

There are two Additional Estimates Bills this year: Appropriation Bill (No. 3) and Appropriation Bill (No. 4). I shall introduce the latter Bill shortly.

The Additional Estimates Bills follow on from the Appropriation Bills that were introduced on the occasion of the 2005-2006 Budget. They seek appropriation authority from Parliament for the additional expenditure of money from the Consolidated Revenue Fund, in order to meet requirements that have arisen since the last Budget.

The total appropriation being sought through the Additional Estimates Bills this year is almost $2.63 billion, which is partially offset by expected savings in appropriations of around $603.9 million. Taking savings into account, the expected net increase in expenditure arising from Additional Estimates Bills is approximately $2 billion, or about 3.5% of total annual appropriations. These savings are described in the document accompanying the Bills, the “Statement of Savings Expected in Annual Appropriations”.

The total appropriation being sought in Appropriation Bill (No. 3) this year is around $1.26 billion. This proposed appropriation arises from changes in the estimates of programme expenditure, due to variations in the timing of payments and forecast increases in costs, reclassifications and policy decisions taken by the Government since the last Budget, most of which have been described in the “Mid Year Economic and Fiscal Outlook” document published in December last year.

The major items of expenditure in the Bill include:

• a net increase of $167.1 million to the Employment and Workplace Relations Portfolio, the major components of which are:
• $110.7 million to fund the Workplace Relations Reform Package;

and

• $52.4 million additional funding to meet the increased demand for highly disadvantaged stream of Job Network services;
• $124 million to the Department of Agriculture, Fisheries and Forestry to provide:
• $104 million business exit assistance as part of the Fishing Structural Adjustment Package to support the sustainability of Australian Government managed fisheries;

and

• $20 million support for the hardwood timber industry as part of the Tasmanian Community Forest Agreement;
• an increase of $155.8 million to the Department of Defence, which includes:
• $40.9 million to provide a Special Forces Task Group to Afghanistan;
• $16 million to fund the deployment of helicopters and support elements in Afghanistan;
• $25.1 million in indexation adjustments;

and

• a net increase of $73.8 million consisting substantially of a reclassification of appropriation to revise Defence’s depreciation and inventory related estimates;
• an additional $29.2 million to the Attorney-General’s Department, including:
• $18.1 million for security costs associated with the APEC Leaders Week 2007;

and

• $10.5 million for enhancement of the national urban search and rescue capability;
• a total of $54.6 million to the Australian Federal Police for airport policing measures, in particular;
• $27.2 million for Phase One of Community Policing at Airports;
• $18.2 million to provide a first response counter terrorism capability at relevant airports;

and

• $9.2 million to establish Joint Airport Investigation Teams with the Australian Customs Service, who will also receive an additional $1 million for this initiative;
• an additional $16.5 million to increase the apprehension, detention and prosecution of illegal foreign fishers operating in Australia’s northern waters. As part of this measure the Australian Customs Service will receive $13.7 million;
• $28.5 million to the Department of the Environment and Heritage as additional supplementation for the Great Barrier Reef Structural Adjustment Package;
• a net increase of $41.2 million to the Department of Immigration and Multicultural Affairs, including:
• $16.2m to implement the Government’s response to the Palmer and Comrie Reports;
• $9.3 million to implement more flexible and timely immigration detention arrangements arising from amendments to the Migration legislation;

and

• $8.3 million to introduce a visa requirement for all maritime crew arriving in Australia;
• $22.5 million to improve aviation security. Of this amount, $11.9 million has been provided to the Department of Transport and Regional Services to improve security of international passenger aircraft through increased inspection of air cargo, while $10.6 million has been allocated to the Australian Customs Service to increase air-side patrols at airports;
• a total of $22.1 million has been provided to the Australian Tax Office, the Australian Crime Commission, the Australian Securities and Investment Commission and the Australian Federal Police to conduct investigations and prosecutions arising from Operation Wickenby;
• a net increase of $42 million to the Department of Foreign Affairs, including:
• a $10 million contribution to the American Red Cross as part of Australia’s response to the devastation caused by Hurricane Katrina in the United States;

and

• supplementation of $19.8 million for increased passport volumes.

The remaining amount in Appropriation Bill (No. 3)—around $577.8 million—relates to estimates variations and other measures.

I commend the bill to the Senate.

APPROPRIATION BILL (NO. 4) 2005-2006

Appropriation Bill (No. 4) provides additional funding to agencies for:

• expenses in relation to grants to the States under section 96 of the Constitution and for payments to the Northern Territory and the Australian Capital Territory; and
• non-operating purposes such as equity injections and loans.

The total additional appropriation being sought in Appropriation Bill (No. 4) 2005-2006 is almost $1.37 billion.

The principal factors contributing to the additional requirement since the 2005-2006 Budget include $744.4 million in additional payments to the States and Territories, such as:

• $346.3 million in GST compensation payments;
• an additional $304.3 million to support primary producers in regions that have been declared eligible for Exceptional Circumstances assistance;
• $18 million under the Tasmanian Community Forest Agreement to fund additional plantation establishment and productivity improvements in existing plantations and native forests;
• $16.3 million for mental health under the Australian Health Care Agreements;

and

• an additional contribution of up to $10 million to Victoria to enhance and extend the scope of the Melbourne 2006 Commonwealth Games opening ceremony.

Bill 4 also proposes $333.8 million in additional appropriation for non-operating expenses, including:

• $131 million to the Department of Health and Ageing to purchase and store antivirals, vaccines, intravenous antibiotics and protective equipment for the national medical stockpile, in preparation for a potential pandemic influenza;
• $27.9 million will be allocated to the Department of Defence to fund a Special Forces Task Group to Afghanistan, and a further $27million will be provided to deploy helicopters and support elements in Afghanistan. These increases have been fully offset by savings arising in the Department’s non-operating budget;
• a total of $34.3 million to the Australian Federal Police to fund the Joint Airport Intelligence Group and to implement Phase One of Community Policing at Airports;
• $40.9 million to the Department of Employment and Workplace Relations to implement the Workplace Relations Reform package;

and

• $11.4 million to the Australian Security Intelligence Organisation to fund additional temporary accommodation;

Finally, $290.5 million has been re-appropriated to the Department of Transport and Regional Services as a New Administered Expense for the Roads to Recovery program to facilitate the direct payment of these funds to local councils.

I commend the Bill to the Senate.

Debate (on motion by Senator Kemp) adjourned.

Ordered that the Appropriation Bill (No. 3) 2005-2006 and the Appropriation Bill (No. 4) 2005-2006 be listed on the Notice Paper as one order of the day, and the remaining bills be listed as separate orders of the day.