Nigel Scullion (NT, Country Liberal Party, Minister for Community Services) 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—

AGRICULTURAL AND VETERINARY CHEMICALS (ADMINISTRATION) AMENDMENT BILL 2007

The Agricultural And Veterinary Chemicals (Administration) Amendment Bill 2007 amends the Agricultural and Veterinary Chemicals (Administration) Act 1992 (the Administration Act) to implement the outcome of the assessment of the Australian Pesticides and Veterinary Medicines Authority (APVMA) against the Uhrig review templates.

The APVMA is an Australian Government statutory authority established to administer a joint Commonwealth and state/territory regulatory scheme, assuring the safety and effectiveness of agricultural and veterinary chemical products throughout Australia. The APVMA is an independent body corporate. It implements the legislative powers and functions provided to it under the legislation on behalf of all jurisdictions, including powers and functions conferred on it by state and territory legislation.

The amendments will provide for the authority to come into line with the best practice identified in the Australian Government response to the Uhrig review recommendations. The objective of the Uhrig review was to consider existing governance arrangements for statutory authorities and office holders and to develop a best practice template of governance principles that could be applied to all statutory authorities and office holders.

My department carried out an assessment of the APVMA against the Uhrig review templates and concluded that the executive management corporate governance structure is most appropriate for the APVMA. The assessment concluded that the APVMA should retain its independence, but be reconstituted, with the current board of directors being replaced by an executive manager (Chief Executive Officer) supported by an Advisory Board, with a similar range of skills and experiences to those currently specified for the APVMA Board of Directors. The bill before parliament implements these recommendations, which flow from the Uhrig report.

These reforms relate only to changing governance structures. As a result, there would be no significant changes to the day-to-day functions or independence of the APVMA. The APVMA would:

• remain an independent body corporate called the APVMA,
• retain its current functions and powers,
• continue to be funded by cost-recovery from industry,
• retain the provision for the conferral of powers by a state government law,
• continue current stakeholder consultative arrangements, and
• continue to receive policy direction from the Primary Industries Ministerial Council.

Consistent with the executive management governance structure, the APVMA will become subject to the provisions of the Financial Management and Accountability Act 1997, rather than the Commonwealth Authorities and Companies Act 1997. Staff of the APVMA will be persons engaged under the provisions of the Public Service Act 1999 rather than persons employed under the ‘Administration Act’. The bill includes provision for these matters and the transitional issues associated with these reforms.

The amendments only affect the governance arrangements for the APVMA and do not impact on the authority’s functions or the administration of the national registration scheme for agricultural and veterinary chemicals.

AGRICULTURE, FISHERIES AND FORESTRY AMENDMENT (2007 MEASURES No 1) BILL 2007

The red meat processor industry has a value of about $15 billion a year and earns nearly $7 billion in export revenue.

Collectively-funded marketing and research and development (R&D) have underpinned this industry’s value to Australia’s economy and enabled it to meet its whole-of-industry commitments as envisaged under the red meat industry’s Memorandum of Understanding (MOU).

Since the 1998 red meat industry restructure a voluntary contributions system has funded the meat processors’ marketing and research and development programmes.

These programmes have been managed by the industry’s service company, Australian Meat Processor Corporation Ltd (AMPC).

For the past three years the industry has been engaged in discussions on the future of this funding arrangement.

As a result, in December 2006 a clear majority ballot conducted by the Australian Electoral Commission voted in favour of replacing the voluntary contributions system with a statutory levy on the slaughter of cattle, sheep and goats.

The processing sector also made it clear that its preference is to continue using the existing service company, AMPC, to administer the levy funds and not Meat and Livestock Australia Ltd (MLA) as provided for in current legislation and the industry MOU.

The other sectors of the red meat industry also support the preference for AMPC.

The Government believes collectively-funded marketing and R&D programmes is key to continued industry growth and productivity.  Consequently, the Government supports the move to a statutory levy and has no objection to AMPC receiving and administering the funds.

A funding agreement will be drawn up between AMPC and the Commonwealth to ensure the funds are managed in accordance with the Government’s accountability requirements.

The Australian Meat and Live-stock Industry Act 1997 makes no provision for a meat processor services body to receive levy funds.

It limits the disbursement of levies and charges to an industry body and a livestock export body, namely MLA and the Australian Livestock Export Corporation.

Without amendment to the Act, the funds would automatically flow to, and be administered by, MLA; contrary to the meat processor preference.

The bill amends the Australian Meat and Live-stock Industry Act 1997 to allow the Minister to determine a meat processor marketing body and a meat processor research body and for these bodies to receive revenue derived from statutory levies.

The intention of the Act, whereby MLA is the predominant red meat industry research body and marketing body, remains.

This means the Government will continue its dollar for dollar matching of payments to the industry research body, that is, to MLA, in respect of industry research expenditure.

As was envisaged by the Government under the 1998 restructure, this will preserve the incentive for research services to be provided by the industry research body, while allowing for the meat processor sector to have ownership and control over its own R&D funds.

Under the statutory levy system certain disaggregated levy payer information would not be available to industry as it has been under the voluntary contributions system.

As a separate process, amendments are being proposed to other legislation to allow the information to be disseminated to the red meat industry. 

However, those separate amendments will not make provision for the Commonwealth to control who in the industry can receive statutorily collected levy-payer information or to specify how that information can be used.

Accordingly, this bill makes provision for such a control.  The intention is for the dissemination to be limited only to the red meat industry services companies.  The proposed level of control is similar to that already in place for the dairy industry.

The bill does not change the Act’s broader intentions of viewing the red meat industry as one industry and at the same time providing for autonomy and self-determination for the sectors within.

Rather, the bill responds to specific industry needs.  It gives effect to changes in the face of clear indications from the meat processor sector that existing arrangements are no longer supported and that the new arrangements will enable the sector to continue to meet its own and whole-of-industry commitments.

AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH AMENDMENT BILL 2007

This Bill amends the Australian Centre for International Agricultural Research Act 1982 by making changes to the governance arrangements of the Australian Centre for International Agricultural Research (ACIAR). 

ACIAR is a statutory authority within the Foreign Affairs and Trade Portfolio, and its activities are part of Australia’s Aid Program.  ACIAR was established in 1982 to assist and encourage agricultural researchers in Australia to use their skills for the benefit of developing countries, while at the same time working to solve Australia’s own agricultural problems.

The intention of the Bill is to implement the Government’s response to the Review of Corporate Governance of Statutory Authorities and Office Holders conducted by Mr John Uhrig.  The Government has been reviewing all statutory agencies in the context of Mr Uhrig’s recommendations to achieve the most effective accountability and governance structures across the whole of government.

The Government has assessed ACIAR’s existing governance arrangements against the principles and recommendations of the Uhrig Review.  It considers that the current Board of Management structure is inconsistent with the executive management template recommended by Mr Uhrig for agencies covered by the Finance Management and Accountability Act 1997 (FMA Act).

The Bill creates the position of Chief Executive Officer (CEO), in place of the current Director.  The CEO will be directly accountable to the Minister for administrative and financial purposes under the FMA Act.  In addition, the Bill abolishes the Board of Management of the Centre and establishes a seven member expert Commission.  The Commission, which will include the CEO, will provide expert policy and research advice in place of the current Board.  The current Policy Advisory Council (PAC), which includes key overseas stakeholders, will be retained.  However, this Bill will introduce amendments to ensure there will be no duplication of membership between the Commission and the PAC.

The establishment of a Commission and the position of CEO will not alter the functions of ACIAR.  ACIAR will retain its capacity for collective decision making (through the new Commission) while bringing its management under the CEO.  These changes are consistent with the executive management template recommended by the Uhrig review.

On behalf of the Government, I would like to thank the current and previous ACIAR Boards.  I am grateful for their commitment and expertise which have contributed enormously to enabling ACIAR to develop effective and practical research programs to assist developing country partners solve their agricultural problems and build research capacity.  I look forward to working with the new Commission when it is appointed under the provisions of this Bill.

AUSTRALIAN WINE AND BRANDY CORPORATION AMENDMENT BILL (No.1) 2007

The Australian Wine and Brandy Corporation Amendment Bill (No.1) 2007 (the Bill) amends the Australian Wine and Brandy Corporation Act 1980 (the Act) to implement the outcome of the assessment of the Australian Wine and Brandy Corporation against the Uhrig Review templates.

The Australian Wine and Brandy Corporation (AWBC) is an Australian Government statutory authority established to provide strategic support to the Australian wine industry with its core functions being export regulation and promotion of Australian wine.

The amendments will provide for the AWBC to come into line with the Uhrig Review recommendations.  The objective of the Uhrig Review was to identify issues surrounding existing governance arrangements and to provide options for government to improve the performance of statutory authorities and office holders, and improve their accountability frameworks.

My Department carried out an assessment of the AWBC against the Uhrig Review findings and concluded that a Board is the appropriate management structure for the AWBC. The assessment recommended a small number of changes to bring the AWBC into line with the Uhrig Review recommendations.

The assessment concluded that the current practice of appointing a Government member, typically a public servant, on the AWBC Board should be discontinued. Given the abolition of the specific Government member position the assessment found that the skills set for Board member selection should be expanded to include expertise in public administration. The Bill before the Parliament implements these recommendations which flow from the Uhrig report.

This decision will also address the potential for a conflict of interest for serving public servants.  There will no longer be a potential conflict between their responsibilities to the Government and Parliament and as a Board member to the Board. 

The Bill also includes a provision for the AWBC Selection Committee to provide me with an annual report on its operations. It is proposed that the Committee commence reporting for the 2007-08 financial year and continue in subsequent years. This provision strengthens the governance arrangements and transparency of AWBC operations.

COMMUNICATIONS LEGISLATION AMENDMENT (CONTENT SERVICES) BILL 2007

More Australians than ever are using mobile phones and today’s users expect their mobiles to deliver ever increasing types of entertainment and information. Mobile phones and other hand-held devices now offer access to a range of media-rich services including broadcasting, Internet and telephone content. New content services such as live streamed services are also being delivered through subscription Internet portals.

Such services can be expected to bring substantial benefits for Australian consumers and new business opportunities for carriage service providers (CSPs) and content service providers, however, they may also carry potentially offensive or harmful content. The Australian Government takes very seriously its responsibility to protect Australian citizens, particularly children, from exposure to illegal and highly offensive content delivered over convergent devices such as mobile handsets, and also over the Internet more generally.

The Review of the Regulation of Content Delivered Over Convergent Devices (‘the Review’) was conducted by the Department of Communications, Information Technology and the Arts and released in April 2006. It found that there may be a lack of appropriate protections for users, particularly children, from inappropriate audio-visual content on mobile devices and existing regulatory frameworks  may not provide an effective response.

The Communications Legislation Amendment (Content Services) Bill 2007 (the Bill) gives effect to the Government’s commitment to extend the current safeguards to put in place new measures to protect consumers from inappropriate or harmful material on convergent devices such as 3G mobile phones and through subscription Internet portals.

The Bill establishes a framework which aims to regulate emerging content services in a platform and technology neutral manner – it strengthens the regulation of ‘stored’ content where this is delivered on a commercial basis and establishes new rules to address ‘live’ and interactive content services such as chat rooms. The immediate effect of this will be that service providers supplying content services including live, streamed services over a carriage service such as a mobile phone will be subject to these new obligations.

The main focus of the Bill is to extend the general approach adopted by the Government in relation to content regulation to those services where it considers adequate safeguards are not currently in place.

Much of the content for these new services is likely to be based on content created for supply in relation to a range of other existing media services.  The new regulations will be aligned, as far as possible, with the regulation of traditional media content.  At the same time, the framework takes account of the technical and other differences applying to the delivery of content on these new platforms including their impact on the ability of service providers to practically manage the wide range of content being delivered to users.

Under the proposed new framework content that is, or potentially would be, rated X 18+ and above must not be delivered or made available to the public, and access to material that is likely to be rated R18+ must be subject to appropriate age verification mechanisms.

As a general rule, where content is provided by means of a content service that is operated on a commercial basis, and is likely to be classified MA 15+ or above, access must only be made available subject to appropriate age verification mechanisms. This requirement will include content provided to premium mobile services but not to a news or current affairs service, or to electronic books or magazines.

Similar limitations relating to prohibited content and age verification mechanisms will also apply in relation to live streamed services.

In the case of electronic editions of print publications such as books and magazines, where these have been classified ‘Restricted-Category 1’, ‘Restricted – Category 2’ or ‘Refused Classification’ they will be prohibited. Electronic editions of publications which are unrestricted in print form will be excluded from the new regulatory framework and will be able to be made freely available online.

Similarly, certain types of content services, including those which provide content regulated under existing broadcasting regulatory frameworks, and the content of private users’ personal communications will be excluded from the scope of the new regulatory framework. 

Carriage service providers who do no more than provide a carriage service that enables content to be delivered or accessed will not be considered to be providing a content service under the new scheme.

The new regime will be based on a take-down model as used under the existing Online Content Scheme. Under the new scheme, a content service provider will need to remove access to prohibited content or potential prohibited content if ACMA issues them with a ‘take-down’ notice for stored or static content, or a ‘service-cessation’ notice for live content, or a ‘link deletion’ notice for links to content.

Where a content service provider fails to comply with a notice from ACMA, civil or criminal penalties may be pursued.

To strengthen the ability of the scheme to respond to repeated and deliberate offences by providers of stored content, such as for example where stored picture or video content is slightly modified or changed but still in breach of the requirements, the Bill proposes to enable ACMA to issue a notice to a hosting service provider to ensure that content that is substantially similar to the stored content already subject to a take-down notice is not made available.

Consistent with the co-regulatory approach which has been implemented for other media such as television, radio and the Internet, the providers of new content services will be given the opportunity to develop industry codes to implement cost-effective mechanisms and rules for meeting their obligations under the regulatory framework.

Different sections of the content services industry will be able to develop codes of practice to give effect to certain content service provider obligations, and where necessary, ACMA will have the power to determine industry standards where it considers that industry codes are deficient in ensuring that content services are provided in accordance with prevailing community standards.

Live content services will be regulated in a manner consistent, as far as possible, with the regulation of traditional media content and the new approach for stored or static content services provided to convergent devices.

Although pre-assessment of live or ‘real time’ services is in many ways impractical, it will be mandatory that codes of practice developed for live services provided on a commercial basis include provisions to deal with the assessment of the likely nature of these services.  Under these mandatory code requirements, commercial content service providers who deliver live services must seek the advice of a trained content assessor on the likely classification before providing the service if there is a reasonable likelihood that the service would be classified as MA15+ or above. If the advice indicates that the service is likely to fall within a restricted category, it is incumbent upon the service provider to deliver the service with appropriate consumer information and age-verification mechanisms.

The Bill also outlines examples of matters which may be addressed in a code of practice including complaint handling procedures, consumer information requirements, promoting the awareness of safety issues including in relation to commercial chat services, and the making and retention of records.

The Bill and subsequent amendments to the Telecommunications Act 1997 will implement measures to require a mobile service account holder’s consent before the location of any handsets operated under the account may be used or disclosed. This will address concerns about the potential for location-based services to be used to facilitate inappropriate contact with minors.

The Communications Legislation Amendment (Content Services) Bill 2007 provides for the timely introduction of a new regulatory framework for a rapidly developing area of the communications sector. It is part of a wide-ranging package of measures introduced by the Australian Government to ensure that Australian consumers have access to new, innovative services. The new framework provides appropriate protections for children from being exposed to content suited only to adults while providing industry with the flexibility to explore the potential of providing entertainment and other services over new technologies.

The Government has also taken the opportunity in this Bill to amend the Telecommunications (Consumer Protection and Service Standards) Act 1999 to ensure that Australia’s Indian Ocean Territories comprising Christmas Island and the Cocos (Keeling) Islands, can be included in the regular independent reviews of telecommunications services in regional, rural and remote Australia. This will help in ensuring that the adequacy of these territories’ telecommunications services is appropriately assessed.

CORPORATIONS (NZ CLOSER ECONOMIC RELATIONS) AND OTHER LEGISLATION AMENDMENT BILL 2007

Today I introduce a Bill which will amend the Corporations Act 2001 to further support initiatives that build closer economic relations between Australia and New Zealand, with the possibility of extending them to other countries.  The Bill also makes important amendments to enable the Australian Competition and Consumer Commission to exchange certain information with domestic and international regulators.

The initiatives embodied in the Bill are consistent with the Australia - New Zealand Closer Economic Relations Trade Agreement, which has shaped economic and trade relations between our two countries since 1983.  They also further the work programme attached to the Memorandum of Understanding on the Coordination of Business Law between Australia and New Zealand. 

Importantly, the Bill includes four key measures to implement closer economic relations and reduce duplication in regulatory compliance.

Firstly, the Bill establishes a mutual recognition regime for the issue of securities and interests in managed investment schemes.  This implements the agreement reached in a Treaty between Australia and New Zealand on securities offerings.

Currently, if a New Zealand entity seeks to issue securities to investors in Australia and New Zealand, it must comply with two substantive regulatory regimes - the requirements of the home (New Zealand) regime and the Australian Corporations Act, unless an exemption applies.

Because this duplication imposes additional costs on entities, often securities offers are not extended to Australian investors, which reduces investors’ choice.

The Bill will allow a New Zealand entity to offer securities in Australia and New Zealand, based largely on compliance with New Zealand fundraising laws.  Mutual recognition means that Australian entities will be able to offer securities in New Zealand under reciprocal simpler regulatory arrangements.

There is a role for the regulators of both countries in the regime.  The Australian Securities and Investments Commission (ASIC) will have primary responsibility for taking action against New Zealand issuers who breach the requirements of the regime, which they have opted into in Australia.  Further the New Zealand regulator will have primary responsibility for supervising a cross-border offer into Australia.

Critically, if a New Zealand entity breaches the requirements of the regulatory regime, ASIC will have the power to stop the offer, prohibit advertisements in Australia and ban the fundraiser from making future offers.  There are also criminal penalties for breaches of the regulatory requirements.

The Bill will continue to protect investors by ensuring that they receive the information they need to make informed investment decisions.  In this context, the regime will apply to fundraising only, and not to the provision of financial advice. 

In the case of breaches of laws relating to fundraising activities, investor remedies will be available in the courts of either jurisdiction.

Overall, the regulatory regime is designed to facilitate investment, enhance competition and provide greater investor choice.

Secondly, the Bill provides for the mutual recognition of companies.  The Bill will exempt entities from those countries specified in the Regulations from being required to lodge specific information or documents with ASIC if that same material is lodged with an equivalent authority in that country.

The Bill will not remove the requirement for entities to register with ASIC to operate in Australia.  However, this initiative will reduce the administrative burden of registration and ongoing lodging requirements.  The Bill will thereby reduce duplication in information that is currently lodged with both ASIC and foreign regulators, which in the first instance will be the equivalent New Zealand regulator. 

New Zealand recently enacted reciprocal arrangements to give the New Zealand regulator the power to make similar exemptions in relation to Australian companies operating in New Zealand. 

Relevant information will continue to be accessible as both ASIC and the New Zealand regulators are able to share information in this context.

Thirdly, the Bill will enhance the Australian Competition and Consumer Commission’s (ACCC’s) ability to share information with others, including the New Zealand Commerce Commission.  The ACCC is currently limited in its ability to share important information with others, including its counterpart regulators.

This initiative will place the ACCC in a similar position to that of ASIC with respect to information sharing.  Section 127 of the Australian Securities and Investments Commission Act 2001 provides for the appropriate disclosure of information by ASIC to Australian, and foreign, governments and agencies, including regulators.  Similarly, this initiative will enable the ACCC to share information with governments and other agencies, where that information will enable or assist them in performing or exercising their functions or powers.

This initiative will assist the ACCC and other bodies to efficiently and effectively enforce the law.  It will also assist in reducing the regulatory burden on business by enhancing co-operation and co-ordination between agencies.

The fourth initiative in the Bill will provide for the protection of certain information given, or obtained, by the ACCC, including from a foreign government body.  Importantly, the Bill will not allow an ACCC official to disclose protected information, except in the performance of their duties or functions or as otherwise permitted by law.

The ACCC information-sharing initiatives implement recommendations made in the 2004 Productivity Commission (PC) Research Report entitled Australian and New Zealand Competition and Consumer Protection Regimes.  The PC recommended that the Trade Practices Act 1974, and corresponding legislation in New Zealand, should be amended to allow the ACCC and the New Zealand Commerce Commission to exchange information obtained through their information gathering powers.  The Bill will also implement the recommended safeguards to ensure against the unauthorised use and disclosure of confidential or protected information.

Clearly this Bill fosters better and enhanced cooperation between Australia and New Zealand.  Its measures are deregulatory in nature, whilst preserving important consumer protections.  In this way, the Bill can only help facilitate better economic outcomes for the benefit of all Australians.

DEFENCE FORCE (HOME LOANS ASSISTANCE) AMENDMENT BILL 2007

This Bill seeks to further extend the operation of the Defence HomeOwner Scheme (the Scheme), from 31 December 2007 to 30 June 2008.  The legislative basis for the Scheme is the Defence Force (Home Loans Assistance) Act 1990.

Late last year Parliament approved the Defence Force (Home Loans Assistance) Amendment Act 2006 which extended the operation of the Scheme from 31 December 2006 to 31 December 2007. 

The extension of the end date was required to enable Defence enough time to review the current Scheme and develop a home ownership assistance scheme that is more contemporary to meet the needs of both Defence and ADF members.

Defence has completed this review of home ownership assistance and the results were announced on 9 May by the Government as part of the 2007 Budget.

The scheme is:

Defence Home Ownership Assistance Scheme

Value?

• $864 million over the next 10 years.

Why is this important?

• This provides ADF members with assistance to