Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

I give notice that, on the next day of sitting, I shall move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to bills, as set out in the list circulated in the chamber, allowing them to be considered during this period of sittings.Asian Development Bank (Additional Subscription) Bill 2009Corporations Amendment (Improving Accountability on Termination Payments) Bill 2009Corporations Legislation Amendment (Financial Services Modernisation) Bill 2009International Tax Agreements Amendment Bill (No. 1) 2009Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment Bill 2009

I table statements of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statements incorporated in Hansard.

Leave granted.

The statements read as follows—

ASIAN DEVELOPMENT BANK (ADDITIONAL SUBSCRIPTION) BILL

Purpose of the Bill

The bill authorises the subscription by Australia for additional shares in the capital stock at the Asian Development Bank.

Reasons for Urgency

Introduction and passage of the bill in the 2009 Spring sittings will enable the Asian Development Bank to increase its short term response to the impact of the global recession in the Asia-Pacific region by ensuring further and early increases in lending.

Australia’s early subscription to the capital stock, whilst not impacting the Budget, will enable the Asian Development Bank to provide additional concessional lending to the Asia-Pacific region immediately whilst maintaining appropriate prudential standards.  This additional lending will help fill the finance gaps created due to the financial crisis in the Asia-Pacific region.  Australia will also encourage other member countries to fast track their subscriptions.

Australia, through the G-20, has committed to ensuring that multilateral development banks have appropriate capital for their resourcing needs.  Early subscription of capital stock at the Asian Development Bank will demonstrate Australia’s leadership in this important area.

Failing to subscribe to an increase in capital stock early would limit the Asian Development Bank’s ability to respond decisively and comprehensively to the global recession.  This may deepen the impact of the global recession in the Asia-Pacific region.

CORPORATIONS AMENDMENT (IMPROVING ACCOUNTABILITY ON TERMINATION PAYMENTS) BILL 2009

Purpose of the Bill

The bill amends the Corporations Act to urgently address deficiencies in the regulatory framework governing the payment of termination benefits to company directors and executives.

Reasons for Urgency

Passage of the Bill is sought in Spring 2009 to urgently enhance the regulatory framework governing the payment of termination benefits to company directors and executives.  The Bill was passed by the House of Representatives on 9 September 2009.

Termination benefits are a unique component of remuneration which warrant greater shareholder scrutiny and approval, particularly as the company and shareholders generally derive little or no value from such payments.

Currently, termination benefits can reach up to seven times a recipient’s total annual remuneration before shareholder approval is required.  This is a very high threshold.  Urgent action is required to reduce this threshold to better empower shareholders to reject excessive payments where they are not in the best interest of the company.

The reforms will also address growing community concern on termination benefits and provide businesses with certainty on this issue.

CORPORATIONS LEGISLATION AMENDMENT (FINANCIAL SERVICES MODERNISATION) BILL 2009

Purpose of the Bill

The bill amends the Corporations Act to establish national regulation of margin lending and trustee corporations and to improve the regulatory regime for the issue of debentures.

Reasons for Urgency

Passage of the Bill is sought in Spring 2009 to complete commitments under Council of Australian Governments (COAG) agreements made in 2008 to establish national regulation of margin lending and trustee corporations.  These are important and long-awaited reforms that will improve market efficiency and enhance consumer protection.

Debate on the Bill in the House of Representatives commenced on 10 September 2009 and is expected to be concluded on 14 September.

Inclusion of margin loans under the Corporations Act will establish, for the first time, a national investor protection regime ensuring that providers of margin loans will be subject to the Act’s licensing, conduct and disclosure requirements, as well as supervision and enforcement action by the Australian Securities and Investments Commission (ASIC).

Transferring regulation of trustee corporations from the States and Territories to the Commonwealth will reduce the regulatory burden on these corporations, create a national market for trustee services and protect consumers by establishing a national consumer protection and disclosure regime.

INTERNATIONAL TAX AGREEMENTS AMENDMENT BILL (NO. 1) 2009

Purpose of the Bill

The bill gives the force of law to:

• the Agreement between the Government of Australia and the Government of the British Virgin Islands for the Allocation of Taxing Rights with Respect to Certain Income of Individuals, which was signed in London on 27 October 2008; and
• the Agreement between the Government of Australia and the Government of the Isle of Man for the Allocation of Taxing Rights with Respect to Certain Income of Individuals and to Establish a Mutual Agreement Procedure in Respect of Transfer Pricing Adjustments, which was signed in London on 29 January 2009.

Reasons for Urgency

In order for the British Virgin Islands Agreement and the Isle of Man Agreement to take effect (for Australia) from 1 July 2010, it is necessary that they both enter into force by 31 December 2009.  Importantly, the legislation supports the Australian Government initiatives to combat offshore tax avoidance and evasion and therefore protecting future revenue sources. 

The legislation also coincides with the global initiatives being progressed by the G20 to secure the integrity of the global financial system.

OFFSHORE PETROLEUM AND GREENHOUSE GAS STORAGE LEGISLATION AMENDMENT BILL 2009

Purpose of the Bill

The bill:

• corrects an administrative gap in the provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 to allow for the investigation of significant offshore petroleum or greenhouse gas incidents and provide the responsible Commonwealth Minister with standing powers to appoint a Commissioner to undertake a Commission of inquiry into the operational, human and regulatory factors into such incidents;
• reduces the regulatory burden on the offshore petroleum industry and streamlines and clarify administrative processes; and
• makes other minor policy and technical amendments to remove ambiguities.

Reasons for Urgency

Provisions in the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment Bill 2009 will enable the responsible Commonwealth Minister to appoint a Commissioner to conduct a Commission of inquiry into the operational, human and regulatory factors surrounding the uncontrolled release of oil and gas at the Montara offshore oil field in the Timor Sea.

The inquiry will enable governments, regulators and the industry to be fully informed of all matters surrounding an offshore incident.  This will enable all stakeholders to learn from these incidents and initiate appropriate changes (legislative and operational) to prevent similar future incidents.