Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) 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—

Appropriation Bill (No. 3) 2009-2010

I rise to introduce Appropriation Bill (No. 3) 2009-2010.

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 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 additional appropriation being sought through Additional Estimates Bills 3 and 4 this year is a little over $2 billion.

Turning to Appropriation Bill (No. 3), the total appropriation being sought this year is $1.69 billion. This proposed appropriation arises from changes in the estimates of program expenditure, due to variations in the timing of payments and forecast increases in program take-up, reclassifications and from policy decisions taken by the Government since the last Budget.

I now outline the major appropriations proposed in the Bill.

The Government will provide an additional $510.8 million to the Department of the Environment, Water, Heritage and the Arts to meet commitments under the Solar Homes and Communities Plan.  This program was terminated on 9 June 2009, and replaced by the Solar Credits Scheme. The new program provides assistance to households, small businesses and community groups with the upfront costs of eligible small-scale renewable energy systems installed after 9 June 2009 through the expanded Renewable Energy Target.

In addition, the Government will adjust funding for the National Rainwater and Greywater Initiative, to meet lower-than-expected demand, resulting in a saving $13 million in the current financial year. It will also reduce funding for project contingencies under the Water Smart Australia program, saving a further $10 million in 2009-10.

The Government will also provide the Department of the Environment, Water, Heritage and the Arts with $16.1 million for the Tasmanian Forest Package. In addition, an unspent amount of $20.1 million, resulting from project delays, will be carried forward from last financial year for the Living Murray Initiative.

The Government proposes to bring forward $290 million from 2011-12 for the Department of the Environment, Water, Heritage and the Arts to meet an increase in demand for the Home Insulation Program. This amount is in addition to the $695.8 million proposed in the Appropriation (Water Entitlements and Home Insulation) Bill 2009-2010 introduced into Parliament on 18 November 2009, the funding for which is required by December 2009. The $290 million proposed in this Bill is required less urgently and will meet demand for the program in the months following passage of the Additional Estimates appropriation Bills.

The Department of the Environment, Water, Heritage and the Arts will also be provided with $24.8 million for the Climate Change Action Fund, which is matched by a corresponding reduction in the funding for the Department of Climate Change.

The Government is proposing to provide the Department of Health and Ageing with $45.2 million in response to the H1N1 influenza virus pandemic. The funding seeks to manage this pandemic and to enhance preparedness for any future pandemics by supporting activities such as:

• the storage, compounding and distribution of antivirals and personal protective equipment;
• the production, processing and distribution of immunisation consent forms; and
• the conduct of an immunisation awareness campaign.

In addition, the Department of Health and Ageing will be provided with $12.4 million which was unspent last financial year because of project delays for the Zero Real Interest Loans program. The program provides capital funding to build and expand residential aged care and respite facilities in areas of high need.

The Government will streamline arrangements and introduce efficiencies at Centrelink to deliver substantial savings over the next four years. From 1 July 2010, paper forms received by Centrelink will be scanned to reduce the cost of transferring forms between Centrelink sites and to reduce storage of paper documents. This initiative is expected to deliver net savings of $131.3 million over four years. An amount of $12.4 million is proposed in Bill 3 to prepare for the introduction of the streamlined arrangements.

In addition, the Government will streamline the arrangements for job seekers from 1 July 2010 with the fortnightly income reporting requirements being met through electronic lodgement over the Internet, or by telephone utilising interactive voice recognition software. This measure is expected to deliver net savings of $95.2 million over four years. Appropriation Bill 3 includes $14.5 million for Centrelink to implement the initiative.

The Department of Education, Employment and Workplace Relations will be provided with the following additional amounts:

• $40 million to meet an increase in demand for assistance from the General Employee Entitlements and Redundancy Scheme due to a rise in bankruptcies and insolvencies. This is a basic payment scheme designed to assist employees who have lost their employment as a result of the insolvency of their employer and are owed certain employee entitlements.
• $20.3 million will be provided to establish environmental and heritage training and work experience placements, lasting 26 weeks, for young people aged 17 to 24.
• The Government will provide the Defence Materiel Organisation with $43.4 million for personnel and other operating costs associated with delivering additional activities required to be performed on behalf of the Department of Defence. This increase is matched by a reduction in the Department of Defence’s departmental operating expenses.
• An additional appropriation is proposed for the Department of Immigration and Citizenship as follows:
• $63 million will be provided to meet the cost of increased irregular maritime arrivals; and
• A further $11.2 million is proposed to expand Christmas Island’s accommodation capacity in response to increased irregular maritime arrivals.

These increases are partially offset by a reduction of $19.3 million resulting from lower than expected activity levels in the Department’s Visa and Migration Services.

The Government proposes an additional $19.95 million for the Department of Families, Housing, Community Services and Indigenous Affairs, for payments under the National Rental Affordability Scheme due to a greater than expected number of charities looking to participate in the Scheme. This change is accompanied by a reduction in the estimated administered Refundable Tax Offsets payments and results in an overall budget neutral rebalancing of estimates between the Department and the Australian Tax Office in 2009-10.

The Australian Tax Office will be provided with $11.3 million, which has been carried forward from last financial year, to fund a public awareness campaign concerning the Small Business and General Business Tax Break, the passage of legislation for which was delayed until May 2009.

The appropriations that I have outlined so far are proposed to meet additional funding requirements that have arisen since the last Budget. There is a further category of requirement for additional appropriation, referred to as a ‘reclassification of appropriation’, that are also proposed in Appropriation Bill (No.3).

These amounts need to be re-appropriated to align the purpose of the proposed spending with the correct appropriation type. The additional appropriations are fully offset by savings against the original appropriations and thus do not lead to additional expenditure.

I now outline the material reclassifications proposed in Bill 3:

The Department of Defence will be provided with $639.2 million in Departmental Outputs appropriation to align its appropriations with its work program. This additional amount will be more than fully offset by reductions in its non-operating appropriations, resulting in a net saving to the Budget overall.

The Department of the Environment, Water, Heritage and the Arts will be provided with $118.7 million as an administered expense appropriation for the Sustainable Rural Water Use and Infrastructure program. This amount represents a reclassification of appropriation from the Administered Assets and Liabilities appropriation provided in the last Budget.

The Department of Education, Employment and Workplace Relations will receive $42.6 million for the Support for Child Care Program. This amount, which was originally appropriated in Appropriation Act (No. 2) as a States, ACT, NT and local government item has been identified as a Commonwealth Own Purpose Expense and so has been reclassified.

The remaining amounts that appear in Appropriation Bill (No. 3) relate to estimates variations, minor reclassifications and other minor measures.

I would like to turn now to a new clause that is included in Bill 3. The new clause gives effect to the Government’s decision to reduce the amounts of unspent or uncommitted depreciation and make-good funding that agencies have accumulated since the introduction of accrual appropriations in 1999-2000. This clause will operate separately and in addition to the current appropriation reduction provisions. The clause will apply to both the Departmental Outputs and Administered Expenses appropriations. A similar clause is provided in Appropriation Bill (No. 4). It is intended that the new clauses will only appear in these Additional Estimates Bills and will not be required in future Bills. The proposed new clause is discussed in the Explanatory Memorandum.

Appropriation Bill (No. 4) 2009-2010

Appropriation Bill (No. 4) 2009-2010 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 Australian Capital Territory, the Northern Territory and local government authorities; and
• non-operating purposes such as equity injections and the acquisition of administered assets.

The total additional appropriation being sought in Appropriation Bill (No. 4) 2009-2010 is $310.9 million, the more significant amounts of which I now outline.

The Government proposes an additional appropriation of $167 million for the Department of Infrastructure, Transport, Regional Development and Local Government. This includes funding for:

• the establishment of a Local Government Reform Fund to help councils manage their infrastructure and to plan for their future needs; and
• funding under the Regional and Local Community Infrastructure Program to support investment in community infrastructure, such as libraries, community centres, sports grounds and environmental infrastructure.

The total of $167 million includes amounts which have been previously provided as follows:

• $114.9 million has been reclassified from administered expenses in Appropriation Act (No. 1) to make payments direct to local government for the East Kimberley Development Package;
• $18.3 million has been reclassified from payments which were to be made under the Federal Financial Relations Act 2009 to payments direct to local government for various Nation Building Roads to Recovery projects; and
• $10 million, which was unspent last financial year due to delays in the negotiation of funding arrangements, is proposed for the Regional and Local Community Infrastructure Program.

These additional appropriations are fully offset by savings against the original appropriations and estimates and thus will not lead to additional expenditure.

A reallocation of appropriation is proposed for the Department of the Environment, Water, Heritage and the Arts for the National Solar Schools program. The Department will receive funding of $19.8 million as a State, ACT, NT and local government item, matched by reductions in Appropriation Act (No. 1) administered expense funding, to facilitate that component of the program which is delivered through the States for non-government schools. In addition, funding of $15.8 million has been brought forward from 2012-13 for the National Solar Schools Program to meet demand in the current financial year for non-government schools.

The Government will provide the Department of Health and Ageing with $26 million capital funding in response to the H1N1 influenza virus pandemic to purchase H1N1 influenza vaccine and fund the associated clinical trials.

An amount of $34.1 million is proposed for the Department of Immigration and Citizenship to expand the accommodation capacity at Christmas Island in response to increased irregular maritime arrivals.

The remaining amounts that appear in Bill 4 relate to estimates variations, minor reclassifications and other minor measures.

I would like to turn now to the general drawing right limits for the Nation-building Funds, which specify the maximum limit on payments from the Funds in a financial year. The Education Investment Fund and Health and Hospitals Fund general drawing rights limits proposed in this Bill will replace the limits declared in Appropriation Act (No. 2) 2009-2010, reflecting recently announced funding for the Giant Magellan Telescope and minor adjustments in the timing of payments from the Funds.

Bill 4 also includes a new clause that provides that where a GST qualifying amount arises for payments made in reliance on a general drawing right limit, the limit will increase by the amount of the GST qualifying amount. This makes clear that the general drawing rights limits are the sum of the amounts stated plus any GST qualifying amounts. This clause also covers payments made in 2008-09.

Appropriation Bill 4 also includes a new clause to give effect to the Government’s decision to reduce the amounts of unspent or uncommitted depreciation and make-good funding that the Parliamentary Departments have accumulated since the introduction of accrual appropriations in 1999-2000. This clause will operate separately and in addition to the current appropriation reduction provisions that are contained within the Parliamentary Departments appropriation Acts.

It has been necessary to include this clause in Bill 4 because there is no Additional Estimates appropriation Bill proposed for the Parliamentary Departments this financial year. The clause will apply to the Departmental Outputs and Administered Expenses appropriations or the three Parliamentary Departments. It is intended that the new clause will only appear in Bill 4 and will not be required in future Bills. The proposed new clause is discussed in the Explanatory Memorandum.

Crimes Legislation Amendment (Torture Prohibition and Death Penalty Abolition) Bill 2009

I am pleased to introduce the Crimes Legislation Amendment (Torture Prohibition and Death Penalty Abolition) Bill 2009.

The Bill contains two key measures.

First, it enacts a specific Commonwealth torture offence in the Commonwealth Criminal Code, to operate concurrently with existing offences in State and Territory criminal laws.

Second, it amends the Commonwealth Death Penalty Abolition Act 1973 to extend the application of the current prohibition on the death penalty to State laws, to ensure the death penalty cannot be introduced anywhere in Australia.

The overarching purpose behind these amendments is, in the spirit of engagement with international human rights mechanisms, to ensure that Australia complies fully with its international obligations to combat torture and to demonstrate our commitment to the worldwide abolitionist movement.

Prohibition of torture

Since 1989, Australia has been a party to the United Nations Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment. Among other obligations, the Convention requires Australia to ensure that all acts of torture are offences under domestic criminal law. Torture is defined in the Convention as any act by which severe pain or suffering is intentionally inflicted upon a person by a public official for certain specified purposes—such as obtaining information or a confession from a person.

In previous periodic reports to the UN Committee Against Torture, Australia has stated that it meets its obligations on the basis that acts falling within the Convention’s definition of torture are offences under State and Territory criminal laws. These acts include the infliction of bodily harm, murder, manslaughter, assault and other offences against the person.

The Crimes (Torture) Act 1988 (Cth) currently criminalises acts of torture committed outside Australia, only when committed by Australian citizens or other persons who are subsequently present in Australia. Acts of torture that are committed anywhere in the world during the course of an armed conflict or as a crime against humanity are currently criminalised under the Criminal Code Act 1995 (Cth).

In recent years, the UN Committee Against Torture has been critical of nations that have not enacted torture as a specific criminal offence, and has called on nations to do so. In its Concluding Observations on Australia, issued in May 2008, the Committee recommended that Australia enact a specific offence of torture at the federal level.

Mindful of the Committee’s recommendation, and determined to demonstrate the Government’s condemnation of torture in all circumstances, the Government is enacting a new offence of torture in the Criminal Code, which will criminalise acts of torture committed both within and outside Australia.

As the new offence will result in the redundancy of the Crimes (Torture) Act, that Act will be repealed. Giving the offence extraterritorial application is intended to reflect a key aim of the Convention, which is to end impunity for torture globally. The new offence is intended to fulfil more clearly Australia’s obligations under the Convention Against Torture.

The offence is intended to operate concurrently with existing State and Territory offences. The Bill makes it clear that the enactment of the new offence is not intended to exclude or limit the concurrent operation of any other law of the Commonwealth or any law of a State or Territory.

Abolition of the Death Penalty

Australia has a long-standing policy of opposition to the death penalty. Australia is a party to both the International Covenant on Civil and Political Rights and the Second Optional Protocol to the Covenant Aiming at the Abolition of the Death Penalty.

The ICCPR only permits the death penalty for the ‘most serious crimes’. The Second Optional Protocol goes further and requires Australia to take all necessary measures to abolish the death penalty within its jurisdiction and to ensure that no one within its jurisdiction is subject to the death penalty.

The death penalty has been formally abolished in all jurisdictions in Australia.

It was first abolished for Commonwealth and Territory offences in 1973, by the Commonwealth Death Penalty Abolition Act. Each State has independently and separately abolished the death penalty, and there are no proposals by any State Government to reinstate the death penalty.

The purpose of the legislation is to extend the application of the current prohibition on the death penalty to State laws. This will ensure that the death penalty cannot be reintroduced anywhere in Australia into the future.

The amendments emphasise Australia’s commitment to our obligations under the Second Optional Protocol to the International Covenant on Civil and Political Rights, and ensure that Australia continues to comply with those obligations.

Such a comprehensive rejection of capital punishment will also demonstrate Australia’s commitment to the worldwide abolitionist movement, and complement Australia’s international lobbying efforts against the death penalty.

In summary, this Bill contains important measures which again demonstrate this Government’s ongoing commitment to better recognise Australia’s international human rights obligations.

I therefore commend the Bill.

Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2009 Measures) Bill 2009

This Bill will amend various Acts in the Families, Housing, Community Services and Indigenous Affairs portfolio to provide for several non-Budget measures.

The first group of amendments is to schedule three further parcels of land in the Northern Territory so they can be granted as Aboriginal Land. These three parcels of land are Alice Valley Extension (East), Loves Creek and Patta (near Tennant Creek).

The Loves Creek parcel of land is subject to a partially-heard land claim. Scheduling this land under the Aboriginal Land Rights (Northern Territory) Act 1976 follows agreement between the Central Land Council and the Northern Territory Government. The scheduling will resolve the claim and allow the land to be granted to the appropriate Aboriginal Land Trust.

Patta (near Tennant Creek) is also the subject of an agreement between the Central Land Council and the Northern Territory Government. Granting this land will form part of an agreement for settling broader native title claims.

The Alice Valley Extension (East) parcel of land will be leased by the Land Trust to the Northern Territory as an extension of the West MacDonnell National Park.

The bill makes some amendments to the income management provisions in the social security law to improve their operation in minor respects.

Firstly, the bill will allow people in the Cape York welfare reform areas who are receiving age pension or carer payment to have their payments income managed. As with other payments that are income managed for people in Cape York, the new provisions will rely on the local Family Responsibilities Commission issuing a notice and relevant conditions being met. This change has been requested by the Families Responsibilities Commission.

Secondly, amendments are made relating to the use of residual funds in an income management account when a person returns to income management. The amendments will ensure that any residual amounts being dispersed are retained in the person’s income management account at the time when they return to income management.

Thirdly, changes are being made to how residual amounts left in an income management account are dealt with when a customer dies.

Depending on how much is left in the account, these residual amounts may currently be paid to the deceased customer’s legal personal representative, or to a person carrying out certain activities in relation to the estate or affairs of the deceased person. However, if the customer has no legal personal representative, or if there is more than one person carrying out the relevant activities, it can be hard to determine who to pay the residual amounts to. These amendments will provide further options to disburse the residual amounts in these cases.

The bill makes amendments to improve the operation of the Social Security Appeals Tribunal across its social security, family assistance and child support jurisdictions.

For example, the bill makes changes to titles for Tribunal members, such as renaming the Executive Director to Principal Member. The bill removes the requirement for the Principal Member to chair panels on which he or she sits by enabling the Principal Member to determine who will be the presiding member. The bill allows the SSAT to convene a pre-hearing conference for social security and family assistance law appeals. If parties reach agreement at the pre-hearing conference, the SSAT is empowered to make a decision in accordance with the agreement.

In the first of two measures about the income support means test, an amendment will clarify that a gift that has been returned does not have to be assessed as a deprived asset under the social security disposal of assets provisions. This removes a potentially harsh outcome under the current provisions for a person who disposes of an asset in certain circumstances, has it counted as an asset on that basis, and then has it counted again as a returned asset.

Further amendments clarify that, where a customer is the beneficiary of a discretionary trust, and the trustee has a duty to maintain the customer, then the trust should be assessed as being a controlled private trust in respect of that beneficiary. The amendments also make it clear that, when the controllers of a trust are being determined, it should not be relevant that there are other future beneficiaries of the trust, when those parties are not currently receiving any benefits from the trust. These amendments secure longstanding policy in light of a recent Full Federal Court case.

The remaining amendments in the bill provide a requirement for a claimant to notify if a child who attracted baby bonus leaves the claimant’s care within 26 weeks of birth or coming into their care, and make further minor and technical amendments.

Health Insurance Amendment (Diagnostic Imaging Accreditation) Bill 2009

The Health Insurance Amendment (Diagnostic Imaging Accreditation) Bill 2009 will broaden the scope of the Diagnostic Imaging Accreditation Scheme (the Scheme).

When the Stage 1 Scheme was introduced in 2008, the accreditation arrangements only covered practices providing radiology services. The Scheme did not cover non-radiology services such as cardiac ultrasound and angiography, obstetric and gynaecological ultrasound, or nuclear medicine imaging services, which account for around 16% of the total number of Medicare funded diagnostic imaging services performed annually.

From 1 July 2010, with the commencement of the Stage 2 Scheme, the scope of the Scheme will be broadened to cover all diagnostic imaging services (radiology and non-radiology services) in the Health Insurance (Diagnostic Imaging Services Table) Regulations 2009. Any practices that are intending to render diagnostic imaging services for the purpose of Medicare benefits will need to be accredited under the Stage 2 Scheme.

Accreditation is a well recognised tool for promoting, reviewing and improving systems of healthcare and for fostering continuous quality improvement. Patients who attend an accredited diagnostic imaging practice can be confident that defined standards of care guide the delivery of those services.

The impetus for broadening the scope of the Stage 2 Scheme and providing arrangements to transition non-radiology practices into the Stage 2 Scheme is not a reflection on the quality of services as they are currently being provided, but a focus on providing a consistent standard of diagnostic imaging services regardless of where or how they are provided.

Diagnostic imaging services are provided, and are being increasingly provided, by a diverse range of practitioner groups including specialist radiologists, vascular surgeons, cardiologists, general practitioners, obstetricians and gynaecologists, nuclear medicine physicians and sports physicians. These services are provided in a range of practice settings, such as hospitals, single practitioner practices and multi-site corporate practices. They take place in a variety of clinical contexts such as in conjunction with surgical procedures or as part of routine or emergency investigations to exclude or confirm injury or disease. Given this diversity, it is important to ensure that all the elements involved in the delivery of a diagnostic imaging service are working together effectively.

Through the implementation of the Stage 2 Scheme, the Government and the community can be assured that the 19.5 million or so diagnostic imaging services that are supported by Medicare annually are being provided by organisations that are able to meet specified standards, and that the over $2.2 billion taxpayer funded investment in those services is being used effectively. Broadening the scope of the accreditation scheme to cover all diagnostic imaging services will ensure consistency and uniformity across the whole diagnostic imaging sector.

The purpose of this Bill is to amend the Health Insurance Amendment (Diagnostic Imaging Accreditation) Act 2007 to provide transitional arrangements so that practices delivering non-radiology services, or a combination of non-radiology and radiology services that are not accredited under the Scheme, will be able to enter into the next stage of the Scheme by registering for ‘deemed accreditation’ from 1 April 2010 until 30 June 2010 with an approved accreditor.

Practices in operation before 1 July 2010 providing both non-radiology services and radiology services and who have been accredited for radiology services under the Stage 1 Scheme, will not be required to register for ‘deemed accreditation’ as they will be automatically accredited until 30 June 2012.

Registering for ‘deemed accreditation’ will require approximately 1,400 practices that are currently providing non-radiology services, or a combination of non-radiology and radiology services not accredited under the Scheme, to lodge a form with an approved accreditor. This will be a relatively simple process. The proprietor or responsible person will need to complete a form nominating the site to which ‘deemed accreditation’ will apply