George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

The International Arbitration Amendment Bill 2010 is intended to give additional force to the recognition of foreign arbitration agreements and awards and accord primacy to the UN Model Law on International Commercial Arbitration—known by the somewhat awkward acronym of UNCITRAL—and to make miscellaneous amendments to the principal act. Arbitration is the primary means by which parties to transnational commercial agreements resolve disputes without having to have resort to national courts. They have the advantage of avoiding complex choice of law and enforcement issues that can arise in national courts. They also typically provide for a process that is specifically formulated to the parties’ requirements. It is therefore more likely to preserve the relationship between them.

The principal act, the International Arbitration Act 1974, implements Australia’s commitments under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 and the Washington Convention 1965 and gives the force of law to the UNCITRAL model law. However, problems have gradually arisen in the interpretation and application of the act over the years, particularly as to the application of competing state legislation and the means by which arbitral laws can be challenged. The amendments effect an agreement with the states for a uniform arbitration legislative scheme based on the UNCITRAL model law, provide for limitations on court intervention and give clearer guidance on the interpretation of the model law. Miscellaneous amendments will supplement the operation of the model law as it relates to interim measures, disclosure of information, interest and costs.

This is the second amendment that the government has made to the international arbitration regime, the first being the Federal Justice System Amendment (Efficiency Measures) (No. 1) Act 2008. Both pieces of legislation seek to increase the attractiveness of Australia as a venue for international commercial arbitration. This is a high-value service in which Australia should enjoy a particular competitive advantage. Any initiative that seeks to enhance that advantage should be welcomed. The opposition therefore is glad to support the bill.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I commend the International Arbitration Amendment Bill 2010 to the Senate.

Question agreed to.

Bill read a second time.