Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) 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 speech es read as follows—

GRAPE AND WINE LEGISLATION AMENDMENT (AUSTRALIAN GRAPE AND WINE AUTHORITY) BILL 2013

The Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Bill 2013 creates the Australian Grape and Wine Authority. The new Authority will commence its operations on 1 July 2014. It will take the roles and functions of the Grape and Wine Research and Development Corporation and the Wine Australia Corporation.

This is a reform that has been raised and discussed a number of times over the last twenty years, and it is with great pleasure that I introduce this Bill to make the reform a reality.

The government agreed to merge the two wine statutory corporations following an industry proposal from the Winemakers' Federation of Australia and Wine Grape Growers Australia.

The proposed merger is widely supported by industry. A single wine industry statutory authority will support the industry by providing links between the investment initiatives and functions of the Grape and Wine Research and Development Corporation and the Wine Australia Corporation. The merger will provide further benefits through improving administrative efficiency and service delivery to the industry.

The merger aligns with the Australian Government's 2012 Rural Research and Development Policy Statement. In particular, the statement noted that combining research and development and marketing functions in one organisation can lead to administrative savings as well as synergies.

On 19 June 2013 the government introduced the Rural Research and Development Legislation Amendment Bill 2013 to implement the Policy Statement. Once this Bill has been considered by parliament the government will amend the Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Bill to ensure consistency between the two pieces of legislation.

The merger of the two statutory authorities is in also accordance with a broader policy goal to reduce the number of government statutory corporations.

This Bill proposes amendments to the Wine Australia Corporation Act 1980 to establish the new authority and renames the Act as the Australian Grape and Wine Authority Act 2013.

Although the Bill amends the existing Wine Australia Act, these amendments are significant and the merger is not a takeover of the Grape and Wine Research and Development Corporation by Wine Australia. This is a strategic merger of the two statutory corporations.

This Bill is divided into two schedules.

Schedule 1 amends the Wine Australia Act to create the Authority.

Schedule 2 covers matters arising from the transition from two statutory corporations to the Authority. It covers matters such as the transfer of staff to the Authority.

Schedule 1 is divided into two parts.

Part 1 of Schedule 1 commences on the day after Royal Assent. This part amends the Wine Australia Corporation Act 1980 to establish a selection committee to select and nominate to the Minister for Agriculture, Fisheries and Forestry possible members of the board of the Authority. The Bill gives the Minister for Agriculture, Fisheries and Forestry an alternative option of appointing a first board of the Authority for a 12 month period without reference to the selection committee.

Part 2 of Schedule 1 commences on 1 July 2014. This part provides amendments to the Freedom of Information Act 1982 and the Wine Australia Corporation Act 1980. This Part establishes the Authority and provides the governance framework for its operation.

Schedule 1 provides the research and development functions, including provisions for the Commonwealth to match research and development levy funding dollar-for-dollar.

The Authority will be required to spend research and development levy money and government matching funds on research and development activity. Industry has highlighted the importance of this issue for the new Authority. It is also important to the government to ensure that Australian government money appropriated for research and development is used for this purpose.

The Bill does not include any changes to the structure or the amounts of the levies that currently fund both statutory corporations, or to the existing regulatory, marketing and compliance roles of the Wine Australia Corporation.

The Bill transfers definitions of research and development from the Primary Industries and Energy Research and Development Act 1981.

It establishes an Authority with a skills-based board of five to seven directors selected and nominated by a statutory selection committee and appointed by the Minister.

The board is led by a Chair appointed by the Minister following consultation with industry.

The Authority is required to prepare a five-year Corporate Plan to outline the Authority's strategies, policies and priorities to achieve the objectives.

The Authority is also required to prepare an annual operation plan but this plan unlike those of the two statutory corporations, is not required to have the Minister approval.

Schedule 2 provides for the transition of the Grape and Wine Research and Development Corporation and Wine Australia to the Authority, including that the operations, assets, liabilities and staffing conditions are transferred to the Authority.

Of particular note is that Schedule 2 provides that the Minister may engage consultants to assist with preparations for establishing the Authority, and preparations to appoint a chief executive for the Authority.

The Bill allows the Minister for Agriculture, Fisheries and Forestry to appoint the first board after Royal Assent. The board will commence on 1 July 2014. Between the date of appointment and 1 July 2014, the Minister can engage the future board directors as consultants to prepare for the Authority's commencement and to assist it in becoming fully operational on 1 July 2014.

Before 1 July 2014 the future directors, in their role as consultants, could not make decisions that would bind the Authority. However, it can be expected that any recommendations they make would be ratified by the board at its first meeting.

The costs of the consultants will be met by the Commonwealth through the Department of Agriculture, Fisheries and Forestry. Once the Authority commences any and all Commonwealth funding provided for the purpose for engaging consultants will be refunded by the Authority.

As the consultants are the future board directors acting in the interests of the Authority, it is reasonable for the Authority to reimburse the Commonwealth for the costs of the consultants.

The Bill ensures that all employees of the Grape and Wine Research and Development Corporation and Wine Australia are transferred to the Australian Grape and Wine Authority along with all employee entitlements.

The Bill also provides for a number of amendments to be made to outdated sections of the Wine Australia Corporation Act 1980 and also introduces modernised language to bring it up date with current terms.

The wine industry has a unique regulatory structure with the Wine Australia Corporation enforcing the Label Integrity Program, licensing exporters and maintaining Australia's wine geographical indications system. These important roles are not affected by the merger.

The Australian Grape and Wine Authority will therefore have a strong focus on controlling exports and developing domestic and international markets for Australian grape products, along with investigating, coordinating and funding grape and wine research and development. The Authority will be responsible report on these to the Parliament or Minister and representative organisations.

The Government has introduced amendments to the Commonwealth Authorities and Companies Act 1997 and the Financial Management and Accountability Act 1997.

If these amendments are passed, this Bill will be amended to ensure consistency with the new legislation before being reintroduced following the election.

The merger of the wine industry statutory corporations is being undertaken at the request of industry and continues to have the support of industry. This is a reform that will help the industry to function better, it will improve linkages between marketing and research and development and achieves these benefits at no additional cost to winemakers and grape growers.

Two companion bills are being introduced alongside this Bill proposing minor amendments to the Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 to enable levies collected to be paid to the new Authority.

I commend the Bill to the Senate.

PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT (AUSTRALIAN GRAPE AND WINE AUTHORITY) BILL 2013

The Primary Industries (Customs) Charges Amendment (Australian Grape and Wine Authority) Bill 2013 is a companion Bill to the Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Bill 2013.

The companion Bill provides consequential amendments to replace references to the Wine Australia Corporation in the Primary Industries (Customs) Charges Act 1999 with 'Australian Grape and Wine Authority' to reflect the Australian Grape and Wine Authority Act 2013 that will govern the new authority.

The change will allow for levies collected to be paid to the Australian Grape and Wine Authority.

The Bill also repeals clauses that provided for Wine Australia, following an annual general meeting, to make recommendations to the Minister about the levy rate. The Australian Government has a process for consulting with industry about levy rates that provides for consultation, a vote of industry and an objections process. The Bill provides that the process for changing wine industry levies is consistent with other industries.

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT (AUSTRALIAN GRAPE AND WINE AUTHORITY) BILL 2013

The Primary Industries (Excise) Levies Amendment (Australian Grape and Wine Authority) Bill 2013 is a companion Bill to the Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Bill 2013.

The companion Bill provides consequential amendments to replace references to the Wine Australia Corporation in the Primary Industries (Excise) Levies Act 1999 with 'Australian Grape and Wine Authority' to reflect the Australian Grape and Wine Authority Act 2013 that will govern the new authority.

The change will allow for levies collected to be paid to the Australian Grape and Wine Authority.

The Bill also repeals clauses that provided for Wine Australia, following an annual general meeting, to make recommendations to the Minister about the levy rate. The Australian Government has a process for consulting with industry about levy rates that provides for consultation, a vote of industry and an objections process. The Bill provides that the process for changing wine industry levies is consistent with other industries.

RURAL RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT BILL 2013

Since Federation, industry and government have worked in partnership to support the productivity of rural industries and improve the reputation of Australian exports abroad. Government support developed in an ad hoc manner until, in 1989, John Kerin and the Hawke Government had the foresight to establish the research and development corporation model. The research and development corporations, or 'RDCs', were established under the Primary Industries and Energy Research and Development Act 1989 (the Act). For 24 years, our investment in the RDCs has boosted the productivity and sustainability of rural industries. This bill will make improvements to the existing RDC model and ensure it remains responsive and adapted to our needs.

There are 15 RDCs providing services to a diverse range of rural industries. RDCs provide the mechanism for industry to invest collectively in research, development and extension. Government assists by establishing and collecting a levy if an industry requests this. After recovering costs, the government returns levy funds to the relevant RDC. To encourage this investment, the government matches the RDC's eligible research and development (R&D) spending up to legislated limits. In the next financial year almost $250 million will be invested by the government in rural innovation in this way. Our collaborative model is unique, viewed with envy overseas and benefits all Australians by encouraging profitable and sustainable rural industries.

There are many challenges facing our rural industries. These include climate change, the vagaries of the global economy and increasing populations to feed. There are also opportunities such as increasing exports of Australian agricultural products, particularly to Asia. To ensure our own food security, economic stability and the health of our agricultural resources, the RDC model needs to be updated in line with our changing needs.

Our rural research and development model has proven results, with Australian rural productivity increasing at more than double the rate of other Australian industries over recent decades. The high level of industry engagement and the strong support the RDC model enjoys from all sectors make it unique among research funding models around the world. Research, development and extension have a vital role in preparing Australian rural industries for the future challenges and opportunities we face together.

In 2011, the Productivity Commission and the Rural Research and Development Council reviewed the rural research, development and extension system in Australia. Consultation meetings around Australia were held with all interested stakeholders. The ideas and issues raised by stakeholders fed into the government's response: the Rural Research and Development Policy Statement. Ultimately both the Productivity Commission and the Council acknowledged the strong foundations of the existing system. Both recommended improvements to the system.

This bill and its companion bills, the Primary Industries (Excise) Levies Amendment Bill 2013 and the Primary Industries (Customs) Charges Amendment Bill 2013, implement the commitments made in the policy statement that require legislative change. They will commence concurrently.

Marketing activities

Of the 15 RDCs, 9 are industry-owned companies and can already carry out marketing for the benefit of their industry. This bill will give the statutory RDCs the same ability to undertake marketing, if the relevant industry proposes a marketing levy and the government agrees to collect it. Government matching funding will not be used for marketing, only for research, development and extension services.

There is great enthusiasm for allowing statutory RDCs to undertake marketing. The prawn industry has already started down the path of establishing a marketing levy. We have well established processes to guide industries through the consensus-building process for a levy proposal.

Permitting statutory RDCs to undertake collective marketing will allow industry to educate consumers about the safety and nutritional value of Australian products, the origin of our food and fibre, and the ecological sustainability of our resources.

Matching of voluntary contributions

Primary industries understand that our R&D model is unique and generates benefits far exceeding its cost. This model creates a healthy return on a modest investment. As a result, some businesses in the rural sector are willing, and are able, to make additional voluntary payments to conduct R&D.

The bill will encourage voluntary contributions by making arrangements for the contributions to be matched by government. Currently some RDCs can receive this matching funding and the bill will extend access to matching funding for voluntary contributions to all RDCs. Overall matching funding will continue to be limited by a cap based on each industry's gross value of production. However, RDCs may be able to maximise the R&D they fund by strategically using voluntary contributions to top up R&D spending. Voluntary contributions also allow supply chain partners to work with an industry on issues of joint interest.

Funding agreements

Over the last 10 years, funding agreements between the government and industry-owned RDCs have been used to manage governance and performance matters. This bill extends funding agreements to the government relationship with statutory RDCs. Funding agreements will create a flexible mechanism, which can be more readily modified to reflect the changing needs of the parties.

Funding agreements will be used to promote transparency and accountability. The agreements will be tabled in Parliament and contain requirements relating to corporate governance and performance. These agreements will also allow government to provide guidance to RDCs regarding the research priorities and needs of the broader Australian community. The bill allows until 1 July 2014 for the statutory RDCs and government to enter into funding agreements.

Appointment process for statutory RDC board directors

Current procedures for appointing directors to statutory RDC boards have proved expensive and time-consuming, diverting scarce resources away from statutory RDCs' core functions – providing R&D for their industries. Amendments in the bill will streamline the selection process. Selection committees will be limited to five members and the committee will be established for up to three years to cut the expense of establishing a committee for each selection process. A 'reserve list' will be created that can be used to fill unplanned board vacancies for 12 months. If a candidate with the necessary skills is not available from the list, the process must begin again.

The presiding member must have regard to equity and diversity when recommending members to the selection committee of a statutory RDC. Similarly, the selection committee must do the same when recommending candidates for the board of a statutory RDC. Diversity of skills and background can broaden and enhance the board's skill base to ensure an effective statutory RDC board.

Fisheries research and development

The Fisheries RDC receives most of its funding through the Commonwealth, state and territory governments. The farmed prawn industry is the only individual fishery with a statutory R&D levy.

The bill creates a new class of fisheries R&D levy that can be matched by the government without having to form part of jurisdiction's contribution. The amendments will permit new, individual fishery-sector levies to be collected and matching public funding provided up to a cap specific to that fisheries sector.

Each separately levied fishery will be subject to existing eligibility rules for matching funding. In effect, the fisheries sectors which so choose, will be able to invest in specific R&D and marketing by proposing a levy for that purpose.

Minor amendments

To reduce unnecessary red tape, this bill provides that statutory RDCs will no longer have to seek Ministerial approval for their annual operating plans. This has become an avoidable burden for both RDCs and the government. Ministerial oversight will focus on strategy rather than day-to-day management. Annual operating plans will be required, but ministerial approval will not.

Minor amendments will remove redundant parts of the legislation. For example, energy is no longer part of the agriculture, fisheries and forestry portfolio, so all references to 'energy' will be removed from the Act. References in the Act to R&D Councils and Funds are obsolete and will be removed, making the Act easier to understand and administer.

Other minor amendments encourage consistent treatment of RDCs, including standardising requirements to comply with Ministerial directions and standardising delegation powers. 'Scientific and technical capacity building' will be added to the objects of the Act.

Conclusion

The changes in this bill will make RDCs more flexible and responsive to deal with the new realities they face. The governance processes for RDCs will be streamlined, promoting certainty and consistency for levy-payers and other stakeholders. We will retain a strong focus on transparency, accountability and effectiveness.

PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT BILL 2013

This bill is part of a package of bills, referred to in the previous second reading speech, to commence concurrently with the Rural Research and Development Legislation Amendment Bill 2013 and the Primary Industries (Excise) Levies Amendment Bill 2013.

This bill removes maximum research, development and marketing charge rates from the Primary Industries (Customs) Charges Act 1999 (the Act). The bill provides that charge rates set by regulations must be the subject of a recommendation from relevant industry bodies, who must consult with charge payers. The bill provides that the regulations will not be able to set a charge rate higher than the highest rate recommended by industry. This will safeguard against arbitrary charge increases.

PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT BILL 2013

This bill is part of a package of bills streamlining rural research and development legislation to ensure it remains responsive and adapted to industry and national needs. It will commence concurrently with the other bills in that package, the Rural Research and Development Legislation Amendment Bill 2013 and the Primary Industries (Customs) Charges Amendment Bill 2013.

The Australian agriculture, fisheries and forestry industries have asked government to impose levies to collaboratively fund essential industry services. These include research and development (R&D), extension and in some cases marketing, through the 15 research and development corporations (RDCs).

This bill removes maximum research, development and marketing levy rates from the Primary Industries (Excise) Levies Act 1999 (the Act). The bill provides that levy rates set by regulations must be the subject of a recommendation from relevant industry bodies, who must consult with levy payers. The bill provides that the regulations will not be able to set a levy rate higher than the highest rate recommended by industry. This will safeguard against arbitrary levy increases.

Proposals for levy increases can occur in response to market changes or seasonal conditions. If an industry wishes to increase its levy rate above the legislated maximum, it is currently a time consuming and costly process. This will often result in levy increases taking effect much later than is desirable, given the circumstances to which they respond. Eliminating the need to amend the Act will streamline this process, reducing the time between a rate increase proposal and the change coming into effect.

The removal of maximum levy rates was recommended by the Productivity Commission following a review of the RDC model. Industry stakeholders and the RDCs were consulted on the changes during and after the review. There is broad support for the removal of maximum rates.

New consultation requirements in the bill provide greater detail and consistency regarding who must be consulted when setting rates, and how to consult levy-payers if there is no declared representative body.

Conclusion

This bill encourages primary industries to control their investment in R&D, extension and marketing. The levy setting process will be easier and more responsive to industry needs. Robust consultation and consensus requirements ensure that levy setting remains industry's responsibility.

HOMELESSNESS BILL 2013

This Bill is aimed at increasing recognition and awareness of people who are homeless or at risk of homelessness.

It is not acceptable in Australia, a relatively wealthy country, that so many Australians are homeless.

A home is the foundation on which a person builds their life. Without stable homes, people struggle to live healthily, stay in training or education, and find and keep jobs.

This Labor Government has made homelessness a national priority. Our White Paper, The Road Home, outlines how we intend to reduce homelessness – through a program that will require sustained effort by governments, business and the broader community.

We have set clear targets – to halve the rate of homelessness by 2020, and to provide supported accommodation for all rough sleepers who seek it.

These targets will be achieved through a significant boost in spending, new agreements with the states and territories, and an overhaul of the existing legislative framework.

Already, we have seen progress, including through early intervention to prevent homelessness.

The community-based early intervention service, Reconnect, has helped more than 67,000 young people to get back with their families and into school or training.

The Household Organisation Management Expenses Advice Program has given advice and assistance to many families – struggling with rent and mortgage payments during times of personal or financial crisis – helping them to stay off the streets.

We have seen our Personal Helpers and Mentors Program prevent people with mental illness from becoming homeless – by giving them support to build social networks, gain employment, and learn to manage their illness and live independently.

We have moved towards integrating mainstream and specialist homelessness services by improving the responses from 'first-to-know' agencies and providers – such as Headspace, working with young people with mental health issues, and Job Services Australia, providing tailored assistance to homeless job seekers.

These are just some of the ongoing practical initiatives that will help break the cycle of homelessness for vulnerable people.

The homelessness legislative framework was the subject of a comprehensive inquiry during 2009 by the House of Representatives Standing Committee on Family, Community, Housing and Youth. The committee's report, Housing the Homeless, has been vital in shaping this Bill introduced today.

With the exception of a legislative right to housing, which is outside current Government policy and, in practice, would be significantly dependent on the actions of the states and territories (which are responsible for housing), the Committee's recommendations have been incorporated into this Bill to the best extent possible.

This Bill complements a broader reform process to reduce homelessness, incorporating substantial co-investment with states and territories to expand and implement a range of practical measures to support, and improve outcomes for, Australians facing homelessness. The Bill underpins the need to sustain this effort into the future.

The Bill draws national attention to the experience of homelessness, and voices the aspiration that all Australians have access to appropriate, affordable, safe and sustainable housing. This is in line with the objective expressed within the National Affordable Housing Agreement between the Commonwealth, states and territories, and local government.

The Bill acknowledges the direct relationship between addressing homelessness and social inclusion. It sets out a range of service delivery principles to which the Commonwealth is committed, and the strategies we see as necessary to reduce homelessness.

The Bill also confirms the Commonwealth's commitment to cooperation and consultation in reducing homelessness, and promotes the human rights of people facing homelessness.

This legislation that is introduced today has been strengthened through a two month public exposure period in mid-2012 – and we express our gratitude to those many people who lodged written submissions on the exposure draft of the Bill.

All suggestions made have been carefully considered, and the Bill has been refined as a result. In particular, the definition of homelessness has been improved in light of comments from stakeholders.

We have now clarified that people staying in crisis accommodation (such as a refuge or shelter) cannot be ruled out of the definition through any concept of 'choice' – we know all too well that people do not choose homelessness by living in crisis accommodation.

The definition of homelessness now also recognises that safety must be recognised as a vital element in a person's living circumstances. Some people may be homeless because they have no safe place to live, even if they have a usual address. for example, a person who is living temporarily with friends or relatives and cannot return home safely because of domestic violence will now be recognised by the legislation as experiencing homelessness. this preserves an element of the previous legislative definition particularly valued by stakeholders.

Stakeholder feedback has also been reflected in the bill in important matters such as the range of factors recognised as contributing to homelessness, and in the commonwealth's aspiration for all Australians to have access to appropriate, affordable, safe and sustainable housing.

This new legislation will replace the Supported Accommodation Assistance Act 1994, which set out important principles and guided the Commonwealth's response to homelessness in Australia for many years.

That Act recognised people who are homeless as one of the most powerless and marginalised groups in society. It made clear the Parliament's view that support should be provided in a way that respects people's dignity as individuals, enhances their self-esteem, is sensitive to their social and economic circumstances, and respects their cultural backgrounds and beliefs.

The new legislation preserves the best features of the 1994 Act. The Homelessness Bill 2013 gives us the opportunity to retain in law the important statements about homelessness, the partnerships, effort and strategies that are needed to tackle it, and the treatment and support that vulnerable Australians deserve.

The 1994 Act was primarily a vehicle for providing funding to states and territories to administer the Supported Accommodation Assistance Program. However, new arrangements were introduced

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Mr President, so that the rest of us might know, can the Leader of the Government in the Senate tell us when the next sitting will be?

John Hogg (President) Share this | Link to this | Hansard source

That is not a point of order.

Ordered that the following bills be listed on the Notice Paper as three separate orders of the day and the remaining bill be listed as a separate order of the day:

(1) Grape and Wine Legislation Amendment (Australian Grape and Wine Authority) Bill 2013, Primary Industries (Customs) Charges Amendment (Australian Grape and Wine Authority) Bill 2013 and Primary Industries (Excise) Levies Amendment (Australian Grape and Wine Authority) Bill 2013

(2) Rural Research and Development Legislation Amendment Bill 2013, Primary Industries (Customs) Charges Amendment Bill 2013 and Primary Industries (Excise) Levies Amendment Bill 2013

(3) Homelessness Bill 2013 and Homelessness (Consequential Amendments) Bill 2013