Simon Birmingham (SA, Liberal Party, Parliamentary Secretary to the Minister for the Environment) 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—

ASSET RECYCLING FUND BILL 2014

The Asset Recycling Fund Bill 2014 and consequential amendments establishes a new fund as a vehicle for providing financial assistance and incentives to States and Territories to invest in infrastructure.

The Asset Recycling Fund will support the Asset Recycling Initiative. It will assist the States and Territories to sell existing assets and allow the sale proceeds to be reinvested into new infrastructure. The Fund will also facilitate the Government’s investment in nationally significant infrastructure projects.

The Asset Recycling Fund is part of the Government’s infrastructure package announced in the 2014-15 Budget to support economic growth.

Under the Bill, the Asset Recycling Fund will receive an initial contribution of $5.9 billion at commencement, comprising of:

Further credits will be made to the Asset Recycling Fund in the future, including the proceeds from the sale of Medibank Private.

The capital and earnings of the Fund will be available to fund new infrastructure priorities.

Payments from the Fund will be made to the States and Territories for investment in infrastructure under National Partnership Agreements. The Fund will also accommodate other infrastructure payments, to be administered by the Department of Infrastructure and Regional Development, including $350 million for the Roads to Recovery Programme.

The Asset Recycling Fund will be invested and managed by the Future Fund Board of Guardians, which has a proven track record of managing investment portfolios on behalf of the Government, and maximising returns over the long term.

The Bill requires the Finance Minister and Treasurer to issue directions to the Future Fund Board to articulate the Government’s expectations for how the Fund will be managed and invested by the Board.

The Asset Recycling Fund will support the substantial infrastructure package announced by the Government in the 2014-15 Budget. This package is part of the Government’s investment in building Australia’s infrastructure, improving productivity and building a stronger, more prosperous economy.

ASSET RECYCLING FUND (CONSEQUENTIAL AMENDMENTS) BILL 2014

The Asset Recycling Fund (Consequential Amendments) Bill 2014 facilitates the establishment of the Asset Recycling Fund through amendments to the:

Debate adjourned.