Scott Ryan (Victoria, Liberal Party, Parliamentary Secretary to the Minister for Education and Training) 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—

AIRPORTS AMENDMENT BILL 2015

On 15 April 2014 the Australian Government announced that the site for Western Sydney's new airport will be Badgerys Creek. This delivers on a Government promise when in Opposition to make a decision on Sydney's future airport needs during its first term in office.

It demonstrates the Government's commitment to the Western Sydney region. A new airport will be a major boost for the local economy and create thousands of jobs during construction and a pipeline of jobs once an airport becomes operational. These benefits are being seen already with the start of construction of road upgrades to support the proposed new airport.

The Government continues to deliver on this commitment with the progression of formal consultations with Sydney Airport Group on developing the proposed airport and the commencement of a new environmental impact assessment for the Badgerys Creek site.

A new airport for Western Sydney will create infrastructure for the 21st century and generate jobs and economic growth in Western Sydney.

To ensure these outcomes can be realised as soon as possible the Airports Amendment Bill 2015 amends the Airports Act 1996 to provide for the creation of an airport plan for the proposed Western Sydney Airport. The Airports Act provides the framework to manage and operate Australia's federally leased airports.

The airport plan will authorise the initial development, and specify the Australian Government's requirements for the airport.

It will do this by taking processes ordinarily relating to master plans and major development plans currently in the Airports Act and combining them into a single streamlined process applicable to a greenfield airport development.

In doing so, the Bill recognises the importance of the environmental assessment process currently underway for the airport, and confers an approval function on the Environment Minister in relation to environmental matters.

The usual process in Major Development Plans is for a referral to be made to the Environment Minister for the project to be assessed under the Environment Protection and Biodiversity Conservation Act 1999 if required, and for the Environment Minister to provide advice to the Minister for Infrastructure and Regional Development, who is the final decision maker on the plan.

Badgerys Creek is a greenfield development, and preparation of an Environmental Impact Statement is underway, and will be finalised under the EPBC Act. This Bill will require the Minister for Infrastructure and Regional Development to incorporate in the plan any environmental conditions imposed by the Minister for the Environment following completion of the EIS.

The community will have the opportunity to comment on both the environmental impact statement and airport plan as consultation on each will occur at the same time.

Once the airport plan is in place, no further planning or development approvals will be required prior to initial construction commencing. It will enable detailed design and construction planning to commence as soon as possible after contract signature.

This is a practical, common sense measure that recognises the unique circumstances of a greenfield airport development.

The Bill also includes measures that would help the Government pivot to ready alternatives if Sydney Airport Group turns down an offer to develop and operate the proposed airport.

Under the 2002 sale agreement for Sydney (Kingsford Smith) Airport, the owners of Sydney Airport have a right of first refusal to develop and operate a second major airport within 100 kilometres of Sydney's centre.

Once the consultation period is complete, the Government will come to a decision on the need for and nature of a second Sydney airport in Western Sydney. This is a contractual step required before the Government can make an offer.

This offer must be made to Sydney Airport Group first. If it declines to accept, the offer can be made to third parties, or the Commonwealth can undertake the project itself.

However, the Airports Act currently effectively prevents the Commonwealth from taking either of these actions in the event Sydney Airport Group declines to accept the offer.

Section 18 of the Airports Act requires that the airport-lessee companies for Sydney (Kingsford Smith) Airport, and any airport site declared to be Sydney West Airport, as it is referred to in the Airports Act, must be subsidiaries of the same company. This is a legacy provision from the Airports Act as originally passed in 1996.

While the Government is contractually obliged to engage commercially with the Sydney Airport Group, and is not opposed to a common ownership situation, it needs to be legislatively possible for the two airports to be under different ownership in the event Sydney Airport Group turns down an offer to develop and operate the airport.

The Airports Amendment Bill removes the requirement of common ownership, providing the Commonwealth with the commercial flexibility to deal with third parties or to develop the airport itself if required.

The Bill also removes the airport cross-ownership restrictions currently placed on Sydney West Airport. These restrictions prevent cross-ownership of more than 15% between Melbourne, Brisbane or Perth airports and a new airport at Badgerys Creek. The amendment will help maximise the success of any market offering in the event Sydney Airport Group choose not to exercise an option to develop and operate the airport.

This amendment is about giving the Government the commercial flexibility it requires to get the best outcome for the people of Western Sydney and the Australian economy more broadly.

Separately, the Bill contains some mechanical provisions to facilitate declaration of the airport site and other prepatory work.

The Airports Amendment Bill 2015 will help ensure the economic and social benefits of an airport for Western Sydney can be realised as soon as possible.

Customs Amendment (Australian Trusted Trader Programme) Bill 2015

SECOND READING SPEECH

The Customs Amendment (Australian Trusted Trader Programme) Bill 2015 will amend the Customs Act 1901 to establish the Australian Trusted Trader Programme, set up the framework for the programme and enable Trusted Traders to benefit from streamlined customs procedures.

The programme has been co-designed with industry stakeholders, partner agencies and international counterparts both at multilateral and bilateral levels.

The programme provides an opportunity to reduce the regulation of our international traders and enhance supply chain security. Consistent with the World Customs Organization SAFE Framework of Standards to Secure and Facilitate Global Trade, the Australian Trusted Trader Programme will introduce a differentiated trust-based regulatory framework at the border for those entities that meet or exceed international supply chain security and trade compliance standards.

Entities meeting these standards will be assessed as low-risk and benefit from reduced regulatory burden and streamlined customs procedures. This will alleviate a significant trade burden and enhance the competitiveness of Australian international businesses.

This approach, which is commonly known as the Authorized Economic Operator model, has been adopted by all of Australia's major trading partners over the last ten years. It is also consistent with the Government's deregulation agenda and contributes to the Economic Action Strategy and the Prime Minister's Industry Innovation and Competitiveness Agenda.

The approach is also a key component of the World Trade Organization's Agreement on Trade Facilitation and an integral part of the Government's commitment to foster legitimate trade as outlined in the Government's G20 Australia 2014 - Comprehensive Growth Strategy.

The programme is a trade facilitation initiative based on internationally recognised supply chain security and trade compliance principles that contribute to a holistic compliance framework.

It is an important element of the compliance continuum that will provide a better understanding of the entities moving goods across our borders. This strategy will work to 'shrink the haystack' by removing accredited entities from traditional transaction based border risk assessment. This reform is important for managing the increasing volume of trade growth and ensuring that resources can be diverted away from highly compliant traders to focus on risk and non-compliance.

The pilot phase of the programme is intended to commence on 1 July 2015 for a period of 12 months. The pilot phase will include a limited number of participants to test and refine processes and the design. The amendments to the customs act included in this bill will support the operation of the pilot phase.

Firstly, the bill will amend the customs act to enable the Comptroller-General of Customs to establish the programme in accordance with the framework set out in the bill. Participation in the programme is voluntary and will allow entities such as importers, exporters, customs brokers, freight forwarders and transport companies to nominate themselves to participate in the programme.

Secondly, the bill will amend the customs act to set up the framework for the programme. There are three key powers under the framework.

The bill amends the customs act to provide for the external merits review of decisions made by the Comptroller-General of Customs in relation to these three powers. This will be in addition to an administrative internal review mechanism.

The bill will also amend the customs act to allow the Comptroller-General of Customs to maintain a register, known as the Register of Trusted Trader Agreements. The Register will demonstrate to the public that an entity has an agreement with the Comptroller-General of Customs, and has demonstrated a satisfactory level of supply chain security and trade compliance standards in their international supply chain activities. This information may be necessary for other entities in the international supply chain to make an informed decision when they are choosing business partners and want to link with other trusted traders to ensure an end to end secure international supply chain.

Finally, the bill will amend the customs act to enable the Comptroller-General of Customs, by legislative instrument, to make rules in relation to the operation of the programme. Consistent with the co-design approach, consultation on the rules will be undertaken before the rules are made.

In summary, the reform delivered through this bill will support the government's priority of ensuring Australia's ongoing success as an open economy. This bill will enable the Australian Border Force and the Department of Immigration and Border Protection to create stronger borders by 'shrinking the haystack'.

The commencement of the programme will enhance Australia's capacity at the border to manage the exponential growth in trade volume by diverting resources away from highly compliant traders to focus on risk and non-compliance.

Debate adjourned.

Ordered that the bills be listed on the Notice Paper as separate orders of the day.