Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I present two government responses to the Senate Foreign Affairs, Defence and Trade Legislation Committee on its inquiry into the implementation of the Defence Trade Controls Act 2012 (progress reports nos 2 and 3) and I seek leave to incorporate the documents in Hansard.

Leave granted.

The documents read as follows—

Senate Standing Committee on Foreign Affairs, Defence and Trade

Legislation Committee

Progress Report No.2 into the Implementation of the Defence Trade Controls Act 2012

Government Response

Recommendation 1

The committee recommends that Defence report to the committee on the process it will use for consulting stakeholders on any proposed legislative amendments and changes to the regulations for the Defence Trade Controls Act 2012 before the committee's next six-monthly review report. The committee expects the report will help reassure stakeholders that the consultative process embodied by the Steering Group will not fail at the conclusion of the implementation period.

Government Response

Agree

Since December 2012, Defence has worked intensively with industry, research and government stakeholders through the Strengthened Export Controls Steering Group on implementation of the Defence Trade Controls Act 2012 ('the Act'), to balance the interests of legitimate users of sensitive goods and the risks that these goods may be diverted for illicit uses.

Throughout the Steering Group process, Defence consulted stakeholders on proposed changes using a transparent, iterative approach. From March to September 2013, Defence worked with the Steering Group ' s pilot program and other stakeholders to identify the issues with the Act as written. From September 2013 to June 2014, Defence worked with the Steering Group's pilot program and other stakeholders to test alternative approaches to address these issues. This testing has resulted in proposed amendments to the Act, captured in the draft Defence Trade Controls Amendment Bill 2015 (the Bill).

Defence will continue to engage with stakeholders throughout implementation of the new export controls. Defence is working with stakeholders through the Steering Group process to develop detailed guidance, training and tools to help stakeholders understand their obligations and implement appropriate internal compliance arrangements before the offence provisions of the Act come into force.

Regular legislative review will provide a mechanism for stakeholders to provide feedback on the operation of the Act and suggest ways in which the operation and administration of the Act can continue to evolve and be refined over time.

Recommendation 2

Further to Recommendation 1 of the committee's first progress report, the committee is keen to ensure that the intent of the steering group guides any changes in the day-to-day processes of DECO as this will assist transition to the provisions of the Act. The committee therefore recommends that DECO examine the processing of applications and licences in relation to measures being taken to implement the findings of the pilot program and provide a report to the committee prior to the committee's next six-monthly report. The committee is particularly interested in how DECO will implement the steering group findings as regards industry applications.

Government Response

Agree

Since October 2013, DECO has drawn on the expertise of export control managers from Australian industry on the practical implementation of the Act, and the Steering Group has formalised this arrangement as an Industry Experts Sub-Group. This group is particularly well placed to work with DECO on detailed practical implementation issues that are also relevant to DECO's current operations.

Many of the initiatives developed through the Steering Group process are being applied across DECO's business and will benefit all applicants, including industry:

Customs (Prohibited Exports) Regulations 1958

The permanent stakeholder consultation arrangements described in the response to Recommendation 1 above will provide a formal avenue for industry and research sector feedback on DECO's operations. This formal process will build on DECO's close contact with regular exporters and ensure that stakeholder feedback informs continuing improvements to DECO's operations.

Senate Standing Committee on Foreign Affairs, Defence and Trade

Legislation Committee

Progress Report No.3 into the Implementation of the Defence Trade Controls Act 2012

Government Response

Recommendation 1

The committee recommends that the De fence Trade Controls Amendment Bill 2015 be passed.

Government Response

Agree

The Defence Trade Controls Bill 2015 was passed by the Parliament on 19 March 2015.

Recommendation 2

The committee recommends that the Strengthened Export Controls Steering Group be retained, for at least the duration of the 12-month transition period set out in the amendment bill. The committee recommends that during this period the steering group develop recommendations to government in regard to the most appropriate mechanisms for ongoing consultation between stakeholders, and for the periodic review of the legislation.

Government Response

Agree

The Government has agreed to retain the Strengthened Export Controls Steering Group for at least the duration of the 12-month transition period set out in the amendment bill. During this period the steering group will oversee the development of appropriate mechanisms for stakeholder consultation, to support implementation and periodic reviews of the legislation.

Recommendation 3

The committee recommends that it continue to monitor the implementation of the Defence Trade Controls Act 2012, as amended, during the further 12-month transition period set out in the amendment bill. The committee should report to the Senate on an interim basis if required, and after the conclusion of the 12-month period, on the further progress of the implementation of the Act and related issues.

Government Response

Agree

The Government supports the proposed role of the Committee to continue to monitor the implementation of the Defence Trade Controls Act 2012, as amended, during the further 12 month transition period set out in the amendment. The Government further supports the Committee reporting to the Senate on an interim basis if required, and after the 12 month period, on the implementation of the Act and related issues.