Jonathon Duniam (Tasmania, Liberal Party, Assistant Minister for Forestry and Fisheries) Share this | Link to this | Hansard source

I move:

That this bill may proceed without formalities and be now read a first time.

Question agreed to.

Bill read a first time.

by leave—I move:

That the provisions of paragraphs (5) to (8) of standing order 111 not apply to the bill, allowing it to be considered during this period of sittings.

I table a statement of reasons justifying the need for this bill to be considered during these sittings and seek leave to have the statement incorporated into Hansard.

Leave granted.

The statement read as follows—

Statement o f Reasons f or Introduction a nd P assage i n t he 2021 Autumn Sittings

National Collecting Institutions Legislation Amendment Bill

Purpose of the Bill

The proposed amendment to increase investment options addresses risks that National Collecting Institution governing bodies have identified in relation to attracting and optimising private philanthropy. The Bill also seeks to address long standing administrative inconsistencies under these institutions enabling legislations that include inefficient governance arrangements and misalignment with the Public Governance, Performance and Accountability Act 2013.

Reasons for Urgency

The effects of COVID-19 on the arts sector have been profound. With our National Collecting Institutions suffering from their forced closure and substantially reduced visitation due to COVID-19, it is urgent that they are provided with greater financial flexibility as soon as possible.

The Government considers that there is urgency in providing National Collecting Institutions within the Infrastructure, Transport, Regional Development and Communications portfolio greater financial investment options for privately donated revenues.

Under current requirements privately donated revenue is treated in the same manner as ordinary Government appropriations, and there are restrictions on the forms of investments of these funds. This is proving to be a deterrent to philanthropic activity, with philanthropists seeking to place their donations where they will be most productive.

It is expected private sector investment and philanthropic giving to the arts will reduce reflecting the expected slowing of the economy, reduced returns on investment capital, funds and earnings of superannuation schemes. The current legislative framework presents a further limitation to the financial sustainability of National Collecting Institutions as they are unable to maximise returns on donated funds.

As an example, the National Portrait Gallery of Australia has benefitted from the generosity of philanthropic donations in recent years and has approximately $23 million in donated funds. However the Gallery is unable to invest these funds other than in a low­ interest bearing bank account or government security. Providing greater investment options would allow the Gallery to generate returns on donated funds and provide it greater financial strength in the medium to long term.

The Government considers these amendments will allow each of the National Collecting Institutions the ability to implement investment strategies for donated funds which will enhance their long term financial strength. This will a public benefit in enabling each Institution to operate with increased financial support at no additional cost to the taxpayer.

Passage of this legislation is sought by 30 March 2021 to enable Institutions to develop broader investment strategies to commence as soon as practicable.

Question agreed to.