Scott Ryan (President) Share this | Link to this | Hansard source

The question is that the second reading amendment on sheet 1284, moved by Senator Watt, be agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is the second reading amendments, circulated by the Australian Greens, on sheets 1274 and 1290 be agreed to.

Greens ' circulated amendments—

SHEET 1274

At the end of the motion, add: ", and the bill be referred to the Environment and Communications Legislation Committee for inquiry and report by 15 June 2021".

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SHEET 1290

At the end of the motion, add: ", but the Senate is of the view that no public money should be invested in coal, gas or oil projects".

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that the bill be read a second time.

Scott Ryan (President) Share this | Link to this | Hansard source

I will now deal with the circulated amendments to this bill, starting with government amendments on sheet RJ117. I understand there was a supplementary explanatory memorandum to the amendments, and I call the minister.

Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I table the supplementary explanatory memorandum.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that the amendments on sheet RJ117, circulated by the government, be agreed to.

Government ' s circulated amendments—

(1) Schedule 1, item 12, page 7 (line 7), after "assistance", insert "(other than equity investments)".

(2) Schedule 1, item 12, page 7 (line 9), after "assistance", insert "(other than in the form of equity investments)".

Larissa Waters (Queensland, Australian Greens) Share this | Link to this | Hansard source

I seek to move the amendment on sheet 1292, which has just been circulated, which amends Labor's amendment on sheet 1247. It changes the date for carbon neutrality from 2050 to 2035.

Scott Ryan (President) Share this | Link to this | Hansard source

As this was not circulated prior to the cut-off, leave is required to move the amendment. Is leave granted?

Leave granted.

Larissa Waters (Queensland, Australian Greens) Share this | Link to this | Hansard source

I move Greens amendment (1) on sheet 1292:

(1) Amendment (1), subsection (1A), omit "2050", substitute "2035".

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that Greens amendment (1) on sheet 1292 be agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

I will now deal with the amendments as circulated by the opposition on sheets 1246, 1247, 1248, 1273 and 1277. The question is that the amendments on those sheets be agreed to.

A division having been called and the bells being rung—

With the consent of the Senate, I will cancel the division. I have been informed by the whips that there are some instructions from an absent senator that will require the consideration of these amendment sheets separately. Could I seek the guidance of a whip or a spokesperson about which amendment to put so I can separate the ones where you have separate voting instructions?

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We can vote on sheets 1246, 1247 and 1277 together.

Scott Ryan (President) Share this | Link to this | Hansard source

And the other two separately?

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We can do 1248 and 1273 together.

Slade Brockman (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, you can't put 1246 and 1247 together. I've got different voting positions indicated on those two.

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

One is abstaining, so it doesn't matter. It can be put together. We just don't register it.

Scott Ryan (President) Share this | Link to this | Hansard source

An abstention would need to be put separately because it would be an absent vote from the chamber. I will reflect both whips. I will put 1246, then I will put 1247—

Anne Urquhart (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

With that can go 1277. That's an abstention.

Scott Ryan (President) Share this | Link to this | Hansard source

Yes, that's agreed to. We'll have three votes. The question is that opposition amendment (1) on sheet 1246 be agreed to.

O pposition's circulated amendments—

(1) Schedule 1, page 9 (after line 10), after item 29, insert:

29A At the end of section 15(4)

Add:

(5) At least one member must be an Indigenous person.

(6) In this section:

Indigenous person means a person who is:

(a) a member of the Aboriginal race of Australia; or

(b) a descendant of an Indigenous inhabitant of the Torres Strait Islands.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that opposition amendment (1) on sheet 1247 and amendments (1) to (5) on sheet 1277, circulated earlier, be agreed to.

Opposition's circulated amendments—

SHEET 1247

(1) Schedule 1, item 1, page 3 (after line 9), after subsection 3(1), insert:

(1A) A further object of this Act is to encourage the provision of such financial assistance in relation to Northern Australia economic infrastructure that contributes to Australia's achievement of net zero emissions by 2050, and a person in exercising powers or performing functions or duties conferred by this Act must have regard to this object.

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SHEET 1277

(1) Schedule 1, page 4 (after line 15), after item 5, insert:

5B Section 5 (definition of Minister's consideration period )

Repeal the definition.

(2) Schedule 1, page 4 (after line 19), after item 6, insert:

6B Section 5

Repeal the following definitions:

(a) definition of proposal notice;

(b) definition of rejection notice.

(3) Schedule 1, page 8 (after line 6), after item 19, insert:

19AA At the end of section 9

Add:

(5) The responsible Ministers must not give a direction under subsection 9(1):

(a) that has the purpose, or has or is likely to have the effect, of directly or indirectly requiring the Board or Facility to, or not to, give particular financial assistance; or

(b) that is inconsistent with this Act (including the objects of this Act).

(4) Schedule 1, items 22 to 24, page 8 (lines 15 to 28), omit the items, substitute:

22 Part 4

Repeal the Part.

(5) Schedule 1, page 11 (after line 19), after item 46, insert:

46A Paragraphs 42(b) and (c)

Repeal the paragraphs.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that the amendments on sheets 1248 and 1273 be agreed to.

Opposition's circulated amendments—

SHEET 1248

(1) Schedule 1, page 4 (after line 15), after item 5, insert:

5A Section 5 (after paragraph (d) of the definition of Northern Australia )

Insert:

(da) the Territory of Christmas Island;

(db) the Territory of Cocos (Keeling) Islands;

(2) Schedule 1, page 4 (after line 19), after item 6, insert:

6A Section 5 (paragraph (f) of the definition of Northern Australia)

Omit "paragraphs (a) to (d)", substitute "paragraphs (a) to (db)".

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SHEET 1273

(1) Schedule 1, page 8 (before line 15), before item 22, insert:

21B After section 10

Insert:

10A Matters covered by Investment Mandate—portfolio benchmark return

(1) Without limiting section 10, the Investment Mandate must include directions that require the Facility to apply a portfolio benchmark return in relation to decisions to provide financial assistance.

(2) The portfolio benchmark return must only be applied to for-profit projects.

(3) The portfolio benchmark return must be applied together with any directions included in the Investment Mandate relating to risk.

(4) The portfolio benchmark return must:

(a) include a target rate of return that is an average return over the medium to long term, of at least the sum of the five-year Australian Government bond rate and 3% per annum; and

(b) be calculated before operating expenses; and

(c) be calculated with reference to the performance of for-profit projects individually and in aggregate.

Scott Ryan (President) Share this | Link to this | Hansard source

I will now deal with amendments circulated by the Australian Greens on sheets 1268, 1278, 1280, 1281, 1282 and 1287. The first question is that items 25, 27 and 42 of schedule 1 stand as printed.

The Australian Greens opposed items 25, 27 and 42 of schedule 1 in the following terms—

(2) Schedule 1, item 25, page 8 (line 29) to page 9 (line 1), to be opposed.

(3) Schedule 1, item 27, page 9 (lines 4 and 5), to be opposed.

(4) Schedule 1, item 42, page 10 (lines 15 to 24), to be opposed.

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that the remaining amendments on sheets 1268, 1278, 1280, 1281, 1282 and 1287, circulated by the Australian Greens, be agreed to.

Greens' circulated amendments—

SHEET 1268

(1) Schedule 1, item 11, page 6 (after line 23), after subsection 7(1B), insert:

(1BA) The Facility must not provide financial assistance in the form of equity investments under subsection (1A) to an entity other than:

  (i) a corporation formed under the Corporations (Aboriginal and Torres Strait Islander) Act 2006;or

  (ii) a small business entity (within the meaning of the Income Tax Assessment Act 1997).

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SHEET 1278

(1) Schedule 1, page 8 (after line 14), after item 21, insert:

21A After section 10

Insert:

10A Matters covered by Investment Mandate—ecological integrity

(1) The Investment Mandate must include directions that require the Facility not to give financial assistance in relation to projects that have the potential to damage the ecological integrity of protected areas or pastoral leases managed for conservation.

(2) Subsection (1) does not limit section 10.

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SHEET 1280

(1) Schedule 1, page 4 (after line 4), after item 4, insert:

4A Section 5

Before "In this Act", insert "(1)".

(2) Schedule 1, item 7, page 4 (before line 22), before the definition of responsible Ministers, insert:

principles of ecologically sustainable development has the meaning given by subsection (2).

(3) Schedule 1, page 4 (after line 27), after item 7, insert:

7A At the end of section 5

Insert:

(2) The following principles are principles of ecologically sustainable development:

(a) decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations;

(b) if there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation;

(c) the principle of inter-generational equity—that the present generation should ensure that the health, biodiversity and productivity of the environment is maintained or enhanced for the benefit of future generations;

(d) the conservation of biodiversity and ecological integrity should be a fundamental consideration in decision-making;

(e) improved valuation, pricing and incentive mechanisms should be promoted.

(4) Schedule 1, items 20 and 21, page 8 (lines 7 to 14), omit the items, substitute:

20 Section 10

Repeal the section, substitute:

10 Matters covered by Investment Mandate

The Investment Mandate:

(a) must include a direction that the Facility must have regard to the principles of ecologically sustainable development when deciding whether to provide financial assistance; and

(b) may include directions about the following:

  (i) objectives the Facility is to pursue in providing financial assistance;

  (ii) strategies and policies to be followed for the effective performance of the Facility's functions;

  (iii) loan characteristics for circumstances in which financial assistance is used to provide or support loans;

  (iv) providing financial assistance for purposes other than to provide or support loans;

  (v) matters relating to the provision of financial assistance in the form of equity investments, including limits on the amount that may be provided in this form, the rate of return, and the management of risks;

  (vi) eligibility criteria for financial assistance;

  (vii) risk and return in relation to providing financial assistance;

  (viii) any other matters the responsible Ministers think appropriate.

_____

SHEET 1281

(1) Schedule 1, item 11, page 6 (after line 15), after subsection 7(1A), insert:

(1AA) The Facility must not provide financial assistance to entities other than the States and Territories under subsection (1A), except with the agreement of each State or Territory in relation to which that financial assistance is provided.

_____

SHEET 1282

(1) Schedule 1, item 7, page 4 (line 24), omit the definition of Secretary.

_____

SHEET 1287

(1) Schedule 1, page 7 (after line 23), after item 15, insert:

15A At the end of Part 2

Add:

8A Prohibition on assistance for fossil fuel -based infrastructure

(1) Financial assistance must not be provided under this Act for the development of fossil fuel-based infrastructure.

(2) It must be a condition of any grant of financial assistance under this Act that the financial assistance not be used (whether directly or indirectly) for the development of fossil fuel-based infrastructure.

(3) Without limiting subsection (1), neither the Facility nor a subsidiary of the Facility may invest (whether directly or indirectly, including as a participant in a partnership, trust, joint venture or similar arrangement, through subsidiaries or other investment vehicles, or by any combination of these means) in fossil fuel-based infrastructure.

(4) In this section:

fossil fuel -based infrastructure:

(a) includes fossil fuel-based electricity generation capacity; and

(b) includes infrastructure relating to extraction, processing, storage and movement of fossil fuels; and

(c) does not include electricity transmission infrastructure.

fossil fuels includes any of the following:

(a) coal;

(b) oil and other petroleum-based products;

(c) gas;

(d) products, by-products and wastes from extracting or processing fossils fuels to which paragraphs (a) to (c) apply.

8B Cost -benefit analysis to be undertaken

The Facility must not make a decision to provide financial assistance for the development of Northern Australia economic infrastructure unless:

(a) a cost-benefit analysis has been prepared in relation to the infrastructure; and

(b) the cost-benefit analysis has been published on the Facility's website for a period of at least 30 days before the decision is made; and

(c) the public has been consulted in relation to the infrastructure; and

(d) regard has been had to any submissions received as result of the consultation.

Scott Ryan (President) Share this | Link to this | Hansard source

I will now deal with the amendments from the Australians Greens which were circulated after 11.30 this morning, hence leave will be required for them to be considered. Is leave granted?

Leave granted.

Larissa Waters (Queensland, Australian Greens) Share this | Link to this | Hansard source

I move Greens amendment (1) on sheet 1283, circulated earlier:

(1) Schedule 1, page 7 (after line 23), after item 15, insert:

15A At the end of Part 2

Add:

8A Prohibition on assistance for new fossil fuel projects

(1) Financial assistance must not be provided under this Act for the development of fossil fuel-based infrastructure associated with a new fossil fuel project.

(2) It must be a condition of any grant of financial assistance under this Act that the financial assistance not be used (whether directly or indirectly) for the development of fossil fuel-based infrastructure associated with a new fossil fuel project.

(3) Without limiting subsection (1), neither the Facility nor a subsidiary of the Facility may invest (whether directly or indirectly, including as a participant in a partnership, trust, joint venture or similar arrangement, through subsidiaries or other investment vehicles, or by any combination of these means) in fossil fuel-based infrastructure associated with a new fossil fuel project.

(4) In this section:

fossil fuel-based infrastructure:

(a) includes fossil fuel-based electricity generation capacity; and

(b) includes infrastructure relating to extraction, processing, storage and movement of fossil fuels; and

(c) does not include electricity transmission infrastructure.

fossil fuels includes any of the following:

(a) coal;

(b) oil and other petroleum-based products;

(c) gas;

(d) products, by-products and wastes from extracting or processing fossils fuels to which paragraphs (a) to (c) apply.

new fossil fuel project means a project for the development of fossil fuel-based infrastructure that:

(a) receives the relevant authorisation to begin development on or after the commencement of this section; and

(b) is not a project for the further development of existing fossil fuel-based infrastructure.

They say that we shouldn't fund new fossil fuel projects—

Scott Ryan (President) Share this | Link to this | Hansard source

Thank you, Senator Waters; we don't have time. The question is that Greens amendment (1) on sheet 1283 be agreed to.