Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Automotive Transformation Scheme Amendment (Securing the Automotive Component Industry) Bill 2015
Go To First Hit

Bill home page  


Download WordDownload Word


Download PDFDownload PDF

 

 

 

                                                                                                                

2013-2014-2015

 

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

SENATE

 

 

 

 

 

AUTOMOTIVE TRANSFORMATION SCHEME AMENDMENT (SECURING THE AUTOMOTIVE INDUSTRY) BILL » 2015

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

(Circulated by authority of Senators Rice and Simms)



AUTOMOTIVE TRANSFORMATION SCHEME AMENDMENT (SECURING THE AUTOMOTIVE COMPONENT INDUSTRY) « BILL » 2015

 

OUTLINE

 

This « Bill » amends the Automotive Transformation Scheme Act 2009 and the Automotive Transformation Scheme Regulations 2010 in order to apply new principles that will prioritise investment in manufacturing sustainable transport options.

 

Under this « Bill » support currently provided under the Automotive Transformation Scheme (ATS) will continue. This « Bill » seeks to apply new principles to redirect existing funding, in order to encourage investment in manufacturing sustainable forms of transport.

 

This « Bill » will also broaden the eligibility for the ATS scheme by broadening the current requirements for Australian component manufacturers to be producing components for Australian major vehicle producers in order to be eligible for assistance and extending eligibility to automotive parts makers that are seeking to be part of the local or global supply chain for electric or alternative fuel vehicles or renewable « energy » technologies. The « Bill » also extends eligibility to new car makers who plan to make electric or alternative fuel vehicles

 

NOTES ON CLAUSES

Clause 1: Short Title

1.           Clause 1 is a formal provision specifying the short title of the « Bill » .

Clause 2: Commencement

2.           The Bill's provisions commence on the 28 th day after it receives the Royal Assent.

Clause 3: Schedules

4.                   Subclause 3(1) provides that legislation that is specified in a Schedule to the « Bill » is amended or repealed as set out in that Schedule, and any other item in a Schedule operates according to its terms.

5.                   Subclause 3(2) provides that the amendment of regulation under subclause (1) does not prevent the regulation, as so amended, from being amended or repealed by the Governor-General.

Schedule 1—Amendments

 

Automotive Transformation Scheme Act 2009

Item 1—Subsection 3(1)

6.                   This item repeals subsection 3(1) and substitutes a new subsection that redefines the objects of the Act to include support for the Australian automotive industry to transition away from dependence on major motor vehicle producers and to encourage the design and manufacturing of « clean » « energy » technologies and the production of motor vehicles not powered by fossil fuels.

Item 2—Section 3A

7.                   This item inserts a new section 3A setting out general principles to guide actions under the Act.

 

a.        Subsection (1) provides that the production of electric motor vehicles and other motor vehicles not powered by fossil fuels should be promoted.

b.       Subsection (2) provides that automotive component producers should be assisted in:

                                                              i.       producing, or helping to produce, components for use in motor vehicles not powered by fossil fuels; and

                                                            ii.       diversifying to produce, or help to produce, components for use in « clean » « energy » technologies.

c.        Subsection (3) provides that employment opportunities in the automotive industry for people who have been made redundant by producers of motor vehicles, or automotive components, or people who have been affected by such redundancies, should be considered when prioritising assistance to be given under the Automotive Transformation Scheme.

d.       Subsection (4) provides that assistance under the scheme should focus on promoting quality production and manufacturing in the automotive industry.

 

Automotive Transformation Scheme Regulations 2010

Item 3—Paragraph 2.4(1)(ba)

8.                   This item inserts a new paragraph 2.4(1)(ba) after paragraph 2.4(1)(b) that states that motor vehicle producers may apply for registration under the ATS as an MVP if in the 12 months preceding the application the applicant has produced in Australia electric motor vehicles or other vehicles not powered by fossil fuels, or engines for such vehicles .

Item 4—Paragraph 2.4(1)(c)

9.                   This item makes a consequential amendment to paragraph 2.4(1)(c) to include a reference to the new paragraph 2.4(1)(ba).

Item 5—Paragraph 2.5(1)(ba)

10.               This item inserts a new paragraph 2.5(1)(ba) after paragraph 2.5(1)(b) that states producers of automotive components may apply for registration under the ATS as an Automotive Component Producer (ACP) if in the 12 months preceding the application the applicant has produced in Australia at least one kind of automotive component for use as original equipment in electric vehicles or other vehicles not powered by fossil fuels, or engines for such vehicles.

Item 6—Paragraph 2.5(1)(c)

11.               This item makes a consequential amendment to paragraph 2.5(1)(c)to include a reference to the new paragraph 2.5(1)(ba).

Item 7—Subregulation 2.8(4A)

12.   This item inserts a new subregulation 2.8(4A) that requires the Minister to grant a person permission to apply for registration under the ATS as an ATS participant on the basis that registration is in the national interest if the Minister is satisfied that the person will produce electric motor vehicles or other motor vehicles not powered by fossil fuels and will do so in a location where one or more MVPs operate at the time of the application. This provision is intended to encourage new manufacturers to establish themselves in cities or regions where there is likely to be higher unemployment as a result of existing manufacturers exiting.

Item 8—Paragraph 3.12(2)(aa)

13.               This item inserts a new paragraph 3.12(2)(aa) after paragraph 3.12(2)(a) to require the Minister when making the Order under subregulation 3.1(1) to have regard to the need to prioritise the payment of assistance to ACPs who produce components for electric motor vehicles or other vehicles not powered by fossil fuels.

Item 9—Appropriation

14.               This item provides that any amount of uncapped assistance that is payable by the Commonwealth under the Australian Transformation Scheme Act 2009 as a result of the amendments made by the « Bill » is to be funded out of money appropriated by the Parliament expressly for the purposes of such a payment.



 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Automotive Transformation Scheme Amendment (Securing the Automotive Component Industry) « Bill » 2015

 

This « Bill » is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .

 

 

Overview of the « Bill »

This « Bill » amends the Automotive Transformation Scheme Act 2009 and the Automotive Transformation Scheme Regulations 2010 in order to apply new principles that will prioritise investment in manufacturing sustainable transport options.

 

Under this « Bill » support currently provided under the Automotive Transformation Scheme (ATS) will continue. This « Bill » seeks to apply new principles to redirect existing funding, in order to encourage investment in manufacturing sustainable forms of transport.

 

This « Bill » will also broaden the eligibility for the ATS scheme by broadening the current requirements for Australian component manufacturers to be producing components for Australian major vehicle producers to be eligible for assistance and extending eligibility to automotive parts makers that are seeking to be part of the local or global supply chain for electric or alternative fuel vehicles.

 

Human rights implications

This « Bill » does not engage any of the applicable rights or freedoms.

This « Bill » seeks to secure jobs of the future and encourage investment in low carbon transportation which would have a positive impact on Australian manufacturing workers and lower Australia’s carbon emissions, however, the « Bill » would have no impact on human rights.

 

Conclusion

This « Bill is compatible with human rights as it does not raise any human rights issues.

 

Senators Rice and Simms