Senator PARER (Minister for Resources and Energy)(12.07 p.m.) —by leave—I move:

(3)   Schedule 1, item 10, page 5 (line 17), omit "31 December 1997", substitute "30 June 1999".

(4)   Schedule 1, page 5 (after line 17), after item 10, insert:

10A Subsection 4(2)

Repeal the subsection, substitute:

(2)   The construction or modification of a bountiable vessel is taken, for the purposes of this Act:

   (a)   to have been completed on such date as the CEO determines to be the date on which that construction or modification was completed; or

   (b)   to have been at least 50% completed on 30 June 1999, if the CEO so determines immediately following that date.

10B Subsection 4(4)

After "modification, is,", insert "or, if the modification were completed, would be,".

10C Paragraph 5(1)(e)

After "contract for", insert ", or business plan evidencing a firm commitment to,".

1OD Paragraph 5(1)(f)

After "contract for", insert ", or business plan evidencing a firm commitment to,".

10E Paragraph 8(3)(a)

Repeal the paragraph, substitute:

   (a)   the construction or modification is carried out as a result of a firm commitment entered into before 1 January 1998; and

   (ab)   the construction or modification:

      (i)   is completed on 30 June 1999 or on a day occurring before that day; or

      (ii)   if subparagraph (i) does not apply—is at least 50% completed on 30 June 1999; and

lOF After subsection 8(3)

Insert:

(3A)   For the purposes of paragraph (3)(a), the construction or modification of a bountiable vessel by a shipbuilder will not be treated as having been carried out as a result of a firm commitment entered into before 1 January 1998 unless a business plan covering the period to 30 June 1999 that is lodged, or varied, before 15 January 1998, contains a statement of the kind referred to in subsection 17(7A) indicating that the construction or modification of the particular vessel was a construction or modification committed to before 1 January 1998.

(3B)   For the purposes of paragraph (3)(ab), the construction or modification of the bountiable vessel is taken to be at least 50% completed at a point where the eligible costs of the construction or modification in relation to that vessel amount to at least 50% of the construction or modification costs specified in the contract or business plan relating to the particular vessel.

10G Subsection 8(5)

After "are", insert ", or would, if the modification were completed, be,".

(5)   Schedule 1, item 11, page 5 (line 19), omit "1 January 1998", substitute "1 July 1999".

(6)   Schedule 1, item 12, page 5 (line 21), omit "31 December 1997", substitute "30 June 1999".

(7)   Schedule 1, page 5 (after line 21), at the end of the Schedule, add:

13 At the end of section 10

Add:

(2)   Subsection (1) applies in relation to the payment of bounty in respect of the construction or modification of a vessel that is not completed, but is at least 50% completed within the meaning of subparagraph 8(3)(ab)(ii), at 30 June 1999, as if:

   (a)   the vessel were a vessel whose construction or modification was completed before 1 July 1999; and

   (b)   the eligible costs of the construction or modification completed as at 30 June 1999 were the costs of the construction or modification of a completed vessel.

14 Paragraph 11 (2)(d)

Omit "completed", substitute "completed, or, in the case of a vessel whose construction or modification is not completed by 30 June 1999, within 12 months after that day".

15 Paragraph 13 (2)(d)

Omit "modification", substitute "modification, or, in the case of a vessel whose construction or modification is not completed by 30 June 1999, within 12 months after that day".

16 After subsection 17(7)

Insert:

(7A)   For the purposes of subsection (7), a business plan that covers the period ending on 30 June 1999 will not be treated as indicating that the construction or modification of a particular vessel was committed to before 1 January 1998 unless the plan includes a statement:

   (a)   that sets out the number of the bountiable vessels under construction or modification by the shipbuilder as at 31 December 1997, or whose construction or modification by the shipbuilder is proposed to be commenced after that last-mentioned date and before 1 July 1999, and the vessel is included in that number; and

   (b)   that specifies, in relation to the particular vessel:

      (i)   the specifications of the vessel including the gross construction tonnage worked out according to the formula in subsection 4(3); and

      (ii)   the timetable for carrying out the construction or modification, including the commencement and completion dates; and

      (iii)   the eligible costs of the construction or modification as defined in section 5; and

      (iv)   the place where the construction or modification is being, or will be, carried out; and

      (v)   the name of the owner of the vessel or, where the name is known, of the person intending to purchase the vessel on its completion or modification; and

      (vi)   such other details as are necessary to identify the particular vessel.

(7B)   A person who is a registered shipbuilder immediately before 1 January 1998 may, at any time before 15 January 1998, modify a business plan covering the period to 30 June 1999 by lodging with the Minister:

   (a)   if the plan did not contain a statement of the kind set out in subsection (7A)—such a statement; or

   (b)   if the plan did contain such a statement but, at a date before 1 January 1998, particulars of the vessels whose construction or modification is proposed to be commenced before 30 June 1999 have been varied—a statement reflecting the variation;

and, if the person does so, the plan as modified will be treated as if it were the plan lodged with the application for registration.

(7C)   If a person who is not a registered shipbuilder immediately before 1 January 1998 wishes to obtain registration with effect from that day or any subsequent day before 1 July 1999, the person must, despite any other provisions of this Act, lodge with the Minister, before 15 January 1998, a business plan:

      (i)   that covers the period from registration until 30 June 1999; and

      (ii)   that contains a statement of the kind referred to in subsection (7A).

(7D)   The lodgment of a plan in the circumstances set out in subsection (7C):

   (a)   is to be treated as complying with the requirements of subsections (7) and (7A) when an application for registration is subsequently made; and

   (b)   does not prevent the person making that application indicating, at the time of the application for registration, a modification of the plan as long as that modification does not:

      (i)   increase the number of vessels proposed to be constructed or modified; or

      (ii)   vary the requirements of any such construction or modification otherwise than by deletion of a requirement.

17 Section 28

After "subsection" (wherever occurring), insert "12(2), 12(3),".

18 Before paragraph 31(1)(a)

Insert:

(aa)   a decision of the CEO under paragraph 4(2)(b) that the construction or modification of a bountiable vessel is not at least 50% completed on 30 June 1999;

These amendments give effect to the government's decision to extend the operation of the Bounty (Ships) Act 1989. I think this has been canvassed fairly significantly both in speeches in the second reading debate and in subsequent debate.

I would also like to draw the Senate's attention to the fact that the bounty does get extended to 30 June 1999 and the minister is setting up a review panel, which is made up of his nominee, a nominee of the industry and an independent chairman, to look at all the factors in relation to shipbuilding. I have already enumerated these factors in response to Senator Murray in the second reading stage. I will not do it again. They reinforce the fact that the panel is to report by 23 June 1998, which is a year in advance of the proposed termination of the bounty on shipbuilding.