Senator IAN CAMPBELL (Parliamentary Secretary to the Treasurer)(4.01 p.m.) —I table revised explanatory memoranda relating to both bills and move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard

Leave granted.

The speeches read as follows—

FAMILY COURT OF WESTERN AUSTRALIA (ORDERS OF REGISTRARS) BILL 1997

The bill contains no new policy but overcomes technical deficiencies in the way Commonwealth and State family law legislation and Rules of Court have applied in Western Australia. Western Australia is the only State to have its own family court. The bill is designed to complement Western Australian legislation addressing these deficiencies from within the legislative capabilities of that State.

The bill will create family law rights and liabilities for the many people who may be affected by a recent decision of the Full Court of the Family Court of Australia in the matter of Horne v Horne 13 February 1997, Appeal No. WA 13 of 1996. In that case, the Full Family Court held that the Family Law Rule that purportedly allowed Registrars of the Family Court of Western Australia to exercise the power to make consent orders was invalid. As a result, many consent orders made by Registrars in Western Australia are ineffective.

This bill will overcome this problem by ensuring that all affected people in Western Australia obtain enforceable, statutory family law rights and liabilities that mirror the rights and liabilities that would have been created by valid Registrars' orders.

The approach taken in the bill is based on a similar one approved by the High Court in R v Humby ex parte Rooney (1973) 129 CLR 231 and subsequently in cases such as Polyukhovich v the Commonwealth (1991) 172 CLR 501. This approach does not attempt to validate the purported orders made by Registrars. Instead, it creates new statutory rights and liabilities that may be exercised and enforced in the same manner as orders.

The bill will not have any significant financial impact.

I commend the bill.

HEALTH INSURANCE COMMISSION (REFORM AND SEPARATION OF FUNCTIONS) BILL 1997

This bill provides for the separation of Medibank Private from the Health Insurance Commission (HIC), and the creation of a new Medibank Private corporation.

Through the separation, the Government will ensure that Medibank Private cannot be perceived to have any competitive advantage over other private health funds through its association with Medicare or other government programme functions of the HIC. It reinforces Government's commitment to the principle of competitive neutrality.

The new Medibank Private corporation, after a transitional period in which it will operate as a wholly-owned subsidiary of the HIC, will remain in public ownership.

The bill therefore provides for the HIC initially to hold shares in the nominated company and to seek registration of that company as a registered health benefits organisation under the National Health Act 1953. The HIC may not transfer any of its shares or voting rights attached to the shares before the date on which the shares are transferred to the Commonwealth.

Any change to these ownership arrangements can only be made by parliamentary amendment of this legislation.

The new company, once it is operating Medibank Private, will not be limited by the current provisions of the Health Insurance Commission Act to determine the range of activities that may be carried out by the company. This will ensure that Medibank Private, to all intents and purposes, will be able to compete on an even footing with other private health insurers.

The bill provides for the transfer of the fund and its business to the "nominated company" (not yet formed) which will operate Medibank Private. The HIC is specifically empowered by the bill to facilitate that transfer. The transfer scheme will be published in the Gazette.

Provision for the transfer of assets, contracts—including the splitting of contracts between the HIC and the nominated company in some cases—and liabilities to Medibank Private by ministerial declaration are specifically covered in the bill. Gazettal of any related determinations and a number of other determinations necessary to effect separation will ensure the transparency of transactions.

Staff affected by the transfer will be treated fairly. Where an employee is transferred under these provisions, their terms and conditions of employment and other rights and entitlements defined in the bill, have been preserved. The bill does not, of course, prevent variations at a later date under any law, award, determination or agreement, but the interests of staff will be taken into account by the Government.

Transferred employees will not be,entitled to any termination payment by leaving HIC employment, but re-transfer provisions will give considerable flexibility for staff transfers back to the HIC for a period of twelve months from the date on which the Commonwealth assumes ownership of the Medibank Private company.

Minor provisions in the bill include stamp duty exemption for designated matters necessary to carry out the separation, the capacity to transfer pending legal proceedings to the new company where appropriate. the transfer of records in accordance with the Archives Act 1983, provision for the company not to be taken legally as an agency of the Commonwealth, for the Minister to be represented at corporations law meetings by the Chairman or the Secretary, and delegations.

The bill also permits any complaints or investigations under the Ombudsman Act 1976 or the Privacy Act 1988, and requests under the Freedom of Information Act 1982, which may have been or have been made prior to the Medibank Private fund-transfer day, and which relate to Medibank Private, to be completed.

In order to meet the requirement for Medibank Private to operate on an equal footing with its competitors, these enactments will not apply to Medibank Private thereafter, other than in this transitional sense. The company will, however, continue to operate within the spirit of these regimes (as it does today where the Medibank Private business is not prescribed under these enactments). Medibank Private will, like its competitors, remain subject to the complaints investigations powers of the Private Health Insurance Complaints Commissioner.

The bill also makes a number of consequential changes to the Health Insurance Commission Act 1973, other acts. and the Health Insurance Commission Regulations.

The Government stresses that the provision of Medicare services will be maintained as a core HIC function, and the HIC will be expected to continue to strive for excellence in delivering quality claims and related services to the public. Other existing government programmes functions, including the Pharmaceutical Benefits Scheme, will also continue to be performed by the HIC.

Additionally, the bill also recognises a widening role for the HIC in the delivery of health payments services and information to support health sector initiatives. The HIC may, in future, provide health information and payments support services to State governments as well as to the Commonwealth. For this reason, the bill permits consultation with the States and Territories as to their possible representation on the HIC board.

Other minor corporate governance changes and transitional arrangements are also made by the bill.

Debate (on motion by Senator Denman) adjourned.

Ordered that these bills be listed on the Notice Paper as separate orders of the day.