Senator IAN CAMPBELL (Parliamentary Secretary to the Treasurer) (3:55 PM) —I move:

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

Leave granted.

The speeches read as follows—

ACTS INTERPRETATION AMENDMENT (COURT PROCEDURES) BILL 2003

I am pleased to introduce the Acts Interpretation Amendment (Court Procedures) Bill 2003 for consideration by the Parliament.

The purpose of the Acts Interpretation Amendment (Court Procedures) Bill 2003 is to ensure the continued effective and efficient prosecution of Commonwealth offences in State and Territory courts.

As some members may be aware, the Commonwealth does not have its own criminal courts - our offences are prosecuted in State and Territory courts.

The efficient administration of Commonwealth justice requires seamless coordination with State and Territory legislation. Recently New South Wales has moved to amend its criminal procedures, moving from the old system of a summons laid upon an information or complaint to a system of court attendance notices. It is always possible that more States and Territories may make similar changes in the future.

This Bill inserts a new provision into the Commonwealth Acts Interpretation Act 1901, to make it clear that a reference in Commonwealth legislation to a summons, information or complaint, or other current forms of initiating proceedings, includes all relevant methods of initiating proceedings. This will include the new court attendance notices in New South Wales and provide for any similar amendments to State or Territory procedures in the future.

This Bill does not change the way that Commonwealth laws interact with State and Territory procedures - it merely ensures that the status quo is maintained.

As the New South Wales changes to criminal procedure commence on 7 July 2003, I ask that this Parliament pass this Bill promptly to ensure that there is no gap in the effective and efficient administration of Commonwealth justice in New South Wales.

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EXPORT MARKET DEVELOPMENT GRANTS AMENDMENT BILL 2003

The Export Market Development Grants Amendment Bill 2003 will refocus the EMDG scheme to further assist small and medium business, and in doing so better support the government's goal of doubling the number of exporters by 2006.

Each year this government invests $150.4 million in the EMDG scheme to support eligible export promotion activities of small and medium Australian businesses by partially reimbursing their eligible expenses.

The EMDG scheme has been regularly reviewed and is consistently hailed as a benchmark of effectiveness in terms of government industry support programs. In 1999/2000, following extensive econometric analysis of the scheme, Professor Bewley of the University of NSW found that an additional $12 in exports was generated as a result of every grant dollar spent.

Last year around 3,100 small and medium exporters received grants through the scheme. These businesses generated approximately $5 billion in export revenue and employed over 60,000 Australians.

Support was provided to small and medium enterprises across virtually all industries and in all parts of Australia. Importantly, 21% of grant recipients were located in rural and regional Australia.

Demand for grants has grown considerably in recent years, demonstrating the continued success of the scheme. Austrade informs me that it has received over 4,000 applications for the 2001/02 grant year, an increase of 23% by number on the previous year. Over 1,500 businesses applied for a grant for the first time.

Small business is one of the fastest growing sectors of the export community and is the key to doubling the number of Australian exporters. Austrade estimates that 97% of all Australian exporting firms are SMEs - these are the businesses that need to be nurtured.

Accordingly, since 1996 we have made a number of changes to make the EMDG scheme much more attractive and accessible to small business. These include:

· Reducing the minimum expenditure required to access the scheme from $30,000 to $15,000;

· Doubling the grant rate available to the tourism industry;

· Improving access for family businesses;

· Reducing red tape and documentation requirements;

· Introducing a $5,000 minimum grant; and

· Broadening the range of eligible export promotion expenditure.

The government has also taken steps to improve access of small businesses in rural and regional Australia to the scheme by ensuring that related domestic costs are included in the EMDG Overseas Visits Allowance.

The changes proposed in the Export Market Development Grants Amendment Bill 2003 will further simplify the scheme and put greater focus on assisting small and emerging exporters - that is, those businesses that most need assistance.

The proposed amendments include:

· Reducing the income ceiling for applicants from $50 million to $30 million;

· Reducing the maximum grant amount from $200,000 to $150,000;

· Reducing the maximum number of grants from 8 to 7;

· Removing the $25 million export earnings ceiling; and

· Removing the provision for additional grants for entering new markets.

The proposed changes are to take effect for EMDG claims from the 2003/04 EMDG grant year onwards. In other words to applications received and grants paid from 1 July 2004 onwards.

The total budget for the scheme will not be affected by the changes. Funding will remain at $150.4 million - a decision that reflects both the government's firm commitment to the scheme and its strong fiscal stance at a time when there are significant demands on the Federal Budget. The proposed amendments will, in fact, ensure that a greater number of claimants from the scheme's target group (small business) receive a grant.

The EMDG scheme is but one important element of our government's comprehensive strategy to double the number of Australian exporters by 2006. Last year for instance, we committed $21.5 million to expanding the TradeStart program over 4 years. TradeStart is designed to assist small businesses break into potentially lucrative overseas markets through an extensive network of specialist export advisers in 51 locations across metropolitan, rural and regional Australia. It also puts the international market expertise of Austrade's global network across 58 countries at the fingertips of small business.

And the early signs are encouraging. In 2000/01, the base year for the doubling target, the Australian Bureau of Statistics estimated there were approximately 25,000 exporting companies in Australia. Last financial year that number increased by almost 6,500 firms or over 25%.

But there is still an enormous amount of work to be done. In considering this bill it is important to keep in mind that the EMDG scheme is all about assisting small businesses to become sustainable exporters.

One such business is Queensland company Aleis International. Since humble beginnings in 1987, Aleis now provides its electronic livestock identification products to most major properties, saleyards and abattoirs across Australia. In the last few years the company has looked at expanding into overseas markets and recently won a tender (the biggest of its type) to provide electronic identification equipment for the entire cattle herd in Botswana. In 2002 Aleis received its first grant under the EMDG scheme enabling it to defray some of the costs associated with marketing its products around the globe.

Aleis and thousands of small companies like it are the unsung heroes of Australia's continued economic success. This bill will ensure that EMDG funding is focused on cultivating small and emerging exporters such as Aleis, and in turn contribute to the long-term strength of the Australian economy.

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AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY AMENDMENT BILL 2003

This bill will effect changes to the leadership and governance of Australia's prudential regulator, in accordance with recommendations made by the Royal Commissioner the Hon. Justice Neville Owen in his report of 4 April 2003. Justice Owen had inquired into the collapse of the HIH Insurance Group.

The Treasurer released Justice Owen's report on 16 April 2003.

While the Commissioner concluded that APRA did not contribute to or cause the collapse of HIH, he did find that it should have been more inquiring in its approach. In particular, he found that APRA “missed many warning signs, was slow to act and made misjudgements about some vital matters”.

This is a significant finding, and one that requires the full attention of APRA moving forward.

The Commissioner made a number of important recommendations that describe a preferred model of governance for APRA given its important role.

APRA's governance arrangements will be further strengthened and refined to better suit a body with APRA's important responsibilities.

In summary, the effect of the measures contained in this bill is to achieve four related objectives that flow from the recommendations of Justice Owen.

The first objective is to replace APRA's current part-time board with a full-time executive group comprising at least three and no more than five members.

The members would collectively exercise APRA's responsibilities, while preserving its status as an independent statutory authority.

This approach allows APRA to retain its name and identity, and to move forward and continue its process of evolution, with minimum disruption.

The second objective is to implement a number of changes that will better represent APRA's place within the financial system architecture.

This will better define how it relates to other bodies while ensuring it remains independent of undue political influence in conducting its operations.

At the same time, it permits more flexible communication between the Government and APRA, particularly on priorities, required policy changes and any other matters that might impact on financial system stability.

The third objective, given the proposed executive status of the new APRA members, is to apply an enhanced disclosure and conflict of interest framework.

This will enhance the integrity of the office of an APRA member and apply similar requirements as exist for other executive regulatory bodies.

The fourth, and final, objective, is to clarify the operation of provisions that allow APRA's engagement with other agencies.

APRA's greatest asset is its core of committed and professional staff.

The changes introduced by this bill are designed to establish a dedicated leadership team to guide APRA through the challenges that lie ahead of it.

These changes should have minimum impact on the dedicated people who comprise the heart of APRA while positioning the organisation for the future now that the HIH Royal Commission has concluded.

I commend the bill to the Senate.

Debate (on motion by Senator Mackay) adjourned.

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