Mr McGAURAN (Arts and the Centenary of Federation) (9:52 AM) —I move:

That the bill be now read a second time.

The Radiocommunications Legislation Amendment Bill 1999 seeks to make various, unrelated minor amendments which have been requested by the Australian Communications Authority (ACA) and its predecessors, in consultation with the telecommunications industry and consumers. These amendments are largely unrelated to each other, but all of them will aid the provision of telecommunications services. Now I turn to the details contained in the bill.

(a) The current act allows the ACA to regulate communications only with designated satellites. The modern telecommunications space industry will utilise a range of space objects. Companies which intend to invest in the launch and operation of space objects need to be assured that radiocommunications signals to and from their space objects are not interfered with. This bill will allow the ACA to regulate communications with space objects.

(b) The bill will allow the Australian Broadcasting Authority and the Australian Communications Authority to make written agreements allowing the ACA to issue radiocommunications licences in the broadcasting services bands.

(c) The current Radiocommunications Act 1992, subsection 60(5), allows the minister to limit the amount of spectrum specified persons may acquire. To limit is not generally understood as zero. This bill will allow the minister the flexibility of limiting to zero, the amount of spectrum that a specified person could acquire and thus possibly better aid the introduction of new players to the telecommunications industry, and consequently greater competition.

(d) The act, at subsection 100(4A), currently requires the ACA, when deciding on whether or not to issue apparatus licences, to have regard to frequency assignment certificates which state that the apparatus in question will not cause `unacceptable' interference. This is an unrealistic requirement. The bill will replace the term `unacceptable' with a more workable statement to the effect that the correct frequency coordination procedures, as determined by the ACA, have been followed.

(e) Subsection 266A(1) of the act provides that the ACA may determine conditions that apply to the issuing of a frequency assignment certificate under the act. It is doubtful, however, that this gives the ACA the power to ensure that accredited persons maintain professional indemnity insurance for a reasonable period after they issue frequency assignment certificates. To protect persons in the telecommunications industry this bill will correct this deficiency.

(f) In connection with section 315 of the act, the bill will simplify and reduce the penalties payable in lieu of prosecution for offences committed under the act. The current penalties are complex and excessive. Simplifying and reducing penalties is likely to lead to them being more readily applied and the industry being better regulated.

(g) Under current legislative arrangements for licence renewal a licensee may renew a licence up to six months before the licence expires. Failure to renew by the expiration of the licence means that the licensee must apply for a new licence. However, between the expiration of the licence and the issue of a new licence, licensees generally continue to operate but pay nothing to the ACA during this period. The bill will ensure that, if a licence is renewed, it will commence from the time of expiry, ensuring that licences are not used without appropriate fees being paid.

(h) Currently, the Radiocommunications Taxes Collection Act 1983, the Radiocommunications (Receiver Licence Tax) Act 1983, and the Radiocommunications (Transmitter Licence Tax) Act 1983 provide that licence tax instalments are due on the anniversary of the date of issue of a licence, not the date the licence commenced. It is inappropriate that a tax on a licence used for a particular period not relate to the particular period concerned. The bill will correct this deficiency in relation to the Radiocommunications Taxes Collection Act 1983. The Radiocommunications (Receiver Licence Tax) Amendment Bill 1999 and the Radiocommunications (Transmitter Licence Tax) Amendment Bill 1999 will correct this deficiency in the Radiocommunications (Receiver Licence Tax) Act 1983 and the Radiocommunications (Transmitter Licence Tax) Act 1983 respectively.

(i) In the event that the ACA and Australian Broadcasting Authority (ABA) are unable to concur in revoking an agreement regarding communications services, which are licensed by the ACA, operating in the broadcasting bands, an impasse results. This amendment will provide a mechanism for cancelling agreements for communications services to operate in broadcasting bands that will give certainty to the marketplace by providing specific criteria under which an agreement may be revoked.

(j) Section 23 of the act currently states that the act does not apply to foreign satellites, vessels or aircraft. Section 195 of the act, however, purports to regulate transmissions from foreign vessels and aircraft. This is a problem that arose from the way the act was originally drafted. The proposed amendment will remove the problem and make it clear that the ACA may regulate transmissions from foreign vessels and aircraft in Australian territory.

(k) Some devices used in telecommunications are neither transmitters nor receivers but reflectors. The act only covers transmitters and receivers. Reflectors are a low cost way of extending the coverage of transmitters and receivers. They are widely used but companies which do use them cannot seek the protection of the act in relation to interference that may occur with reflectors they use. The proposed amendment will extend the coverage of the act to reflectors.

(l) Under section 187A, if the ACA wishes to pursue manufacturers or importers for failing to retain appropriate records concerning a device covered by mandatory ACA standards appropriate records, it must go to the expense of prosecuting them because that is the only penalty allowed by the legislation. This is expensive, time consuming and draconian. The proposed amendment will allow such persons to be fined, specifically $220 for individuals and $1,100 for companies.

(m) The ACA enforces compliance with product standards by auditing the compliance documentation assembled by manufacturers or importers. Paragraph 279(1)(e) of the act, however, requires that only `quality assurance program records' need to be produced. Other relevant records are kept by manufacturers and importers but the ACA has no right to see them. The proposed amendment will give the ACA the power to require for inspection all records relevant to products' standards. This will ensure that Australian consumers of telecommunications devices can be assured that devices that they purchase are fit for the purpose they intend.

(n) Under the act the ACA may create accreditation bodies, but the act does not allow these bodies to charge for all the services they provide under the act. The policy aim regarding accreditation bodies is that private individuals or companies would form such bodies, under the auspices of the ACA, and provide services to the radiocommunications industry. Current charging arrangements make accreditation bodies economically unviable. The proposed amendment will allow accredited bodies to charge for the services they provide under the act. This should see more accreditation bodies established and more services provided to industry.

(o) Certain radiocommunications devices may be lawfully operated only by `qualified' persons. The ACA has the power, under section 263 of the act, to devolve the examination and assessment process persons must undergo in order to become `qualified'. The ACA does not, however, have the power to devolve the issuing of certificates of proficiency to persons who have become `qualified'. Thus the ACA will retain a considerable administrative burden for no apparent reason. The proposed amendment will allow the ACA to devolve the issuing of certificates along with the examination and assessment processes.

(p) There is no existing measure to ensure that Australia is able to assert a taxing right over income derived from the use of spectrum licences in cases where such licences are held by non-residents. This is a potential tax loophole which the proposed amendment will close before it can be used.

I thank the House for its forbearance in this technical recitation of the major aspects of the Radiocommunications Legislation Amendment Bill 1999. However, I am sure the House will agree that these are issues which, although highly technical at first glance, are extremely important to both the flourishing of a competitive industry and to the protection and guidance of consumers. I therefore commend the bill to the House and present the explanatory memorandum to the bill. The explanatory memorandum that I am presenting in regard to the Radiocommunications Legislation Amendment Bill also covers the next two bills which I will introduce on behalf of the government.

Debate (on motion by Mr Stephen Smith) adjourned.