Senator IAN MACDONALD (9:52 AM) —I table revised explanatory memoranda relating to the Customs and Excise Legislation Amendment Bill (No. 1) 1998 and the Crimes (Superannuation Benefits) Amendment Bill 1998 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 —

HIGHER EDUCATION LEGISLATION AMENDMENT BILL 1997

This Government is one committed to expanding the number of places in higher education, to improving the resources of higher education, and to creating a higher education system that is flexible enough to meet the needs of Australian students, employers and the community and to continue to attract large numbers of students from overseas.

The bill legislates funding levels for the years 1999 and 2000. It provides new funding of $3,783,052,000 in 1999 (in addition to the existing $8,247,000 already legislated) and $3,581,640,000 in 2000. In legislating funds for 1999 and 2000, the bill confirms to higher education institutions the overall funding levels that are expected to be published later this year in the Higher Education Funding Report for the 1998-2000 Triennium . This will assist the institutions in their planning for the next few years.

I want to take this opportunity to set the funding decisions embodied in this bill in the context of the Government's policy to promote access to higher education in Australia and to build quality. The Government is pursuing a quite deliberate strategy to expand both places and resources for the universities at the same time as it changes the mix of public and private funding.

Under this Government there has been strong growth in the number of undergraduate student places. In 1997 there were over 17,000 more undergraduate places than there had been in 1996, an increase that will, according to the universities' estimates, still be in place in 1999.

These figures are even better news for educational opportunity than they first appear, since the 17-24 year old population, from which 70 per cent of undergraduate students are drawn, will decline by 3 per cent over the period 1996 to 1999. The result is that a greater proportion of young Australians will have the opportunity to continue with their studies.

If postgraduate students are included, the increase in numbers is even greater. On the universities' estimates, there will be in the year 2000 in excess of 453,000 domestic students in the higher education system, an increase of over 27,000 on 1996.

In every year currently legislated, and in the years legislated by these amendments, there is an increase over 1996 in the number of Commonwealth funded undergraduate places. In the year 2000 there will be over 14,000 more Commonwealth funded undergraduate places than there were in 1996.

In implementing the efficiency cuts to forward estimates the Government has been careful to maintain fairness. The universities have wherever possible accommodated the changed financing at the postgraduate course work level. This maximises the number of students who will receive a first degree and all the opportunities that can flow from that.

The universities will from 1998 be paid the equivalent of the minimum up front differential HECS payment for each HECS liable undergraduate they enrol over their target level. For institutions with low costs this is an opportunity to offer additional places without charging fees.

Further opportunities to participate in higher education have been created by the Government's decision to allow universities, from 1 January next year, to offer undergraduate fee-paying positions once they have met their target enrolment levels. These are all extra places that would not otherwise have existed. As students take up the fee paying positions, this has a flow-on effect, creating new opportunities for students who would otherwise have missed out on a HECS funded place. It is a win-win policy. Students who would have missed out on their first preference course will now get to do it, and students who would have missed out on higher education entirely will now get to enrol.

Over time, this policy could greatly increase the number of places in Australian universities. Up to 25 per cent of course numbers can be fee-paying once the institution has met its target enrolments, so the potential numbers of new undergraduate students on a Commonwealth-funded base of over 360,000 is very large indeed.

Another important point to recognise is that this policy shift ends the previous government's discrimination against Australian undergraduate students and ensures that Australian students have equal rights of entry to Australian universities with overseas students. Under the Labor Party, if you were from overseas you could invest in your future via education. But not if you were Australian. Under the Labor Party, if you were a postgraduate you could invest in your future via education. But not if you were an undergraduate. This was a very unfair policy. Yet it is a policy Labor plans to bring back. Their draft platform released last week promises the abolition of this new opportunity for students to invest in their futures. This is a very backward step.

As higher education numbers expand we must make sure that opportunities to participate are widespread. The Government wishes to increase opportunities for groups that have been under-represented in higher education. People with disabilities, people from disadvantaged socio-economic backgrounds, women in non-traditional areas of study, people from rural and isolated areas, people from non-English speaking backgrounds, and Aboriginal and Torres Strait Islanders are all the beneficiaries of the merit scholarships introduced in 1997. These scholarships provide exemption from the HECS charge to an additional 1000 effective full time student units each year. By the year 2000 the scholarships will provide exemptions of 4000 equivalent full time student units, which means that well over 4000 students will benefit each year.

These groups of people also benefit from the Higher Education Equity Program, which assists the universities in developing appropriate programs to improve educational outcomes. Additional measures costing $72 million over three years were announced last year by Senator Vanstone for Aboriginal and Torres Strait Islander higher education.

The distribution of growth places is designed to ensure that potential students do not miss out because of where they live. Between 1996 and 1999 Queensland's Commonwealth funded undergraduate places will increase by approximately 14 per cent, and Western Australia's by around 5 per cent.

The higher education system cannot just be assessed by the number of students within it at any given time. A high quality education is essential if the potential present in Australia's students is to be realised, and if our universities are to remain competitive in the world market.

The universities, and many dedicated individuals within them, have already taken steps to maintain and improve teaching standards. The introduction of first overseas and now Australian fee-paying students means that the universities have strong financial incentives to deliver a high quality product. Since it is in most cases impractical for the universities to differentiate between fee-paying and non fee-paying students, the policy of liberalising access to the education system produces spin-off benefits for non-fee paying students.

The Government has taken other measures to help improve the quality of teaching. The Committee for University Teaching and Development was established in July 1996 with a budget of $20 million over three years. It makes recommendations for grants to encourage practical improvements in teaching and provide for staff development projects.

The status of teaching within the universities is being enhanced by the Australian Awards for University Teaching, announced in the Great Hall last Monday night. These Awards recognise and reward excellence in teaching, in the way that the grants administered by the Australian Research Council recognise and reward the many outstanding researchers in our universities.

Funding for higher education research through the targeted higher education research programme has been increased over the 1997-99 triennium, with additional funding totalling $129.3 million including the $90 million for research infrastructure. The quality of research training is being enhanced through an additional $9.3 million in support for Australian Postgraduate Awards. Funding for collaborative research grants, now re-aligned in the Strategic Partnerships with Industry—Research and Training Scheme, has been increased by $30 million. This collaborative funding forges stronger links between industry and universities, providing mutually beneficial opportunities for researchers in both sectors and helping universities diversify their funding sources.

It is important to look at the overall impact of higher education funding decisions taken by the government. The government's financial commitment to higher education remains, of course, very substantial indeed. Despite the efficiency cuts to the forward estimates total Commonwealth expenditure on higher education will remain higher under this Government than it was under the former Government.

In considering higher education funding it is important to look not just at Commonwealth funding, but at the total revenues available to the higher education sector. These are the figures that represent the true resources available to higher education. They show that substantially greater funds are available to the universities.

About a third of all university revenue now comes from non-government sources. These revenue sources have the potential for growth. Total funding from all sources to the universities is estimated to have increased by around $460 million between 1995 and 1997. By 1999 it is estimated that the universities will have revenues around $650 million greater than in 1995.

While the Commonwealth government will remain the largest single source of funds for higher education, significant growth in higher education funding will be coming from the entrepreneurial activities of the universities themselves.

To spread the burdens of fiscal restraint fairly, the Commonwealth has phased in the reductions in the growth in the amount of money for higher education. On top of that we provided the opportunity for the sector to expand and become less dependent on Commonwealth money by creating the opportunities for the universities to raise revenue in other ways.

Australian universities have been very successful in capturing a sizeable portion of the overseas student market. Despite the currency difficulties in some parts of Asia the prospects for the Australian education export industry are positive and our universities should still be able to derive a substantial income from overseas students.

Growth in higher education overseas student numbers in 1997 is approximately 16 per cent.

Our ability to sustain growth in the overseas student market is because so far studying in Australia is still comparatively cheap. The United States and the United Kingdom are still more expensive study destinations than Australia.

Demand for study abroad is likely to be somewhat dampened by the current economic downturns in Asian economies. Nevertheless, currency devaluations may in some countries have worked in our favour by widening the cost gap between us and our major competitor countries, strengthening Australia's position in the education export market.

The most recent evaluation of the situation is that, due to relative movements in exchange rates over recent months, Australia's competitive position against the US, the UK and Canada has improved in all our major markets—Malaysia, Indonesia, Hong Kong, Thailand, Taiwan, Singapore, South Korea, Japan, Vietnam, China and India.

Overseas educational qualifications will continue to be strongly valued in Asian economies and the longer term demand for skilled labour will persist. Australia has a good reputation for providing a quality education and therefore I expect that Australia also continue to capture a significant share of the overseas higher education market

This Government will assist where it can. In order to more fully understand the situation facing the Australian international education and training industry I have commissioned Professor Raoul Mortley to undertake an investigation and report to me by 15 December 1997.

It is important that the higher education sector, and all other sectors of education and training, meet the needs of the community and employers as well as those of the students. This leads me to the important theme of lifelong learning.

Gaining skills is now much more complex. In the higher education sector this means that education and training does not necessarily happen at one institution in a continuous block of time. This allied to the increase in student numbers and the diversity of student backgrounds has placed greater demands on universities.

As the notions of lifelong learning—and the need constantly to update skills—take greater hold the education and training sector must develop appropriate delivery systems at a reasonable cost.

The ramifications of lifelong learning will go across boundaries. Schools, universities and vocational education institutions traditionally have different missions. It is already apparent, however, that the boundaries between the sectors are becoming blurred.

We have higher education institutions which offer sub-degree programs and some TAFEs now offer degrees. Considerable attention is now paid to articulation arrangements. I expect this trend to intensify.

An increase in flexible arrangements in the post-compulsory education and training sector will help to achieve one of this Governments priorities—to ensure that every young person wanting to pursue education or training after the compulsory years of schooling, can do so.

The fact is that about one quarter of 16, 17 and 18 year olds are not in any form of post-compulsory education and training. This Federal Government will do its utmost to expand opportunities for and lift the skill levels of these young people. At the same time we want to ensure that adults of all ages have good access to post-compulsory education and training at different stages throughout their lives. This Government intends to progress this agenda with the cooperation of all education and training sectors.

I will now turn to other specific measures in this bill. The bill is designed to improve and streamline the operation of the higher education program, and will also provide increased funds to the sector over existing legislated amounts.

In addition to legislating for the major funding amounts I have already mentioned the bill amends the Higher Education Funding Act 1988 to provide supplementation for price movements, covering items such as superannuation expenses, teaching hospitals, special capital projects, grants to open learning organisations and the total limit for certain grants. The total increase on existing amounts in 1998 will be $165,000.

The bill also builds on the streamlined arrangements for applications for remission of debt under the Higher Education Contribution Scheme (HECS) and the Open Learning Deferred Payment Scheme (OLDPS), introduced by the Higher Education Funding Amendment Act (No.1) 1997. It introduces provisions to streamline the administration of the remission arrangements, by deeming applicants to have received notification of a decision on their application within a reasonable period. The amendment also places the emphasis on the applicant to advise the Secretary of the Department of Employment, Education, Training and Youth Affairs of a change of address. The amendment will streamline the remission process for students and simplify the administration of the process.

The bill also amends the Maritime College Act 1978 to ensure that the Australian Maritime College's (AMC) ability to charge fees is linked to the conditions of grants specified in the Higher Education Funding Act 1988. Unlike the statutes of other institutions, the Maritime College Act 1978 currently does not contain any provision to link the charging of fees to the conditions of grant under the Higher Education Funding Act 1988. The amendment will ensure that the Government may take action against the institution for any breach of the arrangements for charging fees to students. This is consistent with conditions already applying to other institutions.

This bill reflects the Government's commitment to a higher education system that is efficient, relevant and of a high quality, striving for excellence and innovation in teaching and research.

I commend the bill to the Senate.

CUSTOMS AND EXCISE LEGISLATION AMENDMENT BILL (No. 1) 1998

The Customs and Excise Legislation Amendment Bill (No. 1) 1998 has three main purposes:

1.to amend the Customs Act 1901 (the Customs Act) to clarify that the Customs Act does not extend to the Australian external Territories,

2.to amend the Customs Amendment Act (No. 1) 1997 to remove the reduced entry threshold for goods imported by the post, and

3.to amend the Australian Postal Corporation Act 1989 to correct an anomaly in the exercise of Customs' powers of examination of mail arriving into Australia from the external Territories.

1. Amendments to the Customs Act

The present definition of Australia in the Customs Act provides that Australia does not include the Territory of Christmas Island or the Territory of Cocos (Keeling) Islands.

The definition of Australia in section 17 of the Acts Interpretation Act 1901 provides that Australia excludes all external Territories except Christmas Island and the Cocos (Keeling) Islands.

The combined effect of these two definitions is that, for the purposes of the Customs Act, Australia does not include any of the external Territories.

The purpose of the new definition of Australia in section 4 of the Customs Act is to state this position with greater clarity than at present. This definition will provide that Australia does not include the external Territories.

The Ashmore and Cartier Islands are a group of islands and reefs 500 nautical miles west of Darwin and 80 nautical miles south of Timor. They are uninhabited islands but are an external Territory of Australia administered by the Department of Transport and Regional Development.

In recent times, there has been an increase in the number of landings by illegal immigrants on Ashmore and Cartier Islands.

Previously, there were very limited legislative powers to deal with these landings under customs, immigration and quarantine regimes.

Amendments were recently made to the Customs Act, the Migration Act 1958 and the Quarantine Act 1908 by the Environment, Sport and Territories Legislation Amendment Act 1997 to enable certain powers under these regimes to be extended to these islands.

The Customs Act presently states that, subject to subsection 6(2), the Customs Act does not extend to the Territory of Ashmore and Cartier Islands. Subsection 6(2) provides that regulations can be made to extend the whole or a part of the Customs Act to these islands.

The present wording of subsection 6(1), however, does not make it clear that the Customs Act also does not extend to all the other external Territories. It is therefore proposed to amend subsection 6(1) to state that the Customs Act does not extend to the external Territories.

In combination with the new definition of Australia, these two amendments will make it clear that the Customs Act does not apply in, or in relation to, the external Territories.

2. Amendments to the Customs Amendment Act.

The Customs Amendment Act (No. 1) 1997 was one of three Acts which introduced the cost recovery regime for the provision of certain import related services.

Under the regime, an amendment was made to the Customs Act to reduce the value limit of goods imported through the Post which require an import entry and which therefore attract an import entry processing charge.

This value was reduced from $1,000 to $250 and this amendment was originally to take effect on 1 April 1998.

A significant number of representations have been received by Government concerning the impact that the decrease in the threshold will have on small to medium business. At present, the Joint Committee of Public Accounts (JCPA) is also conducting the inquiry into internet commerce. Customs is working closely with the Committee to ensure that all relevant data is available on these issues to enable a full consideration of the implications of adjusting existing entry thresholds.

In light of the reporting timeframe of the JCPA, it is therefore not considered appropriate to proceed with any proposed changes to existing entry thresholds until Government has had sufficient time to consider the Committee's findings on this issue. Therefore, it is proposed to remove the original amendment to section 68 of the Customs Act so that the current $1000 entry threshold will continue.

3. Amendments to the Australian Postal Corporation Act 1989

Under the Customs Act, officers of Customs have the right to examine goods imported into Australia by Post. However, a restriction is placed upon Customs' power to examine mail by section 90S of the Australian Postal Corporation Act 1989 (the Postal Corporation Act).

The effect of section 90S is that certain conditions must be satisfied before Customs can examine an article of mail which is in the Post between Australia, and a place outside Australia.

A difficulty has arisen in the application of this provision to mail from the external Territories due to the definition of Australia in the Postal Corporation Act. Under the Postal Corporation Act, Australia includes the external Territories except Norfolk Island.

Under the Customs Act, Australia does not include the external Territories. The effect of this difference in the definition of Australia is that mail that is in the course of the Post between any external Territory and Australia cannot be examined by Customs. Section 90S does not apply to this mail because the external Territories are not a place outside Australia under the Postal Corporation Act.

It is proposed to introduce the new subsection 90S(1A) into the Postal Corporation Act which states that in section 90S, Australia does not include the external Territories.

This will be the same as the definition of Australia in the Customs Act and will enable Customs to examine postal articles from any external Territory where the conditions in section 90S have been satisfied.

4. Minor Amendments

This bill will also make several minor technical amendments to the Customs Act and the Excise Act 1901. These are explained in detail in the explanatory memorandum.

CRIMES (SUPERANNUATION BENEFITS) AMENDMENT BILL 1998

This bill amends the Crimes (Superannuation Benefits) Act 1989 and the Australian Federal Police Act 1979. Those two acts make provision for the making of superannuation orders against corrupt Commonwealth employees, which have the effect of cancelling those employees' Commonwealth funded superannuation benefits. The bill improves the operation of superannuation orders and makes provision for a more efficient recovery of benefits that have been paid by Commonwealth schemes.

The bill allows superannuation benefits that have been rolled-over or transferred from Commonwealth schemes to be traced and recovered from roll-over institutions. That closes a gap in both acts which has allowed some roll-overs to escape the operation of superannuation orders.

The bill also provides a mechanism by which Commonwealth employees charged with or convicted of corruption offences may have their employer-funded superannuation benefits temporarily suspended. Those amendments bring the Crimes Superannuation Benefits Act in line with the Australian Federal Police Act which already makes provision for the suspension of benefits of AFP members and staff members.

Where a person has been charged with or convicted of a corruption offence, the Minister may make a written direction to the accused's superannuation fund, the effect of which is to temporarily suspend the accused's employer-funded superannuation benefits. The suspension prevents the dissipation of superannuation benefits which may later become the subject of a superannuation or recovery order. Suspension or "freezing" of employer benefits preserves the benefits in the Commonwealth scheme until the finalisation of superannuation order proceedings. A person's own contributions are not affected by the suspension and may be withdrawn or cashed in accordance with the cashing restrictions of the superannuation law. The suspension expires after 12 months, or sooner, for example, if the person is acquitted of the offence or if the charges are withdrawn or otherwise not proceeded with.

The bill also authorises the Official Trustee to take charge of and sell restrained property in satisfaction of a superannuation recovery order. Those provisions are modelled on similar provisions in the Proceeds of Crime Act 1987. The Crimes Superannuation Benefits Act has always made provision for restraining orders but until now, there has been no mechanism to dispose of restrained property to discharge superannuation order debts.

The bill simplifies the way in which information is provided to a court that certifies the extent of a person's superannuation benefits in superannuation order proceedings. It seeks to relax the rules concerning the admissibility of certain documents.

Finally, the bill facilitates the provision of information by superannuation entities concerning Commonwealth employees to the Commonwealth.

The extension of superannuation recovery orders to roll-overs, the suspension of employer-funded benefits of persons charged with or convicted of corruption offences, and the new role of the Official Trustee, fortify the operation of the two acts and ensure that corrupt Commonwealth employees either do not receive or retain the benefit of Commonwealth funded superannuation. That is consistent with the underlying policy of superannuation orders that a Commonwealth employee who discharges his or her duties in a corrupt way has failed to fulfil a fundamental condition of employment and by doing so, forfeits his or her entitlement to publicly funded superannuation. Under the two acts, a person is entitled to a refund of his or her own contributions and interest and these amendments do not disturb that position.

The amendments are expected to have a minor and unquantifiable financial impact on Government revenue.

I commend the bill to the Senate.

AUSTRALIAN CAPITAL TERRITORY (PLANNING AND LAND MANAGEMENT) AMENDMENT BILL 1997

The purpose of this Bill is to increase the attractiveness of the Australian Capital Territory to potential investors by removing the perceived disincentive to business and other investment, brought about by the limit of land tenure to 99-year estates, as distinct from freehold title enjoyed elsewhere in Australia.

The strengthening of land tenure security in the ACT for both residential and business purposes will deliver on an important election commitment.

Section 9 of the Seat of Government (Administration) Act 1910 provides that no crown lands in the Territory may be sold or disposed of for freehold estates.

The Australian Capital Territory (Planning and Land Management) Act 1988 provides for land in the ACT to be National Land or Territory Land. National Land is land so declared by the Commonwealth Minister as land used or intended to be used by or on behalf of the Commonwealth. Land that is not National Land is Territory Land. The ACT Government manages Territory Land on behalf of the Commonwealth and may grant, dispose of, acquire, hold and administer estates in Territory Land.

The ACT Government has sought an amendment to the Australian Capital Territory (Planning and Land Management) Act 1988 to enable it to issue leases for a maximum term of 999 years. The Chief Minister, Mrs Carnell, has cited the 99-year limit as antiquated and unduly restrictive. ACT business representatives have supported the proposed amendment.

Effect of the Bill

The proposed amendment will increase the maximum permissible limit for the grant of new estates in Territory Land to 999 years. The Bill will not provide for automatic extension of existing estates. A leaseholder seeking a term longer than 99 years will need to apply to the ACT Government for a new grant.

The ACT Government has indicated that only a modest administrative charge will apply to the grant of new leases to existing leaseholders, provided no terms of the lease, other than the lease period, are changed.

The proposed amendment removes the reference to `or such longer period as is prescribed' so that no terms of estate greater than 999 years will be possible.

The regulations currently applicable which relate to 999-year leases granted for tertiary education or church purposes prior to the introduction of self government in the ACT, will be unaffected by the proposed amendment.

The Act is proposed to take effect upon receiving the Royal Assent.

Financial impact

The proposed amendment will have no direct impact on Commonwealth revenue or outgoings. However, it is intended that the amendment will bring positive effects to the ACT economy by increasing the Territory's attractiveness to investors.

LAW OFFICERS AMENDMENT BILL 1997

This bill seeks to amend the Law Officers Act 1964 to vary the terms and conditions of service for the occupant of the office of Solicitor-General for the Commonwealth.

The terms and conditions of service for the Solicitor-General are similar to those for a judge of the Federal Court of Australia and include eligibility for a judge's pension and payment in lieu of unused long leave on the same basis as for a judge.

Section 16 of the act applies the Judges' Pensions Act 1968 to the Solicitor-General as if he or she were a judge, albeit with some modifications as to entitlements.

Section 16A of the act provides for a payment to the Solicitor-General on retirement in lieu of unused long leave. The Government does not consider it appropriate that these arrangements apply to the occupant of the office of Solicitor-General.

The term of appointment of the former Solicitor-General expired on 31 December 1997 and it is proposed that the new Solicitor-General receive superannuation and leave entitlements similar to those applying to a senior member of the Australian Public Service, rather than those applying to a judge.

It is proposed, therefore, to amend the Law Officers Act to remove the current entitlement to a judge's pension and payment in lieu of unused long leave for future appointees to the office of Solicitor-General.

Entitlements already accrued by the former Solicitor-General will be preserved under the bill.

Over time, the amendments will also realise some savings to the taxpayer as a result of a reduction in benefits paid from the Consolidated Revenue Fund.

I commend the bill to the Senate.

Debate (on motion by Senator Chris Evans) adjourned.

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