Senator IAN CAMPBELL (9:33 AM) —I table the explanatory memorandum and move:

That this bill be now read a second time.

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

Leave granted.

The speech read as follows—

This bill amends sections 3B and 15A of the Crimes Act 1914.

State and Territory fine enforcement laws are applied to federal offenders by section 15A of the Crimes Act 1914. In recent years, a number of States have enacted new fine enforcement procedures that may not be covered by section 15A. It has therefore become necessary to update the wording of section 15A.

The New South Wales Fines Act 1996 provides a good example of the diversity of fine enforcement mechanisms that are increasingly becoming available under State and Territory law. The New South Wales act provides for a series of steps where a person defaults in payment of fine. After warnings have been given, a person's driver's licence is to be suspended and then cancelled. A person's vehicle registration may also be cancelled. If these measures are unavailable or ineffective, civil enforcement action may be instituted, such as the seizure of property or the garnishment of wages. If the fine remains unpaid, community service may ordered. Imprisonment as the option of last resort for non-compliance with a community service order.

The wording of the existing section 15A of the Commonwealth Crimes Act does not make it clear that State and Territory laws providing for licence or registration cancellation, or civil enforcement action, apply to federal offenders. Without the amendments proposed by this bill, States and Territories could be uncertain as to the fine enforcement procedures available in respect of federal offenders.

The amendments to section 15A ensure that States and Territories can continue to apply the procedures they would apply in the enforcement of fines against State or Territory offenders, to federal offenders.

However, the requirements of the Commonwealth Constitution necessitate special rules for federal offenders in one respect. Some State and Territory laws allow serious penalties, such as community service orders and imprisonment, to be imposed for fine default on the order of a justice of the peace or an administrative agency.

Under the separation of powers requirements of the Commonwealth Constitution, such orders may only be made in respect of a federal offender by a court exercising federal judicial power. Under the amended section 15A, there will be a special procedure for the making of such orders against a federal offender by a magistrate. Those orders will then feed back into the normal State or Territory enforcement system.

The amendments to section 3B of the Crimes Act proposed in this bill will ensure that administrative arrangements, made between the Commonwealth and each State and Territory under the Crimes Act, are capable of extending to new enforcement procedures. Existing arrangements will continue in force.

In summary, this bill is designed to ensure that the full range of State and Territory fine enforcement procedures are available in respect of federal offenders. This will maximise the likelihood that a fine is actually paid, rather than being `cut out' by the imprisonment of a fine defaulter, at the taxpayer's expense.

The financial impact of the amendments is not quantifiable. The amendments will not require additional funding, but will facilitate the use of more efficient fine enforcement procedures.

I commend the bill to the Senate.

Ordered that the further consideration of the second reading of this bill be adjourned to the first day of sitting in the winter sittings in accordance with standing order 111.