Senator NEWMAN (Family and Community Services; Minister Assisting the Prime Minister for the Status of Women) (5:10 PM) —I table a revised explanatory memorandum relating to the Human Rights Legislation Amendment Bill (No. 1) 1999 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—

INDUSTRY RESEARCH AND DEVELOPMENT AMENDMENT BILL 1998

This bill amends the Industry Research and Development Act 1986 and contains provisions to streamline the administration of the research and development tax concession scheme, with the aim of reducing compliance costs for companies. It responds to the need for such measures identified in the Government's industry statement "Investing for Growth" last December.

The bill will make the registration process easier for companies that wish to claim the tax deduction. The period for making an application for registration will be increased by 4 months, to a total of 10 months from the end of the year of income for which the company seeks registration. This will be more convenient for companies with normal accounting periods, giving them more time to prepare their applications and shifting the deadline away from busy periods on the calendar.

The bill also addresses some rigidities in the procedures for company registration.

The proposed changes will allow the Industry Research and Development Board a limited discretion to consider some late applications for registration and to correct minor errors made by companies in their registration applications. At present, even if there are exceptional circumstances, missing a deadline or getting the company name wrong in the application can cost a company its access to the Research and Development tax concession. This bill will give the Board more flexibility to treat such cases based on the specific circumstances attaching to each.

The discretions being given to the Board will, however, be limited in such a way that they will not weaken those provisions of the act designed to prevent retrospective access to the tax concession.

In addition, this bill will give the Board the flexibility to require different levels of information from different classes of applicant. This will enable the Board, for example, to reduce the information requirement, and hence the compliance cost of the scheme, for companies undertaking smaller dollar amounts of research and development.

Companies eligible for approval to undertake up to ten per cent of their research and development activities overseas will also benefit from this bill. The proposed change will make the effective date for any Board approval the date on which the application is received. At present, any expenditure a company incurs between the date of application and Board approval—which can take some months—is not eligible for a concessional tax deduction. This bill will fix that situation.

The bill also contains a raft of minor measures aimed at improving the administration of the research and development tax concession scheme consistent with improving its integrity and efficacy.

These minor measures include clarification of the Board's powers in the areas of exploitation of R&D results and overseas expenditures on R&D; administrative improvements to the Registered Research Agency scheme; and housekeeping matters relating to Board appointments, sharing of information, and recruitment of consultants.

I commend the bill.

PETROLEUM RETAIL LEGISLATION REPEAL BILL 1998

The Petroleum Retail Legislation Repeal Bill 1998 is a key element of the Government's strategy for the deregulation of the petroleum products industry.

All sectors of the community benefit from the deregulation package, from the small service station operator who benefits from the real protections of the strengthened Oilcode, to the consumer who benefits through greater competition at the pump, and to the refinery worker whose oil company is better able to meet the competitive threat of imports.

Repeal of the Petroleum Retail Marketing Sites Act 1980 and the Petroleum Retail Marketing Franchise Act 1980 will remove the artificial barriers to competition created by government regulation.

By removing the impediments to competition, downward pressure will be placed on petrol prices, particularly in country areas.

Greater competition should, over time, reduce the disparity in petrol prices between the city and the country, benefiting consumers, farmers and rural businesses alike.

In removing the barriers to competition, the Government has taken heed of the issues that saw the acts introduced in the first place, and addressed them with meaningful measures that preserve the full force of competition.

In pursuing these necessary reforms, the Government has been mindful of its commitment to maintaining small business protection in the sector and has strengthened it—providing real and meaningful protections for small service station operators.

Since coming to office we have strengthened small business protections against unconscionable conduct, re-drawing the relationship between large and small firms so that it is more fair and equitable.

Placing the strengthened Oilcode in regulation under Part IVB of the Trade Practices Act 1974 means that smaller participants in the industry will have legally enforceable protection from exploitation by larger firms.

The new Oilcode will ensure that operators have a thorough understanding of their rights and obligations to their suppliers.

It will also provide a mechanism where disputes can be settled expeditiously, at low cost and to all parties' mutual satisfaction.

The principles of the new code were developed through many months of hard negotiation by the industry participants, facilitated by the Government through the appointment of the Hon Andrew Rogers QC to chair negotiations.

In light of our commitment to regulatory efficiency we have given the industry players the opportunity to determine the regulatory framework within which they operate.

Clearly a negotiated outcome would serve the industry best and create an environment of co-operation within retail networks.

While some issues could not be resolved by mutual agreement of the industry participants, the Government welcomed the debate on these issues, and drew upon the negotiations in resolving the outstanding matters.

The result is a set of draft principles that cover the major issues impacting on petroleum retailing, and addressing them in a way that recognises the needs of all industry participants.

Apart from the very real progress that was made on finalising the Oilcode, the Government was heartened by the cooperation and good spirit shown during the negotiations, and by the recognition of all the parties that some agreement must be reached for the petroleum retail sector to be sustainable.

To further facilitate agreement amongst the industry, the Government intends to release a draft Oilcode in mid-December for consideration by interested parties.

The Government will also refer this bill to a Senate legislation committee. Issues of concern to smaller operators, such as open access to terminals, can be considered by the Senate committee.

The deregulation of the petroleum products market is but one element of a strategy to address the issues facing the downstream petroleum products sector in Australia.

The Government has already implemented a number of reforms to make the petroleum market more competitive.

Prices surveillance and the setting of a maximum wholesale price have been discontinued, as they had the perverse effect of discouraging permanent discounting below the maximum.

In return, all four oil majors now provide open access to their terminals. This means customers for bulk fuel supply are able to directly access terminals for supply, permitting independent operators, large customers and groups such as farmers cooperatives to access cheaper fuel.

Mediation and arbitration is available to resolve disputes.

The oil majors are committed to support an independent price monitoring system for 100 country towns which will be monitored by the Australian Automobile Association.

A cooperative effort is needed, from all of those with an interest in the industry's future, to work together to better enable this important sector of the economy to meet the challenges of the twenty first century.

The Government is playing its part in this, having announced that an industry action agenda will be developed to address the issues facing the downstream petroleum products sector in a holistic way.The deregulation package, of which the repeal of the Sites and Franchise Acts is but a part, is a down-payment on the Government commitment to all participants in this industry, that the Government will respond to the issues the industry faces.

The cooperation within the industry that has led to the finalisation of the principles of the strengthened Oilcode reinforces the Government's belief that participants can look beyond their own interest, and towards the future and an improved operating environment for all.

The industry action agenda builds upon this, and will deliver Australia an efficient and sustainable petroleum products sector for many years to come.

It is further demonstration that the Liberal and National Parties are the only groups with the commitment to deliver real reforms in the petroleum sector.

Over the last 30 years, there have been a number of inquiries into the petroleum industry. The only two Governments which have implemented measures in response to those inquiries are the Fraser Government, which in 1980 introduced the Fife reforms, and the Howard Government, which has delivered this package of reforms.

On the other hand, the Australian Labor Party, over 13 years in government, comprehensively failed to do anything to introduce similar reforms.

Reforms which are about making the Australian petroleum products industry work for all Australians, be they producers, retailers or consumers of petroleum products.

Reforms which repeal legislation that has out-lived its usefulness, while still addressing the issues that made the legislation necessary in the first place.

Reforms which deliver upon the Government's election commitment to reform the petroleum market, but do so in a way that remains sensitive to the needs of smaller players in the industry, who often are not in a position to adequately protect themselves.

This bill, and the other aspects of the deregulation package, are about fairness—fairness for the oil companies to be able to meet the challenges of the market, fairness to the small service station operator when dealing with their oil company, and fairness to the consumer, who will reap the dividends of greater competition.

I commend this bill to the House.

HUMAN RIGHTS LEGISLATION AMENDMENT BILL (NO. 1) 1999

Introductory Remarks

The Human Rights Legislation Amendment Bill 1997 lapsed before the Senate with the calling of the recent federal election. I am now pleased to reintroduce the bill which implements a number of significant and important changes to the administration, functions and procedures of the Human Rights and Equal Opportunity Commission (the Commission).

These reforms will enhance the promotion and protection of the human rights of all Australians and improve the efficiency and effectiveness of the Commission.

The first major reform introduced by this bill is the Government's response to the High Court's decision in Brandy v The Human Rights and Equal Opportunity Commission (1995) 127 ALR 1.

In that case the enforcement mechanism in the Racial Discrimination Act 1975 was found to be unconstitutional on the basis that the Commission, as an administrative body, could not make a final determination as to the rights of the parties to a dispute.

This decision also affected the Sex Discrimination Act 1984, the Disability Discrimination Act 1992, and the Privacy Act 1988.

As a result of that decision, an interim solution was introduced by the previous Government. However, it was inefficient and cumbersome.

The bill therefore proposes to maintain the Commission's conciliation role, but to provide the parties with direct access to the Federal Court should conciliation prove unsuccessful. This will enable the parties to obtain a timely and enforceable determination of their respective rights.

In order to ensure the Court is accessible the bill also includes a number of additional reforms. The Court will be able to adopt informal procedures as it will not be bound by technicalities or legal forms.

In addition, the Court will be able to make Rules of Court which delegate any of its powers to judicial registrars (apart from the power of granting interim injunctions).

The second major reform involves the consolidation of the three complaint handling schemes under the Sex, Race and Disability Discrimination Acts into one uniform scheme.

The bill provides that all complaints of unlawful discrimination under these acts, and complaints involving alleged breaches of human rights and equality of opportunity will now be made under the Human Rights and Equal Opportunity Commission Act 1986.

The President will assume responsibility for all complaint handling under the new uniform scheme while Commissioners are to be given an amicus curiae function to argue the policy imperatives of their legislation before the Federal Court.

The third major reform made by this bill will be to clarify the lines of management responsibility, facilitating timely decision making and providing for the better administration of the Commission.

The President is to become the Chief Executive Officer of the Commission, and will assume responsibility for those functions currently conferred on the Commission itself.

Finally, the bill also implements a number of changes suggested by the Senate Legal and Consti tutional Legislation Committee when it considered the earlier draft of the bill in 1997.

Amongst others, new provisions now deal with:

- complaints against the President, Commission or a Commissioner;

- the withdrawal and termination of complaints;

- the replacement of a representative complainant; and

- the amendment of a complaint.

The amendments made by this bill are complex, primarily because the different complaint handling provisions in three schemes have been amended, and a single uniform scheme included in the Human Rights and Equal Opportunity Commission Act 1986.

In making these changes, the Government has taken steps to ensure that the new procedures represent best practice.

Notably, the bill maintains the Commission's role in conciliation, as this step in the process has proved most effective. Indeed, most complaints do not proceed past this stage.

The bill also clearly delineates the Commission's function of impartially attempting to conciliate complaints from the Commissioners' advocacy role in promoting the protection of human rights.

These, together with the new management structure of the Commission, are important and timely reforms.

Debate (on motion by Senator Gibbs) adjourned.

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