Senator TROETH (4:40 PM) —I table revised explanatory memoranda relating to the Australian Security Intelligence Organisation Legislation Amendment Bill 1999 and the Workplace Relations Legislation Amendment (Youth Employment) Bill 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—

AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION LEGISLATION AMENDMENT BILL 1999

The Australian Security Intelligence Organisation Legislation Amendment Bill will amend the Australian Security Intelligence Organization Act 1979 and other legislation to bring ASIO's powers up to date, particularly in relation to modern communications technology. The bill will also allow ASIO to have access to certain financial information already available to Commonwealth and State law enforcement agencies.

The bill was introduced in the House of Representatives on 25 March 1999 and was referred by the Attorney-General to the Parliamentary Joint Committee on the Australian Security Intelligence Organization on 13 April 1999. The report of the Committee on the bill was tabled in the Senate and the House on 13 May 1999. The Committee's familiarity with national security matters and its expertise made it the most appropriate body to conduct this review. I take this opportunity to thank the Committee for its informed and considered examination of the bill.

The Committee found that the bill achieves an appropriate balance between the public interest in ensuring that ASIO has access to the surveillance tools and techniques needed to safeguard Australia against security threats in the modern world and the private interest that ASIO's activities should not impinge unduly on individual rights and liberties.

The Government has accepted all but one of the Committee's recommendations. There is also one other recommendation, concerning eligibility for membership of the Committee and not related to the content of the bill, which requires further consideration. I will refer again to the Committee's report later in my speech.

The House of Representatives passed the bill on 11 August with two amendments proposed by the Opposition. The acceptance of these amendments is a reflection of the bipartisan consideration given to the bill by the Parliamentary Joint Committee and the House.

I now turn to the bill.

The Australian Security Intelligence Organisation is the Commonwealth's security agency. It operates under statute to collect, evaluate and communicate intelligence relevant to the protection of Australia and its people from a number of specified activities, including: espionage, politically motivated violence, promotion of communal violence and acts of foreign interference. Its role is to inform and advise Australian governments, including police services, about those activities.

This bill is directed at ensuring that ASIO remains capable of providing timely intelligence and advice to governments. ASIO is not a police force itself, for instance having no powers of arrest.

The bill results from a periodic internal review of the ASIO Act and evolving changes in ASIO's operational environment, and in particular the impact of technological developments on intelligence gathering. Examination of the bill will reveal that it will not extend ASIO's functions but simply enable the Organisation to meet its statutory responsibilities in more efficient and effective ways. The bill is not a response to the challenges posed by a particular event or threat such as the Year 2000 Olympics, notwithstanding that ASIO will have an important role to play in ensuring the safety of the athletes, officials and spectators attending those games. Rather, the bill results from a considered examination of ASIO's capacity to meet its ongoing responsibilities to government in a rapidly changing information environment.

In bringing this bill before the Senate, I have in mind that it is no simple or easy thing to achieve a balance between the rights of individual persons and the preservation of national security. But, in the final analysis, national security and personal safety are inter-connected.

The recent terrorist attacks on US diplomatic missions in East Africa illustrate the human cost if security defences are breached. The Government is committed to ensuring that ASIO will be ready to play its part in domestic and international arrangements against terrorism.

Australian Security Intelligence Organisation Act 1979

The bill contains several provisions intended to improve ASIO's ability to access information stored in computers. These amendments are necessary given that information relevant to security is frequently stored as computer data. This is not a totally new power. ASIO is already able to examine computer information relevant to security under search warrants and telecommunications interception warrants. The new computer access provisions will allow ASIO to obtain access through other means which at present cannot be used.

The bill makes provision for ASIO to do certain things which may be necessary in order to execute a warrant authorising it to access computer data. However this will be subject to a strict limitation that a warrant does not permit ASIO to do any thing that interferes with the lawful use of a computer or causes loss or damage to other persons lawfully using the computer.

The new computer access warrant, subject to renewal, will remain in force for a maximum period of 6 months which is the same period that applies to telecommunications interception warrants.

The bill will also permit the issue of warrants to ASIO authorising the use of tracking devices. The use of tracking devices will permit more efficient use of resources. In addition, these amendments are necessary as several Australian states are in the process of legislating to regulate the use of such devices by police and other members of the community. These amendments will permit ASIO to use a tracking device under warrant.

Provision is made for ASIO to be authorised to enter property and enter or alter an object for the purpose of installing, using and maintaining a tracking device. The new warrant provisions are similar to the present section of the ASIO Act dealing with the use of listening devices.

All the proposed amendments are within the existing accountability framework.

The bill will also provide ASIO with a statutory authority to enter premises to remove a listening device or a tracking device which has been installed under warrant while a warrant is in force or within 28 days of it ceasing to be in force or, if the device is not recovered in that period, at the earliest reasonably practicable time. This provision is intended to provide for those situations where it is not possible for ASIO to recover a device undetected during the warrant period.

The Minister will also be given the power to issue warrants permitting ASIO to examine an article being delivered by a delivery service provider.

This amendment reflects the growth of such services which have lessened the value of the present warrant power to inspect postal articles which is restricted to articles carried by Australia Post.

The bill makes a number of amendments to the provisions dealing with search warrants. These amendments clarify the test for the issue of a search warrant and ASIO's authority to use a computer found on premises being searched. The bill also lengthens the maximum period a warrant may remain in force to 28 days, although only one search is authorised, and permits the Minister to defer the commencement of a warrant for up to 28 days.

Other amendments to the ASIO Act deal with the Minister's power to authorise ASIO to collect foreign intelligence in Australia. First, the bill extends the authority of the Minister to issue warrants for that purpose by taking into account the new categories of warrant which are introduced elsewhere in the bill. That amendment will maintain the present connection in the ASIO Act between warrants for the purpose of collecting foreign intelligence in Australia and warrants for the purpose of collecting intelligence relevant to security. Secondly, the bill will enable the Minister, based on advice from relevant Ministers, to authorise ASIO to collect foreign intelligence by means which are not otherwise regulated under relevant warrant provisions, for example by the use of human agents.

Another amendment dealing with warrants will broaden the range of warrants which the Director-General may issue in an emergency. As is currently the case, such warrants may remain in force for no longer than 48 hours and the Director-General must immediately notify the Minister.

The bill will also provide the Director-General with a discretion to charge a fee to recover all or part the cost to ASIO of providing advice or a service to a person at that person's request. It is envisaged that a fee may be imposed where, for example, ASIO provides protective security advice to a State agency under paragraph 17(1)(d) of the ASIO Act. ASIO will not charge fees for the performance of its core function of communicating security intelligence. A further amendment to the ASIO Act will permit ASIO to provide a security assessment for state purposes in relation to the 2000 Olympics or Paralympics directly to a State or an authority of a State. This change will achieve administrative efficiencies in the communication of such assessments without extending ASIO's responsibilities. Because this amendment is specifically related to the Olympics, there is a sunset clause.

The amendments also revise the penalty provisions in the ASIO Act to permit the calculation of pecuniary penalties according to the formula set out in the Commonwealth Crimes Act.

Financial Transaction Reports Act 1988

The bill amends the Financial Transaction Reports Act 1988 to give ASIO access to information on certain financial transactions that are reported to the Australian Transaction Reports and Analysis Centre (AUSTRAC).

The amendments allow the Director of AUSTRAC to authorise ASIO to have access to the AUSTRAC database of reportable transactions in order to be able to follow the money trail (as happens in the investigation of criminal activity) and identify the financiers of major crime.

This amendment means that ASIO will be able to follow the money trail associated with activities that are intended to harm Australia's security.

Like organised crime, activities that are prejudicial to Australia's national security are likely to be connected with concealed movements of money, including movements of money into Australia. It is entirely appropriate that ASIO should be able to access such potentially important information which is already available for law enforcement. ASIO's authority to use and communicate FTR information is regulated by the amendments. In addition, access to the AUSTRAC database will be controlled by a memorandum of understanding agreed between the Director-General of Security and the Director of AUSTRAC. ASIO is also required to comply with ministerial guidelines regarding the performance of its functions. Amongst other matters, those guidelines cover ASIO's handling of personal information. The guidelines are being reviewed in consultation with the Privacy Commissioner to ensure that information obtained from the AUSTRAC database is properly handled within ASIO.

The Inspector-General of Intelligence and Security will monitor ASIO's compliance with the Financial Transaction Reports Act, the memorandum of understanding and the guidelines; and, to ensure proper accountability will report to the Attorney-General on those matters.

Taxation Administration Act 1953

The amendments to the Taxation Administration Act will permit the Tax Commissioner to disclose tax information to ASIO. This provision will put ASIO into the same position as law enforcement agencies who may already receive tax information from the Commissioner.

This amendment will also assist strengthen ASIO's ability to conduct investigations into activities which involve concealed financial transactions. Counter espionage investigations are one example.

ASIO's use of tax information will be controlled by a memorandum of understanding between the Commissioner of Taxation and the Director-General of Security, as well as the strict secrecy provisions of the Taxation Administration Act, and will be monitored by the Inspector-General of Intelligence and Security.

Other consequential amendments

The bill contains a schedule of consequential amendments to other legislation arising from the decision to change the spelling of `Organisation' in ASIO's title.

Committee report

I would now like to return briefly to the report on the bill tabled by the Parliamentary Joint Committee.

In line with the Committee's recommendations, the explanatory memorandum was revised to make clear that the amendments to section 25 are not intended to weaken the test to be applied by the Attorney-General in issuing a search warrant.

In response to another recommendation by the Committee, the Attorney-General obtained advice confirming that the original form of words in the bill would not allow ASIO to add, delete or alter data in a target computer, except for the purpose of gaining access to the computer. Nevertheless, the Government accepted that this issue could be clarified and has revised the explanatory memorandum to address the Committee's concerns, as well as the amendments made by the House.

The Government has also agreed to the Committee's recommendations that the memoranda of understanding relating to ASIO's access to tax and FTR information be referred to the Committee for examination before coming into effect. Finally, the Government has agreed that the Inspector-General of Intelligence and Security will report to the Attorney-General and the Leader of the Opposition on ASIO's recovery of listening and tracking devices outside the normal warrant period.

In conclusion, I remind the Senate that ASIO performs functions which are fundamental to any responsible government and that, although many of its operations must be secret, ASIO is nevertheless answerable to ministers and through them to the Parliament and the people. I also remind the Senate of the mechanisms available to ministers and the Parliament to ensure ASIO acts lawfully and properly, including the Parliamentary Joint Committee and the Inspector-General of Intelligence and Security. Honourable Senators may continue to have confidence in the measures.

TAXATION LAWS AMENDMENT (POLITICAL DONATIONS) BILL 1999

The bill will implement the Government's response to the taxation-related recommendations of the Joint Standing Committee on Electoral Matters, following its inquiry into the conduct of the 1996 Federal Election. The bill was introduced as the Taxation Laws Amendment (Political Donations) Bill 1998.

This bill complements other legislation which implements the Government's response to the other recommendations of the Joint Standing Committee—the Electoral and Referendum Amendment Bill (No. 2) 1998, now before the Parliament, and the Electoral and Referendum Amendment Act 1998.

Currently, the income tax law allows a non-corporate taxpayer to deduct a contribution (which includes a membership subscription as well as a gift) of $2 or more to political parties registered under Part XI of the Commonwealth Electoral Act 1918. However, a taxpayer cannot claim a deduction for contributions of more than $100 in any income year. Testamentary gifts or contributions are not deductible.

The Joint Standing Committee recommended that the income tax law be changed so that the maximum annual tax deductibility threshold for political donations be increased from $100 to $1500, and that companies be allowed to make tax deductible donations. The word "donation" is a general term which covers contributions as well as gifts. The Government has accepted that recommendation.

The Joint Standing Committee also recommended that the income tax law be changed so donations to an independent candidate at a Federal or State election are tax deductible, at the same level as donations to registered political parties.

The Government has also accepted this recommendation. This will provide equivalent treatment for donations to independent candidates and members and political parties.

To implement these recommendations the bill repeals the existing provisions of the Income Tax Assessment Act 1997 that apply to contributions to political parties and inserts a new Subdivision that applies to both contributions to political parties and gifts to independent members and candidates.

The bill also allows taxpayers to make tax deductible contributions to political parties that are registered under State or Territory electoral legislation. This expansion will complement the tax concession afforded to independent candidates and members.

The amendments made by the bill will apply to contributions to political parties and gifts to independent candidates and members made on or after 1 July 1998. This was the basis on which the bill was first introduced.

Full details of the measures in the bill are contained in the explanatory memorandum. I commend the bill.

WORKPLACE RELATIONS LEGISLATION AMENDMENT (YOUTH EMPLOYMENT) BILL 1999

The bill will amend the Workplace Relations Act 1996 and the Workplace Relations and Other Legislation Amendment Act 1996 to remove the uncertainty surrounding junior rates of pay by exempting junior rates, on a permanent basis, from the age discrimination provisions of those acts. The bill will also exempt existing types of trainee wage arrangements to clarify that they are not to be considered to discriminate on the basis of age. The bill will amend the principal object of the Workplace Relations Act to include within its scope the protection of young people's competitive position in the labour market, the promotion of youth employment, youth skills and community standards, and the reduction of youth unemployment. These will also be objects to which the Australian Industrial Relations Commission must have regard in making and varying awards. In particular, the bill will require the Commission to further these objects by including junior rates in awards that apply to work that is or may be performed by young people, where the Commission determines it appropriate. A similar requirement will apply to award simplification. The amended bill makes it clear that the Commission is to proceed on a case by case basis when considering junior rates, and that the onus is on the applicant to demonstrate that an award should be varied to include, remove or vary junior rates.

Senators who are concerned about the welfare of the young employed and of the young unemployed should match that concern with support for this bill. The bill is about supporting and enhancing the job prospects of young people. It does this by allowing the existing system of junior rates to be retained, and by allowing junior rates to be made more widely available.

Junior rates have been a feature of the wages system in Australia since early this century. Age-based junior rates of pay are set as a percentage of the adult rate, and usually increase annually until adult rates are payable. Over 400,000 young people under 21 are paid junior wages—this represents over half of all employed young people.

Junior rates in awards and agreements have been under legislative threat since 1993, long before this Government took office. Under legislation intro duced in 1993 and 1994, junior rates would have had to be removed from awards from 22 June 1997. There is now widespread recognition that this legislative action was a mistake. The full implications of the legislation were not properly understood by its proponents at the time it was enacted.

Since 1993 employers and other groups have waged a vigorous campaign to have the legislative threat against junior rates removed. The Coalition has consistently supported this campaign because it has recognised that the abolition of junior rates would threaten the jobs of young people. For that reason we opposed the 1993 legislation, and supported the retention of junior rates.

On coming to government the Coalition introduced the Workplace Relations and Other Legislation Amendment Bill 1996 into this Parliament, which sought to protect youth jobs by allowing junior rates to continue indefinitely. However, following discussions with the Australian Democrats when the bill was before the Senate, the Government agreed as a temporary measure to limit the exemption to a further three years, and to put in place a mechanism for the Australian Industrial Relations Commission to review the feasibility of abolishing junior rates of pay. This reflected a compromise position only agreed to by the Government as a way of avoiding the legislated removal of junior wages. The Coalition agreed to the review on the clear understanding that our policy would continue to be for the retention of junior rates and that we would seek a mandate for this legislation at the next election. The mandate was obtained, and this bill will implement it.

Under the existing provisions of the Workplace Relations Act, the continuation of junior rates in awards cannot be guaranteed after 22 June 2000. Until then, junior rates in all awards are exempted from the provisions of the anti-age discrimination requirements of the act. But this across-the-board exemption that protects junior rates expires on 22 June 2000.

A number of Senators who spoke against an earlier version of this bill said that the bill should not have been brought forward until after the tabling of the Australian Industrial Relations Commission report on junior rates. Their initial opposition to the bill appears to have been determined by timing and process issues, rather than by the merits of the bill itself. This perceived difficulty has been resolved. The AIRC has made its report. The Parliament can now proceed to assess the Youth Employment Bill on its merits.

In summary, the Australian Industrial Relations Commission's report found that junior rates were important for getting young people into jobs, that none of the alternatives put to the Inquiry were feasible replacements for junior rates, that any move to abolish junior rates would cost young people jobs, and that the introduction of adult wages at 18 would have significant disemploying effects.

The report of the Australian Industrial Relations Commission comprehensively adds to the case in favour of junior rates. It is a case that is already overwhelming. Any move to abolish junior rates would, in light of the Commission's report, be a highly irresponsible move, particularly given the delicate labour market situation that confronts young people. This should weigh heavily in the Senate's consideration given that it was legislative amendments made in this Senate in 1996 which initiated the process whereby the Commission reported to this Parliament.

The findings of the Junior Rates Inquiry make it essential for the Government to now move to correct the legislative mistake made in 1993. It is now possible not only to remove the threat to junior rates, but also to include in the Workplace Relations Act provisions that recognise the need to ensure that young people are competitive in the labour market. The amended bill will ensure that for the first time, the Australian Industrial Relations Commission will be required to exercise its functions in ways that promote youth employment and assist in reducing youth employment.

The Government has had three key policy objectives in relation to junior rates. The first is to permanently exempt existing junior wage rates from the age discrimination requirements of the Workplace Relations Act 1996. This would reverse the effect of the 1993 legislation. A permanent exemption is essential to protect the jobs of more than 220,000 employees in the retail industry alone, which are at risk after June 2000 when the current temporary exemption expires.

The bill will achieve this objective. It will also provide certainty for trainee wages (including wages for traineeships, apprenticeships, cadetships, and similar work-based training arrangements) by permanently exempting from age discrimination requirements existing types of trainee wages to clarify that they are not to be considered to be age discriminatory. This is intended to protect existing trainee wage arrangements without opening up the door for new forms of age discriminatory trainee wages.

The second policy objective was to introduce for the first time new objects into the Workplace Relations Act 1996 dealing specifically with youth employment and youth unemployment. The bill achieves this objective. For example, the bill will insert an additional object and requirements under Part VI—Dispute Prevention and Settlement—of the Workplace Relations Act. These will require that the Commission's powers and functions in relation to making and varying awards be performed and exercised in a way that protects the competitive position of young people in the labour market, promotes youth employment, youth skills and community standards, and assists in reducing youth unemployment.

The third policy objective was to enable junior rates to be included by the Commission in awards and industries where they do not currently apply, including during the award simplification process. The bill implements this objective. As well as allowing junior rates to be included in awards, the bill amends item 51 of Schedule 5 of the Workplace Relations and Other Legislation Amendment Act 1996, which deal with award simplification. In reviewing awards under item 51, the Commission will be required to ensure that if awards apply to work that is or may be performed by young people, they protect young people's competitive position in the labour market, promote youth employment, youth skills and community standards, and assist in reducing youth unemployment by including junior rates of pay where the Commission determines that this is appropriate. These and other junior rates issues are to be considered by the Commission on a case by case basis, taking into account the particular circumstances of each award. The bill also requires that when applications to introduce, remove or vary junior rates in awards are being considered by the Commission, the onus to demonstrate that the change should be made will be on the applicant. Such applications will be considered by the Commission under the new objects of the act, and the Government considers that applicants seeking to preserve or extend junior rates will be able to make out a strong case for their position.

The bill will also address the concern expressed in the AIRC report that some aspects of the anti-age discrimination provisions of the Workplace Relations Act 1996 are ambiguous and vague. The report suggests that these ambiguities will eventually have to be addressed in Parliament, in the Commission or in the Court. We agree that it is essential to remove any uncertainty about how the anti-age discrimination requirements of the act apply to junior rates. Any uncertainty about junior rates does not create a stable environment for the employment of young people. Young people and employers are entitled to know that their jobs and employing rights are secure.

Given the current positive developments in the youth labour market and subject to the intended operation of these legislative amendments, the Government sees no reason why it would need to introduce further legislation in the life of this Parliament on the junior rates issue. From the Government's perspective this outcome provides certainty and should put the issue behind us for this Parliament.

The Government will also proceed to make consequential amendments to the Workplace Relations Regulations to ensure the protection of junior rates in Australian Workplace Agreements.

I commend the bill to the Senate.

Debate (on motion by Senator Quirke) adjourned.

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