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Nation-building Funds Bill 2008

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2008

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

HOUSE OF REPRESENTATIVES

_____________________________

 

NATION-BUILDING FUNDS BILL 2008

________________­­­______________

 

 

SCHEDULE OF THE AMENDMENTS MADE BY THE SENATE TO WHICH THE HOUSE OF REPRESENTATIVES HAS DISAGREED

(1)     AG-Opp (1) [Sheet 5693]

          Clause 4, page 5 (after line 29), after the definition of COAG Reform Fund , insert:

committee means the Parliamentary Joint Committee on Nation-Building for the time being constituted under Part 2.5A.

committee member means a member of the Parliamentary Joint Committee on Nation-Building.

(2)     Opp (55) [Sheet 5684]

          Clause 4, page 6 (after line 2), after the definition of Communications Minister , insert:

Competitive Neutrality Guidelines means the Australian Government Competitive Neutrality Guidelines for Managers contained in Finance Management Guidance No. 9, published by the Department of Finance and Deregulation, as in force from time to time.

(3)     Opp (62) [Sheet 5684]

          Clause 11, page 15 (lines 10 and 11), omit:

•      The balance of the Communications Fund is to be transferred to the Building Australia Fund.

(4)     Opp (63) [Sheet 5684]

          Clause 11, page 16 (lines 12 to 14), omit note 1.

(5)     Opp (64) [Sheet 5684]

          Clause 14, page 18 (lines 15 to 18), omit notes 1 and 2.

(6)     Opp (48) [Sheet 5684]

          Clause 14, page 18 (lines 23 to 26), omit subclauses (4) and (5), substitute:

             (4)  A determination under subsection (1) is a legislative instrument.

(7)     Opp (49) [Sheet 5684]

          Clause 15, page 19 (lines 10 to 12), omit subclause (3), substitute:

             (3)  A determination under subsection (1) is a legislative instrument.

(8)     Opp (65) [Sheet 5684]

          Clause 16, page 19 (lines 13 to 23), omit the clause.

(9)     Opp (50) [Sheet 5684]

          Clause 17, page 20 (lines 3 to 5), omit subclause (3), substitute:

             (3)  A determination under subsection (1) is a legislative instrument.

(10)   Opp (66) [Sheet 5684]

          Clause 19, page 23 (lines 1 to 7), omit paragraph (b).

(11)   Opp (67) [Sheet 5684]

          Clause 19, page 23 (lines 13 to 17), omit paragraph (d).

(12)   Opp (68) [Sheet 5684]

          Clause 19, page 23 (lines 20 to 22), omit note 2.

(13)   Opp (69) [Sheet 5684]

          Clause 33, page 32 (line 19) to page 33 (line 9), omit the clause.

(14)   Opp (25) [Sheet 5684]

          Clause 52, page 46 (lines 26 to 29), omit subclause (2), substitute:

             (2)  The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 116 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(15)   Opp (1) [Sheet 5684]

          Clause 52, page 47 (after line 7), after subclause (3), insert:

          (3A)  If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(16)   Opp (26) [Sheet 5684]

          Clause 52, page 47 (lines 12 to 15), omit subclause (5), substitute:

             (5)  The Communications Minister must not make a recommendation under subsection (4) in relation to a payment unless Infrastructure Australia has advised under section 117 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(17)   Opp (2) [Sheet 5684]

          Clause 52, page 47 (after line 23), after subclause (6), insert:

          (6A)  If the Communications Minister makes a recommendation under subsection (4) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(18)   Opp (3) [Sheet 5684]

          Clause 52, page 47 (after line 27), after subclause (7), insert:

          (7A)  If the Communications Minister makes a recommendation under subsection (7) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(19)   Opp (27) [Sheet 5684]

          Clause 52, page 48 (lines 1 to 4), omit subclause (9), substitute:

             (9)  The Energy Minister must not make a recommendation under subsection (8) in relation to a payment unless Infrastructure Australia has advised under section 118 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(20)   Opp (4) [Sheet 5684]

          Clause 52, page 48 (after line 11), after subclause (10), insert:

        (10A)  If the Energy Minister makes a recommendation under subsection (8) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(21)   Opp (28) [Sheet 5684]

          Clause 52, page 48 (lines 16 to 19), omit subclause (12), substitute:

           (12)  The Water Minister must not make a recommendation under subsection (11) in relation to a payment unless Infrastructure Australia has advised under section 119 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(22)   Opp (5) [Sheet 5684]

          Clause 52, page 48 (after line 26), at the end of the clause, add:

           (14)  If the Water Minister makes a recommendation under subsection (11) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(23)   Opp (29) [Sheet 5684]

          Clause 64, page 55 (lines 14 to 17), omit subclause (2), substitute:

             (2)  The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 116 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(24)   Opp (6) [Sheet 5684]

          Clause 64, page 55 (after line 24), at the end of the clause, add:

             (4)  If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(25)   Opp (30) [Sheet 5684]

          Clause 71, page 59 (lines 27 to 30), omit subclause (2), substitute:

             (2)  The Communications Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 117 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(26)   Opp (7) [Sheet 5684]

          Clause 71, page 60 (after line 8), after subclause (3), insert:

          (3A)  If the Communications Minister makes a recommendation under subsection (1) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(27)   Opp (31) [Sheet 5684]

          Clause 78, page 63 (lines 13 to 16), omit subclause (2), substitute:

             (2)  The Energy Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 118 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(28)   Opp (8) [Sheet 5684]

          Clause 78, page 63 (after line 23), at the end of the clause, add:

             (4)  If the Energy Minister makes a recommendation under subsection (1) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(29)   Opp (32) [Sheet 5684]

          Clause 85, page 67 (lines 13 to 16), omit subclause (2), substitute:

             (2)  The Water Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 119 that:

                     (a)  the payment satisfies the relevant BAF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(30)   Opp (9) [Sheet 5684]

          Clause 85, page 67 (after line 23), at the end of the clause, add:

             (4)  If the Water Minister makes a recommendation under subsection (1) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(31)   Opp (33) [Sheet 5684]

          Clause 90, page 71 (lines 6 to 9), omit subclause (2), substitute:

             (2)  The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 116 that:

                     (a)  the grant satisfies the relevant BAF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(32)   Opp (10) [Sheet 5684]

          Clause 90, page 71 (after line 16), at the end of the clause, add:

             (4)  If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(33)   Opp (34) [Sheet 5684]

          Clause 95, page 74 (lines 9 to 12), omit subclause (2), substitute:

             (2)  The Communications Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 117 that:

                     (a)  the grant satisfies the relevant BAF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(34)   Opp (11) [Sheet 5684]

          Clause 95, page 74 (after line 19), at the end of the clause, add:

             (4)  If the Communications Minister makes a recommendation under subsection (1) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(35)   Opp (35) [Sheet 5684]

          Clause 100, page 77 (lines 15 to 18), omit subclause (2), substitute:

             (2)  The Energy Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 118 that:

                     (a)  the grant satisfies the relevant BAF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(36)   Opp (12) [Sheet 5684]

          Clause 100, page 77 (after line 25), at the end of the clause, add:

             (4)  If the Energy Minister makes a recommendation under subsection (1) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(37)   Opp (36) [Sheet 5684]

          Clause 105, page 80 (lines 19 to 22), omit subclause (2), substitute:

             (2)  The Water Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 119 that:

                     (a)  the grant satisfies the relevant BAF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(38)   Opp (13) [Sheet 5684]

          Clause 105, page 80 (after line 29), at the end of the clause, add:

             (4)  If the Water Minister makes a recommendation under subsection (1) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(39)   AG-Opp (2) [Sheet 5693]

          Page 90 (after line 22), after Part 2.5, insert:

Part 2.5A Parliamentary Joint Committee on Nation-Building

   

115A   Parliamentary Joint Committee on Nation-Building

             (1)  As soon as practicable after the commencement of the first session of each Parliament, a joint committee of members of the Parliament to be known as the Parliamentary Joint Committee on Nation-Building is to be appointed according to the practice of the Parliament with reference to the appointment of members to serve on joint select committees of both Houses of the Parliament.

             (2)  The committee must consist of 12 committee members, namely, 6 members of the Senate appointed by the Senate, at least one of whom is to be nominated by any minority group or groups or independent senator or independent senators, and 6 members of the House of Representatives appointed by that House, provided that there must not be more than 5 committee members in total from either the Government or the Opposition.

             (3)  A member of the Parliament is not eligible for appointment as a committee member if he or she is:

                     (a)  a Minister;

                     (b)  the President of the Senate;

                     (c)  the Speaker of the House of Representatives; or

                     (d)  the Deputy-President and Chairman of Committees of the Senate or the Chairman of Committees of the House of Representatives.

             (4)  A committee member ceases to hold office:

                     (a)  when the House of Representatives expires by effluxion of time or is dissolved;

                     (b)  if he or she becomes the holder of an office specified in any of the paragraphs of subsection (3);

                     (c)  if he or she ceases to be a member of the House of the Parliament by which he or she was appointed; or

                     (d)  if he or she resigns his or her office as provided by subsection (5) or (6).

             (5)  A committee member appointed by the Senate may resign his or her office by writing signed by him or her and delivered to the President of the Senate.

             (6)  A committee member appointed by the House of Representatives may resign his or her office by writing signed by him or her and delivered to the Speaker of that House.

             (7)  Either House of the Parliament may appoint one of its members to fill a vacancy amongst the committee members appointed by that House.

115B  Powers and proceedings of the committee

                   All matters relating to the powers and proceedings of the committee must be determined by resolution of both Houses of the Parliament.

115C   Duties of the committee

                   The duties of the Committee are:

                     (a)  to consider Infrastructure Australia advice that is referred to the committee under section 119B;

                     (b)  to consider EIF Advisory Board advice that is referred to the committee under section 171A;

                     (c)  to consider HHF Advisory Board advice that is referred to the committee under section 246A;

                     (d)  to consider relevant Ministers’ statements of reasons;

                     (e)  to report to both Houses of the Parliament, with such comments as it thinks fit, on any advice referred to it under paragraph (a), (b) or (c), and on any matter appertaining to or connected with that advice to which, in the opinion of the committee, the attention of the Parliament should be directed;

                      (f)  to examine each annual report on Infrastructure Australia and report to the Parliament on any matter appearing in, or arising out of, any such annual report;

                     (g)  to examine trends and changes in infrastructure provision and provision of education, health and hospital services and report to both Houses of the Parliament any change which the committee thinks desirable to:

                              (i)  the functions, structure and operations of Infrastructure Australia, the EIF Advisory Board or the HHF Advisory Board; or

                             (ii)  the operation of the Building Australia Fund, the Education Investment Fund or the Health and Hospitals Fund;

                     (h)  to inquire into any question in connection with its duties that is referred to it by either House of the Parliament, and to report to that House upon that question.

(40)   Opp (56) [Sheet 5684]

          Clause 116, page 91 (lines 11 and 12), omit subclause (2), substitute:

             (2)  In giving advice under subsection (1), Infrastructure Australia must:

                     (a)  apply the BAF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(41)   Opp (57) [Sheet 5684]

          Clause 117, page 91 (lines 23 and 24), omit subclause (2), substitute:

             (2)  In giving advice under subsection (1), Infrastructure Australia must:

                     (a)  apply the BAF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(42)   Opp (58) [Sheet 5684]

          Clause 118, page 92 (lines 11 and 12), omit subclause (2), substitute:

             (2)  In giving advice under subsection (1), Infrastructure Australia must:

                     (a)  apply the BAF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(43)   Opp (59) [Sheet 5684]

          Clause 119, page 92 (lines 27 and 28), omit subclause (2), substitute:

             (2)  In giving advice under subsection (1), Infrastructure Australia must:

                     (a)  apply the BAF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(44)   AG-Opp (3) [Sheet 5693]

          Page 93 (after line 4), after clause 119, insert:

119A   Infrastructure Australia advice to be tabled

                   On receiving any advice prepared by Infrastructure Australia under subsection 116(1), 117(1), 118(1) or 119(1), the relevant Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which he or she receives the advice.

(45)   AG-Opp (4) [Sheet 5693]

          Page 93 (after line 4), after clause 119, insert:

119B   Reference of advice of Infrastructure Australia to the Parliamentary Joint Committee on Nation-Building

             (1)  If Infrastructure Australia provides advice in accordance with subsection 116(1), 117(1), 118(1) or 119(1) in support of infrastructure the estimated cost of which exceeds the threshold amount, the advice and any document it considered when formulating that advice stands referred to the Parliamentary Joint Committee on Nation-Building for consideration and report.

             (2)  If Infrastructure Australia provides advice in accordance with subsection 116(1), 117(1), 118(1) or 119(1) in support of infrastructure the estimated cost of which does not exceed the threshold amount, the advice and any document it considered when formulating that advice must be provided to the Parliamentary Joint Committee on Nation-Building.

             (3)  On receiving the advice of Infrastructure Australia in support of infrastructure the estimated cost of which exceeds the threshold amount, the Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which the Minister receives the advice, together with such plans, specifications and other particulars as the Minister thinks necessary.

             (4)  Development of infrastructure which is the subject of advice that has been referred to the committee in accordance with this section must not commence before a report of the committee concerning the work has been presented to both Houses of the Parliament.

             (5)  If, after a report of the committee in accordance with subsection (1) has been presented to both Houses of the Parliament and before the development of the infrastructure has commenced, each House resolves that, for reasons or purposes stated in the resolution, the advice of Infrastructure Australia is again referred to the committee for consideration and report, the committee must further consider the advice and the development of the infrastructure must not commence before a further report of the committee concerning the advice has been presented to both Houses.

             (6)  In this section:

estimated cost , in relation to the development of infrastructure, means an estimate of cost made when all the particulars of the development of the infrastructure substantially affecting its cost have been determined and includes the life-cycle costs of the infrastructure.

threshold amount means:

                     (a)  $50,000,000; or

                     (b)  if another lower amount is specified in the regulations for the purposes of this definition—that other amount.

(46)   Opp (51) [Sheet 5684]

          Clause 133, page 103 (lines 22 to 25), omit subclauses (4) and (5), substitute:

             (4)  A determination under subsection (1) is a legislative instrument.

(47)   Opp (52) [Sheet 5684]

          Clause 134, page 104 (lines 8 to 10), omit subclause (3), substitute:

             (3)  A determination under subsection (1) is a legislative instrument.

(48)   Opp (60) [Sheet 5684]

          Clause 171, page 132 (lines 20 and 21), omit subclause (4), substitute:

             (4)  In giving advice under paragraph (1)(a) or (b), the EIF Advisory Board must:

                     (a)  apply the EIF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(49)   AG-Opp (5) [Sheet 5693]

          Clause 171, page 132 (after line 21), after subclause (4), insert:

          (4A)  On receiving any advice prepared by the EIF Advisory Board under subsection (1) or (6), the relevant Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which he or she receives the advice.

(50)   AG-Opp (6) [Sheet 5693]

          Page 133 (after line 7), after clause 171, insert:

171A   Reference of advice of EIF Board to the Parliamentary Joint Committee on Nation-Building

             (1)  If the EIF Advisory Board provides advice in accordance with subsection 171(1) or (6) in support of infrastructure the estimated cost of which exceeds the threshold amount, the advice and any document it considered when formulating that advice stands referred to the Parliamentary Joint Committee on Nation-Building for consideration and report.

             (2)  If the EIF Advisory Board provides advice in accordance with subsection 171(1) or (6) in support of infrastructure the estimated cost of which does not exceed the threshold amount, the advice and any document it considered when formulating that advice must be provided to the Parliamentary Joint Committee on Nation-Building .

             (3)  On receiving the advice of the EIF Advisory Board in support of infrastructure the estimated cost of which exceeds the threshold amount, the Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which the Minister receives the advice, together with such plans, specifications and other particulars as the Minister thinks necessary.

             (4)  Development of infrastructure which is the subject of advice that has been referred to the committee in accordance with this section must not commence before a report of the committee concerning the work has been presented to both Houses of the Parliament.

             (5)  If, after a report of the committee in accordance with subsection (1) has been presented to both Houses of the Parliament and before the development of the infrastructure has commenced, each House resolves that, for reasons or purposes stated in the resolution, the advice of the EIF Advisory Board is again referred to the committee for consideration and report, the committee must further consider the advice and the development of the infrastructure must not commence before a further report of the committee concerning the advice has been presented to both Houses.

             (6)  In this section:

estimated cost , in relation to the development of infrastructure, means an estimate of cost made when all the particulars of the development of the infrastructure substantially affecting its cost have been determined and includes the life-cycle costs of the infrastructure.

threshold amount means:

                     (a)  $50,000,000; or

                     (b)  if another lower amount is specified in the regulations for the purposes of this definition—that other amount.

(51)   Opp (37) [Sheet 5684]

          Clause 177, page 135 (line 27) to page 136 (line 2), omit subclause (2), substitute:

             (2)  The Education Minister must not make a recommendation under subsection (1) in relation to a payment unless the EIF Advisory Board has advised under paragraph 171(1)(a) that:

                     (a)  the payment satisfies the relevant EIF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(52)   Opp (14) [Sheet 5684]

          Clause 177, page 136 (after line 10), after subclause (3), insert:

          (3A)  If the Education Minister makes a recommendation under subsection (1) in relation to a payment, the Education Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(53)   Opp (38) [Sheet 5684]

          Clause 177, page 136 (lines 15 to 18), omit subclause (5), substitute:

             (5)  The Research Minister must not make a recommendation under subsection (4) in relation to a payment unless the EIF Advisory Board has advised under paragraph 171(1)(b) that:

                     (a)  the payment satisfies the relevant EIF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(54)   Opp (15) [Sheet 5684]

          Clause 177, page 136 (after line 26), after subclause (6), insert:

          (6A)  If the Research Minister makes a recommendation under subsection (4) in relation to a payment, the Research Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(55)   Opp (39) [Sheet 5684]

          Clause 177, page 136 (line 31) to page 137 (line 2), omit subclause (8), substitute:

             (8)  The EIF designated Ministers must not make a recommendation under subsection (7) in relation to a payment unless the EIF Advisory Board has:

                     (a)  given advice under subsection 171(6) about the payment; and

                     (b)  if the payment will result in the creation or development of an asset—advised that the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  advised that the payment will not be made in relation to a project that requires the payment of an upfront fee.

(56)   Opp (16) [Sheet 5684]

          Clause 177, page 137 (after line 10), at the end of the clause, add:

           (10)  If the EIF designated Ministers make a recommendation under subsection (7) in relation to a payment, the EIF designated Ministers must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(57)   Opp (40) [Sheet 5684]

          Clause 184, page 141 (lines 9 to 12), omit subclause (2), substitute:

             (2)  The Education Minister must not make a recommendation under subsection (1) in relation to a payment unless the EIF Advisory Board has advised under paragraph 171(1)(a) that:

                     (a)  the payment satisfies the relevant EIF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(58)   Opp (17) [Sheet 5684]

          Clause 184, page 141 (after line 20), after subclause (3), insert:

          (3A)  If the Education Minister makes a recommendation under subsection (1) in relation to a payment, the Education Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(59)   Opp (41) [Sheet 5684]

          Clause 184, page 141 (lines 25 to 28), omit subclause (5), substitute:

             (5)  The EIF designated Ministers must not make a recommendation under subsection (4) in relation to a payment unless the EIF Advisory Board has:

                     (a)  given advice under subsection 171(6) about the payment; and

                     (b)  if the payment will result in the creation or development of an asset—advised that the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  advised that the payment will not be made in relation to a project that requires the payment of an upfront fee.

(60)   Opp (18) [Sheet 5684]

          Clause 184, page 142 (after line 2), at the end of the clause, add:

             (7)  If the EIF designated Ministers make a recommendation under subsection (4) in relation to a payment, the EIF designated Ministers must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(61)   Opp (42) [Sheet 5684]

          Clause 191, page 145 (lines 22 to 25), omit subclause (2), substitute:

             (2)  The Research Minister must not make a recommendation under subsection (1) in relation to a payment unless the EIF Advisory Board has advised under paragraph 171(1)(b) that:

                     (a)  the payment satisfies the relevant EIF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(62)   Opp (19) [Sheet 5684]

          Clause 191, page 146 (after line 2), after subclause (3), insert:

          (3A)  If the Research Minister makes a recommendation under subsection (1) in relation to a payment, the Research Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(63)   Opp (43) [Sheet 5684]

          Clause 191, page 146 (lines 7 to 10), omit subclause (5), substitute:

             (5)  The EIF designated Ministers must not make a recommendation under subsection (4) in relation to a payment unless the EIF Advisory Board has:

                     (a)  given advice under subsection 171(6) about the payment; and

                     (b)  if the payment will result in the creation or development of an asset—advised that the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  advised that the payment will not be made in relation to a project that requires the payment of an upfront fee.

(64)   Opp (20) [Sheet 5684]

          Clause 191, page 146 (after line 18), at the end of the clause, add:

             (7)  If the EIF designated Ministers make a recommendation under subsection (4) in relation to a payment, the EIF designated Ministers must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(65)   Opp (44) [Sheet 5684]

          Clause 195, page 149 (lines 5 to 8), omit subclause (2), substitute:

             (2)  The Education Minister must not make a recommendation under subsection (1) in relation to a grant unless the EIF Advisory Board has advised under paragraph 171(1)(a) that:

                     (a)  the grant satisfies the relevant EIF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(66)   Opp (21) [Sheet 5684]

          Clause 195, page 149 (after line 16), at the end of the clause, add:

             (4)  If the Education Minister makes a recommendation under subsection (1) in relation to a payment, the Education Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(67)   Opp (53) [Sheet 5684]

          Clause 216, page 164 (lines 17 to 20), omit subclauses (4) and (5), substitute:

             (4)  A determination under subsection (1) is a legislative instrument.

(68)   Opp (54) [Sheet 5684]

          Clause 217, page 165 (lines 3 to 5), omit subclause (3), substitute:

             (3)  A determination under subsection (1) is a legislative instrument.

(69)   Opp (61) [Sheet 5684]

          Clause 246, page 186 (lines 7 and 8), omit subclause (2), substitute:

             (2)  In giving advice under paragraph (1)(a), the HHF Advisory Board must:

                     (a)  apply the HHF evaluation criteria; and

                     (b)  apply the Competitive Neutrality Guidelines, if applicable; and

                     (c)  if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

                     (d)  take into account whether or not the project will require the payment of an upfront fee.

(70)   AG-Opp (7) [Sheet 5693]

          Clause 246, page 186 (after line 8), at the end of the clause, add:

             (3)  On receiving any advice prepared by the HHF Advisory Board under subsection (1), the Health Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which he or she receives the advice.

(71)   AG-Opp (8) [Sheet 5693]

          Page 186 (after line 8), after clause 246, insert:

246A   Reference of advice of HHF Board to the Parliamentary Joint Committee on Nation-Building

             (1)  If the HHF Advisory Board provides advice in accordance with subsection 246(1) in support of infrastructure the estimated cost of which exceeds the threshold amount, the advice and any document it considered when formulating that advice stands referred to the Parliamentary Joint Committee on Nation-Building for consideration and report.

             (2)  If the HHF Advisory Board provides advice in accordance with subsection 246(1) in support of infrastructure the estimated cost of which does not exceed the threshold amount, the advice and any document it considered when formulating that advice must be provided to the Parliamentary Joint Committee on Nation-Building .

             (3)  On receiving the advice of the HHF Advisory Board in support of infrastructure the estimated cost of which exceeds the threshold amount, the Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which the Minister receives the advice, together with such plans, specifications and other particulars as the Minister thinks necessary.

             (4)  Development of infrastructure which is the subject of advice that has been referred to the committee in accordance with this section must not commence before a report of the committee concerning the work has been presented to both Houses of the Parliament.

             (5)  If, after a report of the committee in accordance with subsection (1) has been presented to both Houses of the Parliament and before the development of the infrastructure has commenced, each House resolves that, for reasons or purposes stated in the resolution, the advice of the HHF Advisory Board is again referred to the committee for consideration and report, the committee must further consider the advice and the development of the infrastructure must not commence before a further report of the committee concerning the advice has been presented to both Houses.

             (6)  In this section:

estimated cost , in relation to the development of infrastructure, means an estimate of cost made when all the particulars of the development of the infrastructure substantially affecting its cost have been determined and includes the life-cycle costs of the infrastructure.

threshold amount means:

                     (a)  $50,000,000; or

                     (b)  if another lower amount is specified in the regulations for the purposes of this definition—that other amount.

(72)   Opp (45) [Sheet 5684]

          Clause 252, page 188 (lines 13 to 16), omit subclause (2), substitute:

             (2)  The Health Minister must not make a recommendation under subsection (1) in relation to a payment unless the HHF Advisory Board has advised under paragraph 246(1)(a) that:

                     (a)  the payment satisfies the relevant HHF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(73)   Opp (22) [Sheet 5684]

          Clause 252, page 188 (after line 24), at the end of the clause, add:

             (4)  If the Health Minister makes a recommendation under subsection (1) in relation to a payment, the Health Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(74)   Opp (46) [Sheet 5684]

          Clause 258, page 191 (lines 12 to 15), omit subclause (2), substitute:

             (2)  The Health Minister must not make a recommendation under subsection (1) in relation to a payment unless the HHF Advisory Board has advised under paragraph 246(1)(a) that:

                     (a)  the payment satisfies the relevant HHF evaluation criteria; and

                     (b)  if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the payment will not be made in relation to a project that requires the payment of an upfront fee.

(75)   Opp (23) [Sheet 5684]

          Clause 258, page 191 (after line 23), at the end of the clause, add:

             (4)  If the Health Minister makes a recommendation under subsection (1) in relation to a payment, the Health Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(76)   Opp (47) [Sheet 5684]

          Clause 263, page 194 (line 29) to page 195 (line 2), omit subclause (2), substitute:

             (2)  The Health Minister must not make a recommendation under subsection (1) in relation to a grant unless the HHF Advisory Board has advised under paragraph 246(1)(a) that:

                     (a)  the grant satisfies the relevant HHF evaluation criteria; and

                     (b)  if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

                     (c)  the grant will not be made in relation to a project that requires the payment of an upfront fee.

(77)   Opp (24) [Sheet 5684]

          Clause 263, page 195 (after line 9), at the end of the clause, add:

             (4)  If the Health Minister makes a recommendation under subsection (1) in relation to a payment, the Health Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(78)   AG-Opp (9) [Sheet 5693]

          Page 204 (after line 9), at the end of the bill, add:

Schedule 1 Amendment of other Acts

Infrastructure Australia Act 2008

1  At the end of section 5

Add:

             (6)  On receiving any advice or other document prepared by Infrastructure Australia under subsection (1) or (2), the Minister must cause a copy of the advice or other document, as the case may be, to be laid before each House of the Parliament within 3 sitting days of that House after the day on which the Minister receives the advice or other document, as the case may be.

________________­­­______________

 

HOUSE OF REPRESENTATIVES REASONS FOR DISAGREEING TO

THE SENATE AMENDMENTS

 

These amendments require that, where advice from the Fund advisory boards supports infrastructure expenditure estimated to be above a threshold amount of $50,000,000 (or a lower amount prescribed in regulations), the advice be referred to a new Parliamentary Joint Committee on Nation-building for consideration and report.

 

These amendments are not supported because the Nation-building Funds Bill 2008 already provides for rigour, transparency and scrutiny in relation to the evaluation and payment processes for the Building Australia Fund (BAF), the Education Investment Fund (EIF) and the Health and Hospitals Fund (HHF).  Spending on specific projects will be assessed by independent advisory boards against evaluation criteria.  The evaluation criteria are legislative instruments which are disallowable by the Parliament.

 

The Government will consider which of the projects will be funded through the budget process and it will include details of infrastructure payments in the budget documentation.

 

Parliamentary transparency and scrutiny for payments from the Funds will also be provided by the general drawing rights limit, which will be included in the annual Appropriations Acts for the financial years 2009-10 onwards.  The general drawing rights limit restricts the total amount that may be paid out in a financial year to support relevant infrastructure expenditure, which gives the Parliament a mechanism by which it may oversight the rate at which amounts are being expended.

 

On the basis that the arrangements provide for rigour, transparency and scrutiny in the evaluation and payment framework, the establishment of a new committee imposes an unnecessary further review of payments from the Funds that is not required to ensure the efficacy of the funding decisions.

 

The amendments also propose that portfolio Ministers must provide to both Houses a written statement of reasons for a recommendation of a payment from the Funds. The amendments further propose that a portfolio Minister must not make a recommendation unless he or she has received advice from the Fund advisory board on whole-of-life costs being met by the asset owner and that the project will not require upfront fees; also that in giving that advice, Fund advisory boards also take into account the application of the Competitive Neutrality Guidelines, if applicable.

 

Due to the rigour, transparency and scrutiny provided in the Nation-building Funds Bill 2008, these amendments are not required and are therefore not supported.  As well, these amendments will delay the accelerated implementation of the Nation-building Funds, an important step to protect Australians against the fall-out from the global financial crisis.  Managing whole-of-life costs are already factored into the evaluation process, and are reflected in the interim EIF evaluation criteria and interim HHF evaluation criteria.

 

It also needs to be recognised that upfront fees are appropriate in certain circumstances.  Prohibiting upfront fees could lead to less co-investment from certain sectors, such as with higher education institutions.  The Commonwealth’s interests would be protected through Funding Agreements, as with other grants.  Existing policy obligations will also apply to the Funds where relevant, including in relation to competitive neutrality.

 

The amendments also propose that determinations to credit the Funds are disallowable instruments.  Normally such determinations would be regarded as administrative, rather than legislative, in character.  However, to provide transparency to the Parliament, these crediting determinations have been made non-disallowable instruments.  These arrangements are the same as those in the Future Fund Act 2006 and the Higher Education Endowment Fund Act 2007 .  Therefore, these amendments are not supported.

 

The disclosure of advice from Infrastructure Australia and other advisory boards through further amendments are not supported.  Arrangements contained in the Nation-building Funds Bill 2008 provide for rigour and transparency in making payments.  Additionally, these amendments could result in commercial-in-confidence information being disclosed, which could affect how applicants participate.

 

The amendments also oppose the proposal to transfer the balance of the Communications Fund to the BAF.

 

Not transferring the balance of the Communications Fund to the BAF will affect the delivery of the proposed National Broadband Network (NBN).  The NBN is expected to deliver significantly improved telecommunication services to rural and remote areas.  The inability to utilise the capital will severely restrict the nature and extent of the telecommunications infrastructure able to be provided to all areas of Australia.

 

Accordingly, the House of Representatives does not accept the amendments.

 

____________________

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                              I C HARRIS

                                                                      Clerk of the House of Representatives

 

 

House of Representatives

4 December 2008