Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Current HansardDownload Current Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Monday, 1 December 2008
Page: 11935


Mr MARTIN FERGUSON (Minister for Resources and Energy and Minister for Tourism) (6:25 PM) —The Nation-building Funds Bill 2008 and the Nation-building Funds (Consequential Amendments) Bill 2008 give effect to the government’s 2008-09 budget announcement to establish the Building Australia Fund, the Education Investment Fund and the Health and Hospitals Fund. To provide a mechanism to distribute grant payments from the funds to states and territories, the Treasurer has also introduced the COAG Reform Fund Bill 2008 to establish the COAG Reform Fund. With these significant commitments in transport, communications, energy, water, education, research and health infrastructure, the nation-building funds will assist in addressing Australia’s immediate challenges in response to the global financial crisis as well as its long-term challenges over the next decade and beyond. The government will contribute a total of $26.3 billion to the funds this financial year. The funds will be established as special accounts in the Consolidated Revenue Fund, meaning that amounts credited to the funds represent amounts that have been appropriated and clearly committed for future expenditure for the creation and development of infrastructure.

In view of a strong commitment to shield Australians from the global financial crisis, the government will accelerate its nation-building agenda. The legislation allows for the interim advisory board arrangements that have now commenced. Allowing expenditure on critical infrastructure to commence from 2009 will contribute to economic activity in the short term and extend growth potential in the medium to long term. The nation-building funds will utilise and build on the government’s arrangements for the Future Fund. The Future Fund Board of Guardians will manage the investments of the funds. There will be a high level of transparency and accountability associated with payments from the funds. For example, the legislation establishes an evaluation framework that provides for rigorous assessment of projects by independent advisory bodies. Projects will need to satisfy rigorous evaluation criteria. These criteria will be tabled in the parliament as allowable legislative instruments. There will be a common and rigorous approach in the evaluation criteria framework across the three funds that is consistent with the nation-building objectives of the funds.

In line with the government’s overarching principles, projects financed from the funds should address national infrastructure priorities, demonstrate high benefits and effective use of resources, efficiently address infrastructure needs and demonstrate that they achieve established standards in implementation and management. The government will consider which of those 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 drawing rights limit restricts the total amount that may be paid out in a financial year to support relevant infrastructure expenditure. This will give the parliament a mechanism by which it may oversight the rate at which amounts are being expended.

Portfolio ministers will be responsible and accountable for payments and for delivery of projects in line with their portfolio responsibility. The legislation provides for these arrangements and therefore clear policy accountability for payments from the funds. The funds demonstrate the government’s commitment towards building the nation’s capabilities, strengthening the economy and providing critical investment in key areas of nation-building infrastructure. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.