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Thursday, 27 May 1993
Page: 1496


Senator FAULKNER (Minister for Veterans' Affairs and Minister for Defence Science and Personnel) (3.42 p.m.) —I table the explanatory memorandum relating to the Bills and move:

  That this Bill be now read a second time.

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

  Leave granted.

  The speech read as follows

Mr President, this Bill amends the Development Allowance Authority Act 1992 (the Principal Act).

The purpose of the Bill is to amend the Principal Act to extend the development allowance to projects in the motor vehicle industry and the printing production aspect of projects in the print media.

These amendments re-open the application period for projects in the motor vehicle industry and the print media that were previously excluded from the development allowance.

Thus the amendments allow proponents to apply for the development allowance for projects in the motor vehicle industry and the printing production aspect of projects in the print media.

The amendments reflect commitments made during the election campaign.

While extending the eligibility of the development allowance to such projects, these amendments also ensure that projects relating to these two industries must meet competitiveness tests in relation to work practices and input pricing, which under the Principal Act could otherwise be waived where the project sponsor is able to show that, prior to 1 January 1993, there was substantial commitment to completion of the project. That is, these amendments would provide that, irrespective of whether there was substantial commitment to completion before 1 January 1993, to be eligible for the development allowance projects in the motor vehicle industry and the printing production aspect of projects in the print media would have to meet the competitiveness tests.

All other criteria in the Principal Act, including the $50 million threshold would need to be met by projects in the motor vehicle industry and the printing production aspect of projects in the print media industry, in order to be eligible for the development allowance.

I now turn to a more detailed discussion of these amendments.

Additional Projects

This Bill defines additional projects now eligible for the development allowance. In particular, projects in the motor vehicle industry and the printing production aspects of projects in the print media are defined and the Principal Act's basic eligibility test modified so these projects are now eligible.

Industry Definitions

The Bill adopts a wide definition of the motor vehicle industry to include the manufacture of vehicles and components. The Bill also defines printing production to include the printing unit and ancillary facilities.

Timing of Applications

This Bill amends the Principal Act to re-open the application period for projects in the motor vehicle industry and the printing production aspects of projects in the print media until either 30 September 1993 or until 28 days after this Act receives the Royal Assent, which ever is the later. This will ensure the affected businesses have sufficient time to lodge their applications.

Criteria for Granting Application

Finally, as noted earlier, this Bill amends the Principal Act to specify that in order to be eligible for the development allowance, projects in the motor vehicle industry and the printing production aspects of projects in the print media must meet the competitiveness tests in relation to work practices and input pricing, irrespective of whether there was substantial commitment to completion before 1 January 1993.

Mr President, I present the Explanatory Memorandum which contains more detailed explanations of the provisions of the Bill.

I commend the Bill to the Senate.

  Debate (on motion by Senator Panizza) adjourned.