Title Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020
Database Explanatory Memoranda
Date 10-07-2020 05:17 PM
Source House of Reps
System Id legislation/ems/r6563_ems_1f6f9960-81a4-40d0-8ada-9c37ad154252


Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020

2019-2020

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

 

 

 

Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020

 

 

EXPLANATORY MEMORANDUM

and

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

 

 

 

 

 

 

Circulated by authority of

Andrew Wilkie MP


Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020

 

 

OUTLINE

 

This bill seeks to enshrine principles of sustainability in Federal Government procurement decisions. The bill amends the Public Governance, Performance and Accountability Act 2013, creating a duty for the accountable authority of a Commonwealth entity to procure recycled goods. The authority must ensure that at least 30% of the entity’s procurement of goods is of recycled goods. For example, recycled plastics can be used in furniture, recycled paper in office supplies and recycled rubber and glass in infrastructure. This reduces the need for new materials and creates an internal market for Australian waste resources.

 

The bill also introduces mandatory sustainable procurement principles which must be taken into account in making purchasing decisions. Goods and property which can be reused, repaired or recycled should be considered, and goods which themselves contain recycled material should be given preference. Environmental impacts and fair and ethical sourcing practices must also be considered by the decision maker. This means goods and services which have lower adverse environmental impacts across their entire lifespan and socially responsible supply chains will be given preference.

 

In light of the waste export ban in Australia, this bill capitalises on the Government’s purchasing power to drive the shift to a circular economy and new market for sustainable products. The influential purchasing power of the Government will encourage greater certainty in the remanufacturing market and drive demand for recovered resources.

 

FINANCIAL IMPACT

 

The bill will have no financial impact.

 

NOTES ON CLAUSES

 

Clause 1: Short Title

 

1.    This clause is a formal provision and specifies the short title of the Bill as the Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020.

 

Clause 2: Commencement

2.    This clause provides for the commencement of the Act on the day after it receives Royal Assent.

 

Clause 3: Schedules

 

3.    This clause establishes that, as the intent of the Bill is to be realised through amendments to another Act, the Schedules of this Bill will amend that Act accordingly.

 


Schedule 1

 

Public Governance, Performance and Accountability Act 2013

 

Item 1: Section 8

 

1.    Item 1 inserts the term sustainable procurement principles into the Dictionary. The term is defined in subsection 105B(1A) to mean:

a.    Goods or property that can be reused, repaired or recycled;

b.    Goods that include recycled material;

c.    Goods or services which have lower adverse environmental impacts associated with all stages of production, use or disposal;

d.    Suppliers of goods and services which have fair and ethical supply chains, and which comply with social and legislative obligations (including obligations to employees).

2.    The sustainable procurement principles mandate that, at minimum, the procurement decisions which prioritise the above attributes should be given preference.

 

Item 2: At the end of Subdivision A of Division 2 of Part 2-2

 

3.    Item 2 inserts a new provision containing a duty to ensure procurement of recycled goods. This new duty ensures that the accountable authority of a Commonwealth entity must consider sustainable procurement principles when making procurement and purchasing decisions.

4.    The entity also has a duty to ensure that at least 30% of the entity’s procurement of goods is of recycled goods.

5.    This duty will come into effect on 1 July 2025.

 

Item 3: After subsection 105B(1)

 

6.    Item 3 inserts a mandatory requirement for the Minister to consider the sustainable procurement principles when drafting new procurement instruments. The Minister must be satisfied that the new procurement instrument is consistent with the sustainable procurement principles.

 

 


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Public Governance, Performance and Accountability Amendment (Sustainable Procurement Principles) Bill 2020

 

 

This bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the bill

 

This bill seeks to enshrine principles of sustainability in Federal Government procurement decisions. The bill amends the Public Governance, Performance and Accountability Act 2013, creating a duty for the accountable authority of a Commonwealth entity to procure recycled goods. The authority must ensure that at least 30% of the entity’s procurement of goods is of recycled goods. The bill also introduces mandatory sustainable procurement principles which must be taken into account in making purchasing decisions. Goods and property which can be reused, repaired or recycled should be considered, and goods which themselves contain recycled material should be given preference. Environmental impacts and fair and ethical sourcing practices must also be considered by the decision maker.

 

Human rights implications

 

This bill does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This bill is compatible with human rights because it does not raise any human rights issues.

 

 

 

 

Andrew Wilkie MP