Senate debates

Tuesday, 27 November 2012

Bills

Aviation Legislation Amendment (Liability and Insurance) Bill 2012; In Committee

1:20 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

Before I move the amendment standing in my name, I would like to ask the minister a question. Given that both the opposition and the government have indicated they will not be supporting the amendment I intend to move, what mechanism will there be to ensure a regular review of indexation in relation to compensation payments? Will we be waiting another 18 years, or some other indeterminate time, in order to upgrade or to make sure those payments are at least in line with the CPI?

1:21 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

I am advised that the minister is happy to commit to a review in three years time, but not in the form that has been indicated in your proposed amendment.

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

I am tantalised by what Minister Kim Carr has said. I am very pleased that the minister has said he will commit to a review. But not in that form? In what form will the minister commit to a review in three years time?

Photo of Barnaby JoyceBarnaby Joyce (Queensland, National Party, Leader of The Nationals in the Senate) Share this | | Hansard source

The Hon. Warren Truss, who has passage of this, has indicated that, on the indication of a triennial review by the government, though its specific form is yet to be determined, the coalition is favourable to its support.

1:22 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

The government, as I have indicated, will support a review in three years time. The details of such a review will be finalised closer to that time. The form and the terms of reference of such review, the arrangements for its administration and the funding would obviously need to be settled in the light of the operations of this bill, which will then be an act. It is unnecessary to limit the scope of responding to these operational requirements through this legislation at this time. The government has made the commitment to have the review in three years time.

1:23 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

I am still tantalised in relation to this. There will be a review in three years time. Will the review be about these amendments? Will it be about aviation legislation insurance generally? Will it be about aviation insurance more broadly? Will it be about aviation, full stop? Is it about these amendments? Is it about indexation? Is it about insurance? Is it about compensation? Is it about aviation more broadly? Even a hint would be helpful at this stage.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | | Hansard source

The advice I have is that a review will be undertaken into the operations of this legislation.

1:24 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

At least that is something. We do not know what the form and terms of reference will be. We do not know what the funding will be. We do not know who will be doing it. We do not know when it will necessarily report, but there will be a review in three years time. I guess that is better than a kick in the head—

Senator Joyce interjecting

'Not much better', says Senator Joyce. Look, I think it is pleasing that the minister acknowledges that there is a need to review this. I will look forward to that review, if I am around the place in three years time—I may not be. But, wherever I will be, I will look forward with interest to see what the references will be. I think at this stage I should put myself out of my misery and move the amendments standing in my name. I have already explained the terms of those amendments in the second reading stage of this bill. I seek leave to move the amendments together, given that I know which way the weight of numbers is, but I am looking forward to the Greens at least announcing their position in relation to this.

Leave granted.

I move amendments Nos 1 and 2 on sheet 7234 together:

(1) Clause 2, page 2 (table item 1), omit "3", substitute "4".

(2) Page 2, after clause 3 (after line 11), insert:

4 Review of amendments

  (1) At the end of the period of 3 years after Schedule 1 to this Act commences, the Minister must cause an independent review to be undertaken of the amendments made by that Schedule.

  (2) The review must, at a minimum, consider the following:

     (a) whether the amounts mentioned in sections 31 and 41C of the Civil Aviation (Carriers' Liability) Act 1959, as amended by Schedule 1 to this Act, should be indexed;

     (b) what effects subsection 10(1A) of the Damage by Aircraft Act 1999, as inserted by Schedule 1 to this Act, has had on the travelling public.

  (3) The persons undertaking the review must give the Minister a written report of the review within 6 months after the end of the 3 year period.

  (4) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after he or she receives the report.

  (5) In this section:

  independent review means a review undertaken by at least 3 persons who:

     (a) in the Minister's opinion possess appropriate qualifications to undertake the review; and

     (b) include a person who has substantial experience or knowledge in insurance matters.

Question negatived.

For the record, can I indicate that the Australian Greens did support these amendments. Finally, can I indicate that I will not be supporting this bill because this bill actually takes away common law rights to domestic passengers for any claims of mental injury. The promises of a review in three years time, while they ameliorate some concerns, I think are simply too vague at this stage to give me comfort in terms of what I was trying to achieve. But having said that, I am grateful for the discussions I have had with staff from the minister's office and from the department in relation to this bill.

Bill agreed to.

Bill reported without amendments; report adopted.