Peter Slipper (Fisher, Liberal Party) Share this | Hansard source

The International Monetary Agreements Amendment Bill 2009 is a very practical bill and builds on the fact that Australia has been a good international citizen for a very long time. Certainly, we have been part of the international monetary system since 1947. The purpose of this bill, as the Minister for Financial Services, Superannuation and Corporate Law pointed out, is to simply the process for our nation accepting amendments to the articles of agreement of the International Monetary Fund and the International Bank for Reconstruction and Development, known generally as the World Bank. We have been members of these two organisations, as I said, since the passage of the International Monetary Agreements Act 1947. The minister pointed out in his second reading speech that the articles of agreement of the fund and bank are schedules to the act. There are certain processes with respect to the international treaties which underline these organisations which require there be support of a certain percentage—85 per cent of total voting power and three-fifths of all members of the IMF—before there can be a change or amendment to the provisions. As has been indicated by other speakers, the Treasurer, as Australia’s governor in the IMF and the World Bank, must vote on any proposed amendments to the arrangements.

The bill before the House is partly to recognise the fact that there have been certain amendments made recently and the government and Australia in fact voted in favour of those amendments. But under the provisions which have existed since 1947 it has been necessary, every time there is an amendment of the international arrangements, for there to be legislation passed through the parliament. While I imagine one could argue that that provides for debate in relation to the amendments, the reality is that those amendments will become law and effective and binding on us if the required percentages vote in favour of the changes. So I suppose one could say that this legislation is designed to recognise the fact that we ought not to have independent and separate legislation every time an amendment is moved internationally with respect to the IMF and the World Bank.

Australia’s internal processes will still have to be followed. There will still be parliamentary scrutiny, there will be a tabling in the parliament and presumably the treaties procedures will be followed with respect to any proposed amendments. At the present time, given the legislative demand on the time of the parliament by any government, there are at times delays in introducing legislation to recognise the fact that amendments have been made. But this legislation, once passed, will mean that it will not be necessary every time there is an amendment to come back before the parliament to seek the approval of both houses.

The agreements constitute international treaties for Australia and, as I indicated, irrespective of the requirement for legislation any amendments to the treaties will still require tabling in parliament and consideration by the Joint Standing Committee on Treaties. So in a sense this legislation is practical legislation. It updates the act, which dates from 1947. It still keeps in place the safeguards that make sure that we as a country are very careful about treaties the government enters into. I am very pleased to be able to commend the bill to the House and I expect that it will enjoy a speedy passage.

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