David Bradbury (Lindsay, Australian Labor Party, Assistant Treasurer ) Share this | Hansard source

I present the explanatory memorandum to this bill and I move:

That this bill be now read a second time.

The Not-for-Profit Sector Freedom to Advocate Bill 2013 will promote ongoing positive engagement, together with open communication and debate, between the federal government and the not-for-profit sector. The bill will prohibit and invalidate clauses in Commonwealth agreements that seek to limit or restrict not-for-profit entities from advocating on Commonwealth policy issues.

An unfettered not-for-profit sector is essential to building a democratic and inclusive community. Other governments have mandated 'gag clauses' in agreements with the not-for-profit sector, preventing them from advocating on government policy. This bill will prevent this from occurring at the Commonwealth level.

The Commonwealth government recognises that a strong, independent and innovative not-for-profit sector is essential to building an inclusive community. The not-for-profit sector is made up of around 600,000 organisations and accounts for approximately eight per cent of employment nationally. Providing Commonwealth funding to not-for-profit entities or entering into other agreements should not prohibit the sector from engaging in policy and debate.

The bill will apply to all Commonwealth agreements with the not-for-profit sector, regardless of whether they were entered into prior to the commencement of the legislation. The bill specifically addresses circumstances where, despite current Commonwealth government policy to the contrary, there may still be 'gag clauses' in existing Commonwealth agreements with the not-for-profit sector.

The bill will invalidate any such clauses in existing agreements. This will ensure that not-for-profit entities are not disadvantaged due to clauses in existing Commonwealth agreements that should not have been included. The bill will also prevent any clauses in future Commonwealth agreements that purport to 'gag' the not-for-profit sector.

The bill will operate retrospectively, and includes a clause relating to compensation. This is intended to cover the highly unlikely circumstance where a party suffers loss because a 'gag clause' in a pre-existing agreement is invalidated by the legislation. In that rare and unlikely situation, the Commonwealth will pay 'reasonable compensation' to that person.

This bill should be supported as it protects the rights of the not-for-profit sector and not-for-profit entities to engage in debate and advocate on Commonwealth policy. It recognises and supports the critical role that the not-for-profit sector has in developing public policy and advocating on behalf of the community.

See this speech in context