Luke Hartsuyker (Cowper, National Party, Assistant Minister to the Deputy Prime Minister) Share this | Hansard source

I present the supplementary explanatory memorandum to the bill and I seek leave of the House to move government amendments (1) to (4) together.

Leave granted.

I move government amendments (1) to (4) together:

(1) Clause 4, page 5 (after line 3), after the definition of start day, insert:

vacancy, in relation to the office of a Board member, has a meaning affected by subsection 20(3).

(2) Clause 16, page 14 (lines 2 and 3), omit the clause, substitute:

16 Membership

The Board consists of:

(a) the Chair; and

(b) at least 2, and no more than 4, other members.

(3) Clause 20, page 15 (after line 23), at the end of the clause, add:

(3) For the purposes of a reference in:

(a) this Act to a vacancy in the office of a Board member; or

(b) the Acts Interpretation Act 1901 to a vacancy in the membership of a body;

there are taken to be 4 Board member offices in addition to the Chair.

(4) Clause 29, page 18 (lines 15 to 17), omit the clause, substitute:

29 Quorum

At a meeting of the Board, a quorum is constituted by:

(a) at any time when the Board consists of 3 Board members—2 Board members; or

(b) in any other case—3 Board members.

The government amendments to the Regional Investment Corporation Bill 2017 will increase the corporation's board to between three and five members. The government has considered a range of views, which were raised following the introduction of the bill, on the proposed governance arrangements. This included submissions to the Senate Rural and Regional Affairs and Transport Legislation Committee inquiry into the bill. For example, in its submission, the National Farmers' Federation discussed the size of the board, suggesting it be increased to five members. Other submissions also queried the proposed size of the board. These are valid concerns, and we thank interested stakeholders for sharing their views.

The bill currently provides for a board of three. This reflects our aim to keep the size of the board modest, given the operating costs of the entity are intended to be offset by the interest charged on its loans. However, we agree that including scope for a slightly larger board will further ensure the government can configure a board with the breadth of skills and experience needed to oversee what are significant Commonwealth investments in farm businesses and water infrastructure. The amendments therefore provide for a range in the board size of between three and five members. This also requires flow-on amendments to clarify the number of board members that constitute a quorum, as well as the circumstances that constitute a vacancy in the office of a board member. The Regional Investment Corporation will make a significant contribution to building stronger and more prosperous rural and regional communities. I commend the amendments to the House.

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