House debates

Thursday, 4 December 2008

Nation-Building Funds Bill 2008

Consideration of Senate Message

Bill returned from the Senate with amendments.

Ordered that the amendment be considered immediately.

Senate’s amendments—

(1)    Clause 4, page 5 (after line 29), after the definition of COAG Reform Fund, insert:

committee means the Parliamentary Joint Committee on Nation-Building for the time being constituted under Part 2.5A.

committee member means a member of the Parliamentary Joint Committee on Nation-Building.

(2)    Clause 4, page 6 (after line 2), after the definition of Communications Minister, insert:

Competitive Neutrality Guidelines means the Australian Government Competitive Neutrality Guidelines for Managers contained in Finance Management Guidance No. 9, published by the Department of Finance and Deregulation, as in force from time to time.

(3)    Clause 11, page 15 (lines 10 and 11), omit:

The balance of the Communications Fund is to be transferred to the Building Australia Fund.

(4)    Clause 11, page 16 (lines 12 to 14), omit note 1.

(5)    Clause 14, page 18 (lines 15 to 18), omit notes 1 and 2.

(6)    Clause 14, page 18 (lines 23 to 26), omit subclauses (4) and (5), substitute:

        (4)    A determination under subsection (1) is a legislative instrument.

(7)    Clause 15, page 19 (lines 10 to 12), omit subclause (3), substitute:

        (3)    A determination under subsection (1) is a legislative instrument.

(8)    Clause 16, page 19 (lines 13 to 23), omit the clause.

(9)    Clause 17, page 20 (lines 3 to 5), omit subclause (3), substitute:

        (3)    A determination under subsection (1) is a legislative instrument.

(10)  Clause 19, page 23 (lines 1 to 7), omit paragraph (b).

(11)  Clause 19, page 23 (lines 13 to 17), omit paragraph (d).

(12)  Clause 19, page 23 (lines 20 to 22), omit note 2.

(13)  Clause 33, page 32 (line 19) to page 33 (line 9), omit the clause.

(14)  Clause 52, page 46 (lines 26 to 29), omit subclause (2), substitute:

        (2)    The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 116 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(15)  Clause 52, page 47 (after line 7), after subclause (3), insert:

     (3A)    If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(16)  Clause 52, page 47 (lines 12 to 15), omit subclause (5), substitute:

        (5)    The Communications Minister must not make a recommendation under subsection (4) in relation to a payment unless Infrastructure Australia has advised under section 117 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(17)  Clause 52, page 47 (after line 23), after subclause (6), insert:

     (6A)    If the Communications Minister makes a recommendation under subsection (4) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(18)  Clause 52, page 47 (after line 27), after subclause (7), insert:

     (7A)    If the Communications Minister makes a recommendation under subsection (7) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(19)  Clause 52, page 48 (lines 1 to 4), omit subclause (9), substitute:

        (9)    The Energy Minister must not make a recommendation under subsection (8) in relation to a payment unless Infrastructure Australia has advised under section 118 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(20)  Clause 52, page 48 (after line 11), after subclause (10), insert:

   (10A)    If the Energy Minister makes a recommendation under subsection (8) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(21)  Clause 52, page 48 (lines 16 to 19), omit subclause (12), substitute:

      (12)    The Water Minister must not make a recommendation under subsection (11) in relation to a payment unless Infrastructure Australia has advised under section 119 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(22)  Clause 52, page 48 (after line 26), at the end of the clause, add:

      (14)    If the Water Minister makes a recommendation under subsection (11) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(23)  Clause 64, page 55 (lines 14 to 17), omit subclause (2), substitute:

        (2)    The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 116 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(24)  Clause 64, page 55 (after line 24), at the end of the clause, add:

        (4)    If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(25)  Clause 71, page 59 (lines 27 to 30), omit subclause (2), substitute:

        (2)    The Communications Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 117 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(26)  Clause 71, page 60 (after line 8), after subclause (3), insert:

     (3A)    If the Communications Minister makes a recommendation under subsection (1) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(27)  Clause 78, page 63 (lines 13 to 16), omit subclause (2), substitute:

        (2)    The Energy Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 118 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(28)  Clause 78, page 63 (after line 23), at the end of the clause, add:

        (4)    If the Energy Minister makes a recommendation under subsection (1) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(29)  Clause 85, page 67 (lines 13 to 16), omit subclause (2), substitute:

        (2)    The Water Minister must not make a recommendation under subsection (1) in relation to a payment unless Infrastructure Australia has advised under section 119 that:

             (a)    the payment satisfies the relevant BAF evaluation criteria; and

             (b)    if the payment will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the payment will not be made in relation to a project that requires the payment of an upfront fee.

(30)  Clause 85, page 67 (after line 23), at the end of the clause, add:

        (4)    If the Water Minister makes a recommendation under subsection (1) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(31)  Clause 90, page 71 (lines 6 to 9), omit subclause (2), substitute:

        (2)    The Infrastructure Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 116 that:

             (a)    the grant satisfies the relevant BAF evaluation criteria; and

             (b)    if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the grant will not be made in relation to a project that requires the payment of an upfront fee.

(32)  Clause 90, page 71 (after line 16), at the end of the clause, add:

        (4)    If the Infrastructure Minister makes a recommendation under subsection (1) in relation to a payment, the Infrastructure Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(33)  Clause 95, page 74 (lines 9 to 12), omit subclause (2), substitute:

        (2)    The Communications Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 117 that:

             (a)    the grant satisfies the relevant BAF evaluation criteria; and

             (b)    if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the grant will not be made in relation to a project that requires the payment of an upfront fee.

(34)  Clause 95, page 74 (after line 19), at the end of the clause, add:

        (4)    If the Communications Minister makes a recommendation under subsection (1) in relation to a payment, the Communications Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(35)  Clause 100, page 77 (lines 15 to 18), omit subclause (2), substitute:

        (2)    The Energy Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 118 that:

             (a)    the grant satisfies the relevant BAF evaluation criteria; and

             (b)    if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the grant will not be made in relation to a project that requires the payment of an upfront fee.

(36)  Clause 100, page 77 (after line 25), at the end of the clause, add:

        (4)    If the Energy Minister makes a recommendation under subsection (1) in relation to a payment, the Energy Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(37)  Clause 105, page 80 (lines 19 to 22), omit subclause (2), substitute:

        (2)    The Water Minister must not make a recommendation under subsection (1) in relation to a grant unless Infrastructure Australia has advised under section 119 that:

             (a)    the grant satisfies the relevant BAF evaluation criteria; and

             (b)    if the grant will result in the creation or development of an asset—the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (c)    the grant will not be made in relation to a project that requires the payment of an upfront fee.

(38)  Clause 105, page 80 (after line 29), at the end of the clause, add:

        (4)    If the Water Minister makes a recommendation under subsection (1) in relation to a payment, the Water Minister must cause a written statement of reasons for the recommendation to be laid before each House of the Parliament within 9 sitting days of that House.

(39)  Page 90 (after line 22), after Part 2.5, insert:

        (1)    As soon as practicable after the commencement of the first session of each Parliament, a joint committee of members of the Parliament to be known as the Parliamentary Joint Committee on Nation-Building is to be appointed according to the practice of the Parliament with reference to the appointment of members to serve on joint select committees of both Houses of the Parliament.

        (2)    The committee must consist of 12 committee members, namely, 6 members of the Senate appointed by the Senate, at least one of whom is to be nominated by any minority group or groups or independent senator or independent senators, and 6 members of the House of Representatives appointed by that House, provided that there must not be more than 5 committee members in total from either the Government or the Opposition.

        (3)    A member of the Parliament is not eligible for appointment as a committee member if he or she is:

             (a)    a Minister;

             (b)    the President of the Senate;

             (c)    the Speaker of the House of Representatives; or

             (d)    the Deputy-President and Chairman of Committees of the Senate or the Chairman of Committees of the House of Representatives.

        (4)    A committee member ceases to hold office:

             (a)    when the House of Representatives expires by effluxion of time or is dissolved;

             (b)    if he or she becomes the holder of an office specified in any of the paragraphs of subsection (3);

             (c)    if he or she ceases to be a member of the House of the Parliament by which he or she was appointed; or

             (d)    if he or she resigns his or her office as provided by subsection (5) or (6).

        (5)    A committee member appointed by the Senate may resign his or her office by writing signed by him or her and delivered to the President of the Senate.

        (6)    A committee member appointed by the House of Representatives may resign his or her office by writing signed by him or her and delivered to the Speaker of that House.

        (7)    Either House of the Parliament may appoint one of its members to fill a vacancy amongst the committee members appointed by that House.

                 All matters relating to the powers and proceedings of the committee must be determined by resolution of both Houses of the Parliament.

                 The duties of the Committee are:

             (a)    to consider Infrastructure Australia advice that is referred to the committee under section 119B;

             (b)    to consider EIF Advisory Board advice that is referred to the committee under section 171A;

             (c)    to consider HHF Advisory Board advice that is referred to the committee under section 246A;

             (d)    to consider relevant Ministers’ statements of reasons;

             (e)    to report to both Houses of the Parliament, with such comments as it thinks fit, on any advice referred to it under paragraph (a), (b) or (c), and on any matter appertaining to or connected with that advice to which, in the opinion of the committee, the attention of the Parliament should be directed;

              (f)    to examine each annual report on Infrastructure Australia and report to the Parliament on any matter appearing in, or arising out of, any such annual report;

             (g)    to examine trends and changes in infrastructure provision and provision of education, health and hospital services and report to both Houses of the Parliament any change which the committee thinks desirable to:

                   (i)    the functions, structure and operations of Infrastructure Australia, the EIF Advisory Board or the HHF Advisory Board; or

                  (ii)    the operation of the Building Australia Fund, the Education Investment Fund or the Health and Hospitals Fund;

             (h)    to inquire into any question in connection with its duties that is referred to it by either House of the Parliament, and to report to that House upon that question.

(40)  Clause 116, page 91 (lines 11 and 12), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether the owners of the asset will meet all the whole-of-life asset costs, including operational costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(41)  Clause 117, page 91 (lines 23 and 24), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(42)  Clause 118, page 92 (lines 11 and 12), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(43)  Clause 119, page 92 (lines 27 and 28), omit subclause (2), substitute:

        (2)    In giving advice under subsection (1), Infrastructure Australia must:

             (a)    apply the BAF evaluation criteria; and

             (b)    apply the Competitive Neutrality Guidelines, if applicable; and

             (c)    if the payment will result in the creation or development of an asset—take into account whether or not the owner or owners of the asset will pay the whole-of-life costs; and

             (d)    take into account whether or not the project will require the payment of an upfront fee.

(44)  Page 93 (after line 4), after clause 119, insert:

                 On receiving any advice prepared by Infrastructure Australia under subsection 116(1), 117(1), 118(1) or 119(1), the relevant Minister must cause a copy of the advice to be laid before each House of the Parliament within 3 sitting days of that House after the day on which he or she receives the advice.

10:03 pm

Photo of Lindsay TannerLindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I move:

That the amendments be disagreed to.

We have heard the word ‘infrastructure’ pass Liberal lips more times in the past day than we have in the past decade and it has taken a Labor government to pursue its nation-building funds legislation in order to bring about that outcome. We have had a decade or more of neglect by the former government, of ignoring one of the nation’s fundamental economic problems, and the Rudd government is committed to not only redressing the problems that arise from that but also investing for the future in the productivity-generating, job-generating infrastructure that is so crucial to the nation’s economy. The government has resolved to vote against all the amendments that have been passed by the Senate, and I will present the reasons for that in due course.

10:04 pm

Photo of Andrew RobbAndrew Robb (Goldstein, Liberal Party, Shadow Minister for Infrastructure and COAG and Shadow Minister Assisting the Leader on Emissions Trading Design) Share this | | Hansard source

The coalition are very strong believers in infrastructure. That is why we want to improve the Nation-building Funds Bill 2008 and why we have sought with others in the Senate, apart from the government members, to have overwhelming support for a number of major improvements. Our intention was to move amendments that had been advanced in good faith to improve this bill. We have been concerned, and we have made this concern known for a long time, that these funds, these critical billions of dollars of taxpayer funds, could end up being used as a slush fund to bail out failed Labor states. We have got to do things which can preclude that.

Our concern about that was exacerbated by the fact that the Minister for Finance and Deregulation pulled this bill at short notice some weeks ago because of his concern that the Minister for Infrastructure, Transport, Regional Development and Local Government had sought too much discretion. Clearly, the minister for finance lost that battle and we saw the bill that we have got in front of us. We need a number of improvements to provide transparency to this bill. It is quite critical that we get a situation where a joint standing committee on nation building can sit and look at all of the workings and the many recommendations that have come from Infrastructure Australia and the benefit cost analyses.

This is a government whose members have now for some two years told us endlessly about the importance of transparency and accountability. Every day those opposite are on their feet. Now they have got an opportunity to have transparency and accountability. In fact, it was the Prime Minister who said in an answer to me in the House on Monday:

… every family and every community group in the country has, frankly, had a gutful. They want … transparency and they want to know what is actually being delivered by virtue of the taxpayer dollars, which are being invested.

We agree 100 per cent. That is the thrust of these amendments. It will be hypocrisy in the extreme if the government does not support these amendments. The quality of debate by Senator Sherry in the other place was absolutely appalling. It was embarrassing, it was hollow, it was shallow and it was hypocritical. He had no defence to the arguments and the amendments that have been put forward by all of those in the Senate other than the government members. These amendments are quite critical. We cannot have a situation where a state government—or any other government, for that matter—requires an upfront fee and compromises the bill.

We are also keen to see the Communications Fund do what it was intended to do. In good faith, some time ago, the coalition put into a fund in perpetuity some $2 billion. This has been overridden by this government, and the Senate has approved the retention of that fund as it was intended. We insist on the amendments passed in the Senate. These amendments improve the bill, they are consistent with the rhetoric of the government if not the actions of the government and they will give the community the comfort that these vital funds, these taxpayer dollars amounting to billions of dollars, will not become a slush fund to bail out failed Labor states.

Question put:

That the amendments be disagreed to.

10:18 pm

Photo of Lindsay TannerLindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I present the reasons for the House disagreeing to the Senate amendments, and I move:

That the reasons be adopted.

Question agreed to.