Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

These amendments cover two broad thematic areas. With respect to the requirement that all project funding decisions need to ensure there are financial commitments from all asset owners and stakeholders to meet the whole-of-life asset costs, I would point out that under the evaluation criteria framework for the funds, a core principle is that proponents must demonstrate they can achieve established standards in implementation and management. They cannot get beyond first base unless they disclose that. This framework includes that a recipient can support infrastructure once it is built. I think it would be very obvious that, in that criteria framework, you would take into account that the recipient can support the infrastructure once it is built. There would obviously have to be some ongoing arrangement.

The interim evaluation criteria for the Education Investment Fund and the Health and Hospitals Fund require a demonstration of how the infrastructure proposal can continue to operate beyond receiving payments from the funds. It would seem to me to be fundamental common sense that you include that in the evaluation criteria, and we do that.

With respect to the prohibition of the payment of upfront fees on projects in situations where the federal government puts its money in but the state or the private sector do not, funding arrangements will be covered in funding agreements which will protect the Commonwealth’s interests. Prohibiting upfront fees could lead to less coinvestment from certain sectors, such as with the higher education institutions. The evaluation framework requires proponents to demonstrate that they can achieve established standards in implementation and management.

I do not know where Senator Minchin got his information about superannuation funds from. I do spend a fair bit of time with them in discussions around all manner of issues, but this issue around upfront fees and/or financial commitments over whole-of-life asset costs has not been raised with me by superannuation funds. I cannot recall one fund raising it with me. They have raised other matters about infrastructure investment generally, and a whole range of fronts where they experience some alleged frustration, I would have to say—sometimes a legitimate frustration and sometimes other issues I am not quite so sure about. But I have not had them raise any specific concerns about the government’s proposals in evaluation criteria. Indeed, superannuation funds that I have talked to overwhelmingly support the initiatives of the government and are not looking to this sort of amendment. Anyway, I suspect that Senator Milne is going to get up and support it, I recognise the numbers and I will not be calling a division.