Senate debates

Tuesday, 13 February 2018

Bills

Prime Minister and Cabinet Legislation Amendment (2017 Measures No. 1) Bill 2017; Second Reading

12:36 pm

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Hansard source

I thank senators for their contribution s on this legislation, both in the debate in this chamber and through our discussions since the bill was introduced. This bill, the Prime Minister and Cabinet Legislation Amendment (2017 Measures No. 1) Bill 2017,makes important amendments to legislation in the Indigenous Affairs portfolio, as well as to legislation that administers the operation of the Australian National Audit Office and the operation of royal commissions.

The bill will make amendments to the Aboriginal and Torres Strait Islander Commission Amendment Act 2005, or the ATSIC Amendment Act , which will allow the Commonwealth to be more flexible in its approach to caveats that are held over Aboriginal and Torres Strait Islander grant - funded assets. The Commonwealth uses a range of mechanism s to ensure its rights and interests , and those of Indigenous persons intended to benefit from the grants , are protected. This practice has led to some inconsistent Commonwealth policies, particularly in the treatment of current and legacy interests.

N ew Indigenous or mainstream grant-funded properties are managed contractually through a risk based approach for time - limited periods of up to 20 years and in line with the Public Governance, Performance and Accountability Act 2013 . However, properties that were grant funded during the Aboriginal and Torres Strait Islander Commission, or ATSIC, era are subject to the ATSIC Amendment Act of 2005 , which requires the Commonwealth to keep its interest until an organisation wishes to dispose of the property. This impacts on a number of organisations, like the Rumbala ra Aboriginal Co - operative, Aboriginal Housing Victoria, Jupiter Mosman Housing Company and the organisation mentioned by my colleague Senator Dodson, the Murchison Regional Aboriginal Corporation . They are examples of the over 420 Indigenous organisations that own 2,850 properties with caveats over them.

U pon ATSIC's abolition in 2005, its interests were split between consenting authorities , who assume d decision - making authority regarding specific properties. The consenting authorities include Commonwealth departments, Indigenous Business Australia and the Indigenous Land Corporation. The current restrictions on these assets mean that Indigenous organisations have limited flexibility to deal with their assets and have been restricted in how they can manage their assets. For example, banks will not usually lend against a property that has such a caveat , so Indigenous organisations are restricted in their ability to use their assets to access finance or consider alternative approaches to manage their assets. I'm quite sure that wasn't contemplated as part of what the arrangements would provide.

The amendments will allow for organisations to proactively apply for their caveats to be released, which will support an increase in autonomy and economic independence for those organisations or better enable Aboriginal and Torres Strait Islander organisations to more freely use their assets for economic development, and of course reduce red tape for Indigenous organisations. Importantly, the power to remove a caveat is limited to the appropriate consenting authority, and, as the bill states:

The appropriate consenting authority may give the individual or body written notice stating that the appropriate consenting authority’s consent is not required in relation to any disposal of the interest by the individual or body.

That means, clearly, that only Indigenous Business Australia can give consent to remove a caveat that it holds, only the Indigenous Land Corporation can give consent to remove a caveat that it holds and only the Department of Prime Minister and Cabinet can give consent to remove a caveat that it holds. Senator Dodson asked me to make this clear in the summing-up speech, and I hope that has been made clear. I take the opportunity to thank Senator Dodson. I think it's been very useful to work to ensure we don't create an unintended outcome again in the future.

These amendments respond to the 2015 Council of Australian Governments' investigation into Indigenous land use recommendation that the Commonwealth review remaining caveats on Aboriginal and Torres Strait Islander Commission properties and remove unnecessary restrictions to support economic development for Indigenous landowners. The recommendation was developed with an expert Indigenous working group to ensure the views and support of Indigenous landholders and native title holders were taken into account. For example, take the view of Freddie Pascoe, the CEO of Bynoe Community Advancement Co-operative Society, who has strongly expressed his support for this legislation. These reforms will give Bynoe the opportunity to leverage the equity invested in the properties, over which the Commonwealth currently has an interest in 64 titles, and enable Bynoe to continue to pursue their economic aspirations for the benefit of the Normanton community, where those titles are. This is a practical example of self-determination by a strong and forward-thinking Aboriginal and Torres Strait Islander organisation.

The Commonwealth will adopt a risk based approach to determine if its interests should be waived. The first step will be to develop new guidelines to support the legislative changes. We're consulting with Indigenous stakeholders, including the National Congress of Australia's First Peoples and other Commonwealth consenting authorities on those guidelines, including the Indigenous Land Corporation and Indigenous Business Australia. We will also be working with the opposition, as they've assisted us in the past.

These amendments are consistent with our approach to work with Indigenous Australians to deliver better outcomes. These amendments will empower local Aboriginal and Torres Strait Islander organisations that have these historical caveats to allow them to get on with their job. We need to treat them in the way that they see the best fit. These amendments will ensure Indigenous organisations that received funding to purchase an asset 20 to 30 years ago are treated in much the same way as any other non-Indigenous organisations, and, indeed, Indigenous organisations, that receive grant funding from governments now. We will ensure we work carefully with organisations to determine if interests should be waived to ensure that we do protect the Indigenous estate. The government strongly believe we must empower Indigenous Australians to make their decisions about their own economic future if we're to maximise our progress in this area.

The bill also amends the Aboriginal and Torres Strait Islander Act of 2005, the ATSI Act, to repeal the requirement for the responsible minister to table Indigenous Business Australia's corporate plan. These obligations are duplicated in the requirement for Indigenous Business Australia to table an annual report, which mirrors the requirements of a corporate plan in the Public Governance, Performance and Accountability Act 2013. The repealing of the requirement will reduce red tape and streamline processes. It's being supported by Indigenous Business Australia.

Finally, in the Indigenous Affairs portfolio, the bill will repeal two redundant acts: the Aboriginal and Torres Strait Islanders (Queensland Reserves and Communities Self-management) Act 1978 and the Council for Aboriginal Reconciliation Act 1991. The Aboriginal and Torres Strait Islanders (Queensland Reserves and Communities Self-management) Act 1978 is proposed to be repealed. Since the Queensland parliament re-enacted the Local Government (Aboriginal Lands) Act 1978, it has not been possible for the Commonwealth to declare reserves for the purpose of the Queensland reserves act. That legislation is, therefore, redundant and is proposed to be repealed simply to reduce the size of the statute book. The Council for Aboriginal Reconciliation ceased in 2001, after it produced its final report in 2002. There are no ongoing arrangements or appointments or other measures under the Council for Aboriginal Reconciliation, and this legislation is also proposed to be repealed to reduce the size of the statute book.

The bill also amends the Royal Commissions Act 1902 to increase penalties for failure to comply with compulsory notices issued by a commissioner to attend or produce documents. Another change is to give a commissioner power to compel a person to provide a written statement. These changes implement recommendations of the Royal Commission into Trade Union Governance and Corruption and the Royal Commission into the Home Insulation Program. Finally, it makes a number of amendments to the Auditor-General Act 1997. These amendments include changes to align annual reporting requirements with responsibilities to the parliament, consistent with the independence of the Auditor-General.

This bill is part of our commitment to reduce red tape in legislation and improve the administration of government. It delivers on our commitment to work with Indigenous communities and to empower them to pursue their own future. I commend the bill to the house.

Question agreed to.

Bill read a second time.

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