Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Hansard source

We were speaking earlier about information that is provided to affected entities, including state, territory and local governments and universities. There will be a very significant level of engagement and consultation with the states and territories. That is a feature of the bill, and it is a very significant step forward. Those discussions will be ongoing, but I don't think you can presume that our positions on foreign policy and foreign relations remain static. They have to change; and they do change, due to a range of domestic and international factors.

I think this will provide greater transparency than we have seen before in engagement on questions of foreign policy in a context of constant communication, considerable consultation and transparency. That's one of the reasons we have established a Foreign Arrangements Taskforce within the Department of Foreign Affairs and Trade. Their role is to work closely with state and territory entities to implement the scheme, including to assist them to understand Australia's foreign policy objectives. That consultation is demonstrated by the 60 or so stakeholder discussions we have held since the bill was introduced. Senator Rice, I think I was speaking to you earlier about a number of those stakeholder consultations across local government at the time.

I also think it's important to note the matters that the minister has to take into account. Looking to the bill itself, section 51(2) states:

(2)   When making the decision, the Minister must take into account the following matters in relation to the State or Territory to which the arrangement relates:

  (a)   the importance of the arrangement in assisting or enhancing the functioning of the State or Territory;

  (b)   the extent of the performance of the arrangement;

  (c)   whether the declaration would impair the continued existence of the State or Territory as an independent entity;

  (d)   whether the declaration would significantly curtail or interfere with the capacity of the State or Territory to function as a government;

  (e)   whether the declaration would have significant financial consequences for the State or Territory;

  (f)   whether the declaration would impede the acquisition of goods or services by the State or Territory, including, for example, for the purposes of infrastructure;

  (g)   whether the declaration would have an effect on the capacity of the State or Territory to complete an existing project that is to be delivered under the arrangement …

That guidance on matters that the minister must take into account is also very important for states and territories and associated entities which will be subject to the act.