Details of the Financial Framework (Supplementary Powers) Amendment (Industry, Innovation and Science Measures No. 1) Regulations 2018

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Industry, Innovation and Science Measures No. 1) Regulations 2018.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after the instrument is registered on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity that will be administered by the Department of Industry, Innovation and Science (the department).

 

New table item 308 establishes legislative authority for government spending on the Community Skills and Development Program (the CSDP).

 

The CSDP is part of the broader $31 million Community Development Package (the Package) of support for the community that will be selected to host the proposed National Radioactive Waste Management Facility (the Facility).  The Package was announced by the Minister for Resources and Northern Australia, Senator the Hon Matthew Canavan, on 23 July 2018. 

 

Under the CSDP, the Government will provide $8 million in grants over four years from 2018-19 (up to a total of $2 million per annum) to position the community to access the socioeconomic benefits of hosting the Facility.  This includes providing grants for: job and skills training; projects that build commercial readiness, economic resilience and capacity; and assisting with the protection and promotion of local Indigenous cultural heritage and economic business development.  This will be achieved through funding programs that upskill local people and businesses and/or attract labour supply and other commercial operations to the region. 

 

Subject to a site being declared, the grants will be available from early 2019 and will be available to local community members and businesses, with the exact geographic coverage to be determined following final selection of a site for the proposed Facility.  Details will be incorporated into the program guidelines.

 

The focus of the initiatives in the Package is to help the host community better leverage the benefits of the construction and operational phases of the Facility, through the building of skills and capacity with the CSDP grants in the short term.  The Package also includes:

*         up to $3 million over 3 years being made available for the local Indigenous community from the Government's Indigenous Advancement Strategy to strengthen Indigenous skills training and cultural heritage protection; and

*         the $20 million National Radioactive Waste Management Facility Community Fund for long-term support of the region once the Facility is fully licensed with funding for projects that benefit the local community and/or region.

 

The CSDP will be delivered by AusIndustry, a division of the department, through the Business Grants Hub, via a competitive grants process.  The grants process will be conducted in accordance with the Commonwealth Grants Rules and Guidelines 2017 with associated merit criteria to ensure that funding is allocated to projects that support the Facility's host community to be economically resilient, as well as building capacity and skills.  There will be targeted, competitive rounds of funding, with specialised eligibility criteria. 

 

The program guidelines and eligibility criteria will be available on the business.gov.au and GrantConnect websites.  It is also proposed that an AusIndustry staff member would be available in the community to answer questions and assist with the application process.  

 

It is expected that the Minister for Resources and Northern Australia (the Minister) will nominate an AusIndustry staff member to be the program delegate who will be responsible for determining successful applicants.  The Regional Consultative Committee that is required to be established under the National Radioactive Waste Management Act 2012 will provide local advice on projects to the AusIndustry program delegate as part of the application process.  The program delegate will have responsibility for the final decision about the projects that will be funded and will inform the Minister of decisions prior to their public release. 

 

All applicants will be notified in writing of the success of their application.  Successful projects will be published on the business.gov.au and radioactivewaste.gov.au websites.  This approach is consistent with the current Community Benefit Program which provides grant funding for communities nominating to host the Facility.

 

The program delegate's decision will be final in all matters, including the approval of applications for funding, the amount of grant funding awarded and the terms and conditions of the funding.

 

The program will not be subject to merits review as it involves the allocation of finite resources and an allocation that has been made to another party would be affected if the original decision was overturned.  The program will implement a clear policy decision made by the Government about how the successful host community will be supported.

 

Total funding of $10.125 million for a period of four years commencing in 2018-19 will be included in the 2018-19 Mid-Year Economic and Fiscal Outlook.  This amount includes funding for administered expenses.  Details will be set out in the Mid-Year Economic and Fiscal Outlook 2018-19. 

 

Funding for the CSDP will come from Program 2: Growing Business Investment and Improving Business Capability, which is part of Outcome 1.  Details will be set out in the relevant portfolio budget documentation.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix)); and

*         the races power (section 51(xxvi)).

 

External affairs power

 

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'.  The external affairs power supports legislation implementing Australia's international obligations under treaties to which it is a party.

 

Australia has obligations under the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management (the Joint Convention).  In particular, Article 1 provides that the objectives of the Joint Convention are:

*         to achieve and maintain a high level of safety worldwide in spent fuel and radioactive waste management, through the enhancement of national measures and international co-operation, including where appropriate, safety-related technical co-operation;

*         to ensure that during all stages of spent fuel and radioactive waste management there are effective defences against potential hazards so that individuals, society and the environment are protected from harmful effects of ionizing radiation, now and in the future, in such a way that the needs and aspirations of the present generation are met without compromising the ability of future generations to meet their needs and aspirations; and

*         to prevent accidents with radiological consequences and to mitigate their consequences should they occur during any stage of spent fuel or radioactive waste management.

 

Article 11 of the Joint Convention requires that a Contracting Party must 'take the appropriate steps to ensure that at all stages of radioactive waste management individuals, society and the environment are adequately protected against radiological and other hazards'.

 

Under the program, the department will make available to the members of the community hosting the Facility, funding opportunities for projects within the host community which support job training and projects that build commercial readiness, economic resilience, capacity and skills to allow the host community to access benefits and opportunities from both the construction and operational phases of the Facility.

 

 

Races power

 

Section 51(xxvi) of the Constitution empowers the Parliament to make laws with respect to 'the people of any race for whom it is deemed necessary to make special laws'. 

 

Under the program, the department will assist the protection and promotion of local Indigenous cultural heritage by making available funding opportunities to Indigenous persons or Indigenous communities of the community hosting the Facility for projects which support the protection and promotion of the local Indigenous culture and heritage.

 

 

 

 

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Industry, Innovation and Science Measures No. 1) Regulations 2018

 

These Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

The Regulations amend Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the Community Skills and Development Program (the Program) which will be administered by the Department of Industry, Innovation and Science. 

 

The Program is part of the broader $31 million Community Development Package (the Package) of support for the community that will be selected to host the proposed National Radioactive Waste Management Facility (the Facility).  The Package was announced by the Minister for Resources and Northern Australia, Senator the Hon Matthew Canavan, on 23 July 2018. 

 

Under the Program, the Government will provide $8 million in grants over four years from 2018-19 ($2 million per annum) to position the community to access the socioeconomic benefits of hosting the Facility.  This includes providing grants for: job and skills training; projects that build commercial readiness, economic resilience and capacity; and assisting with the protection and promotion of local Indigenous cultural heritage and economic business development. 

 

The Minister for Resources and Northern Australia has responsibility for this matter. 

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

 

Conclusion

 

These Regulations are compatible with human rights as they do not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance and the Public Service