Commonwealth of Australia Explanatory Memoranda

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REGIONAL INVESTMENT CORPORATION BILL 2018

                                     2016-2017




       THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                         HOUSE OF REPRESENTATIVES




            REGIONAL INVESTMENT CORPORATION BILL 2017




             SUPPLEMENTARY EXPLANATORY MEMORANDUM


      AMENDMENTS AND NEW CLAUSES TO BE MOVED ON BEHALF
                    OF THE GOVERNMENT




(Circulated by authority of the Deputy Prime Minister and Minister for Agriculture and
                    Water Resources, the Hon. Barnaby Joyce MP)
AMENDMENTS TO THE REGIONAL INVESTMENT CORPORATION
                     BILL 2017
GENERAL OUTLINE
The proposed amendments to the Regional Investment Corporation Bill 2017 (the Bill) will
change the size of the Board of the Corporation from three members to between three and
five members (including the Chair), and provide clarity on the number of Board members
that constitute a quorum. The amendments also clarify the circumstances that constitute a
vacancy in the office of a Board member.
Increasing the size of the Board will ensure the government can appoint a Board with the
breadth of qualifications, skills and experience required to oversee the Corporation's
functions.

FINANCIAL IMPACT
The proposed amendments will not alter the financial impact of the Bill. The farm business
concessional loans programme and National Water Infrastructure Loan Facility are intended
to be budget neutral over their life, with the establishment and operating costs of the
Corporation (including the costs of the Board) to be recovered through the interest charged on
loans to farm businesses and state and territory governments.

STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The proposed amendments 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. The full Statement of Compatibility with Human Rights
is at the end of this supplementary explanatory memorandum.




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NOTES ON AMENDMENTS

Amendment 1 - will insert in clause 4 a definition of vacancy. This is required to give effect
to Amendment 3.
Amendment 2 - will omit clause 16 in its entirety and substitute a new clause 16, which
specifies that the Board consists of the Chair and at least two, and no more than four, other
members.
The purpose of this amendment is to ensure the government can appoint a Board with the
breadth of qualifications, skills and experience needed to oversee the Corporation's functions.
Amendment 3 - adds a new subclause 20(3), which clarifies the circumstances that
constitute a vacancy in the office of a Board member for the purposes of the Bill, and in the
membership of the body under the Acts Interpretation Act 1901 (AI Act). This amendment is
required as the Bill will now provide for a range of Board members rather than a fixed
number (as provided for in Amendment 2).
New subclause 20(3) provides that for the purposes of a reference in the Bill to a vacancy in
the office of a Board member, there are taken to be four offices of Board members in addition
to the Chair. This enables the number of offices which are vacant to be determined, despite
fluctuations in the number of members who have been appointed in addition to the Chair.
New subclause 20(3) also provides that for the purposes of a reference in the AI Act to a
vacancy in the membership of a body, there are taken to be four Board member offices in
addition to the Chair. Subsection 33(2B) of the AI Act provides that the exercise of a power
or the performance of a function or duty of the Board is not affected merely because of a
vacancy or vacancies in the members of the Board.
Amendment 4 - will omit clause 29 in its entirety and substitute a new clause 29, which
clarifies that a quorum will be constituted by two members for a three person Board, or three
members for a four or five person Board. This provision continues the requirement that a
majority of the Board is to be present to constitute a quorum. This amendment is required to
ensure that the quorum provisions in the Bill are clear where the Board can range in size (as
provided for in Amendment 2).




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      STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

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

             Amendments to the Regional Investment Corporation Bill 2017

The proposed amendments to the Bill 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 amendments
The Regional Investment Corporation Bill 2017 (the Bill) will establish a Regional
Investment Corporation (the Corporation). The Bill prescribes the Corporation's functions
and governance arrangements, roles for responsible Ministers, and miscellaneous matters
such as delegations and a review of the operation of the Act.
The proposed amendments to the Bill will change the size of the Board of the Corporation
from three members to between three and five members (including the Chair), and provide
clarity on the number of Board members that constitute a quorum. The amendments also
clarify the circumstances that constitute a vacancy in the office of a Board member.
Human rights implications
The proposed amendments to the Bill do not engage any of the applicable rights or freedoms
outlined in the Human Rights (Parliamentary Scrutiny) Act 2011.
Conclusion
The proposed amendments are compatible with human rights as they do not raise any human
rights issues.


The Hon. Barnaby Joyce MP, Deputy Prime Minister and Minister for Agriculture and
                               Water Resources




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