Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2004-2005-2006-2007
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TOURISM AUSTRALIA AMENDMENT BILL 2007
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Small Business and Tourism,
the Hon Fran Bailey MP)
1
TOURISM AUSTRALIA AMENDMENT BILL 2007
OUTLINE
The Tourism Australia Amendment Bill 2007 (referred to in this Explanatory
Memorandum as the "Bill") implements recommendations arising from the review of
the corporate governance arrangements of Tourism Australia, conducted by the
Minister for Small Business and Tourism. These amendments are part of the
Government's response to Mr John Uhrig's Review of the Corporate Governance of
Statutory Authorities and Office Holders (Uhrig), which examined and reported on
improving the structures and the governance practices of such entities.
The Tourism Australia Act 2004 establishes Tourism Australia and defines the
objectives, governance and management framework for the organisation. The
Minister's assessment identified that the existing structure of a statutory authority
operating under the Commonwealth Authorities and Companies Act 1997 with
governance by a Board is consistent with the Uhrig recommendations. This recognises
the commercial focus of the body and the need for it to operate flexibly in a
commercial environment.
The Bill will:
remove the position of Government member from the Board;
broaden Ministerial power to terminate the appointment of Board members;
replace the process of Ministerial approval of the corporate plan and operational
plan with one of endorsement, while maintaining that the plans do not come into
force until Ministerial endorsement is received; and
reduce the threshold for Ministerial approval of contracts from $5 million to $3
million.
The above amendments will bring the existing governance arrangements more closely
in line with best practice under the Board template as identified in Uhrig, increasing
autonomy of the Board of Tourism Australia, while providing increased
accountability to the Parliament commensurate with the high levels of public funding
for Tourism Australia's activities.
These changes do not amend the functions or objectives of Tourism Australia nor its
service delivery to Australian business or the community. The Bill includes
transitional arrangements that will ensure these governance changes do not disrupt
service delivery.
Further enhancements identified in the assessment have been conveyed to the Board
of Tourism Australia in a Statement of Expectations issued by the Minister for Small
Business and Tourism.
FINANCIAL IMPACT STATEMENT
The Bill will have no financial impact.
2
NOTES ON CLAUSES
Clause 1 - Short title
1. Clause 1 is a formal provision specifying the short title.
Clause 2 - Commencement
2. This Act will commence on the day after it receives Royal Assent.
Clause 3 - Schedule(s)
3. This clause would provide that each Act that is specified in the Schedules to
this Act is amended or repealed as set out in the applicable Schedules. Any other item
in a Schedule to this Act has effect according to its terms.
Schedule 1 - Amendment of the Tourism Australia Act 2004
Item 1 - Section 3 (definition of government member)
4. This item removes the definition of government member.
Item 2 - Paragraph 12(c)
5. In line with best practice recommendations under the Uhrig Report, the
Minister will no longer appoint a government member to the Board. This will remove
the potential for any conflict of interest for the government member and reduce the
number of Board members to nine, within the optimum range identified by Uhrig.
This item repeals the requirement for the Board to include a government member.
Item 3 - Subsection 14(1)
6. Removes reference to subsection (1), as subsections (2) and (3) are to be
repealed.
Item 4 - Subsection 14(1)
7. Removes reference to the government member.
Item 5 - Subsections 14(2) and (3)
8. Repeals the terms of appointment or engagement of the government member
on the Board.
Item 6 - Subsection 15(1)
9. Removes reference to the government member.
3
Item 7 - Subsection 15(2)
10. Repeals the basis and terms of appointment of the government member.
Item 8 - Subsection 16(2)
11. Removes reference to the government member.
Item 9 - Subsection 20(1)
12. Repeals the Minister's power to terminate the appointment of the government
member.
Item 10 - Subsections 20(2) and (3)
13. Removes reference to the government member.
Item 11 - 20A Termination of appointment at instance of Board or for non-
performance etc.
14. New section 20(A)(1) supplements the existing grounds in section 20 under
which the appointment of a member of the Board of Tourism Australia may be
terminated. Under new subsection 20A(1), the Minister may terminate the
appointment of a Board member if;
(a) the Board has agreed that the member's appointment should be terminated;
(b) the Board has convened a special meeting to discuss the termination of
the member, and has passed a resolution at this meeting that the member's
appointment to the Board be terminated; and
(c) the resolution has been passed by a minimum two-thirds of the Board
members present, excluding the member whose termination of appointment is
being considered.
Subsection 20A(2).
15. New subsection 20A (2) provides the Minister with the capacity to terminate
the appointment of a Board member if the Minister is satisfied:
(a) that it is not in the best interests of Tourism Australia that the appointed
member continue in office; or
(b) the performance of the member has been unsatisfactory for a significant
period.
16. The Australian Government invests significant resources into Tourism
Australia, with the Board being critical to Tourism Australia's success. Enabling the
Minister to terminate the appointment of a Board member in appropriate
circumstances ensures that Board members are accountable for the performance of
Tourism Australia.
Item 12 - Subsection 23(3)
17. Removes reference to the government member.
4
Item 13 - Section 35 Ministers Response to Corporate Plan
18. This item repeals and replaces section 35.
19. The Uhrig report recommends that the responsible Minister's role be to
provide clarity in the broad strategic direction of the statutory authority, clearly
outlining the expectations of the Government. This may be achieved through various
mechanisms, including the development of a Statement of Expectations, and
Ministerial endorsement of the corporate and annual operational plan.
20. Section 35 will be substituted with the following.
Section 35(1)
21. The Board is required to give the corporate plan to the Minister for
endorsement.
Subsection 35(2)
22. The Minister can ask the Board, in writing, for a copy of the corporate plan, in
a format and by a date specified by the Minister. The Board must abide by this
request.
Subsection 35(3)
23. The Minister can ask the Board, in writing, in a format and by a date specified
by the Minister for:
(a) further information or explanation on items in the corporate plan; and
(b) further information or explanation on items that may not be included in the
plan but are relevant to the corporate plan.
Subsection 35(4)
24. The Board;
(a) must abide by the request from the Minister for further information or
explanation on the corporate plan; and
(b) if during this process, the corporate plan has been amended the Board may
provide the Minister with a replacement corporate plan for endorsement.
Subsection 35(5)
25. When deciding whether or not to endorse the corporate plan, the Minister must
consider if it is inconsistent with government policy. The Minister may write to the
Board advising of any inconsistencies before deciding whether or not to endorse the
plan.
5
Section 35(6)
26. The Minister is required to advise the Board, in writing, of his or her decision
to endorse or not endorse the corporate plan.
Section 35(7)
27. The corporate plan comes into force once the Board has been notified, in
writing, of the Minister's endorsement.
Item 14 - Paragraph 36(1)(b)
28. Removes approval and replaces it with endorsement.
Item 15 - Subsection 36(5)
29. Removes approval and replaces it with endorsement.
Item 16 - Section 37 Ministers response to the Annual Operational Plan
30. As per amendments under section 35, the Minister is required to endorse the
annual operational plan rather than approve it. This item repeals section 37 and
replaces it with the following.
Subsection 37(1)
31. After receiving the annual operational plan, the Minister can ask the Board, in
writing, in a format and by a date specified by the Minister for:
(a) further explanation on the annual operational plan; and
(b) further explanation on items that may not be included in the annual
operational plan but are relevant to the plan.
Subsection 37(2)
32. The Board:
(a) must abide by the request from the Minister for further explanation on the
plan; and
(b) if during this process, the annual operational plan has been amended the
Board may provide the Minister with a replacement annual operational plan
for endorsement.
Subsection 37(3)
33. When deciding whether or not to endorse the annual operational plan, the
Minister must consider if it is inconsistent with:
(a) the corporate plan; and
(b) government policy.
The Minister may write to the Board advising of any inconsistencies before deciding
whether or not to endorse the annual operational plan.
6
Section 37(4)
34. The Minister is required to provide the Board, in writing, of his or her decision
to endorse or not endorse the annual operational plan.
Section 37(5)
35. The annual operational plan comes into force once the Board has been notified
in writing of the Minister's endorsement.
Item 17 - Transitional
36. Part 4 of the Tourism Australia Act 2004 will continue to apply to a corporate
plan or revised corporate plan, or annual operational plan or revised operational plan,
given to the Minister before the enactment of the Tourism Australia Amendment Bill
2007.
Item 18 - Paragraph 59(1)(a)
37. This item changes the threshold for Ministerial approval of contracts from $5
million to $3 million. While Tourism Australia is already required to comply with
Australian Government procurement guidelines, this item further strengthens
accountability commensurate with the high level of Australian Government funding
of the organisation.
Item 19 - Subsection 60(3) Note
38. This is a minor technical amendment sub-sequential to the enactment of the
Legislative Instruments Act 2003. The Acts Interpretation Act 1901 (AIA) has been
replaced with the Legislative Instruments Act 2003 (LIA).
Index]
[Search]
[Download]
[Bill]
[Help]