Details of the Financial Framework (Supplementary Powers) Amendment

(Infrastructure, Transport, Regional Development and Communications Measures No. 6) Regulations 2021

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Infrastructure, Transport, Regional Development and Communications Measures No. 6) Regulations 2021.

 

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

 

Financial Framework (Supplementary Powers) Regulations 1997

 

Item 1 - Schedule 1B (table item 12)

 

This item repeals and replaces table item 12 in Schedule 1B, which provides legislative authority for the Commonwealth's involvement in Moorebank Intermodal Company Limited (MIC), which was established to facilitate the development and operation of an intermodal freight terminal at Moorebank, New South Wales (NSW). MIC is a wholly owned Commonwealth company and a government business enterprise within the Infrastructure, Transport, Regional Development and Communications portfolio.

 

The amendments to table item 12 reflect the Government's decision to expand MIC's objectives to also deliver intermodal terminals in locations in Australia other than Moorebank, NSW, and the company's new name National Intermodal Corporation Limited. The amended table item 12 will provide legislative authority for the Commonwealth's continued involvement in the renamed company National Intermodal Corporation Limited with an expanded remit of operations.

 

MIC was established in 2012 to facilitate the development of the Moorebank Intermodal Terminal, a nationally significant project that will help Sydney manage the expected growth in freight moving through the city. In 2021, the Government has taken a decision to expand MIC's objectives to also deliver intermodal terminals in locations other than Moorebank, NSW, as required to meet the Government's policy objectives. To reflect the company's expanded objectives and the new national role of the company going forward, MIC has been renamed the National Intermodal Corporation Limited.

 

Subject to further Government decisions, this would allow MIC, renamed as the National Intermodal Corporation Limited, to be involved in the delivery of intermodal terminals at both ends of the Inland Rail alignment in Melbourne, Victoria (VIC) and Brisbane, Queensland (QLD). The Commonwealth's involvement through the renamed National Intermodal Corporation Limited would leverage the company's existing capabilities to achieve the Commonwealth's policy goals of maximising the benefits of Inland Rail, reducing congestion on roads, improving modal shift from road to rail, and driving economic productivity.

 

The Department of Infrastructure, Transport, Regional Development and Communications (the department) will seek consents from relevant state governments as part of the negotiations to finalise the delivery packages of the intermodal terminals. The negotiations will include agreements of funding commitments for the intermodal terminals and the supporting infrastructure, and agreements on the land acquisition strategies.

 

The Government is currently undertaking a scoping study into intermodal terminals in Melbourne and Brisbane to support the Inland Rail project. The industry's views (including rail operators, property developers, supply chain logistics companies, and freight rail customers) on a government business enterprise's involvement in delivering intermodal terminals have been tested through the scoping study process. The department and the Department of Finance as shareholder departments have also consulted with the MIC Board of Directors and Executive, who were supportive of the expanded role for MIC.

 

 

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 (Infrastructure, Transport, Regional Development and Communications Measures No. 6) Regulations 2021

 

This disallowable legislative instrument is 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 39B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth, in certain circumstances, to form a company or participate in the formation of a company, or to acquire shares in a company or become a member of a company in circumstances that would result in the company becoming a Commonwealth company. Schedule 1B to the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) specifies the companies and their objects or proposed activities. The powers in the FF(SP) Act in relation to the Commonwealth's involvement in companies may be exercised on behalf of the Commonwealth by the Minister for Finance, and may be delegated to accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.

 

The Financial Framework (Supplementary Powers) Amendment (Infrastructure, Transport, Regional Development and Communications Measures No. 6) Regulations 2021 (the Regulations) amend Schedule 1B to the FF(SP) Regulations to repeal and replace table item 12, which provides legislative authority for the Commonwealth's involvement in Moorebank Intermodal Company Limited (MIC). MIC is a wholly owned Commonwealth company and a government business enterprise within the Infrastructure, Transport, Regional Development and Communications portfolio.

 

The company was established in 2012 to facilitate the development of an intermodal terminal at Moorebank, New South Wales (NSW), a nationally significant project that will help Sydney manage the expected growth in freight moving through the city. In 2021, the Government has taken a decision to expand MIC's objectives to also deliver intermodal terminals in other locations beyond Moorebank, NSW. The expanded activities will leverage existing capabilities within the company to achieve the Commonwealth's policy goals of maximising the benefits of Inland Rail, reducing congestion on roads, improving modal shift from road to rail, and driving economic productivity. To reflect the company's expanded objectives and the new national role of the company going forward, MIC has been renamed as the National Intermodal Corporation Limited.

 

The amendments to table item 12 in Schedule 1B reflect the company's new name National Intermodal Corporation Limited and expansion in the company's objects to facilitate the development and operation of intermodal freight terminals. The amended table item 12 will provide legislative authority for the Commonwealth's continued involvement in the renamed company National Intermodal Corporation Limited with an expanded remit of operations.

 

Human rights implications

 

This disallowable legislative instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This disallowable legislative instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

 

Senator the Hon Simon Birmingham

Minister for Finance