EXPLANATORY STATEMENT
Issued by the authority of the Minister for Trade
Australian Trade Commission Legislation Amendment Act 2006
Proclamation
The Australian Trade Commission Legislation Amendment Act 2006 (the Act) makes changes to the governance arrangements for the Australian Trade Commission (Austrade) to give effect to the Government’s response to the Review of the Corporate Governance of Statutory Authorities and Office Holders conducted by Mr John Uhrig, AC.
Part 1 of Schedule 1 to the Act makes changes to the governance arrangements for Austrade by making amendments to the Australian Trade Commission Act 1985. Other items in Schedules 1 and 2 to the Act make consequential amendments to other Acts and enact transitional provisions for the effective ongoing operation of Austrade.
Subsection 2(1) of the Act provides that Part 1 of Schedule 1 to the Act commences on a day to be fixed by Proclamation. If any of the provisions of Part 1 of Schedule 1 do not commence within a period of six months from the day the Act receives the Royal Assent, then those provisions commence on the first day after the end of that six month period.
The other items in Schedules 1 and 2 of the Act commence at the same time as the commencement date of Part 1 of Schedule 1 subject to the date of commencement of the Export Market Development Grants Legislation Amendment Act 2006. This is necessary because of the significant cross-referencing between the Australian Trade Commission Act 1985 and the Export Market Development Grants Act 1997. Both Acts are subject to amendment and have been under consideration by the Parliament concurrently. The commencement Schedule is timed to ensure that regardless of which amendment Act commences first, the resulting amendments in both Acts will accurately reflect the intentions of the amending Acts.
The purpose of the Proclamation is to fix 1 July 2006 as the day on which Part 1 of Schedule 1 to the Act commences. Transitional arrangements for Austrade are proceeding on the basis that the legislation will be proclaimed to commence on 1 July 2006. The proposed commencement date is the date on which Austrade staff will be transferred to employment arrangements under the Public Service Act 1999, become a prescribed agency for the purposes of the Financial Management and Accountability Act 1997, and the governance Board will be abolished and an executive management structure created.
The commencement date will coincide with the financial year to facilitate a smooth transition meeting legislative and administrative reporting requirements.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Australian Trade Commission Legislation Amendment Act 2006 was enacted to overhaul the governance arrangements for the Australian Trade Commission (Austrade), aligning them with the recommendations made by Mr John Uhrig, AC, in the Review of the Corporate Governance of Statutory Authorities and Office Holders. This Act, which was issued under the authority of the Minister for Trade, seeks to address the identified gaps in Austrade's governance structure by amending the Australian Trade Commission Act 1985. The purpose is to ensure that Austrade operates under a more robust and transparent framework, enhancing its efficiency and effectiveness in promoting Australian trade and investment. The Act also includes consequential amendments to other relevant legislation and establishes transitional provisions to facilitate a smooth and effective transition for Austrade, including the transfer of staff under the Public Service Act 1999 and the establishment of an executive management structure.
Scope and Application
The Australian Trade Commission Legislation Amendment Act 2006 applies to the Australian Trade Commission (Austrade) and is intended to implement changes in the governance arrangements for Austrade as recommended by the Review of the Corporate Governance of Statutory Authorities and Office Holders, conducted by Mr John Uhrig, AC. The Act makes specific amendments to the Australian Trade Commission Act 1985, including the abolition of the Austrade Board and the establishment of an executive management structure. This Act also includes consequential amendments to other related Acts and provisions for transitional arrangements to ensure the smooth operation of Austrade during the transition period. The jurisdictional reach of the Act is national, as it involves the amendment of federal legislation that governs a Commonwealth entity. The Act does not specify exclusions or thresholds within the text provided but allows for the commencement of its provisions to be determined by Proclamation, with a default commencement date set for 1 July 2006 if not otherwise fixed. The Act’s subordinate instruments, such as regulations or orders, may further extend or restrict its application, ensuring alignment with other related legislative amendments.
Key Provisions
The Australian Trade Commission Legislation Amendment Act 2006 (Act) modifies the governance structure of the Australian Trade Commission (Austrade), as detailed in Part 1 of Schedule 1 (section 2(1)). These amendments are in response to the Review of the Corporate Governance of Statutory Authorities and Office Holders conducted by Mr John Uhrig, AC. The primary objective is to align Austrade’s governance with modern best practices and regulatory standards. The commencement of these changes is fixed by Proclamation as 1 July 2006, ensuring that Austrade transitions to a new governance framework in a coordinated manner.
The Act imposes specific obligations on Austrade, including the transfer of its staff to employment arrangements under the Public Service Act 1999 (section 2(1)). This change is significant as it places Austrade under the broader regulatory and administrative framework of the public service, enhancing its accountability and efficiency. Additionally, Austrade will become a prescribed agency for the purposes of the Financial Management and Accountability Act 1997, meaning it will be subject to stricter financial oversight and reporting requirements. The governance Board will be abolished, and an executive management structure will be established to replace it, reflecting a shift towards a more streamlined and executive-driven management approach.
Failure to comply with the provisions of the Act may result in various legal consequences. While the Act itself does not explicitly list specific offences or penalties, breaches of the amended governance requirements could potentially lead to legal actions under other relevant Acts, such as the Public Service Act 1999 or the Financial Management and Accountability Act 1997. These Acts may impose administrative penalties, financial sanctions, or other corrective measures for non-compliance. The precise penalties would depend on the nature and severity of the breach, as well as the provisions of the applicable Acts. The overarching aim of these provisions is to ensure that Austrade operates within the intended legislative framework, thereby enhancing its governance and effectiveness.