Commonwealth of Australia
Industry Research and Development Act 1986
Clean Technology Food and Foundries Investment Program
Direction No. 1 of 2012
I, GREG COMBET, Minister for Industry and Innovation, acting under Sections 18(A), 19 and 20(1) of the Industry Research and Development Act 1986, issue the following explanatory statement on the Direction to Innovation Australia.
Dated 28 February 2012
The Hon Greg Combet AM MP
Minister for Industry and Innovation
EXPLANATORY STATEMENT
Issued by the authority of the Minister for Industry and Innovation
Industry Research and Development Act 1986
Clean Technology Food and Foundries Investment Program Direction No. 1 of 2012
General Outline
The Australian Government has committed to reducing Australia’s Carbon emissions by between 5 and 25 per cent from 2000 levels by 2020, depending on the scale of global action. The Government has also adopted a new long-term target of reducing Australia’s Carbon emissions by 80 per cent from 2000 levels by 2050.
On 10 July 2011 the Government announced its plan for a Clean Energy Future (the plan). The plan has four elements: a carbon price, renewable energy, energy efficiency and action on land (the Land Sector Package). The plan also details how the Government will support Australian households, businesses and communities to transition to a clean energy future. Further details on the plan can be found on the Clean Energy Future website at: www.cleanenergyfuture.gov.au.
The Clean Technology Food and Foundries Investment Program is a central element of the Government’s comprehensive plan to move Australia to a clean energy future.
The Department is responsible for administering the $200 million Clean Technology Food and Foundries Investment Program. The Government will provide up to $150 million for the food industry and up to $50 million for the foundry industry. The Program will operate over 6 years from 2011-12 to 2016-17. It is a competitive merit based grants program.
The reason for the Direction is to give Innovation Australia an additional function in relation to this new program. Innovation Australia will assess the merit of eligible applications against merit criteria outlined in the Direction and will make its recommendation to the Program Delegate. Applications for grants of $10 million or more that are recommended by Innovation Australia for approval will also be assessed by the Cabinet. Final approval of an application is made by the Program Delegate who, in making the decision, must take into account the recommendation made by the relevant body.
The Clean Technology Food and Foundries Investment Program Guidelines, given by the Minister to the Department, provide the framework for the operation and administration of the program.
Legislative authority
The Direction is issued to Innovation Australia by the Minister for Industry and Innovation (the Minister) acting under sections 18A, 19 and 20 (1) of the Industry Research and Development Act 1986.
Consultation
Innovation Australia was consulted during the development of the Direction, as required under section 20 (2) of the Industry Research and Development Act 1986.
Financial Implications
The Direction has no financial impact. It provides a framework by which Innovation Australia is to assess the merit of eligible applications. The Program Delegate makes the final decision in approving applications, and in determining the terms and conditions of funding agreements entered into under the Clean Technology Food and Foundries Investment Program.
Date of effect
The Direction commences the day on which particulars of the Direction is published in the Gazette and registered in the Federal Register of Legislative Instruments.
Notes on Provisions of the Direction
PART 1 – PRELIMINARY
Name of Direction
Clause 1
The Direction constitutes the Clean Technology Food and Foundries Investment Program Direction No. 1 of 2012.
Commencement
Clause 2
The Direction commences on the day on which particulars of the Direction are published in the Gazette and registered in the Federal Register of Legislative Instruments.
Object of this Direction
Clause 3
The object of the Direction is to give Innovation Australia directions in relation to an additional function, namely the merit assessment of applications under the Clean Technology Food and Foundries Investment Program, and includes the policies and practices that Innovation Australia must follow in the performance of this function.
Introduction
Clause 4
This clause provides an outline of the administration of the Clean Technology Food and Foundries Investment Program.
Innovation Australia to have regard to policy objectives
Clauses 5 to 6
These clauses set out the policy objective of the Clean Technology Food and Foundries Investment Program. Innovation Australia, in carrying out its function under the Direction, must take into account this policy objective.
Program Outcomes
Clause 7
This clause provides for the outcome of the Clean Technology Food and Foundries Investment Program and how it is to be achieved.
Interpretation
Clause 8
This clause defines key terms used in the Direction.
PART 2 – ASSESSMENT OF APPLICATIONS
Procedure
Clause 9
Innovation Australia must assess each eligible application against the merit criteria set out in the Direction, except where clause 15 applies.
Clause 10
If an application recommended by Innovation Australia for approval is for a grant of $10 million or more, the Cabinet of the Australian Government will be responsible for its final merit assessment.
Clause 11
Innovation Australia must consider eligible applications as soon as practicable after those applications have been provided to Innovation Australia.
Clause 12
Innovation Australia must consider policy issues relevant to the merit criteria when assessing applications.
Clause 13
Innovation Australia may request additional information from an applicant after the lodgement of an application, where such information is needed to assist in assessing merit or clarify issues of eligibility.
Clause 14
On the basis of the merit of an application, Innovation Australia may recommend to the Program Delegate that the amount of funding be varied from what the applicant has applied for, and/or that approval of the application be subject to particular conditions.
Clause 15
Innovation Australia may decide not to assess an application that has low merit against one or more of the merit criteria, or where it considers the activities relating to the application to be ineligible.
Clause 16
Innovation Australia’s assessment of applications must be based on the merit criteria specified in the Program Guidelines.
Clause 17
Merit indicators for each merit criterion will be provided in the Customer Guidelines. These indicators assist applicants in preparing a claim against each merit criterion, and they provide a more detailed assessment framework for Innovation Australia. In its merit assessment of applications, Innovation Australia must take into account the weighting of merit criteria provided in the Customer Guidelines.
Clause 18
Innovation Australia may be asked to provide advice on the development of, or any amendment to, the indicators for the merit criteria.
Clause 19
Innovation Australia may be asked to provide advice on the weighting of merit criteria.
PART 3 – ASSESSMENT OF PROPOSALS FOR VARIATION TO THE AGREED PROJECT
Clause 20
Innovation Australia may be asked to assess a proposal to make changes to an approved project, such as an extension of time to complete the project or change of project milestones.
Clause 21
Innovation Australia must assess proposals to make changes to an approved project as soon as is practicable and provide the assessment to the Program Delegate.
Clause 22
This clause lists the matters to be considered by Innovation Australia when making an assessment under clause 20.
PART 4 – OTHER ADVICE RELATED TO THE ADMINISTRATION OF THE Clean Technology Investment Program
Clause 23
Innovation Australia may be asked to provide assessments of technical matters in relation to applications, activities and projects. The clause lists these matters.
Clause 24
In carrying out technical assessments under clause 23, Innovation Australia will take into account any relevant policies or guidelines relating to the administration of the Clean Technology Food and Foundries Investment Program that are issued under the Program Guidelines.
Clause 25
Innovation Australia, on receiving a request under clause 23, is to conduct the assessment within a reasonable time.
Clause 26
The Program Delegate may request Innovation Australia’s advice on other matters relevant to the administration of the Clean Technology Food and Foundries Investment Program, including, but not limited to, the ones listed in this clause.
PART 5 – INNOVATION AUSTRALIA TO PROVIDE ADVICE ON POLICIES AND OPERATIONS OF THE PROGRAM
Clause 27
Innovation Australia may advise the Minister, or the Minister may request its advice, on non-financial administration matters relating to the Clean Technology Food and Foundries Investment Program, including the extent to which the program is meeting its objective.
Clause 28
Innovation Australia may collect and analyse data on the performance of the Clean Technology Food and Foundries Investment Program and provide advice to the Minister on that performance, and must cooperate with any independent evaluation of the program.