EXPLANATORY STATEMENT
Issued by the authority of the Minister for Trade
Export Finance and Insurance Corporation Amendment Act 2007
Proclamation
The Export Finance and Insurance Corporation Amendment Act 2007 (“the Act”) amends the Export Finance and Insurance Corporation Act 1991 by making changes to the governance arrangements of the Export Finance and Insurance Corporation. These changes will result in its current board management structure reflecting more closely the board corporate governance model set out in Mr John Uhrig’s Review of the Corporate Governance of Statutory Authorities and Office Holders.
The table at subsection 2(1) of the Act provides that sections 1 to 3 commence on the day the Act receives Royal Asset. It also provides that Schedule 1 to the Act commences on a day to be fixed by Proclamation. However, if any of the provisions of Schedule 1 do not commence within a period of six months from the date the Act receives the Royal Assent, then those provisions commence on the first day after the end of that six month period. The Act received Royal Assent on 19 February 2007.
The purpose of the Proclamation is to fix 1 July 2007 as the day on which Schedule 1 to the Act commences.
Schedule 1 to the Act enacts the amendments to the Export Finance and Insurance Corporation Act 1991 to provide for the changes to the governance structure of the Export Finance and Insurance Corporation.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was unnecessary for this legislative instrument as the instrument is of a machinery nature only.
Overview
The Export Finance and Insurance Corporation Amendment Act 2007 was enacted to refine the governance arrangements of the Export Finance and Insurance Corporation, aligning them more closely with the corporate governance model recommended by Mr John Uhrig’s Review of the Corporate Governance of Statutory Authorities and Office Holders. This legislative instrument, proclaimed by the authority of the Minister for Trade, is aimed at ensuring that the Corporation’s board management structure adheres to contemporary corporate governance standards, thereby enhancing its operational efficacy and accountability. The Act received Royal Assent on 19 February 2007, and a subsequent proclamation fixed 1 July 2007 as the commencement date for the amendments detailed in Schedule 1 of the Act. These amendments are integral to the ongoing improvement of the Corporation’s governance framework, fostering a more robust and transparent organisational structure.
Scope and Application
The Export Finance and Insurance Corporation Amendment Act 2007 amends the Export Finance and Insurance Corporation Act 1991 to reform the governance arrangements of the Export Finance and Insurance Corporation. The Act applies to the Corporation and its board, aligning its corporate governance model with the recommendations of Mr John Uhrig’s Review of the Corporate Governance of Statutory Authorities and Office Holders. The jurisdictional reach of the Act is federal, given its role in amending a Commonwealth Act. The Act received Royal Assent on 19 February 2007, with sections 1 to 3 commencing on the same day. Schedule 1, which enacts the amendments to the governance structure, commences on 1 July 2007, as fixed by Proclamation, though any delay beyond six months from Royal Assent will see its provisions commence on the first day after that six-month period. The Act operates within the legislative framework established by the Legislative Instruments Act 2003, and it was deemed not to require consultation as it pertains to machinery of government changes.
Key Provisions
The Export Finance and Insurance Corporation Amendment Act 2007, as proclaimed, makes specific changes to the governance structure of the Export Finance and Insurance Corporation. Sections 1 to 3 of the Act (subsection 2(1)) commenced on the day it received Royal Assent, which was 19 February 2007. Meanwhile, Schedule 1 of the Act, which contains the amendments to the Export Finance and Insurance Corporation Act 1991, commenced on 1 July 2007 as per the Proclamation. If any part of Schedule 1 had not commenced within six months from the date of Royal Assent, it would have commenced on the first day after the end of that six-month period. This Proclamation was necessary as it fixed the commencement date for Schedule 1, ensuring the legislative changes were effectively implemented.
The Act imposes several obligations and requirements on the Export Finance and Insurance Corporation, aligning its governance structure with the board corporate governance model recommended by Mr John Uhrig’s Review of the Corporate Governance of Statutory Authorities and Office Holders. This includes ensuring that the Corporation’s board management structure better reflects the outlined governance standards, thereby enhancing accountability, transparency, and overall corporate governance practices. These amendments aim to strengthen the Corporation’s ability to fulfil its role in supporting Australian exports.
Any breach of the provisions set out in the Export Finance and Insurance Corporation Amendment Act 2007 may result in various consequences, although the explanatory statement does not detail specific offences or penalties. Typically, breaches of such legislative requirements could lead to administrative actions, including fines or other penalties as prescribed by the relevant statutes. The exact penalties would depend on the nature of the breach and the specific provisions of the Export Finance and Insurance Corporation Act 1991, as amended by this Act. Ensuring compliance with the governance changes is crucial for maintaining the Corporation’s statutory responsibilities and its effectiveness in supporting the Australian export sector.