Export Finance and Insurance Corporation Act 1991
Export Finance and Insurance Corporation
Section 67(1) Determination 2022
EXPLANATORY STATEMENT
The Determination is a legislative instrument for the purposes of the Legislation Act 2003 (Cth) and is subject to disallowance and sunsetting under sections 42 and 50 of that Act respectively.
Subsection 67(1) of the Export Finance and Insurance Corporation Act 1991 (“the Act’) gives the responsible Minister (the Minister for Trade, Tourism and Investment) the authority to determine in writing principles according to which the Commonwealth will pay to the Export Finance and Insurance Corporation (trading as “Export Finance Australia”), a subsidy in respect of contracts entered into, guarantees given, or loans made by Export Finance Australia in relation to eligible export transactions or in relation to overseas infrastructure development .
Objectives of the instrument
The instrument provides that where Export Finance Australia enters into a transaction on the National Interest Account which may result in Export Finance Australia suffering shortfalls or losses (“losses”), and those losses are not amounts that the Commonwealth is required to pay Export Finance Australia under sections 65 or 66 of the Act, then the Commonwealth will provide additional funding to Export Finance Australia, by way of subsidy, of an amount equal to the overall amount of such losses in a financial year. The subsidy applies where Export Finance Australia has advised the Minister of the potential for losses to occur prior to the Minister approving a transaction under Part 5 of the Act.
This determination will not apply to the extent that Export Finance Australia has given notice under section 64 of the Act that it will bear the whole, or a proportion, of the liability or risk arising from a transaction.
Consultation
The Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet and the Department of Finance were consulted on the preparation of this instrument. Public consultation was not considered necessary as the instrument relates to financial arrangements within the government.
Regulatory impact assessment
The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required for this instrument (OBPR ID 21-01316).
Statement of compatibility with human rights
The instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Export Finance and Insurance Corporation
Section 67(1) Determination 2022
This 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 (Cth).
Overview of the Legislative Instrument
This instrument determines the circumstances in which the Commonwealth will pay a subsidy to Export Finance Australia under s.67(1) in respect of transactions approved by the Minister under Part 5 of the Export Finance and Insurance Corporation Act 1991 (Cth).
Human rights implications
This instrument does not engage any of the applicable rights or freedoms.
Conclusion
This instrument is compatible with human rights as it does not raise any human rights issues.