EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Agriculture and Water Resources Measures No. 2) Regulations 2017
The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies. The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations). The FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.
Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations. Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations. Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs.
Schedule 1 to the Regulations amends Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide grants to support Casino Beef Week. The funding, which was initiated in a 2016 federal election commitment to support the delivery of this event, will be administered by the Department of Agriculture and Water Resources.
Casino Beef Week is an annual event held in Casino in northern New South Wales. The event highlights beef cattle production, beef and related products, marketing and trade. Although the program changes each year, it consistently features cattle competitions, beef product competitions and butchering demonstrations, and the Beef Industry Day focussing on innovations in the Australian beef industry. The event also includes a range of activities that demonstrate the vitality of rural Australian beef communities.
Details of the Regulations are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.
The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Regulations commence on the day after registration on the Federal Register of Legislation.
Consultation
In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources.
A regulation impact statement is not required as the Regulations only apply to non‑corporate Commonwealth entities and do not adversely affect the private sector.
Details of the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 2) Regulations 2017
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 2) Regulations 2017.
Section 2 – Commencement
This section provides that the Regulations commence on the day after registration 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 Schedules to the Regulations.
Schedule 1 – Amendments
Item 1 – In the appropriate position in Part 3 of Schedule 1AB (table)
This item adds a new table item to Part 3 of Schedule 1AB to the Financial Framework (Supplementary Powers) Regulations 1997.
New table item 15 establishes legislative authority for government spending on grants to support Casino Beef Week. The grants will be administered by the Department of Agriculture and Water Resources.
Casino Beef Week is an annual event held in northern New South Wales. The event highlights beef cattle production, beef and related products, marketing and trade. Although the program changes each year, it consistently features cattle competitions, beef product competitions and butchering demonstrations, and the Beef Industry Day focussing on innovations in the Australian beef industry. The event also includes a range of activities that demonstrate the vitality of rural Australian beef communities.
This spending was initiated by the Government’s commitment to provide $1 million over four years from 2016-17 to support the delivery of the Casino Beef Week event in Casino, New South Wales. This 2016 election commitment was announced in The Coalition’s Policy for a Stronger Agriculture Sector.
Funding was initially included in the 2016-17 Mid-Year Economic and Fiscal Outlook under the measure ‘Beef Week and the Beef Australia Expo – additional funding’ for a period of four years commencing in 2016-17. Details are set out in the Mid-Year Economic and Fiscal Outlook 2016-17 at page 129.
Funding for the grants will come from Program 1.10: Agricultural Resources, which is part of Outcome 1. Details are included in the Portfolio Additional Estimates Statements 2016-17, Agriculture and Water Resources Portfolio at pages 14, 17 and 29.
Funds will be provided for non-competitive, targeted grants. The decision-maker for the grants will be the Deputy Prime Minister and the Minister for Agriculture and Water Resources. The grants will be provided in accordance with the Commonwealth Grants Rules and Guidelines. The recipient of the grants, the Casino Beef Week Promotions Committee Incorporated, will be required to enter into a grant agreement with the Commonwealth and payments will be provided based on the delivery of milestones in accordance with the agreement. The grant agreement will not be made public.
Details of the grants will be published on the Department of Agriculture and Water Resources’s website at www.agriculture.gov.au/about/reporting/obligations/grants-reporting-requirements.
Merits review is not appropriate due to the non-competitive and targeted nature of the grants.
Noting that it is not a comprehensive statement of relevant constitutional considerations, the purpose of the item references the following powers of the Constitution:
- the trade and commerce power (section 51(i)); and
- the Commonwealth executive power and the express incidental power (sections 61 and 51(xxxix)).
The funding will assist the beef industry, through the delivery of the Casino Beef Week event, to promote Australian beef and beef products, including identifying and developing the market for interstate sale and export.
Supporting Australia’s beef industry, and the performance of that industry, is important to the performance of Australia’s economy as a whole. This funding supports these businesses, through the Casino Beef Week event, for the benefit of the nation. This funding is intended to support the development of Casino Beef Week as a nationally significant event.
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 (Agriculture and Water Resources Measures No. 2) Regulations 2017
These Regulations are 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 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations. Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs. The FF(SP) Act applies to Ministers and the accountable authorities of non‑corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.
Schedule 1 to the Regulations amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for the Government to provide grants to support the delivery of Casino Beef Week. The grants will be administered by the Department of Agriculture and Water Resources.
Casino Beef Week is an annual event held in northern New South Wales. The event highlights beef cattle production, beef and related products, marketing and trade. Although the program changes each year, it consistently features cattle competitions, beef product competitions and butchering demonstrations, and the Beef Industry Day focussing on innovations in the Australian beef industry. The event also includes a range of activities that demonstrate the vitality of rural Australian beef communities.
The Deputy Prime Minister and Minister for Agriculture and Water Resources has portfolio responsibility for this matter.
Human rights implications
The Regulations do not engage any of the applicable rights or freedoms.
Conclusion
These Regulations are compatible with human rights as they do not raise any human rights issues.
Senator the Hon Mathias Cormann
Minister for Finance