EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Financial Framework (Supplementary Powers) Act 1997
Financial Framework (Supplementary Powers) Amendment
(Communications and the Arts Measures No. 3) 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.
The Regulations amend Schedule 1AB to the Principal Regulations to establish legislative authority for the Government to provide a grant to support coverage of under-represented sports on subscription television and online, including women’s and niche sports that receive low or no broadcasting exposure, and sports that command high levels of community involvement and participation. This initiative will be administered by the Department of Communications and the Arts.
Funding of $30 million over four years from 2017-18 will support activities that are directly related to preparing and transmitting coverage of under-represented sports on television and online, including the development of relationships with relevant sporting bodies and cultivation of an ongoing audience for these sports, building their profile, boosting participation and improving sponsorship opportunities.
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 the instrument is registered 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 Communications and the Arts.
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 (Communications and the Arts Measures No. 3) Regulations 2017
Section 1 – Name
This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Communications and the Arts Measures No. 3) Regulations 2017.
Section 2 – Commencement
This section provides that the Regulations commence on the day after the instrument is registered 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 Schedule to the Regulations.
Schedule 1 – Amendments
Item 1 – In the appropriate position in Part 4 of Schedule 1AB (table)
This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an initiative that will be administered by the Department of Communications and the Arts.
New table item 245 establishes legislative authority for the Government to provide funding for television and online coverage of under‑represented sports, including women’s and niche sports that receive low or no broadcasting exposure, and sports that command high levels of community involvement and participation.
The Government has decided that Fox Sports Australia Pty Limited (Fox Sports) will be the grant recipient. Fox Sports is an established sports channel provider, with six dedicated sports channels and a wide range of sports news and reporting available on the Foxtel subscription television broadcasting platform. Fox Sports has expertise in developing and transmitting sports coverage through its linear and on-demand subscription television services. Fox Sports’ mix of sports extends to many lower-profile sports and events that receive little or no free-to-air television coverage. The grant funding will enable Fox Sports to develop relationships with relevant sporting bodies and cultivate an ongoing audience for these sports, build their profile, boost participation, and improve sponsorship opportunities.
Funding of $30 million was included in the 2017-18 Budget under the measure ‘Broadcasting and Content Reform Package – funding for Australian film and television content and SBS’ for a period of four years commencing in 2017-18. Details are set out in Budget 2017-18, Budget Measures, Budget Paper No. 2 2017-18 at page 73.
Funding will be provided to the recipient by way of a grant via direct offer. Processes for providing direct funding to Fox Sports will follow the Commonwealth Grants Rules and Guidelines. The grant will be administered either by the Department of Communications and the Arts or one of the government grants hubs. The department would enter into a grant funding agreement with the recipient to ensure compliance and reporting on all government objectives. The recipient will be responsible for delivering activities under the grant funding agreement.
The Minister for Communications will be the decision-maker for the grant expenditure and all relevant approvals will be subject to the Public Governance, Performance and Accountability Act 2013. Information about the funding decision will be published at www.communications.gov.au/who-we-are/department/funding-reporting.
The decision to provide funding to the recipient is not considered suitable for merits review. It is not directed towards the circumstances of particular persons but to the broader benefit to the Australian community. The decision is unlikely to affect the interests of any one person and re-making of a decision under merits review would impact on the objectives of the funding and the timely provision of support to address the lack of coverage for niche and women’s sports.
Funding for this item will come from Program 1.1: Digital Technologies and Communications Services, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.3, Communications and the Arts Portfolio at page 18.
Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the communications power (section 51(v)) of the Constitution.
Funding will be provided for activities that are directly related to preparing and transmitting coverage of women’s and niche sporting events on television and online.
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 (Communications and the Arts Measures No. 3) 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.
The Regulations amend Schedule 1AB to the FF(SP) Regulations to establish legislative authority for the Government to provide a grant to support coverage of under-represented sports on subscription television and online, including women’s and niche sports that receive low or no broadcasting exposure, and sports that command high levels of community involvement and participation. This initiative will be administered by the Department of Communications and the Arts.
Funding of $30 million over four years from 2017-18 will support activities that are directly related to preparing and transmitting coverage of under-represented sports on television and online, including the development of relationships with relevant sporting bodies and cultivation of an ongoing audience for these sports, building their profile, boosting participation and improving sponsorship opportunities.
The Minister for Communications has 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