EXPLANATORY STATEMENT
Issued by the authority of the Minister for Resources, Water and Northern Australia
Industry Research and Development Act 1986
Industry Research and Development (Exploring for the Future Program) Instrument 2020
Purpose and Operation
Section 33 of the Industry Research and Development Act 1986 (the IR&D Act) provides a mechanism for the Minister to prescribe programs, by disallowable legislative instrument, in relation to industry, innovation, science or research, including in relation to the expenditure of Commonwealth money under such programs.
The statutory framework provided by section 33 of the IR&D Act enables a level of flexibility to provide authority for Commonwealth spending activities in relation to industry, innovation, science and research programs. This allows the Government to respond quickly and appropriately to the need to implement innovative ideas and pilot programs on an ongoing basis and as opportunities arise. Prescribing programs in legislative instruments provides transparency and parliamentary oversight of Government programs and spending activities, whilst reducing administrative burden on the Commonwealth.
Once a program is prescribed by the Minister under section 33, subsection 34(1) allows the Commonwealth to make, vary or administer arrangements in relation to activities under the prescribed program. Arrangements may include contracts, funding agreements or deeds, and may provide for money to be payable by the Commonwealth for the purposes of the prescribed program. The power conferred on the Commonwealth by subsection 34(1) may be exercised on behalf of the Commonwealth by a Minister or an accountable authority of a non-corporate entity (subsection 34(2)), or by their delegate (under section 36).
The purpose of the Industry Research and Development (Exploring for the Future Program) Instrument 2020 (the Legislative Instrument) is to prescribe the Exploring for the Future Program (the Program). The funding for the Program has been secured through the Department of Industry, Science, Energy and Resources 2020-21 Appropriation Bills. The Program provides $124.5M over four years, beginning in the 2020-21 financial year, to Geoscience Australia as part of the Australian Government’s commitment to encourage new resources exploration investment in Australia.
The Program seeks to deliver public geoscientific data and the evidentiary basis required to attract future investment in resource exploration and development, including in minerals, critical minerals and hydrocarbon energy, a crucial part of the Government’s resources policy agenda. It will also provide vital information on groundwater to inform agricultural developments and boost the knowledge and understanding of our natural resources. The delivery of the Program will support the survival and recovery of the resources and agricultural sectors from the negative economic impact of the coronavirus known as COVID-19 and, in turn, support regional economies.
A significant portion of the funding will be distributed to industry using Australian Government procurement processes, including AusTender.
Funding authorised by this Legislative Instrument comes from Geoscience Australia Program 1: Geoscientific and Spatial Information Services, Outcome 1. Details will be set out in the Portfolio Budget Statements 2020-21, Industry, Science, Energy and Resources Portfolio.
The Program funding will be allocated through direct funding allocations to Geoscience Australia. The Program is administered by Geoscience Australia, and the Program provides up to $124.5M through procurements on AusTender, in accordance with the Commonwealth Procurement Rules (https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules).
Spending decisions will be made according to Geoscience Australia’s financial delegations following recommendations of the Exploring for the Future Strategic Program Board, chaired by the Chief of Minerals, Energy and Groundwater Division.
The Program will not be subject to external merits review as it involves the allocation of finite resources to Geoscience Australia to allow the Program to meet required timeframes and achieve the Australian Government’s objectives. Geoscience Australia is uniquely suited to delivering this program as it is: Australia's pre-eminent public sector geoscience organisation; the nation's trusted advisor on the geology and geography of Australia; and was responsible for delivering the first four financial years of the Exploring for the Future Program from 2016-17 to 2019-20.
Under the Program, covered procurements will be subject to the Government Procurement (Judicial Review) Act 2018.
Persons who are otherwise affected by decisions or who have complaints about the Program will also have recourse to Geoscience Australia. Geoscience Australia investigates any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way Geoscience Australia handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman.
The Legislative Instrument specifies that the legislative powers in respect of which the Instrument is made are the following:
Executive power and express incidental power, including the nationhood aspect
The express incidental power in section 51(xxxix) of the Constitution empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in the Parliament, the executive or the courts by the Constitution. Section 61 of the Constitution supports activities that are peculiarly adapted to the government of a nation and cannot be carried out for the benefit of the nation otherwise than by the Commonwealth.
The program funds the mapping out and delivery of public geoscientific data in relation to minerals, critical minerals and hydrocarbon energy across the Australian continent. In particular, the activities to be funded are intended to more generally increase Australia’s knowledge of its mineral, petroleum and groundwater resources and to stimulate new development in Australia by attracting investment in resource exploration and agricultural investment. The project has a national scope and significance.
Census and statistics power
Section 51(xi) of the Constitution empowers the Parliament to make laws with respect to ‘census and statistics’.
In that regard, funding provided under the Program will result in the collection of data relating to a variety of resources such as minerals, critical minerals and hydrocarbon energy.
Background
Previous legislative authority for the Exploring for the Future Program was provided by Item 167 of Part 4 of Schedule 1AB to the Financial Framework (Supplementary Powers) Regulations 1997. The scope of the Program has changed and the funding has been extended. Accordingly, legislative authority will now be provided by this Legislative Instrument
Authority
Section 33 of the Industry Research and Development Act 1986 provides authority for the Legislative Instrument.
Consultation
In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department and Geoscience Australia has been consulted on this Legislative Instrument.
Regulatory Impact
It is estimated that the regulatory burden is likely to be nil (OBPR reference number 19852).
Details of the Industry Research and Development (Exploring for the Future Program) Instrument 2020
Section 1 – Name of Instrument
This section specifies the name of the Legislative Instrument as the Industry Research and Development (Exploring for the Future Program) Instrument 2020.
Section 2 – Commencement
This section provides that the Legislative Instrument commences on the day after registration on the Federal Register of Legislation.
Section 3 – Authority
This section specifies the provision of the Industry, Research and Development Act 1986 (the Act) under which the Legislative Instrument is made.
Section 4 – Definitions
This item provides for definitions of terms used in the Legislative Instrument.
Section 5 – Prescribed Program
This section prescribes the Exploring for the Future Program (the Program) for the purposes of section 33 of the Act.
The Program seeks to deliver public geoscientific data and the evidentiary basis required to attract future investment in resource and agriculture exploration and development, including in minerals, critical minerals, groundwater and hydrocarbon energy, a crucial part of the Government’s resources policy agenda.
Section 6 – Specified Legislative Power
This section specifies that the legislative powers in respect of which the Legislative Instrument is made are the powers of the Parliament to make laws with respect to census and statistics (s51(xi) of the Constitution) and enterprises and activities that are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (s51(xxxix) and s61 of the Constitution).
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Industry Research and Development (Exploring for the Future Program) Instrument 2020
This Legislative 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.
Overview of the Legislative Instrument
The purpose of the Industry, Research and Development (Exploring for the Future Program) Instrument 2020 (the Legislative Instrument) is to prescribe the Exploring for the Future Program (the Program). Funding will be provided to Geoscience Australia to deliver the Program.
The Program seeks to deliver public geoscientific data and the evidentiary basis required to attract future investment in resource exploration and development, including in minerals, critical minerals and hydrocarbon energy, a crucial part of the Government’s resources policy agenda. It will also provide vital information on groundwater to inform agricultural developments and boost the knowledge and understanding of our natural resources.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon Keith Pitt MP
Minister for Resources, Water and Northern Australia