EXPLANATORY STATEMENT
Issued by the authority of the Minister for Industry and Science
Industry Research and Development Act 1986
Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023
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 other arrangements, and may provide for money to be payable by the Commonwealth to one or more third parties. 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 Commonwealth entity, or by their delegate (under section 36).
The purpose of the Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023 (the Legislative Instrument) is to prescribe the Ingham’s Sorell Facility Upgrade Program (the Program). Funding for the Program has been secured through the Department of Industry, Science and Resources (the Department) 2022-23 Budget. The Program provides $11.1 million across the 2022-23, 2023-24 and 2024-25 financial years to support Inghams Enterprises Pty Ltd (Inghams Enterprises) to upgrade the wastewater management system at its poultry facility in Sorell, Tasmania, as part of the Australian Government’s “Plan for A Better Economy, Better Budget, Better Future”.
This Program provides a one-off grant to Inghams Enterprises to support the upgrade of the wastewater management system, including the installation of a spin chiller, in Inghams Enterprises’ facility in Sorell, Tasmania, for the purposes of reducing the risk of contaminating the Pitt Water-Orielton Lagoon. These upgrades will lower the risk of contamination to the Pitt Water-Orielton Lagoon and surrounding area.
Funding authorised by this Legislative Instrument comes from Program 1.2, Outcome 1, as set out in the Portfolio Budget Statements 2022-23, Budget Related Paper No. 1.11, Industry, Science and Resources Portfolio (https://www.industry.gov.au/sites/default/files/2022-10/October_2022-23_Industry%2C%20Science%20and%20Resources_PBS.pdf) at pages 16 and 39. This Program forms part of the “Local Industry Grants” package.
The Program will be delivered by AusIndustry, which is a specialised design, management and delivery body within the Department with extensive expertise and capability in delivering similar programs.
The Program provides $11.1 million through a one-off, non-competitive grant to Inghams Enterprises. The Program will be administered by the Department in accordance with the Commonwealth Grant Rules and Guidelines 2017 (https://www.finance.gov.au/sites/default/files/2019-11/commonwealth-grants-rules-and-guidelines.pdf). As this is a one-off grant to the identified eligible recipient (which is a trading corporation), there are no selection criteria; however, the grant is contingent on the submission of an acceptable project proposal with sufficient relevant supporting information commensurate with the funding amount. This is subject to assessment of merit in accordance with the Grant Opportunity Guidelines, including, but not limited to, consideration of value for money, ability of project to deliver intended outcomes, and associated risk. To be successful the application must demonstrate merit in each of these areas.
Spending decisions will be made by the Program Delegate who is the General Manager responsible for administering the Program. The Program Delegate is a Senior Executive Service officer who holds delegation under the Department’s general financial framework, including delegation under the Public Governance, Performance and Accountability Act 2013, and sections 34 and 35 of the IR&D Act.
As this is a one-off, non-competitive grant that supports the implementation of policy decisions made by the Government, the Program will not be subject to merits review. Merits review of the Program would not be appropriate because decisions will relate to the provision of one-off, non-competitive grant to a certain service provider over other service providers. The Administrative Review Council has recognised that decisions of this nature should be excluded from merits review (see paragraphs 4.16 to 4.19 of What decisions should be subject to merits review? available at https://www.ag.gov.au/legal-system/administrative-law/administrative-review-council-publications/what-decisions-should-be-subject-merit-review-1999).
Persons who have complaints about the Program or who are otherwise affected by decisions will also have recourse to the Department. The Department investigates any complaints about the Program in accordance with its complaints policy and procedures. If a person is not satisfied with the way the Department handles the complaint, they may lodge a complaint with the Commonwealth Ombudsman.
The Legislative Instrument specifies that the legislative power in respect of which it is made is the external affairs power (section 51(xxix) of the Constitution). Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to ‘external affairs’. The external affairs power supports legislation which gives effect to Australia’s international obligations under treaties to which it is a party.
Australia has obligations under Article 3.1 of the Convention on Wetlands of International Importance especially as Waterfowl Habitat [1975] ATS 48 (Ramsar Convention) to formulate and implement planning to promote the conservation and wise use of listed sites. The funding provided under the Legislative Instrument will support Inghams Enterprises’ upgrade of its wastewater management system, which will reduce the amount of wastewater going into the area surrounding the Pitt Water-Orielton Lagoon, which is listed as a ‘wetland of international importance’.
Further details of the Legislative Instrument are set out at Attachment A.
Authority
Section 33 of the IR&D Act provides authority for the Legislative Instrument.
Consultation
The Department consulted with Inghams Enterprises and the Department of Climate Change, Energy, the Environment and Water on the activities necessary to complete the upgrade of the wastewater management system (including installation of a spin chiller) and the expected outcomes. This consultation informed the design of the Program.
In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department has been consulted on this Legislative Instrument.
Regulatory Impact
It is estimated that the regulatory burden is likely to be minor (Office of Impact Assessment reference number 22-03015).
A Statement of Compatibility with Human Rights for the purposes of Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is set out at Attachment B.
Attachment A
Details of the Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023
Section 1 – Name of Instrument
This section specifies the name of the Legislative Instrument as the Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023.
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 IR&D 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 Program for the purposes of section 33 of the IR&D Act.
The Program provides a one-off grant to support the upgrade of the wastewater management system, including the installation of a spin chiller, in Inghams Enterprises’ facility in Sorell, Tasmania, for the purposes of reducing the risk of contaminating the Pitt Water-Orielton Lagoon. These upgrades will lower the risk of contamination to the Pitt Water-Orielton Lagoon and surrounding area.
Section 6 – Specified Legislative Power
This section specifies that the legislative power in respect of which the Legislative Instrument is made is the power of the Parliament to make laws with respect to external affairs (within the meaning of paragraph 51(xxix) of the Constitution), as it relates to measures that give effect to Australia’s obligations under the Ramsar Convention, particularly Article 3.1.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023
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 Industry Research and Development (Ingham’s Sorell Facility Upgrade Program) Instrument 2023 (the Legislative Instrument) provides legislative authority to commit Commonwealth funds for the Ingham’s Sorell Facility Upgrade Program (the Program). The Program provides $11.1 million across the 2022-23, 2023-24 and 2024-25 financial years to Inghams Enterprises Pty Ltd to support the upgrade of the wastewater management system, including the installation of a spin chiller, at its Sorell poultry facility in Tasmania. These upgrades will reduce the risk of contaminating the Pitt Water-Orielton Lagoon.
Human rights implications
The Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon Ed Husic MP
Minister for Industry, and Science