EXPLANATORY STATEMENT
Issued by the authority of the Minister for Resources and Northern Australia
Industry Research and Development Act 1986
Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017
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, by disallowable legislative instrument, programs 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 s 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 s 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 entity, or by their delegate (under s 36).
The purpose of the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017 (the Instrument) is to prescribe the Onshore Gas Social and Economic Research Fund Program (the Program). The then Minister for Resources, Energy and Northern Australia, Josh Frydenberg, announced the Program as an election commitment in June 2016.The Program comprises a single grant to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), with a total administered value of $4 million over four years, beginning in the 2016-17 financial year. The grant will support the expansion of the Gas Industry Social and Environmental Research Alliance (GISERA) model from Queensland (QLD) and New South Wales (NSW) into other jurisdictions in Australia.
The GISERA is a collaborative vehicle established to undertake publicly-reported independent research addressing the social, economic and environmental impacts of Australia’s natural gas industry. The principal aim of the GISERA model is to increase, through scientific research, the knowledge and understanding of onshore gas development and report on the specific issues and concerns communities have about gas development.
The Australian Government expects industry, as well as State and Territory Governments, to support GISERA by providing matched funding and through their membership as Alliance partners of GISERA.
The funding will be used to:
- establish Regional Research Advisory Committees (RRACs) in each additional contributing state or territory. These RRACs will oversee social and environmental research that addresses community concerns and will consist of independent, industry, CSIRO and Government stakeholders. The RRACs will report to the National Research Management Committee (NRMC) on research progress against deliverables. The NRMC consists of five industry, three CSIRO and one government representative;
- generate and report on relevant scientific research to support policy development;
- provide research outputs on the benefits and impacts of onshore gas development to the public; and
- build on the lessons learned from applying the GISERA in QLD and NSW.
Funding authorised by this instrument will come from the Growing Business Investment and Improving Business Capability: Onshore Gas Social and Economic Research Fund, as set out in the Mid-Year Economic and Fiscal Outlook 2016-2017 and the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.12, Industry, Innovation and Science Portfolio at page 32. The funding will be awarded through a one-off discretionary grant to the CSIRO. As an independent organisation within the Industry, Innovation and Science portfolio, the founder of GISERA, and as one of the world's premier public research entities, the CSIRO is uniquely placed to investigate the opportunities and risks of onshore gas development.
Merits review will not apply to decisions made on the grant for this Program given the non-competitive nature of the funding.
The Program will be administered by the Department of Industry Innovation and Science. Spending decisions will be made by the s 34 delegate, who will be the Manager with responsibility for the Onshore Gas Section. All grants-related decisions will be made in accordance with the Commonwealth Grants Rules and Guidelines (https://www.finance.gov.au/sites/default/files/commonwealth-grants-rules-and-guidelines-July2014.pdf).
The Legislative Instrument specifies that the legislative power in respect of which the Instrument is made is the implied nationhood power, which encompasses the Commonwealth’s ability to engage in activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (sections 61 and 51(xxxix) of the Constitution).
In this regard, funding provided under the Legislative Instrument will support the CSIRO, Australia’s national science agency, which has the lead role in the national GISERA program. The research funded under this program will contribute to the goals of a secure and sustainable energy supply and productive industry sectors, which are in Australia’s national interest to maintain. The GISERA program is also a national program, to be undertaken in partnership with participating states and territories, which will be required to provide matched funding to the program.
Consultation
In accordance with section 17 of the Legislation Act 2003, the Attorney-General’s Department and the Department of Finance have been consulted on this Legislative Instrument. The CSIRO was consulted on the development of the Program, however it was not considered necessary to consult on the Instrument itself, as it simply specifies the program as agreed.
Regulatory Impact
The Program is not expected to have a regulatory impact on businesses, community organisations or individuals.
Details of the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017
Section 1 – Name of Instrument
This section specifies the name of the Legislative Instrument as the Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017.
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 sets out the provision of the Industry Research and Development Act 1986 under which the Legislative Instrument is made.
Section 4 – Definitions
This section provides for definitions of terms used in the Legislative Instrument.
Section 5 – Prescribed program
This section prescribes the Onshore Gas Social and Economic Research Fund Program under which funding will be provided to support the undertaking of scientific research relating to the social, economic and environmental impacts of Australia’s onshore natural gas industry; and communication of the research results.
The table specifies in column 1 the name of the program, and in column 2 the description and purpose of the program.
Section 6 – Specified legislative power
This section specifies the legislative powers in respect of which this Legislative Instrument is made are the powers of the Parliament to make laws with respect activities which are peculiarly adapted to the government of a nation and cannot otherwise be carried on for the benefit of the nation (ss61 and 51(xxxix) of the Constitution).
The CSIRO was established as Australia’s national science agency. It is uniquely placed to manage the GISERA, which seeks to implement a national scheme to conduct research which will be used to further Australia’s national interest in maintaining a secure and sustainable energy supply and productive industry sectors.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Industry Research and Development (Onshore Gas Social and Economic Research Fund Program) Instrument 2017
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
This instrument provides legislative authority to commit Commonwealth funds for the Onshore Gas Social and Economic Research Fund Program.
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 Barnaby Joyce
Minister for Resources and Northern Australia