EXPLANATORY STATEMENT
Issued by the authority of the Minister for Industry, Science and Technology
Industry Research and Development Act 1986
Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019
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 s33 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 s33, 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 s36).
The purpose of the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019 (the Legislative Instrument) is to prescribe the PSMA Australia Limited Concessional Loan Program (the Program). The funding for the Program has been secured through the Department of Industry, Innovation and Science (the Department) 2018-19 Mid-Year Economic and Fiscal Outlook. The Program provides a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) as part of the Australian Government’s commitment to support PSMA Australia Limited (PSMA) to upgrade its information technology (IT) infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.
PSMA is a company jointly owned (in equal parts) by Australia’s nine governments. PSMA addresses a gap in the market by aggregating and integrating geocoded address data and land parcel and property data at the national level. All this material is accessible only via the internet. The program will enable PSMA to improve its spatial data products by:
- implementing continuous data sourcing and production for its customers;
- developing a range of industry data solutions for sectors including but not limited to government, agriculture, emergency management, utilities and real estate;
- developing new application programming interfaces to streamline data delivery and analytics;
- delivering an improved value-creating data supply and distribution ecosystem; and
- implementing a richer dataset development program.
This will allow PSMA to meet increasing demand across the economy for near real-time access to modernised, national-level spatial data.
In addition to these initiatives, PSMA will use loan funds to invest in staff capability across project management, IT and data science. This will ensure the organisation is appropriately skilled to effectively deliver the initiatives and continue modernising PSMA’s products.
The program will also support PSMA to assist in delivery of future national spatial data priorities that require a coordinated national approach, including a dynamic addressing ecosystem, a whole-of-government (Commonwealth) approach for address validation, and reformed land parcel and property data nationally.
Funding authorised by this Legislative Instrument comes from Program 2: Growing Business Investment and Improving Business Capability, Outcome 1, as set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.13A,, Industry, Innovation and Science Portfolio (https://www.industry.gov.au/sites/default/files/2018-19-department-of-industry-innovation-and-science-pbs.pdf) at page 29.
The Program will be delivered by the Department and administered in accordance with the Department of Finance’s accounting policy guidelines and resource management guides for concessional loans (https://www.finance.gov.au/resource-management/reporting-accounting/accounting-guidance/), the Commonwealth Grant Rules and Guidelines (https://www.finance.gov.au/sites/default/files/commonwealth-grants-rules-and-guidelines-July2014.pdf) and the Commonwealth Procurement Rules (http://www.finance.gov.au/sites/default/files/2014%20Commonwealth%20Procurement%20Rules.pdf).
Spending decisions will be made by the delegate of the Department, who is the General Manager, Data Management and Analytics Branch responsible for administering the Program. The loan contract will outline the key spatial data priorities PSMA must deliver to continue receiving advances of funds under the loan from the Commonwealth. The contract will include the deliverables, milestones and reporting requirements.
The concessional loan will be up to $10.5 million in total, provided in two instalments. The first instalment of $4.5 million will be made in the first quarter of 2019 and the second instalment ($6.0 million) in the first quarter of 2020. Provision of the second instalment will be contingent on the Department’s assessments of PSMA’s progress implementing initiatives under the Program in 2019. The loan is due to be repaid in full by 2025-26.
As this will be a one-off targeted concessional loan to a particular service provider, there are no selection criteria as a basis to select one service provider over another and therefore the Program will not be subject to merits review.
Persons who are otherwise affected by decisions or who have complaints about the Program will 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.
Communications power
The Legislative Instrument specifies that the legislative power in respect of which it is made is the communications power (section 51(v) of the Constitution). Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic and other like services'. The program will support activities relating to the delivery of information using electronic communication services.
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 has been consulted on this Legislative Instrument.
In developing the Program, the Department has consulted with all Australian Government central agencies and all Australian Government agencies and entities that regularly use PSMA’s spatial data products.
Regulatory Impact
It is estimated that the regulatory burden is likely to be minor (OBPR reference number 24089).
Details of the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019
Section 1 – Name of Instrument
This section specifies the name of the Legislative Instrument as the Industry Research and Development (PSMA Australia Limited Concessional Loan Program) Instrument 2019.
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 provides that the instrument is made under section 33 of the Industry Research and Development Act 1986.
Section 4 – Definitions
This section provides for definitions of terms used in the Legislative Instrument.
Section 5 – Prescribed Program
This section prescribes the PSMA Australia Limited Concessional Loan Program (the Program) for the purposes of s 33 of the Industry Research and Development Act 1986.
The Program provides a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to support PSMA Australia Limited to upgrade its information technology infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.
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 postal, telegraphic, telephonic, and other like services (within the meaning of section 51(v) 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 (PSMA Australia Limited Concessional Loan Program) Instrument 2019
This Disallowable 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 Legislative Instrument supports provision of a concessional loan of up to $10.5 million over seven years (from 2018-19 to 2025-26) to PSMA Australia Limited (PSMA). The loan will enable the company to upgrade its information technology (IT) infrastructure and invest in organisational capability to assist in delivery of enhanced national spatial data infrastructure.
Investment in IT infrastructure upgrades and capability will enable PSMA to improve its spatial data products to meet increasing demand across the economy for near real-time access to modernised, national-level spatial data. These investments will also support PSMA to assist in delivery of future national spatial data priorities that require a coordinated national approach. Broadly, this will support digital and technological opportunities and business innovation across the economy.
Human rights implications
This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon Karen Andrews MP
Minister for Industry, Science and Technology