EXPLANATORY STATEMENT
Issued by the authority of Minister for Industry and Science
Industry Research and Development Act 1986
Industry Research and Development (Welding Simulators, Automation and Next Gen Technology Training 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 (Welding Simulators, Automation and Next Gen Technology Training Program) Instrument 2023 (the Legislative Instrument) is to prescribe the Welding Simulators, Automation and Next Gen Technology Training Program (the Program). Funding for the Program has been secured through the appropriation of funds by the Department of Industry, Science and Resources (the Department) from the Department of Infrastructure, Transport, Regional Development, Communications and the Arts 2022-23 Budget. The Department will be responsible for meeting administration costs of the Program.
The Program provides $293,000 as part of the Australian Government’s commitment to support the Tasmanian Minerals, Manufacturing and Energy Council Limited (ABN 19 009 554 616) (TMMEC) to purchase welding simulation equipment which is required to upskill the welding workforce in new technologies. The Program forms part of the Investing in our Communities program.
The purpose of the Program is to:
- improve advanced manufacturing sector awareness for students and teaching staff at participating schools in Tasmania;
- facilitate a pre-employment course for learners to gain an understanding of key welding concepts and associated skills which will assist with employment within the manufacturing sector;
- provide learners with experience in advanced manufacturing technology and a better understanding of the role of such technology in the modern manufacturing environment; and
- facilitate subject matter expert training to upskill existing staff and new operators.
Funding authorised by this Legislative Instrument comes from Program 3.1 Regional development: Investing in Our Communities Program, Outcome 3, as set out in the Portfolio Budget Statements 2022-23 Budget Related Paper No. 1.12, Infrastructure, Transport, Regional Development, Communications and the Arts Portfolio (https://www.infrastructure.gov.au/sites/default/files/documents/october_2022-23_infra_pbs_00.pdf) at page 59.
The Program will be delivered by the Business Grants Hub within the Department, which has extensive expertise and capability in delivering similar programs. This Program provides $293,000 through a one-off, non-competitive grant to TMMEC. The Program is 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, non-competitive grant to an identified eligible recipient, 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 the project to deliver intended outcomes, and associated risk. To be successful the applicant must demonstrate merit in each of these areas.
Spending decisions will be made by the Program Delegate who is the Manager responsible for administering the Program, taking into account the recommendations of the Department. The Program Delegate 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 to an identified recipient 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 the decisions will relate to the provision of a 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 are otherwise affected by decisions or who have complaints about the Program 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.
External affairs power
For the purposes of subsection 33(3) of the IR&D Act, the Legislative Instrument specifies that the legislative power in respect of which it is made is the external affairs power (paragraph 51(xxix) of the Constitution). The external affairs power supports Commonwealth legislation implementing Australia’s international obligations under treaties to which it is a party.
Australia has obligations under the International Covenant on Economic, Social and Cultural Rights (ICESCR), the International Labour Organization’s Convention concerning Employment Policy (ILO Convention 122), and the International Labour Organization’s Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142).
Article 6 of the ICESCR broadly provides for a right to work. Articles 1 and 2 of ILO Convention 122 are directed at full, productive and freely chosen employment. Articles 1, 2, 3, and 4 of ILO Convention 142 are concerned with developing vocational guidance and training. In that regard, funding provided under the Legislative Instrument is aimed at helping people gain knowledge and skills that are necessary for employment in the welding and manufacturing industry.
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 TMMEC on the activities necessary to upskill the welding workforce in new technologies 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 Best Practice Regulation reference number 22‑02828).
Statement of Compatibility with Human Rights
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 (Welding Simulators, Automation and Next Gen Technology Training Program) Instrument 2023
Section 1 – Name of Instrument
This section specifies the name of the Legislative Instrument as the Industry Research and Development (Welding Simulators, Automation and Next Gen Technology Training 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 Welding Simulators, Automation and Next Gen Technology Training Program for the purposes of section 33 of the IR&D Act.
The Program provides a one-off grant to TMMEC to purchase welding simulation equipment which is required to upskill the welding workforce in new technologies.
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 the external affairs power in paragraph 51(xxix) of the Constitution, as it relates to measures to give effect to Australia’s obligations under certain specified treaties.
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 (Welding Simulators, Automation and Next Gen Technology Training 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 (Welding Simulators, Automation and Next Gen Technology Training Program) Instrument 2023 (the Legislative Instrument) provides legislative authority to commit Commonwealth funds for the Welding Simulators, Automation and Next Gen Technology Training Program (the Program). The Program provides up to $293,000 to Tasmanian Minerals, Manufacturing and Energy Council Limited for the purchase of welding simulation equipment which is required to upskill the welding workforce in new technologies. The Program forms part of the Australian Government’s Investing in our Communities Program.
Human rights implications
This Legislative Instrument engages the right to work under Article 6 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).
The Program engages the right to work, under Article 6 of the ICESCR, as it will help people gain knowledge and skills that are necessary for employment in the welding and manufacturing industry. The Program will provide technical and vocational guidance to assist people to take part in work which they freely choose or accept.
Conclusion
This Legislative Instrument is compatible with human rights as it promotes the right to work in the welding and manufacturing industry.
The Hon Ed Husic MP
Minister for Industry and Science