Order to Establish the Net Zero Economy Agency as an Executive Agency

Overview

The Public Service Act 1999, enacted by the Commonwealth of Australia, was used as the legal basis to establish the Net Zero Economy Agency as an Executive Agency. The purpose of this legislation is to address the need for a coordinated and strategic approach to the economic transformation associated with decarbonisation and energy system changes, with a particular focus on regional communities and workers. The policy objective is to promote a positive economic transition towards a net zero emissions economy by providing support to regional communities and workers, facilitating investment, and advising the government on the establishment of a new statutory authority. The establishment of the Net Zero Economy Agency aims to ensure orderly and effective management of the transition to a net zero economy, ultimately contributing to the achievement of national climate change goals. The establishment of the Net Zero Economy Agency was made under section 65 of the Public Service Act 1999, by the Governor-General of the Commonwealth of Australia, General the Honourable David Hurley AC DSC (Retd), acting with the advice of the Federal Executive Council. The Order to establish the Net Zero Economy Agency as an Executive Agency was made on 11 May 2023, and will commence on 1 July 2023. The Prime Minister has been identified as the Minister responsible for the Executive Agency, with the functions of the Agency including the promotion of economic transformation, support for regional communities and workers, facilitating investment, and advising the government on the establishment of a new statutory authority. This legislative action demonstrates the Australian government's commitment to addressing the challenges and opportunities presented by the transition to a net zero emissions economy.

Scope and Application

The Public Service Act 1999, through the Order to Establish the Net Zero Economy Agency as an Executive Agency, applies to the formation and operational framework of the Net Zero Economy Agency. This Act applies to the establishment of this new agency as a government body responsible for managing the economic transition towards net zero emissions. The agency is designed to coordinate and deliver government strategies to support regional communities, workers, investors, and companies through the net zero transformation. It is mandated to advise the Government on related matters and report on progress to key ministers. The geographic reach of this legislation is national, as it concerns a Commonwealth-level executive agency. The Act does not explicitly outline exclusions, exemptions, or thresholds, but its focus is on the creation of the agency and its specific functions related to the net zero economy. The application of this Act may be further detailed or modified through subordinate instruments, such as regulations or guidelines issued under the authority of the Act.

Key Provisions

The main provisions of the Order to Establish the Net Zero Economy Agency as an Executive Agency are outlined in section (a) to (e). Section (a) establishes the Net Zero Economy Agency as an Executive Agency. Section (b) assigns the name "Net Zero Economy Agency" to this new agency. Section (c) designates the title "Chair" for the head of this agency. Section (d) identifies the Prime Minister as the responsible minister for the agency. Finally, section (e) specifies the functions of the Net Zero Economy Agency, which include promoting economic transformation towards decarbonisation, coordinating government strategies to support regional communities and workers, assisting workers in transitioning to new opportunities, facilitating engagement between investors and companies with regional industries, advising the government on the establishment of a new statutory authority, reporting on progress to key ministers, and undertaking any other tasks required by the Minister. The Order imposes several obligations on the Net Zero Economy Agency. Firstly, it must promote an orderly and positive economic transformation associated with decarbonisation and energy system change. This involves developing and coordinating government strategies to support regional communities and workers during the transition. The agency also has the responsibility to support workers in emissions-intensive sectors in accessing new employment, skills, and other opportunities. Additionally, the agency is tasked with facilitating engagement between investors, companies, and regional industries and communities. It must also advise the government on the establishment of a new statutory authority to promote, coordinate, and facilitate the transformation. Furthermore, the agency is required to report regularly to the Prime Minister, Treasurer, and Minister for Climate Change and Energy on progress and government responses. Lastly, the agency must undertake any other relevant tasks that the Minister may require from time to time. Under the Order, breaches of the provisions or failure to comply with the obligations could result in various consequences. However, the specific offences, penalties, or consequences are not detailed within the text of the Order itself. In general, breaches of public service legislation can lead to disciplinary action, which may include warnings, fines, or other administrative measures. More serious breaches might result in criminal charges, depending on the nature and severity of the offence. The maximum penalties for such breaches would be determined by the relevant laws and regulations governing public service conduct and administration. It is important to note that while the Order establishes the agency and its functions, the detailed consequences for non-compliance are likely to be found in other related legislation.