EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Finance
Public Governance, Performance and Accountability Rule 2014
Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017
The Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) set out a framework for regulating resource management by the Commonwealth and relevant entities. Section 101 of the PGPA Act provides that the Minister for Finance may make rules by legislative instrument to prescribe matters giving effect to the Act.
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
The Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017 (Amending Rules) amend the PGPA Rule to:
- prescribe the Australian Naval Infrastructure Pty Ltd (ANI) as a government business enterprise (GBE);
- prescribe the Infrastructure and Project Financing Agency (IPFA) as a listed entity; and
- remove the executive agency Independent Parliamentary Expenses Authority (Executive Agency IPEA) as a listed entity.
Details of the Amending Rules are set out at Attachment A. A statement of compatibility with human rights is at Attachment B.
The Amending Rules are a legislative instrument for the purposes of the Legislative Instruments Act 2003 and are a disallowable instrument.
Consultation
The Amending Rules were developed in consultation with the Department of the Prime Minister and Cabinet and the Parliamentary Expenses Taskforce and ASC Reform Implementation Branch in the Department of Finance.
Attachment A
Details of the Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017
Section 1—Name of rule
This section provides that the title of the instrument is the Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017 (Amending Rules).
Section 2—Commencement
This section provides that each provision of the instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table.
The whole of this instrument commences on 1 July 2017.
Section 3—Authority
This section states that the Amending Rules are made under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).
Section 4—Schedules
This section provides that each legislative instrument that is specified in a Schedule to the Amending Rules is amended or repealed as set out, and that any item in a Schedule to this instrument operates or is applied as specified in the Schedule.
Schedule 1 – Amendments
Public Governance, Performance and Accountability Rule 2014
Item 1 – After paragraph 5(2)(e)
This item adds the Australian Naval Infrastructure Pty Ltd (ANI) to the list of Commonwealth entities and companies that are prescribed as government business enterprises (GBEs) for the purposes of the PGPA Act. A GBE is a special type of entity or company that is established and owned by the Commonwealth in order to fulfil a public purpose in the delivery of services or operation of infrastructure.
The Commonwealth acquired ANI as a new Commonwealth company on 26 March 2017. ANI was formerly a subsidiary of the ASC Pty Ltd.
Item 2 – Clause 11A of Schedule 1
This item amends Schedule 1 of the PGPA Rule by:
- repealing clause 11A which prescribed the executive agency Independent Parliamentary Expenses Authority (Executive Agency IPEA) as a listed entity for the purposes of the PGPA Act, and
- substituting new clause 11A to prescribe the Infrastructure and Project Financing Agency (IPFA) as a listed entity for the purposes of the PGPA Act.
Repeal of Executive Agency IPEA
The Executive Agency IPEA was part of the first stage of the reformed legislative framework for parliamentary work expenses. On 3 April 2017, Executive Agency IPEA was established as an executive agency for the purposes of the Public Service Act 1999 (PS Act) by the Public Service (Establishment of Independent Parliamentary Expenses Authority) Order 2017 (IPEA Order). At the same time, Executive Agency IPEA was also made a non‑corporate Commonwealth entity for the purposes of the PGPA Act, by prescribing it as a listed entity at Schedule 1 of the PGPA Rule. Executive Agency IPEA was established to perform the following functions until the statutory authority IPEA commences: giving advice, administering, monitoring, reporting on and auditing of Members of Parliament work expenses and travel entitlements of their staff.
The statutory authority IPEA commences on 1 July 2017, when the substantive provisions of the Independent Parliamentary Expenses Authority Act 2017 (IPEA Act) commence. The repeal of existing clause 11A ensures that the listed entity that is the Executive Agency IPEA ceases when the statutory authority IPEA commences. An Executive Order will also be made under the PS Act to abolish the Executive Agency IPEA when the substantive provisions of the IPEA Act commence.
Listing IPFA
New clause 11A, establishes the Infrastructure and Project Financing Agency by setting out the composition, accountable authority, officials and the purposes of the new non‑corporate Commonwealth entity. The IPFA will comprise the Chief Executive Officer and persons engaged under the PS Act to assist in the performance of the functions of the IPFA. The functions of the IPFA are to assist ministers and entities to develop and assess financing options and to broker financing arrangements for transformative infrastructure projects. The IPFA will commence on 1 July 2017.
On 1 July 2017, the IPFA will also become an executive agency for the purposes of the PS Act. An Executive Order was made under the PS Act on 13 April 2017 to establish the IPFA as an executive agency from 1 July 2017.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017
The Public Governance, Performance and Accountability Amendment (Infrastructure and Project Financing Agency and Other Measures) Rules 2017 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 Public Governance, Performance and Accountability Act 2013 (PGPA Act) establishes a framework for regulating resource management by the Commonwealth and relevant entities. Section 101 of the PGPA Act provides that the Minister for Finance may make rules by legislative instrument to prescribe matters giving effect to the Act.
The legislative instrument amends the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) made under the PGPA Act by amending:
- section 5 of the PGPA Rule to prescribe Australian Naval Infrastructure Pty Ltd as a government business enterprise; and
- clause 11A in Schedule 1 to the PGPA Rule to:
- remove the executive agency Independent Parliamentary Expenses Authority (Executive Agency IPEA) as a listed entity. The Executive Agency IPEA will be replaced by a new statutory authority on 1 July 2017, and
- add the Infrastructure and Project Financing Agency (IPFA) as a listed entity for the purposes of the PGPA Act. IPFA is a new Commonwealth entity that will assist ministers and other entities to develop and assess financing options and to broker financing arrangements for transformative infrastructure projects.
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.
Senator the Hon Mathias Cormann
Minister for Finance