Explanatory Statement
Issued by Authority of the Minister for Agriculture, Drought and Emergency Management and the Minister for Finance
Regional Investment Corporation Act 2018
Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020
Legislative Authority
The Regional Investment Corporation Act 2018 (the Act) establishes the Regional Investment Corporation (the Corporation) and sets out the Corporation’s functions. Section 54 of the Act provides that the responsible Ministers may, by legislative instrument, make rules prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 12(3) of the Act provides that the responsible Ministers may give a written direction to the Corporation to enter into an agreement, on behalf of the Commonwealth, for the grant of financial assistance to a particular State or Territory in relation to a particular water infrastructure project. The subsection further provides that the direction may specify terms and conditions to be included in the agreement. Subsection 12(5) of the Act provides that the rules must prescribe, in relation to agreements to be entered into under subsection 12(3), the terms and conditions, or the kinds of terms and conditions, that may be included in an agreement and the matters that the Corporation must consider in specifying terms and conditions to be included in an agreement.
The Regional Investment Corporation (Water Infrastructure Project Agreements) Rule 2018 (the Rule) prescribes the kinds of terms and conditions that the Corporation may include in an agreement entered into under subsection 12(3) of the Act, which deals with Water Infrastructure projects that are granted a loan under the National Water Infrastructure Loan Facility (Loan Facility).
Purpose
The purpose of the Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020 (Repeal Instrument) is to repeal the Rule. The Rule is no longer required as a result of the Loan Facility no longer being available to State and Territory governments.
Background
On 6 October 2020, the Australian Government announced that it would not continue with the Loan Facility. The Loan Facility was available to provide State and Territory governments with water infrastructure loans to co-fund the construction of major water infrastructure.
The Corporation provides independent advice to the Commonwealth on projects for consideration under the National Water Infrastructure Loan Facility and administers water infrastructure loans under the Loan Facility to State and Territory governments on behalf of the Commonwealth. No loan applications were made by State and Territory governments since the Loan Facility was administered by the RIC.
The Government is focused on investing in critical infrastructure to generate employment and assist with Australia’s economic recovery from the coronavirus pandemic and will continue to work with states and territories to support primary industries and generate jobs in regional Australia.
Impact and Effect
As the Loan Facility is no longer available, the Corporation will no longer be required to enter into agreements for water infrastructure projects and therefore terms and conditions of these agreements are no longer required to be prescribed. The Repeal Instrument repeals the Rule that prescribes the kinds of terms and conditions.
Consultation
The Department of Agriculture, Water and the Environment consulted with the Department of Finance, the Department of Infrastructure, Transport, Regional Development and Communications and the Corporation on the Repealed Instrument. The Attorney-General’s Department was consulted on the Statement of Compatibility with Human Rights. The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required (ID:43150).
Details/ Operation
Details of the Repeal Instrument are set out in Attachment A.
The Repeal Instrument is a legislative instrument for the purposes of the Legislation Act 2003.
The Repeal Instrument is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.
Attachment A
Details of the Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020
Section 1 – Name
This section provides that the name of this instrument is the Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020 (the Repeal Instrument).
Section 2 – Commencement
This section provides that the Repeal Instrument commences the day after the instrument is registered on the Federal Register of Legislation.
Section 3 – Authority
This section provides that the Repeal Instrument is made under Regional Investment Corporation Act 2018.
Section 4 – Schedules
The effect of this section is that the Regional Investment Corporation (Water Infrastructure Project Agreements) Rule 2018 (the Rule) is amended or repealed as set out in the Schedule to the Repeal Instrument.
Schedule 1 – Repeals
Regional Investment Corporation (Water Infrastructure Project Agreements) Rule 2018
Item 1 – The whole of the instrument
This item repeals the Rule as it is no longer required as a result of the Loan Facility no longer being available.
Attachment B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020
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 Regional Investment Corporation Act 2018 (the Act) establishes the Regional Investment Corporation (the Corporation) and sets out the Corporation’s functions. Section 54 of the Act provides that the responsible Ministers may, by legislative instrument, make Rules prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 12(3) of the Act provides that the responsible Ministers may give a written direction to the Corporation to enter into an agreement, on behalf of the Commonwealth, for the grant of financial assistance to a particular State or Territory in relation to a particular water infrastructure project. The subsection further provides that the direction may specify terms and conditions to be included in the agreement. Subsection 12(5) of the Act provides that the rules must prescribe, in relation to agreements to be entered into under subsection 12(3), the terms and conditions, or the kinds of terms and conditions, that may be included in an agreement and the matters that the Corporation must consider in specifying terms and conditions to be included in an agreement.
The Regional Investment Corporation (Water Infrastructure Project Agreements) Rule 2018 (the Rule) prescribes the kinds of terms and conditions that the Corporation may include in an agreement entered into under subsection 12(3) of the Act, which deals with Water Infrastructure projects that are granted a loan under the National Water Infrastructure Loan Facility (Loan Facility).
The purpose of the Regional Investment Corporation (Water Infrastructure Project Agreements) Repeal Rules 2020 is to repeal the Rule. The Rule is no longer required as a result of the Loan Facility no longer being available.
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. David Littleproud MP
Minister for Agriculture, Drought and Emergency Management
Senator the Hon. Simon Birmingham
Minister for Finance