Renewable Energy Equity Fund Program (Additional Function of the IR&D Board) Direction No. 1 of 1999

Overview

The Industry Research and Development Act 1986 was enacted to address the need for a framework that supports industry research and development activities, thereby fostering innovation and economic growth within Australia. The Act aimed to provide a legal foundation for the establishment of mechanisms that could facilitate funding and support for research and development projects across various sectors. The Industry Research and Development Board, established under the Act, plays a central role in administering programs that align with the objectives of promoting technological advancement and competitiveness. The Renewable Energy Equity Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1999, issued by the Minister for Industry, Science and Resources, Nicholas Hugh Minchin, further extends the Board’s functions to include the administration of the Renewable Energy Equity Fund. This direction, which came into effect on its publication in the Gazette, signifies a policy objective to support the development of renewable energy projects by providing financial investment through managed funds to eligible companies.

Scope and Application

The Renewable Energy Equity Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1999 applies to the Industry Research and Development Board, which is tasked with administering the Renewable Energy Equity Fund program as an additional function. This involves making investments or providing finance to managed funds that in turn invest in or finance eligible companies as defined in the REEF program, Policies and Practices Direction No. 1 of 1999. The scope of this Direction is limited to entities involved in the administration of the fund and the eligible companies that benefit from its investment. The geographic reach of this Direction is national, as it pertains to the Commonwealth of Australia and its policies. There are no explicit exclusions or thresholds mentioned within the text of the Direction itself, although it does reference other legislative instruments that may contain such details. The application of this Direction can be extended or restricted through subordinate instruments, such as the REEF program, Policies and Practices Direction No. 1 of 1999, which can be amended over time.

Key Provisions

The Renewable Energy Equity Fund program (Additional Function of the IR&D Board) Direction No. 1 of 1999 primarily establishes an additional function for the Industry Research and Development (IR&D) Board under the Industry Research and Development Act 1986. Section 3(1) of the Direction mandates that the IR&D Board shall administer the Renewable Energy Equity Fund program. This administration includes making investments or providing finance to managed funds, which in turn invest in, or provide finance to, companies that qualify as eligible investee companies, as defined in the REEF program, Policies and Practices Direction No. 1 of 1999, as amended from time to time (Section 3(2)). The obligations placed on the IR&D Board under this Direction are substantial. The Board must ensure that the administration of the Renewable Energy Equity Fund program adheres strictly to the guidelines and policies outlined in the REEF program, Policies and Practices Direction No. 1 of 1999, and any subsequent amendments. This includes managing investments and financial provisions in a manner that aligns with the program's objectives of promoting renewable energy initiatives. The Board is also responsible for overseeing the eligibility of investee companies to ensure they meet the criteria set forth in the relevant policies and practices direction. Failure to comply with the requirements set out in this Direction could result in various consequences. While specific offences and penalties are not detailed within the Direction itself, breaches of the Industry Research and Development Act 1986 or related directions could lead to civil or criminal penalties, depending on the severity and intent of the breach. The maximum penalties for breaches of the Act can include substantial fines and, in more severe cases, imprisonment. The exact penalties would be determined based on the specific nature of the breach and the discretion of the court. It is crucial for the IR&D Board to maintain strict adherence to the provisions to avoid any legal repercussions.