AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH AMENDMENT BILL 2007 Explanatory Memorandum

Commonwealth of Australia Explanatory Memoranda

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AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH AMENDMENT BILL 2007

2004-2005-2006-2007 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH AMENDMENT BILL 2007 EXPLANATORY MEMORANDUM (Circulated by authority of the Minister for Foreign Affairs, the Honourable Alexander Downer MP)

AUSTRALIAN CENTRE FOR INTERNATIONAL AGRICULTURAL RESEARCH AMENDMENT BILL 2007 OUTLINE The Australian Centre for International Agricultural Research Amendment Bill 2007 (referred to in this Explanatory Memorandum as the "Bill") implements changes to the corporate governance of the Australian Centre for Agricultural Research (the "Centre") established under the Australian Centre for International Agricultural Research Act 1982 (the "Act"). The Bill is required to enact revised governance arrangements in ACIAR's enabling legislation as part of the government's response to the 2003 Review of Corporate Governance of Statutory Authorities and Office Holders (the "Uhrig Review"). The effect of the Bill will be to replace existing governance arrangements within the Centre to reflect the executive management model recommended in the Uhrig Review. Key changes involve the abolition of the Board of Management of the Centre along with the office of Director and the creation of a Commission for International Agricultural Research (the "Commission") and a new position of Chief Executive Officer (the "CEO"). The Commission will be established to provide collective decision-making and expert advice to the Minister on specific aspects of the Centre's operations, including program formulation, priority setting and funding. Consistent with the executive management model in the Uhrig Review, responsibility for the administrative and financial management of the Centre will be conferred on the new position of CEO, who will be directly accountable to the Minister. These changes are aimed at clarifying and segregating the administrative and advisory functions of the Centre to ensure best practice in corporate governance. The Bill also revokes the Centre's body corporate status as retention of the Centre as a legal personality separate from the Commonwealth has been assessed as unnecessary given the Centre is budget funded, is a prescribed agency under the Financial Management and Accountability Act 1997 and does not have any need to own assets in its own right. There is no change to the functions or objectives of the Policy Advisory Council (the "Council") established under the Act. The only changes in this regard include amendments to the Council's constitution to reflect the new governance arrangements and provisions to ensure that there is no duplication in membership between the Council and the Commission. These changes do not alter the functions of the Centre. The Bill includes transitional arrangements to ensure the governance changes do not disrupt the performance of the Centre's functions. FINANCIAL IMPACT STATEMENT The Bill will have no financial impact.

ABBREVIATIONS The following abbreviations are used in this explanatory memorandum: Act, unless the context indicates otherwise, means the Australian Centre for International Agricultural Research Act 1982; AIA means the Acts Interpretation Act 1901; Centre means the Australian Centre for International Agricultural Research as established by section 4(1) of the Act; CEO means Chief Executive Officer; Commission means the Commission for International Agricultural Research as set out in item 17 of Schedule 1 of this Bill; Council means the Policy Advisory Council established by section 17 of the Act; and FMA Act means the Financial Management and Accountability Act 1997.

NOTES ON CLAUSES Clause 1 - Short Title Clause 1 is a formal provision specifying the short title, the Australian Centre for International Agricultural Research Amendment Act 2007. Clause 2 - Commencement Clause 2(1) of the Bill provides that the Act commences on 1 July 2007. Clause 3 - Schedule(s) Clause 3 provides that the Act is amended or repealed as set out in a Schedule to the Bill and any other item in a Schedule has effect according to its terms. Schedule 1 relates to amendments to the Act that are required to enact the changes in the governance arrangements of the Australian Centre for International Agricultural Research (Centre). Schedule 2 contains transitional provisions to ensure that the changes to the governance structure of the Centre do not disrupt its ability to continue to perform its functions.

Schedule 1 - Amendments Item 1 - Section 3 (definition of appoint) This item is a technical amendment that repeals the definition of "appoint" as this definition is suitably provided for in the Acts Interpretation Act 1901. Item 2 - Section 3 (definition of appointed member of the Board) This item repeals the definition of "appointed member of the Board" as it relates to a term used in sections of the Act that are being repealed to reflect the revised governance arrangements to be enacted by this Bill (see Item 15). Item 3 - Section 3 (definition of Board) This item repeals the definition of "Board" in section 3. Under the revised governance arrangements, the Centre will no longer have a Board. The definition is redundant as a consequence of the changes made by this Bill. Item 4 - Section 3 This item creates a definition for the new position of the Chief Executive Officer (CEO) reflecting the transition to an executive management structure. Item 5 - Section 3 (definition of Chair) This item repeals the existing definition of "Chair" and substitutes that definition to reflect the new position of Chair of the Commission. Item 6 and Item 7 These items create definitions for the new Commission and the position of a Commissioner. Item 8 - Section 3 (definition of Director) This item repeals the definition of "Director" as it relates to a term used in sections of the Act that are being repealed by this Bill. Item 9 - Subsections 4(2), (3) and (4) This item repeals the section establishing the status of ACIAR as a body corporate. Retention of the Centre as a legal personality separate from the Commonwealth has been assessed as unnecessary given the Centre is budget funded, is a prescribed agency under the FMA Act and does not have any need to own assets in its own right. The item substitutes those subsections with a new subsection (2) which states that the Centre will consist of the CEO and all staff engaged under section 30 of the Act. Item 10 - After section 4 This item establishes the statutory office of the CEO of the Centre. This new provision is required so as to establish the head of the agency in an executive management governance structure after repealing of the provisions that established the former governing Board. Item 11 - Subsection 5(1) This item confers the functions of the Centre on the CEO. As the Centre is no longer a body corporate and will not have a Board responsible for the conduct and control of the Centre's affairs, it can no longer perform these functions in its own right. This amendment is not intended to amend

any of the functions currently performed by the Centre. Rather, the functions of the old Centre will be vested in the CEO. Item 12 - Paragraph 5(1)(d) This item is a consequential amendment as the functions of the Centre will be vested in the CEO. The omission of the term "its" allows for grammatical accuracy and the reference to paragraph (a) allows for greater certainty and consistency in the scope of the "research programs" mentioned. Item 13 - Paragraph 5(1)(e) This item omits the personal pronoun "its" when referring to the performance of the Centre's functions. This is a consequential amendment as the functions of the Centre will be vested in the CEO. The substitution of "those" allows for greater certainty and consistency in the scope of "research programs" mentioned. Item 14 - Subsection 5(2) and (3) This item repeals and substitutes subsections 5(2) and (3) of the Act to clarify the role of the CEO. The new provisions are consistent with the former subsections 5(2) and (3) of the Act. This reflects the vesting of Centre's existing functions in the CEO. This item inserts a new subsection 5(4) which requires the CEO, in performing his or her functions, to comply with any directions given by the Minister to the CEO under section 5A of the Act. Inclusion of this provision reflects the new governance and accountability arrangements. Item 15 - After section 5 This item inserts a new section 5A which allows the Minister to give written directions to the CEO with respect to the performance of the CEO's functions under the Act (including in relation to the strategic direction the CEO should take in performing his or her functions). Under the old governance structure, the Minister was able to give directions to the Board on similar terms. Inclusion of this new provision reflects the corporate governance changes to the structure of the Centre, particularly the abolition of the Board and its Chair and the vesting of the Centre's functions in the CEO. Subsection 5A(2) confirms that a direction given under subsection 5A(1) is not a legislative instrument. This provision is merely stating what the position would be in any event under the Legislative Instruments Act 2003. Item 16 - Section 6 This item repeals provisions relating to powers that were conferred on the Centre. The repeal of these provisions is required because the Centre will no longer be a separate legal entity capable of exercising those powers and will not have a Board responsible for the conduct and control of the affairs of the Centre. After repeal of this provision, the existing functions of the Centre will be vested in the CEO (see item 11). As the new Centre will consist of the CEO and Centre staff (see item 9), the item substitutes the existing section 6 with a requirement that the functions of the staff of the Centre are to assist the CEO to perform his or her functions. Item 17 - Part III This item repeals the existing Part III of the Act that established the Board of Management of the Centre and substitutes that part with new provisions establishing a Commission for International Agricultural Research. These amendments are necessary to ensure the new Centre reflects the executive management model proposed by Mr John Uhrig in his Review of Corporate Governance

of Statutory Authorities and Office Holders (2003), but at the same time retain a mechanism for collective decision-making and expert advice to the Minister on specific aspects of the Centre's operations. Part III, Division 1, section 7 establishes the new Commission for International Agricultural Research ("the Commission"). Part III, Division 1, section 8 specifies that the Commission is to consist of a Chair and six other Commissioners. Part III, Division 1, section 9 sets out the functions of the Commission which, unlike the existing Board, will not have a role in the governance of the Centre. Instead, the Commission will provide a forum for collective decision-making to ensure expert advice is provided to the Minister on program formulation, priority setting and funding. This separation of roles between the Commission and the CEO reflects the new governance and accountability arrangements. Part III, Division 2, section 10 provides for a Commissioner to be appointed by the Governor General and hold office for a period not exceeding three years. To ensure clarity of purpose and distinction of roles between the Commission and the Council, a person cannot be appointed as a Commissioner and as a member of the Policy Advisory Council ("the Council"). Part III, Division 2, section 11 provides that Commissioners, like existing Board members, will hold office on a part-time basis. Part III, Division 2, section 12 provides that Commissioners will hold office on the terms and conditions (if any) determined by the Governor-General. Part III, Division 2, section 13 provides for Commissioners to be paid remuneration as determined by the Remuneration Tribunal. Part III, Division 2, section 14 provides for Acting Commissioners to be appointed by the Minister in certain circumstances. Section 33A of the AIA applies. Part III, Division 2, section 15 provides for the granting of leave of absence for Commissioners and the Chair. Part III, Division 2, section 16 provides that a Commissioner may resign his or her appointment by notice in writing to the Governor-General. Part III, Division 2, section 16A provides the circumstances when the Governor-General must or may terminate the appointment of a Commissioner. Part III, Division 2, section 16B deals with the disclosure of personal interests by Commissioners. Subsection (1) require Commissioners to give written notice to the Minister of any direct or indirect pecuniary interests that the Commissioner has or acquires and that conflicts or could conflict with the proper performance of the Commissioner's functions. Subsection (2) places an obligation upon a Commissioner with a direct or indirect pecuniary interest in a matter being considered or about to be considered by the Commission to disclose the nature of that pecuniary interest to a meeting of the Commission. Subsections (3), (4) and (5) deal with situations as to when such disclosure must be made, where it must be recorded, and requires the relevant Commissioner to absent themselves from any deliberation and/or not to take part in any decision of the Commission on the matter. These provisions are required for the proper administration and conduct of the Commission. Part III, Division 3 addresses arrangements regarding meetings of the Commission. These provisions set out the framework in which the Commission is required to conduct meetings, and are required for the efficient and effective governance of the Commission. In many respects, the

provisions are similar to the requirements for meetings of the Board (which will be repealed by this Bill). Part III, Division 3, section 16C provides that the Commission is required to hold such meetings as are necessary for the efficient performance of its functions with meetings held at the times and places determined by the Commission. The Chair of the Commission may call a meeting at any time, and is required to ensure that the Commission hold at least four meetings in each financial year. Part III, Division 3, section 16D provides that each Commissioner is entitled to receive reasonable notice of the Commission's meetings. Part III, Division 3, section 16E provides for the Chair or, if the Chair is absent, an elected Commissioner to preside at Commission meetings. Part III, Division 3, section 16F provides for a quorum of four Commissioners (reflecting the increased number of Commissioners over present Board members). Part III, Division 3, section 16G provides for voting at meetings of the Commission. Part III, Division 3, section 16H provides for regulation of meeting proceedings. Part III, Division 4, section 16J enables the Commission to delegate by resolution all or any of its functions or powers under the Act to a Commissioner. This section specifies the scope of any delegation and deals with evidentiary matters. In particular; � the delegate must, when exercising a delegated function or power, comply with the written directions of the Commission; � the delegation continues in force despite a change in the constitution of the Commission; and � the delegation may be varied or revoked by resolution of the Commission. Sections 34AA to 34A of the AIA also apply. Part III, Division 5, section 16K provides that the Minister may give written directions to the Commission with respect to the performance of the Commission's functions under the Act. The Minister must have regard to any relevant advice received from the Council under section 18 when giving a direction to the Commission. Under subsection (3), the Minister must give a copy of a direction given under section 16K to the CEO. The purpose of this provision is to provide the Minister with an ability to direct the Commission to perform its functions under the Act in a particular way. Item 18 to Item 23 These items make amendments to Part IV of the Act which establishes the Policy Advisory Council (Council). Although the functions performed by the Council are not altered, the amendments are necessary to reflect the changes to the corporate governance structure of the Centre. Item 18 - Subsection 18(3) This amendment is required as part of the functions of the old Board have been conferred on the Commission. The Council's advice to the Minister is to be provided to the Commission. Item 19 - Paragraph 19(1)(b) This item is a consequential amendment as the office of the Director is abolished. The amendment also reflects the requirement at section 10(3) (see item 17) for there to be no duplication in

membership between the newly established Commission and the existing Council. Under new section 24, the CEO may be appointed as a Commissioner (including as Chair) (see item 25 below). Item 20 - After subsection 19(2) This item inserts a new provision, subsection 19(2A). The provision is similar to the new subsection 10(3) (see item 17) and reinforces that there can be no duplication in membership of the Commission and the Council to ensure distinct roles for each. Item 21 - Subsection 19(5) This item is an editorial amendment to ensure that the amended subsection is grammatically correct in light of the repeal of subsection 19(5)(b). Item 22 - Subsection 19(5)(b) This item is a consequential amendment as the office of the Director is abolished, and as noted at item 19 above, the position of CEO may be appointed as a Commissioner. Item 23 - After section 19 This item adds a new section 19A which provides for appointed members of the Council to be paid remuneration as determined by the Remuneration Tribunal and such allowances as are prescribed. The provision reflects section 40 of the Act which will be repealed by this Bill. That section provided for appointed members of the Council to be paid such remuneration as determined by the Remuneration Tribunal and such allowances as are prescribed. Item 24 - Subsection 23(9) This item is a consequential amendment as the office of the Director, or a person appointed to act as Director under section 29 of the Act, will be abolished by this Bill. In addition, it reflects item 19 above, which will repeal the subsection that states the Director is a member of the Council. Item 25 - Part V This item repeals Part V of the Act that established the office of Director and substitutes it with a new Part V - CEO. The establishment of a statutory office of CEO is consistent with an executive management structure. Part V, section 24 covers the appointment of the CEO, mirroring the provisions currently covering the position of Director. Section 24(1) provides for the appointment of the CEO by the Governor- General by written instrument. Section 24(2) provides that the CEO will hold office for the period specified in the instrument of appointment, with a limit that the term of appointment is not to exceed seven years. This section is not intended to limit the operation of the AIA which states that the power to appoint includes the power to re-appoint. Part V, subsection 24(3) provides that the CEO may be appointed as both the CEO and a Commissioner (including the Chair). It is intended that the CEO will be a member of the Commission, thereby ensuring consistency in advice to the Minister. In the interests of maintaining flexibility, this provision also permits an arrangement whereby the Chair of the Commission could be appointed as the CEO. Part V, section 25 provides that the CEO will hold office on a full-time basis. In the event the CEO is also appointed as a Commissioner under section 10, the CEO will hold that position on a part- time basis (section 11). Section 26 provides that the CEO holds office on the terms and conditions (if any) in relation to matters not covered by the Act that are determined by the Governor-General.

Part V, section 27 provides that the CEO is to be paid remuneration as determined by the Remuneration Tribunal. This provision ensures that the CEO's salary is set by an independent body commensurate with the person's statutory office and is entitled to receive such allowances as are prescribed. The provision reflects section 40 which will be repealed by this Bill. That section provided for the position of Director to be paid such remuneration as determined by the Remuneration Tribunal, and such allowances as are prescribed. Part V, section 28 expressly prohibits the CEO from engaging in paid employment outside the duties of his or her office without the Minister's approval. Part V, section 29 enables the Minister to appoint an acting CEO. This provision allows for the continuation of office of the CEO in his or her absence. Part V, section 29A provides for the Remuneration Tribunal to determine the recreation leave entitlements for the CEO. The Minister may grant the CEO leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines. Part V, section 29B provides that the CEO may resign his or her appointment by writing to the Governor-General. Part V, section 29C provides the circumstances in which the Governor General must and may terminate the appointment of the CEO. Subsection 29C(2)(d) adds that the Governor-General must terminate the appointment of the CEO if the CEO fails, without reasonable excuse, to comply with the disclosure of interests provisions under section 29D. Part V, section 29D requires the CEO to give written notice to the Minister of any direct or indirect pecuniary interests that could conflict with the proper performance of his or her functions. Part V, section 29E clarifies that the CEO is not subject to direction by the Commission in relation to the CEO's performance of governance functions, or exercise of powers, namely under the FMA Act and the Public Service Act 1999. Item 26 - Item 30 These items reflect the transfer of the functions of the Board to the CEO. As a result, the CEO may arrange with the bodies mentioned in section 31 for the services of officers or employees of those bodies to be made available to the CEO in relation to the performance of the CEO's functions. Item 31 - Section 32 This item substitutes the existing provision regarding the engagement of consultants. The CEO will be able to engage consultants on behalf of the Commonwealth to perform services for the CEO in relation to the CEO's functions. This amendment is required as the Centre will no longer be a body corporate, will not have legal personality separate from the Commonwealth and will not be managed by a Board. Item 32 - Sections 34 to 38 While the Centre will retain its statutory account under section 33 of the Act, the detailed financial arrangements applying to the Centre will be altered by this Bill. Existing sections 34-38 will be repealed and substituted with new provisions relating only to the Centre's statutory account. New section 34 specifies money that must be credited to the Centre's statutory account, whilst new section 35 clarifies the purposes for which amounts in the statutory account may be debited. Existing sections 36 to 38 of the Act are considered unnecessary on the basis that the Centre will not, as a result of this Bill, be a legal entity separate from the Commonwealth. In addition, the CEO in the performance of his or her functions will be required to comply with the FMA Act and FMA Regulations concerning the expenditure of public money.

Item 33 - Subsection 39(1) This item transfers from the Board to the CEO the duty to prepare and provide to the Minister an annual report of the operations of the Centre. Item 34 - At the end of subsection 39(2) In addition to existing prescribed elements of the contents of the annual report prepared under subsection 39(2) of the Act, this item requires the report to include particulars of all directions given during the relevant financial year by the Minister to the CEO under the new section 5A as well as particulars of all directions given during the relevant financial year by the Minister to the Commission under the new section 16K. The purpose of these provisions is to ensure the transparency of all Ministerial Directions given by the Minister to the CEO and Commission. Item 35 - Section 40 This item repeals section 40 of the Act because the offices of Director and the Board will be abolished by this Bill. Item 36 - Section 41 This item repeals section 41 and substitutes that section with a new provision which provides for the making of delegations. It specifies that the Minister may, by writing, delegate to any person all or any of the Minister's functions or powers under this Act. The Minister's ability to delegate to `any person' is required because there may be circumstances where it would not be appropriate for the Minister to delegate those functions or powers to the CEO.

Schedule 2 - Transitional provisions Part 1 - Preliminary Item 1 - Definitions This item provides definitions of certain terms which are used in Schedule 2. Part 2 - Assets, liabilities and legal proceedings Item 2 - Vesting of assets of Centre This item provides that, at the commencement time, the assets of the Centre will become the assets of the Commonwealth. The Commonwealth will become the Centre's successor in law in relation to those assets. This item is required because the Centre's body corporate status will be revoked by this Bill, which will result in the Centre no longer being a legal entity separate from the Commonwealth. The term "asset" is defined broadly in item 1 of Schedule 2. Item 3 - Vesting of liabilities of Centre This item provides that, at the commencement time, the liabilities of the Centre will become the liabilities of the Commonwealth. The Commonwealth will become the Centre's successor in law in relation to those liabilities. This item is required because the Centre's body corporate status will be revoked by this Bill, which will result in the Centre no longer being a legal entity separate from the Commonwealth. The term "liability" is defined broadly in item 1 of Schedule 2. Item 4 to Item 5 These items are standard provisions that facilitate the registration of the transfer of assets under any law of the Commonwealth, a State or a Territory that provides for the registration or recording of interests. For example, if an interest in real property located in a State was transferred to the Commonwealth under item 2, the mechanism in item 4 would facilitate the recording of this transfer in the relevant State's land title register. Item 6 - Substitution of Commonwealth as a party to pending proceedings Item 6 is intended to facilitate the smooth running of court and tribunal proceedings by substituting the Commonwealth as the appropriate party in any proceedings on foot at the commencement time in which the Centre was a party. This item is required because the Centre's body corporate status will be revoked by this Bill, which will result in the Centre no longer being a legal entity separate from the Commonwealth. Item 7 - Transfer of custody of Centre or Board records This item provides that any record or documents that are in the custody of the Centre or the Board immediately before the commencement time will be transferred into the custody of the CEO at or after the commencement time. Part 3 - Reference to, and things done by or in relation to the Centre Item 8 - Reference in instruments This item provides for instruments made before the commencement time that refer to the Centre or to the Director to continue to have effect after the commencement time, with a reference that

reflects the revised structure of the Centre. This is required given that other provisions of this Bill repeal the Board and office of Director and vest what were the statutory functions of the Centre in the CEO. Subitem 8(1) provides that reference to the Centre or to the Director will be substituted with CEO; Subitem 8(2) provides that if an instrument relates to assets or liabilities covered by item 2 or 3, the substitute reference should be the Commonwealth rather than the CEO; Subitem 8(3) provides for instruments made before the commencement time that refer to the Board to continue to have effect after the commencement time as if such references were to the Commission. The item is intended to avoid the need for instruments to be amended or replaced. After the commencement time, it will normally be appropriate for instruments to be taken to refer to the CEO, as the CEO will have the statutory functions that the Centre had before the commencement time. However, it is possible that in some cases subitems 8(1), (2) or (3) will lead to an inappropriate result. To cover this possibility, subitem 8(4) empowers the Minister to make an instrument providing that: � Subitems 8(1), 8(2) or 8(3) do not apply in a particular case; or � Subitem 8(1) applies as if the reference to the CEO in that item were a reference to the Commonwealth; or � Subitem 8(2) applies as if the reference to the Commonwealth in that item were a reference to the CEO; or � Subitem 8(3) applies as if the reference to the Commission in that item were a reference to the CEO. In instances where none of the above is appropriate and the Minister makes an instrument determining that subitem 8(1), 8(2) or 8(3) do not apply, subitem 8(5) provides that regulations may determine what the most appropriate substitute reference in the instrument should be. Subitem 8(6) confirms that an instrument issued by the Minister pursuant to subitem 8(4) is not a legislative instrument. In the majority of cases a determination issued under subitem 8(4) would not be legislative within the meaning of section 5 of the Legislative Instruments Act 2003. If any determination of this kind is arguably legislative within the meaning of that section (for example, because it changes such a reference in a legislative instrument), the determination has been declared not to be legislative as it is transitional and will only be required for a limited period of time. Item 9 - Operation of laws This item provides that, if anything was done by or in relation to the Centre or the Director, before the commencement time for the purposes of any law, after the commencement time it is taken to have been done by, or in relation to, the CEO. The purpose of this item is to avoid the need for things to be done again. After the commencement time, it will normally be appropriate for things to be taken to have been done by the CEO, as the CEO will have the statutory functions that the Centre had before the commencement time. However, it is possible that in some cases subitem 9(1) will lead to an inappropriate result. To cover this possibility, subitem 9(3) empowers the Minister to make an instrument providing that subitem 9(1) does not apply in a particular case, or it applies as if the reference to the CEO in that subitem was a reference to the Commonwealth.

If the Minister makes an instrument under subitem 9(3)(a) in relation to a specified thing, subitem 9(4) permits that regulations can be made in relation to that thing providing that after the commencement time the thing is taken to have been done by or in relation to, a specified person or body other than the Commonwealth or the CEO. Subitem 9(6) confirms that an instrument issued pursuant to subitem 9(3) is not a legislative instrument. This provision is merely stating what the position would be in any event under the Legislative Instruments Act 2003. Item 10 - Reporting requirements This item is required to enable the efficient and effective discharge of reporting obligations of the old and new Centre. Subitem 10(1) provides for the CEO to provide any reports (including financial statements or otherwise) which the Centre, the Director or the Board were required under a law to provide for a period where the reporting period ends after the commencement period. For example, where the Centre was required to produce an annual report, and the end of that reporting period occurs after commencement, the CEO is obliged to satisfy the reporting requirements of the Centre. Subitem 10(2) provides that in circumstances under subitem 10(1) where the CEO is obliged to provide a report relating to a specified period in which the CEO must report for the Centre both before and after commencement, for instance where commencement occurs during the reporting period, the CEO may discharge this reporting requirement through a single report. Subitem 10(3) provides that the CEO must provide any reports (including financial statements or otherwise) which the Centre, the Director or the Board were required under a law for a period where the reporting period ends before the commencement period, and where the report has not been provided by the commencement time. For example, where the Centre or the Director was required to produce an annual report covering the period 1 July 2006 to 30 June 2007 and the commencement time is 1 July 2007, the CEO will be required and enabled to provide that report. Subitem 10(4) confirms that if the CEO is required to provide a report under a law, the law applies to the CEO in respect of the report in the same way the law would have applied to the Centre, the Director or the Board in respect of the report. Part 4 - CEO, staff and consultants Item 11 - CEO The office of Director will cease to exist upon the commencement of Schedule 1 to the Bill. This item allows for the person holding office as the Director immediately before the commencement time to become the CEO after the commencement time, without the need for a new appointment by the Governor-General. This will not have the effect of extending the term of the person appointed as Director. Subitem 11(1)(b) ensures that the statutory appointment is on the same terms and conditions as applied to the person immediately before commencement. This item does not prevent those terms and conditions being varied after the commencement time. Item 12 - Staff of the Centre This item allows a person who is a member of staff immediately before the commencement time to be taken to have been engaged by the CEO at the commencement time. Subitem 12(2) ensures that the engagement is on the same terms and conditions as applied to the person immediately before the commencement time. This item does not prevent those terms and conditions being varied after the commencement time.

Item 13 - Arrangement relating to external staff This item allows for an arrangement in force under section 31 of the old law for the services of external staff to continue in force as if it had been entered into under section 31 of the new law. The effect of this will be that the services of the external staff will be made available to the CEO rather than to the Board. Item 14 - Consultants Consultants will be engaged by the CEO rather than by the Director on behalf of the Centre. This item allows for a person in respect of whom an engagement was in force under section 32 of the old law immediately before the commencement time is taken, at the commencement time, to have been engaged as a consultant under section 32 of the new law. Subitem 14(2) ensures that the engagement is on the same terms and conditions as applied to the person immediately before the commencement time. This item does not prevent those terms and conditions being varied after the commencement time. Part 5 - Other matters Item 15 - Exemption from stamp duty and other State and Territory taxes This item ensures that the operation of the transitional provisions in Schedule 2, in particular the transfer of assets and liabilities affected by items 2 and 3, does not result in a liability on any person to pay State or Territory stamp duty or tax. Item 16 - Constitutional safety net - acquisition of property It is not expected that any provisions in this Schedule will result in an acquisition of property within the meaning of the expression in the Constitution. However, if it does, item 16 sets out the standard Constitutional safety net provision. Item 17 - Certificates taken to be authentic To avoid ambiguity, certificates, including those relating to matters covered in items 4 and 5 of this Schedule, which may be made by the Minister, are to be taken as authentic. Item 18 - Delegation by Minister This item allows the Minister to delegate all or any of his or her powers and functions under Schedule 2 to the CEO. Subitem 18(1) provides that, in exercising powers or functions so delegated, the delegate must comply with any directions of the Minister. Item 19 - Regulations This item permits the Governor-General to make regulations prescribing matters required or permitted by Schedule 2 to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to Schedule 2. Subitem 19(2) clarifies that, in particular, regulations may be made prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by Schedule 1 to this Act.

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