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2022 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES High Speed Rail Authority Bill 2022 EXPLANATORY MEMORANDUM (Circulated by authority of the Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon Catherine King MP)HIGH SPEED RAIL AUTHORITY OUTLINE 1. This Bill establishes the High Speed Rail Authority as an independent body to advise on, plan and develop the high speed rail system. 2. The Bill will give legislative authority for an Act to establish the High Speed Rail Authority as a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013. 3. This Bill sets out the functions and powers of the High Speed Rail Authority, including the composition of its five-member governance board, including the Chair, as the accountable authority. Board members will be appointed based on consideration of their qualifications, gender, geographical representation, knowledge, skills or experience in railways, transport infrastructure and ability to coordinate effectively with jurisdictions. The Minister has the authority to appoint Board members and the Chair, including acting appointments, via written instrument. 4. The role of the High Speed Rail Authority will be to: • lead, plan, develop, coordinate, oversee and monitor the construction and operation of a high speed rail network in Australia • provide advice on the policy and standards for the efficient and effective development and construction of a high speed rail network • ensure that the high speed rail network provides an attractive competitive passenger transport service that is reliable, safe, frequent, accessible, efficient and cost-effective • consult with state and territory governments, interested stakeholders, and the public generally on matters relating to the high speed rail corridors and high speed rail network • provide independent advice on the necessary interoperability and uniformity of the high speed rail network across jurisdictions including working with the National Transport Commission and state transport regulators in developing codes of practice, guidelines and standards to ensure a standardised consistent high speed rail network across jurisdictions (for example, interoperable rolling stock, track gauge, signalling, power supply etc.) • deliver on the existing scope and functions of the National Faster Rail Agency in collaboration with the Department. 5. The High Speed Rail Authority may engage consultants to conduct planning and update existing business cases and develop business cases for new high speed rail corridors. 6. The High Speed Rail Authority will comprise of staff members employed under the Public Service Act 1999 or consultants. Staff members will have knowledge or experience in fields relevant to the Authority's key functions and provide administrative support. Detailed provisions on the terms and conditions of appointments and staffing are subject to this Act as well as the Public Governance, Performance and Accountability Act 2013, the Public Service Act 1999 and the Remuneration Tribunal Act 1973. 7. This Act also sets out the requirements for the Authority to meet, vote, and make decisions in line with its established functions and powers. 1
Financial impact statement This Bill will have no financial impact as any impacts will be offset. The Australian Government has made a commitment to establish the High Speed Rail Authority as a statutory agency to begin work on the Sydney to Newcastle corridor as a priority. 2
Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 High Speed Rail Authority Bill 2022 This Bill 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 Bill/Legislative Instrument The Bill gives legislative authority for an Act to establish the High Speed Rail Authority as a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013. The objective of the Authority is to deliver on the government's commitment of providing an efficient and effect high speed rail network to provide Australians with a fast mode of travel between capital cities, enhance connectivity of regional centres with major population centres, and generating broad economic benefits. Human rights implications The Bill, if enacted, will not engage any of the applicable rights or freedoms outlined in the Human Rights (Parliamentary Scrutiny) Act 2011, such as those encompassed in the International Covenant on Civil and Political Rights. Conclusion The Bill does not propose any offences or penalties that limit any human rights. Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon Catherine King MP 3
NOTES ON CLAUSES Part 1 - Preliminary Clause 1: Short title 1. Once enacted, the short title of the Bill will be the High Speed Rail Authority Act 2022. Clause 2: Commencement 2. The whole of the Act will commence upon proclamation by the Governor General. If the Act does not commence within six months from the day it receives Royal Assent, it will automatically commence the next day after the six months have lapsed. From the day this Act receives Royal Assent, the Minister will be able to appoint members of the Board. These appointments will take effect upon commencement of the High Speed Rail Authority either on proclamation or six months after the Act receives Royal Assent. This commencement clause allows the Authority to have a Board in place upon commencement in order to lead and undertake the necessary functions of the Authority. Without it, the Authority would commence without key members and officers who could ensure it can operate and be administered appropriately. The Board will appoint a CEO as its first priority. Clause 3: Simplified outline of this Act 3. This clause articulates the simplified outline of the Act, which covers the functions of the Authority, the Board, CEO and staff of the Authority and other miscellaneous items. Whilst this clause is included to assist readers to understand the substantive provisions, the outlines are not intended to be comprehensive. It is intended that readers should rely on the substantive provisions and explanation in this Explanatory Memorandum to understand each parts of the Act. Clause 4: Definitions 4. This clause provides full definitions of a number of terms used extensively in the Bill. 5. The term Chair refers to the Chair of the five-member Board who is also one of the five members. 6. The term Board member refers to the Chair and the members of the Board. 7. The term faster rail network refers to railway networks which does not support high speed trains, but supports other trains such as the faster and fast trains. 8. The term high speed rail network refers to a network of railways on which high speed rail trains operate, but may in part support fast and faster trains in particular sections of the network, or extends from corridors of the faster rail network. Clause 5: Act binds the Crown 9. This Clause provides that the Act binds the Crown in right of the Commonwealth. 4
Part 2 - High Speed Rail Authority Division 1 - Introduction Clause 6: Simplified outline of this Part 10. This clause articulates the simplified outline of this Part, which establishes the High Speed Rail Authority, its functions and powers, and the general directions the Minister can give to the Authority. Division 2 - Establishment and functions Clause 7: Establishment 11. Clause 7 is a formal provision establishing the High Speed Rail Authority. The High Speed Rail Authority is a corporate Commonwealth entity for the purposes of the Public Governance, Performance and Accountability Act 2013. The Authority is to be a body corporate, shall have a seal, may acquire, hold and dispose of real and personal property and may sue or be sued. The seal of the Authority is to be the responsibility of the Board and is to be used as the Board directs. The clause also provides that the courts shall take judicial notice of the seal. The High Speed Rail Authority will have all the functions, powers, and liabilities exercisable as a body corporate and all the normal incidents of corporate personality. Clause 8: Functions 12. This clause provides a detailed description of the functions of the High Speed Rail Authority. All the functions outlined in this clause are aimed at enabling strategic planning of the high speed rail network across jurisdictions. All of the Authority's functions as related in Clause 8 are in relation to work associated with both high speed rail and faster rail. All the functions related to faster rail cover the scope and objectives of the National Faster Rail Agency. 13. Functions 1(a)(i) gives the Authority a leading role in the planning and policy development of the high speed rail network, including the ability to oversee the planning and development works done by States and Territories. 14. The purpose of function 1(a)(ii) is for the Authority to consult and provide strategic directions to States and Territories on the interoperability of the high speed rail network, and to work with jurisdictions to manage and develop strategies to deal with funding and implementation risks. 15. Function 1(a)(iii) allows the Authority to provide advice and recommendations to the Minister, States and Territories, transport authorities, companies, partners, clients, stakeholders and any other relevant party. The advice and recommendations can relate to the planning, development, and implementation of the high speed rail network, including environmental issues. The Authority can ensure the interconnectedness of the high speed rail network across jurisdictions by developing consistent standards and codes of practice. 16. Function 1(a)(iv) includes undertaking evaluation and research to inform and update business cases and develop business cases for new or existing rail corridors. 17. Function 1(b) and 2(c) allows the Authority to obtain State and Territory consent to undertake construction work on a high speed rail network. This includes extending existing faster rail corridors into the high speed rail network, or building new faster rail 5
corridors that will become part of the high speed rail network. The construction and extension function also includes undertaking land acquisition, investment in land interests and land use planning. 18. There is also capacity for the Minister to add functions over time. Clause 9: Powers 19. This clause gives the High Speed Rail Authority the power to do all things necessary or convenient to be done for or in connection with its functions. Other powers include those necessary for a body corporate to operate, such as the power to enter into contracts or agreements, acquire, hold and dispose of real or personal property, as well as raise money, by appropriate means, for the purpose of the Authority. Clause 10: Authority does not have the privileges and immunities of the Crown 20. Clause 10 provides that the Authority does not have the privileges and immunities of the Crown in right of the Commonwealth. Division 3 - Minister may give directions to the Authority Clause 11: General directions 21. Clause 11 outlines the circumstances in which the Minister may direct the High Speed Rail Authority to perform its functions. The Minister may provide written directions to the Authority about the performance of its functions, by legislative instrument. Any direction must be of a general nature only to which the Authority must comply. In order to ensure the independence of advice, the Minister cannot give directions to the Authority on the content of any advice given by the Authority. Part 3 - Board of the Authority Division 1 - Introduction Clause 12: Simplified outline of this Part 22. This clause articulates the simplified outline of this Part establishing the Board of the Authority. This includes the Board's main functions, appointment of its members, and decision-making. Division 2 - Establishment and functions of the Board Clause 13: Establishment of the Board 23. Clause 13 is a formal provision establishing the Board of the High Speed Rail Authority (the Board). Clause 14: Functions of the Board 24. This clause provides that the functions of the Board are to ensure proper, efficient and effective performance of the Authority and to determine its strategies and policies, subject 6
to ministerial direction (see clause 11). This clause also provides for the Board, as the accountable authority, to do all things necessary or convenient in the performance of its functions, including any other functions conferred on the Board by this Act. Division 3 - Board members Clause 15: Membership 25. The Board will comprise of five board members, including a Chair of the board. Clause 16: Appointment 26. The Minister will appoint, by written instrument, the five members considered to have the appropriate qualifications, knowledge, skills and experience. The Minister may consider whether the he/she is satisfied that appointees have sufficient skills and qualifications in areas including, but not limited to, transport infrastructure, rail construction, market delivery, project evaluation, project planning and delivery and experience in local government or the private sector. The Minister will also make considerations for Board members to be appointed with fair and equal representation of gender and geographical representation of jurisdictions that are impacted by the rail network. 27. The Minister will also appoint the Chair of the Board. Appointments are made on a part- time basis, although provision is made for the Chair to be appointed full-time. Clause 17: Term of appointment 28. The term of appointment is up to three years. The period reflects the Authority's status as an overseeing authority and to ensure it has sufficient flexibility in its composition to continue to fulfil its functions as related issues evolve. Clause 18: Acting appointments 29. This clause provides that the Minister may appoint an appointed Board member to act as the Chair where there is a vacancy in that office. A member may also act as the chair should the chair be absent from duty, or from Australia, or become unavailable for any reason or be unable to perform the duties of office, to ensure that the functions of the Authority can be progressed in the chair's absence. 30. Sub-clause 18(2) provides that the Minister may appoint a person who is not a Board member to act as an appointed member during a vacancy, or when a Board member becomes unavailable for any reason. Clause 19: Terms and conditions 31. This clause provides for terms and conditions of office for a Board member, not otherwise provided for in the Act, to be determined by the Minister. Clause 20: Remuneration 32. This clause provides that a member is to be paid remuneration determined by the Remuneration Tribunal, including any allowances. The Remuneration Tribunal is required to determine remuneration for offices that meet the definition of 'public office' in s3(4) of 7
the Remuneration Tribunal Act 1973. This definition includes all offices established under statute. 33. A member is to be paid the remuneration prescribed by the rules if no determination for their remuneration is in operation by the Tribunal. Clause 21: Leave of absence 34. Clause 21 outlines the leave provisions for members and the Chair in accordance with their remuneration determination set by the Remuneration Tribunal. This clause provides that the Minister may grant leave to the Chair other than recreation leave, and the Chair may grant leave of absence to the Board members based on terms and conditions they see fit. The Chair will also notify the Minister if they grant leave to a Board member for a period greater than six months. Clause 22: Other paid work 35. This clause allows the Minister to provide approval if any members, including the Chair, wish to engage in other paid work. The Minister will determine if the work engaged could conflict with the performance of their duties as a member of the Authority. Clause 23: Resignation 36. This clause outlines the formal arrangements for the resignation of members. An appointed member may resign in writing and deliver this to the Minister. Its effect will take place on the day the Minister receives the notice or at a later date if it is specified in the notice. Clause 24: Termination of appointment 37. This clause sets out the conditions under which the Minister may terminate the appointment of a member. The Minister shall terminate a Board member's appointment for misbehaviour, physical or mental incapacity, if the member becomes bankrupt, or applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, or compounds with Board member's creditors, or makes an assignment of the Board member's remuneration for the benefit of the Board member's creditors. 38. For a full-time Chair, the Minister shall terminate the appointment if they are absent without leave for the period prescribed in sub-clause 24(d)(i) or if the Chair engages in paid work outside of their duties of Office, without the Minister's approval. For a part- time Board member, the Minister shall terminate the appointment if the member is absent from three consecutive meetings without leave or the member engages in paid work that conflicts or could conflict with their performance of Board member duties, as determined by the Minister. Division 4 - Meetings of the Board Clause 25: Convening meetings 39. This clause outlines the provisions relating to the number of meetings of the High Speed Rail Authority. The Chair shall convene such meetings of the Board as are necessary for 8
the efficient conduct of its functions, and shall convene a meeting on receipt of a written request signed by the Minister or no fewer than three members. 40. The Chair may convene a meeting at any time and must do so at least four times each calendar year, with the exception of the first calendar year in which this Act commences. Clause 26: Presiding at meetings 41. This clause outlines the role of the Chair to preside at meetings or, in the case of absence of the Chair, a member elected by those present shall preside. Clause 27: Quorum 42. This clause outlines the number of members needed to form a quorum is the majority of Board members. In the special circumstances when a member leaves the meeting or when they cannot be present to deliberate as required by section 29 of the Public Governance, Performance and Accountability Act 2013, notwithstanding this member's absence, the other members will constitute a quorum. Clause 28: Voting at meetings 43. This clause outlines the rules relating to making decisions on matters at meetings, where the majority of votes of members who are present and voting determines the decision. 44. Sub-clause 28(2) provides that where there is an equality of votes, the tie will be broken by the casting vote of the presiding member. Clause 29: Conduct of meetings 45. Clause 29 allows the Board to establish and regulate rules for the conduct of its meetings as it sees fit, including the way members may participate in meetings, in accordance with Section 33B of the Acts Interpretation Act 1901. Clause 30: Minutes 46. This clause requires the Board to keep minutes of meetings. Clause 31: Decisions without meetings 47. This clause allows the Board to conduct business out of session should it determine it necessary and outlines the rules for making decisions under these circumstances. Part 4 - Chief Executive Officer, staff and consultants Division 1 - Introduction Clause 32: Simplified outline of this Part 48. This clause articulates the simplified outline of this Part in regards to the Chief Executive Officer (CEO) of the Authority, the CEO's functions and how the Authority may employ staff. 9
Division 2 - Chief Executive Officer Clause 33: Chief Executive Officer 49. This clause provides for a Chief Executive Officer of the High Speed Rail Authority. Clause 34: Functions of the CEO 50. This clause details the functions of the CEO. The primary function is to ensure the day-to- day administration of the Authority and to do all things necessary or convenient to be done for in connection with the performance of his or her duties. The CEO shall manage the affairs of the Authority in accordance with the policies and strategies of the Board. Clause 35: CEO to act in accordance with directions of the Board 51. Clause 35 outlines the circumstances in which the Board may direct the CEO to perform his or her duties. This may take the form of the Board providing the CEO with a written direction, so long as the directions are not inconsistent with the directions given to Authority by the Minister under section 11. The CEO must comply with the Board's directions unless those directions relate to the CEO's functions and powers under the Public Service Act 1999. 52. Sub-clause 35(4) provides that the direction given by the Board is not a legislative instrument. This sub-clause operates as a declaration of the law, and is not prescribing the sub-clause as having substantive exemption from being a legislative instrument under the Legislation Act 2003. Clause 36: Appointment 53. The CEO can be appointed by the Board by written instrument, after consultation with the Minister, on a full time basis, for up to, but not exceeding, five years. The CEO cannot be a Board member. Clause 37: Acting appointment 54. This clause allows the Board to appoint an acting CEO, after consultation with the Minister, should the office become vacant for a period or for any reason, so long as the appointee is not a Board member. Clause 38: Terms and conditions 55. This clause provides for terms and conditions of office for a CEO, not otherwise provided for in the Act, to be determined by the Board. Clause 39: Remuneration 56. This clause provides that the CEO is to be paid remuneration determined by the Remuneration Tribunal. The CEO is to be paid the remuneration, including allowances, prescribed by the rules if no determination for their remuneration is in operation by the Tribunal. 10
Clause 40: Leave of absence 57. This clause provides that the CEO has leave entitlements under the Remuneration Tribunal. Outside of this type of leave, the Chair may grant leave of absence to the CEO on such terms and conditions as the Chair determines. The Chair will also notify the Minister if the leave granted is for a period greater than one month. Clause 41: Other paid work 58. This clause prevents the CEO from engaging in work outside the duties of their office in the Authority unless the Chair provides approval. Clause 42: Disclosure of interests 59. This clause outlines the requirements for the CEO to declare any interests, pecuniary or otherwise, to the Board under section 29 of the Public Governance, Performance and Accountability Act 2013. Clause 43: Resignation 60. This clause outlines the formal arrangements for the resignation of the CEO. A CEO may resign in writing and deliver this to the Board. The date of effect is the day it is received by the Board unless otherwise stated in the written notice. The Chair of the Board is then required to notify the Minister of this resignation. Clause 44: Termination of appointment 61. This clause sets out the conditions under which the Board may terminate the appointment of a CEO. The Board shall terminate a CEO's appointment for misbehaviour, physical or mental incapacity, if the CEO becomes bankrupt or applies to take the benefit of any law for relief of bankruptcy or insolvency, compounds with creditors, makes an assignment of the CEO's remuneration for the benefit of their creditors, if they are absent without leave for the period prescribed in sub-clause 44(d), if the CEO engages in other paid work without the Chair's approval, or failing to comply with section 29 of the Public Governance, Performance and Accountability Act 2013. 62. The Board is then required to notify the Minister of this termination. Division 3 - Staff and consultants Clause 45: Staff 63. Staff will be engaged following the legal establishment of the Authority. These staff will be employees of the High Speed Rail Authority and will be recruited under the Public Service Act 1999. Staffing will be the responsibility of the CEO, who shall have all the powers exercisable of a Head of a Statutory Agency. 64. The Authority will have the power to second staff from other agencies under the Public Service Act 1999 to ensure there are appropriately skilled personnel to undertake the Authority's functions and objectives. 11
Clause 46: Consultants 65. This clause provides that the Authority may engage persons of suitable qualifications and experience as consultants. 66. The Authority may, through the engagement of consultants, establish an independent expert panel with national and international representatives, to provide evidence-based advice and guidance on the best practice for developing and implementing the high speed rail system, to inform corridor identification, and codes and operating standards for the high speed rail network. These decisions will be at the discretion of the Authority once it is established. Part 5 - Miscellaneous Clause 47: Simplified outline of this Part 67. This clause articulates the simplified outline of this Part relating to miscellaneous matters such as the Authority's corporate plan requirements, reviewing the Act and the Minister's power to make rules. Clause 48: Corporate plan 68. This clause provides that the Board must prepare a corporate plan for the purpose of section 35 of the Public Governance, Performance and Accountability Act 2013. The Board shall consult with the Minister in the preparation of the corporate plan and may also consult with stakeholders as per sub-clause 48(b) if suitable. Clause 49: Review of this Act 69. This clause provides for the operation of this Act and the rules to be reviewed at least once every ten years. The Minister shall request the review and table the report of the review in each House of the Parliament within fifteen sitting days of the House after receiving the report. Clause 50: Rules 70. This clause enables rules to be made by the Minister which will include, but not limited to, prescribing additional functions on the Authority and the remuneration conditions for Board members and the CEO which are not determined by the Remuneration Tribunal. 71. Dealing with these matters in rules rather than regulations accords with the Office of Parliamentary Counsel's Drafting Direction No. 3.8 - Subordinate legislation. That Drafting Direction states that 'OPC's starting point is that subordinate instruments should be made in the form of legislative instruments (as distinct from regulations) unless there is good reason not to do so'. 72. Consistent with the Drafting Direction, the approach of dealing with these matters in rules (rather than regulations) has a number of advantages including: (a) it facilitates the use of a single type of legislative instrument (or a reduced number of types of instruments) being needed for the Act; and (b) it enables the number and content of the legislative instruments under the Act to be rationalised; and 12
(c) it simplifies the language and structure of the provisions in the Act that provide the authority for the legislative instruments; and (d) it shortens the Act. 73. Due to these advantages, the Drafting Direction states that drafters should adopt this approach where appropriate with new Acts. 74. The Drafting Direction states that matters such as compliance and enforcement, the imposition of taxes, setting amounts to be appropriated, and amendments to the text of an Act, should be included in regulations unless there is a strong justification otherwise. The Bill does not enable rules to provide for any of these matters. This is clarified by the subclause that specifically prevents rules from including these types of matters. 75. This clause also clarifies that the rules made under the clause are a legislative instrument for the purposes of the Legislation Act 2003. Under that Act, legislative instruments and their explanatory statements must be tabled in both Houses of the Parliament within six sitting days of the date of registration of the instrument on the Federal Register of Legislation. Once tabled, the rules will be subject to the same level of parliamentary scrutiny as regulations (including consideration by the Senate Standing Committee for the Scrutiny of Delegated Legislation), and a motion to disallow the rules may be moved in either House of the Parliament within 15 sitting days of the date the rules are tabled. 13