Commonwealth of Australia Explanatory Memoranda

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NATIONAL HEALTH REFORM AMENDMENT (NATIONAL HEALTH PERFORMANCE AUTHORITY) BILL 2011

                                  2010-2011



               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                                   SENATE











  NATIONAL HEALTH REFORM AMENDMENT (NATIONAL HEALTH PERFORMANCE AUTHORITY)
                                  BILL 2011




                    SUPPLEMENTARY EXPLANATORY MEMORANDUM




              Amendment to be Moved on Behalf of the Government















       (Circulated by authority of the Minister for Health and Ageing,
                         the Hon. Nicola Roxon, MP)
                                AMENDMENT TO
  NATIONAL HEALTH REFORM AMENDMENT (NATIONAL HEALTH PERFORMANCE AUTHORITY)
                                  BILL 2011


OUTLINE

The main purpose of the amendment to the National Health Reform Amendment
(National Health Performance Authority) Bill 2011 is to remove the
provision prohibiting members of the National Health Performance Authority
from engaging in paid employment outside the duties of his or her office.

The main purpose of the National Health Reform Amendment (National Health
Performance Authority) Bill 2011 is to establish the National Health
Performance Authority (the Performance Authority).

The amendment will involve the omission of a provision prohibiting a full
time member of the Performance Authority from engaging in paid employment
outside the duties of his or her office without the Minister's approval and
a provision prohibiting a part-time member of the Performance Authority to
engage in paid employment that conflict or may conflict with the proper
performance of his or her duties.:


FINANCIAL IMPACT
The amendment has no financial impact.
NATIONAL HEALTH REFORM AMENDMENT (NATIONAL HEALTH PERFORMANCE AUTHORITY)
BILL 2011

NOTES ON CLAUSES

Clauses (1)

Clause (1).  This amendment omits section 78 of the National Health Reform
Amendment (National Health Performance Authority) Bill 2011.  This
amendment recognises the constraints experienced by the Commonwealth in
choosing candidates for possible appointment as Chair, Deputy Chairs and
other members of the National Health Performance Authority and the
Independent Hospital Pricing Authority.  High calibre candidates with the
relevant expertise are usually engaged in paid employment that would
conflict with their role on these authorities.  There would be very few
persons who are retired or are not employed in subject areas similar to
those necessary for the performance of the function of the Performance
Authority.

In general, the members of these authorities would not be engaged as a full
time member.  Therefore, the provision set out in subsection 78(1) which
provides that a full time member of the Performance Authority must not
engage in paid employment outside the duties of his or her office without
the Minister's approval is not required.

Clause 1 also removes the requirement set out in subsection 78(2) that a
part-time member of the Performance Authority must not engage in any paid
employment that conflicts with the proper performance of his or her duties.
 The omission of this provision would remove the constraints imposed by the
current provision on the Minister in appointing suitably qualified persons
as members (including the Chair and Deputy Chair of the Performance
Authority).

Any conflict of interest would be governed by current sections 76 and 77.
Section 76 requires a member to disclose to the Minister all interests,
pecuniary or otherwise, that conflict or could conflict with the proper
performance of the member's functions.  Section 77 requires a member to
inform other Performance Authority members as soon as they become aware of
an interest in a matter being considered by the Performance Authority, and
may not be present or take part in consideration of the matter unless the
other members determine otherwise.  The affected member must not be present
or take part in the deliberation surrounding a question of their
participation in decision making which involve a conflict of interest.