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2013-14-15
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
NATIONAL WATER COMMISSION (ABOLITION) BILL 2014
REVISED SUPPLEMENTARY EXPLANATORY MEMORANDUM
(Circulated by the authority of the Parliamentary Secretary to the Minister for the
Environment, the Hon Bob Baldwin MP)
NATIONAL WATER COMMISSION (ABOLITION) BILL 2014
GENERAL OUTLINE
1. On 25 September 2014, the Government introduced the National Water Commission
(Abolition) Bill 2014 (the Bill) into the Senate. The Bill gives effect to the
Government's 2014-15 Budget commitment to abolish the National Water
Commission (the NWC) upon commencement of the Bill and transfer key NWC
functions to existing Commonwealth agencies.
2. The Bill was referred to the Senate Environment and Communications Legislation
Committee (the Committee) for inquiry on 25 September 2014. The Committee
handed down its report on 24 November 2014.
3. The Government has considered the Committee's report as well as the submissions
made by stakeholders to the Committee inquiry. The Government has made a number
of refinements to the Bill due to this Committee process.
4. The amendments relate to the provisions of the Bill that amend the Water Act 2007
(Water Act) to transfer to the Productivity Commission (PC) two key statutory
functions. These functions are: the triennial assessments of progress on
implementation of the National Water Initiative (NWI); and the five-yearly audits of
the implementation of the Basin Plan 2012 (Basin Plan) and associated Basin State
water resource plans.
5. The purpose of the amendments is to ensure that the PC undertakes these functions in
consultation with a stakeholder reference panel or working group, and to ensure that
PC Commissioners have extensive skills and experience in an area relevant to these
functions.
6. The amendments will also make minor technical changes to the Bill to update the
Bill's commencement to the day after the Bill receives the Royal Assent, and a
consequential change to amend the period to be covered by the NWC's final annual
report.
Summary of Amendments
7. The amendments require at least one Commissioner to have extensive relevant skills
and experience in water resource management, as an area relevant to the triennial
assessments of progress on implementation of the NWI, and five-yearly audits of the
implementation of the Basin Plan.
8. The amendments also amend the Bill to require the PC to establish a stakeholder
working group to be established for each matter referred to the PC for inquiry. A
stakeholder working group established under the amended Bill will exchange
information, and may provide the PC with advice.
9. The stakeholder working group will be established by the PC and consist of
stakeholders appointed by the Productivity Minister who will participate on a
voluntary basis. The group will consist of representatives of agricultural,
environmental, industry, Indigenous or urban water bodies, or any other body with an
interest in the matters referred to the PC under the Bill. The stakeholder working
group will meet at least twice prior to the report being submitted to the Productivity
Minister in respect of an inquiry referred to the PC.
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10. The amendments also require the PC to have regard to the objectives set out in
clause 23 of the NWI in conducting triennial assessments of progress toward NWI
implementation under new section 88 of the Water Act, as amended by the Bill.
11. The Bill, as amended, will commence on the day after the Bill receives the Royal
Assent.
FINANCIAL IMPACT STATEMENT
12. The amendments will have no financial impact.
13. The financial impact of the closure of the NWC, as effected by the Bill, is a saving of
$20.9 million over four years.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
14. These amendments are 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.
15. The Bill's compatibility with human rights was outlined in the Explanatory
Memorandum to the Bill.
16. This amendment to the Bill includes minor refinements to improve stakeholder
consultation and PC expertise and has been assessed to be compatible with human
rights, consistent with the Explanatory Memorandum to the Bill.
17. This amendment is compatible with human rights as it does not engage any of the
applicable rights or freedoms.
NOTES ON INDIVIDUAL AMENDMENTS
Amendments to clause of Bill
18. This item amends Clause 2 of the Bill to provide that the Bill commences on the day
after the Bill receives the Royal Assent.
Amendments to Productivity Commission Act 1998 - Expertise of Commissioners
19. This item amends section 25 of the Productivity Commission Act 1998 (the PC Act),
which provides that the Productivity Minister may appoint Associate Commissioners
following consultation with the PC Chair.
20. This item inserts new subsections 25(2) and 25(3), which require the Productivity
Minister to appoint an Associate Commissioner for the purposes of inquiries into the
effectiveness of Basin Plan implementation and progress toward NWI objectives and
outcomes. An Associate Commissioner appointed under subsection 25(3) must have
extensive skills and experience in water resource management.
21. There is also a consequential amendment to renumber subsection 25(1) due to the
addition of new subsections 25(2) and 25(3).
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Amendments to clause of Bill - Basin Plan audits
22. This amendment will amend Item 6 of the Bill so that new subsection 87(3A) requires
the Productivity Minister to establish a stakeholder working group under new
section 89 for the purposes of the PC's five-yearly audits of Basin Plan
implementation and water resource plans.
23. There is also a consequential amendment to change the heading of subsection 87(3)
`Reports on inquiries' to add `etc.' to encompass the new provisions relating to the
stakeholder working group.
Amendment to clause of Bill - Triennial assessments
24. These amendments will amend Item 6 of the Bill so that new subsection 88(3A)
requires the Productivity Minister to establish a stakeholder working group under new
section 89 for the purposes of the PC's three-yearly assessments of progress toward
NWI objectives and outcomes.
25. These amendments will also provide that the PC must, in conducting inquiries under
new section 88, consider the objectives provided for in clause 23 of the NWI.
26. There is also a consequential amendment to change the heading of subsection 88(3)
`Reports on inquiries' to add `etc.' to encompass the new provisions relating to the
stakeholder working group.
Insertion of new section 89 - Stakeholder working group
27. This amendment will amend Item 6 of the Bill to insert new section 89 into Part 3 of
the Water Act. New subsection 89(1) will require a stakeholder working group to be
established for each referred matter (that is, for each matter referred to the PC for
inquiry under new sections 87 and 88).
28. New subsection 89(2) provides that a stakeholder working group for a referred matter:
(a) is to exchange information and views on the referred matter or any issues
relevant to it; and
(b) may provide advice to the PC on the referred matter or any issues relevant to it.
29. New subsection 89(3) provides that a stakeholder working group for a referred matter
is to consist of such persons appointed by the Chair of the PC who are representative
of any:
(a) agricultural, environmental, industry, Indigenous or urban water body. An
agricultural body encompasses a reference to both agricultural and irrigated
agricultural bodies; or
(b) other body with an interest in an interest in the referred matter.
30. New paragraph 89(4)(a) provides that the Chair of the PC may determine any
allowances that are payable to a member of a stakeholder working group in relation to
his or her contribution as a member of the stakeholder working group, subject to new
subsection 89(5). It is anticipated that allowances would only be paid to members of
the stakeholder working group in exceptional circumstances.
31. New paragraph 89(4)(b) provides that the Chair of the PC will also be able to
determine any other matter relating to the functioning of a stakeholder working group
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on a case by case basis for each inquiry, for instance, the terms of reference of the
group and the duration of its operation, subject to new subsection 89(6).
32. New subsections 89(5) and 89(7) provide that a member of a stakeholder working
group is not to be paid any remuneration in relation to his or her contribution as a
member of the stakeholder working group despite the provisions of the
Remuneration Tribunal Act 1973, and that membership of a stakeholder working
group is not a public office within the meaning of the
Remuneration Tribunal Act 1973.
33. New subsection 89(6) provides that the stakeholder working group must meet at least
twice prior to the report being submitted to the Productivity Minister in respect of an
inquiry referred to the PC.
Amendments to clause of Bill
34. This amendment updates Item 7 of the Bill to provide that the final reporting period
for the NWC's annual report ends at the end of the day occurring before the transition
time. The transition time is defined in the Bill as the date of the commencement of
Part 3 of the Bill (that is, the end of the day before the Bill receives the Royal Assent).
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