Details of the Financial Framework (Supplementary Powers) Amendment (Home Affairs Measures No. 2) Regulations 2018

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Home Affairs Measures No. 2) Regulations 2018.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after they are registered on the Federal Register of Legislation.

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity that will be administered by the Department of Home Affairs (the department).

 

New table item 303 establishes legislative authority for government spending on the Regional Airport Security Screening Funding program.

 

Grant funding will be provided to support eligible regional airports to meet aviation security screening requirements and, for airports commencing security screening, associated infrastructure costs.

 

Funding of $50.1 million over four years commencing in 2018-19 was included as part of the 2018-19 Budget under the measure 'Aviation, Air Cargo and International Mail Security Package'.  Details are set out in Budget 2018-19, Budget Measures, Budget Paper No. 2 2018-19 at page 128. 

 

The Business Grants Hub managed by the Department of Industry, Innovation and Science will be responsible for administering the grant program on behalf of the department under a Memorandum of Understanding.  The grant process will be conducted in accordance with the Commonwealth Grants Rules and Guidelines 2017. 

 

 

Grant opportunity guidelines will set out the arrangements for the program, including eligibility and selection processes.  Information on the grant opportunity, including the grant guidelines, will be published on GrantConnect at www.grants.gov.au, on the Australian Government Business website at www.business.gov.au, and on the department's website at www.homeaffairs.gov.au. 

 

Funding will be provided through a restricted non-competitive grant process for regional airports pre-identified as requiring assistance to purchase new aviation security screening technology in order to comply with new requirements to be set out in the Aviation Transport Security Regulations 2005.

 

The department will consult with eligible airports prior to the program opening for applications to determine what security screening and associated equipment each eligible airport requires in order to comply with the new aviation security screening requirements. There will be a pre-determined list of eligible equipment from which airports can select.

 

Eligible regional airports will be invited to submit a grant application. An official of the Business Grants Hub will review grant applications for compliance with grant criteria as set out in the grant guidelines and make funding decisions as a delegate of the Secretary, Department of Home Affairs.

 

Information on decisions in relation to grants will be published on GrantConnect.

 

The grant decisions made in connection with this program are not considered appropriate for independent merits review.  There will be no merit assessment process as the eligible airports have already been identified as requiring funding to enable them to meet the new regulatory requirements for aviation security screening.  Additionally, the department will have pre-determined the list of eligible equipment from which airports can select.  Furthermore, as the eligible airports have been pre-determined, due diligence can be undertaken prior to entering into grant agreements.  The department will ensure that the Business Grants Hub operates within the funding available.

 

Funding for this item will come from Program 1.6: Transport Security, which is part of Outcome 1.  Details are set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.10, Home Affairs Portfolio at pages 19 and 29.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the trade and commerce power (section 51(i));

*         the defence power (section 51(vi)); and

*         the external affairs power (section 51(xxix)).

 

Trade and commerce power

 

Section 51(i) of the Constitution empowers the Parliament to make laws with respect to 'trade and commerce with other countries, and among the states'.

 

Regional airports are closely connected with interstate air navigation and interstate airports. The department will fund security screening capabilities and associated infrastructure which are centrally important to the integrity of the airport network as a whole.

 

Defence power

 

Section 51(vi) of the Constitution empowers the Parliament to make laws with respect to, among other things, the military defence of the Commonwealth and of the several States.  The defence power supports laws taking preventative measures in relation to terrorism, where those measures are reasonably appropriate and adapted to the prevention of a terrorist act.

 

Funding for screening technology and associated infrastructure costs at regional airports is a preventive measure in relation to terrorism.

 

External affairs power

 

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'.  The external affairs power supports legislation implementing Australia's obligations under international treaties to which it is a party.

 

Australia is a party to the Convention on International Civil Aviation (the Chicago Convention).  Annex 17 to that Convention deals with security and the safeguarding of international civil aviation against acts of unlawful interference.  Annex 17 has been adopted by the Council of the International Civil Aviation Organization acting pursuant to Articles 37 and 54(I) of the Chicago Convention.  Article 37 provides that each contracting State undertakes to collaborate in securing the highest practicable degree of uniformity in regulations, standards, procedures, and organisation in relation to aircraft, personnel, airways and auxiliary services in all matters in which such uniformity will facilitate and improve air navigation.  Annex 17 provides standards related to airport screening.

 

Funding to purchase screening technology and the associated infrastructure costs gives effect to Article 37 of the Chicago Convention, read with the standards set out in Annex 17 to that Convention.

 

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Home Affairs Measures No. 2) Regulations 2018

 

These Regulations 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.

 

Overview of the Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs.  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.

 

The Regulations amend Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the Regional Airport Security Screening Funding program, which will be administered by the Department of Home Affairs.

 

Grant funding of $50.1 million over four years from 2018-19 will be provided to support eligible regional airports to meet aviation security screening requirements and, for airports commencing security screening, associated infrastructure costs.

 

This initiative was announced in the 2018-19 Budget.

 

The Minister for Law Enforcement and Cyber Security has responsibility for this matter.

 

Human rights implications

 

The Regulations do not engage any of the applicable rights or freedoms.

 

Conclusion

 

These Regulations are compatible with human rights as they do not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance