Details of the Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulations 2017

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Infrastructure and Regional Development Measures No. 1) Regulations 2017.

 

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 3 of Schedule 1AB (table)

 

This item adds a new table item to Part 3 of Schedule 1AB to establish legislative authority for government spending on an initiative that will be administered by the Department of Infrastructure and Regional Development (the Department).

 

New table item 23 establishes legislative authority for the Government to provide a concessional loan to the University of the Sunshine Coast (USC) to finance the construction of the foundation facilities for a new Moreton Bay university campus in Queensland.  The foundation facilities may consist of buildings providing teaching and office spaces, a USC - Moreton Bay Regional Council shared library, student support areas, and an innovation hub.

 

The concessional loan will be in addition to the $35 million grant provided through the Community Development Grants program to the Moreton Bay Regional Council for infrastructure at the Moreton Bay university precinct as part of the 2016-17 Mid-Year Economic and Fiscal Outlook measure 'Community Infrastructure Projects - new announcements'.

 

The concessional loan was included in the 2017-18 Budget under the measure 'University of the Sunshine Coast, Moreton Bay Campus -- concessional loan'.  Details are set out in Budget 2017-18, Budget Measures, Budget Paper No. 2 2017-18 at page 20.  The financial implications are noted as 'not for publication pending negotiation on the final terms of the loan with the USC'. 

 

The loan terms, including the loan drawdown schedule, will be determined through negotiations between the Department and the USC.  The specific terms of the loan will be set out in a loan agreement to be signed on behalf of the Commonwealth by a delegate of the Minister for Urban Infrastructure.  While the detailed agreement will not be publicly available, high-level information on the agreement may be available through the USC website (www.usc.edu.au). 

 

Funding for the loan will come from Program 3.1: Regional Development, which is part of Outcome 3.  As the outcome of the negotiations will be commercial-in-confidence, the funding profile will not be suitable for publication in relevant portfolio budget statements and, if included in that documentation, would be listed as 'not for publication'.

 

The decision to provide a concessional loan to USC to facilitate the construction of building infrastructure is unsuitable for independent review.  The decision does not impact on rights and liberties, but applies broadly to the community rather than being directed towards the circumstances of particular persons.  In other words, the loan will be used to fund infrastructure that will be available to the community generally and not an individual class/es of person(s).

 

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

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

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

*         the student benefits power (section 51(xxiiiA)).

 

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 treaties to which Australia is a party.

 

Australia has obligations regarding the right to education under Article 13 of the International Covenant on Economic, Social and Cultural Rights [1976] ATS 5.  In particular, Articles 13(2)(b) and (c) are concerned with the full realisation of the right of everyone to education, including by making higher education equally accessible to all.

 

The loan will be made to the USC for the construction of infrastructure for higher education, which will advance access to and availability of higher education.

 

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.

 

The infrastructure built using the loan will cater to interstate and international students, and is proposed to include an innovation hub that may attract international firms.

 

 

Student benefits power

 

Section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of benefits to students.

 

The loan will be used to create and develop infrastructure at the University of the Sunshine Coast that will enable additional opportunities for teaching and research, and additional services and facilities to be provided to the students at the University.

 

 

 

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 (Infrastructure and Regional Development Measures No. 1) Regulations 2017

 

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 the Government to provide a concessional loan to the University of the Sunshine Coast to finance the construction of the foundation facilities for a new Moreton Bay university campus in Queensland.  The concessional loan, which was announced in the 2017-18 Budget, will be administered by the Department of Infrastructure and Regional Development.

 

The Minister for Urban Infrastructure 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