Details of the Financial Framework (Supplementary Powers) Amendment (Communications and the Arts Measures No. 1) Regulations 2018

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Communications and the Arts Measures No. 1) Regulations 2018.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after the instrument is 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 two new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending on certain activities administered by the Department of Communications and the Arts (the department).

 

New table item 261 establishes legislative authority for government spending on the Regional Journalism Scholarships Program (the Scholarships Program).

 

The Scholarships Program forms part of the Government's Regional and Small Publishers Jobs and Innovation Package announced in a joint media release on 14 September 2017 by the Prime Minister, the Hon Malcolm Turnbull MP, and the Minister for Communications and Minister for the Arts, Senator the Hon Mitch Fifield.

 

The Scholarships Program aims to support students in regional and remote areas of Australia take up opportunities to study journalism.  It will assist students to develop the skills necessary for the journalism profession and equip them for employment opportunities in the news media industry after the completion of their studies.  The Scholarships Program will ensure that suitably trained journalists have the necessary skills to enter the workforce, and enhance the likelihood that communities in regional and remote areas of Australia have access to media services that provide locally relevant news and information.

 

Funding of $2.4 million for 60 regional journalism scholarships was included in the 2017-18 Mid-Year Economic and Fiscal Outlook under the measure 'Broadcasting and Content Reform Package - additional funding' for a period of two years commencing in 2018-19.  Details are set out in the Mid-Year Economic and Fiscal Outlook 2017-18, Appendix A: Policy decisions taken since the 2017-18 Budget at page 139.

 

The department will provide grant funding to selected higher education providers who, in turn, will be responsible for the selection of scholarship recipients, the administration of the scholarships and the acquittal of Commonwealth funding.  The scholarship recipients will be able to use the funds to pay for course related expenses, including tuition fees, accommodation and other living costs.    

 

Grant recipients will be selected using a competitive, merit-based process conducted in accordance with the Commonwealth Grants Rules and Guidelines 2017.  There will be two annual rounds of grant funding for 2018-19 and 2019-20.  Higher education providers will need to submit a complete application, including any supporting documentation, by the nominated closing date for each funding round.  The applicants will need to specify details of the grants they are seeking, including grant value (up to a maximum of $40,000 per scholarship) and eligible courses of study for which students may apply for scholarships.  

 

To be eligible for grant funding, higher education providers will need to meet eligibility criteria set out in the grant guidelines, which will be published on the GrantConnect website at www.grants.gov.au and the departmental website at www.communications.gov.au.  Higher education providers will also need to demonstrate their strengths and claims against specific merit criteria which will also be set out in the grant guidelines.        

 

Grant funding will be administered through the Community Grants Hub.  The Minister for Communications or a delegate will be the decision-maker for grant expenditure, with relevant approvals subject to the Public Governance, Performance and Accountability Act 2013.  The department will enter into a funding agreement with each selected higher education provider to ensure compliance and reporting on government objectives.  Information on the funding decisions will be published at www.communications.gov.au/who-we-are/department/funding-reporting.

 

The successful grant recipients from the first round are expected to be announced in June 2018, with the first grant payments to be made from 1 July 2018.  As the grant funding may not align with the commencement dates for academic study, some flexibility will be provided in terms of when students must begin their selected courses.  However, there will be sunset dates by which students must begin their study supported by scholarships awarded as part of each funding round.

 

Funding decisions under the Scholarships Program will be made objectively, and in accordance with the assessment process set out in the grant guidelines and applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013.  

 

Decisions made in connection with grant funding to higher education providers (grant funding decisions) will not be subject to independent review.  The Scholarships Program involves the allocation of finite resources (individual grants of up to $40,000 per scholarship).  If a decision to decline a grant funding application were reversed on review of its merits, this would affect funding to other successful grant recipients (and potentially prospective student applicants).  In addition, the provision of independent review for grant funding decisions under the Scholarships Program would impede the timely provision of support for eligible students and graduates in regional and remote areas of Australia to take up opportunities to study journalism.

 

A higher education provider who is dissatisfied about the handling of their grant funding application by the department will be able to lodge a complaint to the program manager for consideration.  Persons who are otherwise affected by decisions or who have complaints about the Scholarships Program also have recourse to the department in accordance with its Client Service Charter.  Such complaints would be investigated under the department's complaints policy and procedures which are available at www.communications.gov.au/who-we-are/department/client-service-charter.  If the person is not satisfied with the outcome of the department's assessment or investigation of their complaint, they would be able to contact the Commonwealth Ombudsman as a final recourse.

 

Higher education providers will be responsible for the selection of students receiving scholarships and the acquittal of Commonwealth funding.  The grant guidelines will stipulate some basic requirements for the selection of scholarship recipients, including that scholarships be awarded using a transparent, merit-based selection method, and that scholarship recipients permanently reside in a regional or remote area, or have a sufficient connection with a regional or remote area.  Each higher education provider will make information on the scholarships, including eligibility criteria, available on their website.  These requirements will also be included in funding agreements with the successful grant recipients.   

 

Decisions made by higher education providers to approve or not approve a scholarship application under the Scholarships Program will not be subject to independent review.  Disputes in relation to decisions of higher education providers will be dealt with in accordance with the grant guidelines and the terms of the funding agreements between the Commonwealth and higher education providers.

 

Funding for this item will come from the 'Cadetship Program and Scholarship Program', which is part of Program 1.1: Digital Technologies and Communications under Outcome 1.  Details are set out in the Portfolio Additional Estimates Statements 2017-18, Communications and the Arts Portfolio at page 22.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the student benefits aspect of the social welfare power (section 51(xxiiiA)) of the Constitution.

 

Section 51(xxiiiA) of the Constitution empowers the Parliament to make laws with respect to the provision of various social welfare benefits and services, including benefits to students.

 

The Scholarships Program will provide funding for scholarships to selected students in, or who have a sufficient connection with, regional areas.  Individual scholarships will provide financial assistance with the costs associated with undertaking relevant study including tuition fees and living expenses.

 

New table item 262 establishes legislative authority for government spending on the Regional and Small Publishers Cadetship Program (the Cadetship Program).

 

The Cadetship Program, which forms part of the Government's Regional and Small Publishers Jobs and Innovation Package, will support the creation of journalism employment opportunities in news media organisations, with a focus on regional and remote areas of Australia.  

 

The Cadetship Program will provide the opportunity for cadets to undertake a comprehensive training program in multi-platform reporting, as well as workplace-based learning from experienced, practising journalists.  The Cadetship Program will be flexible to accommodate different structures that may be used to support cadet placements that respond to the specific demands of each media format.  Grants will not be provided without matched funding from the grant recipients (i.e. the selected media organisations).  The maximum duration of a cadetship will be 12 months.

 

Funding of $8 million for 200 cadetships was included in the 2017-18 Mid-Year Economic and Fiscal Outlook under the measure 'Broadcasting and Content Reform Package - additional funding' for a period of two years commencing in 2018-19.  Details are set out in the Mid-Year Economic and Fiscal Outlook 2017-18, Appendix A: Policy decisions taken since the 2017-18 Budget at page 139.

 

The department will provide grant funding to selected media organisations who, in turn, will be responsible for the selection of cadetship recipients, the administration of the cadetships and the acquittal of Commonwealth funding.  Grant funding of up to $40,000 per cadet may be used for direct remuneration, superannuation, leave entitlements and training for journalism cadets employed under the Cadetship Program.  Cadetships will not be available for existing employees or existing cadets.

 

Grant recipients will be selected using a competitive, merit-based process conducted in accordance with the Commonwealth Grants Rules and Guidelines 2017.  There will be two annual rounds of grant funding for 2018-19 and 2019-20.  An eligible media organisation will need to submit a complete application, including any supporting documentation, by the nominated closing date for each funding round.  Eligible media organisations may include publishers of newspapers, periodicals and online news, and broadcasters whose primary focus is the provision of public interest journalism.  Eligibility and merit criteria for media organisations will be set out in the grant guidelines, which will be published on the GrantConnect website at www.grants.gov.au and the departmental website at www.communications.gov.au.    

 

Grant funding will be administered through the Community Grants Hub.  The Minister for Communications or a delegate will be the decision-maker for grant expenditure, with relevant approvals subject to the Public Governance, Performance and Accountability Act 2013.  The department will enter into a funding agreement with each selected media organisation to ensure compliance and reporting on government objectives.  Information on the funding decisions will be published at www.communications.gov.au/who-we-are/department/funding-reporting.  The successful grant recipients from the first round are expected to be announced in June 2018, with the first grant payments to be made from 1 July 2018.  

 

Funding decisions under the Cadetship Program will be made objectively, and in accordance with the assessment process set out in the grant guidelines and applicable legislative requirements under the Public Governance, Performance and Accountability Act 2013.

 

Decisions made in connection with grant funding to media organisations (grant funding decisions) will not be subject to independent review.  The Cadetship Program involves the allocation of finite resources (individual cadetships of up to $40,000).  If a decision to decline a grant funding application were reversed on review of its merits, this would affect funding to other successful grant recipients (and potentially prospective cadet applicants).  In addition, the provision of independent review for grant funding decisions under the Cadetship Program would impede the timely provision of support for cadets to take up employment opportunities in regional and remote areas of Australia.   

 

A media organisation who is dissatisfied about the handling of their grant funding application by the department will be able to lodge a complaint to the program manager for consideration.  Persons who are otherwise affected by decisions or who have complaints about the Cadetship Program also have recourse to the department in accordance with its Client Service Charter.  Such complaints would be investigated under the department's complaints policy and procedures which are available at www.communications.gov.au/who-we-are/department/client-service-charter.  If the person is not satisfied with the outcome of the department's assessment or investigation of their complaint, they would be able to contact the Commonwealth Ombudsman as a final recourse.

 

Media organisations will be responsible for the selection of cadets, the administration of the cadetships and the acquittal of Commonwealth funding.  The grant guidelines will stipulate some basic requirements for the selection of cadets, including the process for recruiting cadets and ensuring that cadets are employed in accordance with the conditions specified in the relevant modern awards or enterprise agreements.  These requirements will also be included in funding agreements with the successful grant recipients.

 

Decisions made by media organisations to approve or not approve a cadetship application under the Cadetship Program will not be subject to independent review.  Disputes in relation to decisions of media organisations will be dealt with in accordance with the terms of the grant guidelines and the terms of the funding agreements between the Commonwealth and media organisations.

 

Funding for this item will come from the 'Cadetship Program and Scholarship Program', which is part of Program 1.1: Digital Technologies and Communications under Outcome 1.  Details are set out in the Portfolio Additional Estimates Statements 2017-18, Communications and the Arts Portfolio at page 22.

  

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

*         the communications power (section 51(v)); and

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

 

Communications power

 

Section 51(v) of the Constitution empowers the Parliament to make laws with respect to 'postal, telegraphic, telephonic and other like services'.

 

The Cadetship Program will fund cadetships with commercial television and radio broadcasters, and online news media outlets.  The cadetships will facilitate the development of journalistic content for broadcast by regional and small metropolitan publishers.

 

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 in relation to employment and vocational education.  Article 6 of the International Covenant on Economic, Social and Cultural Rights requires States Parties to take steps to realise the right to work, including 'technical and vocational guidance and training programmes, policies and techniques to achieve steady economic, social and cultural development and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual'.

 

Australia also has obligations under the International Labour Organization's Convention concerning Employment Policy (ILO Convention 122) and Convention concerning Vocational Guidance and Vocational Training in the Development of Human Resources (ILO Convention 142).  In particular, Articles 1 and 2 of the ILO Convention 122 require Members to pursue 'an active policy designed to promote full, productive and freely chosen employment'.  Further, Articles 1 to 4 of the ILO Convention 142 oblige Members to adopt policies and programs of vocational guidance and training, linked with employment.

 

The Cadetship Program will provide funding to increase the number of journalism employment opportunities available for people seeking cadetships.  Cadetships, in turn, provide opportunities for vocational training in journalism.

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (Communications and the Arts Measures No. 1) 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 two initiatives administered by the Department of Communications and the Arts.

 

Funding will be provided for:

*         grants to higher education providers to support students in regional and remote areas of Australia undertake studies in journalism through the provision of scholarships, with $2.4 million available for 60 scholarships over two years from 2018-19; and

*         grants to small metropolitan and regional media organisations to create journalism employment opportunities in news media organisations, with a focus on regional and remote areas of Australia, through the provision of cadetships, with $8 million available for 200 cadetships over two years from 2018-19.

 

These initiatives are part of the Government's Regional and Small Publishers Jobs and Innovation Package announced in the 2017-18 Mid-Year Economic and Fiscal Outlook.

 

The Minister for Communications has portfolio responsibility for these matters. 

 

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