FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 2) REGULATIONS 2018 (F2018L01541) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 2) REGULATIONS 2018 (F2018L01541)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance and the Public Service

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Agriculture and Water Resources Measures No. 2) Regulations 2018

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies.  The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations).  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

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations.  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

The Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 2) Regulations 2018 (the Regulations) amends Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on the Communities Combating Pests and Weed Impacts During Drought Program (the Program).

 

Under the Program, which is part of the Government's 2018 drought assistance package, funding of $15 million will be available in 2018-19 to fund local initiatives targeted at enhancing wild dog and other pest management and weed control in drought-affected areas.  Under the eligibility criteria, 50 of the most severely drought-affected local councils across Australia that rely on agriculture as a primary driver of the local economy will be able to apply to receive up to $1 million from the Program.

 

The Program will be administered by the Department of Agriculture and Water Resources.

 

Details of the Regulations are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003.  The Regulations commence on the day after the instrument is registered on the Federal Register of Legislation. 

 


 

Consultation

 

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources.

 

A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.

 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 2) Regulations 2018

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 2) 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 a new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity administered by the Department of Agriculture and Water Resources.

 

New table item 310 establishes legislative authority for government spending on the Communities Combating Pests and Weed Impacts During Drought Program (the Program).

 

As part of the 2018 drought assistance package, the Program will provide $15 million in 2018-19 to fund local initiatives targeted at enhancing wild dog and other pest management and weed control in drought-affected areas.  Under the eligibility criteria, 50 of the most severely drought-affected local councils across Australia that rely on agriculture as a primary driver of the local economy will be able to apply to receive up to $1 million from the $15 million Program.

 

Pest animals and weeds require ongoing management by farmers, but farmers' capacity to do this during drought is often reduced at the very time when pests and weeds can cause problems for already stressed pasture and livestock.  The impact can undermine drought management and recovery efforts.

 


 

The Program will operate in 2018-19 only, and will be available to a subset of Local Government Areas most negatively impacted by drought, based on Bureau of Meteorology data, and that have a high reliance on agriculture as determined by the Australian Bureau of Agricultural and Resource Economics and Sciences.

 

The Program will contribute to stimulating economic activity and increased employment under the range of Australian Government drought assistance initiatives by providing grants to local councils to carry out pest management and weed control activities in eligible drought-affected areas.  The activities will provide improved natural resource management outcomes and complement other Australian Government natural resource management programs and pest animal and weed management measures.

 

The Program is expected to have positive economic and social impacts on the most drought-affected regions across Australia.  Participation in the Program will allow regional communities to achieve measurable benefits (in terms of economic stimulus and pest and weed control) at a time when farm productivity is particularly low.

 

Pest management activities could include shooting, trapping, baiting and fencing depending on the vertebrate pest species being targeted.  Weed management activities would be directed at reducing competition of weeds with fodder and native plants and mitigating the build-up of weed seedbanks.

 

These activities will provide economic benefits to the delivery agents/contractors and agricultural suppliers in the regional areas who may be sub-contracted by the local councils to undertake the pest management and weed control activities.  There will also be improved employment in regional areas.

 

The Program will be delivered through the Department of Social Services' Community Grants Hub.  Grants will be available to local councils in eligible drought-affected areas.  Local councils will be able to frame activities based on a large scale, specific to the ecosystem, land usage and priorities in their regions.  Councils will work with local Landcare, farming sectors and other groups to deliver local employment opportunities, with coordinated management where appropriate.

 

Funding will be published in the 2018-19 Mid-Year Economic and Fiscal Outlook.  Funding for this item will be reported against Program 1.11: Drought Program, which is part of Outcome 1.  Details will be set out in the Portfolio Additional Estimates Statements 2018-19, Agriculture and Water Resources Portfolio.

 

On 11 July 2018, the Minister for Agriculture and Water Resources announced that $9 million would be made available to local councils across eligible drought-affected areas of Queensland to help manage pest animals and weeds as part of the Government's response to the ongoing drought.  The Minister made a further announcement on 7 August 2018 that $1.5 million would be made available to eligible drought-affected local councils in Western Australia for pest and weed management.

 

The Program will be delivered through a competitive, targeted grant process and will be managed in accordance with the program guidelines and the Commonwealth Grants Rules and Guidelines 2017.

 

The program guidelines will invite local councils in eligible drought-affected regions to apply for funding to deliver local initiatives targeted at pest and weed management activities.  The Department of Agriculture and Water Resources will be accountable for the Program, including monitoring and evaluation.

 

Information about the Program, including guidelines and eligibility, will be available on GrantConnect, the Community Grants Hub and the Department of Agriculture and Water Resources' websites at www.grants.gov.au, www.communitygrants.gov.au and www.agriculture.gov.au.

 

The Minister for Agriculture and Water Resources will make funding decisions for the Program based on recommendations provided by a panel convened by the Community Grants Hub.  The panel will make recommendations following a competitive assessment of the grant applications received.  The assessment will be undertaken in accordance with the selection criteria outlined in the program guidelines.  Information about the grants awarded will be published on GrantConnect.

 

The Program is not considered suitable for independent merits review as it involves the allocation of finite resources through a single funding round in accordance with the program guidelines and eligibility criteria.  As the Program is financially capped, only a proportion of local councils may receive funding.  The remaking of a decision under merits review would necessarily affect funding available to other parties and would delay the implementation of pest and weed management activities.

 

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

 

Quarantine power

 

Section 51(ix) of the Constitution empowers the Parliament to make laws with respect to quarantine.

 

The Program will involve measures which promote the management of pest animals and weeds that cause infestation or disease affecting animals and plants.

 

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 international obligations under treaties to which it is a party.

 


 

Australia is a party to the Convention on Biological Diversity [1993] ATS 32.  Article 8(h) provides that 'Each Contracting party shall, as far as possible and as appropriate ... Prevent the introduction of, control or eradicate those alien species which threaten ecosystems, habitats or species'.

 

Measures enabled by the Program will include the development and implementation of management plans to address invasive pests and weeds that threaten native ecosystems, habitats and species.

 

Australia is also a party to the United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, particularly in Africa [2000] ATS 18.  Article 5 relevantly provides that affected country Parties undertake to:

 

Measures enabled by the Program will include activities aimed at the prevention and/or reduction of land degradation to combat desertification.

 

Commonwealth executive power and express incidental power, including the nationhood aspect

 

The express incidental power in section 51(xxxix) of the Constitution relevantly empowers the Parliament to make laws with respect to matters incidental to the execution of any power vested in the Commonwealth government by the Constitution.  Together with the executive power in section 61 of the Constitution, the express incidental power extends to a range of matters, including activities that are peculiarly adapted to the government of the nation and cannot otherwise be carried on for the benefit of the nation.

 

Measures enabled by the Program will, for the benefit of the nation, take a national approach to natural resource management by addressing the effect that invasive pests and weeds have on drought-affected areas.

 

Financial assistance to States

 

Section 96 of the Constitution empowers the Parliament to 'grant financial assistance to any State on such terms and conditions as the Parliament thinks fit'.  Measures enabled by the Program may involve the Commonwealth providing grants of financial assistance to states for the purposes of the states undertaking pest and weed management activities.

 

Territories power

 

Section 122 of the Constitution empowers the Parliament to 'make laws for the government of any territory'.  Measures enabled by the Program will involve the Commonwealth undertaking pest and weed management activities in the territories and making grants to territories.

 

 


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 (Agriculture and Water Resources 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 Communities Combating Pests and Weed Impacts During Drought Program (the Program).

 

Under the Program, which is part of the Government's 2018 drought assistance package, funding of $15 million will be available in 2018-19 to fund local initiatives targeted at enhancing wild dog and other pest management and weed control in drought-affected areas.  Under the eligibility criteria, 50 of the most severely drought-affected local councils across Australia that rely on agriculture as a primary driver of the local economy will be able to apply to receive up to $1 million from the Program.

 

The Minister for Agriculture and Water Resources has portfolio responsibility for these matters.  The Program will be administered by the Department of Agriculture and Water Resources.

 

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 and the Public Service


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