Northern Territory Second Reading Speeches

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OCCUPATIONAL LICENSING (NATIONAL UNIFORM LEGISLATION) BILL 2010

Ms LAWRIE (Treasurer): Madam Speaker, I move that the bill be now read a second time.

This bill seeks to implement the Occupational Licensing National Law (or the National Law), as set out in the schedule to the
Occupational Licensing Law Act 2010 of Victoria as a law of the Northern Territory. The National Law sets out the regulatory framework for the National Occupational Licensing System (or the National Licensing System). This is one of the key reforms under the National Partnership Agreement to Deliver a Seamless National Economy signed by the Council of Australian Governments (COAG) in December 2008.

The proposed reform aims to replace the current multiple licensing regimes across jurisdictions with a single national system, thereby reducing red tape for businesses and individuals, and potentially improving labour mobility and productivity.


The Ministerial Council for Federal Financial Relations has primary responsibility for implementing the National Licensing System. It is intended then an appropriate ministerial council would in the future be charged with the responsibility of administering the system.


The National Law establishes the National Occupational Licensing Authority (or the Licensing Authority) o administer the National Licensing System and make policy recommendations to the ministerial council. The Licensing Authority will be governed by the National Occupational Licensing Board, and be supported in its policy role by Occupational Licensing Advisory Committees.


The National Licensing System will operate on a ‘national delegated agency model’ whereby the ministerial council and the Licensing Authority determines the development, maintenance and performance of licensing policy, while state and territory regulators continue to provide administrative functions relating to licensing and enforcement.


Policy functions that may remain with jurisdictions cover: conduct requirements concerning how work in regulated occupations is to be performed; consumer protection and public safety laws; consumer complaints and remedies; and appeals mechanisms.


The national licensing system will initially cover seven economically important occupational areas. These are: air-conditioning and refrigeration; building and building-related occupations; electrical; land transport, passenger vehicle drivers and dangerous goods only; maritime; property-related occupations; and plumbing and gas fitting. All these categories, with the exception of air-conditioning and refrigeration, are currently licensed in the Territory and will be part of the national approach. A future policy decision is to be taken on whether or not air-conditioning and refrigeration licences should be part of the national scheme.


There are currently 800 licence types, including endorsements, in these seven initial occupational areas across the eight states and Territories. This COAG reform will make it easier for occupational licensees to operate across state and Territory borders without the burden of applying for additional licences. This will benefit the Territory in attracting skilled labour in the future.


Implementation for the seven initial occupational areas will occur in two phases, with the first tranche of occupations commencing in July 2012 and the second tranche joining the scheme from 1 July 2013. This staggered introduction is necessary to provide adequate time for the development of appropriate licensing policies for each occupational area. Provision is also made for further occupational areas to be included in the national scheme over time where jurisdictions agree to do so. The national law provides for national consistency in licensing policy and the approach to disciplinary arrangements for licensees whilst still providing a sufficient degree of flexibility to deal with issue specific to particular jurisdictions or occupations.


The model bill provides the high-level framework for the national licensing system. Operational aspects, industry, and occupation-specific issues will be covered in national regulations that will be made by the responsible minister or council. However, there is a small risk the unique circumstances that can exist in jurisdictions such as the Territory may not always be fully appreciated, and which may require a level of flexibility or for regard to be had to distributional impacts of national proposals that might be otherwise assumed in the national interests.


Although the risk is small, the Occupational Licensing (National Uniform Legislation) Bill 2010 will preserve the ability of the Territory’s Legislative Assembly to effectively disallow future regulations made pursuant to the national law that are deemed inappropriate to the Territory’s circumstances. In addition, the model adoption bill that was drafted for those non-host jurisdictions choosing to apply the national law by reference in the schedule to the Victorian enactment as host jurisdiction, provides for amendments to the national law passed by the Victorian parliament to apply automatically in each jurisdiction. However, in some cases agreement to amend the national law may only require the agreement of a bare majority of the ministerial council.


This is not the Territory’s preferred legislative arrangement. Accordingly, the Territory bill re-enacts the model national law as an appendix to the Territory act so nationally-agreed amendments to the act will not automatically apply in the Northern Territory, as they will in those jurisdictions which have referenced the Victorian act ‘as in force from time to time’. Instead, the Territory bill provides for the Administrator to make regulations to amend the appendix to the Territory act to apply nationally-agreed amendments. This ensures amendments are able to be applied easily and in a timely fashion but, nevertheless, subject to appropriate parliamentary scrutiny and disallowance powers. The Northern Territory approach to apply the national law as an appendix to the Territory act also has the advantage of ensuring the Northern Territory legislation database reflects the current state of the law as it applies in the Northern Territory at any future point of time. It provides for transparency, efficiency and convenience for Territorians, while retaining our commitment to the implementation and operation of the national law and the proposed national licensing scheme in the Territory.


Madam Speaker, I commend the bill to honourable members, and I table a copy of the explanatory statement to accompany the bill.


Debate adjourned.


 


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