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2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Infrastructure Australia Amendment (Social Sustainability) Bill 2017
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Cathy McGowan
Infrastructure Australia Amendment (Social Sustainability) Bill 2017
OUTLINE
The purpose of the Bill is to strengthen the social and community benefit considerations
that are assessed when Infrastructure Australia looks at the value of infrastructure
projects, auditing existing infrastructure, compiling lists of infrastructure priorities and
developing infrastructure plans. It also requires Infrastructure Australia to consult with the
community when developing corporate plans and consider the future needs of users when
providing advice to the Minister, Commonwealth, State, Territory and local governments,
investors in infrastructure and owners of infrastructure.
The role of role of Infrastructure Australia is to provide advice on nationally significant
infrastructure priorities by auditing, reviewing, evaluating, researching and promoting
infrastructure proposals. The current Act has a strong focus on the economic and
productivity considerations of infrastructure, with little attention paid to the social benefits
of infrastructure proposals.
The Bill amends the Infrastructure Australia Act 2008 to require Infrastructure Australia to
evaluate the social and community benefits of Infrastructure projects, giving equal
treatment to the economic and productivity gains.
The intent is that, by Infrastructure Australia assessing the social benefits of infrastructure
projects be benefits connectivity (including public transport) would be considered a priority
for rural and regional areas as well as for freight movement.
Under the current arrangements, Infrastructure Australia consideration is heavily weighted
towards the economic productivity gains of infrastructure and does not fully account for the
social and community needs.
The current infrastructure priorities list includes many rail project. Among those in rural and
regional Australia the focus is only on improving freight movement and not providing
passenger services.
The driver for infrastructure outside of capital cities is measured in economic terms and not
social good. This is unlike projects in the cities which largely focus on easing urban
congestion, a clear social benefit.
For example, The Inland Rail project currently on the priority list should deliver improved
passenger services, but as social benefit is not considered as part of the assessment
process this will not occur.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short title
Clause 1 is a formal provision specifying the short title of the Act.
Clause 2: Commencement
The Act commences on the day after the Act receives the Royal Assent.
Clause 3: Schedules
This clause gives effect to the provisions in Schedule 1 of the Bill.
Schedule 1 - Amendments
Item 1 inserts a new section after subparagraph 5(a)(i)
The section requires Infrastructure Australia to take into account the social, as well as
economic, needs of rural and regional Australian communities when undertaking audits,
developing lists, evaluating infrastructure proposals and developing infrastructure plans.
Item 2 inserts a new section after subparagraph 5A(3)
This section relates to the function of evaluating infrastructure proposals, the amendments
require Infrastructure Australia to consider whether the proposal meets the social, as well
as economic, needs of affected rural and regional communities when evaluating each
proposal.
Item 3 inserts a new section after subparagraph 5B(1)(b)(ii)
This section relates to the function of developing Infrastructure Plans, the amendments
require Infrastructure Australia to consider the social benefits that may be anticipated from
each proposal and any complementary infrastructure required to maximise the social
benefits from the proposals.
Item 4 inserts a new section after subparagraph 5C(1)(d)
This section relates to the function of providing advice on infrastructure matters, the
amendments require Infrastructure Australia to consider the social issues relating to
infrastructure.
Item 5 inserts a new section after subparagraph 5C(1)(e)
This section relates to providing advice on infrastructure matters, the amendments require
Infrastructure Australia to consider the current and future needs of the users of
infrastructure when providing advice to the Minister, Commonwealth, State, Territory and
local governments, investors in infrastructure and owners of infrastructure on matters
relating to infrastructure.
Item 6 inserts a new section after subparagraph 6B(a)
This section relates to the consultation Infrastructure Australia must undertake in
performing its functions and exercising its powers, the amendments add consultation with
impacted communities.
Item 7 inserts a new section after subparagraph 39B(b)(i)
This section relates to the preparing of or varying a corporate plan, the amendments
require Infrastructure Australia to consult with the community when preparing or varying a
corporate plan.
Item 8 provides timing for commencement of the amendments.
This section specifies the amendments made in this schedule will apply in relation to
activities begun on or after the commencement of the Schedules. Activities underway or
nearing completion will not be required to apply the amendments in the schedule.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act
2011
Infrastructure Australia Amendment (Social Sustainability) Act 2017
This bill is 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 bill
The purpose of the Bill is to strengthen the social and community benefit considerations
that are assessed when Infrastructure Australia looks at the value of infrastructure
projects, auditing existing infrastructure, compiling lists of infrastructure priorities and
developing infrastructure plans.
Human rights implications
This bill does not engage any of the applicable rights or freedoms.
Conclusion
This bill is compatible with human rights because it does not raise any human rights
issues.
Cathy McGowan