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2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
National Land Transport Amendment (Best Practice Rail Investment) Bill 2017
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Cathy McGowan
National Land Transport Amendment (Best Practice Rail Investment) Bill 2017
OUTLINE
The purpose of the Bill is to strengthen the social and community benefit considerations
that are assessed when the Minister approves an Investment Project under the National
Land Transport Act 2014.
The Bill adds matters which the Minister must consider when approving a project as an
Investment Project and mandates that the Minister address each matter listed in the Bill.
The Bill also requires a summary of the evidence supporting the approval of an Investment
Project to be published on the department website and tabled in Parliament.
Under the amendments, when the project involves the construction of a new railway, or the
upgrade of an existing railway, the amendments require the Minister to consider:
the extent to which the project prioritises passenger rail services, demonstrates best
practice in rail infrastructure investment and maximises the community benefits
from Commonwealth investment; and
the extent to which the project can lift the level of service and standard of existing
rail infrastructure to maximise the benefit to communities along the railway (for
example by facilitating better passenger services);
The Minister would also be required to consider the extent to which the project maximises
rural and regional economic and social development benefits and the extent to which the
project meets, or will meet, the current and future needs of the users of the infrastructure.
Outside of capital cities infrastructure investment is traditionally measured in economic
terms and not social good. Projects in the cities largely focus on easing urban congestion,
a clear social benefit. The Bill addresses this gap. In metropolitan Australia rail
infrastructure supports dedicated networks for freight and passenger movement. In rural
and regional Australia this infrastructure is a shared resource and decisions regarding
Commonwealth investment must consider it as such. In considering infrastructure
investment in rural and regional Australia consideration must be given to both the
economic and social value. The most direct way to maximise the social benefit of rail
investment is to prioritise passenger rail.
An example of the gap in policy is the Inland Rail project. It proposes a freight rail line from
Melbourne to Brisbane, through hundreds of rural communities. There is no mention of
rural or regional passenger services being upgraded in any of the project material. The
only consideration of passengers is for the positive benefit gained by removing freight from
Sydney and reducing congestion for Sydney passenger trains.
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 omits the current wording of Section 11 and substitutes new words.
This section relates to the matters which the Minister may have regard in deciding whether
it is appropriate to approve a project as an Investment Project.
The amendment will omit: "The matters to which the Minister may have regard in deciding
whether it is appropriate to approve a project as an Investment Project include, but are not
limited to, the following matters:", and substitute "The Minister must have regard to the
following matters in deciding whether it is appropriate to approve a project as an
Investment Project:".
The intent of this amendment is to remove ambiguity about the items the Minister will
consider when deciding if it is appropriate to approve an investment project.
When taken with the later amendments at Item 2, the amendment does not limit the
Minister to only considering these matters, but would be the minimum requirements the
Minister must consider before approving a project as an Investment Project.
Item 2 inserts a new section at the end of Section 11.
This section relates to the matters which Minister may have regard in deciding whether it is
appropriate to approve a project as an Investment Project.
If the project involves the construction of a new railway, or the upgrade of an existing
railway the amendments would require the Minister to consider:
the extent to which the project prioritises passenger rail services, demonstrates best
practice in rail infrastructure investment and maximises the community benefits
from Commonwealth investment; and
the extent to which the project can lift the level of service and standard of existing
rail infrastructure to maximise the benefit to communities along the railway (for
example by facilitating better passenger services);
The Minister would also be required to consider the extent to which the project maximises
rural and regional economic and social development benefits and the extent to which the
project meets, or will meet, the current and future needs of the users of infrastructure.
A subparagraph has been added to ensure the Minister is not limited to only considering
the matters listed under Section 11, this would allow the Minister to also consider any
other matter that is relevant to the decision.
Item 3 inserts a new section after paragraph 13(1)(a).
This section relates to the matters specified in the project approval instrument. The
amendment adds an additional requirement the Minister also sets out the reasons why the
Minister has decided that it is appropriate to approve the project in the project approval
instrument.
Item 4 inserts a new section at the end of section 13
This section relates to the matters specified in the project approval instrument. The
amendments will require the Secretary of the department to publish the project approval
instrument for each Investment Project and provide a summary of the evidence which the
Minister's considered in making the decision that it was appropriate to approve this
Investment Project. This summary would include the matters considered under Section 11
of the Act.
The Secretary would publish these documents on the website as soon as practicable after
the instrument is made.
This section would also require the Minister to table the published documents on the next
sitting day of the House after the documents are published.
Item 5 relates to the application of the amendments outline in the schedule
This section relates to the applications of the Amendments, the amendments will apply to
the approval of projects as Investment Projects on or after the commencement of the
Schedule, which will occur on the day after the Act receives Royal Assent.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act
2011
National Land Transport Amendment (Best Practice Rail Investment) Bill 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 the Minister approves an Investment Project under the National
Land Transport Act 2014.
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