Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
NATIONAL WATER COMMISSION (ABOLITION) BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Parliamentary Secretary to the Minister for the
Environment, Senator the Hon Simon Birmingham)
NATIONAL WATER COMMISSION (ABOLITION) BILL 2014
GENERAL OUTLINE
1. The National Water Commission (Abolition) Bill 2014 (the Bill) will abolish the
National Water Commission (NWC) with effect from 1 January 2015.
2. The Bill delivers on the Government's commitment announced in the 2014-15 Budget
to cease the operations of the NWC by the end of 2014, while transferring key NWC
functions to existing Commonwealth agencies.
The NWC
3. The NWC is an independent statutory body established by the National Water
Commission Act 2004 (NWC Act).
4. Under the NWC Act, the NWC is responsible for assisting in the implementation of
the Intergovernmental Agreement on a National Water Initiative (NWI) and providing
advice to the Commonwealth and the Council of Australian Governments (COAG) on
national water reform. The principal role of the NWC is to provide oversight and
assessment of national water reforms.
5. Since the Australian Government and all State and Territory Governments agreed to
the NWI in 2004, there has been considerable progress in enhancing the security of
irrigation water entitlements, enabling water markets and trade, strengthening
Australia's water resource information base and improving urban water security.
6. Although it is no longer necessary to retain a separate body to undertake the functions
of the NWC, the Government remains committed to progress in national water reform
and to supporting and promoting implementation of the NWI. For this reason, key
NWC functions will be retained and transferred to existing agencies.
Continuing functions
7. The Bill retains two key statutory functions of the NWC; triennial assessments of
progress on implementation of the NWI and audits of the implementation of the
Murray-Darling Basin Plan and associated Basin State water resource.
8. Under the NWC Act, the NWC is responsible for triennial assessments of progress of
the NWI parties toward achieving the outcomes and objectives of the NWI, and
making recommendations on actions that NWI parties might take to better implement
the NWI within specified timeframes.
9. This triennial assessment function will be transferred to the Productivity Commission
(PC).
10. Under the Water Act 2007 (Water Act), the NWC is responsible for five-yearly audits
of the effectiveness of the implementation of the Basin Plan 2012 (Basin Plan) and
water resource plans accredited under the Basin Plan.
11. The five-yearly audits of Basin Plan implementation and water resource plans will
also be transferred to the PC.
FINANCIAL IMPACT STATEMENT
12. The closure of the NWC, as effected by the Bill, will provide a saving of $20.9 million
over four years.
2
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
13. The Bill repeals the NWC Act, abolishing the NWC, a Commonwealth agency
established by the Act. The principal role of the NWC is to provide oversight and
assessment of national water reform. The Bill will also transfer two functions, the
triennial assessment function and the Basin Plan audit function, to the PC.
14. The 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.
15. The Bill does not engage any of the applicable rights or freedoms. The proposed
amendments are of a machinery of government nature and do not limit any human
rights or provide for any offences or penalties.
Conclusion
16. The Bill is compatible with human rights as it does not engage any of the applicable
rights or freedoms.
NOTES ON INDIVIDUAL CLAUSES
Clause 1 - Short Title
17. This clause provides that the Act is to be cited as the National Water Commission
(Abolition) Act 2014 (Act).
Clause 2 - Commencement
18. This clause provides that the Act will commence on 1 January 2015.
Clause 3 - Schedule
19. This clause provides for the repeal of the National Water Commission Act 2004 (NWC
Act) and amendments to the Water Act 2007 (Water Act) as specified in the Schedule.
Schedule 1 - Amendments
Part 1 - Repeals
National Water Commission Act 2004
Item 1 - the whole of the Act
20. This item repeals the NWC Act.
Part 2 - Amendments
Water Act 2007
Item 2-4 - Subsection 4(1)
3
21. These items insert new definitions into subsection 4(1), which sets out defined terms
used throughout the Water Act.
Item 5 - Subsection 74A(4)
22. This item repeals subsection 74A(4) of the Water Act to reflect the closure of the
NWC. Subsection 74A(4) provides that the Minister may seek the NWC's advice
when considering whether to make or revoke a determination that a Basin State has
applied the NWI risk assignment framework under state legislation. Determinations
must be made prior to the Basin Plan first having taken effect.
23. Determinations have been made for only two Basin States (New South Wales and
Queensland). No more determinations can be made under this section following the
commencement of the Basin Plan in November 2012. The section has a limited
ongoing operation because it is possible for a determination to be revoked. There is no
current intention to revoke either determination, and the Minister can seek advice if
necessary and does not require a statutory power to do so.
Item 6 - Part 3-Productivity Commission inquiries
24. This item repeals Part 3 of the Water Act and substitutes a new Part 3 providing for
the referral of matters to the PC for inquiry. The new Part will provide the PC with
responsibility for undertaking future triennial assessments of progress toward
implementing the NWI and five-yearly audits of implementation of the Basin Plan and
water resource plans accredited under the Water Act. These functions were formerly
undertaken by the NWC.
25. The matters that may be referred to the PC under the new Part 3 are taken to be
matters relating to industry, industry development and productivity under paragraph
6(1)(a) of the Productivity Commission Act 1998.
Productivity Commission inquiry - Basin Plan and water resource plans
26. The new Part 3 will provide for the PC to undertake, on a five-yearly basis, the inquiry
into implementation of the Basin Plan and water resource plans.
27. Item 6 inserts new section 87, which requires the Productivity Minister to refer the
matter of the effectiveness of the Basin Plan and water resource plans to PC. The
Productivity Minister must refer the matter to the PC during the 5-year period ending
on 31 December 2018, reflecting the fact that the NWC's initial Basin Plan assessment
was conducted in 2013.
28. To allow for ongoing assessment of Basin Plan implementation, new subsection 87(2)
requires the Productivity Minister to refer the matter to the PC during the 5-year
period following the completion of the PC's most recent inquiry.
29. The Productivity Minister's referral must specify the 5-year period in which the
referral occurs as the period within which the PC must submit its report on the inquiry
to the Productivity Minister. The effect of this is that the inquiry must be completed
and report submitted to the Productivity Minister within the five year period specified.
30. The Bill also retains the requirement in the current provisions of the Water Act for the
Basin Plan inquiry reports to be provided to the Murray-Darling Basin Authority
(Authority) and Basin States as defined by section 4(1) of the Water Act. This will
ensure that the Authority and Basin States remain appraised of progress toward
implementation of the Basin Plan and opportunities for strengthening work toward
implementation.
4
31. A copy of the report will also be provided to the Commonwealth Minister with
portfolio responsibility for water (`Water Minister') as part of the PC's usual
practices.
Productivity Commission inquiry - National Water Initiative
32. The new Part 3 will provide for the PC to undertake, on a triennial basis, assessments
of progress by NWI parties toward achieving the NWI outcomes and objectives. The
assessments are designed to comprehensively assess progress toward implementing
the NWI and make recommendations on actions that NWI parties might take to better
achieve national water reform objectives and outcomes. Consequently, it is important
for the PC's report on the inquiry to continue to be provided to the Council of
Australian Governments (COAG) and relevant COAG subcommittees to ensure that
all NWI parties remain appraised of the implementation of the NWI and opportunities
to strengthen its implementation.
33. Item 6 inserts new section 88, which requires the Productivity Minister to refer the
matter of the progress of parties to the NWI towards achieving the objectives and
outcomes of the NWI within the timelines required by the NWI. The matter must be
referred during the 3-year period ending on 31 December 2017.
34. As part of the referral, the Productivity Minister must require the PC to make
recommendations on actions that the parties to the NWI might take to better achieve
NWI outcomes and objectives.
35. To allow for ongoing assessment of NWI progress, new subsection 87(2) requires the
Productivity Minister to refer the matter for inquiry during the 3-year period following
the completion of the PC's most recent inquiry.
36. The Productivity Minister's referral to the PC must specify the 3-year period in which
the referral occurs as the period within which the PC must submit its report on the
inquiry to the Productivity Minister. The effect of this is that the inquiry must be
completed and report submitted to the Productivity Minister within the three year
period specified.
37. New subsection 87(4) requires the PC to give a copy of the report to COAG and to
any COAG subcommittee that deals with matters relating to water. The report is
required to be provided to these parties, after it has been provided to the Productivity
Minister but before it is tabled in Parliament. A copy of the report will also be
provided to the Water Minister as part of the PC's usual practices.
Part 3 - Transitional provisions
Item 7 - Definitions
38. This item sets out the definitions used in this Part.
Item 8 - Transfer of records to the Department
39. This item provides that any records or documents that were in the possession of the
NWC immediately before the transition time (the date on which this Part commences)
will be transferred to the Department.
5
Item 9 - Transfer of Ombudsman agencies
40. This item sets out how outstanding complaints to the Ombudsman and Ombudsman
investigations about NWC actions that are not finally disposed of by the Ombudsman
by the transition time are to be dealt with.
41. After the transition time, the Department will be substituted for the NWC in any
unresolved matters in which the NWC was involved before the transition time.
42. It provides that the Ombudsman Act 1976 will apply as if the NWC's action had been
taken by the Department.
Item 10 - Final annual report - National Water Commission
43. This item provides for the final NWC annual report.
44. It requires the Secretary of the Department to prepare and give to the Minister a report
on the operations of the NWC during the final reporting period. `Final reporting
period' is defined in Item 7 and means the period beginning on 1 July 2014 and ending
on 31 December 2014.
45. The Secretary must submit the report to the Minister within 3 months after the end of
the final reporting period. The Minister may grant an extension of time in special
circumstances.
46. The Minister must table the report in each House of the Parliament as soon as is
practicable, and the Secretary of the Department must publish the report on the
Department's website as soon as practicable after the report is tabled in the House of
Representatives.
47. This item ensures that the NWC's annual reporting obligations to the Minister and to
the Parliament are met for the final period of the NWC's operations.
Item 11 - Transitional rules
48. This item provides that the Minister may, by legislative instrument, make rules in
relation to transitional matters arising out of the amendments and repeals made by this
Schedule.
6