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2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Parliamentary Joint Committee on the Australia Fund Bill 2014
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Clive Frederick Palmer MP
Parliamentary Joint Committee on the Australia Fund Bill 2014
OUTLINE
The purpose of this bill is to establish a Joint Parliamentary Committee to investigate
establishing an Australia Fund. Such a fund would be designed to assist in the support
and reconstruction of Australian rural and manufacturing industries in times of crisis,
including natural disasters, (such as drought, floods and bushfires) or in cases of a world
financial crisis or unfair market intervention/manipulation.
It is envisaged that the Australia Fund would have the ability, on the basis of an
assessment of the industry and/or businesses, to provide emergency and on-going
drought/flood/bushfire relief, loan money to businesses, act as a guarantor for loans,
capitalise or waive interest, purchase existing bank loans, and assume control of relevant
property of the business for a specified time. In this way, the Fund would be designed to
enable businesses to continue operations to earn revenue, employee workers and pay
taxes, rather than be prematurely wound up, and support communities affected by natural
disasters.
It would also provide funds for industry and/or company restructuring and the acquisition of
new technologies to make businesses more economically viable and internationally
competitive.
As part of its investigation as to the need for the fund, the Committee would undertake
hearings in all capital cities and major rural centres and specifically examine the impact on
rural Australia of on-going drought and world market price fluctuations for primary industry
produce.
The Committee's terms of reference would also include reviewing existing bankruptcy and
insolvency laws with the aim of introducing legislation designed to assist companies to
trade through difficult times, rather than be closed down. The existing taxation laws
relating to bankruptcy would also be reviewed. The possible introduction of the equivalent
of the United States Chapter 11 provisions would also be investigated.
Administrative support to the Committee could be provided by the House and/or Senate
Departments.
At the completion of its enquiry the Committee would table before Parliament a detailed
report of its findings and recommendations.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1 - provides for the Act to be called Parliamentary Joint Committee on the
Australia Fund Act 2014
Clause 2 - provides for the Act to commence when it receives the Royal Assent
Clause 3 - provides a simplified outline of the Act - to establish the Parliamentary Joint
Committee on the Australia Fund. The Committee is to investigate whether a body, to be
known as the Australia Fund, should be established, and the appropriateness
Clause 4 - lists definitions
Clause 5 - outlines the Committee
Clause 6 - provides for the nomination of committee members
Clause 7 - provides for the appointment of Committee members
Clause 8 - outlines the process for the ceasing of Committee membership
Clause 9 - lists the functions of the Committee - including investigation into whether a
body, to be known as the Australia Fund, should be established to support rural and
manufacturing industries in Australia in times of crisis and support communities affected by
natural disasters. The Committee would also assess the efficacy of existing bankruptcy or
insolvency laws.
Clause 10 - provides for the powers of the Committee
Clauses 11 to 14 - sets out the standard rules for the conduct of meetings of the
Committee, including calling of meetings, quorum and voting.
Clause 15 - provides for other powers and proceedings of the Committee.
Clause 16 - outlines a Sunset provision for the Act to cease to have effect immediately
after the Committee tables its final report in each House of the Parliament.
Clause 17 - provides for the Minister to make relevant rules regarding the Act, by
legislative instrument.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Parliamentary Joint Committee on the Australia Fund Bill 2014
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 establish a Joint Committee to investigate the need for establishing a
special purpose fund (Australia Fund) to assist in the support and reconstruction of Australian rural
and manufacturing industries in times of crisis, including natural disaster and world financial crisis.
Human rights implications
This Bill/Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
The Bill is compatible with human rights because it does not raise any human rights issues.
Clive Frederick Palmer MP
Member for Fairfax