Attachment A

 

Details of the Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade Measures No. 3) Regulations 2023

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade Measures No. 3) Regulations 2023.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after registration on the Federal Register of Legislation.

 

Section 3 - Authority

 

This section provides that the Regulations are made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Financial Framework (Supplementary Powers) Regulations 1997

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds one new table item to Part 4 of Schedule 1AB to establish legislative authority for government spending on an activity to be administered by the Department of Foreign Affairs and Trade (the department).

 

New table item 624 establishes legislative authority for government spending on the
Go-Green Co-Innovation Program (GGCIP).

 

The GGCIP is a joint initiative between Australia and Singapore to facilitate and incentivise business-to-business collaboration in green sectors. The GGCIP was established under the Singapore-Australia Green Economy Agreement (GEA), which was jointly signed by the Minister for Trade and Tourism, Senator the Hon Don Farrell and the Minister for Trade and Industry of Singapore, Mr Gan Kim Yong, on 18 October 2022. The media release on the GEA is available at https://www.trademinister.gov.au/minister/don-farrell/media-release/australia-singapore-landmark-green-economy-agreement.

 

The objective of the GGCIP is that, by 2026, more Australian and Singaporean enterprises are collaborating on commercially viable, innovative green products and services to increase trade and commerce between Singapore and Australia in green sectors. Only small and medium enterprises (SMEs) are eligible for Australian GGCIP funding. The design phase of the GGCIP commenced in 2022-23 and funding will commence in 2023-24. A call for proposals is anticipated to occur in September 2023. It will be a four-year program, ending on 30 June 2026.

 

The program implementation/delivery mechanism will include multi-year grants with up to two years to complete each grant activity. Two grant rounds are anticipated, one in 2023-24 and another, if required, in 2024-25. Singaporean and Australian SMEs will form partnerships and submit an application for consideration by their respective Governments. Grants made available by Australia will fund Australian SMEs. Singapore will fund their SMEs through their own grant scheme. A committee of technical experts and Australian Government officials will assess grant applications against set criteria, and a list of priority green sectors. Shortlisted applications will be discussed and considered with Singapore to finalise the list of successful applicants.

 

The intended outcomes of the GGCIP are:

*         Australian SMEs and Singaporean enterprises jointly develop commercially viable, green products and services across priority green sectors;

*         Australian and Singaporean enterprises establish or expand partnerships across green sectors, and share knowledge on decarbonising business operations and innovations that contribute to emissions reductions; and

*         Australian and Singaporean enterprises share knowledge across green sectors for Singapore, Australia and regional economies that increase market awareness.

 

Grant activities must be delivered in Australia (with a Singapore partner), in Singapore, or in both countries, and achieve the following aims:

*         collaborating and networking to build capacity and deliver green sector products and services with market potential in partnership with a Singapore enterprise;

*         supporting a company to ascertain if its proposed new green product or service has sufficient market viability; and

*         contribute to one or more of the following priority green sectors: renewable and clean energy, sustainable agribusiness and food, built environment and infrastructure, advanced manufacturing and sustainable materials, waste management and the circular economy, green transportation and logistics, energy efficient technology and products, environmental monitoring analysis and assessment, emerging green sector innovative products or services that align with GEA initiatives' priorities.

 

Funding will be provided to successful SMEs as a competitive grant. The grant will be administered in accordance with the Commonwealth resource management framework, including the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Commonwealth Grants Rules and Guidelines 2017 (CGRGs).

 

Projects developed under the GGCIP must be a joint project between an Australian SME and a Singaporean business partner and must:

*        be delivered in Singapore; or

*        involve trade and commerce between Singapore and Australia; or

*        foster or promote trade and commerce between Singapore and Australia; and 

*        be jointly carried out in Singapore and/or Australia with a Singaporean business partner.

The grant opportunity is administered by the Australian Government (represented by the department) and the Singaporean Government through Enterprise Singapore (EnterpriseSG). Australia and Singapore will collaborate to select successful projects.

 

Grant opportunity guidelines will be developed and will take into consideration eligibility criteria for activities to be delivered wholly or partly in Australia.

 

Information about the grant, including grant opportunity guidelines, will be made available on the GrantConnect website (www.grants.gov.au). It is intended that the Green Economy Branch, part of the department, will administer the grants using SmartyGrants.

 

Grant applications will be assessed and shortlisted by an assessment panel that includes government officials with technical expertise. Where specific technical expertise on a green sector cannot be sourced from government department officials, experts will be sourced from existing Commonwealth Government panels on AusTender (www.tenders.gov.au).

 

The assessment panel may make recommendations to the decision maker, a delegate of the Secretary of the department under the Financial Framework (Supplementary Powers) Act 1997. The delegate will be an Assistant Secretary with oversight of the GEA, and will be responsible for approving Commonwealth funding provided to successful grant recipient SMEs. Information about final decisions will be made publicly available, on the GrantConnect website.

 

Independent merits review of decisions made in connection with the grant would not be considered appropriate because these decisions relate to the provision of a one-off grants through a competitive selection process. The Administrative Review Council has recognised that it is justifiable to exclude merits review in relation to decisions of this nature (see paragraphs 4.16 to 4.19 of the guide, What decisions should be subject to merit review?).

 

The GGCIP will assess applications competitively against the program guidelines. A committee of Australian Government officials with technical expertise will assess grant applications against set criteria and selection process, and a list of priority green sectors. The grant process and lifecycle will be administered in accordance with the CGRGs which includes applying the seven key principles for grants administration. Grants will be awarded under the resource management framework which includes the PGPA Act.

 

The review and audit process undertaken by the Australian National Audit Office also provides a mechanism to review Australian Government spending decisions and report any concerns to the Parliament. These requirements and mechanisms help to ensure the proper use of Commonwealth resources and appropriate transparency around decisions relating to making, varying or administering arrangements to spend relevant money. Further, the right to review under section 75(v) of the Constitution and review under section 39B of the Judiciary Act 1903 may be available. Persons affected by spending decisions would also have recourse to the Commonwealth Ombudsman where appropriate.

 

The Export Council Australia coordinated state and territory industry consultations and provided potential grant recipients the opportunity to provide input to the design phase. The department also consulted with both Australian and Singaporean entities, including the Australian Trade and Investment Commission (Austrade), Commonwealth Scientific and Industrial Research Organisation, the Department of Industry, Science and Resources, the Department of Climate Change, Energy, the Environment and Water and EnterpriseSG during the development and design of the grant opportunity. Applicant information sessions will be held following announcement of the GGCIP and publication of the GGCIP guidelines. EnterpriseSG, the department and Austrade will support sourcing and screening grant applicants through a variety of modalities including events.

 

Administered funding of $10.0 million for the GGCIP was included in the October 2022 Budget under the measure 'Supporting Australia's Trade and Tourism Sectors' for the Singapore-Australia Green Economy Agreement, for a period of four years commencing in 2022-23. Details are set out in Budget October 2022-23, Budget Measures, Budget
Paper No. 2 at page 116.

 

Funding for this item will come from Program 1.1.1 - Component 1: Foreign Affairs and Trade Operations, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2022-23, Budget Related Paper No. 1.18, Foreign Affairs and Trade Portfolio at page 27.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix)); and

*         the trade and commerce power (section 51(i)).

 

External affairs power

 

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation with respect to matters or things outside the geographical limits of Australia.

 

Some grant activities under the GGCIP will be delivered in Singapore. 

 

Trade and commerce power

 

Section 51(i) of the Constitution empowers the Parliament to make laws with respect to 'trade and commerce with other countries, and among the states'.

 

Grant activities under the GGCIP will be delivered with the purpose of incentivising businesses in Australia and Singapore to collaborate on commercially viable, innovative green products and services, to increase trade and commerce between Singapore and Australia.

 

 

Attachment B

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade
Measures No. 3) Regulations 2023

 

This disallowable legislative instrument 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 legislative instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations. Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs. The powers in the FF(SP) Act to make, vary or administer arrangements or grants may be exercised on behalf of the Commonwealth by Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013.

 

The Financial Framework (Supplementary Powers) Amendment (Foreign Affairs and Trade Measures No. 3) Regulations 2023 (the Regulations) amends Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on the
Go-Green Co-Innovation Program (GGCIP), which is administered by the Department of Foreign Affairs and Trade.

 

The GGCIP is a joint initiative between Australia and Singapore to facilitate and incentivise business-to-business collaboration in green growth sectors. The GGCIP was established under the Singapore-Australia Green Economy Agreement, which was signed by Trade Ministers in October 2022. The GGCIP seeks to establish or expand business and commercial activities that boost trade and commerce between Australia and Singapore in goods and services across green growth sectors.

 

The objective of GGCIP is that, by 2026, more Australian and Singaporean enterprises are collaborating on commercially viable, innovative green products and services to increase trade and commerce between Singapore and Australia. Only small and medium enterprises are eligible for Australian GGCIP funding. The GGCIP will be available from 2023-24, with a call for proposals anticipated to occur in September 2023. GGCIP will end on 30 June 2026.

 

Administered funding of $10.0 million over four years from 2023-24 will be available for the GGCIP.

 

 

Human rights implications

 

This disallowable legislative instrument engages the following human rights:

*         the right to privacy and reputation - Article 17 of the International Covenant on Civil and Political Rights (ICCPR) read with Article 2 and Article 22 of the Convention on the Rights of Persons with Disabilities (CRPD) read with Article 4;

*         the right to an adequate standard of living - Article 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) read with Article 2; and

*         the right to health - Article 12 of the ICESCR.

 

Right to privacy and reputation

 

Article 2 of the ICCPR requires that each State Party to the Covenant undertakes to respect and ensure the rights recognised in the Covenant, adopt laws or other measures to give effect to these rights, and ensure an effective remedy to any person whose rights recognised in the Covenant are violated.

 

Article 17 of the ICCPR prohibits unlawful or arbitrary interferences with a person's privacy, family, home and correspondence. It also prohibits unlawful attacks on a person's reputation. It provides that persons have the right to the protection of the law against such interference or attacks.

 

Article 4 of the CRPD requires States Parties to ensure and promote the full realisation of all human rights and fundamental freedoms for all persons with disabilities without discrimination of any kind on the basis of disability.

 

Article 22 of the CRPD requires States Parties to ensure that no person with disabilities, regardless of place of residence or living arrangements, is subjected to arbitrary or unlawful interference with his or her privacy, family, home or correspondence or other types of communication, or to unlawful attacks on his or her honour and reputation.

 

This disallowable legislative instrument engages the right to privacy and reputation as it will involve the collection, storage and use of an applicant's personal information where the applicant for a grant, or key persons on behalf of the applicant for a grant, are individuals. Personal information will be handled consistently with the Australian Privacy Principles and the Australian Privacy Act 1988.

 

Right to an adequate standard of living

 

Article 2 of the ICESCR requires that each State Party to the Covenant undertakes to take steps to the maximum of its available resources, especially economic and technical, to realise the rights recognised in the Covenant, particularly through legislative measures.

 

Article 11(1) of the ICESCR recognises the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions. 

 

While the nature of applications for funding under the GGCIP cannot be predicted, the program is designed to facilitate and incentivise business-to-business collaboration on commercialising innovative green products and services. It is possible that some of those green products or services may be relevant to the supply of nutritious food or water, or the supply of green affordable housing. As such, this disallowable legislative instrument may result in the promotion of the right to an adequate standard of living, including food, water and housing.

 

Right to Health

 

Article 12(1) of the ICESCR recognises the right of everyone to the enjoyment of the highest attainable standard of physical and mental health.

 

While the nature of applications for funding under the GGCIP cannot be predicted, the program is designed to facilitate and incentivise business-to-business collaboration on commercialising innovative green products and services. It is possible that some of those green products or services may be relevant to access to essential foods, which are nutritionally adequate and safe; access to basic shelter, housing and sanitation, and an adequate supply of safe and potable water. As such, this disallowable legislative instrument may result in the promotion of the right to health.

 

This disallowable legislative instrument is compatible with human rights because it may result in a grant activity being funded that would engage and promote the protection of human rights, through business-to-business collaboration in green sectors between Singapore and Australia. To the extent that the item may limit an individual's right to privacy, the limitation is reasonable, necessary and proportionate because it is required in order to assess and contact applicants as part of the grant assessment process.

 

Conclusion

 

This disallowable legislative instrument is compatible with human rights because it promotes the protection of human rights.

 

 

 

 

Senator the Hon Katy Gallagher

Minister for Finance