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senate vote 2017-10-18#2
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mackay staff
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2018-01-20 17:35:13
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Title
Bills — Regional Investment Corporation Bill 2017; in Committee- Regional Investment Corporation Bill 2017 - in Committee - Eligibility criteria for loans & financial assistance
Description
<p class="speaker">Carol Brown</p><p>I move opposition amendment (2) on sheet 8225:</p><p class="italic">(2) Clause 11, page 10 (line 21), paragraph 11(2) (c) <i>to be opposed</i>.</p>- The majority voted in favour of keeping [paragraph 11(2)(c)](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr5906_first-reps%2F0002;query=Id%3A%22legislation%2Fbills%2Fr5906_first-reps%2F0000%22;rec=0) unchanged. In parliamentary jargon, they voted for that paragraph to *stand as printed*. This question was put to the Senate because Senator [Carol Brown](https://theyvoteforyou.org.au/people/senate/tasmania/carol_brown) had proposed for that paragraph to be opposed.
- Senator Brown [explained that](http://www.openaustralia.org.au/senate/?gid=2017-10-18.122.1), opposing this paragraph:
- > *will remove the ministers' influence on directing the corporation about the eligibility criteria for loans and financial assistance. The independence of the corporation is critical when establishing the eligibility criteria for loans or financial assistance. The lack of detail about what loans and financial assistance will be provided by the corporation is concerning when we know that the current concessional loans take into consideration the viability of the farm enterprise. To ensure that the corporation is able to manage its lending criteria, the responsible ministers should not be able to give directions about eligibility criteria for loans or financial assistance.*
- ### What does this bill do?
- The [bill](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5906) was introduced to create a Regional Investment Corporation to administer farm business loans and financial assistance granted to states and territories. Read more about it in the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1718a/18bd013).
<p>This amendment will remove the ministers' influence on directing the corporation about the eligibility criteria for loans and financial assistance. The independence of the corporation is critical when establishing the eligibility criteria for loans or financial assistance. The lack of detail about what loans and financial assistance will be provided by the corporation is concerning when we know that the current concessional loans take into consideration the viability of the farm enterprise. To ensure that the corporation is able to manage its lending criteria, the responsible ministers should not be able to give directions about eligibility criteria for loans or financial assistance.</p><p>Labor strongly urges senators to support the amendment to strengthen the independence of the corporation. Once again, I make reference to Minister Ruston, who compared the RIC to the Clean Energy Finance Corporation. These two corporations are different in their objectives, and the Clean Energy Finance Corporation is independent in its own right, as opposed to the RIC, which is beholden to the ministers of the day.</p> <p class="speaker">Anne Ruston</p><p>In relation to the proposed amendment (2) from the Labor Party, which would have the eligibility criteria for loans or financial assistance prescribed in rules which are disallowable instruments, the government believes this is an inappropriate mechanism through which to provide for the eligibility criteria for loans. We believe they are matters over which the executive arm of government should retain control as they have the potential to impact on the Commonwealth budget. We, therefore, believe it's appropriate that they are provided for in the bill as directions to the entity rather than as rules. We also believe that it's appropriate that they are not disallowable.</p> <p class="speaker">Janet Rice</p><p>The Greens will be supporting the Labor amendments as we have discussed in the previous debate. It is essential that there be more in the legislation that explicitly outlines what can and can't be lent to and does not leave it to the discretion of the minister, who can then direct the board.</p><p>The CHAIR: The question is that paragraph 11(2)(c) stand as printed.</p>
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