9th Sep 2024, 12:09 PM – Representatives Net Zero Economy Authority Bill 2024 - Consideration of Senate Message - Agree and pass the bill

The majority voted in favour of a motion "That the amendments be agreed to." In other words, they voted to agree with the Senate amendments. This means that the bill has now been passed in its final form in both houses of parliament and so it will now become law.

What do these amendments do?

Perth MP Patrick Gorman (Labor) explained that:

It is important to note that the amendments do not substantially change the intended operation of the Net Zero Economy Authority or the Energy Industry Jobs Plan that it will administer. I will speak to each of the amendments briefly. Amendment to clause 3—the object: this amendment adds reference to communities in the object clause of the bill. The bill, as introduced by the government, already made it clear that, in performing its functions, the Net Zero Economy Authority will prioritise communities, regions, industries and workers that are or will be significantly affected by Australia's transition to a net zero emissions economy. The authority's operating model will be to work in partnership with and through local institutions and stakeholders. It will bring significant resources and capacity of the Commonwealth into local settings and be driven by local and regional priorities. The government is happy to support this amendment. It highlights that supporting communities will be a central focus of the authority 's work.

Amendment to clause 68—tabling of review of part 5: the amendment will ensure that the review of part 5 of the bill, which relates to the Energy Industry Jobs Plan, will be tabled in both houses of parliament within 15 sitting days once provided to the minister. This amendment is minor and responds to a recommendation from the Standing Committee for the Scrutiny of Bills. The government accepts this amendment as a means of supporting transparency and accountability in government operations.

Amendment to clause 74—annual report: this amendment will require the authority to include in its annual report a section reporting on the operation of the act. This includes describing how the operation of the act responds to the needs and circumstances of communities, regions, industries and workers that are or will be significantly affected by Australia's transition to a net zero emissions economy. The government wants to ensure that the authority operates in accordance with the act to enhance transparency and accountability, and the government supports this amendment

New clause 80(A)—reviews of the operation of the act: this amendment will require the minister to cause an independent review of the operation of the act if a recommendation is made by the board of the authority. The government notes that the Commonwealth government structures policy provides for periodic reviews of new and existing governance bodies at least every 10 years. The government supports statutory bodies being reviewed to ensure they remain fit for purpose. We are happy to go one step further and agree to include a general review provision in this bill. Every report of a review sets out one or more recommendations to the government. A government response to each of the recommendations must be prepared and tabled in both houses of parliament.

Amendments to clause 23, on board composition, would require that one board member have expertise or experience in Indigenous advocacy or community leadership. That would increase the minimum number of board members from six to seven. Indigenous advocacy or community leadership was already a field from which potential board members could be drawn. The government is happy to go one step further and require that one board member has this expertise or experience. The amendments to the board's composition confirm that First Nations people are vital partners in the net zero transformation.

Amendment text

(1) AG (1) [sheet 2835] Clause 3, page 2 (lines 16 to 18), omit paragraph (3)(c), substitute:

(c) ensure Australia's regions, communities and workers are supported to manage the impacts, and share in the benefits, of Australia's transition to a net zero emissions economy.

(2) AG (2) [sheet 2835] Clause 4, page 4 (line 9), omit "delegations", substitute "delegations, review of this Act".

(3) Ind (Thorpe) (1) [sheet 2707] Clause 21, page 23 (line 5), omit "5", substitute "6".

(4) Ind (Thorpe) (2) [sheet 2707] Clause 21, page 23 (line 8), omit "6", substitute "7".

(5) Ind (Thorpe) (3) [sheet 2707] Clause 23, page 24 (after line 13), after paragraph (2)(d), insert:

(da) 1 other Board member with expertise or experience, professional credibility and significant standing in any of the fields mentioned in paragraph (3)(i); and

(6) Ind (Thorpe) (4) [sheet 2707] Clause 23, page 24 (line 14), omit "3", substitute "2".

(7) Ind (Thorpe) (5) [sheet 2707] Clause 23, page 24 (line 17), omit "and (d)", substitute ", (d) and (da)".

(8) Ind (Thorpe) (6) [sheet 2707] Clause 23, page 24 (line 32), omit "engagement,".

(9) AG (3) [sheet 2835] Clause 68, page 73 (after line 27), at the end of the clause, add:

(7) The Minister must cause a copy of the report of the review to be tabled in each House of the Parliament within 15 sitting days of that House after the report is given to the Minister.

(10) AG (4) [sheet 2835] Clause 69, page 74 (after line 10), after the paragraph beginning "The Board and the CEO", insert:

There are to be reviews of the operation of this Act.

(11) AG (5) [sheet 2835] Clause 74, page 77 (lines 6 to 11), omit the clause, substitute:

74 Annual report

The annual report prepared by the Board and given to the Minister under section 46 of the PGPA Act for a period must include:

(a) particulars of any directions given to the Board by the Minister under section 20 of this Act during the period to which the report relates; and

(b) a report on the operation of the Act in the period, including in response to the needs and circumstances of communities, regions, industries and workers that are, or will be, significantly affected by Australia's transition to a net zero emissions economy.

(12) AG (6) [sheet 2835] Page 85 (after line 7), after clause 80, insert:

80A Reviews of the operation of this Act

(1) The Minister must cause an independent review to be conducted of the operation of this Act:

(a) on a recommendation of the Board under subsection (3); or

(b) if no recommendation is made by the Board within the period of 9 years after the commencement of this Act— before the end of the period of 10 years after the commencement of this Act; or

(c) if no recommendation is made by the Board within the period of 9 years after the completion of a previous review under this subsection—before the end of the period of 10 years after the completion of the previous review.

(2) The Minister must specify:

(a) terms of reference for the review, which must include a review of the operation of Part 5 of the Act; and

(b) how the review is to be conducted; and

(c) the timing of the review.

Board's recommendation

(3) The Board may, in writing, recommend to the Minister that a review be conducted of the operation of this Act. The Board must set out the reasons for the recommendation.

(4) The Board may include in a recommendation made under subsection (3) advice on the matters mentioned in subsection (2).

(5) Before making a recommendation under subsection (3), the Board must consider the changing needs or circumstances of communities, regions, industries and workers that are, or will be, significantly affected by Australia's transition to a net zero emissions economy.

(6) The Board must cause a copy of the recommendation to be published on the Authority's website.

Public consultation

(7) A review under subsection (1) must make provision for public consultation. Report

(8) The person or persons who conduct the review must give the Minister a written report of the review.

(9) The Minister must cause a copy of:

(a) the terms of reference for the review; and

(b) a report under subsection (8) in relation to the review; to be tabled in each House of the Parliament within 15 sitting days of that House after the review is completed.

When review is completed

(10) For the purposes of this section, a review is completed when the report of the review is given to the Minister under subsection (8).

Government response to recommendations

(11) If a report of a review sets out one or more recommendations to the Commonwealth Government:

(a) as soon as practicable after receiving the report, the Minister must cause to be prepared a statement setting out:

(i) the Commonwealth Government's response to each of those recommendations; and

(ii) if the Commonwealth Government has not accepted a recommendation—the reasons for not accepting the recommendation; and

(b) within 6 months after receiving the report, the Minister must cause copies of the statement to be tabled in each House of the Parliament.