Division Description Changes — Bills — Regional Investment Corporation Bill 2017; Second Reading — 17th Oct 2017

Change	Division
senate vote 2017-10-17#2 Edited by mackay staff on 2018-01-20 17:59:20	Title Bills — Regional Investment Corporation Bill 2017; Second Reading Regional Investment Corporation Bill 2017 - Second Reading - Agree with bill's main idea Description ~~<p class="speaker">Anne Ruston</p>~~ <p>In summing up in relation to the Regional Investment Corporation Bill 2017, can I just put on the record that this bill delivers on an election commitment by the government to establish a regional investment corporation. We're establishing this corporation because we know that a high-performing agricultural sector is good for farmers, good for regional communities and good for national prosperity.</p> <p>As a nation, we want to make sure that we have strong and resilient farms and farm businesses that can seize the opportunities that are before us. In such a competitive and challenging environment, we need to make sure that we give the tools to those farm businesses that they need to take advantage of these opportunities. We also need the right water infrastructure in place for agriculture to expand and increase its productivity. Establishing the corporation will support both of these goals. The corporation will deliver the Commonwealth's farm business loans program nationally and this will be a significant step forward. Because we believe that we need to be more responsive in providing these loans to meet the needs of farm businesses, loans decisions will also be made consistently across the country under this new instrument.</p> The majority voted in favour of the [bill's](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r5906) main idea. In parliamentary jargon, they voted to read the bill [for a second time](http://www.peo.gov.au/learning/fact-sheets/making-a-law.html). ### What was the bill's main idea? The bill will deliver on a [2016 election commitment](http://www.abc.net.au/news/rural/2016-06-23/barnaby-joyce-agriculture-election/7535450) by creating the Regional Investment Corporation. The Corporation will, among other things, "administer farm business loans and financial assistance granted to states and territories* in *relation to water infrastructure projects". Read more in the [bills digest](http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1718a/18bd013).** <p>The farm business loans program offered by the corporation will be improved and expanded. Its loans will help farm businesses take advantage of opportunities to diversify in the markets they supply and the loans will boost farm productivity and cash flow, and provide positive economic and social flow-on effects to the entire Australian community. The corporation will not be a lender of last resort. The focus will be on giving a hand-up to those farmers who are viable but in need of temporary short-term assistance. The corporation will administer the National Water Loan Facility, providing independent, expert advice to government on water infrastructure projects; it will then administer loans on behalf of the Commonwealth with the right expertise.</p> <p>The provisions of the bill were examined in an inquiry by the Senate Rural and Regional Affairs and Transport Legislation Committee. The committee recommended that the bill be passed and considered that its enactment would streamline the delivery of concessional loans for farm businesses and for water infrastructure. Obviously, the government welcomes that finding. Despite the committee's overall recommendation, I note that Labor senators provided a dissenting report, which raised a number of issues with the bill and the proposed establishment of the corporation. The policy rationale for establishing the corporation is quite clear. As for the governance and the oversight arrangements, they are appropriate for a corporate Commonwealth entity and align with what the parliament has agreed for similar entities, such as the Clean Energy Finance Corporation. I note that in addition to the requirements in the bill, the corporation will be subject to the requirements of the Public Governance, Performance and Accountability Act 2013, which forms an important part of the overall governance structure. In addition, the corporation will be subject to the usual Senate scrutiny process.</p> <p>To conclude, establishing the corporation will make a significant contribution to stronger and more prosperous rural and regional communities across the whole of the country. Its loans will help farm businesses build and maintain diversity in the markets they supply. It will also help support the construction of priority water infrastructure to stimulate investment, economic growth and increase agricultural productivity in rural and regional Australia. Establishing the corporation demonstrates this government's commitment to the Australian farm sector.</p> ~~<p class="speaker">Stephen Parry</p>~~ ~~<p>The question is that the bill be now read a second time.</p>~~

~~Anne Ruston~~
In summing up in relation to the Regional Investment Corporation Bill 2017, can I just put on the record that this bill delivers on an election commitment by the government to establish a regional investment corporation. We're establishing this corporation because we know that a high-performing agricultural sector is good for farmers, good for regional communities and good for national prosperity.
As a nation, we want to make sure that we have strong and resilient farms and farm businesses that can seize the opportunities that are before us. In such a competitive and challenging environment, we need to make sure that we give the tools to those farm businesses that they need to take advantage of these opportunities. We also need the right water infrastructure in place for agriculture to expand and increase its productivity. Establishing the corporation will support both of these goals. The corporation will deliver the Commonwealth's farm business loans program nationally and this will be a significant step forward. Because we believe that we need to be more responsive in providing these loans to meet the needs of farm businesses, loans decisions will also be made consistently across the country under this new instrument.
The majority voted in favour of the [bill's](http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:legislation/billhome/r5906) main idea. In parliamentary jargon, they voted to read the bill [for a second time](http://www.peo.gov.au/learning/fact-sheets/making-a-law.html).
### What was the bill's main idea?
The bill will deliver on a [2016 election commitment](http://www.abc.net.au/news/rural/2016-06-23/barnaby-joyce-agriculture-election/7535450) by creating the Regional Investment Corporation. The Corporation will, among other things, *"administer farm business loans and financial assistance granted to states and territories in relation to water infrastructure projects"*.
Read more in the [bills digest](http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1718a/18bd013).
The farm business loans program offered by the corporation will be improved and expanded. Its loans will help farm businesses take advantage of opportunities to diversify in the markets they supply and the loans will boost farm productivity and cash flow, and provide positive economic and social flow-on effects to the entire Australian community. The corporation will not be a lender of last resort. The focus will be on giving a hand-up to those farmers who are viable but in need of temporary short-term assistance. The corporation will administer the National Water Loan Facility, providing independent, expert advice to government on water infrastructure projects; it will then administer loans on behalf of the Commonwealth with the right expertise.
The provisions of the bill were examined in an inquiry by the Senate Rural and Regional Affairs and Transport Legislation Committee. The committee recommended that the bill be passed and considered that its enactment would streamline the delivery of concessional loans for farm businesses and for water infrastructure. Obviously, the government welcomes that finding. Despite the committee's overall recommendation, I note that Labor senators provided a dissenting report, which raised a number of issues with the bill and the proposed establishment of the corporation. The policy rationale for establishing the corporation is quite clear. As for the governance and the oversight arrangements, they are appropriate for a corporate Commonwealth entity and align with what the parliament has agreed for similar entities, such as the Clean Energy Finance Corporation. I note that in addition to the requirements in the bill, the corporation will be subject to the requirements of the Public Governance, Performance and Accountability Act 2013, which forms an important part of the overall governance structure. In addition, the corporation will be subject to the usual Senate scrutiny process.
To conclude, establishing the corporation will make a significant contribution to stronger and more prosperous rural and regional communities across the whole of the country. Its loans will help farm businesses build and maintain diversity in the markets they supply. It will also help support the construction of priority water infrastructure to stimulate investment, economic growth and increase agricultural productivity in rural and regional Australia. Establishing the corporation demonstrates this government's commitment to the Australian farm sector.
~~Stephen Parry~~
~~The question is that the bill be now read a second time.~~