Northern Australia Infrastructure Facility Bills Introduced in CTH and Referred to Committee

On 17 March 2016, the Northern Australia Infrastructure Facility Bill 2016 and the Northern Australia Infrastructure Facility (Consequential Amendments) Bill 2016 were introduced into the House of Representatives in Commonwealth. They were then subsequently referred to Committee on 17 March 2016.

Northern Australia Infrastructure Facility Bill 2016

According to the Explanatory Memorandum, the Northern Australia Infrastructure Facility Bill 2016 (the Bill) will establish the Northern Australia Infrastructure Facility (the Facility) to address gaps in the infrastructure financing market for northern Australia. The Bill will also establish a Board of the Facility (the Board) to make the investment decisions for the Facility.

The Facility was announced in the Government’s 2015-16 Budget. It is a major initiative of the Government’s White Paper on Developing Northern Australia (Our North, Our Future) and is integral to the Government’s strategy for developing the north. The Facility will provide up to $5.0 billion in concessional finance over five years to encourage and complement private and public sector investment in economic infrastructure that otherwise would not be built or would not be built for some time. The financial assistance will be delivered in partnership with State and Territory Governments. The Facility will operate in partnership with other financiers, filling key gaps in the infrastructure financing market for northern Australia by supplementing private lending for projects that produce significant benefits to the region. The Board will make investment decisions in accordance with the matters provided in the Investment Mandate to be issued by the Responsible Minister.

Major elements of the Bill include:

• Appropriation of $5 billion from the Consolidated Revenue Fund for the purposes of providing financial assistance for the construction of northern Australian economic infrastructure; 
• Establishing the Facility and outlining the functions it may undertake on behalf of the Commonwealth and States and Territories;
• Establishment of the Board, outlining the functions it will undertake on behalf of the Facility and the conduct required by its members. The Board will operate on a commercial basis and comprise of experts in a range of relevant fields such as banking, finance and infrastructure;
• Guidance on the matters to be set out in the Investment Mandate;
• Provision of limited powers of direction in relation to the Facility to the Responsible Minister. There will be strong transparency requirements for the use of these limited powers. The Minister does not have the power to direct the Facility to provide financial assistance for projects;
• Requirement for the appointment of a Chief Executive Officer to be responsible for day-to-day administration of the Facility;
• The employment of additional staff required to assist in fulfilling the objectives of the Facility;
• Permission for the Facility to charge fees that do not amount to taxation; and
• Requirement for the operation of the Facility to be reviewed following three years of operation of the Act.

Northern Australia Infrastructure Facility (Consequential Amendments) Bill 2016

According to the Explanatory Memorandum, The Northern Australia Infrastructure Facility (Consequential Amendments) Bill (the Bill) will amend the Export Finance and Insurance Corporation Act 1991 (Cth) to provide the Export Finance and Insurance Corporation (Efic) with the following functions:

• to assist the Northern Australia Infrastructure Facility (the Facility); and
• to assist, on agreement, the States and Territories.

These functions are in relation to grants of financial assistance and financial arrangements for the construction of northern Australia economic infrastructure. The Bill will also allow Efic to charge fees to the Facility and the States and Territories for the services it provides in performing its functions for the Facility and the States and Territories.

Referral of Both Bills to Committee

On 17 March 2016, both bills were referred to the Joint Select Committee on Northern Australia.  The terms of reference were to "inquire into and report on the Northern Australia Infrastucture Facility Bill 2016."

Deadline for submissions to the Committee is 31 March 2016.

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Northern Australia Infrastructure Facility Bill 2016 and Secondary materials as reproduced in TimeBase LawOne

Northern Australia Infrastructure Facility (Consequential Amendments) Bill 2016 and Secondary materials as reproduced in TimeBase LawOne

Committee Referral Page - Parliamentary Council