The Coalition supports the intent of the Emergency Response Fund Amendment (Disaster Ready Fund) Bill 2022 (the bill). However, the transparency and integrity of the bill is fundamentally important, and it is the Coalition’s view that these aspects can be improved with two key amendments.
First, the Coalition notes that many submissions expressed concern at a lack of transparency in allocating funds, and where advice should be sought to ensure funds are directed for maximum impact in areas of high risk.
The Committee heard from several witnesses concerns about how the funds would be distributed or prioritised. The Coalition shares those concerns and believes a panel should be established, including stakeholders from the insurance industry and Local Government to consult on and develop guidelines which should be made publicly available as soon as possible.
To that end, the Coalition recommends that guidelines be published that set out relevant eligibility criteria and assessment criteria including wide consultation with key stakeholders on the allocation of funding from the Disaster Ready Fund.
Second, the Coalition will seek to amend the legislation to require information to be released to the Parliament to ensure the Disaster Ready Fund is not inhibited from performing its functions when there are changes to the drawdown levels of the Fund via a disallowable legislative instrument.
The Coalition notes the Minister's advice provided to the Scrutiny of Bills Committee, that the explanatory materials accompanying a legislative instrument which adjusts the maximum disbursement amount that may be debited from the Disaster Ready Fund Special Account will include the reasons for the adjustment.
Further, the Minister advised the Scrutiny of Bills Committee that it is not necessary to amend the bill to require the Future Fund Board's advice to be tabled in the Parliament.
The Coalition does not agree with the Minister’s response.
The Coalition also notes the advice from a question on notice from the Future Fund Management Agency that:
There’s nothing in the Future Fund’s processes that would inhibit the Future Fund Board of Guardians’ advice on a potential change to the disbursement amount being released.
In addition, to enhance the Parliament's scrutiny of such instruments, the Scrutiny of Bills Committee requested that the Minister undertake to include, at a high-level, information about the following matters in the explanatory statement for an instrument made under proposed subsections 34(2) and (3):
an overview of the responsible Ministers' consultation with the Minister for Emergency Management;
a summary of the Future Fund Board's advice with any sensitive information removed;
how the Future Fund Board's advice was taken into account;
if the responsible Ministers depart from the Future Fund Board's advice, the reasons for this; and
other relevant factors considered.
The Coalition supports the Scrutiny of Bills Committee’s concerns as to a current lack of requirement for the advice given by the Future Fund Board of Guardians to be tabled. The Coalition will therefore seek to amend the bill to require the advice of the Future Fund Board of Guardians to be tabled with the adjustment instrument in full.
Finally, while supporting the 5-yearly reviews of the maximum annual disbursement as outlined in the bill, the Coalition remains concerned about giving the Minister the ability to adjust the maximum annual disbursement via a disallowable legislative instrument. However, the Coalition will not move amendments in that regard.
Recommendation
Guidelines be published that set out relevant eligibility criteria and assessment criteria including wide consultation with key stakeholders on the allocation of funding from the Disaster Ready Fund.
Recommendation
Division 1 Part 5 of the bill be amended to require the full advice of the Future Fund Board to be tabled with the legislative instrument that adjusts the maximum annual disbursement.
Senator the Hon Richard Colbeck
Deputy Chair
Liberal Senator for Tasmania
Senator the Hon James McGrath
Liberal National Senator for Queensland
Senator Perin Davey
Nationals Senator for New South Wales