REPORT
Referral of the Bills
The Senate referred the Productivity Commission Bill 1996 and the Productivity
Commission (Repeals, Transitional and Consequential Amendments) Bill 1996
to the Economics Legislation Committee on 6 February 1997 for examination
and report by 24 March 1997. [1]
The Senate Selection of Bills Committee, when recommending the inquiry,
requested the Economics Legislation Committee examine the proposed `centralisation
of economic advice to the Government' within the Treasury portfolio and
also the `repeal of EPAC legislation which provides community membership.'
[2]
Origin of the Bills
The Prime Minister (Mr Howard) in his Headland Speech "A Competitive
Australia" [3] outlined the Coalition's
election commitment to merge the functions of the Industry Commission,
EPAC and the Bureau of Industry Economics to become a single entity, the
Productivity Commission.
Effects of the Bills
According to the Government's explanatory memoranda the Productivity
Commission Bill 1996:
- `establishes the Productivity Commission , which combines the
Industry Commission , the Economic Planning Advisory Commission (EPAC)
and the Bureau of Industry Economics. The Bill sets out the functions,
powers and policy guidelines of the Commission as well as its composition
and procedures.' [4]
and the Productivity Commission (Repeals, Transitional and Consequential
Amendments) Bill 1996;
- `provides for consequential matters arising from the formation
of the Productivity Commission as set out in the Productivity Commission
Act 1996. The Bill repeals the Industry Commission Act 1989 and the
Economic Planning Advisory Commission Act 1983 and makes transitional
provisions relating to these Acts. Consequential amendments are made
to; the Biological Control Act 1984;
the Bounty (Computers) Act 1984; the
Bounty (Machine Tools and Robots) Act 1985;
and the Development Allowance Authority Act 1992.
[5]
The Bills establish the following functions of the Productivity Commission:
hold inquiries and report about matters relating to industry and
productivity that are referred to it by the Minister;
provide secretariat services and research services to government
bodies, as directed by the Minister;
from 1 July 1997, receive and investigate complaints about the implementation
of competitive neutrality arrangements in relation to Commonwealth
government businesses and business activities, and to report to the
Minister on its investigations;
provide advice to the Minister about matters relating to industry
and productivity as requested by the Minister;
undertake on its own initiative research about matters relating
to industry and productivity; and
promote public understanding on matters relating to industry and productivity.
[6]
The Industry Commission has already issued draft reports in the name
of the Productivity Commission, the first being Stocktake of progress
in micro-economic reform.
Footnotes
[1] Journals of the Senate, No. 74,
6 February 1997.
[2] Selection of Bills Committee, Report
No. 1 of 1997, dated 6 February 1997, Appendix 5 and 6.
[3] A Competitive Australia, The Government's
role in generating the conditions to make Australia a better place to
do business and create jobs, Hon. John Howard MP, Leader of the
Opposition, July 1995.
[4] Costello, the Hon Peter, Productivity
Commission Bill 1996: Explanatory Memorandum, p 2.
[5] Costello, the Hon Peter, Productivity
Commission (Repeals, Transitional and Consequential Amendments) Bill
1996: Explanatory Memorandum, p 2.
[6] Productivity Commission Bill 1996, Hon.
Chris Miles MP, Parliamentary Secretary to the Prime Minister, Second
reading speech, 4 December 1996.