Chapter 1 - Introduction
Background to the bill
1.1
On 10 May 2007, the Parliamentary Secretary to the Minister for Foreign
Affairs and Trade, the Hon Gregory Hunt MP, introduced the Australian Centre
for International Agricultural Research Amendment Bill 2007 (the bill) in
the House of Representatives. On the same day, the Senate adopted the Selection
of Bills Committee report No. 8 of 2007 which recommended that the provisions
of the bill be referred to the Senate Foreign Affairs, Defence and Trade
Committee for inquiry and report by 12 June 2007.
Purpose of the bill
1.2
The Australian Centre for International Agricultural Research (ACIAR) is
responsible for assisting and encouraging agricultural researchers in Australia
to use their skills for the benefit of developing countries, while at the same
time working to solve Australia’s own agricultural problems.
1.3
ACIAR is a statutory authority within the Foreign Affairs and Trade
portfolio and is subject to the Public Service Act 1999 and the Financial
Management and Accountability Act 1997 (FMA Act).
1.4
The intention of the bill is to restructure ACIAR's existing governance
arrangements to reflect the executive management model recommended in the 2003 Review
of Corporate Governance of Statutory Authorities and Office Holders (the
Uhrig Review), which examined and reported on improving the structures and the
governance practices of Commonwealth statutory authorities.[1]
1.5
The bill revokes ACIAR's body corporate status on the basis that:
retention of the Centre as a legal personality separate from the
Commonwealth has been assessed as unnecessary given the Centre is budget
funded, is a prescribed agency under the [FMA Act] and does not have any need
to own assets in its own right.[2]
1.6
In addition, the bill creates the position of chief executive officer
(CEO) in place of the current director, making the CEO directly accountable to
the minister under the FMA Act. The bill abolishes the Board of Management and
establishes a Commission (including the CEO) to provide expert policy and research
advice to the minister. The current Policy Advisory Council (the Council),
which includes key overseas stakeholders, will be retained. The bill does not
allow dual membership of the commission and the Council.[3]
1.7
The bill includes transitional arrangements to ensure these governance
changes do not disrupt service delivery.[4]
The Hon Mr Hunt MP told the House:
The establishment of a commission and the position of CEO will
not alter the functions of ACIAR. ACIAR will retain its capacity for collective
decision making (through the new commission) while bringing its management
under the CEO. These changes are consistent with the executive management
template recommended by the Uhrig review.[5]
1.8
The changes are intended to improve governance and accountability in the
Australian Centre for International Agricultural Research.
Submissions
1.9
The committee advertised the inquiry in The Australian on Wednesday
16 May 2007, and on the committee's website. It also wrote to a number of
government agencies and organisations alerting them to the inquiry and calling
for submissions to be lodged preferably by 30 May. The committee received one
submission—a joint submission from the Department of Foreign Affairs and Trade
(DFAT), Australian Agency for International Development (AusAID) and the
Australian Centre for International Agricultural Research (ACIAR).
Acknowledgement
1.10
The committee thanks those who assisted with the inquiry.
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