Chapter 1 - Introduction
Background to the bill
1.1
On 30 March
2006, the Minister for Trade, the Hon Mark Vaile MP, introduced the
Australian Trade Commission Legislation Amendment Bill 2006 (the Bill)
in the House of Representatives. On the same day, the Senate adopted the
Selection of Bills committee report No. 3 of 2006 which recommended that the
provisions of the bill be referred to the Senate Foreign Affairs, Defence and
Trade Legislation Committee for inquiry and
report by 2 May.
Purpose of the bill
1.2
The Australian Trade Commission (Austrade) is
responsible for assisting Australian firms develop export markets and
international business. The intention of the legislation is to move Austrade from
a statutory authority under the Commonwealth Authorities and Companies Act
1997 to a statutory agency which will be part of the Commonwealth and
subject to the Public Service Act 1999 and a prescribed agency under the
Financial Management and Accountability Act 1997.
1.3
Under the proposed changes, Austrade will cease to have
body corporate status, a CEO will be established to replace the board which is
to be abolished and staff of the newly structured Commission will be employed
under the Public Service Act. According to Explanatory Memorandum, the proposed
changes 'do not amend the functions or objectives of the Australian Trade
Commission, or service delivery to Australian business or the community'. The bill
includes transitional arrangements to ensure these governance changes do not
disrupt service delivery. The Minister told the House:
The changes are of an operational and enabling nature. The
amendments do not impact Austrade's functions, nor Austrade's delivery of
export promotion and facilitation services to Australian business. Austrade
will continue to be focused on assisting Australian businesses to enter and
develop export markets.[1]
1.4
These amendments are part of the government’s response
to the Review of the Corporate Governance of Statutory Authorities and Office
Holders, (the Uhrig Report) which examined and reported on improving the
structures and the governance practices of Commonwealth statutory authorities.
1.5
The changes are intended to improve governance and
accountability in the Australian Trade Commission.
Submissions
1.6
The committee advertised the inquiry in the Australian on Wednesday, 5 and 12 April 2006, and on the committee's
website. It also wrote to a number of government agencies, organisations and
individuals alerting them to the inquiry and calling for submissions to be
lodged preferably by 13 April. In particular, the committee made contact with a
number of people who had criticised the Uhrig report to determine whether any
of their initial concerns about the implementation of its recommendations
applied to Austrade. It also wrote to a number of organisations interested in
corporate governance to canvass their views on the provisions of the bill. The
committee received 5 submissions which are listed in Appendix 1.
Acknowledgement
1.7
The committee thanks those who assisted with the
inquiry.
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