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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