2010‑2011‑2012‑2013

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Export Finance and Insurance Corporation Amendment (Finance) Bill 2013

No.      , 2013

(Trade and Competitiveness)

A Bill for an Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedule(s)......................................................................................... 2

Schedule 1—Amendments                                                                                                3

Export Finance and Insurance Corporation Act 1991                                        3

A Bill for an Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Export Finance and Insurance Corporation Amendment (Finance) Act 2013.

2  Commencement

                   This Act commences on the day after this Act receives the Royal Assent.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Export Finance and Insurance Corporation Act 1991

1  Subsection 36(3)

Omit “(3)”.

2  Subsection 49(2)

Omit “(2)” (first occurring).

3  At the end of subsection 49(2) (before the note)

Add:

            ; and (d)  any direction by the Minister under subsection 55A(2) for the payment of a dividend by EFIC in the financial year to which the target relates.

4  Subsection 54(8)

Repeal the subsection, substitute:

             (8)  EFIC’s called capital at any time must not exceed:

                     (a)  $200,000,000; or

                     (b)  if a greater amount is specified in a legislative instrument made by the Minister—that greater amount.

5  Section 55 (heading)

Before “dividends”, insert “annual”.

6  After section 55

Insert:

55A  Payment of additional dividends to the Commonwealth

One‑off dividend

             (1)  EFIC must pay the Commonwealth a dividend of $200,000,000 before 30 June 2013.

Minister may direct payment of a specified dividend

             (2)  The Minister may, in writing, direct EFIC to pay the Commonwealth a specified dividend within a specified period.

             (3)  In giving a direction under subsection (2), the Minister must:

                     (a)  have regard to:

                              (i)  the policies of the Commonwealth Government; and

                             (ii)  the general policy of EFIC in relation to the performance of its functions; and

                            (iii)  such commercial considerations as the Minister considers appropriate; and

                     (b)  be satisfied that the specified dividend is reasonable having regard to:

                              (i)  the likely capital and reserves of EFIC at the time the direction is given; and

                             (ii)  the expected liabilities, losses and claims of and against EFIC at that time.

             (4)  Before the Minister gives a direction under subsection (2), the Minister must:

                     (a)  consult the Board about the matters referred to in subparagraphs (3)(a)(ii) and (b)(i) and (ii); and

                     (b)  obtain the agreement of the Prime Minister, Treasurer and Finance Minister to the direction.

             (5)  EFIC must comply with a direction given under subsection (2).