Federal Register of Legislation - Australian Government

Primary content

Directions/Other as made
This instrument amends the Regional Investment Corporation Operating Mandate Direction 2018 to provide for an increase in part of the loan specifications for farm business concessional loans from $1 million in total to $2 million in total.
Administered by: Agriculture and Water Resources
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 03
Registered 14 Sep 2018
Tabling HistoryDate
Tabled HR18-Sep-2018
Tabled Senate19-Sep-2018
Date of repeal 05 Dec 2018
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003

EXPLANATORY STATEMENT

 

Issued by Authority of the Minister for Agriculture and Water Resources and the Minister for Finance and the Public Service

 

Regional Investment Corporation Act 2018

 

Regional Investment Corporation Operating Mandate (Amendment) Direction 2018

 

Legislative Authority

 

The Regional Investment Corporation Act 2018 (the Act) establishes the Regional Investment Corporation (the Corporation). The Corporation’s functions are set out in section 8 of the Act and include administering farm business loans.

 

Subsection 11(1) of the Act requires the responsible Ministers to give directions, by legislative instrument, to the Corporation about the performance of the Corporation’s functions.

 

On 6 June 2018, the responsible Ministers for the Corporation made the Regional Investment Corporation Operating Mandate Direction 2018 (the Operating Mandate Direction). The Operating Mandate Direction directs the Corporation in relation to the performance of the Corporation’s functions, including matters relating to the:

·         objectives the Corporation is to pursue in administering its programs,

·         expectations relating to the strategies and policies to be followed for the effective performance of the Corporation’s functions,

·         eligibility criteria for farm business loans and financial assistance to the States and Territories for water infrastructure projects, and

·         financial arrangements for the Corporation.

                 

Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make an instrument of a legislative character, it includes a power to amend such an instrument.

                                                                                           

Purpose

 

The purpose of the Regional Investment Corporation Operating Mandate (Amendment) Direction 2018 (Amendment Direction) is to amend the Operating Mandate Direction to provide for an increase in part of the loan specifications for farm business concessional loans from $1 million in total to $2 million in total.

 

The Amendment Direction also corrects typographical errors in the Operating Mandate Direction.

 

 

 

 

 

Background

 

On 19 August 2018, the government announced it was doubling the amount a farmer may borrow in concessional loans from $1 million to $2 million. This was one of a number of measures announced by the government to assist drought affected farmers.

 

Impact and Effect

 

The Amendment Direction allows the Corporation to offer loans up to a maximum of $2 million in total to farm businesses.

 

It also corrects typographical errors in Schedule 2, which sets out the policy objectives, eligibility requirements and mandatory assessment criteria of the water infrastructure loan facility.

 

Consultation

 

The Department of Agriculture and Water Resources consulted with the Australian Government Solicitor and the Department of Finance in drafting the Amendment Direction.

 

Details/Operation

 

Details of the Amendment Direction are set out in Attachment A.

 

The Amendment Direction is a legislative instrument for the purposes of the Legislation Act 2003.

 

The Amendment Direction is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A statement of compatibility is set out in Attachment B.


 

ATTACHMENT A

 

Details of the Regional Investment Corporation Operating Mandate (Amendment) Direction 2018

 

PART 1 - PRELIMINARY

 

Section 1 – Name of Instrument

 

This section provides that the name of the instrument is the Regional Investment Corporation Operating Mandate (Amendment) Direction 2018.

 

Section 2 – Authority

 

This section provides that this instrument is made under subsection 11(1) of the Regional Investment Corporation Act 2018.

 

Section 3 – Commencement

 

This section provides for the Amendment Direction to commence on the day after registration. The section includes a note that provides that section 42 of the Legislation Act 2003 (which deals with the disallowance of legislative instruments) applies to the instrument. The note refers the reader to section 11(4) of the Regional Investment Corporation Act 2018.

 

Section 4 – Schedule

 

This section provides that the Schedule amends the Regional Investment Corporation Operating Mandate Direction 2018.

 

SCHEDULE – AMENDMENTS

 

Regional Investment Corporation Operating Mandate Direction 2018

 

Item 1 – Schedule 1

 

This item omits the words “$1 million in total”, and substitutes the words “$2 million in total” under the heading “Loan specifications”, in Schedule 1 to the Operating Mandate Direction.

to provide that the maximum amount of an applicant’s farm business concessional loan or loans is the lesser of $2 million in total, or an amount that would result in the farm business having 50 per cent of its total funded debt in Commonwealth funded concessional loans. Previously, the provision specified that the maximum amount of an applicant’s farm business concessional loan or loans was $1 million in total, or an amount that would result in the farm business having 50 per cent of its total debt in Commonwealth funded concessional loans.

 

Item 2 – Schedule 2

 

This item corrects typographical errors in Schedule 2 to the Operating Mandate Direction. Under the heading “Mandatory assessment criteria”, this item omits all the paragraphs underneath the words “The Board must not recommend approving an application for a water infrastructure loan unless the following criteria are satisfied”, and substitutes these with the identical paragraphs that were contained underneath the heading “Mandatory assessment criteria” in Schedule 2 to the Operating Mandate Direction, except with the following typographical errors corrected.

 

The first typographical error was that in the list of paragraphs under the heading “Mandatory assessment criteria” there were two items listed as paragraph (a). The item corrects the list so that there are no duplications.  The second error was under paragraph (g), which was missing the word ‘a’ in the first sentence before the words ‘clear and credible plan’. The item corrects this by inserting the missing word ‘a’ in paragraph (g).


 

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Regional Investment Corporation Operating Mandate (Amendment) Direction 2018

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The purpose of this Legislative Instrument is to amend the Regional Investment Corporation Operating Mandate Direction 2018 to provide for an increase in part of the loan specifications for farm business concessional loans from $1 million in total to $2 million in total.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

The Hon. David Littleproud MP

Minister for Agriculture and Water Resources

 

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service