2002

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

INDUSTRY, TOURISM AND RESOURCES LEGISLATION AMENDMENT BILL 2002

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be moved on behalf of the Government

(Circulated by authority of the Minister for Industry, Tourism and Resources, the Honourable Ian Macfarlane MP)

AMENDMENT TO THE INDUSTRY, TOURISM AND RESOURCES LEGISLATION AMENDMENT BILL 2002

OUTLINE OF AMENDMENTS

The proposed amendments to the Industry, Tourism and Resources Legislation Amendment Bill 2002 makes a series of minor amendments to the Bounty (Ships) Act 1989.

Bounty (Ships) Act 1989 

The amendments to the Bill makes a minor change to the Shipbuilding Innovation Scheme (SIS) component of the Bounty (Ships) Act 1989 that will bring consistency between payments for both production and R&D bounties.  The amendments to the Act will enable progress payments against R&D expenditure.  The proposed amendments to the Bill also validate progress payments made prior to the introduction of these provisions.  Currently, the Act allows for progress payments on production bounties, but does not allow progress payments for R&D bounties. 

FINANCIAL IMPACT STATEMENT

The amendment will not have any financial impact on Commonwealth revenue or expenditure.

NOTES ON AMENDMENTS

Amendment 1 

1	Amendment 1 amends clause 2 of the Industry, Tourism and Resources Legislation Amendment Bill 2002, to insert a new table item (4A).  The amendment provides for the proposed amendments to the Shipbuilding Innovation Scheme to commence the day after the Act receives the Royal Assent. 

Amendment 2 

2	Amendment 2 amends Schedule 1 of the Industry, Tourism and Resources Legislation Amendment Bill 2002.  It adds the Bounty (Ships) Act 1989 to the list of Acts to be amended as set out in the Schedule.

Bounty (Ships) Act 1989.

Item 12A 	Subsection 12(1)
Item 12B	Subsection 12(2)
Item 12C	Subsection 12(2)
Item 12D	Subsection 12(3)
Item 12E	Subsection 12(3)

3	These amendments to subsection 12 (1), subsection (2) and subsection (3) of the Bounty (Ships) Act 1989, provide for progress payments of the R&D expenditure bounty. The amendments also provide for repayment to the Commonwealth in the event of overpayment. This will bring consistency in the treatment of payments between production and R&D bounties.

Item 12F 	Treatment of past payments purporting to be advances on account of eligible research and development expenditure bounty.

4	This item puts shipbuilders in the same position they would have been if past R&D expenditure progress payments had been made validly.