OCCUPATIONAL LICENSING NATIONAL LAW (SOUTH AUSTRALIA) BILL

Second Reading

Second reading.

The Hon. J.M. RANKINE (Wright—Minister for Families and Communities, Minister for Housing, Minister for Ageing, Minister for Disability) (16:04): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

Licensing of occupations is predominately a State and Territory function and is conducted by a range of regulatory bodies in each State and Territory. For historical reasons, licensing systems have developed in different ways in each jurisdiction which means that approaches to licensing are not consistent. While the Commonwealth Mutual Recognition Act 1992 was introduced to improve the mobility of licensed individuals between jurisdictions, there are still a number of barriers which make this difficult. In addition, the Mutual Recognition Act does not apply to business licences. Licensees who want to move between jurisdictions must still apply for a licence, meet different non-skills requirements and pay a separate licence fee in each jurisdiction in which they wish to work. These arrangements are particularly onerous for individuals and businesses operating in multiple jurisdictions and for those working in border areas.

On 3 July 2008, the Council of Australian Governments (COAG) agreed to the development of a national trade licensing system in the context of its broader agenda for regulatory reform. COAG's objective in agreeing to establish a national licensing system is to remove overlapping and inconsistent regulation between jurisdictions in the way that they licence occupational areas. It is anticipated that the reforms will improve business efficiency, reduce red tape, improve labour mobility and enhance productivity. This will enhance consumer confidence and protection without imposing unnecessary costs on consumers and businesses or substantially lessening competition.

A national licensing system will make it easier for businesses and workers to operate across State and Territory borders, while continuing to provide the necessary protections for consumers and the community. For the first time, eligible licensees will be able to work across Australia without the need to hold multiple licences or pay multiple fees.

The Intergovernmental Agreement for a National Licensing System for Specified Occupations (IGA) was signed by all States and Territories at the April 2009 COAG meeting. The IGA provides for national licensing to apply initially in the following occupations agreed by COAG (with scope for expansion to other occupations if agreed at a later stage):

First wave occupations:

Air conditioning and refrigeration mechanics

Plumbers and Gas Fitters

Electricians

Property Agents (other than conveyancers and valuers)

Second wave occupations:

Land transport (passenger vehicle and dangerous goods only)

Maritime

Building

Conveyancers and valuers

It is intended that the first wave of occupations will transfer to the new system on 1 July 2012 with the remaining occupations to transfer from 1 July 2013. The IGA allows for the possibility of removing land transport and maritime occupations from the scheme in the event that they are included in other national licensing processes.

The IGA provides for the national licensing system to be established by the States and Territories through cooperative national legislation. It does not involve a referral of powers to the Commonwealth. The introduction of national legislation in a State or Territory Parliament for adoption by other participating States and Territories is a standard approach to implementing national schemes in areas, like licensing, where Constitutional powers rest with States and Territories, and not the Commonwealth.

The IGA states that Victoria will take the lead in passing the national licensing legislation ('the national law') and all other States and Territories (including South Australia) will pass legislation that makes the Victorian legislation become law in their jurisdiction. The national law was passed by the Victorian Parliament on 17 September 2010. The Occupational Licensing National Law (South Australia) Bill 2010 seeks to adopt the national law by applying the Occupational Licensing Law Act 2010 (Victoria) as law in South Australia.

Any changes to the national law once it has been enacted must also be agreed by the Ministerial Council responsible for overseeing the reform. During the implementation phase of the national system, this responsibility resides with the Ministerial Council for Federal Financial Relations.

The national law has been designed to provide the governance and high-level framework for the national scheme. The operational aspects of the scheme and industry-specific licensing rules and procedures are to be covered in regulations, which are currently being developed. This will enable informed and detailed analysis on the risks, needs and safety requirements for both licensees and consumers, before each occupational area becomes operational under the national law. As such, the Government will subsequently be introducing consequential amendments to South Australia's existing occupation-specific legislation for the first wave of occupations by early 2012, to allow for the industry-specific regulations under the national scheme. Occupation-specific legislation will still exist in South Australia to regulate areas that fall outside of the national scheme, for example, conduct matters.

Interim Advisory Committees have been established for all of the first wave occupations to provide advice on the development of licensing policy for specific occupational areas, which will lead to national regulations to be made under the national law. Each of the Interim Advisory Committees comprise of members with a balance of expertise relevant to an occupational area including union, employer, regulator and consumer representatives. The Committees are assisted in this task by working groups of relevant regulators. After the national law is operational the Interim Advisory Committees will be replaced by Occupational Licensing Advisory Committees as provided for in the national law.

The national law establishes a National Occupational Licensing Authority ('the Licensing Authority') which will be responsible for developing (on the advice of the Committees) national licence policy for each occupational area, including licence categories, scope and eligibility criteria.

The Licensing Authority will have its own governing body, the National Occupational Licensing Board. The functions and operations of the Licensing Authority and Board will be overseen by the Ministerial Council for Federal Financial Relations, which has a Ministerial representative from the Commonwealth and each state and territory. The Ministerial Council's role will be to provide broad policy direction and approve licence policy for the occupational areas that are included in the system.

While the Occupational Licensing Advisory Committees will be the principal source of advice on licence policy for occupational areas, the Licensing Authority must also consult with stakeholders in relevant occupational areas to ensure the National Occupational Licensing Board is able to provide authoritative advice to the Ministerial Council.

Under a 'delegated agency model', the Licensing Authority will delegate the enforcement and administration of the system to existing state and territory regulators. State and territory regulators will enter into service agreements with the national body to ensure that consistent performance and service delivery standards are achieved across jurisdictions. State and Territories will also continue to regulate all aspects of conduct.

The national law provides for national consistency in the approach to disciplinary proceedings by providing for the types of disciplinary proceedings that can be instigated, when such proceedings can occur, the disciplinary action that can be taken, and the processes that the Licensing Authority must follow. In South Australia, disciplinary proceedings will continue to be heard by the Courts, as is the current situation. The national law also provides for monitoring and enforcement powers for authorised officers.

In addition, the national law provides for the establishment of a national register which will allow members of the public to access information about licensees and verify that a particular individual or business is appropriately licensed.

This Bill represents an important step towards improving national licensing regimes–by establishing the framework for the national occupational licensing system. However until the national licensing system's implementation date of 1 July 2012 for the first wave of occupations, current state based legislation will continue to apply for the licensing of occupational areas.

Reward payments available under the National Partnership Agreement to Deliver a Seamless National Economy are at risk if South Australia does not meet key reform milestones, including enacting this Application Act by December 2010.

Introducing the national occupational licensing system is expected to provide improved safeguards for consumers, reduce red tape and deliver improved administrative efficiency and consistency by moving from the current fragmented jurisdiction licensing systems to one national system.

I commend the Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause sets out the short title for the measure.

2—Commencement

The measure will be brought into operation by proclamation.

3—Definitions

This clause provides for definition of terms used in the Bill. In addition, if a term is used in the measure and in the National Law, the term has the same meaning in this measure as it has in that Law.

Part 2—Adoption of National Law

4—Adoption of Occupational Licensing National Law

The National Law, as in force from time to time, applies as a law of the jurisdiction. The National Law is the Occupational Licensing National Law set out in the Schedule to the Occupational Licensing National Law Act 2010 of Victoria.

5—Exclusion of legislation of this jurisdiction

This clause provides that a number of Acts that generally apply to South Australian legislation do not apply to the Occupational Licensing National Law (South Australia) or instruments (including national regulations) made under that Law. Instead, a number of specific provisions have been included in the National Law to deal with these matters for national consistency.

6—Relevant tribunal or court

This clause provides for the declaration of the District Court and the Magistrates Court as a relevant court for the purposes of section 13 of the National Law and the District Court as the relevant court for the purposes of sections 58, 59, 60, 93 and 94 of the National Law.

7—Corresponding prior Acts

It is necessary to provide for certain matters in connection with the operation of section 21 of the National Law so that relevant disciplinary action taken before this Act applies to a particular occupation can be taken into account when assessing the eligibility of a person to be granted a licence under the National Law.

8—Disciplinary proceedings before court

This clause will apply the scheme under Part 3 Division 5 of the National Law in relation to disciplinary proceedings under the National Law. This scheme provides for disciplinary matters to be taken by means to an application to the District Court in its Administrative and Disciplinary Division. (The alternative, which is not to apply in South Australia, is a 'show cause' scheme where disciplinary action is ultimately taken by the Licensing Authority rather than a tribunal or court.)

Part 3—Miscellaneous

9—Penalty at end of provision

This clause makes it clear that a penalty provision at the foot of a provision indicates that a contravention of the provision constitutes an offence (punishable on conviction by a penalty not exceeding the specified penalty).

10—Parliamentary scrutiny of national regulations

This clause ensures that national regulations will be provided to the Legislative Review Committee for their inquiry and report.

11—Regulations—saving and transitional provisions

This clause provides for the making of regulations in relation to matters of a transitional nature consequent on the operation of this measure (including in the future when additional occupations become subject to the operation of the Act).

Debate adjourned on motion of Ms Chapman.