Legislative Council Fifty-Fourth Parliament, First Session (54-1) 54 1 Parliament of South Australia Legislative Council published Bills South Australian Productivity Commission Bill South Australian Productivity Commission Bill South Australian Productivity Commission Bill Introduction and First Reading Introduction and First Reading Received from the House of Assembly and read a first time. Second Reading Second Reading The Hon. R.I. LUCAS Legislative Council Treasurer The Hon. R.I. LUCAS (Treasurer) (18:08): I move: That this bill be now read a second time. I seek leave to have the second reading explanation and detailed explanation of clauses inserted in Hansard without my reading it. Leave granted. The South Australian Productivity Commission Bill 2018 initiates a key economic reform and its introduction fulfils another major commitment in my government's 100-day plan. The Commission will play a vital role in generating jobs, investment and economic growth in South Australia. The functioning of this Commission will instil a high level of public confidence that the advice and recommendations it provides are based on rigorous analysis and political impartiality. That is why this bill establishes the Commission as an independent statutory body which will be fully and publicly accountable for the advice it provides and the actions it recommends. The Commission will deliver a very important function for South Australia by making recommendations to Government to remove existing regulatory barriers, and to directly support productivity growth, unlocking new economic opportunities and creating new jobs in our State. Productivity improvement is a key source of long-term economic growth, business competitiveness and real per capita income growth. It is an important determinant of living standards and wellbeing for all South Australians. For too long, South Australia's productivity growth has failed to keep pace with the rest of the developed world. Labour productivity has lagged as other jurisdictions have seen massive increases in private capital investment, as well as more effective investment in skills, education and training. Equally, our state has missed opportunities to grow multifactor productivity – something that, if continued, will drag on the growth of our prosperity in an increasingly digitally-enabled, services-based world. We are committed to bringing a new approach to government regulation and service provision. The Commission will be tasked with identifying unnecessary regulation for removal, and advising the government on ways to modernise and simplify regulation that has become outdated or which imposes unnecessary costs on South Australian businesses and families, allowing businesses to grow and create jobs and families to raise their living standards. It is the role of government to maximise the efficient use of taxpayer funds in the delivery of services and infrastructure. The Commission will identify opportunities to: improve the accessibility, efficiency and quality of services delivered or funded by government; facilitate structural change whilst minimising the hardships that may occur as a result of this change; and promote regional development, and development occurring in an ecologically sustainable way. These objectives will ensure the Commission works to improve the lot of all South Australians collectively, rather than particular economic sectors or individual groups. Importantly, the Commission will not serve as a Committee of Audit. This is not about reducing the quality of outcomes achieved by government spending, but rather, improving both quality and efficiency for every dollar spent. This bill requires the Commission to act transparently. A Notice of Inquiry setting out the terms of reference and opportunities for the public to provide submissions, will be made publicly available every time a matter is referred to the Commission for inquiry. The Commission's report on each inquiry it makes will be published on the Commission's website, including its recommendations for government action. Commissioners will be eminently qualified, by virtue of their knowledge and experience in industry, commerce, economics, law or public administration—bringing together the best available advice and expertise of our private and public sectors. We have many highly capable people engaged in developing public policy in this state; in the public sector, and in the parliament. However, it is important that we challenge our thinking as we go, to ensure that our assumptions and analysis are thoroughly tested and that we look for innovative approaches and solutions to problems that affect South Australians. This independent body of experts will make a valuable contribution in testing and extending the depth of thinking by government, improving the quality of outcomes delivered for South Australians. I am pleased to be able to introduce this bill in the government's first 100 days, as I committed to do before the election, and I look forward to support in both places for this important and necessary initiative. I commend the bill to members, table a copy of the explanation of clauses and encourage members to give this important legislation serious and favourable consideration. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement 3—Interpretation These clauses are formal. Part 2—South Australian Productivity Commission 4—South Australian Productivity Commission This clause establishes the South Australian Productivity Commission and gives it all the powers of a natural person. 5—Objects and functions of Commission Subclause (1) sets out the objects of the Commission, including to improve rates of economic growth and productivity and to improve South Australia's competitiveness. Subclause (2) provides for the Commissions functions, including to hold inquiries and report to and advise the Minister on a range of matters referred by the Minister. 6—Independence This clause states that except as provided, the Commission is not subject to Ministerial direction in the performance of its functions. 7—Commission may publish statements, reports and guidelines The proposed section enables the Commission to publish statements, reports and guidelines relating to the performance of its functions. 8—Membership of Commission The clause provides for the membership of the Commission constituted of a Commissioner appointed by the Governor as the Chair and at least 1 and not more than 4 additional Commissioners, full-time or part-time, as appointed by the Governor. 9—Commissioners The proposed section makes arrangements for Commissioners by setting out the terms of appointment of a Commissioner, the basis on which the office of a Commissioner becomes vacant and the circumstances in which a Commissioner is removed from office. 10—Acting Chair This clause provides for the appointment of an Acting Chair to act in the office of the Chair. 11—Staff The proposed section facilitates arrangements for staffing of the Commission by persons employed in the Public Service of the State and assigned to assist the Commission and by persons appointed by the Commission on terms and conditions determined by the Commission. 12—Consultants The proposed section states that the Commission may engage consultants on terms and conditions considered appropriate by the Commission. 13—Delegation This clause sets out a power for the Commission to delegate its functions or powers to a Commissioner or any person or body of persons that is, in the Commission's opinion, competent to perform or exercise the relevant functions or powers. 14—Conflict of interest This clause sets out the necessary processes that must be followed where there is a potential conflict between a direct or indirect interest of the Chair, an Acting Chair, a Commissioner or a delegate of the Commission that may conflict with the person's functions. 15—Meetings of Commission The proposed section sets out the procedures and processes for meetings of the Commission. 16—Common seal and execution of documents The proposed section provides for the execution of documents by (or with the authority of) the Commission and the use of the Commission's common seal. 17—Application of money received by Commission This clause provides for the receipt of fees or other amounts by the Commission to be paid into the Consolidated Account. 18—Annual performance plan and budget The proposed section sets out the requirement for the Commission to prepare and submit to the Minister a performance plan and budget for the next financial year or for some other period determined by the Minister. The plan must address the Commission's major projects, and its goals and priorities with respect to the full range of the Commission's functions, for the period to which the plan relates. 19—Accounts and audit This clause sets out the requirement for the Commission to maintain proper records of its accounts and provides for the auditing of the Commission's accounts by the Auditor-General. Part 3—Inquiries and reports 20—Minister may refer matter for inquiry This clause sets out the requirement for the Commission to inquire into any matter that the Minister, by written notice, refers to the Commission according to terms of reference set out in the Minister's notice. 21—Notice of inquiry This clause sets out the requirement for the Commission to give notice of an inquiry by publishing the notice on its website. The notice must specify the purpose of the inquiry, the period during which the inquiry is to be held, the period within which, and the form in which, members of the public may make submissions, including details of public hearings and the matters that the Commission would like submissions to deal with. 22—Conduct of inquiry The proposed section states that subject to any requirement or direction of the Minister under proposed Part 3, an inquiry may be conducted in such manner as the Commission considers appropriate and that the inquiry may (but need not) involve public hearings. 23—Reports This clause imposes a requirement on the Commission to deliver a copy of the Commission's final report on an inquiry to the Minister. Part 4—Miscellaneous 24—Annual report This clause imposes a requirement on the Commission to, within 3 months after the end of each financial year, deliver to the Minister a report on the administration of this Act during that financial year. The Minister must cause a copy of the report to be laid before both Houses of Parliament within 12 sitting days after receipt of the report. 25—Regulations The proposed section facilitates the making of regulations by the Governor for the purposes of the scheme. Debate adjourned on motion of Hon. I.K. Hunter.