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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-09-09 Daily Xml
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HARBORS AND NAVIGATION (MISCELLANEOUS) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 8 September 2009. Page 3066.)

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (18:09): I thank the honourable member for his contribution to the second reading debate on this most important bill and look forward to the committee stage.

Bill read a second time.

Committee Stage

In committee.

Clause 1.

The Hon. G.E. GAGO: In my zealous eagerness to proceed with this bill, some questions were raised during the second reading that I would like to put on record at this stage. In relation to some of the issues raised, on the matter of recreational fishing, it is acknowledged that the recreational fishing industry brings in a significant amount of money via tourism and activities in regional and rural South Australia. Since its introduction in 1996, the recreational boating facility levy has significantly improved access for this activity. However, the funding of artificial reefs is not a matter for the harbours and navigation legislation nor the proposed Facilities Fund.

In relation to the Treasurer's role in the Facilities Fund and how the moneys are to be used, the Treasurer is responsible for the manner in which the fund is to be kept. This is to ensure that the fund is properly established and meets Auditor-General and public fund accountability requirements. It does not relate to how the funds are to be applied. This is a standard provision that is used in many cases where specific funds are established—for example, section 79 of the Aquaculture Act 2001 and section 24 of the Environment Protection Act 1993.

In relation to the investment of uncommitted funds, the Minister for Transport, with the approval of the Treasurer, may invest any funds not immediately required for the purpose of the fund. This is prudent and appropriate as the Treasurer is the financial authority of the state and approval is to ensure consistency and appropriateness of any investment strategy. As the Minister for Transport said in another place, it is an investment; it does not say you can spend it on anything you want. It says that you can invest it.

The ordinary meaning of investment is somewhere to put money in order to get more than that money back over time, which is why new section 90A(3)(a) of the bill provides that the fund is to consist of the facilities levies payable on the registration, inspection or survey of vessels; and (b) income from investment of money belongs to the fund. The intention of the bill is clear. Where an act establishes a fund, it generally also includes a power to invest with the approval of the Treasurer or any other authority established for the purpose of the fund such as a statutory board. Similar provisions are found in the Rail Transport Facilitation Fund Act 2001, the Aquaculture Act 2001 and Environment Protection Act 1993.

The Minister for Transport, and not the Treasurer, may apply the fund for establishing, maintaining and improving facilities for use in connection with vessels. The fund cannot be used for any other purpose. New section 90A(6) makes the application of funds clear. The question has been raised as to how the levy is to be applied to commercial vessels. As with recreational vessels where the levy is part of an annual registration fee, the levy on commercial vessels will be part of their survey fee. New section 90A(4) of the bill provides that payment of the levy is required before a vessel's registration or survey certificate can be issued.

New section 90A(6) of the bill also makes provision for the Facilities Fund to cover administration costs. As just mentioned, the payment of the levy is tied to the registration or survey of vessels and, as such, the levy is collected at the time of payment of the registration or survey fees and before the issue of a registration or survey certificate that enables a vessel to operate on state waters. Therefore, the cost of administering the levy would be small, as no new system or systems development is necessary.

The administrative costs will cover receiving and assessing applications for funding, executive assistance to the committee, meeting audit and financial accounting reporting requirements and reporting on expenditure.

With a levy to be applied to all facility users, it is reasonable that the expenses of the fund be covered by that fund. It is worth stressing again that both recreational and commercial sectors use marine facilities and this bill is about equity. Both sectors will pay the same levy rate which is calculated according to the size of the vessel.

The new structure of recreational boating fees was announced as part of the 2008-09 budget process. While this is not related to the bill, I will respond. The changed registration facilities levy fees started on 1 July 2008 and apply according to the length and type of vessel. The result was an increase of less than $20 for the registration of more than 80 per cent of the state's 55,000 recreational vessel registrations, these being boats of less than six metres in length. The additional revenue generated is to fund a range of marine safety and marine infrastructure initiatives across the state.

The new fees structure will raise almost $8 million over the next four years to fund a range of marine safety and infrastructure initiatives, including improved radio repeater stations and 24-hour, seven day VHF marine radio coverage across the state, upgrades to navigation aids statewide and replacement patrol vessels for compliance activity.

Lastly, I foreshadow that I will be moving a minor technical amendment to the schedule to correct a reference to the Harbors and Navigation Regulations 1994 and substituting the Harbors and Navigation Regulations 2009. The 1994 regulations expired and were replaced by the 2009 regulations on 1 September 2009.

Clause passed.

Remaining clauses (2 to 7) passed.

Schedule.

The Hon. G.E. GAGO: I move:

Page 3, lines 35 and 36—Delete part 14 Division 3 of the Harbors and Navigation Regulations 1994 and substitute:

Part 15 of the Harbors and Navigation Regulations 2009

Amendment carried; schedule as amended passed.

Bill reported with an amendment.

Third Reading

Bill read a third time and passed.

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