Bill
Export Finance and Insurance Corporation Amendment (Support for Commonwealth Entities) Bill 2017
passed, as at 2017-09-14. Foreign Affairs and Trade portfolio.
- Sponsor
- Not recorded
- Portfolio
- Foreign Affairs and Trade
Recorded stages
- introduced — 2016-11-09
- second reading — 2016-11-09
- second reading — 2017-06-22
- second reading — 2017-06-22
- committee — 2017-06-22
- third reading — 2017-06-22
- introduced — 2017-08-08
- second reading — 2017-08-08
- second reading — 2017-09-06
- second reading — 2017-09-06
- committee — 2017-09-06
- third reading — 2017-09-06
- other — 2017-09-06
- passed — 2017-09-06
- royal assent — 2017-09-14
Divisions
- Export Finance and Insurance Corporation Amendment (Support for Commonwealth Entities) Bill 2016 - Third Reading - Suspend the usual procedural rules — 2017-06-22, House of Representatives: affirmative, ayes 73, noes 59
- The majority voted in favour of agreeing with the bill's main idea. In parliamentary jargon, they voted to read the bill for a second time. This means that they can now consider it in greater detail. ### What is the bill's main idea? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1617a/17bd089) (a document that is prepared by the parliamentary library): > *The purpose of the Export Finance and Insurance Corporation Amendment (Support for Commonwealth Entities) Bill 2016 (Cth) (the Bill) is to amend the Export Finance and Insurance Corporation Act 1991 (Cth) (the Act). The Bill has two main purposes:* > > * *to permit the Export Finance and Insurance Corporation (EFIC) to assist government bodies by providing services in relation to financial arrangements and agreements* > > * *to amend the definition of ‘eligible export transactions’.* — 2017-09-06, Senate: affirmative, ayes 45, noes 9
- Export Finance and Insurance Corporation Amendment (Support for Commonwealth Entities) Bill 2017 - in Committee - Fossil fuels — 2017-09-06, Senate: negative, ayes 7, noes 37
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2017-09-06.47.1) introduced by South Australian Senator [Sarah Hanson-Young](https://theyvoteforyou.org.au/people/senate/sa/sarah_hanson-young) (Greens), which means it failed. ### What did this amendment do? Senator Hanson-Young [explained that](https://www.openaustralia.org.au/senate/?gid=2017-09-06.47.1): > *I just want to reiterate that this bill is asking the parliament to endorse expanding the powers, responsibilities and role of Efic [i.e., the Export Finance and Insurance Corporation]; meanwhile, we know that there are big questions over Efic's ability to be straight and up-front with the parliament and the Australian people about the projects that it has already been funding and supporting ...* > > *This amendment injects necessary transparency into this process. If we're going to have an expanded role then the public, the parliament and the taxpayers need to know what Efic is doing, what types of projects it is funding and how it is operating.* ### Amendment text > *(1) Schedule 1, page 5 (after line 19), at the end of the Schedule, add:* > >> *Freedom of Information Act 1982* >> >> *8 Division 1 of Part II of Schedule 2* >> >> *Omit "Export Finance and Insurance Corporation, in relation to documents concerning anything done by it under Part 4 or 5 of the Export Finance and Insurance Corporation Act 1991".* — 2017-09-06, Senate: negative, ayes 12, noes 31
- The majority voted in favour of passing the bill. In parliamentary jargon, they voted to read it for a third time. This means it has passed in the Senate and will now be sent back to the House of Representatives, where our MPs will consider whether they agree with the Senate amendments. If so, the bill will become law. ### What does this bill do? According to the [bills digest](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd1617a/17bd089), the purpose of the bill was: > * *to permit the Export Finance and Insurance Corporation (EFIC) to assist government bodies by providing services in relation to financial arrangements and agreements* > > * *to amend the definition of ‘eligible export transactions’.* — 2017-09-06, Senate: affirmative, ayes 33, noes 13
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2016-11-09.
This bill broadens the Export Finance and Insurance Corporation's role so it can sell its financial know-how to other government bodies and firms for a fee, pending the trade minister's sign-off.
It also widens the range of Australian small and medium enterprises that can get Efic backing by adding new categories of eligible export deals and requiring a written promise that overseas investment support will add jobs at home.
The bill is estimated to cut up to $12,000 per application for SME exporters because Efic could offer a direct loan instead of only a guarantee.
- Efic would be allowed to help run and manage Commonwealth financing programs, even when exports are not involved, but it would not lend or guarantee funds for those programs.
- The definition of an eligible export transaction would grow to include tourism operators, online sellers, exporters of intellectual property and related rights, and firms investing directly overseas.
- Businesses seeking support for overseas direct investment would have to certify in writing that they reasonably believe the support will lead to a net rise in Australian employment.
- Efic would be required to charge a fee for its assistance, set so it does not amount to a tax.
Commonwealth departments and agencies, Australian small and medium-sized enterprises, and businesses that invest overseas or export services such as tourism, online sales, or intellectual property.
Sources
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