Emergency Response Fund Amendment (Disaster Ready Fund) Bill 2022

The majority voted against amendments introduced by South Australian Senator Barbara Pocock (Greens), which means they failed.

What did these amendments do?

During her second reading speech, Senator Pocock explained that the amendments were introduced:

... to increase the spending cap from $200 million to $300 million a year and to require the Future Fund in its management of the Disaster Ready Fund to ensure that the fund is not invested in fossil fuels. It's a rich irony which cannot be lost on so many Australians that the Disaster Ready Fund is invested in the very same coal, gas and oil companies whose activities are causing the climate emergencies that the fund has been set up to mitigate.

Amendment text

(1) Schedule 1, page 7 (after line 28), after item 26, insert:

26A Section 4

Insert:

fossil fuel financial asset means a financial asset that relates directly to:

(a) infrastructure that is intended to be used wholly or predominantly for extracting, processing (including refining), transporting or exporting coal, gas or oil; or

(b) a person that operates such infrastructure; or

(c) a related body corporate (within the meaning of the Corporations Act 2001) of a body corporate that operates such infrastructure.

(2) Schedule 1, item 105, page 20 (line 21), omit paragraph 34(1)(c), substitute:

(c) $300 million; or

(3) Schedule 1, page 23 (after line 4), after item 112, insert:

112A After section 36

Insert:

36A Prohibition on investing in fossil fuel financial assets

(1) The Future Fund Board must ensure that no investments of the Disaster Ready Fund are fossil fuel financial assets.

(2) Subsection (1) does not apply in relation to a financial asset to which section 9A (about transitioning investments of the Emergency Response Fund) applies.

(3) However, if a financial asset to which section 9A applies is a fossil fuel financial asset, the Future Fund Board must realise the financial asset as soon as practicable after the commencement of this section.

(4) This section has effect despite any other provision of this Act.