National Reconstruction Fund Corporation Bill 2023

The majority voted in favour of amendments introduced by South Australian Senator Don Farrell (Labor), which means they'll now be part of the bill.

What do these amendments do?

The Government also provided an explanatory memorandum to explain the amendments further:

These amendments to the Bill address issues discussed by the Committee and respond to stakeholder feedback received during the Committee’s inquiry process and debate on the Bill in the House of Representatives.

The key amendments to the Bill include:

• requiring the Corporation Board to have regard to certain matters in the exercise of its functions

• a requirement for the Corporation to have an environmental, labour, social and governance policy to inform the exercise of its investment functions and powers

• a condition that the CEO can only delegate their powers to senior staff members.

Amendment text

(1) Clause 5, page 4 (after line 16), after the definition of Australia , insert:

Australia’s greenhouse gas emissions reduction targets means:

(a) if:

(i) Australia’s current nationally determined contribution was communicated in accordance with Article 4 of the Paris Agreement in June 2022; and

(ii) that nationally determined contribution has not been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement;

the greenhouse gas emissions reduction targets set out in paragraphs 10(1)(a) and (b) of the Climate Change Act 2022 ; or

(b) in any other case—the greenhouse gas emissions reduction targets included in:

(i) Australia’s current nationally determined contribution communicated in accordance with Article 4 of the Paris Agreement; or

(ii) if that nationally determined contribution has been adjusted in accordance with paragraph 11 of Article 4 of the Paris Agreement—that nationally determined contribution, as adjusted and in force from time to time.

(2) Clause 17, page 15 (after line 16), after subclause (3), insert:

(3A) In performing its functions, the Board must have regard to:

(a) the desirability of transforming Australia’s industry and economy by:

(i) growing or improving Australia’s industrial capability; or

(ii) improving Australian industry’s ability to pursue value-adding opportunities; or

(iii) supporting a long-term improvement in Australia’s economic diversity; and

(b) the desirability of attracting private sector finance or investments into the priority areas of the Australian economy; and

(c) Australia’s greenhouse gas emissions reduction targets and the desirability of supporting decarbonisation; and

(d) the desirability of creating secure jobs and a skilled and adaptable workforce ; and

(e) the desirability of enhancing Australia’s resilience against supply chain vulnerabilities; and

(f) the desirability of encouraging the commercialisation of Australian innovation and technology.

(3) Clause 17, page 15 (line 24), omit “Subsection (4) does not”, substitute “Subsections (3A) and (4) do not”.

(4) Clause 75, page 46 (after line 25), after paragraph (1)(c), insert:

(ca) in the case of the Corporation—environmental, labour, social and governance matters to be considered by the Corporation in relation to:

(i) the Corporation’s investment functions; and

(ii) the Corporation’s investment powers;

(5) Clause 75, page 47 (after line 5), after paragraph (1)(f), insert:

(fa) in the case of a designated subsidiary of the Corporation—environmental, labour, social and governance matters to be considered by the designated subsidiary in relation to:

(i) the Corporation’s investment functions being performed through the designated subsidiary; and

(ii) the designated subsidiary’s investment powers;

(6) Clause 82, page 51 (line 8), omit “and”.

(7) Clause 90, page 56 (line 5), after “delegate to a”, insert “senior”.

(8) Clause 90, page 56 (line 10), after “function to a”, insert “senior”.