Explanatory Memorandum
(Circulated by authority of the Minister for Education, Training and Youth Affairs, the Honourable Dr David Kemp MP)
Outline
The Australian Research Council (Consequential and Transitional Provisions) Bill 2000 will implement a number of initiatives announced in the Governments 1999 policy statement Knowledge and Innovation: A policy statement on research and research training.
The amendments to the Higher Education Funding Act 1988 (HEFA) deal with the introduction of the two performance-based block funding schemes outlined in Knowledge and Innovation, as well as the introduction of a quality assurance framework for higher education research. These schemes, the Institutional Grants Scheme and the Research Training Scheme have been formed from the consolidation of assistance previously made available through grants for expenditure for operating purposes (allocated under section 15 of HEFA) and special research assistance (section 23 of HEFA).
As outlined in Knowledge and Innovation, access to the block funded schemes will be limited to those institutions that are listed on the Australian Qualifications Framework and that submit an acceptable research and research training management plan. This Bill incorporates these requirements into the conditions of funding for special research assistance (section 23).
The Bill also repeals the Employment, Education and Training Act 1988, as well as outlines the transitional arrangements arising from the repeal of that Act and the commencement of the Australian Research Council Act 2000.
Financial impact
In accordance with the changes to the Commonwealths funding framework for research funding, this Bill transfers funds from the funds for operating purposes under HEFA (section 15) to special research assistance (section 23). The amendment also takes into account that funds previously allocated under special research assistance will be appropriated under the Australian Research Council Act 2000 from 2001 and that $3,500,000 of year 2000 funding under paragraph 23C(2)(h) of HEFA is to be made available for appropriation in 2001 under the Australian Research Council Act 2000.
When both the Australian Research Council Bill 2000 and this Bill are taken into account, there is no net financial impact.
Notes on clauses
This clause provides for this Act to be cited as the Australian Research Council (Consequential and Transitional Provisions) Act 2000.
This clause provides for this Act to commence on the same day as the Australian Research Council Act 2000. It is intended that that Act commence on 1 January 2001.
Clause 3 provides that each Act that is specified in a Schedule is amended or repealed as set out in the applicable Schedule.
Schedule 1 - repeals and amendments
Employment, Education and Training Act 1988
This item repeals the Employment, Education and Training Act 1988. The Australian Research Council will now be constituted under the Australian Research Council Act 2000.
Higher Education Funding Act 1988
This item reduces the maximum grants available for 2001 under this section. This reflects the transfer of funds that were previously allocated under section 15 Grants for expenditure for operating purposes that will now be allocated under section 23 Special research assistance.
This item reduces the maximum grants available for 2002 under this section. This reflects the transfer of funds that were previously allocated under section 15 Grants for expenditure for operating purposes that will now be allocated under section 23 Special research assistance.
Item 4 - After subsection 23(1A)
This item inserts the new requirements for special research assistance, namely that there is an approved research and research training management plan for the institution for that year, and that the institution is an accredited higher education institution or body.
The research and research training management plan is part of the quality assurance framework that was outlined in Knowledge and Innovation. This plan must be in writing. It is envisaged that the plans will contain a comprehensive overview of the institutions approach to managing its research and research training activities; its areas of research strength; past research and research training performance; and the performance targets to which the institution aspires and the strategies to be adopted to achieve those targets.
The item enables the Minister to approve the institution or bodys research and research training management plan.
The item also defines an accredited higher education institution or body as one that is listed on both the Australian Qualification Framework Register of Authorities empowered by Government to Accredit Post-Compulsory Education and Training Courses and the Australian Qualifications Framework Register of Bodies with Authority to Issue Qualifications. Each state and territory government has specific requirements that must be met before an institution can be included in these registers.
The item also enables the Minister to determine the requirements for a research and research training management plan to be declared acceptable and for any other requirements to be satisfied for an institution or body to be an accredited higher education institute or body. Any determination made under this item will be a disallowable instrument.
This item reduces the amount of funding provided under paragraph 23C(2)(h) for 2000 to facilitate a carryover of the funds to 2001. Funding previously available under this section is to be appropriated under the Australian Research Council Act 2000.
This item increases the maximum funding available under this section for 2001. This takes into account both the transfer of funds from section 17(m) (under item 1) and that funding previously available under this section is to be appropriated under the Australian Research Council Act 2000.
This item increases the maximum funding available under this section for 2002. This takes into account both the transfer of funds from section 17(n) (under item 2) and that funding previously available under this section is to be appropriated under the Australian Research Council Act 2000.
Item 7 - At the end of paragraph 110(b)
This item provides for a determination made by the Minister under the new subsection 23(1E) to be a disallowable instrument. This reflects amendments to the old HEF Act as set out in item 4.
Schedule 2 - transitional provisions
It should be noted that there are no express provisions that cover the transitional arrangements for the staff of the old ARC and that of the new ARC. It is expected that the transfer of staff from the Department of Education, Training and Youth Affairs to the new Australian Research Council will involve the process outlined in the Public Service Regulations 1999 concerning the transfer of employees between APS agencies. As provided for in the Australian Research Council Bill 2000, employees of the ARC will be engaged under the Public Service Act 1999.
This item defines the terms that are used in this schedule.
Item 2 - Matters referred to old ARC by Minister
This item provides for the resolution of any matters that the Minister referred to the old ARC for policy advice that had not yet been presented to the Minister before the commencement of the new Act. The new ARC will have to respond to that request as if it had been made under the new Act.
Item 3 - Continued effect of Ministerial directions and guidelines
This item provides for the continuation of any direction or guideline in force under subsection 29(1) of the old EET Act to have effect as a direction or guideline under the new Act after commencement.
Item 4 - Continued effect of funding approvals given in relation to old ARC-administered schemes
This item provides for the approval of funding grants for research programmes administered by the ARC under the old HEF Act to be considered as an approval that has been made under and in accordance with the requirements of the new ARC Act. This is intended to ensure continuity of funding for current research grants that were approved until the commencement of the new Act.
Item 5 - Continued effect of funding recommendations made in relation to old ARC- administered schemes
This item ensures that any recommendation for funding, that is still under consideration by the Minister at the time of the commencement of the new Act, will be considered under the same rules and requirements that were in force when the ARC made its recommendation to the Minister. This is to ensure that a recommendation for funding cannot be rejected on the grounds that the rules governing allocation of financial assistance had changed.
If such a grant is approved for funding by the Minister after the commencement of the Act, it will have the same effect as an approval made under and in accordance with the requirements of the new Act.
Item 6 - Funding rules for 2001
This item enables any guidelines approved by the Minister, in relation to schemes administered by the old ARC for the year 2001 or later years that were in force immediately before commencement, to be considered as if they were funding rules under the new Act.
Item 7 - Funding split determination for 2001
This item enables the Minister to fulfil the obligation in the new Act to determine the proportion of funding to be allocated for each category of research, to be made as soon as practicable after the start of the year. This is because the commencement date of the new Act will not be until, at the earliest, 1 January 2001.
Item 8 - Final Report on operations of old ARC
This item requires the new ARC to include in its Annual Report for the year 2000-01, a report on the operations of the old ARC for the period 1 July 2000 until the commencement of the new Act. The Annual Report must include any information that was required under subsections 30(1) and (2) of the old EET Act.
Item 9 - References in other Commonwealth laws to kinds of institution defined in the old EET Act
This item provides for any definitions and provisions contained in Part 1 of the old EET Act to continue in force after the commencement for the purposes of those laws of the Commonwealth that refer to these definitions. These institutions include a definition of school, higher education institution and technical and further education institution.