House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Schedule 2 - Amendment of the Australian Research Council Act 2001

Part 1 - Variation of financial assistance

Items 1 and 2

Have the effect of adding 2004 and 2005 to the years to which Division 1 of Part 7 of the Act applies. Division 1 deals with financial assistance for approved research programs.

Item 3

Repeals paragraphs 49(b) and (c) and inserts new paragraphs (b)-(e) to vary the level of financial assistance for approved research programs for the year 2002 to reflect a re-phasing of ARC programme funds from 2001 to 2002 and supplementation consistent with indexation arrangements, to vary the level of financial assistance for approved research programs for the year 2003 to reflect supplementation consistent with indexation arrangements and to provide financial assistance for approved research programs for the years 2004 and 2005, including additional funding provided in the Backing Australia's Ability policy.

Part 2 - Committees

The purpose of this Part is to enable the Australian Research Council Board to establish committees (other than those making funding recommendations under section 52) without Ministerial approval.

Item 4

Inserts a new definition of designated committee in section 4.

Items 5, 6, 8, 10, 12 and 13

Omit the words with the approval of the Minister from subsections 30(1), 30(2), 32(1), 32(5), 33(1), 33(2) and 33(4) of the Act which has the effect of giving the Board the power to establish or dissolve a committee under section 30, decide on the membership and Chair of the committee in accordance with section 32 and determine the terms and conditions of a committee member's appointment and terminate the appointment of a committee member under section 33, without the approval of the Minister. However, item 6 inserts new subsections 30(3) and (4) which have the effect of providing that the Minister must still approve the establishment or dissolution of a designated committee (i.e. a committee established under section 30 to assist in making funding recommendations under section 52).

Items 7 and 9

Makes consequential amendments to subsections 32(1) and 32 (5) to reflect the addition of proposed subsection 32(7) by item 11.

Item 11

Inserts a new subsection 32(7) which provides that the Board must not appoint a person as a member of a designated committee or designate a member of a designated committee as the Chair of the committee unless the Board has obtained the approval of the Minister.

Item 14

Inserts a new subsection 33(5) which provides that the Board must not make a determination under subsection 33(1) or (2) in relation to a member of a designated committee or terminate the appointment of a member of a designated committee, unless the Board has obtained the approval of the Minister.