House of Representatives

Second Reading Speech

Mr Bruce Scott (Maranoa - Minister for Veterans' Affairs and Minister Assisting the Minister for Defence)

I move:

That the bill be now read a second time.

The Australian Defence Force reserves make a vital contribution to Australia's defence. Reserves constitute over 40 per cent of the Australian Defence Force and one-half of the Army's combat force. They provide the nation's mobilisation and expansion base. They are an essential link between the Defence Force and the Australian community.

The Defence Force relies on reserves for the effective conduct and sustainment of operations. This is highlighted by the significant contributions that reservists make to military operations. Thirteen officers and 200 other ranks served with the 6RAR group in East Timor, supported by 200 reservists on full-time service within Australia. 2,500 reservists supported the recent Olympic and Paralympic Games. Reservists currently serve in Bougainville and Butterworth and routinely support Defence Force operations overseas.

The legislation introduced today will see important changes to the Defence Act 1903, the Naval Defence Act 1910, the Air Force Act 1923 and the provisions of a new act to replace and repeal the current Defence (Re-establishment) Act 1965. The protection bill will protect and support reservists and their employers in their vital role in the defence of this nation.

The legislation will enable the call-out of reservists for peacekeeping, peace enforcement, humanitarian assistance, civil aid and disaster relief, as well as for warlike service and defence preparation. These historic changes will greatly enhance the contribution made by the reserves and will permit the Defence Force to operate in all circumstances as an integrated total force. We will have a more useable and effective reserve, making an important contribution to the generation, delivery and sustainment of defence capability.

The government does not intend to lightly or frequently call out the reserves. Call-out will be used only when it is necessary to draw on the particular capabilities and specialisations found in the reserves. The need for call-out changes has long been recognised and was identified in the government's public discussion paper, `Defence Review', in June 2000; by the report of the Joint Committee on Foreign Affairs, Defence and Trade into Australia's participation in peacekeeping, December 1994; and by the Ready Reserve review undertaken by Lieutenant General John Coates and Dr Hugh Smith in June 1995.

The need for a code of protection for reservists was also identified by the government in the public discussion paper, in the Defence white paper of 1994, in the JCFADT report into peacekeeping, and in the Standish report of 1988.

At present, there is some measure of employment protection provided by the re-establishment act. However, the re-establishment act is very outmoded and requires review.

Members of the reserves have competing civil interests that can impact on their availability for training and operational service. While the nature and precise level of protection will vary depending on the service being provided by the member, a reasonable level of protection should always be available.

The legislation introduced today will significantly enhance the job and education protection available to a reservist. Without such protection, reservists and their families might be very severely disadvantaged by reserve service. It will lead to much higher numbers of reservists volunteering to complete a tour of duty on full-time service in support of operations.

Under the new legislation, financial protections are to be made available to reservists after callout, while also safeguarding the interests of lenders and financiers. These protections include rescheduling of mortgage, loan and hire-purchase payments and interest; the postponement of execution, distress, and bankruptcy procedures; the restriction of partnership dissolutions; and, on completion of full-time service, provision of an entitlement for re-establishment loans.

The government fully acknowledges the vital contribution made by employers of reservists. In Australia's increasingly competitive economic climate, many employers who have been traditional supporters of the reserves find it difficult or inconvenient to release reservists for training or service. In recognition of this, the legislation will authorise the Minister for Defence to make determinations for the payment of compensation, incentives or benefits to employers, business and professional partners arising from a member's absence on defence service.

As with the re-establishment act, various forms of unacceptable conduct towards reservists will be prohibited under the protection act. It will be an offence to dismiss or discriminate or refuse to employ a person on the basis that they are a reservist. Whilst the proposed protection act will provide for enforcement in appropriate cases, it is expected that mediation and conciliation with employers in the vast majority of cases will resolve any problems.

Under the present legislation, the services are divided into permanent, emergency and reserve forces, which cause significant inefficiencies and a great deal of unnecessary administrative complexity. The present system is to be replaced by a unified reserve component in each service administered under a single system.

The legislation implements recommendations of the Joint Committee on Foreign Affairs, Defence and Trade report into the Australian Defence Force Reserves (1991) and the 1994 white paper that the structure and types of service available within the reserves be streamlined and standardised. Defence will undertake the necessary steps over the next twelve months to achieve this major revamping and upgrade of the existing reserve personnel management system.

The legislation contains a number of other important initiatives. Defence will be empowered to offer flexible packages of defence service to prospective recruits and re-enlistees. The new flexible personnel management system will assist recruiting and retention in the permanent forces and reserves and will ensure that the community gains the maximum possible benefit from the professional, highly trained members of the Defence Force.

After the passage of this legislation, the reserve of the future will be very different from the reserve that we have known in the past. It will be an important contributor to defence capability. It will be a relevant and credible component of Australia's total defence force. The two bills effect very important enhancements to the Australian Defence Force and particularly to its reserves. I commend the bills to the House and present the explanatory memoranda.

Debate (on motion by Mr Laurie Ferguson) adjourned.