Senate

Judiciary Amendment Bill 2015

Second Reading Speech

Senator Fifield (Manager of Government Business in the Senate and Assistant Minister for Social Services)

I table the explanatory memorandum relating to the bill and move:

That this bill be now read a second time.
I seek leave to have the second reading speech incorporated in Hansard.
Leave granted.

The speech read as follows-

The Judiciary Amendment Bill will support the consolidation of the Australian Government Solicitor (AGS) into the Attorney-General's Department.

The decision to consolidate AGS into the Department

The decision to consolidate AGS into the Department was announced in the 2014-15 Mid-Year Economic and Fiscal Outlook as part of the Government's Smaller Government Reform Agenda. This is a comprehensive package of reforms designed to improve the efficiency, effectiveness and focus of the Commonwealth public service. When fully implemented, they will reduce the number of government bodies by 251 since the last election. Our efforts to deliver a smaller and more rational government footprint will ensure a more flexible and unified public sector which is better able to respond to emerging pressures and ensure that services are best aligned to the evolving policy priorities of the Government.

The consolidation of AGS into the Attorney-General's Department will create opportunities for greater efficiency in the operation of the consolidated department. But the Government wants to make clear that AGS will maintain its own distinct functional identity within the Department, including the AGS name and its well-regarded independent brand. Its well-deserved professional reputation will be maintained. This will allow AGS to continue to operate effectively on a business as usual basis for its staff and its clients, and with the necessary level of professional independence within the Department.

Consolidation draws on the best aspects of both AGS and the Attorney-General's Department

It is of critical importance that the Government has a strong and expert government solicitor. The decision the government has made is to consolidate the AGS within the Attorney-General's Department, not to abolish it. AGS will continue to be the nation's leading provider of legal services to the federal government and its agencies. In fact, AGS and the Department have operated as one organisation in all but 15 of AGS's 110 years of operation

AGS lawyers have a special understanding of the context in which the Commonwealth operates - and that the government needs tailored advice and practical solutions. These can be a legal solution, a policy solution or some combination of both. They consider issues from a whole-of-government perspective and take into account broader public policy goals.

The Attorney-General's Department will continue to carry out the central policy and coordinating functions of the Attorney-General's portfolio, with one of its key roles being to provide legal and legal policy advice to the Attorney-General as First Law Officer of the Commonwealth and chief legal adviser to Cabinet. It draws on highly-qualified legal policy experts and legal practitioners with experience in dealing with a range of high priority, sensitive and time critical matters.

Consolidating the AGS into the Department will strengthen their respective capacities to support the Attorney-General as First Law Officer and chief legal adviser to Cabinet by providing a comprehensive source of authoritative advice on key Commonwealth legal and legal policy issues. It will also ensure that the Department and AGS are well-placed to deliver high quality legal services and legal policy advice on legal issues of importance to the Commonwealth and the most critical matters of state.

Secretary's Review

Following consolidation, the Secretary of the Department will conduct a review of legal services to identify efficiencies that can be gained in government legal costs. The review will encompass the role of in-house legal practices in Commonwealth departments and agencies, including how in-house advice is organised, to ensure more coordinated and aligned advice to the Government in the future.

The review will look to the Commonwealth legal services market as a whole and ultimately seek to deliver the best outcomes for the Government from the full array of legal services available.

The terms of reference for this review are yet to be developed, and both Government and private sector stakeholders will be invited to participate in the consultation process for the review. Any savings from the consolidation will also be quantified following this review.

Key features of the Bill

Schedule 1 to the Bill will amend the Judiciary Act to support consolidation.

Schedule 1 repeals references to AGS being a statutory corporation and its responsibilities as a separate corporate entity.

Instead, the Australian Government Solicitor will be a senior public servant within the Attorney-General's Department and will oversee a separate legal practice group and report to the Secretary of the Attorney-General's Department. The definition of AGS lawyers is updated to reflect that they will be employed under the Public Service Act 1999 framework working under the direction and supervision of the Australian Government Solicitor.

Consistent with ensuring business as usual and providing minimal change to existing operations, amendments have been made to enable the AGS to continue providing the same legal services to the same range of clients, and to continue to operate on a commercial and competitive basis for the great majority of its work.

Schedule 2 to the Bill makes the necessary consequential amendments to existing Commonwealth legislation with references to the AGS.

This includes amendments to the Director of Public Prosecutions Act 1983 to ensure that the AGS can continue to perform and exercise the Director's functions when requested pursuant to the existing DPP legislation.

Amendments to the Freedom of Information Act 1982 will ensure that AGS continues to be exempt from its operation. This ensures the confidentiality of AGS' legal advice and its relationship with its clients continues to be protected.

Schedule 3 provides transitional arrangements regarding the consolidation. The purpose of Schedule 3 is to ensure certainty and efficiency for existing AGS staff, clients and third parties that regularly engage with AGS.

Transitional matters addressed by the Bill include:

assets and liabilities of the former AGS
references in instruments to the former AGS
legal proceedings of the AGS
contracts which were entered into by the AGS
exemption from State and Territory taxation
reporting requirements of the AGS, and
employee arrangements of the AGS.

The Schedule includes a general deeming provision to ensure that references in existing Commonwealth laws to AGS are taken to be references to the AGS under its new structure.

Finally, there is also a time limited transitional rule making power to enable a legislative instrument to be made to address unforeseen circumstances or unintended consequences arising from the consolidation within the year following commencement of the Bill.

Conclusion

AGS and the Attorney-General's Department enjoy a very close, productive and professional working relationship and have done so for many years. As I observed earlier, AGS and the Department have operated as one organisation in all but 15 of AGS's 110 years of operation. It has also been said that AGS is the custodian of the Commonwealth's legal corporate memory. This continuity is critical to providing trusted and relevant advice to the Commonwealth on critical issues for the Commonwealth.

Consolidation will only enhance this relationship-a relationship exemplified by the cooperation between AGS and the Department on significant matters such as Operation Sovereign Borders, the Royal Commissions and high priority, sensitive and time critical matters in constitutional law, national security law and public international law.

The Judiciary Amendment Bill will further improve the efficiency and effectiveness of a consolidated AGS in the Department, while at the same time bringing together some of the brightest legal minds in this country, improving the provision of Commonwealth legal services and streamlining the administration of law in Australia.

Debate adjourned.


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