House of Representatives

Second Reading Speech

Mr Street (Corangamite - Minister for Foreign Affairs)(5.14) - I move:

That the Bill be now read a second time.

The purpose of this Bill is to amend in two respects the International Organizations (Privileges and Immunities) Act 1963 to enable Australia to meet certain treaty obligations. The first amendment, dealt with in clauses 2 to 5 of the Bill, is achieved by making individual amendments to a number of sections of the Act. The need for this amendment has arisen from the terms of an agreement which is to be concluded between Australia and the Commission for the Conservation of Antarctic Marine Living Resources, which we expect will set up its headquarters in Hobart in early 1982.

Under the Convention on the Conservation of Antarctic Marine Living Resources, which was concluded at a conference in Canberra in May 1980 and which Australia ratified on 6 May 1981, Australia agreed to accord the Commission and its staff certain privileges and immunities as required by international practice. International practice also requires that a person attending a conference convened by the Commission as a representative of a member country be accorded privileges and immunities. These privileges and immunities for both staff of the Commission and representatives of member countries can be accorded under the 1963 Act as it stands. In the case of the Convention, however, not only countries may become parties but also regional economic integration organisations, such as the European Communities, may accede once the Convention has entered into force. In addition, representatives of regional organisations and international organisations in which Australia participates might be invited to attend meetings in Australia of the organs set up under the Convention.

When the 1963 Act was drafted it was not contemplated that international organisations, as well as countries, would become members of other international organisations. It is necessary, therefore, to expand the power to make regulations under the Act so that representatives of international organisations attending the Commission's conferences in Australia may be accorded similar privileges and immunities to those accorded to the representatives of member countries. The Bill makes a number of amendments to the principal Act to achive this. In effect, every reference in the Act to representatives of countries will be extended to include a reference to representatives of certain prescribed international organisations.

The representatives of certain international organisations only will be eligible to be accorded privileges and immunities under the Bill. The international organisations are those of which Australia is a member and those which the Bill describes as 'overseas organisations' such as the European Communities, of which Australia cannot become a member because the organisations are composed of countries in a particular geographical region. For the Act to apply to an international organisation it must be so declared by regulations under the Act.

At the same time, the definition of 'international conference' is amended so that it will include not only a conference attended by representatives from Australia and representatives from another country, but also a conference attended by representatives from a prescribed international organisation. This will enable Australia in future to accord the appropriate privileges and immunities to those representatives.

The second amendment, dealt with in clause 6 of the Bill, will enable Australia to implement by regulation a taxation obligation under two specific agreements - one establishing the Common Fund for Commodities and the other establishing the Asian Development Bank. Those agreements provide, among other things, that foreign experts and committee members be accorddt exemption from Australian income tax when visiting or working in Australia. As the Act now stands, there is no provision in the Fifth Schedule which would enable regulations to be made to grant income tax exemption to persons in those categories. Clause 6 of the Bill will amend the Fifth Schedule of the Act to include such a provision.

If the Bill is passed, regulations will be made as soon as practicable to accord this exemption. I understand from the Treasurer (Mr Howard) that exemption will be extended under present taxation policy to experts and committee members involved in the work of an organisation only if the agreement establishing the organisation specifically permits Australia to tax Australian citizens working for that organisation, regardless of their employment status or location. This is the case with the Common Fund and the Asian Development Bank. This measure should not be significant in terms of revenue forgone. The exemption is likely to be available in respect of few organisations in the future and the total number of persons involved should be small. I commend the Bill to the House.