Wednesday, 31 May 2023
Bills
Victorian Future Fund Bill 2023
Victorian Future Fund Bill 2023
Introduction and first reading
The PRESIDENT (17:45): I have a further message from the Assembly:
The Legislative Assembly presents for the agreement of the Legislative Council ‘A Bill for an Act to establish the Victorian Future Fund and set out the purposes for which money in the Victorian Future Fund may be used and to amend the Duties Act 2000 and for other purposes’.
That the bill be now read a first time.
Motion agreed to.
Read first time.
Ingrid STITT: I move, by leave:
That the second reading be taken forthwith.
Motion agreed to.
Statement of compatibility
Ingrid STITT (Western Metropolitan – Minister for Early Childhood and Pre-Prep, Minister for Environment) (17:46): I lay on the table a statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:
Opening paragraphs
In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006, (the Charter), I make this Statement of Compatibility with respect to the Victorian Future Fund Bill 2023.
In my opinion, the Victorian Future Fund Bill 2023, as introduced to the Legislative Council, is compatible with human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.
Overview
1. The purposes of the Bill are to establish the Victorian Future Fund as a statutory trust account within the Trust Fund under the Financial Management Act 1994.
2. The Bill also:
• amends the Duties Act 2000 so that the fund manager is a “qualified investor” under that Act;
• provides parameters for money to be credited to, and applied from, the Victorian Future Fund;
• sets out a framework for the administration of the Victorian Future Fund, including the appointment of a fund manager; and
• outlines auditing and reporting requirements that apply to the Victorian Future Fund.
Human Rights Issues
No Charter rights are impermissibly limited by the Bill.
Clause 10(1) of the Bill enables the Treasurer to appoint a person to manage the Victorian Future Fund.
Clause 11(2) of the Bill requires the fund manager to give the Minister or Secretary any information that the Minister or the Secretary reasonably requires to comply with reporting obligations in respect of the Victorian Future Fund.
Clause 12(2) of the Bill requires the fund manager to give the Treasurer or the person carrying out an audit any information that the Treasurer or person reasonably requires in carrying out the audit.
The Victorian Future Fund reporting obligations are set out under Clause 11(1) and include information on the Fund’s opening and closing balances, details of contributions made to the Fund, and details of payments made from the Fund in the financial year. As such, the information requested by the Minister or Secretary is unlikely to include any personal information.
Even if the fund manager is required to provide personal information in response to a request from the Minister, Secretary or Treasurer (for example, relating to its employees), in each case the request must be made reasonably (and not arbitrarily) and must be lawful in accordance with the Bill. Additionally, the fund manager and its employees would reasonably expect that some limited personal information would be requested by an auditor or otherwise recorded, and that they may be identified in publicly available documents, including in the Department’s report of operations.
Accordingly, no person’s privacy is either unlawfully or arbitrarily interfered with because of any of the provisions in the Bill. As such, in my opinion, the right to privacy in section 13 of the Charter is not limited.
The Hon. Jaclyn Symes
Attorney-General
Minister for Emergency Services
Second reading
That the bill be now read a second time.
Ordered that second-reading speech be incorporated into Hansard:
The Victorian Future Fund was announced in the 2022–23 Budget as part of the Government’s debt stabilisation strategy.
The purpose of the Fund is to help manage the fiscal impact of the COVID-19 pandemic and deliver positive outcomes for Victorians by reducing the debt burden on future generations.
Contributions to the Fund from the upfront proceeds received from the VicRoads Modernisation Joint Venture, and any additional contributions made to the Fund in the future, are invested to receive a financial return. Over the long term, this investment return is expected to exceed the State’s cost of borrowing, meaning it improves the State’s fiscal position more than simply paying down debt would.
This Bill seeks to establish the Victorian Future Fund as a Trust Account and clearly define its purpose, which is to provide funding for reducing the State’s debt.
The establishment of the Fund in legislation is an important step to providing certainty regarding the governance and purpose of the Fund, which will support the State’s credit rating agencies with assessing the impact of the Fund for credit rating purposes. Legislating the Fund is also aligned with the practice of equivalent funds in New South Wales and Queensland.
I commend the Bill to the house.
Georgie CROZIER (Southern Metropolitan) (17:46): I move, on behalf of my colleague Dr Bach:
That debate on this bill be adjourned for one week.
Motion agreed to and debate adjourned for one week.