Bills Digest no. 95 2009–10
Australian Astronomical Observatory Bill
2009
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Australian Astronomical Observatory Bill
2009
Date introduced: 25 November 2009
House: House
of Representatives
Portfolio: Innovation, Industry, Science and Research
Commencement: The Act commences on 1 July 2010.
Links: The
relevant links to the Bill, Explanatory Memorandum and second
reading speech can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/.
When Bills have been passed they can be found at ComLaw, which is
at http://www.comlaw.gov.au/.
This Bill will establish the
Australian Astronomical Observatory (the observatory) within the
Department of Innovation, Industry, Science and Research (the
Department) and set up its associated governance arrangements,
including the creation of an Australian Astronomical Observatory
Advisory Committee (the advisory committee).
The Australian Astronomical Observatory Bill 2009 (the Bill) and
the Australian Astronomical Observatory (Transitional Provisions)
Bill 2009 is a package of Bills that will give effect to a 2005
supplementary agreement between the UK Government and the
Australian Government to wind up the Anglo-Australian Telescope
Board by mid-2010 and to vest sole ownership of the
Anglo-Australian Telescope, to be renamed the Australian
Astronomical Observatory (the observatory), in the Australian
Government.
The principal agreement between the UK Government and the
Australian Government was signed on 25 September 1969 ‘to
provide for the establishment and operation of a large optical
telescope’.[1]
The Anglo-Australian Telescope Agreement Act 1970
implemented that agreement in Australia. The Anglo-Australian
Telescope Board was established under the Act, with the
constitution of the Board and its functions being spelt out in the
principal agreement.
In 1970, the then Minister for Education and Science, Nigel
Bowen MP, commented:
In 1967, the United Kingdom and
Australian governments agreed to join together in the construction
and subsequent operation of a large optical telescope to be located
in Australia … The Australian National University’s
Observatory at Siding Spring Mountain near Coonabarabran was chosen
as the site for the instrument …
The arrangements arrived at between the two governments were
incorporated in a formal agreement which was signed on 25 September
1969. It provides for the establishment of an Anglo-Australian
Telescope Board to represent the two governments in the process of
construction and subsequent operation of the telescope. The
agreement contemplates the creation of that Board as a statutory
authority under legislation of this Parliament. The present Bill,
to which the text of the agreement is annexed, has been prepared
accordingly …
When the telescope has been completed access to it will be
shared equally by British and Australian astronomers, although
there will be provision for each party to make available a portion
of its time to other astronomers.[2]
In 2001, the UK Government advised the Australian Government
that it intended to end its involvement with the Anglo-Australian
Telescope due to science budget cuts in the UK.[3] In 2005, it was agreed that under
a supplementary agreement, the UK would continue its commitment but
at a reduced level. Ownership and responsibility for the
telescope and associated assets and liabilities would pass to
Australia on 1 July 2010.[4] At the time, the National Interest Analysis
observed:
The Supplementary Agreement is intended to provide for the
effective operation of the Anglo-Australian Telescope during the
transition period from full joint funding to sole Australian
ownership. It will allow Australia to maintain a higher level of
financial contribution if it decides to do so, and for the
[Anglo-Australian Telescope Board] to develop and access other
sources of funding. The Supplementary Agreement puts in place
operational arrangements to reflect the new financial arrangements
and termination date. Australian astronomers will have greater
access to observing time at the Anglo-Australian Observatory,
commensurate with Australia’s higher expected financial
contribution.
The extension of the Agreement will give Australia additional
time to determine its long term policy on the [Australian
Astronomical Observatory], while continuing to benefit from the
collaboration with the UK. The collaboration has been an important
factor in Australia’s world competitive performance in
astronomy. The new termination arrangements will assure will assure
long term access for Australian astronomers to a valuable
scientific instrument.[5]
The supplementary agreement made provision for the following
aspects:
- transfer of the Anglo-Australian Telescope to sole Australian
ownership on 1 July 2010
- the UK Government would withdraw from the joint ownership
arrangement as from 1 July 2010 and reduce its funding
commitment from 2006
- Australia could maintain a higher level of financial
contribution to the Anglo-Australian Telescope if it chooses
- the Anglo-Australian Telescope Board would develop and access
other sources of funding
- revision of time sharing arrangements for use of the
observatory, and
- Australia would have additional time to develop its long-term
policy for the observatory while it continues to benefit from the
collaboration with the UK.[6]
In the 2009–10 Budget, the Rudd Government announced that
the observatory would continue to operate under new governance
arrangements. It will operate as a business unit within the
Department of Innovation, Industry, Science and Research. As part
of the Super Science Initiative for Space and Astronomy in
the Budget, the Government announced additional funding of $20.9
million over four years.[7]
According to the Department’s annual report, funding of
$4.9 million was provided to the Anglo-Australian Observatory in
2008–09 to support its operations. The National Collaborative
Infrastructure Strategy also provides funding to develop a new
instrument for the observatory that will extend the life of the
facility to at least 2015.[8]
The Senate Selection of Bills Committee resolved on 25 November
2009 that the Australian Astronomical Observatory Bill 2009 and the
Australian Astronomical Observatory (Transitional Provisions) Bill
2009 not be referred to Committees.[9]
The Explanatory Memorandum states that the Australian Government
is providing increased funding to the observatory in part to
compensate for the changed governance arrangements. The net
increase in funding over four years is $20.91 million. Details
relating to the budget commitment over the four year period are
contained in the Explanatory Memorandum.[10]

Part
1—Preliminary
Clause 4 provides a number of definitions
relating to the operation of the proposed Act. For example, it
defines the following terms: Advisory Committee;
constitutional corporation; optical; and
optical astronomy facility.
Clause 8 proposes to place the observatory
within the Department of Innovation, Industry,
Science and Research. Clause 9 proposes that
there be a Director of the observatory and that the Director be a
Senior Executive Service (SES) employee.[11]
Subclause 10(1) proposes that the Secretary may
appoint an APS employee as an Acting Director when there is a
vacancy in the position or when the Director is absent from duty,
is overseas, or for any reason is unable to perform the duties of
the position. Subclause 10(2) provides
that any act done by a person or in relation to a person purporting
to act under an appointment is not invalid simply because:
- the occasion for the appointment had not arisen
- appointment was defective or irregularity in connection with
the appointment
- the appointment had ceased to have effect, or
- the occasion to act had not arisen or had ceased.
Subclause 11(1) invests the Secretary of the
Department of Innovation, Industry, Science and Research with
functions relating to optical astronomy. Subclause
11(2) lists some of the functions vested in the Secretary.
Any other functions will be specified in the regulations. The
Secretary is also empowered to do anything incidental to or
conducive to the performance of any of the functions set out in
subclause 11(2). Subclause 11(3) makes it clear
that the functions conferred on the Secretary are not limited to
those functions listed in subclause 11(2).
Clause 12 allows the Commonwealth to charge
fees for things done in the performance of the functions conferred
by clause 11. The Explanatory Memorandum states that this will
enable the observatory ‘to recover costs in relation to the
development and construction of instruments for external clients or
the provision of access to [the observatory’s] facilities
under certain circumstances, amongst other things’.[12]
Clause 13 establishes the advisory committee to
advise the Secretary of the Department about the performance of the
functions that have been conferred on the Secretary by proposed
section 11 (clause 14).
Clause 15 provides for the appointment of
committee members. Each member is to be appointed by the Secretary
by written instrument (subclause 15(1)) and hold
office for the period specified in the instrument of appointment
not exceeding three years
(subclause 15(2)).[13] An advisory committee member holds
office on a part-time basis (subclause 15(3)).
Subclause 15(4) enables the Secretary to
terminate the appointment of a committee member.
Clause 16 enables the Secretary to give the
advisory committee written directions concerning the way in which
it should carry out its functions and the procedures to be followed
in relation to meetings. Subclause 16(2) states
that a direction given by the Secretary is not a legislative
instrument. This means that the Secretary’s directions are
not subject to parliamentary scrutiny or disallowance under the
Legislative Instruments Act 2003.
Subclause 17(1) states that the remuneration of
advisory committee members will be determined by the Remuneration
Tribunal. If no determination is in operation, the member is
to be paid the remuneration prescribed by the regulations. An
advisory committee member will also be paid the allowances
prescribed by the regulations (subclause 17(2)).
Subclause 17(3) provides that this section has
effect subject to the Remuneration Tribunal Act 1973.
Clause 20 requires that an advisory committee
member must give written notice to the Secretary of all interests,
whatever their nature, if there is a possibility that they would
conflict with the proper performance of the member’s
functions.
Subclause 21(1) provides that if a member has
an interest, whether pecuniary or otherwise, in a matter being
considered or about to be considered by the advisory committee,
they must disclose the interest to the committee. Disclosure must
be made as soon as possible after the member becomes aware of the
interest (subclause 21(2)). Subclause
21(3) states that the disclosure to the committee must be
recorded in the minutes of the meeting of the advisory committee.
Subclause 21(4) provides that unless the advisory
committee determines otherwise, the member must not be present when
the matter is being deliberated and must not take part in any
decision on the matter (subclause 21(5)). A
determination under subclause 21(4) must be recorded in the minutes
(subclause 21(6)).
The Secretary may terminate the appointment of the member if the
member fails to comply with section 21 without a reasonable excuse
(subclause 21(7)). The Secretary’s power
under subsection 21(7) does not limit subsection 15(4), which
states that the Secretary may terminate the appointment of an
advisory committee member
(subclause 21(8)).
Clause 22 provides that advisory committee
members hold office on such terms and conditions as the Secretary
may determine (in relation to matters not covered by the proposed
Act).
Clause 23 states that the Secretary may, in
writing, delegate any or all of his or her functions or powers
under the proposed Act. The delegate must be the Director or an APS
employee within the observatory who has appropriate expertise.
Clause 26 makes provision for the
Governor-General to make regulations prescribing matters required
or permitted to be prescribed by the Act or matters necessary or
convenient to be prescribed for carrying out or giving effect to
the Act.
Members, Senators and Parliamentary staff can obtain further
information from the Parliamentary Library on (02) 6277 2784.

]. Anglo-Australian
Telescope Agreement Act 1970, section 4.
[2].
NH Bowen MP, ‘Second reading
speech: Anglo-Australian Telescope Agreement Bill
1970’, House of Representatives, Debates, 4
March 1970, pp. 84–85.
[3].
C Emerson MP, ‘Second reading
speech: Australian Astronomical Observatory Bill 2009’, House
of Representatives, Debates, 25 November 2009, p.
12771.
[4].
National Interest Analysis for
the Supplementary Agreement between the Government of the
Commonwealth of Australia and the Government of the United Kingdom
of Great Britain and Northern Ireland concerning the
Anglo-Australian Optical Telescope, at Siding Spring, New South
Wales, Australia, Canberra, 9 August 2005, paragraph 4.
[5].
Ibid., paragraphs 5–6.
[6].
Joint Committee on Treaties,
Supplementary Agreement between the Government of the
commonwealth of Australia and the Government of the United Kingdom
of Great Britain and Northern Ireland concerning the
Anglo-Australian Optical Telescope, at Siding Spring, New South
Wales, Australia, Report No. 68, October 2005, p.
21.
[7].
Senator K Carr (Minister for
Innovation, Industry, Science and Research), Super
Science-Space and Astronomy, media release, 12 May 2009,
viewed 2 February 2010.
[8].
Department of Innovation, Industry,
Science and Research (DIISR), Annual report,
2008–09, DIISR website, Canberra, 2009, p. 59.
[9].
Senate Selection of Bills Committee,
Report No. 18, 26 November 2009, p. 1.
[10].
Explanatory Memorandum, Australian Astronomical
Observatory Bill 2009, p. 3.
[11].
‘SES employee’ is defined in section
34 of the Public Service Act 1999 as ‘those
APS employees who are classified as
SES employees under the Classification Rules’. See
also section 17AA of the Acts Interpretation Act 1901.
[12].
Explanatory Memorandum, p. 6.
[13].
The note in clause 15(2) refers to subsection
33(4A) of the Acts Interpretation Act 1901 which
states that ‘in any Act appoint includes
re-appoint’.
Moira Coombs
3 February 2010
Bills Digest Service
Parliamentary Library
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