Export Finance and Insurance Corporation Amendment (New Mandate and Other Measures) Bill 2013

Introduced into the House of Representatives on 20 March 2013

Portfolio: Trade and Competitiveness

1.41 This bill amends the Export Finance and Insurance Corporation Act 1991 to:

clarify the circumstances in which the Export Finance and Insurance Corporation (EFIC) can provide insurance or another financial service or product on its commercial account, based on the principle that EFIC should only provide its services where a market failure exists;
enable EFIC to guarantee loans for foreign based subsidiaries of certain Australian based companies where this support will result in particular benefits for Australia;
exclude public service personnel from the EFIC board to increase transparency in EFIC operations, in line with recommendations of the Productivity Commission Inquiry Report on Australia’s Export Credit Arrangements; and
apply competitive neutrality principles to EFIC’s commercial account operations.

1.42 The bill also makes consequential amendments to the Corporations Act 2001 and Insurance Contracts Act 1984.

1.43 The bill is accompanied by a short, self-contained statement of compatibility which states that the bill does not engage any human rights.

1.44 The committee considers that the bill does not appear to give rise to any human rights concerns.