Labor demands rewrite of Foreign Relations Bill to limit foreign minister’s powers

Labor warned that proposed laws to allow Canberra to scuttle deals with foreign governments would give the foreign minister ‘broad discretionary powers’ without proper oversight.

Victoria’s Belt and Road Initiative agreement with China would be one of the first major deals to face the axe under Scott Morrison’s Foreign Relations Bill. Picture: Dylan Coker

Labor is demanding a rewrite of proposed new laws to give the federal government the power to scuttle agreements struck with foreign governments by states and territories, local councils and universities.

A dissenting report by Labor senators said they supported the intent of Scott Morrison’s Foreign Relations Bill, but warned it would give the foreign minister “broad discretionary powers” to cancel sub-national and university agreements without proper oversight.

“This opaque process and lack of certainty risks limiting international engagement by Australian entities,” said Labor members of the Senate’s Foreign Affairs, Trade and Defence Legislation Committee.

“All universities bar one that made submissions contended that the bill would significantly impact their ability to maintain productive international partnerships and sustain Australia’s world-class research capacity.”

They said the bill would impose a “significant regulatory burden” on Australian universities, which had not been consulted on their inclusion in the regime, and had no provisions to ensure procedural fairness.

“The bill does not require the minister to provide reasons for decisions and does not allow for any process of review or appeal by affected entities of ministerial decisions,” the senators said.

They also expressed concerns over the constitutionality of the bill, noting evidence that responsibility for foreign affairs “is held concurrently by both the commonwealth and the states”.

Victoria’s Belt and Road Initiative agreement with China would be one of the first major deals to face the axe under the Foreign Relations Bill.

Other agreements facing the chop could include a 2011 investment memorandum of understanding between Western Australia and China’s National Development and Reform Commission, and a 2013 MOU between NSW and Beijing covering trade, economy, culture, education, science, technology, tourism and sport.

Local government “sister city” agreements could also be cancelled, along with Confucius ­Institute agreements involving Australian universities.

The Labor minority report called for the bill to be redrafted to create an oversight mechanism for the proposed new system and a means of reviewing ministerial decisions.

It also recommended greater clarity over the nature of the “arrangements” captured by the bill, and the “institutional autonomy” of affected entities.

The Greens also recommended the bill not be passed in its current form, while all committee members recommended greater consultation on the proposed rules.

Victoria did not make a submission to the inquiry but the Northern Territory and NSW raised concerns about the impact of the bill, saying it could jeopardise.

Labor said the lack of state and territory submissions had “severely limited the committee’s ability to assess the impact and practicality of this bill on affected entities”.