Thursday, 24 March 2022
Bills
Puffing Billy Railway Bill 2022
Puffing Billy Railway Bill 2022
Introduction and first reading
The PRESIDENT (18:06): 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 Puffing Billy Railway Board, to provide for the objectives, functions and powers of the Board, to provide for matters relating to the Puffing Billy Railway, to repeal the Emerald Tourist Railway Act 1977 and for other purposes’.
That the bill be now read a first time.
Motion agreed to.
Read first time.
Ms SYMES: I move, by leave:
That the second reading be taken forthwith.
Motion agreed to.
Statement of compatibility
Ms SYMES (Northern Victoria—Leader of the Government, Attorney-General, Minister for Emergency Services) (18:07): I lay on the table a statement of compatibility with the Charter of Human Rights and Responsibilities Act 2006:
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 Puffing Billy Railway Bill 2022 (the Bill).
In my opinion, the Bill, 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
The Bill is an important part of the government’s efforts to improve and modernise the governance framework of the Puffing Billy Railway. The Bill:
a) Repeals the ETR Act and establishes the Puffing Billy Railway Act 2022 as a new principal Act.
b) Introduces a framework that supports the Bill’s principal objective to provide for the ongoing management and sustainability of the iconic Railway.
c) Changes the name of the ETRB to the Puffing Billy Railway Board (PBRB).
d) Introduces contemporary corporate governance reporting mechanisms that align with modern standards and are appropriate for operating the Railway in a contemporary tourism environment.
e) Updates the functions of the PBRB and outlines clear objectives relevant to the operation of the Railway as a state significant tourism attraction.
f) Provides that the persons appointed to the PBRB are directors rather than members, to remove any ambiguity with members of the Society.
g) Transitions the PBRB with an emphasis on a skills-based directorship, conferring the power to appoint directors to the Governor in Council on the recommendation of the Minister.
h) Permits the making of regulations with respect to a broad range of matters relating to the day-to-day operation and management of the Railway.
Human Rights Issues
The Bill engages the right to recognition and equality before the law (section 8).
For the following reasons, I am satisfied that the Bill is compatible with the Charter and, if any rights are limited, those limitations are reasonable and demonstrably justified having regard to the factors in section 7(2) of the Charter.
Temporary limitations on eligibility for appointment to the Puffing Billy Railway Board
The Bill limits eligibility for appointment to the Puffing Billy Railway Board to exclude those who in the previous 12 months were elected to any position in the Puffing Billy Preservation Society (the Society). While this is a very minor limitation (as persons within the affected cohort become eligible after 12 months of ending their involvement with the Society) it is arguable that this infringes that cohort’s rights to equality before the law.
To the extent this infringes the right of that cohort to equality before the law, I consider this limitation to be reasonable and justified because:
i. The limitation is temporary. People subject to the limitation become eligible after 12 months regardless of previous affiliation with the Society;
ii. The Bill’s object of a new, modern governance framework is advanced by the clear separation between the new framework and its predecessor.
The Hon. Jaala Pulford
Minister for Small Business
Second reading
That the second-reading speech be incorporated into Hansard.
Motion agreed to.
Ms SYMES: I move:
That the bill be now read a second time.
Incorporated speech as follows:
The Puffing Billy Railway is Australia’s premier preserved steam railway that operates between Belgrave and Gembrook in Victoria’s Dandenong Ranges. The Railway opened for heritage operations in 1962 and has evolved from a small regional tourist railway into a state significant tourism attraction, with a strong international profile.
In 1977, the Victorian Government established the Emerald Tourist Railway Board as a statutory authority under the Emerald Tourist Railway Act 1977. Under this Act, the ETRB is responsible for the preservation, development, promotion, operation and maintenance of the Railway and carrying out other related operations which are consistent with the operation of the Railway as a major tourist attraction.
The ETRB and the governance structure established under the Emerald Tourist Railway Act 1977 have come under scrutiny in recent years. In June 2018, the Victorian Ombudsman released her report ‘Investigation into child sex offender Robert Whitehead’s involvement with Puffing Billy and other railway bodies’. The report identified significant failings in the governance of the ETRB, a poor legislative framework under the Emerald Tourist Railway Act with respect to managing conflicts of interest and inappropriate board and management composition, which had enabled the Executive Committee of the Puffing Billy Preservation Society to control the ETRB. The Ombudsman concluded that governance failings of the ETRB, which included the Society’s position of control, had facilitated Robert Whitehead’s offending.
The Society was established in 1955, with the key objective to preserve the Railway and its historical assets for future generations. The Society continues to operate today, with over 1,000 current members. Many of these members volunteer on the Railway and their contribution is critical to the sustained operations of the Railway by driving locomotives, preserving trains and track maintenance.
Among several recommendations, the Ombudsman recommended review of the current structure and composition of the ETRB, and the governance issues associated with its relationship with the Society. The findings and recommendations from this review have informed many provisions in this Bill.
The Emerald Tourist Railway Act is not a suitable framework to provide for the contemporary operations of the Railway. A replacement Act with modernised provisions has been developed, which more effectively supports the contemporary operations of the Railway in the context of a state significant tourism attraction.
The Bill supports the future growth and sustainability of the Railway, which it weighs with the need to recognise the heritage significance of the Railway, the significance of its volunteers and its importance to local communities. These purposes are important for the Railway to remain a significant demand driver for the state and retain its status as a heritage attraction that supports local communities.
The Bill changes the name of the ETRB to the Puffing Billy Railway Board to align with the more commonly known name of the Railway. The current name presents unnecessary confusion to consumers who use the Railway.
The Bill introduces modern corporate governance reporting mechanisms that support the ongoing management and sustainability of the Railway in a contemporary tourism environment. Key provisions of the Bill include to enshrine the requirement to develop strategic plans and business plans, enhance the circumstances with which the PBRB reports to the Minister and empower the Minister to make written directions and request particular information. These reforms deliver an improved corporate government framework that overcomes the reporting deficiencies present in the Emerald Tourist Railway Act. They also support the Victorian Government to achieve the findings from the Ombudsman’s report.
The Bill introduces a comprehensively altered board management framework that aligns with modern standards and further supports the Victorian Government’s commitment to implement the findings from the Ombudsman’s report. The Puffing Billy Railway Board will transition to a skills-based directorship, with the skills reflective of the contemporary needs of the Railway. All appointments will be made by the Governor in Council on the recommendation of the Minister. This approach removes the Society’s capacity to make nominations.
The Bill also introduces restrictions on the Society with respect to holding directorship on the PBRB, including prohibiting a person who holds or held an elected position at the Society within the preceding 12 months from holding directorship and limiting the number of non-elected Society members who can hold directorship to two current or former members who concluded their membership within the preceding 12 months. These restrictions are intended to improve separation between the PBRB and the Society and future proof the Puffing Billy Railway Board from being controlled by the Society. However, the Bill allows limited representation from non-elected Society members in recognition that they are not associated with the Society’s decision-making branch and could provide valuable skills and expertise to the Puffing Billy Railway Board given their involvement with heritage and tourist railways.
The Bill introduces a more comprehensive list of functions and objectives that recognise the broader and more diverse operations of the Railway as it has evolved into a state significant tourism attraction. The Emerald Tourist Railway Act provides a relatively outdated list, which is no longer sustainable to support the current operations of the Railway.
I commend the Bill to the house.
Mr ONDARCHIE (Northern Metropolitan) (18:07): I move, on behalf my colleague David Davis:
That debate on this matter be adjourned for one week
Motion agreed to and debate adjourned for one week.