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| Madam Speaker, I move that the bill now be read a second time. Madam Speaker, the purpose of this bill is to amend the Professional Standards Act to facilitate the mutual recognition of Northern Territory and interstate schemes for the limitation of occupational liability. Professional standards legislation has been enacted in all states and territories to, in part, provide a cap on occupational liability such as legislation. Such legislation also protects consumer interests by requiring insurance to be taken out and risk management strategies implemented. It also covers procedures for complaint handling and disciplinary action. The Professional Standards Act was enacted as part of the national tort law reforms, with the specific objectives of improving professional service standards and limiting the occupational liability of professionals in certain circumstances. The groups affected by this legislation include accountants, legal practitioners, engineers, surveyors, and medical professionals. Under the act, professional associations can propose a scheme and seek to have it approved by the Professional Standards Council. The schemes benefit members by capping liability in the event of a claim against them in connection with the performance of their occupation. Introduction of the Professional Standards Amendment (Mutual Recognition) Bill 2007 aims to implement a decision of the Standing Committee of Attorneys-General whereby states and territories agree to amend their professional standards legislation to enable mutual recognition of schemes approved in each jurisdiction. Mutual recognition will cut the red tape currently facing professionals who wish to have capped liability when providing services in other jurisdictions. It recognises the reality that the work of professional practices often transcends state boundaries. I now turn to the key provisions of the bill. Under professional standards legislation, an occupational association may submit a proposed scheme to the Professional Standards Council for approval. Alternatively, an occupational association may ask the council to prepare a scheme on its behalf. The bill provides that a proposed scheme may indicate an intent to operate in the Northern Territory only, or in both the Northern Territory and one or more interstate jurisdictions. If a proposed scheme indicates an intent to operate in more than one jurisdiction, the bill requires the scheme be advertised in each of those jurisdictions and the advertising requirements of each of those jurisdictions be met. Under professional standards legislation, the Professional Standards Council is required to consider a range of matters before approving a proposed scheme. In considering whether to approve operation of a scheme in more than one jurisdiction, the council must consider all of the usual matters including all comments and submissions, the effect of the cap on those who deal with members, the nature and level of claims, costs of insurance, and the implementation of risk management strategies. In addition, the council must consider any other matters specified in the professional standards legislation of the interstate jurisdiction, and all relevant matters in the context of each of jurisdictions concerned. The council may then submit the scheme to the minister administering professional standards legislation in the various jurisdictions. They, in turn, may authorise the publication in the Gazette of the scheme referred to them by the interstate council. Under Professional Standards legislation, a person who is or is reasonably likely to be affected by a scheme published in the Gazette may apply to the Supreme Court for an order that the scheme is void for want of compliance with the act. Consistent with this existing right to challenge, any person who is or is reasonably likely to be affected by a scheme in its application in another jurisdiction may also mount a challenge. While the Professional Standards legislation of states or territories is largely consistent, there are some jurisdiction differences. In recognition of this, clause 11 of the bill provides that a court may not make an order that an interstate scheme is void for want of compliance of a Northern Territory act on the ground that the scheme fails to comply with the requirements of the Northern Territory act relating to the contents of scheme; and may make an order that an interstate scheme is void on the ground that the scheme fails to comply with the requirements of the interstate law under which it was approved in relation to the contents of the scheme. Again, consistent with the power of a minister or a council to review the operation of a scheme in a home jurisdiction, clause 12 of the bill provides that a review may also be conducted to decide whether the operation of an interstate scheme should be terminated in the Northern Territory. Under Professional Standards legislation, either the minister, the council, or an occupational association may initiate the amendment or revocation of a scheme. Clause 13 of the bill provides that the provisions relating to the amendment and revocation do not apply to an interstate scheme. Clause 14 of the bill inserts a separation section governing the termination of an interstate scheme operating in the Northern Territory. Either the minister or council or an occupational association may initiate the termination. Other important provisions in the bill require that when an instrument revoking a scheme but also operates interstate is published in the Gazette, the minister must give notice to the relevant interstate ministers and when the minister receives notice that an interstate scheme that also operates in the Northern Territory has been revoked, he or she must publish a notice in the Gazette. Clause 15 of the bill inserts a more comprehensive provision on the duration of schemes to cover both the Northern Territory scheme and interstate schemes which may operate in the Northern Territory. Clause 6 of the bill provides that for the purpose of dealing with a scheme that operates or indicates an intent to operate in both the Northern Territory and another jurisdiction, the Professional Standards Council may firstly in the exercise of its functions under the act, act in conjunction with the council of the interstate jurisdiction; and secondly act in conjunction with the council of the interstate jurisdiction in the exercise of that council’s function under interstate Professional Standards legislation. The model bill is supported by the Professional Standards Council and by key professional bodies including the Law Council of Australia and the National Institute of Accountants. This bill is also supported by the Law Society of the Northern Territory which was consulted during the drafting of the bill. I commend the bill to honourable members and table a copy of the explanatory statement. Debate adjourned. |