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The Synod of Eastern Australia Property Amendment Bill

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About this Item
Subjects -  Churches: Christian; Investment Trusts; Real Estate
Speakers - George Mr Thomas; Ashton Mr Alan; Debus Mr Bob
Business - Bill, Second Reading, Motion


    THE SYNOD OF EASTERN AUSTRALIA PROPERTY AMENDMENT BILL
Page: 6569


    Second Reading

    Debate resumed from 18 February.

    Mr THOMAS GEORGE (Lismore) [12.33 p.m.]: I state at the outset that the Opposition will not oppose the bill, which bill seeks to amend The Synod of Eastern Australia Property Act 1918 to provide for the office-bearers of The Synod of Eastern Australia Property Trust to be indemnified out of trust property against expenses and liabilities that they incur in connection with exercising or performing their powers, authorities, duties or functions. The Synod of Eastern Australia is the governing body of the Presbyterian Church of Eastern Australia. The church was formed in 1846 when three ministers and three elders withdrew from what is now the Presbyterian Church in New South Wales.

    The church comprises 12 charges or parishes in New South Wales, Queensland, Victoria and Tasmania. Approximately 850 people regularly attend church services throughout Australia. There are seven charges in New South Wales—in Sydney, Grafton, Wauchope, Taree, Maclean, Raymond Terrace and Mount Druitt. Approximately 500 people regularly attend church services in New South Wales. An Act was passed in 1918 that established a property trust for the church. However, the Act did not make provision to reimburse the trustees for moneys expended on behalf of the trust or to indemnify the trustees for activities carried out on behalf of the trust. On 8 May 2003 the synod of the church agreed to request the Government to amend the Act to address the issues of liability and remuneration of the trustees.

    This bill will insert section 2A into the Act to enable trustees to be indemnified out of trust property. The provision is similar to the indemnification provision used in other church property trust legislation. An example of such a provision is section 23 of the Methodist Church of Samoa in Australia Property Trust Act 1998. This bill continues the longstanding government policy to assist churches to organise their financial and property affairs by sponsoring legislation in relation to corporate property trusts.

    Mr ALAN ASHTON (East Hills) [12.36 p.m.]: I appreciate the Opposition's support for the bill as indicated by the honourable member for Lismore, The Nationals Whip. Although this may appear to be a minor amendment that affects few people, as part of our democratic process it is necessary that we pass legislation to assist The Synod of Eastern Australia with respect to its trustees. The purpose of the bill is to amend The Synod of Eastern Australia Property Act 1918. Given that almost 100 years has passed since the introduction of that Act, it is appropriate that it be amended. In the past it has been difficult to identify who may be the office-bearers of small organisations and how they could be indemnified to properly carry out their duties as trustees.

    Mr Paul Gibson: Since 1982.

    Mr ALAN ASHTON: No, 1918; it goes back a fair while. The Synod of Eastern Australia Property Trust will be indemnified out of trust property against expenses and liabilities that they incur in connection with the exercise or performance of their powers, authorities, duties or functions. The Synod of Eastern Australia is the governing body of the Presbyterian Church of Eastern Australia. That organisation was formed in 1846 when several ministers and elders of that church withdrew from what is now the Presbyterian Church in New South Wales. I understand that there are 12 parishes in New South Wales, Queensland, Victoria and Tasmania, hence the term "Eastern Australia".

    It is interesting that only 850 people regularly attend church services throughout Australia. Approximately 500 people regularly attend services in Sydney and the country areas of Grafton, Wauchope, Taree, Maclean, Raymond Terrace and Mount Druitt—something that should interest the honourable member for Mount Druitt. An Act was passed in 1918 that established a property trust for the church, but that Act did not make provision to reimburse the trustees for moneys expended on behalf of the trust or to indemnify the trustees for activities carried out on behalf of the trust.

    As the honourable member for Lismore said, in 2003 it was agreed that a request be put to the Government to amend the Act to address these issues, and that is what is being done with this bill. The insertion of new section 2A into the Act will enable the trustees to be indemnified out of trust property. The provision is similar to the indemnification provision used in other church property trust legislation that I understand the Parliament has passed in recent years concerning other churches and the disbursement of moneys to trustees. One example is section 23 of the Methodist Church of Samoa in Australia Property Trust Act 1998. I commend the bill to the House, and I thank the Opposition for its support.

    Mr BOB DEBUS (Blue Mountains—Attorney General, and Minister for the Environment) [12.40 p.m.], in reply: I thank honourable members who have contributed to this debate. They have exhaustively explained the circumstances in which the bill has been introduced into the House. The bill provides for office-bearers of The Synod of the Eastern Australian Property Trust to be indemnified out of trust property against expenses and liabilities they incur in connection with the exercise of their powers.

    It is worth observing that this bill is consistent with the Government's longstanding policy of assisting churches to organise their financial and property affairs through the establishment of legislation in respect of corporate property trusts. It is also the Government's policy to introduce legislation relating to church property trusts if there is a consensus within the particular congregation about the nature of the bill or statute to be passed, and that is so in this case. Therefore, I have great pleasure in commending the bill to the House.

    Motion agreed to.

    Bill read a second time and passed through remaining stages.


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