Gas Act Amendment Act 1974 (Qld)

120 ttecusiaxt^ ANNO VICESIMO TERTIO ELIZABETHAE SECUNDAE REGINAE No. 10 of 1974 An Act to amend the Gas Act 1965-1971 in certain particulars [ASSENTED TO 18TH APRIL, 1974] BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short title and citation . (1) This Act may be cited as the Gas Act Amendment Act 1974. (2) The Gas Act 1965-1971 is in this Act referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Gas Act1965-1974. 2. Amendment of s. 29 . Section 29 of the Principal Act is amended by omitting subsection (3).

Gas Act Amendment Act 1974, No. 10 121 3. Repeal of and new s. 43. The Principal Act is amended by repealing section 43 and substituting the following section:- " 43. Basis of charge and matters related thereto . (1) (a) A gas supplier may charge such a price or prices for gas supplied by it as, together with all other income derived from any other business carried on by it in connexion with its business of a gas supplier or by way of interest or dividend from moneys acquired by the gas supplier in the conduct of its business of a gas supplier or in the conduct of any such other business, will return to such supplier, in respect of the financial year in which such charge is to be made, an amount that, when all expenses have been deducted, will yield after due allowance for provisions and transfers to reserves and special accounts, a return sufficient as near as is practicable to pay the prescribed share dividend. (b) Transfers to reserves and special accounts (other than those referred to in section 47) for which due allowance may be made pursuant to paragraph (a) shall be such only as are made at the rates and for the purposes approved by the chief gas examiner and notified in writing to the gas supplier. (c) In this subsection the term "expenses" means all outgoings incurred and appropriations made by a gas supplier of a type and amount usually or reasonably incurred or made in honest and prudent conduct of a business similar to the business carried on by that gas supplier, but does not include repayment of principal on any sum borrowed unless the chief gas examiner otherwise determines. (2) (a) For the purposes of this section, the amount of depreciation upon the assets of a gas supplier in respect of the financial year last preceding the financial year in which a charge for gas is to be made shall be an amount that is reasonable having regard to honest and prudent business practice in relation to a gas supply business of the type carried on by the gas supplier in question. Notwithstanding this paragraph, the chief gas examiner may, upon application by a gas supplier, approve in a particular case a special rate of depreciation. (b) Where an expense that is incurred or to be incurred by a gas supplier in a financial year is of such magnitude as would render it prudent to recover from income over a number of years the amount expended or to be expended, that gas supplier may, instead of deducting the whole of those expenses in that financial year, deduct therein such part of those expenses as is reasonable having regard to honest and prudent business practice in relation to a gas supply business of the type carried on by the gas supplier and, for the purpose of calculating a price or prices of gas to be charged in subsequent financial years, deduct such part of those expenses as is likewise reasonable until the whole of those expenses has been or, in the opinion of the chief gas examiner having regard to such business practice, should have been deducted for that purpose whichever period is the shorter, and if in respect of a financial year it charges a price for gas so calculated shall be taken to comply with the provisions of this section in respect of that financial year.

122 Gas Act Amendment Act 1974, No. 10 (c) Where a gas supplier has assets rendered obsolescent which are for that reason not used or applied by the gas supplier in or in connexion with its business of a gas supplier, such assets shall be deemed to be assets used and applied by it in or in connexion with its business of a gas supplier until the value of such assets in the books of the gas supplier has been or, in the opinion of the chief gas examiner, should have been written off in accordance with honest and prudent business practice in relation to a gas supply business of the type carried on by the gas supplier, whichever period is the shorter. (d) All items of expenditure charged to the books and accounts of-a gas supplier shall be amounts actually and necessarily incurred in honest and prudent conduct of the business of a gas supplier with respect to the operation, management and maintenance thereof, save that amounts provided for in paragraph (c) may be allowed. (3) For the purposes of this section, the chief gas examiner may require in writing a gas supplier to furnish to him details of any item of expenditure supported by evidence justifying that item and may disallow the whole or part thereof if, after an examination by him of details and evidence in support furnished to him, he is satisfied that such item of expenditure was not a true, fair and necessary cost. An amount disallowed pursuant to this subsection shall be credited by the gas supplier to its Consumers' Price Adjustment Account, and if, having regard to all the circumstances, the chief gas examiner so orders, the amount payable by the gas supplier as dividend for the period in question shall be reduced by an equivalent amount, after taking into account taxation requirements. If the dividend of the gas supplier for the period in question has been paid and it is not practicable for that reason to make the reduction provided for, that reduction shall be made from the amount payable as dividend in the next succeeding period for which a dividend is declared. A gas supplier that contravenes or fails to comply with any provision of this subsection is liable upon conviction to a penalty of $1,000, which the court may order to be paid out of the amount payable as dividend in the period for which a dividend is declared next succeeding the date of the conviction. A gas supplier aggrieved by an order of the chief gas examiner pursuant to this subsection may appeal therefrom to the Industrial Court, and the provisions of subsections (4), (5) and (6) of section 51 shall apply to any such appeal. (4) Where it appears to the chief gas examiner that the .provisions of section 43A are not being complied with in any case, he may require the gas supplier in writing to furnish evidence justifying the business practice adopted by the gas supplier generally and in particular its dealings with its holding company or an associated company. The gas supplier shall forthwith furnish to the chief gas examiner all information 'required to be furnished pursuant to this subsection.

Gas Act Amendment Act 1974, No. 10 123 (5) Where the chief gas examiner is satisfied after examination of all material furnished by the gas supplier under this subsection that the provisions of section 43A are not being complied with, the chief gas examiner may apply to the Industrial Court for an order that any business practice of or dealing by a gas supplier with its holding company or an associated company- (i) be set aside; or (ii) be modified to such an extent as to comply with the provisions of section 43A. The Industrial Court shall have jurisdiction to hear and determine an application made pursuant to this subsection and may make the order the subject of the application or such other order (including an order as to costs) as to the Court seems just. A decision of the Industrial Court pursuant to this subsection shall be final and shall be given effect to by all parties, and may be enforced in the same manner as any other decision of the Industrial Court. In an application under this subsection the Industrial Court and the President of the Industrial Court shall have and may exercise all the powers and authorities vested in it or, as the case may be, him under the Industrial Conciliation and Arbitration Act 1961-1973.". 4. New ss. 43A, 43B. The Principal Act is amended by inserting after section 43 as inserted by this Act the following sections:- 43A. Conduct of business by gas supplier . A gas supplier- (a) shall at all times conduct its business with due regard to honest and prudent business practice and the need for efficiency; (b) shall in its dealings with other persons including its dealings with its holding company or an associated company have due regard for the interests of consumers. 43B. Directions by Minister as to certain dealings by a gas supplier. (1) The Minister may from time to time issue directions to a gas supplier with respect to its dealings with its holding company or an associated company. The Minister shall specify in a direction issued pursuant to this section a date before which or a period within which the act or thing directed to be done shall be done. (2) A gas supplier that fails to comply with a direction of the Minister given pursuant to this section before the date or within the period specified therein is liable to a penalty of $1,000 for each period of 7 days during which the failure to comply continues.". 5. Amendment of s. 45 . Section 45 of the Principal Act is amended by, in subsection (1), (a) inserting after the words " supplier may " the words ", subject to section 43 ";

124 Gas Act Amendment Act 1974, No. 10 (b) omitting the second paragraph and substituting the following paragraph:- In this section- effective rate of interest " means the effective rate of interest payable in respect of the issue last preceding the commencement of the financial year in which a charge for gas is to be made of a cash or conversion loan issued by the Commonwealth, not being a loan for a term of less than ten years nor a compulsory loan nor a tax free loan, after making due allowance for discount allowed or premium'payable in respect of a subscription to such loan and any tax concession in excess of the rate of tax rebate applicable in respect of income derived from such loan at the date of commencement of this Act.". 6. Repeal of s. 46. The Principal Act is amended by repealing section 46. 7. Amendment of s. 47. Section 47 of the Principal Act is amended by omitting subsection (2). 8. New ss . 51A, 51B. The Principal Act is amended by inserting after section 51 the following sections:- " 51A. Requirement as to production of records , books and accounts . (1) The chief gas examiner or a person authorized by him in writing in that behalf may at any time and from time to time require a gas supplier- (a) to produce for his inspection or examination all records, books and accounts relating to the gas supplier's business; (b) to furnish to him copies of or extracts from any record, book or account relating to the gas supplier's business; (c) to answer any question or to furnish any information with respect to any record, book or account relating to the gas supplier's business. The chief gas examiner or authorized person may make copies of or extracts from any record, book or account referred to in this section. (2) The powers conferred upon the chief gas examiner or authorized person by subsection (1) may be exercised with respect to the records, books and accounts of the holding company or any associated company of the gas supplier that relate to dealings by the holding company or associated company with the gas supplier but only with the approval of the Minister first had and obtained. 51B. Interpretation . In this Part, in relation to a gas supplier, the expressions " holding company " and " subsidiary company " have the meanings assigned to them respectively by section 6 of the Companies Act 1961-1972, and the expression " associated company " means a corporation that with other corporations is a subsidiary of the one holding company. For the purposes of this Part the term " corporation " has the meaning assigned to it by section 5 of the Companies Act 1961-1972.".

Gas Act Amendment Act 1974, No. 10 125 9. Repeal of and new s. 64. The Principal Act is amended by - repealing section 64 and substituting the following section:- " 64. Amendment of Schedule H. The Governor in Council may from time to time by Order in Council amend (by adding thereto or deleting therefrom) Schedule II and in like manner may revoke that Schedule and substitute a new schedule. Schedule II as so amended or, as the case may be, substituted shall for the time being become and be Schedule II.". 10. Amendment of Schedule H. The Principal Act is amended by, in Schedule II- (a) in subclause (2) of clause 8, omitting subparagraph (b) and substituting the following subparagraph: " (b) shall not erect, replace, alter or add to any supply, production or associated equipment save on an allotment approved by the Local Authority or other authority charged with the control of the locality in which the equipment is or is to be erected and in accordance with safety requirements approved by the chief gas examiner;"; (b) omitting clause 18-and substituting the following clause:- " 18. Duty to prevent leakage of gas. (1) The holder, being the owner of any fitting erected, installed or laid on or under any street shall, at regular intervals of time, survey for leakage of gas in areas in which gas is reticulated using methods suitable to the location being surveyed. In determining the intervals of time at which surveys shall be undertaken in a particular case, the holder shall have regard to the location and public safety generally. (2) The holder shall investigate every report received of leakage of gas, and shall deal with each of the following reports immediately for the purpose of classification unless information is furnished to the holder that indicates that the leakage is not hazardous- (a) a report from a member of the public, or of the Police Force of the State, or from any other body; (b) a report of the presence of gas (whether suspected or proven) in or under a building; (c) a report of a blowing leakage of gas, whether detected by hearing, sight or smell; (d) a report of the suspected or proven presence of gas in underground ducts, manholes, subways or other confined spaces; (e) any other report of a leakage or suspected leakage of gas, that the holder thinks hazardous. The holder shall investigate all reports, other than those specified in subparagraphs (a) to (e) inclusive of the first paragraph of this subclause, within 24 hours of the receipt thereof. (3) A leakage of gas shall be classified by the holder as- Class A-hazardous; Class B-potentially hazardous; Class C-non-hazardous.

126 Gas Act Amendment Act 1974, No. 10 (4) Where a leakage of gas has been classified by the holder as Class A, he shall commence work on repairs immediately and shall continue that work with expedition until those repairs are completed and the leakage of gas eliminated. Leakages of gas that shall be classified by the holder as Class A include- (a) a blowing leakage of gas (whether detected by hearing, sight or smell); (b) a leakage of gas in or under a building; (c) a leakage of gas in an underground duct, manhole, subway or other confined space; (d) any other leakage of gas that having regard to the circumstances the holder thinks hazardous. Where in a case to which this subclause applies, the source of the leakage of gas is fittings that are not the property of the holder, the holder may, for the purpose of enabling work on repairs to be undertaken, cut off the supply of gas to those fittings. (5) (a) A leakage of gas that has been classified as potentially hazardous or non-hazardous shall be listed- (a) for repair; or (b) for re-examination of the location at a later date, as the case requires. (b) A leakage of gas that has been classified as Class B and listed for repair shall be repaired within 7 days of the date of investigation unless a further inspection during that period indicates that the leakage may be reclassified and repair thereof deferred. (c) Leakages of gas to which paragraph (b) of this subclause applies include- (i) an area of density of leakages that renders a form of collective repair necessary, subject always to consideration of the possibility that individual leakages in this category may justify attention of a higher priority; (ii) an indication of a leakage within 2 metres of a building where the reading from a vented barhole exceeds 50 per centum LEL and an examination has indicated that ,there is no gas in or under the building; (iii) an indication of a leakage within 5 metres of a building where there is in the vicinity a medium or high pressure gas main or service; (iv) an indication of a leakage adjacent to a school, hospital or place in which members of the public assemble. (6) Leakages of gas that have been classified as Class C and that may be left unrepaired include- (a) an indication of a leakage in an area outside a radius of 30 metres from the nearest building where there is no evidence of vegetation decay and vented barhole readings are less than 50 per centum LEL; (b) an indication of a leakage that is considered by the holder not to constitute a hazard and of such a nature as to be left unrepaired until the next survey.

Gas Act Amendment Act 1974, No. 10 127 (7) For the purposes of subclauses (5) and (6)- (a) the term " LEL" means lower explosive limit of the gas being measured; (b) the term " vented barhole " means a barhole that has been vented for a period of at least 3 hours. (8) A holder shall keep records in proper form to the satisfaction of the chief gas examiner of- (a) every report received of a leakage of gas; (b) every inspection, investigation and report made by the holder following receipt of a report of a leakage of gas; (c) the action taken by the holder in respect of every report received of a leakage of gas following an inspection and investigation thereof. (9) A holder who fails to comply with a provision of this clause commits an offence against this Act. Penalty: $10 for each day or part thereof during which the failure to comply continues.". 11. Repeal of Schedule III. The Principal Act is amended by repealing Schedule III.