Gas and Electricity (Amendment) Act 1955 (NSW)

GAS AND ELECTRICITY (AMENDMENT) ACT.

Act No. 21 , 1955.

An Act to make further provision in relation to the standard rates of dividend applicable to certain gas companies and to the issue of additional shares by such companies; for these and other purposes to amend the Gas and Electricity Act, 1935, and certain other Acts in certain respects; and for purposes connected therewith. [Assented to, 26th April, 1955.]

lative Council and Legislative Assembly of New South	BE it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legis­
Wales in Parliament assembled, and by the authority of the same, as follows :—
1. (1) This Act may be cited as the "Gas and Electricity (Amendment) Act, 1955."
(2) The Gas and Electricity Act, 1935, as amended by subsequent Acts and by this Act, may be cited as the Gas and Electricity Act, 1935-1955.
(3) The Gas and Electricity Act, 1935, as amended by subsequent Acts, is in this Act referred to as the Principal Act.

word "g ros s " .

Pa r t I of the Principal Act is amended by omitting from the definition of "Gas un i t " in section three the

2.

3.   Part III of the Principal Act is amended—

(a) by omitting subsection one of section six and by inserting in lieu thereof the following sub­

sections :—

(1) (a) The profits of a gas company avail­

able for distribution among the holders of its

share capital in any year shall not, except as hereinafter provided, exceed the following rates

(in this Act referred to as the standard rates of

dividend), that is to say—

on the ordinary share capital of the company—in respect of every one hundred pounds actually paid up or issued as paid up of that capital, a rate being two pounds in excess of the

effective annual rate of interest pay­ able in respect of the cash or conversion
loan, not being a loan for a term of
less than ten years nor a compulsory

loan nor a tax free loan, last issued by the Commonwealth of Australia before the declaration of the dividend to be paid on that capital by the company in that year; and

on the preference capital of the company—
the rate of five pounds ten shillings in

respect of every one hundred pounds

actually paid up or issued as paid up

of that capital.

(b) In determining the effective annual rate of interest payable in respect of any such

cash or conversion loan for the purpose of

ascertaining the standard rate of dividend on the ordinary share capital of a gas company, there shall be taken into account any discount given or premium payable in respect of any subscription to the loan and any rebate of

taxation

taxation in excess of that allowed, at the commencement of the Gas and Electricity (Amendment) Act, 1955, by section 160AB of the Income Tax Assessment Act, 1936, as amended by subsequent Acts, of the Parliament of the Commonwealth.

(1A) (a) Where a gas company fails in any year after the commencement of the Gas and Electricity (Amendment) Act, 1955, to pay the standard rate of dividend on its ordinary share capital, the profits of the company available for distribution among the holders of that capital in any subsequent year may exceed the standard rate payable in that subsequent year but not by more than one pound in respect of every one hundred pounds actually paid up or issued as paid up of that capital.

Nothing in the foregoing provisions of this paragraph authorises the company to declare in any year a rate of dividend on its ordinary share capital such that the aggregate of—

(i)   the total amount of dividends payable pursuant to that declaration; and

(ii)   the total amount of all dividends paid on its ordinary share capital after the commencement of the Gas and Elec­ tricity (Amendment) Act, 1955, but before that declaration,

would exceed the aggregate of—

(iii)	the total amount of dividends that	would be payable pursuant to that	declaration if the declaration were
made at the standard rate payable in that year; and
(iv)	the total amount that would have been paid since that commencement had all the dividends paid on its ordinary share capital since that commencement but before that declaration been paid at the appropriate standard rate.

(b)

(b) Where a gas company fails in any year after the commencement of the Gas and

Electricity (Amendment) Act, 1955, to pay the

standard rate of dividend on its preference

capital, the profits of the company available for

distribution among the holders of that capital in any subsequent year may exceed that stan­ dard rate but shall not exceed the rate of six pounds ten shillings in respect of every one hundred pounds actually paid up or issued as paid up of that capital.

Nothing in the foregoing provisions of this paragraph authorises the company to declare in any year a rate of dividend on its preference capital such that the aggregate of—

(i)   the total amount of dividends payable pursuant to that declaration; and

(ii)   the total amount of all dividends paid on its preference capital after the commencement of the Gas and Elec­

tricity (Amendment) Act, 1955, but
before that declaration,

would exceed the aggregate of—

(iii)   the total amount of dividends that would be payable pursuant to that declaration if the declaration were made at the standard rate; and

(iv)   the total amount that would have been paid since that commencement had all

the dividends paid on its preference

capital since that commencement but

before that declaration been paid at

the standard rate.

(b) by omitting from subsection one of section seven the words "one-half o f " ;

(c) (i) by inserting in section eight after the words

"not exceeding" the words " the aggregate

o f " ;

(ii)

(ii)  by inserting in the same section after the words "throughout the y e a r " the words "and, where any such plant, building or equipment is scrapped at any time in that year, an amount not exceeding the book value as at that time (after deducting depreciation or allowing for any amount in the depreciation reserve as the case may require) of plant, building or equipment

so scrapped less the proceeds of sale, i f

any, of the materials resulting from the scrapping of the plant, building or equip­ ment";

(d) (i) by omitting from subsection one of section

thirteen the words " T h e City of Newcastle

Gas and Coke Company (Limited) or the Manly Gas Company Limited" and by

inserting in lieu thereof the words " o r The

City of Newcastle Gas and Coke Company
(Limi ted)" ;

(ii)  by omitting from paragraph (b) of the same subsection the word "twenty-eight" and by inserting in lieu thereof the word "fourteen";

(iii)   by inserting at the end of paragraph (d)

of the same subsection the words "but any

person may purchase or tender for one or

more lo t s " ;

(iv) by omitting paragraph (e) of the same subsection and by inserting in lieu thereof the following paragraph:—

(e) where, in the case of a sale by tender, two or more persons tender the same sum the purchaser shall be deter­ mined by lot;

(v)   by omitting paragraph (g) of the same subsection;

(vi)

(vi)   by omitting from paragraph (h) of the same subsection the words "shall be again

offered for sale by public auction or by

tender in accordance with the provisions of this section and any such shares or stock then remaining unsold may be otherwise disposed of at such price and in such manner as the directors of the company may determine for the purpose of realising the best price obtainable" and by inserting in lieu thereof the words "may be sold to such persons, in such manner and upon such terms and conditions as the directors of the company may determine:

Provided that such shares or stock shall not be sold at less than the reserve price notified to the Minister under paragraph

(c) of this subsection";

(vii)   by inserting next after the same subsection the following new subsection:—

(1A) Notwithstanding the provisions of this or any other Act or of any memo­ randum or articles of association the directors of any of the three companies mentioned in subsection one of this section may, with the approval of the Minister, issue any shares at, above or below par to such persons, in such manner and upon

such terms and conditions as the directors of the company may determine:

Provided that those terms and conditions shall not, except in the circumstances and subject to the restrictions mentioned in subsection (1A) of section six of this

Act, include a right to receive a rate

of dividend on the ordinary share capital

or preference capital, as the case may be, exceeding the standard rate of dividend

applicable thereto.

(e)

(e) by omitting from subsection one of section seventeen the words "thirty-first day of

March" and by inserting in lieu thereof

the words "thirtieth day of April" .

4. (1) Par t I V of the Principal Act is amended—

(a)	by inserting in the heading to Division 1 after
the word "purity" the words " , specific

gravity";

(b) (i) by omitting subsection one of section

twenty-three and by inserting in lieu

thereof the following subsection:—

(1) The standard of heating power of the gas supplied by a gas company shall be not
less than that prescribed. Such standard

may be of general operation or of specially limited operation in relation to any specified gas companies, times or circumstances.

(ii)   by inserting at the end of subsection two

of the same section the words " o r
ammonia' ';

(iii)   by inserting next after the same subsection the following new subsection:—

(2A) The specific gravity of the gas supplied by a gas company shall not exceed that prescribed.

(iv)   by omitting subsection three of the same

section and by inserting in lieu thereof the

following subsection:— (3) A gas company shall supply gas at such a pressure as will balance a column

of water not less than three inches and not

greater than six inches in height between the hours of five a.m. and nine p.m., and a column of water not less than two inches and not greater than six inches in height between the hours of nine p.m. and five a.m.

Such pressure shall be measured at such point or points as may be prescribed.

(v )

(v)   by omitting from subsection four of the same section the words "and pressure of gas shall be made in accordance with the provisions of Schedule T w o " and by inserting in lieu thereof the words " ,

specific gravity, and pressure of gas shall be made in accordance with such methods

as are prescribed";

(c) (i) by omitting from subsection one of section

twenty-four the words " T h e average of the testings made at a testing place on any two

consecutive days shall be deemed to
represent the heating power of the gas tested on the first of such days at such

testing place ' ' ;

(ii)   by omitting from subsection two of the same

section the word " t e n " and by inserting in

lieu thereof the word " f i f ty" ;

(iii)   by inserting next after the same subsection the following new subsection:—

(2A) Where at any time the specific

gravity of gas tested at any testing place

exceeds that prescribed, the company sup­

plying such gas shall be liable upon sum­ mary conviction to a penalty not exceeding

fifty pounds. One penalty only shall be

incurred by a gas company in respect of

defect of specific gravity on any one day.

(iv) by omitting from subsection three of the

"the minimum or greater than the maximum

and by inserting in lieu thereof the words same section the words "that prescribed"

pressure prescribed in respect of that

t ime ' ' ;

(v)   by omitting from the same subsection the word " t e n " and by inserting in lieu thereof

the word " f i f ty" ;

(d) (i) by inserting in subsection two of section

twenty-five after the word "pur i ty" the

words " , specific gravi ty";

(ii)

(ii)   by omitting from the same subsection the words "Reasonable notice of a proposed testing shall be given to the company concerned and a person appointed by it may be present at the testing";

(iii)   by omitting from subsection four of the same section the word " t e n " and by

inserting in lieu thereof the word " f i f t y " ;

(e) by omitting from subsection three of section twenty-seven the word " f ive" and by inserting

in lieu thereof the word "f if ty".

(2) Part I of the Principal Act is further amended

by inserting in the matter relating to Division 1 of Part

I V after the word "purity" the words " , specific gravity".

(3) Part V I I I of the Principal Act is amended by omitting section eighty-four.

(4) The Principal Act is further amended by omitting Schedule Two.

(5) The amendments made by paragraphs (a) and

(b) and subparagraphs (iii) and (iv) of paragraph (c)

of subsection one, and the amendments made by

subsections two, three and four, of this section shall

commence upon a day to be appointed by the Governor

and notified by proclamation published in the Gazette.

5. Par t V I I I of the Principal Act is further amended—

(a) by omitting section eighty-two and by inserting in lieu thereof the following section:—

82. After the commencement of the Gas and

Electricity (Amendment) Act, 1955, a person

shall not be appointed by a gas company, other

than

than a local authority, to superintend its gas works unless he holds a certificate issued under

section 90B of the Local Government Act, 1919,
as amended by subsequent Acts, or a certificate

of qualification as a gas engineer issued before

that commencement under this Act.

(b)	by omitting from subsection one of section eighty-three the word " t e n " and by inserting in
lieu thereof the word " f i f ty" ;

(c) ( i) by omitting paragraph (g) of subsection one

of section eighty-five;

(ii)   by omitting from subsection two of the same section the word " t e n " and by inserting in lieu thereof the word "f i f ty" .

6 . The Local Government Act, 1919, as amended by subsequent Acts, is amended by inserting in subsection three of section five hundred and sixty-four after the word "delegation" where secondly occurring the words "Notwithstanding that such a request has not been made by a majority in number of the constituent

councils, or by any of them, the Governor may, by proclamation, delegate to the county council
the power to exercise or perform, for the benefit
of the county district, any power or duty which

by law those councils or any one of them may exercise or perform in relation to the establishment,
acquisition and conduct of a trading undertaking for the

and appliances and may include in any such delegation	supply of gas, and the supply and installing of gasfittings
any power or duty, including the power to levy rates or the power to borrow, which, in the opinion of the Governor, is necessary for the exercise or performance
of any such power or duty as is firstmentioned in this
subsection''.

GOVERNMENT