Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 (Qld)

Queensland Subordinate Legislation 2004 No. 98 Transport Operations (Passenger Transport) Act 1994 TRANSPORT OPERATIONS (PASSENGER TRANSPORT) AMENDMENT REGULATION (No. 1) 2004 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 Amendment of s 18 (Matters to be considered—Act, s 59(2)(e)). . . . . . . . . 2 5 Replacement of s 18A (Matters to be considered—Act, s 61(4)) . . . . . . . . . 2 18A Matters to be considered in deciding amount of compensation— Act, ss 61(4) and 62AAH(4) .......................... 2 6 Insertion of new s 18B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 18B Matters to be considered—Act, s 62AAE(2)(d) . . . . . . . . . . . . . . . . 4 7 Amendment of s 66A (Operation of Brisbane Airport Rail Link) . . . . . . . . 4

s1 2 s5 Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 No. 98, 2004 1 Short title This regulation may be cited as the Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 . 2 Commencement Section 7 commences on 1 July 2004. 3 Regulation amended This regulation amends the Transport Operations (Passenger Transport)Regulation 1994. 4 Amendment of s 18 (Matters to be considered—Act, s 59(2)(e)) Section 18(a), (b) and (c), ‘; and’— omit, insert— ‘;’. 5 Replacement of s 18A (Matters to be considered—Act, s 61(4)) Section 18A— omit, insert— ‘18A Matters to be considered in deciding amount of compensation—Act, ss 61(4) and 62AAH(4) ‘ (1) This section applies if an arbitrator is deciding an amount of compensation under section 61(3) or 62AAH(4) of the Act. ‘ (2) The arbitrator must consider the following— (a) for deciding compensation under section 61(3)—the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new service contract that were previously provided by an existing operator or service contract holder who is a party to the arbitration; (b) for deciding compensation under 62AAH(4)—the present value of the future maintainable profits or future cash flows of services of the kind provided for in the new Translink service contract that

s5 3 s5 Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 No. 98, 2004 were previously provided by an affected operator who is a party to the arbitration; (c) the capitalisation of future maintainable profits or the discounting of future cash flows as the principal valuation methodology; (d) the definition “future maintainable profits” in subsection (4) when selecting the appropriate capitalisation rate to apply to the future maintainable profits; (e) the definition “future cash flows” in subsection (4) when selecting the appropriate discount rate to apply to the future cash flows; (f) relevant risk factors including the life of the contract; (g) the value of the services derived using implied revenue multiples or other customary industry benchmarks. ‘ (3) The arbitrator must not consider the following— (a) capital gains tax; (b) additional costs incurred by the existing or affected operator or service contract holder that are not related to the services acquired by the new operator including, for example, costs of or in relation to the following— (i) advisers; (ii) emotional distress; (iii) loss of employment, life style or public standing; (iv) mortgage or loan foreclosures; (v) relocation; (c) income and expenses from activities, such as tourist and charter bus services, that are outside the scope of the new service contract; (d) economies of scale and operating efficiencies available to a new operator but not able to be achieved or accrued by the existing or affected operator or service contract holder. ‘ (4) In this section—

s6 4 s7 Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 No. 98, 2004 “future cash flows” means future maintainable profits adjusted for depreciation and capital expenditure. “future maintainable profits” means earnings before financial leases, interest and tax determined on the basis of past profits adjusted for the following— (a) abnormal or exceptional revenue or expense items; (b) owners remuneration; (c) variations in accounting standards application; (d) future changes to revenues and costs resulting from announced changes to government policy including, for example, changes in policy about— (i) school payment rates; and (ii) subsidy arrangements; and (iii) average vehicle age.’. 6 Insertion of new s 18B After section 18A— insert— ‘18B Matters to be considered—Act, s 62AAE(2)(d) ‘The following matters are prescribed for section 62AAE(d) of the Act 1 — (a) evidence that proposed minimum service levels will be achieved; (b) evidence of financial viability; (c) overall suitability of vehicles, having regard to vehicle age and accessibility.’. 7 Amendment of s 66A (Operation of Brisbane Airport Rail Link) Section 66A(1), ‘section 116(2)(b)’ and footnote— 1 Section 62AAE (Matters to be considered generally when considering offers for Translink service contracts) of the Act

s7 5 s7 Transport Operations (Passenger Transport) Amendment Regulation (No. 1) 2004 No. 98, 2004 omit, insert— ‘section 111(2)(d) 2 ’. ENDNOTES 1. Made by the Governor in Council on 24 June 2004. 2. Notified in the gazette on 25 June 2004. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Transport. © State of Queensland 2004 2 Section 111 (Appointment of authorised persons etc.) of the Act