Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 (Qld)

Queensland Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 Subordinate Legislation 2004 No. 303 made under the TransportOperations(PassengerTransport)Act1994 Contents Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Regulation amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Replacement of s 18A (Matters to be considered in deciding amount of compensation—Act, ss 61(4) and 62AAH(4)) . . . . 2 18A Matters to be considered in deciding amount of compensation—Act, ss 61(4), 62AAH(4) and 161(3) . 2 4 Amendment of s 18B (Matters to be considered—Act, s 62AAE(2)(d)) .................................. 4

s1 2 s3 Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 No. 303, 2004 1 Short title This regulation may be cited as the Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 . 2 Regulation amended This regulation amends the Transport Operations (PassengerTransport) Regulation 1994. 3 Replacement of s 18A (Matters to be considered in deciding amount of compensation—Act, ss 61(4) and 62AAH(4)) Section 18A— omit, insert— ‘18A Matters to be considered in deciding amount of compensation—Act, ss 61(4), 62AAH(4) and 161(3) ‘(1) This section applies if an arbitrator is deciding an amount of compensation under section 61(3), 62AAH(3) or 161(2) 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(3)—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 were previously provided by an affected operator who is a party to the arbitration; (c) for deciding compensation under section 161(2)—the present value of the future maintainable profits or future cash flows of services of the kind provided for in the invitation to offer for a Translink service contract that were previously provided by the service contract holder;

s3 3 s3 Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 No. 303, 2004 (d) the capitalisation of future maintainable profits or the discounting of future cash flows as the principal valuation methodology; (e) the definition future maintainable profits in subsection (4) when selecting the appropriate capitalisation rate to apply to the future maintainable profits; (f) the definition future cash flows in subsection (4) when selecting the appropriate discount rate to apply to the future cash flows; (g) relevant risk factors including the life of the contract; (h) 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 or, for deciding compensation under section 161(2), additional costs incurred by the service contract holder in relation to the termination of the holder’s service contract, including, for example, costs of or in relation to the following— (i) advisers; (ii) emotional distress; (iii) loss of employment, lifestyle 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, or the services provided for in the invitation to offer for a Translink service contract; (d) economies of scale and operating efficiencies available to a new operator but not able to be achieved or accrued

s4 4 s4 Transport Operations (Passenger Transport) Amendment Regulation (No. 3) 2004 No. 303, 2004 by the existing or affected operator or service contract holder. ‘(4) In this section— 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) owner’s 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.’. 4 Amendment of s 18B (Matters to be considered—Act, s 62AAE(2)(d)) Section 18B, ‘62AAE(d)’— omit, insert— ‘62AAE(2)(d)’. ENDNOTES 1 Made by the Governor in Council on 16 December 2004. 2 Notified in the gazette on 17 December 2004. 3 Laid before the Legislative Assembly on . . . 4 The administering agency is the Department of Transport.

© State of Queensland 2004