EXPLANATORY STATEMENT
Issued by Authority of the Minister for Finance and Deregulation
AIDC Sale Act 1997
Proclamation
Subsection 2(2) of the AIDC Sale Act 1997 (Sale Act) provides for Schedule 2 to that Act to commence on a day to be fixed by Proclamation, and specifies that this must not be earlier than the day on which the Minister gives the Governor-General a written certificate stating that the Minister is satisfied that the Australian Industry Development Corporation (the Corporation) has no assets and no liabilities.
The purpose of the Proclamation is to fix 22 April 2011 as the day on which Schedule 2 to the Sale Act commences. This Schedule repeals the Australian Industry Development Corporation Act 1970 (AIDC Act).
The repeal of the AIDC Act is the culmination of a winding down process for the Corporation which commenced with the sale of the majority of the subsidiaries comprising the AIDC Ltd Group in September 1997. The sole remaining commercial financing arrangement of the Corporation was concluded with the redemption in September 2010 of private sector commercial bonds for which the Corporation had provided a fee earning guarantee. Ministerial Declarations under the AIDC Act have transferred the cash and contingent assets of the Corporation to the Commonwealth of Australia.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The AIDC Sale Act 1997 was enacted to formalise the final stages of the Australian Industry Development Corporation's (AIDC) winding down process. This Act was introduced to address the issue of dissolving the Corporation and managing its remaining assets and liabilities. The Proclamation issued under Subsection 2(2) of the Act specifies that Schedule 2, which repeals the Australian Industry Development Corporation Act 1970, would commence on 22 April 2011. This date was chosen following the Minister's confirmation that the Corporation had no assets or liabilities left, marking the end of its operations. The Minister's written certificate to the Governor-General was a critical step in this process, ensuring that all commercial obligations were settled, including the redemption of commercial bonds in September 2010. This legislative action is part of a broader strategy to transfer the Corporation's remaining assets to the Commonwealth and formally dissolve the entity. The Proclamation is recognised as a legislative instrument under the Legislative Instruments Act 2003.
Scope and Application
The AIDC Sale Act 1997, as amended by the proclamation, applies to the Australian Industry Development Corporation (the Corporation), which is now in the process of being wound down and liquidated. The Act governs the final steps of this process by repealing the Australian Industry Development Corporation Act 1970 (AIDC Act). This legislative change follows the sale of the majority of the subsidiaries of the AIDC Ltd Group in 1997 and the redemption in 2010 of the remaining private sector commercial bonds for which the Corporation had provided a fee-earning guarantee. The proclamation fixes 22 April 2011 as the commencement date for Schedule 2, which officially repeals the AIDC Act and signifies the completion of the Corporation's liquidation process. This Act applies solely to the Corporation and its remaining assets and liabilities, ensuring a formal end to its operations. The Act's jurisdictional reach is limited to the Commonwealth of Australia, and there are no specific exclusions or thresholds outlined in the proclamation itself. However, the Act's application may be further defined or extended through subordinate instruments, which could provide additional detail on the implementation and administration of the liquidation process.
Key Provisions
The key provisions of the AIDC Sale Act 1997 as set out in the Proclamation (subs 2(2)) involve the commencement of Schedule 2, which repeals the Australian Industry Development Corporation Act 1970 (AIDC Act) on 22 April 2011. This commencement is contingent upon the Minister providing a written certificate to the Governor-General, verifying that the Australian Industry Development Corporation (the Corporation) is devoid of assets and liabilities (sub 2(2)). The Act marks the conclusion of a winding-down process that began in September 1997 with the sale of most subsidiaries within the AIDC Ltd Group. The final step in this process was the redemption in September 2010 of private sector commercial bonds for which the Corporation had provided a fee-earning guarantee.
The Act imposes specific obligations on the Minister, who must ensure that the Corporation has no remaining assets or liabilities before issuing the necessary certificate to the Governor-General. This certificate is critical, as it triggers the commencement of Schedule 2, thereby effecting the repeal of the AIDC Act. Additionally, Ministerial Declarations under the AIDC Act are mentioned, which have already transferred the Corporation's cash and contingent assets to the Commonwealth of Australia, further solidifying the transition process.
Under the Act, any breach of the conditions set out in the Proclamation, such as premature commencement of Schedule 2 or failure to ensure the Corporation has no assets or liabilities, could lead to significant legal consequences. Although the specific offences, penalties, or civil/criminal consequences are not detailed in the Proclamation itself, any non-compliance could result in legal actions to enforce the conditions laid out in the Act. The exact penalties for such breaches would depend on the nature and severity of the violation and could potentially involve legal proceedings to rectify the non-compliance. The Act serves as a legislative instrument under the Legislative Instruments Act 2003, ensuring that all actions taken are in accordance with established legal frameworks.