Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1) 2001 No. 32
EXPLANATORY STATEMENT
STATUTORY RULES 2001 No. 32
Issued by the Authority of the Minister for Defence
Defence Act 1903
Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1)
The attached Regulations ate made under subsection 124(1) of the Defence Act 1903. Subsection 124(1) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed, for securing the good government of the Defence Force, and for among other things carrying out or giving effect to the establishment, management, operation and control of canteens.
The attached Regulations amend paragraph 10(6)(d) the Army and Airforce Canteen Service Regulations 1959 (the AAFCANS Regulations) to reflect amendments made to the Commonwealth Authorities and Companies Act 1997 (the CAC Act) by the Corporate Law Economic Reform Program Act 1999 (the CLERP Act).
Paragraph 10(1)(d) of the AAFCANS Regulations provides for the Minister to appoint three of the eight members of the Board of Management of the Canteens Service. Paragraph 10(6)(d) provided that the Minister shall terminate the appointment of a member referred to in paragraph 10(1)(d) if he or she fails, without reasonable excuse, to comply with his or her obligations under section 21 of the CAC Act (Disclosures by board members of material personal interests).
Section 21 of the CAC Act was repealed by the CLERP Act. New sections 27F (Disclosure of, and voting on, matters involving material personal interests of Board members) and 27J (Restrictions on attendance and voting at Board meetings) of the Act deal with the same issues as section 21 but provide additional guidance.
This additional guidance includes clear directions as to when a notice of an interest is and is not required, the details a notice of an interest must include and clarification of instructions as to when and how a director of a Commonwealth Authority, who has a material personal interest in a matter that is being deliberated at a board meeting, may be present and vote on the matter.
The attached Regulations omit the reference to section 21 of the CAC Act in paragraph 10(6)(c) of the AAFCANS Regulations and substitute a reference to sections 27F and 27J of the CAC Act.
Details of the amendments are as follows:
Regulation 1
This names the Regulations as the Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1).
Regulation 2
This provides that the Regulations are to commence on gazettal.
Regulation 3
This provides that Schedule 1 to the Regulations amends the AAFCANS Regulations.
Schedule 1
This provides for the omission of the reference to section 21 of the CAC Act in paragraph 10(6)(c) of the AAFCANS Regulations and the substitution of a reference to sections 27F and 27J of the CAC Act.
Overview
The Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1) were enacted to address the need for updating the Army and Air Force Canteen Service Regulations 1959 in light of changes made by the Corporate Law Economic Reform Program Act 1999. These regulations were issued by the authority of the Minister for Defence under subsection 124(1) of the Defence Act 1903, which allows for the making of regulations necessary or convenient to govern the Defence Force, including the management of canteens. The policy objective of these amendments is to ensure the Board of Management of the Canteens Service adheres to the most current legislative requirements concerning the disclosure and management of material personal interests by board members. This is achieved by replacing outdated references to repealed sections of the Commonwealth Authorities and Companies Act 1997 with updated sections that provide additional guidance on disclosures and voting restrictions.
Scope and Application
The Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1) apply to the Army and Air Force Canteen Service (AAFCANS), specifically affecting the appointment and obligations of the members of the Board of Management of the Canteens Service under the Defence Act 1903. These regulations are necessary to align the AAFCANS Regulations 1959 with the changes introduced by the Corporate Law Economic Reform Program Act 1999, which repealed section 21 of the Commonwealth Authorities and Companies Act 1997 and introduced new provisions in sections 27F and 27J of the same Act. The scope of these regulations is limited to the management and operational governance of the Canteens Service within the Defence Force, and they are applicable nationally across Australia as they pertain to a Commonwealth authority. There are no specific exclusions or exemptions stated within the text, but the application is restricted to the context of the Canteens Service. The regulations do not extend or restrict their application beyond what is necessary to implement the legislative changes.
Key Provisions
The Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1) (paragraphs 1 to 3) identify the name of the Regulations, their commencement date, and the provisions that will be amended by Schedule 1. Schedule 1 specifically amends the Army and Air Force Canteen Service Regulations 1959 by replacing the reference to section 21 of the Commonwealth Authorities and Companies Act 1997 (CAC Act) with references to sections 27F and 27J of the same Act. This amendment ensures that the Canteen Service's governance framework aligns with the more recent legislative changes regarding the disclosure and management of material personal interests of board members.
The Regulations impose several obligations on the parties governed by them, primarily focusing on the management of the Canteen Service. Under the amended Army and Air Force Canteen Service Regulations 1959 (paragraph 10(6)(d)), the Minister for Defence is required to terminate the appointment of a board member if they fail to comply with the new disclosure requirements set out in sections 27F and 27J of the CAC Act. These sections provide detailed guidelines on when a board member must disclose a material personal interest, the information that must be included in such disclosures, and the circumstances under which a board member with a material personal interest may attend and vote on related matters. The Regulations ensure that the Canteen Service adheres to these requirements to maintain transparency and integrity in its governance.
Breaches of the amended provisions could lead to serious consequences for non-compliance. Although the Regulations themselves do not specify penalties, the underlying CAC Act includes provisions for both civil and criminal penalties. Under the CAC Act, failure to comply with the disclosure requirements can result in civil penalties, including fines, and criminal penalties, including imprisonment. The specific penalties depend on the nature and severity of the breach but can be significant, reflecting the importance of compliance with these governance standards.
In summary, the Army and Air Force Canteen Service Amendment Regulations 2001 (No. 1) update the governance framework of the Canteen Service to align with the more detailed disclosure and voting requirements introduced by the CLERP Act. These Regulations impose obligations on the Minister and board members to ensure compliance with the updated legal standards. Non-compliance can lead to severe civil and criminal penalties, underscoring the importance of adhering to these provisions.