EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 54
Issued by the authority of the Minister for Veterans’ Affairs
Defence Act 1903
Army and Air Force Canteen Service Amendment Regulations 2007 (No. 1)
Subsection 124(1) of the Defence Act 1903 (the Act) provides, in part, that the Governor-General may make Regulations, not inconsistent with the Act, prescribing all matters which by the Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for securing the good government of the Defence Force, or for carrying out or giving effect to the Act. Without limiting the generality of subsection 124(1) of the Act, paragraph 124(1)(o) provides that regulations may be made prescribing matters providing for and in relation to the establishment, management, operation and control of canteens and messes.
The Army and Air Force Canteen Service Regulations 1959 (the Principal Regulations) made under the Act provide for the establishment and operation of the Army and Air Force Canteen Service (AAFCANS). The purpose of AAFCANS includes the supply of goods, facilities and services to, or for the recreation of, members of the Army or Air Force and persons employed in Army or Air Force installations, their dependents, visitors to the installations and cadets. The Principal Regulations also establish a Board of Management which is constituted by two officers of the Army not below the rank of Brigadier appointed by the Chief of Army, two officers of the Air Force, not below the rank of Air Commodore, appointed by the Chief of Air Force, three persons appointed by the Minister and the Managing Director.
The Regulations reduce the size of the Board from eight members to six, with a reduction in the number of members necessary to constitute a quorum of the Board.
In the “Review of the Corporate Governance of Statutory Authorities and Office Holders” by Mr John Uhrig (the Uhrig Report) there was, inter alia, a recommendation that there should be two templates which are designed to ensure good governance: one where governance can be provided best by executive management, and the other where it can be provided best by a board.
After an assessment of AAFCANS against the governance templates, the Government endorsed the recommendation in the Uhrig Report that the board template be applied to AAFCANS and its Board be restructured by reducing the number of members from eight to six, removing two of the Service Chiefs’ nominees (currently four) to improve its commercial/business focus.
As a consequence of the reduction in the size of the Board, the number of board members necessary to constitute a quorum is reduced from five to three members and requires only one Service Chief nominee in the quorum.
In addition, the Regulations make consequential amendments to the Principal Regulations that align them with the Act. The Defence Legislation Amendment Act 2006 (the DLA Act) received Royal Assent on 11 December 2006 and, among other things, established the Australian Military Court. In doing so, the DLA Act removed the concept of trials by Court martial and Defence Force magistrate. References throughout the Act to “court martial” were replaced with references to “the Australian Military Court”.
The amendments remove the reference to “a court martial” in regulation 26 (which relates to loss, damage or destruction of property of the Board by a member) of the Principal Regulations and replace it with the words “the Australian Military Court”.
Details of the Regulations are outlined in the Attachment.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Regulations 1 to 3 and Schedule 1 commence on the day after registration. Schedule 2, which includes the Australian Military Court change commences on the commencement of Schedule 1 to the DLA Act (a day to be fixed by Proclamation or 1 October 2007).
The Department of Finance and the Board of the Army and Air Force Canteen Service have been consulted in the making of this instrument.
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Attachment
Details of Army and Air Force Canteen Service Amendment Regulations 2007 (No. 1)
Regulation [1] identifies these Regulations as the Army and Air Force Canteen Service Amendment Regulations 2007 (No. 1).
Regulation [2] provides that regulations 1 to 3 and Schedule 1 commence on the day after they are registered and Schedule 2 on the commencement of Schedule 1 to the Defence Legislation Amendment Act 2006.
Regulation [3] provides that the amendments to the Army and Air Force Canteen Service Regulations 1959 (the Principal Regulations) are contained in Schedule 1 and Schedule 2.
Schedule 1
Item [1] amends paragraphs 10(1) (a) and (b) by omitting the number and word “2 officers” and inserting the number and word “1 officer”. The Board now consists of one officer of the Army not below the rank of Brigadier appointed by the Chief of Army, one officer of the Air Force not below the rank of Air Commodore appointed by the Chief of Air Force, three persons appointed by the Minister, at least two of whom have had extensive business experience or commercial experience and the Managing Director.
Item [2] amends subregulation 12(4) by providing that a quorum of the Board is constituted by 3 members with at least one of the members being a member referred to in paragraph 10(1) (a) or (b).
Schedule 2
Item [1] amends regulation 26 by omitting the reference to a “court martial” and substitutes a reference to the “Australian Military Court”.