Army and Air Force Canteen Service Regulations (Amendment) 1997 No. 5
EXPLANATORY STATEMENT
STATUTORY RULES 1997 NO. 5
Issued by the Authority of the Minister for Defence Industry, Science and Personnel
Defence Act 1903
Army and Air Force Canteen Service Regulations (Amendment)
The Army and Air Force Canteen Service Regulations (the Principal Regulations), made under the Defence Act 1903, provide for the establishment and operation of the Army and Air Force Canteen Service ("the Canteen Service"). The purposes of the Canteen Service, set out in subregulation 4(3) of the Principal Regulations, include 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 dependants, visitors to the installations, and cadets.
This Statutory Rule makes four amendments which modify the operations of the Canteen Service to enhance its efficiency and commercial viability.
Subregulation 4(1) of the Principal Regulations provides that the Canteen Service is to be known as the "Army and Air Force Canteen Service". The Statutory Rule adds a new subregulation 4(5) to enable the Canteen Service to trade under a different name (with greater commercial focus), provided the name is registered under the relevant State or Territory business names legislation.
The Canteen Service is conducted and controlled by a Board of Management ("the Board"), which is established by regulation 9 of the Principal Regulations. Regulation 10 of the Principal Regulations sets out the composition of the Board. Prior to the Statutory Rule, the Board consisted of: two officers of the Army not below the rank of Major General and two officers of the Air Force not below the rank of Air Vice-Marshal, appointed by their respective chiefs of staff; a public servant employed in the Department of Defence appointed by the Secretary to that Department; three persons appointed by the Minister; and the Managing Director of the Canteen Service. As the limited availability of military officers at the necessary rank level restricted the functioning of the Board, the Statutory Rule reduces the required rank level of the military members of the Board by one rank, to the rank of Brigadier for the Army and Air Commodore for the Air Force. The amendment allows greater flexibility in the military appointments without affecting the structure of the Board.
Regulation 13 of the Principal Regulations sets out the powers, duties and functions of the Board. These include the power to: acquire and dispose of property; sell goods and provide services; open, conduct and close canteens; invest moneys; and enter into contracts. Paragraph 13(j) provided that the Board may, inter alia, establish and maintain, with the approval of the Minister for Finance, schemes for the provision of superannuation or retirement benefits for persons appointed or employed under the Principal Regulations. As the Board has restructured its superannuation scheme as required by the Superannuation Industry (Supervision) Act 1993, the requirement for the Minister for Finance to approve the superannuation scheme was inconsistent with that Act. The Statutory Rule deletes the reference to the approval of the Minister for Finance from paragraph 13(j) of the Principal Regulations.
Until now the Canteen Service has carried out its functions through direct employment by the Board, as there was no provision in the Principal Regulations for the Board to contract out its core functions. This has limited the commercial effectiveness of the Canteen Service. The Statutory Rule adds a new subregulation 13(2), to enable the Board to contract out three core functions: the power to sell goods and merchandise; the power to supply and provide services, entertainment and other amenities; and the power to conduct canteen and other facilities. This amendment allows the Board to operate in line with current trends in business and government enterprises.
The Statutory Rule comes into operation on the date of gazettal.
Overview
The Army and Air Force Canteen Service Regulations (Amendment) 1997 No. 5 was enacted to address operational inefficiencies and commercial limitations within the Army and Air Force Canteen Service, governed under the Defence Act 1903. This Statutory Rule was issued by the authority of the Minister for Defence Industry, Science and Personnel and aims to enhance the efficiency and commercial viability of the Canteen Service. The amendment introduces modifications to the Board of Management's composition and functions, allowing the Canteen Service to trade under a different name and contract out core functions. These changes are designed to align the Canteen Service with current business practices and improve its operational flexibility and effectiveness.
Scope and Application
The Army and Air Force Canteen Service Regulations (Amendment) 1997 No. 5 applies to the Army and Air Force Canteen Service, which operates under the Defence Act 1903 to supply goods, facilities, and services to members of the Army or Air Force, their dependants, visitors, and cadets. The amendment allows the Canteen Service to trade under a different name and modifies the composition and operation of the Board of Management to enhance efficiency and commercial viability. The amendment applies nationally and allows the Board to contract out core functions, which were previously carried out directly by the Board, to improve commercial effectiveness. The amendment does not specify any exclusions, exemptions, or thresholds, and the application of the Act may be extended or restricted through subordinate instruments.
Key Provisions
The Army and Air Force Canteen Service Regulations (Amendment) 1997 No. 5 (the Statutory Rule) makes several amendments to the existing Army and Air Force Canteen Service Regulations, which are made under the Defence Act 1903. These amendments are designed to enhance the efficiency and commercial viability of the Canteen Service, which supplies goods, facilities, and services to members of the Army and Air Force, their dependants, and other authorised individuals. Section 4(1) of the Principal Regulations specifies that the Canteen Service is to be known as the "Army and Air Force Canteen Service." The Statutory Rule introduces a new subregulation 4(5), allowing the Canteen Service to trade under a different name, provided that the new name is registered under the relevant state or territory business names legislation. This change aims to give the Canteen Service greater commercial focus and flexibility.
The Statutory Rule also makes changes to the composition and powers of the Board of Management, which is established under regulation 9 of the Principal Regulations. The Board is responsible for conducting and controlling the Canteen Service. Regulation 10 of the Principal Regulations specifies the composition of the Board, which includes military officers, a public servant, and individuals appointed by the Minister. The Statutory Rule reduces the required rank level of the military members of the Board by one rank, to the rank of Brigadier for the Army and Air Commodore for the Air Force. This amendment aims to allow greater flexibility in the military appointments without affecting the overall structure of the Board. Regulation 13 of the Principal Regulations sets out the powers, duties, and functions of the Board, including the power to acquire and dispose of property, sell goods and provide services, open and close canteens, invest moneys, and enter into contracts. The Statutory Rule removes the requirement for the Minister for Finance to approve the Board's superannuation scheme, which is now regulated under the Superannuation Industry (Supervision) Act 1993. The Statutory Rule also adds a new subregulation 13(2), allowing the Board to contract out three core functions: the power to sell goods and merchandise, the power to supply and provide services, entertainment, and other amenities, and the power to conduct canteen and other facilities. This amendment aims to enable the Board to operate in line with current trends in business and government enterprises, thereby increasing the commercial effectiveness of the Canteen Service.
The Statutory Rule imposes certain obligations and requirements on the parties and entities it governs. The Board of Management must ensure that the Canteen Service operates efficiently and commercially, in line with the amendments introduced by the Statutory Rule. The Board must also ensure that any new trading name adopted by the Canteen Service is registered under the relevant state or territory business names legislation. Additionally, the Board must restructure its superannuation scheme in accordance with the Superannuation Industry (Supervision) Act 1993, without the need for the Minister for Finance's approval. The Board must also ensure that any contracted-out core functions are carried out in a manner consistent with the objectives of the Canteen Service.
There are no specific offences, penalties, or civil/criminal consequences for breach mentioned in the Statutory Rule. However, failure to comply with the obligations and requirements imposed by the Statutory Rule could result in legal consequences, such as legal action being taken against the Board or its members for breach of contract or other legal obligations. The Statutory Rule comes into operation on the date of gazettal, and any failure to comply with its provisions could result in legal action being taken against the Board or its members.