EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 157
Issued by the Authority of the Minister for Transport and Communications
Subject - Australian Postal Corporation Act 1989
Australia Post (Capital) Regulations
Section 102 of the Australian Postal Corporation Act 1989 (the Corporation Act) provides that the Governor-General may make regulations, not inconsistent with the Corporation Act, prescribing matters required or permitted by the Corporation Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Corporation Act.
Section 69 of the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989 (the Transition Act) provides that, subject to any regulations made under the Corporation Act, section 74 of the Postal Services Act 1975 (the old Act), as in force immediately before the commencement of section 69, continues to have effect as if the old Act had not been repealed. The old Act was repealed by section 75 of the Transition Act on 1 July 1989.
Section 74 of the old Act provides for the determination of the value of the assets and liabilities of the former Australian Postal Commission, now the Australian Postal Corporation (Australia Post). The amount by which the assets, determined under paragraph 74(1)(a) of the old Act, exceeds the liabilities, determined under paragraph 74(1)(b) of the old Act, represents what are known as the vesting day loans payable by Australia Post to the Commonwealth at such times and by such instalments as the Minister for Finance from time to time determines.
Section 51 of the Corporation Act provides that the Minister shall, as soon as practicable after the commencement of the Corporation Act and after consultation with the Board of Directors of Australia Post, determine the amount of Australia Post’s initial capital under the Corporation Act. The Corporation Act commenced on 1 July 1989.
It is intended that the outstanding vesting day loans payable by Australia Post to the Commonwealth under section 74 of the old Act will be determined by the Minister to be Australia Post’s initial capital under subsection 51(1) of the Corporation Act. The Regulations enable the making of this determination by eliminating the outstanding loans,
which amount to $28.4 million. The Prime Minister approved the conversion of the loans to equity in a letter dated 8 May 1990.
Details of the Regulations are as follows:
Regulation 1 cites the Regulations as the Australia Post (Capital) Regulations.
Regulation 2 provides that the Regulations commence on 30 June 1990.
Regulation 3 provides that section 74 of the old Act continues to have effect in relation to Australia Post, as if the value of the assets determined under paragraph 74(1)(a) of the old Act, and the value of the liabilities determined under paragraph 74(1)(b) of that Act, less any repayments made by Australia Post, are equal. This balancing of Australia Post’s assets and liabilities eliminates the vesting day loans.
The Regulations commence on 30 June 1990.