Australian Capital Territory (Self-Government) Regulations (Amendment) 1997 No. 267
EXPLANATORY STATEMENT
Statutory Rules 1997 No. 267
Issued by the Authority of the Minister for Sport, Territories and Local Government
Australian Capital Territory (Self-Government) Act 1988
Australian Capital Territory (Self-Government) Regulations (Amendment)
Section 74 of the Australian Capital Territory (Self-Government) Act 1988 (the Act) provides for the Governor-General to make Regulations prescribing matters required or permitted to be prescribed by the Act.
As part of the establishment of a National Electricity Market, South Australia has enacted and each other participating jurisdiction will apply the National Electricity Law. This Will allow the. market to operate as if all areas were one jurisdiction. At present the participating jurisdictions are Victoria, South Australia, New South Wales, Queensland and the Australian Capital Territory.
Section 70 of the National Electricity Law refers to the operation of the Corporations Law in respect of monies in funds established for the administration of the electricity market. Under section 23(1)(h) of the Act, the ACT Legislative Assembly has no power to make laws with respect to the matters that are the subject of the laws in force in the ACT relating to, amongst other things, companies.
Subsection 23(2) provides that the regulations may omit or reduce the scope of any of the paragraphs in subsection 23(1).
The purpose of the Australian Capital Territory (Self-Government) Regulations (Amendment) is to modify the scope of subsection 23(1) to allow section 70 of the National Electricity Law to operate when the ACT Legislative Assembly adopts that Law.
The Heads of Agreement on Future Corporate Regulation in Australia, reached between the Commonwealth and the States/Northern Territory in 1990, provides the basis for the national companies and securities scheme. That agreement (and the draft Corporations Agreement) requires the Commonwealth to notify members of the Minsterial Council for Corporations of any proposed laws which would alter the effect, scope or operation of the Corporations Law. This notification process has been duly undertaken and completed.
Clause 1 provides that the Australian Capital Territory (Self-Government) Regulations are amended as set out in these Regulations.
Clause 2 inserts a new subregulation which excludes from section 23(1)(h) of the Act any law which applies section 70 of the National Electricity Law as a law of the Territory.
Overview
The Australian Capital Territory (Self-Government) Regulations (Amendment) 1997 No. 267 was enacted to address the specific legislative gap that arose from the implementation of the National Electricity Market (NEM). The NEM requires participating jurisdictions, including the Australian Capital Territory (ACT), to adopt the National Electricity Law, which includes provisions related to the operation of the Corporations Law in respect of funds for the administration of the electricity market. However, under section 23(1)(h) of the Australian Capital Territory (Self-Government) Act 1988, the ACT Legislative Assembly lacks the power to legislate on matters concerning companies, which are covered by the Corporations Law. To facilitate the adoption of the National Electricity Law while maintaining compliance with the ACT’s legislative limitations, these Regulations were introduced. The policy objective is to enable the seamless operation of the NEM by modifying the scope of the relevant legislative restrictions, thereby allowing the ACT to adopt and implement the National Electricity Law without conflicting with existing legal frameworks.
Scope and Application
The Australian Capital Territory (Self-Government) Regulations (Amendment) 1997 No. 267 modifies the existing regulations to allow the Australian Capital Territory Legislative Assembly to adopt the National Electricity Law without conflicting with its legislative powers under the Australian Capital Territory (Self-Government) Act 1988. The Act applies to the Australian Capital Territory and its legislative assembly, allowing them to adopt certain laws related to the National Electricity Market. The amendment ensures that the adoption of the National Electricity Law does not infringe upon the legislative powers of the ACT Legislative Assembly by excluding the application of the Corporations Law as specified in section 70 of the National Electricity Law. This amendment extends the application of the National Electricity Law within the ACT, facilitating the seamless operation of the National Electricity Market across participating jurisdictions, including Victoria, South Australia, New South Wales, Queensland, and the Australian Capital Territory. The amendment respects the jurisdictional boundaries and legislative frameworks established by the Heads of Agreement on Future Corporate Regulation in Australia, ensuring that the changes are communicated and agreed upon by the relevant authorities.
Key Provisions
The main operative sections of the Australian Capital Territory (Self-Government) Regulations (Amendment) 1997 No. 267 involve the modification of the scope of subsection 23(1) of the Australian Capital Territory (Self-Government) Act 1988. Specifically, section 74 of the Act allows the Governor-General to make Regulations prescribing matters required or permitted by the Act. Clause 2 of the Amendment Regulations inserts a new subregulation to exclude any law applying section 70 of the National Electricity Law from section 23(1)(h) of the Act, thereby allowing the ACT Legislative Assembly to adopt the National Electricity Law without conflict with existing ACT laws concerning companies.
The obligations imposed by these Regulations on the parties and entities they govern primarily concern the alignment and operation of the National Electricity Market across participating jurisdictions, including Victoria, South Australia, New South Wales, Queensland, and the Australian Capital Territory. These obligations ensure that the adoption of the National Electricity Law does not contravene existing laws within the ACT concerning companies. The Regulations also necessitate compliance with the Heads of Agreement on Future Corporate Regulation in Australia, which mandates the Commonwealth to notify members of the Ministerial Council for Corporations of any proposed laws altering the Corporations Law. This requirement ensures that the changes proposed by the Amendment Regulations are communicated and considered within the national framework.
Any breaches of the provisions outlined in the Amendment Regulations could result in significant legal consequences. Specifically, the Regulations may be subject to scrutiny and enforcement actions if they are found to contravene the broader national companies and securities scheme, or if they fail to comply with the notification processes outlined in the Heads of Agreement on Future Corporate Regulation in Australia. While the specific civil or criminal penalties are not detailed in the Amendment Regulations themselves, non-compliance with the broader legislative framework could lead to penalties under the relevant national laws, including financial penalties and other sanctions as deemed appropriate by the courts or regulatory bodies.