Australian National Airlines Act 1959

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au C1959A00003 In force Act

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AUSTRALIAN NATIONAL AIRLINES.

 

No. 3 of 1959.

An Act to amend the Australian National Airlines Act 1945–1958, and for other purposes.

[Assented to 21st April, 1959.]

BE it enacted by the Queens Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Australian National Airlines Act 1959.

(2.) The Australian National Airlines Act 1945–1958 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Australian National Airlines Act 1945–1959.

Commencement.

2.—(1.) Subject to the next succeeding sub-section, this Act shall come into operation on the day on which it receives the Royal Assent.

(2.) Sections thirteen, twenty, twenty-one and twenty-two of this Act shall come into operation on a date to be fixed by Proclamation.

3. Section three of the Principal Act is repealed and the following section inserted in its stead:—

Parts.

3. This Act is divided into Parts, as follows:—

Part I.—Preliminary (Sections 1–5).

Part II.—The National Airline Services.

Division 1.—Establishment and Constitution of the Australian National Airlines Commission (Sections 6–18b).

Division 2.—Powers, Functions and Duties of the Commission (Sections 19–29).

Division 3.—Finances of the Commission (Sections 30–38).

Division 4.—Reports (Sections 40–41).

Part VI.—Penalties and Procedure (Sections 60–63).

Part VII.—Miscellaneous (Sections 65–70)..

Definitions.

4. Section four of the Principal Act is amended—

(a) by omitting the definition of Acting Commissioner and inserting in its stead the following definition:—

“‘Acting Commissioner means a person appointed under section ten of this Act to act as a Commissioner;;


(b) by omitting the definitions of adequate airline service,

Chairman, contractor and owner;

(c) by inserting after the definition of Territorial airline service the following definition:—

“‘the Chairman means the Chairman of the Commission, and includes a Commissioner acting as Chairman under section ten of this Act;; and

(d) by omitting the definition of the licensing authority and inserting in its stead the following definition:—

“‘ the Vice-Chairman means the Vice-Chairman of the Commission, and includes a Commissioner appointed under section ten of this Act to act as the Vice-Chairman;.

Australian National Airlines Commission.

5. Section six of the Principal Act is amended by adding at the end thereof the following sub-section:—

(5.) The exercise or performance of the powers or functions of the Commission is not affected by reason only of there being a vacancy in the office of a Commissioner.

Composition of Commission.

6. Section seven of the Principal Act is amended by omitting from sub-section (1.) the words five Commissioners and inserting in their stead the words six Commissioners.

7.—(1.) Section eight of the Principal Act is repealed and the following section inserted in its stead:—

Term of office of Commissioners.

8.—(1.) A Commissioner shall be appointed to hold office for a period not exceeding five years.

(2.) A Commissioner is eligible for re-appointment..

(2.) The last preceding sub-section does not affect the term of office of a Commissioner holding office at the commencement of this section.

8.—(1.) Sections nine to fifteen (inclusive) of the Principal Act are repealed and the following sections inserted in their stead:—

Remuneration of Commissioners.

9. A Commissioner shall be paid such remuneration and allowances as the Governor-General determines.

Absence of Commissioners.

10.—(1.) Where the Minister grants leave of absence to a Commissioner under the next succeeding section, the Minister may appoint a person to act as a Commissioner during that absence, and a person so appointed has all the powers and functions of a Commissioner.

(2.) Where the Minister grants leave of absence to the Chairman of the Commission under the next succeeding section, the Vice-Chairman shall act as Chairman during the absence.


(3.) Where the Minister grants leave of absence to the Vice-Chairman of the Commission under the next succeeding section, or where the Vice-Chairman is or will be acting as Chairman, the Commission may appoint a Commissioner (other than an Acting Commissioner) to act as Vice-Chairman during the absence, or during the period for which the Vice-Chairman acts as Chairman, as the case may be.

Leave of absence.

11. The Minister may grant leave of absence to a Commissioner upon such terms and conditions as to remuneration or otherwise as the Minister determines.

Dismissal of Commissioner.

12. The Governor-General may terminate the appointment of a Commissioner for inability, inefficiency or misbehaviour.

Resignation of Commissioners.

13. A Commissioner or an Acting Commissioner may resign his office by writing under his hand addressed to the Governor-General or the Minister, as the case may be, but the resignation is not effective unless it has been accepted by the Governor-General or the Minister, as the case may be.

Vacation of office.

14.—(1.) If a Commissioner—

(a) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of his remuneration for their benefit;

(b) is absent, except on leave granted by the Minister, from three consecutive meetings of the Commission; or

(c) fails to comply with his obligations under the next succeeding sub-section,

the Governor-General shall, by notice in the Gazette, declare that the office of the Commissioner is vacant, and thereupon the office shall be deemed to be vacant.

(2.) A Commissioner who is directly or indirectly interested in a contract made or proposed to be made by the Commission, otherwise than as a member, and in common with the other members, of an incorporated company consisting of not less than twenty-five persons, shall, as soon as possible after the relevant facts have come to his knowledge, disclose the nature of his interest at a meeting of the Commission.

(3.) A disclosure under the last preceding sub-section shall be recorded in the minutes of the Commission, and the Commissioner—

(a) shall not take part after the disclosure in any deliberation or decision of the Commission with respect to that contract; and

(b) shall be disregarded for the purpose of constituting a quorum of the Commission for any such deliberation or decision.


(4.) Sub-section (2.) of this section does not apply in relation to a contract between a Commissioner and the Commission for the carriage of the Commissioner or another person or of any goods.

Meetings of Commission.

15.—(1.) The Commission shall hold such meetings as, in the opinion of the Chairman, are necessary for the efficient conduct of its affairs.

(2.) The Minister may at any time convene a meeting of the Commission.

(3.) The Chairman shall, on receipt of a written request signed by not less than two Commissioners, call a meeting of the Commission.

(4.) The Chairman shall preside at all meetings of the Commission at which he is present.

(5.) In the event of the absence of the Chairman from a meeting of the Commission, the Vice-Chairman shall preside at that meeting.

(6.) In the event of the absence of both the Chairman and the Vice-Chairman from a meeting of the Commission, the Commissioners present shall appoint one of their number to preside at that meeting.

(7.) At a meeting of the Commission, three Commissioners constitute a quorum.

(8.) A question arising at a meeting of the Commission shall be determined by a majority of the votes of the Commissioners present.

(9.) The person presiding at a meeting of the Commission has a deliberative vote and, in the event of an equality of votes, also has a casting vote.

(10.) The general manager shall, as far as practicable, attend all meetings of the Commission but, if the Commission so directs, he shall retire from a meeting..

(2.) A determination under section nine of the Principal Act, as amended by this Act, may have effect on or from a date not earlier than the first day of July, One thousand nine hundred and fifty-seven.

Appointment of officers.

9. Section seventeen of the Principal Act is amended—

(a) by omitting sub-section (4.) and inserting in its stead the following sub-section:—

(4.) The regulations may provide that persons who possess prescribed educational qualifications may, notwithstanding the provisions of the last


preceding sub-section, but subject to such conditions (if any) as are prescribed, be appointed to clerical offices in the Service of the Commission without having passed the prescribed entrance examination, and such persons may be appointed accordingly.; and

(b) by omitting from sub-section (7.) the words Fifteen hundred pounds and inserting in their stead the words Two thousand five hundred pounds.

Intra-state services in pursuance of powers referred by State Parliaments.

10.—(1.) Section nineteen a of the Principal Act is amended by omitting from sub-section (1.) the words prior to the commencement of this section and inserting in their stead the words prior to the commencement of section ten of the Australian National Airlines Act 1959”.

(2.) On and after the date of commencement of this section, the provisions of the Principal Act, as amended by the provisions of this Act that come into operation on that date, in their application to or in relation to airline services referred to in section nineteen a of that Act, as so amended, shall be deemed to have effect by virtue of this Act.

Power to purchase and dispose of assets.

11. Section twenty-one of the Principal Act is amended by omitting sub-sections (2.) and (3.) and inserting in their stead the following sub-sections:—

(2.) The Commission shall not, without the approval of the Minister—

(a)purchase any land for a consideration exceeding Twenty thousand pounds;

(b) enter into a lease of land for a period exceeding ten years; or

(c) dispose of any property, right or privilege where the consideration for the disposal, or the value of the property, right or privilege, exceeds Fifty thousand pounds.

(3.) The Commission shall not, without the approval of the Minister, enter into a contract for the supply of aircraft, equipment or materials to the Commission for a consideration exceeding Fifty thousand pounds..

Contracts for transport of mails.

12. Section twenty-two of the Principal Act is amended by omitting the words the Minister on behalf of.

Commission to be common carrier.

13. Section twenty-four of the Principal Act is repealed.


Capital of the Commission.

14. Section thirty of the Principal Act is amended by omitting from sub-section (1.) the word more and inserting in its stead the word those.

15. Sections thirty-three, thirty-four, thirty-five and thirty-six of the Principal Act are repealed and the following sections inserted in their stead:—

Bank accounts.

33.—(1.) The Commission shall open and maintain an account or accounts with the Commonwealth Bank of Australia, and may open and maintain an account or accounts with such other bank or banks as the Treasurer approves.

(2.) The Commission shall pay all moneys received by it into an account referred to in this section.

Application of moneys.

34.—(1.) Subject to this Act, the moneys of the Commission shall be applied only—

(a) in payment or discharge of the expenses, charges and obligations incurred or undertaken by the Commission under this Act;

(b) in payment of the remuneration and allowances of the Commissioners; and

(c) in making payments to the Commonwealth as provided by this Act.

(2.) Moneys of the Commission not immediately required for the purposes of the Commission may be invested on fixed deposit with the Commonwealth Bank of Australia or with any other bank approved by the Treasurer, or in securities of the Commonwealth.

Proper accounts to be kept.

35. The Commission shall keep proper accounts and records in accordance with the accounting principles generally applied in commercial practice and shall do all things necessary to ensure that all payments out of its moneys are correctly made and properly authorized and that adequate control is maintained over the assets of the Commission and the incurring of liabilities by the Commission.

Audit.

36.—(1.) The Auditor-General shall inspect and audit the accounts and records of financial transactions of the Commission, and shall forthwith draw the Ministers attention to any irregularity disclosed by the inspection and audit which, in the opinion of the Auditor-General, is of sufficient importance to justify his so doing.

(2.) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under the last preceding sub-section.

(3.) The Auditor-General or an officer authorized by him is entitled at all reasonable times to full and free access to all accounts, records, documents and papers of the Commission


relating directly or indirectly to the receipt or payment of moneys by the Commission or to the acquisition, receipt, custody or disposal of assets of the Commission.

(4.) The Auditor-General or an officer authorized by him may make copies of or take extracts from any such accounts, records, documents or papers.

(5.) The Auditor-General or an officer authorized by him may require a Commissioner or an officer of the Commission to furnish Mm with such information in the possession of the Commissioner or officer or to which the Commissioner or officer has access as the Auditor-General or authorized officer considers necessary for the purpose of the performance of the functions of the Auditor-General under this Act, and the Commissioner or officer of the Commission shall comply with the requirement..

Profits of Commission.

16. Section thirty-eight of the Principal Act is amended by omitting sub-sections (1.) and (2.) and inserting in their stead the following sub-sections:—

(1.) For the purposes of this Act, the profits of the Commission for a financial year are the amount (if any) remaining after deducting from the revenue received or receivable in respect of that financial year the expenditure properly chargeable against that revenue.

(2.) For the purposes of the last preceding sub-section, the expenditure of the Commission properly chargeable against the revenue received or receivable in respect of a financial year includes—

(a) charges and expenses accrued in that year but not paid;

(b) provision made in that year for obsolescence and depreciation of assets;

(c) provision made in that year for the overhaul of aircraft, engines and operating equipment;

(d) provision made in that year in lieu of insurance;

(e) provision made in that year for staff superannuation; and

(f) provision made in that year for income tax,

but does not include expenditure charged against amounts provided out of the revenue of a previous year or expenditure in payment of charges and expenses accrued in a previous year..

17. Section forty of the Principal Act is repealed and the following section inserted in its stead:—

Annual report of Commission.

40.—(1.) The Commission shall, as soon as practicable after each thirtieth day of June, prepare and furnish to the Minister a report of its operations during the year ended on that date, together with financial statements in respect of that year in such form as the Treasurer approves.


(2.) Before furnishing the financial statements to the Minister, the Commission shall submit them to the Auditor-General, who shall report to the Minister—

(a) whether the statements are based on proper accounts and records;

(b) whether the statements are in agreement with the accounts and records and show fairly the financial operations and the state of the affairs of the Commission;

(c) whether the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Commission during the year have been in accordance with this Act;

(d) as to the adequacy of provision in the nature of reserves made in the accounts of the Commission; and

(e) as to such other matters arising out of the statements as the Auditor-General considers should be reported to the Minister.

(3.) The Minister shall lay the report and financial statements of the Commission, together with the report of the Auditor-General, before each House of the Parliament within fifteen sitting days of that House after their receipt by the Minister..

Repeal of Parts III., IV. and V.

18. Parts III., IV. and V. of the Principal Act are repealed.

Recovery of fares or charges.

19. Section sixty of the Principal Act is amended by omitting from paragraph (a) the word his and inserting in its stead the word its.

Limitation of actions against the Commission.

20.   Section sixty-three of the Principal Act is amended—

(a) by omitting the words six months and inserting in their stead the words two years; and

(b) by adding at the end thereof the following sub-section:—

(2.) This section does not apply to an action to which a period of limitation is applicable by virtue of the Civil Aviation (Damage by Aircraft) Act 1958 or the Civil Aviation (Carriers Liability) Act 1959..

Notices of occurrence of cause of action and of intended action.

21. Section sixty-four of the Principal Act is repealed.

22.—(1.) Section sixty-six of the Principal Act is repealed and the following section inserted in its stead:—

Limit of damages for personal injury or death.

66.—(1.) In an action brought against the Commission to recover damages or compensation in respect of personal injury or death (including proceedings for the recovery of contribution from the Commission brought by a tort-feasor who is liable in respect of the same injury or death) the plaintiff is not entitled to recover an amount exceeding Seven thousand five hundred pounds.


(2.) This section does not apply in relation to the liability of the Commission by virtue of the Civil Aviation (Damage by Aircraft) Act 1958 or the Civil Aviation (Carriers Liability) Act 1959..

(2.) The amendment made by this section does not apply in relation to a cause of action that arose before the commencement of this section.

By-laws.

23. Section sixty-nine of the Principal Act is amended by inserting in sub-section (1.), after the words this Act (first occurring), the words or any other Act.

 

Overview

The Australian National Airlines Act 1959, enacted by the Commonwealth Parliament, was introduced to amend the Australian National Airlines Act 1945–1958 and address certain operational and administrative aspects of the Australian National Airlines Commission. The Act aims to refine the governance structure, financial controls, and service provisions of the national airline services. Key changes include modifications to the composition and term of the Commission, updated financial regulations, and alterations to the powers and duties of the Commission, including the authority to purchase and dispose of assets within specified limits. Additionally, the Act updates provisions related to the reporting and auditing of financial activities, ensuring transparency and accountability. The policy objective of the Act is to enhance the efficiency and effectiveness of the national airline services by strengthening the administrative and operational frameworks of the Commission.

Scope and Application

The Australian National Airlines Act 1959 amends the Australian National Airlines Act 1945-1958, and pertains to the governance, operations, and financial management of the Australian National Airlines Commission. This Act applies to the Commission, its members, and any other entities involved in the operations and services of the national airline. The Act establishes the roles, responsibilities, and powers of the Commission, including the appointment, term, and remuneration of Commissioners, the conduct of meetings, and the oversight of financial matters. It also sets thresholds for property transactions and delineates the application and limitation of financial liabilities. The Act applies nationally across Australia, given its Commonwealth nature, and its provisions are enforceable through subordinate regulations and instruments. Certain exclusions apply, such as the provisions not applying to actions governed by the Civil Aviation (Damage by Aircraft) Act 1958 or the Civil Aviation (Carriers’ Liability) Act 1959.

Key Provisions

The Australian National Airlines Act 1959 (ANA Act 1959) amends and updates the Australian National Airlines Act 1945–1958 (Principal Act) to reflect changes in the operational and governance structure of the Australian National Airlines Commission (the Commission). The main operative sections of the ANA Act 1959 include modifications to the composition, powers, and duties of the Commission, as well as financial regulations and reporting requirements. For example, Section 5 redefines the term "Acting Commissioner," expands the definition of "the Chairman" to include a Commissioner acting as Chairman, and redefines "the Vice-Chairman" to include a Commissioner appointed to act as Vice-Chairman. Section 6 increases the number of Commissioners from five to six. Section 8 details the term of office for Commissioners, which is a period not exceeding five years, with eligibility for reappointment. The ANA Act 1959 imposes several obligations and requirements on the Commission and its members. Section 10 mandates that Commissioners disclose any personal interests in contracts made by the Commission, refrain from participating in related deliberations, and be disregarded for quorum purposes. Section 14 outlines circumstances under which a Commissioner's office may be declared vacant, such as bankruptcy, absence without leave, or failure to comply with obligations. Section 15 governs the conduct of Commission meetings, including quorum requirements and voting procedures. The Act also regulates financial matters, such as the limits on land purchases, leases, and disposals (Section 11), the requirement for ministerial approval for certain contracts (Section 11), and the keeping of proper accounts and records (Section 35). The Commission must also maintain bank accounts with approved institutions (Section 33) and submit annual reports and financial statements to the Minister (Section 40). The ANA Act 1959 includes provisions for offences, penalties, and consequences for breaches. Section 62 addresses the limitation of actions against the Commission, extending the limitation period from six months to two years. Section 66 limits damages for personal injury or death to a maximum of Seven thousand five hundred pounds, except in cases governed by the Civil Aviation (Damage by Aircraft) Act 1958 or the Civil Aviation (Carriers’ Liability) Act 1959. The Act does not specify maximum penalties for breaches of its provisions but implies that any such breaches may result in disciplinary actions, including termination of appointment by the Governor-General (Section 12) and potential civil or criminal liability under other relevant Acts.

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