EXPLANATORY STATEMENT
Ministerial Notice under section 67AZR of the Australian National Railways Commission Act 1983 (ANRC Act)
The Ministerial Notice is given under section 67AZR of the ANRC Act, which allows the Minister, by written notice, to enter into one or more agreements on behalf of the Commonwealth, with South Australia for certain purposes.
The ANRC Act was repealed by the Australian National Railways Commission Sale Act 1997, however, the ANRC Act's operation in respect of Ministerial Notices of this kind is preserved.
The Ministerial Notice provides that the Minister will enter into the agreement that is annexed to the Ministerial Notice (Second Amending Agreement) with the State of South Australia for the purposes of, and in terms expressed in, the Second Amending Agreement.
The Second Amending Agreement amends the 1997 Commonwealth/South Australian Railways Agreement (1997 Agreement). The 1997 Agreement facilitated the sale of the Australian National Railways Commission (ANRC) and was previously amended by agreement on 21 September 1999 (First Amending Agreement). The First Amending Agreement settled a number of residual matters in relation to the repeal of the ANRC Act and the interstate rail corridor in South Australia.
The Department of Infrastructure and Transport (the Department) consulted with the Department of Finance and Deregulation (DOFD), the South Australian Department of Planning, Transport and Infrastructure (DPTI), and the affected company Genesee and Wyoming Pty Ltd (GWA) whilst preparing the Ministerial Notice and Explanatory Statement.
DOFD and DPTI were consulted to ensure that they were in agreement with the proposed variation and process required to ensure effect is given to the Ministerial Notice. As part of the process, DOFD were required to arrange a Declaration under 67AM of the ANRC Act, which Senator the Hon Penny Wong, Minister for Finance and Deregulation, signed on 7 July 2012. DPTI were consulted as, should the Notice be passed, the signed Second Amending Agreement which is attached to the Ministerial Notice (non legislative) is required to be tabled in both Houses of the Commonwealth and South Australian Parliaments within 15 sitting days of the making of the agreement.
GWA are the affected industry party in this matter. The Department kept GWA informed of progress throughout the development of the Notice and Explanatory Statement. GWA has indicated no concerns with the process or the proposed Notice.
The issue has no impact on the broader community and as such broader community consultation was not considered necessary.
Clause 11 of the 1997 Agreement allows for the amendment of the 1997 Agreement and requires any amendments to be tabled in both the Commonwealth and South Australian Parliaments.
The Ministerial Notice takes effect the day after registration.
It is necessary to amend the 1997 Agreement to clarify and resolve issues that have arisen with certain definitions in the 1997 Agreement. There is a risk that the sale or transfer of rail assets intended to be facilitated by the 1997 Agreement has not been complete. In particular, it is likely that some of these assets that were to have been transferred under the 1997 Agreement actually remained in Commonwealth ownership. The Second Amending Agreement will implement amended definitions to give effect to the original intent of the 1997 Agreement
The 1997 Agreement and the First Amending Agreement and Second Amending Agreement are annexed to the Ministerial Notice.
The Ministerial Notice is disallowable in accordance with section 67AZR(3) of the ANRC Act.