EXPLANATORY STATEMENT
STATUTORY RULES No 348 OF 1986
ISSUED BY AUTHORITY OF THE MINISTER OF STATE FOR TRANSPORT
Subject - AUSTRALIAN NATIONAL RAILWAYS COMMISSION ACT 1983
AUSTRALIAN NATIONAL RAILWAYS COMMISSION REGULATIONS (AMENDMENT)
Section 80 of the Australian National Railways Commission Act 1983 (“the Act”) provides, inter alia, that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act, to be prescribed by the regulations.
Paragraph 7(1)(a) of the Act provides that the Australian National Railways Commission (“the Commission”) shall not, without the approval of the Minister for Transport, enter into a contract under which the Commission is to pay or receive an amount exceeding $2,000,000 or, if a higher amount is prescribed by the regulations, that higher amount.
The Government’s policy is that the amount up to which the Commission may enter into a contract without Ministerial approval should be maintained at the $2,000,000 level in real terms.
As a consequence it is proposed to prescribe by regulation an amount of $2,300,000 being an estimate of the current value of the $2,000,000 contract ceiling specified in paragraph 7(1)(a) of the Act.
Details of the regulations are as follows.
Regulation 3 prescribes an amount of $2,300,000 for the purposes of paragraph 7(1)(a) of the Act.
Authority: | Section 80 of the Australian National Railways Commission Act 1983 |
Overview
The Australian National Railways Commission Act 1983 was enacted to provide a framework for the administration and operation of the Australian National Railways Commission, addressing the need for a structured approach to national rail transport. This Act was established by the Parliament of Australia, aiming to ensure efficient and effective management of the national rail system. One of the key provisions of the Act is the requirement for Ministerial approval for contracts exceeding a specified monetary limit, currently set at $2,000,000, to maintain financial prudence and oversight. The Australian National Railways Commission Regulations (Amendment) issued under Section 80 of the Act propose to update this monetary limit to $2,300,000 to reflect current economic conditions, thereby preserving the real value of the original threshold while allowing for necessary adjustments over time. The policy objective of the government remains to ensure that the financial thresholds are maintained in real terms, thereby safeguarding against inflation and ensuring the continued integrity of the regulatory framework.
Scope and Application
The Australian National Railways Commission Regulations (Amendment) Statutory Rules No 348 of 1986 amend the Australian National Railways Commission Regulations to update the contract threshold amount specified in the Act. The Act applies to the Australian National Railways Commission, an entity established under Commonwealth law, governing its activities and operations, particularly in relation to financial transactions. The amendment ensures that the financial threshold for requiring ministerial approval for contracts remains consistent with inflation, maintaining the policy of the Australian Government. Geographically, the regulations apply nationally within the Commonwealth of Australia, as they are made under the authority of the Australian National Railways Commission Act 1983. There are no specific exclusions or exemptions mentioned in the text, but the regulations do provide for a specific threshold amount that, if exceeded, requires ministerial approval for any contracts entered into by the Commission. The threshold amount is set at $2,300,000, as prescribed by the regulation, and any higher amounts would require further regulation. The regulations do not extend or restrict the application beyond what is specified within the text.
Key Provisions
The Australian National Railways Commission Regulations (Amendment) Statutory Rules No 348 of 1986, issued under the authority of the Minister of State for Transport, primarily amends the threshold amount for contract approvals under section 7(1)(a) of the Australian National Railways Commission Act 1983. Regulation 3 adjusts the monetary limit, previously set at $2,000,000, to $2,300,000. This change aims to maintain the real-terms value of the contract ceiling, ensuring that the Australian National Railways Commission (the Commission) can enter into contracts without needing ministerial approval up to this updated amount.
The Act imposes specific obligations on the Commission regarding the entering into of contracts. Under section 7(1)(a), the Commission is required to obtain the approval of the Minister for Transport before entering into any contract where the payment or receipt exceeds the specified amount, which is now $2,300,000 as per Regulation 3. This approval process ensures that high-value contracts are subject to oversight and accountability, safeguarding the interests of the Commission and the broader public.
The regulations also outline the consequences for non-compliance with the Act’s provisions. Any contract entered into by the Commission that exceeds the specified amount without the required ministerial approval could be subject to scrutiny and potential legal action. While the specific penalties for breach are not detailed in the explanatory statement, under the broader legal framework, breaches of such regulatory requirements could result in civil or criminal penalties, depending on the severity and intent behind the breach. These consequences underscore the importance of adhering to the regulatory framework to avoid legal ramifications.
Overall, the amendments aim to provide a clear and updated regulatory environment for the Commission, ensuring that it can manage its financial commitments effectively while maintaining the necessary oversight through ministerial approval for high-value contracts. This approach balances operational flexibility with the need for stringent financial controls.