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EXPLANATORY STATEMENT
MINUTE NO 7 OF 1985 - MINISTER OF STATE FOR TRANSPORT
SUBJECT - AUSTRALIAN NATIONAL RAILWAYS COMMISSION ACT 1983 AUSTRALIAN NATIONAL RAILWAYS COMMISSION REGULATIONS
1985 No. 231
Section 80 of the Australian National Railways Commission Act (“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 $2,100,000 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 1 provides the citation.
Regulation 2 provides the interpretation.
Regulation 3 prescribes an amount of $2,100,000 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 for the establishment and operation of the Australian National Railways Commission, addressing the need for a national framework governing railway operations and services in Australia. This legislation aimed to streamline and standardise the management of national rail services, ensuring efficiency and coordination across the country. The Act was introduced by the Commonwealth Parliament, reflecting a policy objective to maintain a robust and cohesive national rail network. The Australian National Railways Commission Regulations 1985, which include a provision to update the monetary threshold for contract approvals by the Commission, were made under the authority of section 80 of the Act. These regulations adjust the contract ceiling amount to account for inflation, ensuring that the policy intent remains consistent in real terms. The regulations thus aim to maintain the integrity of the financial oversight mechanisms established by the Act, while adapting to economic changes over time.
Scope and Application
The Australian National Railways Commission Act 1983 applies to the Australian National Railways Commission, ensuring that it adheres to certain financial and contractual limits when engaging in business operations. Specifically, Section 7 of the Act stipulates that the Commission cannot enter into a contract involving payments or receipts exceeding a specified amount without the approval of the Minister for Transport. This requirement aims to maintain fiscal discipline and oversight over significant financial commitments made by the Commission. The geographic reach of the Act is nationwide, governing the Commission's conduct and transactions across Australia. The Act does not explicitly exclude any specific persons, entities, industries, or types of transactions, but its application is inherently limited to the operations and actions of the Australian National Railways Commission. The Act also provides for the Governor-General to make regulations under Section 80, allowing for adjustments to the monetary thresholds specified in the Act, such as the contract limit, thereby extending or restricting the application of the Act through subordinate instruments. The proposed regulation adjusts the contract ceiling to $2,100,000 to account for inflation and maintain the real value of the $2,000,000 threshold.
Key Provisions
The Australian National Railways Commission Regulations 1985, specifically Regulation 3, amend the threshold amount for contract value that requires ministerial approval from $2,000,000 to $2,100,000 under section 7(1)(a) of the Australian National Railways Commission Act 1983. This means that any contract exceeding this amount now requires approval from the Minister for Transport. The updated threshold reflects the current economic conditions and maintains the government's policy of keeping the contract ceiling in real terms.
The Act imposes certain obligations on the Australian National Railways Commission to ensure compliance with the regulatory framework. According to section 7(1)(a), the Commission is required to seek approval from the Minister for Transport before entering into any contract whose value exceeds the prescribed amount, currently set at $2,100,000. This provision ensures that significant financial commitments are subject to ministerial oversight, thereby providing a layer of accountability and governance over the Commission's expenditure. Furthermore, the Commission must maintain records and documentation to substantiate any contracts entered into, as well as the approval processes followed.
Failure to comply with the requirements of the Act and the Regulations may lead to serious consequences. While the specific offences and penalties are not detailed in the explanatory statement, breaches of such regulatory provisions can potentially result in both civil and criminal liabilities. Civil penalties might include fines or other monetary sanctions, while criminal penalties could encompass imprisonment, reflecting the seriousness with which the law views non-compliance. The precise nature and extent of these penalties would be further elucidated in the relevant sections of the Act and any associated legislative instruments.