EXPLANATORY STATEMENT
AUSTRALIAN TELECOMMUNICATIONS CORPORATION REGULATIONS (AMENDMENT)
Statutory Rule No. 430 of 1990
Issued by the authority of the Minister for Transport and Communications
Section 105 of the Australian Telecommunications Corporation Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Subsection 96(1) of the Act exempts Telecom from any requirement, obligation, liability, penalty or disability under a law of a State or Territory to which the Commonwealth is not subject, other than taxation for which Telecom is made liable by section 59 of the Act.
Subsection 96(2) of the Act provides that subject to the regulations, Telecom’s exemption from State and Territory laws under subsection 96(1) applies only in relation to the period from the commencement of the Act to 31 December 1990.
The Government has recently announced that major changes are to be made to the structural arrangements for the Australian Telecommunications industry. The proposed reforms will include the merger of Telecom and OTC and the sale of AUSSAT to provide the basis for a competitor to the merged body.
The issue of what exemptions from State and Territory laws the new body and the competitor should have is to be considered in the context of proposed legislation to create the new structural arrangements. It is intended that the new structural arrangements will commence on 1 July 1991.
The amendment to the Australian Telecommunications Corporation Regulations will extend the period of Telecom’s exemption from State and Territory laws from 1 January 1991 to 30 June 1991, when the new legislation would commence.
Details of the proposed Regulations are as follows:
Clause 1 provides that the amendment commences on 1 January 1991.
Clause 2 is a formal provision.
Clause 3 inserts a new regulation 2A which provides for an extension of the current exemption until 30 June 1991.
Overview
The Australian Telecommunications Corporation Regulations (Amendment) Statutory Rule No. 430 of 1990 was enacted to address the transitional period arising from significant structural changes within the Australian telecommunications industry. This amendment was introduced by the authority of the Minister for Transport and Communications, in line with the legislative framework provided by the Australian Telecommunications Corporation Act 1989. The primary objective of these regulations is to extend the exemption period of Telecom from certain State and Territory laws, allowing for a smoother transition to the new structural arrangements set to commence on 1 July 1991. This includes the merger of Telecom and OTC and the sale of AUSSAT to facilitate competition in the industry. The extension of the exemption period from 1 January 1991 to 30 June 1991 ensures that Telecom is not subject to additional state and territory obligations during this critical period of reform and restructuring.
Scope and Application
The Australian Telecommunications Corporation Regulations (Amendment) Statutory Rule No. 430 of 1990 applies to the Australian Telecommunications Corporation (Telecom) and its operations within the Australian telecommunications industry. It amends the existing regulations to extend Telecom's exemption from certain State and Territory laws until 30 June 1991. This extension is made in anticipation of the major structural changes within the telecommunications industry, including the merger of Telecom with the Overseas Telecommunications Commission (OTC) and the sale of AUSSAT, which are set to be implemented on 1 July 1991. The amendment ensures that Telecom remains exempt from various state and territory laws, obligations, liabilities, penalties, and disabilities, excluding taxation, until the new legislative framework takes effect. This regulation is necessary to provide a smooth transition period for the restructuring and to ensure that Telecom is not subjected to additional legal burdens during this transitional phase.
Key Provisions
The Australian Telecommunications Corporation Regulations (Amendment) Statutory Rule No. 430 of 1990 amends the Australian Telecommunications Corporation Regulations by extending the exemption period for Telecom from state and territory laws. Clause 3 specifically inserts a new regulation 2A, which extends the exemption period from 31 December 1990 to 30 June 1991. This extension is intended to align with the proposed new legislative framework for the telecommunications industry, which is set to commence on 1 July 1991.
The regulations impose certain obligations on Telecom. Most notably, they require Telecom to comply with the extended exemption from state and territory laws as detailed in the new regulation 2A. This means that Telecom is exempt from any requirements, obligations, liabilities, penalties, or disabilities under state and territory laws during the extended period, except for taxation liabilities specified under section 59 of the Australian Telecommunications Corporation Act 1989. The regulation ensures that Telecom continues to operate under federal oversight, free from state and territory regulatory constraints, until the new legislative framework is fully operational.
Any breach of the provisions outlined in the Australian Telecommunications Corporation Regulations could result in civil or criminal consequences. The Act does not specify particular offences, penalties, or consequences for non-compliance with these regulations. However, any action that contravenes the exemption granted by the Act or the amended regulations could potentially lead to legal proceedings. The specifics of any penalties or consequences would be determined by the courts based on the nature and severity of the breach, as well as relevant common law and statutory provisions.