Australian Tourist Commission Amendment Regulations 2002 2002 No. 237
EXPLANATORY STATEMENT
STATUTORY RULES 2002 No. 237
Issued by the authority of the Minister for Small Business and Tourism
Australian Tourist Commission Act 1987
Australian Tourist Commission Amendment Regulations 2002
Section 51 of the Australian Tourist Commission Act 1987 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act prescribing matters required or permitted by the Act to be prescribed; or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Paragraph 46(a) of the Act provides that the Board of the Australian Tourist Commission (the Commission) shall not, except with the written approval of the Minister, enter into a contract involving payment or receipt of an amount exceeding $500,000 or, if a higher amount is prescribed, the higher amount. This amount was increased to $1 million by Australian Tourist Commission Regulations 2000 (Statutory Rules 2000 No. 182).
The purpose of the proposed Regulation is to raise the value of contracts that the Board of the Australian Tourist Commission can enter into without the Minister's approval from $1 million to $5 million.
The effect of the proposed Regulations would be to reduce the frequency of the need for the Board to seek Ministerial approval to enter into contracts. This would reduce administrative demands on the Minister and increase the autonomy of the Board in this area to a level more in keeping with its responsibilities.
Comparisons with other statutory agencies indicate that the Commission's Ministerial approval threshold is comparatively low. The proposed increase would bring Ministerial oversight of the Commission more into line with other agencies.
Contract negotiation and management forms a significant part of the Commission's activities. The Board of the Commission approved 74 contracts in the two years to 2001-02. Of this total, 54 contracts required Ministerial approval. An increase in the approval threshold would reduce the administrative load on the Minister.
The proposed Regulations would commence on gazettal.
Details of these Regulations are set out below.
Regulation 1 provides that the name of the Regulations is the Australian Tourist Commission Amendment Regulations 2002.
Regulation 2 provides for the Regulations to commence on gazettal.
Regulation 3 provides that the Regulations referred to in these Regulations means the Australian Tourist Commission Regulations 2000.
Regulation 4 provides that for paragraph 46(a) of the Act, the amount is $5 million.
Overview
The Australian Tourist Commission Amendment Regulations 2002 were enacted to amend the Australian Tourist Commission Act 1987, specifically updating the financial threshold for contracts that the Board of the Australian Tourist Commission can enter into without the need for Ministerial approval. Initially set at $500,000, this threshold was subsequently increased to $1 million by the Australian Tourist Commission Regulations 2000. The 2002 Regulations further increased the threshold to $5 million, reducing the administrative burden on the Minister and aligning the oversight level with that of other statutory agencies. This change was motivated by the significant volume of contract negotiations and management handled by the Commission, with a reduction in the need for Ministerial approval expected to enhance the Board's autonomy and efficiency. The Regulations were issued under the authority of the Minister for Small Business and Tourism and are intended to streamline operations by reducing the frequency of Ministerial involvement in contract approvals.
Scope and Application
The Australian Tourist Commission Amendment Regulations 2002, issued under the authority of the Minister for Small Business and Tourism, amend the Australian Tourist Commission Act 1987 to modify the threshold for contract approval by the Board of the Australian Tourist Commission. Specifically, the Regulations increase the limit on the value of contracts that the Board can enter into without requiring written approval from the Minister from $1 million to $5 million. This amendment aims to streamline administrative processes by reducing the frequency with which the Board must seek Ministerial approval for contracts, thus enhancing operational efficiency and aligning the Commission's contract approval processes with those of comparable statutory agencies. The Regulations come into effect immediately upon gazettal and apply nationally across Australia, as they pertain to the Commonwealth-level statutory framework.
Key Provisions
The Australian Tourist Commission Amendment Regulations 2002 (No. 237) serve to amend the existing framework under which the Australian Tourist Commission (the Commission) operates. Specifically, these Regulations focus on adjusting the threshold for contract approval by the Commission's Board, as stipulated in section 51 of the Australian Tourist Commission Act 1987. Currently, the Board requires written approval from the Minister to enter into contracts exceeding $1 million. This threshold is set to increase to $5 million under the proposed Regulations. Regulation 4 explicitly alters paragraph 46(a) of the Act, thereby raising the limit for Board-approved contracts without Ministerial consent from $1 million to $5 million.
The obligations imposed by these Regulations primarily concern the Board of the Commission. The increased contract approval threshold of $5 million, as outlined in Regulation 4, means that the Board can now enter into higher-value contracts independently, without requiring Ministerial approval. This change is intended to streamline the administrative processes and reduce the burden on the Minister by decreasing the frequency of approval requests. Consequently, the Board gains greater autonomy in managing contracts, aligning with its responsibilities more closely and reflecting practices observed in other statutory agencies.
Non-compliance with the provisions set forth in these Regulations could lead to legal repercussions. Although the Regulations do not explicitly state penalties for breaches, any contract entered into without the necessary Ministerial approval when exceeding the stipulated threshold could be deemed invalid or unenforceable. This could potentially result in financial losses, legal disputes, and damage to the Commission's reputation. Furthermore, any breaches may also invite scrutiny and potential corrective actions from relevant authorities, given that the Regulations are designed to ensure proper oversight and accountability in the Commission's contractual engagements.
In summary, the Australian Tourist Commission Amendment Regulations 2002 are designed to provide the Board with a higher degree of operational autonomy by raising the contract approval threshold to $5 million. This adjustment is intended to align the Commission's practices more closely with those of other statutory agencies, thereby reducing administrative demands on the Minister and enhancing the efficiency of the Board's contract management processes. While the Regulations do not specify penalties for non-compliance, the importance of adhering to the prescribed thresholds cannot be understated, given the potential legal and financial implications of entering into contracts without the required Ministerial approval.