EXPLANATORY STATEMENT
BOUNTY (SHIPS) ACT 1980
BOUNTY (SHIPS) (RESERVATION OF BOUNTY) REGULATIONS
(AMENDMENT)
1988 NO. 176
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SCIENCE, CUSTOMS AND SMALL BUSINESS
Statutory Rules 1987 No. 116 of 1987 amended the Bounty (Ships) (Reservation of Bounty) Regulations, to permit the Comptroller-General of Customs to (amongst other things):
• reject applications for reservation of bounty that do not comply with the formalities prescribed by Regulation 3 of the Regulations;
• reject applications reserving additional amounts of bounty;
• reduce the amount of bounty reserved by the claimant; and
• cancel the reservation of bounty, pursuant to one of the conditions prescribed in regulation 10 of the Regulations
Should the Comptroller take any of these actions, a registered repairer would be ineligible to be paid bounty for performing the repair that was the subject to the claim for bounty.
The Senate Standing Committee on Regulations and Ordinances was concerned that the Comptroller-General’s discretion to reject applications and to cancel reservations of bounty could not be reviewed on its merits by an independent body.
The attached proposed Statutory Rules discharges an undertaking made to the Committee by the Minister for Science, Customs and Small Business on 19 November 1987 to give a person affected by a decision the right to have the Comptroller’s discretion reviewed by the Administrative Appeals Tribunal.
The appeal right is deemed to have commenced on 15 June 1987, the date of commencement of Statutory Rules 1987 No. 116 which inserted the Comptroller-General’s discretions now proposed to be eligible for review by the Administrative Appeals Tribunal.
As this provision confers a benefit, subsection 48(2) of the Acts Interpretation Act 1901 is not offended by the retrospective commencement date.
These proposed amendments to the Regulations also remove a reference to “associate of the owner” contained in regulation 3(1) of the Regulations. As from the date of Gazettal of the Regulations, shipbulders who are associates of the owner of the ship under construction may reserve amounts of bounty.
The regulations provide as follows:
Commencement
Regulation 1 provides that regulation 5 is deemed to have come into operation on 15 June 1987.
• the remaining regulations contained in the Statutory Rules will commence from the date the Statutory Rules have been Gazetted.
Principal Regulations
Regulation 2 identifies the Bounty (Ships) (Reservation of Bounty) Regulations as the Principal Regulations being amended by these Statutory Rules.
Application of additional amounts
Regulation 3 amends subregulation 3(1) of the regulations by removing the words “or associate of the owner” contained in the subregulation.
• This has the effect of permitting registered shipbuilders who are “associates of the owner” (a term defined in subsection 3(3) of the Act) to reserve amounts of bounty.
Reservation of additional amounts
Regulation 4 is a minor technical amendment clarifying that the conjuction “and” that was removed from paragraph 7(4)(c) of the Regulations by Statutory Rules 1987 No. 116 was the “and” that came between paragraph 7(4) (c) and paragraph 7(4) (d), which was repealed by Statutory Rules 1987 No. 116.
Regulation 5 Adds new regulations 14 and 15 to the Regulations, which allow for certain decisions of the Comptroller-General of Customs to be reviewed by the Administrative Appeals Tribunal, as follows:
Application for review
• New regulation 14 permits a person to apply to the Administrative Appeals Tribunal for review of the Comptroller-General of Custom’s decision to:
- refuse an application for reservation of bounty; (paragraph 14(1)(a))
- refuse an application to reserve an additional amount of bounty (paragraph 14(1)(b))
- vary the amount of bounty reserved by the applicant (paragraph 14(1)(c)); or
- cancel the reservation for bounty for one of the reasons contained in regulation 10 of the regulations (paragraph 14(1)(d)
• A new regulation 15 obliges the Comptroller to advise a person whose interests are affected by a decision of the Comptroller pursuant to the new regulation 14 (discussed above) of the Regulations of his or her right to have the decision reviewed by the Administrative Appeals Tribunal.
- new subregulation 15(21) provides that a failure to issue the notice will not itself invalidate the decision of the Comptroller.
Overview
The Bounty (Ships) (Reservation of Bounty) Regulations (Amendment) 1988 No. 176, issued under the authority of the Minister for Science, Customs and Small Business, addresses issues arising from the Bounty (Ships) Act 1980, which governs the reservation of bounty for ship repairs. The amendment was enacted by the Parliament of Australia to rectify concerns raised by the Senate Standing Committee on Regulations and Ordinances about the Comptroller-General of Customs' discretion to reject applications and cancel reservations of bounty. This discretion could not be reviewed by an independent body, leading to potential injustice for those affected by such decisions. The policy objective of these amendments was to ensure that affected parties have the right to appeal the Comptroller-General’s decisions to the Administrative Appeals Tribunal, thereby providing a mechanism for independent review and redress. The amendments also clarify that shipbuilders who are associates of the ship's owner can reserve amounts of bounty, aligning the regulations with the broader intent of the Bounty (Ships) Act.
Scope and Application
The Bounty (Ships) (Reservation of Bounty) Regulations (Amendment) 1988 No. 176 amends the Bounty (Ships) Act 1980 to provide for the review of certain decisions made by the Comptroller-General of Customs concerning the reservation of bounty. The amendment responds to concerns raised by the Senate Standing Committee on Regulations and Ordinances regarding the Comptroller-General’s discretion in rejecting applications for reservation of bounty, reducing the amount of bounty reserved, or cancelling the reservation of bounty. The amendment introduces the right for an affected person to have such decisions reviewed by the Administrative Appeals Tribunal, ensuring a degree of independent scrutiny. This review right is deemed to have commenced on 15 June 1987, the date of commencement of the previous Statutory Rules. Additionally, the amendment removes a reference to "associate of the owner" in the regulations, thereby permitting registered shipbuilders who are associates of the ship owner to reserve amounts of bounty. These regulations apply to all registered shipbuilders and ship owners who may be affected by decisions of the Comptroller-General of Customs regarding bounty reservations.
Key Provisions
The Bounty (Ships) (Reservation of Bounty) Regulations (Amendment) 1988 No. 176 introduce several significant changes to the existing regulatory framework governing the reservation of bounty for ships in Australia. Regulation 5, for example, specifically addresses the Comptroller-General of Customs' authority to reject applications, reduce bounty amounts, or cancel reservations. Regulation 14 introduces a right for affected parties to appeal decisions made by the Comptroller-General to the Administrative Appeals Tribunal, providing a mechanism for judicial review. Regulation 15 mandates that the Comptroller must inform those affected by certain decisions of their right to appeal. Regulation 3 removes a restriction that previously prevented shipbuilders who are associates of the ship's owner from reserving bounty, thereby expanding the category of eligible claimants.
These amendments impose several obligations on the Comptroller-General of Customs and other relevant parties. The Comptroller-General is now required to adhere to stricter procedural standards when rejecting applications, reducing bounty amounts, or cancelling reservations, as these actions can now be reviewed by the Administrative Appeals Tribunal. The Comptroller must also inform affected parties of their right to appeal, although failure to do so does not invalidate the decision. Shipbuilders who are associates of the ship's owner are now eligible to reserve bounty, which expands the scope of those who can claim under the Act.
Violations or non-compliance with the new provisions could lead to significant consequences. For instance, if the Comptroller-General fails to inform an affected party of their right to appeal, this does not invalidate the decision but serves as a reminder of the importance of compliance. The penalties for non-compliance are not explicitly stated in the text, but the need for judicial review implies that failure to adhere to the new provisions could result in the overturning of decisions made by the Comptroller-General. This, in turn, could lead to financial repercussions for the Customs department and legal complications for the affected parties.
The new regulations aim to ensure that the process of reserving bounty is fair and transparent. By allowing for appeals to the Administrative Appeals Tribunal, the amendments provide a safeguard against arbitrary or unjust decisions by the Comptroller-General. This not only protects the rights of shipbuilders and other claimants but also ensures that the process remains within the bounds of legal and procedural correctness. The removal of the restriction on shipbuilders who are associates of the ship's owner further democratises the process, allowing more parties to benefit from the bounty scheme.