EXPLANATORY STATEMENT
Utilities and Services Ordinance 1996
Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007
Section 4 of the Utilities and Services Ordinance 1996 (the Ordinance) provides that the Administrator of Christmas Island is to impose a fee for the provision to a person, or the use by a person, of, amongst other things, water and drainage and sewerage in the Territory.
The Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007 (the Determination) prescribes a free allocation of water at an equivalent rate of 1.7 litres a second per billing period to Sofstar Pty Ltd, as part of water connections to the Christmas Island Resort.
No consultation on the fees was undertaken. The Australian Government entered into an agreement with the Christmas Island Resort in 2006 to provide water free of charge as part of a Deed of Surrender. The terms of the agreement do not require the Australian Government to supply water to the Christmas Island Resort until the upgrade of the water source infrastructure is completed in 2008. However, providing the Christmas Island Resort with an interim water supply will allow it to proceed with works to reopen part of the resort.
The Determination commences on 8 April 2007.
Overview
The Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007 was enacted to provide a temporary water supply arrangement for the Christmas Island Resort, facilitating its operations during the upgrade of water infrastructure. This legislation was introduced under the Utilities and Services Ordinance 1996, administered by the Australian Government, aiming to address the need for a provisional water supply to the resort to enable ongoing construction and operational activities. This measure was implemented in accordance with an agreement between the Australian Government and Sofstar Pty Ltd, the operators of the resort, which includes a free allocation of water at a rate of 1.7 litres per second per billing period. The policy objective is to support the resort's redevelopment efforts without immediate financial burden, pending the completion of the water infrastructure upgrade in 2008.
Scope and Application
The Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007 applies specifically to the provision and use of water services for the Christmas Island Resort, managed by Sofstar Pty Ltd, within the Territory of Christmas Island. This legislative instrument is issued under the authority of Section 4 of the Utilities and Services Ordinance 1996, which mandates the Administrator of Christmas Island to impose fees for the provision of water and drainage and sewerage services. This Determination prescribes a free allocation of water at a rate of 1.7 litres per second per billing period to Sofstar Pty Ltd, contingent upon the completion of the water source infrastructure upgrade by 2008. Notably, this Determination does not extend to any other entities or persons outside the scope of the agreement between the Australian Government and the Christmas Island Resort, and it comes into effect on 8 April 2007. The legislation's jurisdictional reach is confined to the Territory of Christmas Island, and no consultation on the fees was undertaken.
Key Provisions
The Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007 (section 1) outlines the specific provisions for water fees applicable to Sofstar Pty Ltd, the operator of the Christmas Island Resort. Section 2 of the Determination states that Sofstar Pty Ltd is to be provided with a free allocation of water at a rate equivalent to 1.7 litres per second for each billing period. This free allocation is part of the water connections to the resort and is in effect from the commencement date of the Determination, which is 8 April 2007 (section 3).
The primary obligation under this Determination is for the Administrator of Christmas Island to provide Sofstar Pty Ltd with the specified free allocation of water as part of the water connections to the resort (section 2). This obligation is contingent upon the completion of the water source infrastructure upgrade by 2008, as per the agreement between the Australian Government and the Christmas Island Resort (section 1). The Administrator must ensure that the free water allocation is provided to facilitate the resort’s operations during the interim period leading up to the infrastructure upgrade.
Breach of the provisions outlined in the Determination could lead to various civil or administrative consequences, although specific penalties are not detailed within the text. However, the overarching legal framework provided by the Utilities and Services Ordinance 1996 would apply, potentially leading to enforcement actions by the relevant authorities. It is also important to note that any failure to comply with the terms of the Deed of Surrender could result in legal ramifications under the terms of that agreement.
In summary, the Determination mandates the provision of a free water allocation to Sofstar Pty Ltd for the Christmas Island Resort, with specific requirements and conditions attached. The Administrator of Christmas Island is responsible for ensuring compliance with these provisions, and any breaches could lead to administrative or legal consequences under the applicable legislation and agreements.