EXPLANATORY STATEMENT
Christmas Island Act 1958
Utilities and Services Ordinance 1996
Determination of Fees for Water and Sewerage Services No.3 of 2005
Section 3 of the Utilities and Services Ordinance 1996 (the Ordinance) authorises the Administrator to make provision for the supply and use of utilities and services in relation to, amongst other things, water and drainage and sewerage in the Territory. Section 4 of the Ordinance provides that the Administrator is to impose a fee for the provision to a person, or the use by a person, of such utilities and services.
The Determination of Fees for Water and Sewerage Services No.3 of 2005 (the Determination) sets the fees for water and wastewater charges on Christmas Island and replaces the Determination of Fees for Water and Sewerage Services No.1 of 2003.
It is Government policy that there should be parity between the prices in the Territory and those in Western Australia wherever possible. The fees set in the Determination are substantially the same as those which apply in Western Australia and are considerably less than the cost of supply. Accordingly, consultation on the fees was not undertaken.
The Determination commences on 1 October 2005.
Overview
The Christmas Island Act 1958 was enacted to provide for the administration and governance of Christmas Island, addressing the need for a legal framework to manage the island's unique circumstances. This legislation was introduced to ensure that the territory has appropriate provisions for the supply and use of utilities and services, including water and sewerage, as stipulated in the Utilities and Services Ordinance 1996. The objective of the legislation is to maintain parity in utility fees between Christmas Island and Western Australia, ensuring that the charges are reasonable and reflective of the cost of supply. The Determination of Fees for Water and Sewerage Services No.3 of 2005 further specifies these fees, setting them in line with those in Western Australia, and was enacted without consultation due to their alignment with government policy. This determination commenced on 1 October 2005, ensuring that the fees for water and wastewater services on Christmas Island are consistent and affordable.
Scope and Application
The Christmas Island Act 1958, in conjunction with the Utilities and Services Ordinance 1996, governs the provision and regulation of utilities and services on Christmas Island, including water and sewerage services. The Determination of Fees for Water and Sewerage Services No.3 of 2005, made under the Ordinance, sets the fees applicable to water and wastewater services on the Island. This legislation applies to all persons and entities on Christmas Island who require or use water and sewerage services, thereby ensuring a consistent fee structure that aligns with Western Australian prices where feasible. The fees established in the Determination are designed to be substantially equivalent to those in Western Australia, aiming to maintain economic parity and are notably lower than the actual cost of supplying these services. The Determination took effect on 1 October 2005 and, as per the Ordinance, the Administrator has the authority to impose these fees on users of the specified utilities and services. While the Ordinance provides for the creation of subordinate instruments to further detail or modify the application of the Act, no specific exclusions, exemptions, or additional thresholds are outlined in the provided explanatory statement.
Key Provisions
The Christmas Island Act 1958, as amended by the Utilities and Services Ordinance 1996, and further clarified by the Determination of Fees for Water and Sewerage Services No.3 of 2005, provides a framework for the provision and usage of water and sewerage services on Christmas Island. Section 3 of the Ordinance (3) allows the Administrator to establish provisions for the supply and use of utilities and services, including water, drainage, and sewerage. This means that the Administrator has the authority to set rules and conditions under which these services can be supplied and used on the island. Section 4 of the Ordinance (4) mandates that a fee must be imposed for the provision or use of these utilities and services by individuals. This ensures that there is a financial mechanism in place to cover the costs associated with delivering these services.
Under this legislative framework, the Administrator has the responsibility to set the fees for water and sewerage services on Christmas Island. The Determination of Fees for Water and Sewerage Services No.3 of 2005 (the Determination) sets out the specific fees that apply, and these fees are intended to align closely with those in Western Australia, reflecting government policy for price parity where possible. This means that the fees established are not only intended to cover the cost of supply but are also designed to be reasonable and comparable to what residents of Western Australia pay for similar services. Given the similarity in fees and the alignment with Western Australian prices, the Determination notes that consultation on these fees was not deemed necessary.
Breach of the provisions set out in the Utilities and Services Ordinance 1996 or the Determination of Fees for Water and Sewerage Services No.3 of 2005 could result in legal consequences. While specific penalties are not detailed within the text, it is reasonable to infer that non-compliance with the fees and service provisions could lead to civil or administrative penalties. These might include fines or other enforcement actions to ensure adherence to the established fees and service conditions. Such breaches could also potentially disrupt the smooth operation of utility services on the island, thereby affecting the residents and businesses reliant on these services.