Overview

The Commonwealth Authorities and Companies Amendment Regulation 2013 (No. 1) was enacted to address the need to include the Moorebank Intermodal Company Limited as a government business enterprise (GBE) under the Commonwealth Authorities and Companies Act 1997. The regulation was issued by the Minister for Finance and Deregulation and aims to ensure that the Moorebank Intermodal Company Limited, which is involved in the construction of an intermodal terminal in south-western Sydney, is subject to the same high level of reporting and accountability as other GBEs. This regulation is necessary because the Commonwealth has a significant ownership interest in the company and thus has a vested interest in its performance and financial returns. The regulation amends the Commonwealth Authorities and Companies Regulations 1997 by adding the Moorebank Intermodal Company Limited to the list of prescribed GBEs. The policy objective is to apply the Commonwealth Government Business Enterprises Governance and Oversight Guidelines to this company, thereby facilitating best practice governance and oversight by the Commonwealth. The regulation is designed to ensure that the company operates largely under commercial practices while maintaining the necessary accountability and reporting standards expected of GBEs. The regulation is compatible with human rights as it does not limit any rights nor establish new offences or penalties.

Scope and Application

The Commonwealth Authorities and Companies Amendment Regulation 2013 (No. 1) applies to the Moorebank Intermodal Company Limited by prescribing it as a government business enterprise under the Commonwealth Authorities and Companies Act 1997. This Act governs the reporting, accountability and other rules for Commonwealth authorities and companies. The amendment was made because the Commonwealth holds an ownership interest in the Moorebank Intermodal Company Limited, which is involved in the construction of an intermodal terminal at Moorebank in south-Western Sydney. By classifying the company as a GBE, it is subject to the Commonwealth Government Business Enterprises Governance and Oversight Guidelines, which impose stringent reporting and accountability requirements aimed at ensuring best practice governance and oversight by the Commonwealth. The Regulation does not extend to any other entities and does not create any new offences or penalties, nor does it limit any human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Commonwealth Authorities and Companies Amendment Regulation 2013 (No. 1) amends the Commonwealth Authorities and Companies Regulations 1997 (CAC Regulations) to include the Moorebank Intermodal Company Limited as a government business enterprise (GBE) (Schedule 1, Item 1). This amendment is made under the authority of subsection 49(1) of the Commonwealth Authorities and Companies Act 1997 (CAC Act) (Section 3). The Regulation comes into effect on the day after it is registered on the Federal Register of Legislative Instruments (Section 2). The inclusion of the Moorebank Intermodal Company Limited as a GBE in the CAC Regulations recognises the Commonwealth’s ownership interest in the company and its significant stake in the project's success and financial outcomes. By being designated as a GBE, the company will be required to adhere to the Commonwealth Government Business Enterprises Governance and Oversight Guidelines, which impose rigorous reporting and accountability measures. These guidelines are designed to promote best practices in governance and oversight within the Commonwealth (Explanatory statement). Entities governed by the CAC Act, including the newly added Moorebank Intermodal Company Limited, must comply with the stringent reporting and accountability requirements set out in the Commonwealth Government Business Enterprises Governance and Oversight Guidelines. This includes maintaining high standards of transparency, financial reporting, and governance practices to ensure that the Commonwealth's interests are protected and that the company operates in a manner consistent with best practices. Additionally, the company must ensure that its operations align with the objectives of the Moorebank Intermodal Terminal Project, which involves the construction of an intermodal terminal on Commonwealth land in south-western Sydney. Failure to comply with the requirements of the CAC Act and the associated guidelines may result in various consequences. While the Regulation itself does not introduce new offences or penalties, non-compliance with the reporting and accountability provisions could lead to scrutiny from oversight bodies and potential reputational damage. Furthermore, the Commonwealth has the authority to take corrective actions to ensure compliance, which could include additional oversight or even the revocation of the GBE status if the company fails to meet its obligations. The precise civil or administrative consequences would depend on the nature and severity of the non-compliance, but the overarching aim is to uphold the integrity and effectiveness of the Commonwealth's governance framework.