EXPLANATORY STATEMENT
Statutory Rules 1987 No. 256
Conciliation and Arbitration Regulations (Amendment)
(Issued by the Authority of the Minister of State for Industrial Relations)
The Federal Airports Corporation Act 1986 received the Royal Assent on 4 March and was proclaimed to commence operation on 13 June 1986, This Act establishes the Federal Airports Corporation as a body corporate with perpetual succession. The primary function of the Corporation is the operation of Federal airports within Australia.
As a body corporate established under a law of the Commonwealth the Corporation came within the definition of “Commonwealth authority” in subsection 70A(1) of Division 1A of Part III of the Act. Division 1A gives the Australian Conciliation and Arbitration Commission (“the Commission”) jurisdiction in respect of industrial disputes and industrial matters affecting Commonwealth and Territory employees.
The definition of “Commonwealth authority” in subsection 70A(1) of the Act states that:
“‘Commonwealth authority’ means -
(a) a body corporate established for a public purpose by or under a law of the Commonwealth or an Ordinance of the Australian Capital Territory; or
(b) a company or other body corporate incorporated under a law of the Commonwealth or of a State or Territory, being a company or other body corporate in which the Commonwealth has a controlling interest;
other than -
(c) …
(d) …
(e) a body declared by the regulations to be a body to which this definition does not apply;”
The definition therefore enables regulations to be made excluding particular Commonwealth authorities from the definition and therefore from the operation of Division 1A of Part III of the Act. A number of Commonwealth authorities have already been excluded from the definition by regulation 164AAC of the Principal Regulations. The effect of such an exclusion from Division 1A is to bring the relevant authority within the general jurisdiction of the Commission contained in Division 1 of Part III of the Act.
It has been decided to exclude the Corporation from the definition of “Commonwealth authority”. The decision to do so was based upon the Corporation’s commercially orientated operation and is consistent with the exemptions already made for other major Government enterprises.
Accordingly, the amending regulation provides for the exclusion of the Corporation from the definition of “Commonwealth authority” and therefore from the operation of Division 1A of Part III of the Act.
Regulation 164AAC sets out the bodies declared to be bodies to which the definition of Commonwealth authority does not apply.
The regulation amends regulation 164AAC by the inclusion of a reference to the Federal Airports Corporation as a body to which the definition of “Commonwealth authority” in subsection 70A(1) of the Act does not apply.
Overview
The Federal Airports Corporation Act 1986, enacted to establish the Federal Airports Corporation as a body corporate responsible for the operation of federal airports, was introduced to address the need for a specific statutory framework governing the administration and operations of federal airports in Australia. The Federal Airports Corporation Act 1986 received the Royal Assent on 4 March and commenced on 13 June 1986. The Act was passed by the Commonwealth Parliament, with the policy objective of ensuring the efficient and effective operation of federal airports within Australia under a distinct legal entity. As part of its legislative framework, the Act was amended through the Conciliation and Arbitration Regulations to exclude the Corporation from the definition of "Commonwealth authority" under the Act, aligning with its commercial orientation and consistent with exemptions made for other major government enterprises. This amendment, introduced by statutory rules in 1987, further delineated the Corporation's operational scope and its exemption from certain industrial relations provisions.
Scope and Application
The Federal Airports Corporation Act 1986 establishes the Federal Airports Corporation as a body corporate responsible for the operation of federal airports within Australia. As a Commonwealth authority, it initially fell under the jurisdiction of the Australian Conciliation and Arbitration Commission concerning industrial disputes and matters affecting employees. However, the Corporation has been excluded from the definition of “Commonwealth authority” under the Act, thereby removing it from the specific jurisdiction outlined in Division 1A of Part III of the Act. This exclusion aligns with the Corporation’s commercial operations and follows the precedent set for other major government enterprises. The exclusion is implemented through an amending regulation that adds the Federal Airports Corporation to regulation 164AAC of the Principal Regulations, which lists bodies not considered Commonwealth authorities for the purposes of the Act. This amendment ensures the Corporation is subject to the general jurisdiction of the Commission as outlined in Division 1 of Part III of the Act rather than the more specific provisions in Division 1A.
Key Provisions
The Federal Airports Corporation Act 1986, as amended by Statutory Rules 1987 No. 256, establishes the Federal Airports Corporation as a body corporate with the primary function of operating federal airports in Australia. The Act, which received Royal Assent on 4 March 1986 and commenced operation on 13 June 1986, defines the Corporation’s role and its perpetual succession. The legislative changes introduced by the 1987 amendment focus on the Corporation’s exclusion from the definition of “Commonwealth authority” as outlined in subsection 70A(1) of Division 1A of Part III of the Act. This exclusion is intended to align with the Corporation’s commercially driven operations, distinguishing it from other Commonwealth authorities subject to the Australian Conciliation and Arbitration Commission’s jurisdiction over industrial disputes.
The amendment ensures that the Federal Airports Corporation is not classified as a “Commonwealth authority” as defined in the Act, thus removing it from the scope of Division 1A which pertains to industrial matters affecting Commonwealth and Territory employees. This decision reflects a broader policy of excluding major government enterprises from certain regulatory frameworks to accommodate their commercial activities. Regulation 164AAC of the Principal Regulations, which lists bodies exempt from the definition of “Commonwealth authority,” has been updated to include the Federal Airports Corporation. This regulatory change formalises the Corporation’s exclusion from the industrial dispute resolution mechanisms provided by Division 1A, aligning it instead with the general jurisdiction of the Commission under Division 1 of Part III of the Act.
Entities governed by the Act, particularly the Federal Airports Corporation, are subject to specific obligations and requirements due to their exclusion from the “Commonwealth authority” definition. This exclusion places them outside the purview of Division 1A, thereby relieving them from the specific industrial dispute resolution processes that apply to other Commonwealth authorities. Instead, they fall under the general jurisdiction of the Commission as stipulated in Division 1 of Part III of the Act. This shift means that any industrial matters or disputes involving employees of the Corporation are handled differently compared to those of other Commonwealth authorities, focusing on general rather than specialised industrial arbitration processes.
The Act does not explicitly outline specific offences, penalties, or consequences for breach within the provided text. However, general provisions in the Federal Airports Corporation Act 1986 and associated regulations would apply. Typically, breaches of statutory requirements in such contexts could lead to civil or administrative penalties, depending on the nature and severity of the breach. Given the Corporation’s exclusion from Division 1A, any industrial disputes would be subject to the general penalties and enforcement mechanisms under Division 1 of Part III of the Act. This could include fines, corrective actions, or other administrative measures as deemed necessary by the relevant authorities. The precise penalties would be determined in accordance with the broader legislative framework governing the Corporation’s operations.