Energy Research and Development Corporation Repeal Regulations 1999 1999 No. 314
Explanatory Statement Statutory Rules 1999 No. 314
Issued by the Authority of the Minister for Industry, Science and Resources Primary Industries and Energy Research and Development Act 1989 Energy Research and Development Corporation Repeal Regulations 1999
The purpose of the regulations is to abolish the Energy Research and Development Corporation (ERDC). Established in July 1990 under the Energy Research and Development Corporation Regulations (SR 1990, No. 65), Section 8 of the Act, the ERDC played a role in advancing energy supply and use technologies. The ERDC provided a foundation for industry to take on a greater role in funding research in conjunction with other Government assistance.
The Government decided, in the context of the 1997-98 Budget, to wind down the ERDC. The decision was taken in the context of the severe fiscal difficulties facing the Government. The proposed abolition of the ERDC has been in the public domain since May 1997 affording adequate opportunity for comment by representative organisations.
Regulations to abolish the ERDC were approved by the Governor-General in Council on 4 February 1998 but were later disallowed by the Senate.
The Government has taken a number of initiatives aimed at providing strong and continuing R&D support for energy technology/services industries which will enhance the international competitiveness of Australia's energy sector. The Government's climate change package announced in November 1997 which provides support for development and commercialisation in the renewable energy area and includes:
$30m for a Renewable Energy Commercialisation Program for strategically important renewable energy technologies; and
Energy and petroleum sectors in 1999-00 will receive funding of $45.7 million;
and
budget of $11 million.
Other initiatives include the Cooperative Research Centre Program ($10.5 million for the renewable energy CRC) and the R&D Start program. The Government has also committed some $100-$200 million per year over the next 3 years in support of
innovative, alternative energy supply and end-use options, as part of its new tax system related environmental package.
It has become more apparent with the passage of time that failure to repeal the regulation in early 1998 has meant that unnecessary expenses are being incurred in the maintenance of a Board and to meet the accountability requirements of the ERDC such as the production of annual reports. For example, the continued existence in law of the ERDC means at least $100,000 per annum ($80,000 for Directors' emoluments) is being added to the cost of administering the wind-down process. This is occurring despite all ERDC projects financial commitments being met and a limited. and declining level of activity as the affairs of the ERDC are being wound down.
The regulations to repeal the ERDC Regulations commence on gazettal.
Overview
The Energy Research and Development Corporation Repeal Regulations 1999 were enacted in 1999 to formally abolish the Energy Research and Development Corporation (ERDC), which was established in 1990 under the Energy Research and Development Corporation Regulations. The ERDC was created to advance energy supply and use technologies, facilitating industry involvement in funding research alongside government support. In light of fiscal constraints, the Australian Government decided to wind down the ERDC, a decision that was publicly disclosed in May 1997, allowing ample time for stakeholder feedback. Although initial regulations to this effect were approved by the Governor-General in Council in February 1998, they were subsequently disallowed by the Senate. As a result, the Government has taken various steps to ensure continued research and development support for energy technologies, including funding for renewable energy initiatives, the Cooperative Research Centre Program, and the R&D Start program. The ongoing existence of the ERDC has led to unnecessary administrative expenses, prompting the need for these regulations.
Scope and Application
The Energy Research and Development Corporation Repeal Regulations 1999 apply to the Energy Research and Development Corporation (ERDC), established under the Energy Research and Development Corporation Regulations (SR 1990, No. 65) pursuant to Section 8 of the Primary Industries and Energy Research and Development Act 1989. The regulations aim to formally abolish the ERDC, a body previously involved in advancing energy supply and use technologies, by eliminating the legal framework that supported its operations. This repeal is in line with the Government's decision to wind down the ERDC, influenced by fiscal constraints and the introduction of new initiatives aimed at bolstering the research and development support for energy technology and services industries in Australia. The regulations cover the termination of the ERDC’s activities, responsibilities, and accountability requirements, effectively ceasing its operations and associated administrative costs.
The regulatory changes have a national jurisdictional reach, applying across Australia as they pertain to the Commonwealth's legislative authority. The regulations do not specify exclusions or exemptions but focus on the comprehensive repeal of the ERDC. The decision to abolish the ERDC and the subsequent regulations have been publicly discussed since May 1997, allowing for adequate stakeholder consultation. Despite the initial disallowance by the Senate, the Government proceeded with the repeal to address the financial inefficiencies and administrative burdens associated with maintaining the ERDC in a state of wind-down. The regulations are intended to streamline the transition and avoid unnecessary expenditures, reflecting the Government's commitment to more efficient and targeted support for energy research and development.
Key Provisions
The Energy Research and Development Corporation Repeal Regulations 1999 (SR 1999 No. 314) were created to formally abolish the Energy Research and Development Corporation (ERDC) established under the Energy Research and Development Corporation Regulations (SR 1990, No. 65) and as stipulated in Section 8 of the Primary Industries and Energy Research and Development Act 1989. This decision to repeal the ERDC was made in the context of severe fiscal constraints faced by the government and was intended to streamline research funding and accountability in the energy sector. The regulations were initially approved by the Governor-General in Council on 4 February 1998, but were subsequently disallowed by the Senate.
These regulations impose a clear obligation on the entities governed by them to cease any activities and operations associated with the ERDC. This includes the dissolution of the ERDC Board, cessation of all ERDC projects, and the cessation of any related financial obligations or reporting requirements. The regulations aim to ensure that no further administrative or financial burdens are incurred by the continued existence of the ERDC, which has been deemed unnecessary given the winding-down process and the government's new initiatives for research and development in energy technologies.
Failure to comply with these regulations could potentially lead to continued financial liabilities and administrative burdens. Specifically, if the ERDC were to continue to operate, it would incur unnecessary costs, such as the annual cost of maintaining a Board and producing annual reports. The government estimates that this could add at least $100,000 per annum to the expenses, with $80,000 of this being attributed to Directors' emoluments. Such continued expenses are deemed unnecessary as all financial commitments of the ERDC projects are being met and the entity is in the process of winding down.
The regulations do not explicitly outline specific offences, penalties, or consequences for non-compliance. However, the underlying intent is to ensure that the winding-down process is completed efficiently and without additional financial burden. The primary focus is on the dissolution of the ERDC and the reallocation of resources to more effective and streamlined government initiatives for energy research and development.