Export Finance and Insurance Corporation Regulations (Amendment)

Overview

The Export Finance and Insurance Corporation Regulations (Amendment) 1995 No. 442, issued under the authority of the Minister for Industry, Science and Technology, amends the Export Finance and Insurance Corporation Regulations to address the growing demand for the Corporation's lending facilities. This demand is expected to increase in line with the growth of Australian exports and aid-supported lending, particularly in sectors such as telecommunications and associated services exports to countries like China. The Corporation provides loans to foreign buyers of Australian capital goods and related services that are typically unavailable from commercial sources. The Act aims to ensure that the Corporation can continue to support Australian exporters by increasing the total amount of money that can be lent at any time from $3,300 million to $3,500 million. This amendment is necessary to meet the anticipated rise in demand for the Corporation's lending facilities without inconsistency with the provisions of the Export Finance and Insurance Corporation Act 1991.

Scope and Application

The Export Finance and Insurance Corporation Regulations (Amendment) 1995 No. 442 amends the Export Finance and Insurance Corporation Regulations 1991, which are subordinate instruments made under the Export Finance and Insurance Corporation Act 1991. The Act provides for the establishment of the Export Finance and Insurance Corporation to facilitate the financing of exports of Australian capital goods and related services, particularly in instances where commercial finance is not readily available. The Corporation operates to support Australian exporters by providing loans to foreign buyers, thus enhancing the competitiveness of Australian products in international markets. The Regulations are designed to implement the provisions of the Act and prescribe necessary details such as the maximum amount of loans the Corporation can provide. The amendment to the Regulations increases the total loan limit from $3,300 million to $3,500 million, reflecting the anticipated growth in demand for the Corporation's lending facilities in line with increasing Australian exports and aid-supported lending initiatives. This adjustment aims to ensure that the Corporation can continue to effectively support Australian exporters without breaching the legislative framework set by the Act.

Key Provisions

The Export Finance and Insurance Corporation Regulations (Amendment) 1995 No. 442 amends the existing regulations under the Export Finance and Insurance Corporation Act 1991 (the Act). Specifically, Section 91 of the Act allows the Governor-General to make regulations, which must not be inconsistent with the Act, to prescribe matters required or permitted to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The primary focus of this amendment is to increase the total amount of loans that can be provided by the Corporation under its lending facilities. Under the amended Regulation, the total amount of money that can be lent by the Corporation at any one time is increased from $3,300 million to $3,500 million. This amendment responds to the growing demand for the Corporation's lending facilities, which is expected to grow in line with the level of Australian exports and the increase in aid supported lending through the Development Import Finance Facility operated by AusAID. This facility is designed to support the purchase of Australian capital goods and related services, such as telecommunications equipment and associated operational services, particularly in markets like China. The obligations imposed by the amended Regulation require the Corporation to adhere to the new prescribed limit on the total amount of loans it can provide. This ensures that the Corporation's lending activities are within the bounds set by the Act and the amended Regulation, thus maintaining the financial stability and compliance of the Corporation's operations. Failure to comply with the provisions of the amended Regulation could result in legal consequences. While the specific penalties for breach are not detailed in the Explanatory Statement, it is implied that non-compliance could lead to civil or criminal penalties, depending on the severity and intent of the breach. The penalties for such breaches could include fines or other sanctions, as stipulated by the Act or other relevant legislation. The exact nature and extent of these penalties would need to be determined in the context of a specific breach and the applicable laws.