EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO.96
LIQUID FUEL EMERGENCY ACT 1984
GUIDELINES UNDER SUB-SECTION 11 (1)
Sub-section 11 (1) of the Liquid Fuel Emergency Act 1984 (‘the Act’) provides that the Minister may, by instrument in writing, specify guidelines to be observed in identifying persons or organisations as Essential and High Priority users of a specified fuel in a particular State or Territory.
Sections 21 and 22 of the Act provide, inter alia, for separate calculations of the quantities of fuel to be allocated, during a declared emergency, to identified Essential, and High Priority users, and to other users. Under sub-sections 11(3) and 11(4), Essential and High Priority users may be identified by the Minister and by appropriate State and Tertiory Energy Ministers only in accordance with guidelines under 11(1) that are in force immediately before each identification.
The Guidelines define the criteria for identification as an Essential user, based on the need for fuel to maintain activities that are indispensable for the provision of goods or services that are essential for the health, safety or general welfare of the community, or to avoid substantial and irrecoverable financial loss in excess of other persons or organisations, or to avoid substantial stand-downs of employees in excess of that occurring generally.
For High Priority users, the conditions for identification are based on the need for fuel to maintain activities indispensable
for the provision of goods or services that contribute substantially to the welfare of the community, or without which the magnitude of the fuel shortage would be increased.
Overview
The Liquid Fuel Emergency Act 1984 was enacted to address the urgent need for a structured response to fuel shortages during emergencies, ensuring the fair and equitable distribution of fuel resources to maintain essential services and protect public welfare. The Act empowers the Minister to specify guidelines for identifying Essential and High Priority users of fuel in each state and territory during a declared emergency. The objective of these guidelines, as outlined in the explanatory statement, is to ensure that fuel is allocated based on the critical needs of the community, thereby preventing substantial and irrecoverable financial losses or significant employee stand-downs. This legislative framework aims to mitigate the adverse effects of fuel shortages by prioritising the allocation of fuel to those sectors that are indispensable for the health, safety, and general welfare of the community.
Scope and Application
The Liquid Fuel Emergency Act 1984 applies to the identification of Essential and High Priority users of specified fuel within the Commonwealth of Australia, encompassing both federal and state/territory jurisdictions. This Act empowers the Minister, in consultation with relevant state and territory Energy Ministers, to establish guidelines under sub-section 11(1) for determining which persons or organisations qualify as Essential and High Priority users during a declared fuel emergency. These guidelines must be observed when identifying users in any particular state or territory. Essential users are those whose fuel needs are critical to sustaining activities that are vital for the health, safety, or general welfare of the community, or to prevent significant financial losses or substantial workforce reductions that would disproportionately affect the user compared to others. High Priority users, on the other hand, are those whose fuel needs are crucial for maintaining activities that substantially contribute to the community’s welfare, or without which the severity of the fuel shortage would be exacerbated. The Act allows for the application of these guidelines through subordinate instruments, thereby extending or restricting the application as necessary.
Key Provisions
The Liquid Fuel Emergency Act 1984 contains several key provisions that pertain to the allocation and identification of essential and high priority users of specified fuels during a declared emergency. Section 11(1) of the Act empowers the Minister to establish guidelines for identifying such users, while sections 21 and 22 outline the processes for calculating the quantities of fuel to be allocated to these users during an emergency. These guidelines, as specified in sections 11(3) and 11(4), must be adhered to by both the Minister and the relevant State and Territory Energy Ministers when identifying Essential and High Priority users. The Guidelines clarify that an Essential user is one whose activities are indispensable for maintaining the provision of goods or services that are crucial for the health, safety, or general welfare of the community, or those that would suffer substantial and irrecoverable financial loss or substantial employee stand-downs if not adequately supplied with fuel. High Priority users, meanwhile, are identified based on their need for fuel to maintain activities that significantly contribute to community welfare, or without which the severity of a fuel shortage would be exacerbated.
The Act imposes specific obligations on the Minister and relevant state and territory officials to follow the guidelines when identifying Essential and High Priority users. These guidelines must be in force before any identification is made, ensuring a consistent and transparent process. The Act also requires that the identification process be conducted with due regard to the criteria specified in the Guidelines, ensuring that only those users whose needs align with the defined criteria are considered for priority allocation. Additionally, the Act mandates that separate calculations be made for the quantities of fuel to be allocated to Essential, High Priority, and other users, ensuring that resources are distributed according to the established priorities.
Failure to comply with the provisions of the Liquid Fuel Emergency Act 1984 and the associated guidelines can result in significant legal consequences. While the Act does not explicitly state penalties for non-compliance, the nature of the Act suggests that breaches could potentially lead to both civil and criminal liabilities. Civil penalties may include fines or other financial penalties imposed by regulatory bodies, while criminal penalties could involve imprisonment, reflecting the seriousness with which the Act treats the proper allocation of fuel during emergencies. The specific penalties would be determined by the courts, but they could potentially include significant fines and/or imprisonment for those found to be in breach of the Act’s requirements.