EXPLANATORY STATEMENT
STATUTORY RULES 1984 No. 95
LIQUID FUEL EMERGENCY ACT 1984
GUIDELINES UNDER SUB-SECTION 12 (1)
Sub-section 12(1) of the Liquid Fuel Emergency Act 1984 (‘the Act’) provides that the Minister may, by instrument in writing, specify guidelines for determining the quantities, locations and stock-build periods of reserve stocks to be held by fuel industry corporations under the contingency planning powers of the Act.
Sub-section 12(2) of the Act empowers the Minister to direct certain oil companies to accumulate and maintain specified quantities of nominated fuels at prescribed locations, in anticipation of the requirement for such reserves during an emergency. Sub-section 12(3) requires the Minister’s directions to be in accordance with Guidelines under Sub-section 12(1).
The Guidelines ensure that the directions to build and hold stocks will be based on the consideration of advice from the oil industry, the capabilities of existing storage and distribution facilities and the equitable sharing between companies of the costs involved.