EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 92
LIQUID FUEL EMERGENCY ACT 1984
GUIDELINES UNDER SUB-SECTION 22(1)
Sub-section 22(1) of the Liquid Fuel Emergency Act 1984 (‘the Act’) provides that the Minister may, by instrument in writing, specify guidelines for the calculation of the quantities of fuel to be allocated by persons who are suppliers to their identified bulk customers during a declared liquid fuel emergency.
Under sub-section 22(2) of the Act, the Minister may, during an emergency, direct the supply of bulk fuel by persons who are suppliers to bulk customers (identified under sub-section 10(3)) in accordance with the previously designed bulk allocation procedures (Section 13). Sub-section 22(3) requires that the manner in which the quantities of fuels to be supplied to users are calculated will be in accordance with the Guidelines made under sub-section 22(1).
The Guidelines provide for allocation of fuels to identified bulk customers on the basis of historical monthly fuel purchase volumes with seasonal and trend adjustments; the actual quantity of fuel supplied to each user is a percentage of this adjusted historical monthly volume. The percentages of ‘normal’ consumption to be allocated may vary between Essential, High Priority and other users, and will be determined by the Minister. The Guidelines require the Minister to determine these percentages at
levels that will ensure that the total quantity of each fuel available, to each class of user in each State or Territory (and Commonwealth-defined fuel users) will be available for purchase. The Guidelines further require the Minister to determine the total quantities of each fuel to be made available in each of the above groups of Essential users to be sufficient to maintain activities at the highest possible level under the prevailing circumstances, while for High Priority users the total quantity of each fuel is to be sufficient to minimise, with due allowance for the prevailing circumstances, the discomfort, inconvenience or financial difficulties caused to the community. The total quantity of each fuel to be made available for allocation to other bulk customers is to be the residual quantity after the Essential and High Priority user appropriations have been determined.
Overview
The Liquid Fuel Emergency Act 1984 was enacted by the Parliament of Australia to provide a legislative framework for the management of fuel supply during a declared emergency. This Act addresses the potential disruptions to the supply of liquid fuel which could significantly impact essential services and the economy during critical situations. It establishes mechanisms for the allocation of fuel resources to ensure that essential services and high-priority users are prioritised during an emergency. The Act empowers the Minister to specify guidelines for the fair and efficient distribution of fuel to bulk customers, aiming to maintain essential activities at the highest possible level while minimising disruptions to the broader community. The primary policy objective is to ensure a structured and equitable distribution of fuel resources, preventing chaos and ensuring that critical services remain operational during a fuel supply crisis.
Scope and Application
The Liquid Fuel Emergency Act 1984 applies to suppliers of liquid fuel who supply to identified bulk customers, particularly during a declared liquid fuel emergency. This Act operates across the entire Commonwealth, with its provisions extending to all states and territories within Australia. The Act allows the Minister to specify guidelines for the calculation of fuel quantities to be allocated to bulk customers during such emergencies. These guidelines are designed to ensure that fuel is distributed in a manner that prioritises essential and high-priority users, taking into account historical monthly purchase volumes and making necessary adjustments for seasonal trends. The Act also empowers the Minister to direct the supply of bulk fuel in alignment with predetermined allocation procedures. Notably, the Act does not explicitly state exclusions, exemptions, or specific thresholds; however, it does mandate that the fuel allocation percentages for essential and high-priority users are set by the Minister to maintain critical activities and minimise community impact. The Act's application may be further refined through subordinate instruments, which provide additional detail on the implementation of these guidelines and directives.
Key Provisions
The Liquid Fuel Emergency Act 1984, particularly under sub-section 22(1), allows the Minister to specify guidelines for the calculation of fuel quantities to be allocated by suppliers to their identified bulk customers during a declared liquid fuel emergency. These guidelines (sub-section 22(3)) establish the method for calculating the fuel quantities based on historical monthly purchase volumes, adjusted for seasonal and trend variations. The actual fuel supplied to each user is determined as a percentage of this adjusted historical volume. Different percentages are allocated for Essential, High Priority, and other users, which are determined by the Minister to ensure adequate fuel supply for each class of user within each state or territory and for Commonwealth-defined fuel users.
Under the Act, the Minister has the authority to direct the supply of bulk fuel by suppliers to bulk customers during an emergency, as outlined in sub-section 22(2). This direction must adhere to the pre-designed bulk allocation procedures as specified in Section 13 of the Act. The obligations imposed on the parties by the Act include ensuring that fuel suppliers follow the guidelines set by the Minister for calculating and supplying fuel to identified bulk customers. These guidelines must be implemented to maintain essential activities at the highest possible level for Essential users, minimise discomfort and inconvenience for High Priority users, and ensure that the remaining fuel is available for other bulk customers.
Failure to comply with the guidelines or the directions issued by the Minister under the Act may result in legal consequences. While the specific offences, penalties, or civil/criminal consequences for breach are not detailed in the provided text, it is clear that adherence to the guidelines and directions is mandatory. Non-compliance could potentially lead to legal action, including fines or other penalties, as prescribed by relevant laws and regulations. The maximum penalties, if any, would be defined in the broader legislative framework or specific regulations associated with the Liquid Fuel Emergency Act 1984.