EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 98
LIQUID FUEL EMERGENCY ACT 1984
GUIDELINES UNDER SUB-SECTION 24 (1)
Sub-section 24(1) of the Liquid Fuel Emergency Act 1984 (‘the Act’) provides that the Minister may, by instrument in writing, specify guidelines for directions to persons regulating or prohibiting the supply of fuel during each planning period of a declared lquid fuel emergency.
Under sub-section 24(2) of the Act the Minister may, during a declared emergency, regulate or prohibit the supply of specified refined liquid petroleum products either generally or to specific classes of fuel users for the duration of a planning period (Section 9). Sub-section 24(3) prevents the use of the power under 24(2) to control solely bulk customers. Directions given under sub-section 24(2) are to comply with Guidelines made under 24(1).
The Guidelines require that the directions under 24(2) ensure that the specified fuel is only supplied on evidence of entitlement to purchase the quantity supplied, and that the directions specify the maximum quantities of fuel to be supplied at one time or over a period. The Guidelines also provide for the directions to specify different quantities (and periods) for supply to different persons or classes of fuel users.
Overview
The Liquid Fuel Emergency Act 1984 was enacted to address potential shortages and disruptions in the supply of liquid fuel in Australia. This Act empowers the Minister to establish guidelines and issue directions during a declared liquid fuel emergency, ensuring controlled and equitable distribution of fuel. The primary policy objective of the Act is to safeguard the availability of essential liquid fuels to critical sectors and the general public, maintaining stability and preventing panic buying during fuel emergencies. The guidelines established under section 24(1) ensure that any regulation or prohibition on fuel supply adheres to fair and justifiable criteria, specifying conditions such as proof of entitlement and maximum allowable quantities. The Act was introduced by the Australian Parliament to provide a legal framework for managing and mitigating the impact of liquid fuel emergencies, thereby protecting public interest and economic stability.
Scope and Application
The Liquid Fuel Emergency Act 1984 applies to individuals and entities involved in the regulation or supply of refined liquid petroleum products during a declared emergency, including fuel suppliers and distributors. The Act’s jurisdictional reach is national, as it is a Commonwealth Act, meaning it applies across Australia. The Act empowers the Minister to issue guidelines and directives to manage the supply of fuel during a declared liquid fuel emergency, ensuring that such fuel is supplied according to evidence of entitlement and specified maximum quantities. These guidelines are designed to ensure a controlled and equitable distribution of fuel, especially when bulk customers are excluded from regulation. The Act also allows for the regulation or prohibition of fuel supply to specific classes of fuel users for the duration of a planning period during an emergency, thereby maintaining order and preventing shortages. Subordinate instruments, such as the guidelines mentioned, extend the application of the Act by providing detailed instructions on how the powers granted under the Act should be exercised.
Key Provisions
The Liquid Fuel Emergency Act 1984 includes several key provisions related to managing fuel supplies during a declared liquid fuel emergency. Sub-section 24(1) of the Act (Section 24(1)) allows the Minister to issue written guidelines that direct how fuel supplies should be regulated or prohibited during each planning period of the emergency. These guidelines are intended to ensure that fuel is supplied fairly and efficiently, based on evidence of entitlement and set maximum quantities.
Sub-section 24(2) (Section 24(2)) grants the Minister the authority to regulate or prohibit the supply of specified refined liquid petroleum products during the emergency. This can apply generally or to specific classes of fuel users for the duration of a planning period as defined in Section 9 of the Act. Importantly, sub-section 24(3) (Section 24(3)) specifies that the power to regulate or prohibit cannot be used solely to control bulk customers. Any directions issued under sub-section 24(2) must comply with the Guidelines established under sub-section 24(1).
The Act imposes specific obligations on the Minister and those subject to the directions. The Minister must ensure that any regulatory or prohibitive measures taken are consistent with the Guidelines, which mandate that fuel supplies are based on documented entitlement and set limits on quantities. The Guidelines also require the Minister to specify different supply quantities and periods for different persons or classes of fuel users, ensuring tailored approaches where necessary.
Failure to comply with the directions issued under the Act or the Guidelines may result in legal consequences. The Act does not explicitly detail the penalties or consequences for breach, but it is reasonable to infer that non-compliance could lead to enforcement actions, including potential fines or other legal penalties as prescribed by the relevant authorities. The severity of these penalties would depend on the specific nature and extent of the breach, but they could include both civil and criminal ramifications.
Overall, the Act and its associated Guidelines are designed to provide a structured and equitable approach to managing fuel supplies during a declared emergency, ensuring that critical resources are distributed efficiently and fairly among those who need them.