STATUTORY RULES.
1942. No. 23.
REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939-1940.
Dated this twenty-eighth day of January, 1942.
GOWRIE
Governor-General.
By His Excellency’s Command,
J. B. CHIFLEY
for and on behalf of the Minister of State for Defence Co-ordination.
Amendments of the National Security (Capital Issues) Regulations.†
Loans totalling less than £1,500 in any period of twelve months not affected.
1. Regulation 15 of the National Security (Capital Issues) Regulations is amended by omitting the words “Two thousand five hundred” (wherever occurring) and inserting in their stead the words “One thousand five hundred ”.
Repeal of regulation 20a.
2. Regulation 20a of the National Security (Capital Issues) Regulations is repealed.
3. After regulation 27 of the National Security (Capital Issues) Regulations the following regulations are inserted:—
“Limitation on acceptance of deposits by certain bodies.
27a. A body, whether corporate or unincorporate (other than a bank, a building society, a declared pastoral company, a co-operative society or a partnership), shall not, without the consent in writing of the Treasurer, accept or receive any deposit so that the total amount of deposits held by that body (including the deposit then accepted or received) exceeds by more than One thousand five hundred pounds the amount of deposits held by the body on the twenty-ninth day of January, 1942.
* Notice in the Commonwealth Gazette on 28th January, 1942.
† Statutory Rules 1940, No. 218, as amended by Statutory Rules 1940, Nos. 242 and 291; and 1941, Nos. 150 and 304.
376.—Price 3d.
“Limitation on acceptance of deposits by building societies, &c.
27b. A building society, declared pastoral company or co-operative society shall not, without the consent in writing of the Treasurer, accept or receive any deposit so that the total amount of deposits held by that body exceeds by more than five per centum the amount of deposits held by the body on the twenty-sixth day of November, 1941.”.
Interpretation.
4. Regulation 28 of the National Security (Capital Issues) Regulations is amended by inserting before paragraph (a) the following paragraph:—
“(aa) ‘co-operative society’ means any body registered under the law of a State or Territory of the Commonwealth as a co-operative society, co-operative company or co-operative association, and includes any body which the Treasurer, by order, declares to be a co-operative society for the purposes of this Part;”.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules 1942, No. 23, titled "Regulations Under the National Security Act 1939-1940," were enacted by the Governor-General in Council to address economic challenges during World War II, specifically targeting capital issues and the acceptance of deposits by certain financial institutions. This legislative instrument aimed to strengthen the National Security Act by imposing stricter controls on financial activities to support the war effort and maintain economic stability. These regulations were established to prevent financial entities from exceeding specific deposit limits without written consent from the Treasurer, thereby ensuring that funds were appropriately managed and allocated during a period of national crisis.
Scope and Application
The Statutory Rules 1942 No. 23, made under the National Security Act 1939-1940, provide for amendments to the National Security (Capital Issues) Regulations, impacting the scope and application of these regulations. The regulations apply to various entities including corporate and unincorporated bodies, with specific exclusions for banks, building societies, declared pastoral companies, co-operative societies, and partnerships. The amendments adjust the threshold for loans, setting a new limit of £1,500 in any twelve-month period, thereby affecting the amount of capital that can be raised without specific consent from the Treasurer. Additionally, the regulations introduce new restrictions on the acceptance of deposits by certain bodies, stipulating that these bodies cannot accept deposits that would result in the total amount held exceeding certain specified limits without written consent from the Treasurer. These regulations are applicable across the Commonwealth, demonstrating the federal jurisdiction of the National Security Act 1939-1940.
Key Provisions
The main operative sections of these Regulations (1942 No. 23) pertain to amendments under the National Security Act 1939-1940. Specifically, Regulation 15 of the National Security (Capital Issues) Regulations is amended to change the threshold for loans from £2,500 to £1,500 in any twelve-month period, meaning loans less than £1,500 are not affected by these changes (section 1). Furthermore, Regulation 20a is repealed entirely (section 2). Two additional regulations, 27a and 27b, are introduced to impose limitations on the acceptance of deposits by certain entities, requiring written consent from the Treasurer to exceed specified deposit levels (section 3). Regulation 28 is also amended to include a definition of 'co-operative society', encompassing bodies registered as such under state or territory law or declared by the Treasurer (section 4).
The Regulations impose several obligations on the entities they govern. Non-financial institutions, such as corporate and unincorporated bodies (excluding specific entities like banks and building societies), must obtain written consent from the Treasurer before accepting deposits that would exceed their deposit levels on 29 January 1942 by more than £1,500 (Regulation 27a). Similarly, building societies, declared pastoral companies, and co-operative societies must seek consent before their deposits exceed their levels on 26 November 1941 by more than 5% (Regulation 27b). These regulations are designed to control and monitor the financial activities of these entities during a period of national security concern.
Breaching these Regulations can result in serious consequences. Although the specific penalties for non-compliance are not detailed in the Regulations themselves, the National Security Act 1939-1940 provides a framework under which penalties can be imposed. Generally, violations of regulations made under this Act can lead to both civil and criminal penalties, depending on the nature and severity of the breach. Civil penalties can include fines, while criminal penalties may involve imprisonment, reflecting the seriousness with which the government treats non-compliance with national security measures. The exact penalties would be determined in accordance with the provisions of the overarching Act.