National Security (Coal) Regulations (Amendment)

Legislation au C1940L00085 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1940. No. 85.

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REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939.*

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.

Dated this fourteenth day of May, 1940.

GOWRIE

Governor-General.

By His Excellency’s Command,

ROBERT G. MENZIES

Minister of State for Defence Co-ordination.

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Amendment of the National Security (Coal) Regulations.†

After regulation 11 of the National Security (Coal) Regulations the following regulations are added:—

Power to requisition coal.

“12.—(1.) A Minister may, if in his opinion the supply of coal is endangered or likely to be endangered, by order acquire coal on behalf of the Commonwealth.

“(2.) Any such order may relate to coal won from time to time or within any specified period or periods from any particular coal mine, or from some or all of the coal mines in any particular district or part of Australia, or from all of the coal mines in Australia, which is at the pit head or, if so specified in the order, which is at the point of production or between that point and the pit head.

“(3.) Notice of the making of any order may be given to the owner of the mine to which it relates, either—

(a) by the publication of a copy of the order in the Gazette; or

(b) by the service of a copy of the order upon the owner or person in charge of the mine.

“(4.) Upon notice of the making of the order being given, the coal shall vest in the Commonwealth, and the owner of the coal mine shall comply as soon as is reasonably practicable, or from time to time, as the case may be, with all directions given by any person (in this regulation referred to as ‘an authorized person’) thereto authorized in writing for the purposes of the order, by a Minister.

“(5.) The owner of any coal mine from which coal is acquired in pursuance of this regulation shall deliver to the Government of the State in which the coal is situated, or shall permit or suffer that Government to take delivery or possession of, the coal acquired.

 

*Notified in the Commonwealth Gazette on 14th May, 1940.

† Statutory Rules 1940. No. 61, as amended by Statutory Rules 1940, No. 79.

2980.––Price 3d.


“(6.) The compensation payable to the owner of any coal mine from whom coal is acquired in pursuance of this regulation shall be an amount equal to the cost of producing the coal, plus the additional cost (if any) of bringing it to the place of acquisition.

“(7.) If any dispute arises with respect to the cost of the production, or bringing to the place of acquisition, of any coal, the price shall be determined by arbitration in accordance with the laws of the State in which the coal is acquired.

“(8.) The compensation payable in pursuance of either of the last two preceding sub-regulations shall be paid by the Government of the State to which the coal is delivered, or which is permitted or suffered to take delivery or possession of the coal, and such payment by the State is hereby guaranteed by the Commonwealth.

Distribution and sale of acquired coal.

“13.—(1.) The Government of any State to which coal is delivered or which takes delivery or possession of coal in pursuance of the last preceding regulation shall be charged with the duty of distributing, selling or otherwise disposing of the coal.

“(2.) The selling price of coal sold by the Government of a State in pursuance of this regulation shall be such price as is determined by that Government.

Insurance of mine owner against sabotage.

“14.—(1.) If any coal mine, in or at which coal is acquired in pursuance of regulation 12 of these Regulations, or any building, vehicle, machinery, apparatus or other thing used, or intended to be used or capable of being used, for the purposes of working the coal mine, is destroyed or damaged, or if its efficiency is impaired or its working impeded, the Commonwealth shall pay to the owner of the coal mine compensation in respect of any loss thereby sustained by him, not being loss of good-will or profits, provided a Minister is satisfied that the owner holds a policy of insurance, which is of full force and effect, against all insurable risks in respect of the coal mine.

“(2) Compensation payable under this regulation shall, in the absence of agreement, be determined by arbitration in accordance with the laws of the State in which the coal mine is situated.

Cancellation of contracts.

“15. All contracts and agreements existing on the fourteenth day of May, One thousand nine hundred and forty, for the supply of coal by the owners of coal mines on whom notices under regulation 9 of these Regulations have been served or from whom coal is acquired in pursuance of regulation 12 of these Regulations are hereby cancelled:

Provided that nothing in this regulation shall affect any rights or obligations under any contract or agreement to which this regulation applies, in respect of coal delivered before the date of this regulation.”.

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By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.

Overview

The Statutory Rules 1940 No. 85, titled Regulations Under the National Security Act 1939, were enacted to address the issue of safeguarding the national security of Australia during a time of heightened global conflict. This legislative instrument was introduced by the Governor-General in and over the Commonwealth of Australia, acting on the advice of the Federal Executive Council, and was subsequently notified in the Commonwealth Gazette on 14th May 1940. The policy objective of these regulations was to ensure the continued supply of essential resources, specifically coal, which was vital for national defence and industrial purposes. The regulations provided mechanisms for the requisitioning of coal, compensation for mine owners, distribution, and insurance against sabotage, reflecting the urgent need to maintain operational capabilities in the face of potential disruptions.

Scope and Application

These Regulations, made under the National Security Act 1939, extend the scope of the Act to the acquisition of coal within Australia, granting Ministers the authority to requisition coal if the supply is endangered or likely to be endangered. The Regulations apply to coal mine owners and the Commonwealth Government, and they cover the acquisition process, compensation, distribution, and insurance against sabotage. The geographic reach of these Regulations is national, encompassing all coal mines in Australia. The Regulations also specify that any disputes regarding compensation or the cost of coal production and acquisition will be resolved through arbitration under state laws. Additionally, these Regulations annul existing contracts for coal supply that were in effect prior to the date of the Regulations, although they do not affect any obligations related to coal delivered before this date. The Regulations can be further extended or modified through subordinate instruments, providing flexibility to adapt to changing circumstances.

Key Provisions

The Regulations under the National Security Act 1939 primarily focus on the acquisition, distribution, and compensation related to coal during a period when its supply was deemed endangered or likely to be endangered (regulation 12). Under this regulation, a Minister has the authority to acquire coal on behalf of the Commonwealth if the supply of coal is at risk. This acquisition can pertain to coal at the pit head, or between the point of production and the pit head, and can be from specific coal mines, districts, or all coal mines in Australia (regulation 12(2)). Notice of such an order must be given to the mine owner either through publication in the Gazette or by direct service of the order (regulation 12(3)). Upon notification of the order, the coal becomes the property of the Commonwealth, and the mine owner must comply with any directives from authorized persons, ensuring the coal is available for government use (regulation 12(4)). The owner must also deliver the acquired coal to the relevant State Government or allow them to take possession (regulation 12(5)). Compensation for the coal is to be paid by the State Government to the mine owner at a rate equal to the production cost plus any additional costs to bring the coal to the acquisition point. If there is a dispute regarding these costs, the price will be determined by arbitration under state law (regulation 12(6) and (7)). The Regulations also outline the obligations of the State Governments in handling the acquired coal. Once the coal is delivered or taken into possession by a State Government, it assumes the responsibility for distributing, selling, or otherwise disposing of the coal (regulation 13(1)). The selling price of the coal is determined by the State Government (regulation 13(2)). Additionally, the Commonwealth is obligated to compensate coal mine owners for any loss sustained due to damage or destruction of the mine or its equipment, provided the owner has an effective insurance policy against such risks (regulation 14(1)). The amount of compensation is determined by arbitration under state law if an agreement cannot be reached (regulation 14(2)). Furthermore, the Regulations provide for the cancellation of existing coal supply contracts that were in place on the specified date, with an exception for any coal already delivered before the date of these Regulations (regulation 15). Breach of these Regulations may result in legal consequences for the parties involved. The specific offences, penalties, or consequences for non-compliance are not detailed in the provided excerpt, but it is implied that failure to comply with the directives or obligations stipulated could lead to legal actions. The overarching aim of these Regulations is to ensure the secure and effective management of coal resources during a critical period, emphasizing the importance of compliance to maintain national security and the orderly distribution of resources.

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