National Security (Contracts Adjustment) Regulations (Amendment)

Legislation au C1942L00258 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1942. No. 258.

 

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 fourth day of June, 1942.

(SGD.) GOWRIE.

Governor-General.

By His Excellencys Command,

for and on behalf of the Minister of State for Defence.

 

Amendments of the National Security (Contracts Adjustment) Regulations.†

Definitions.

1.—(1.) Regulation 3 of the National Security (Contracts Adjustment) Regulations is amended—

(a) by inserting in sub-regulation (1.), after the definition of Territory, the following definition:—

“‘the Jervis Bay Territory means the Territory accepted by the Commonwealth in pursuance of the Jervis Bay Territory Acceptance Act 1915 and described in the agreement set out in the Schedule to that Act;; and

 

* Notified in the Commonwealth Gazette on , 1942.

† Statutory Rules 1942, No. 65, as amended by Statutory Rules 1942, Nos. 98 and 162.

3911.—Price 3d. 20/2.6.1942.


(b) by omitting the definition of tribunal and inserting in its stead the following definition:—

“‘tribunal, in relation to any application, means—

(a) where the matter at issue does not exceed in value Five hundred pounds and the respondent resides or carries on business—

(i) in a State (other than the State of Tasmania) or in the Northern Territory or the Australian Capital Territory—a court of limited civil jurisdiction constituted by a Police, Stipendiary or Special Magistrate in the State or Territory in which the respondent resides or carries on business;

(ii) in the State of Tasmania—a Court of Requests;

(iii) in the Jervis Bay Territory—a court of limited civil jurisdiction in the State of New South Wales constituted by a Police, Stipendiary or Special Magistrate;

(iv) in the Territory of Papua—a court of limited civil jurisdiction in that Territory;

(v) in the Territory of New Guinea—a District Court in that Territory; and

(vi) in Norfolk Island—the Court of Norfolk Island sitting in its full Jurisdiction;

(b) where the matter at issue exceeds in value Five hundred pounds but does not exceed in value Two thousand pounds—

(i) a District Court, County Court or Local Court of Full Jurisdiction in the State or Territory in which the respondent resides or carries on business;

(ii) if there is no such court or the respondent resides or carries on business in the Territory of New Guinea—except in the State of Tasmania, the Supreme Court of the State or Territory in which the respondent resides or carries on business;


(iii) if the respondent resides or carries on business in the State of Tasmania—a Court of Requests constituted by a barrister, solicitor, attorney or proctor;

(iv) if the respondent resides or carries on business in the Jervis Bay Territory—a District Court in the State of New South Wales; or

(v) if the respondent resides or carries on business in Norfolk Island—the Court of Norfolk Island sitting in its Full Jurisdiction; or

(c) where the matter at issue exceeds in value Two thousand pounds—

(i) the Supreme Court of the State or Territory in which the respondent resides or carries on business;

(ii) if the respondent resides or carries on business in the Jervis Bay Territory—the Supreme Court of the Australian Capital Territory; or

(iii) if the respondent resides or carries on business in Norfolk Island—the Court of Norfolk Island sitting in its Full Jurisdiction..

(2.) A tribunal to which an application has been made prior to the commencement of this regulation in pursuance of the National Security (Contracts Adjustment) Regulations shall have jurisdiction to hear and determine the application notwithstanding the amendments made by this regulation.

Adjustment of contracts.

2. Regulation 4 of the National Security (Contracts Adjustment) Regulations is amended—

(a) by inserting in sub-regulation (1.), after the word cancelling, the words , or suspending the operation of,; and

(b) by inserting in sub-regulation (2.), after the word cancelling, the words , suspending the operation of.

Orders may be made subject to terms and conditions, &c.

3. Regulation 6 of the National Security (Contracts Adjustment) Regulations is amended by inserting in paragraph (b), after the word cancellation, the words , or the suspension of the operation.

4. After regulation 9 of the National Security (Contracts Adjustment) Regulations the following regulation is inserted:—

Matters to be taken into consideration by tribunal.

9a.—(1.) In dealing with any application under these Regulations the tribunal shall, in the light of circumstances attributable to the war or the operation of any regulation made under the National Security Act 1939 or under that Act as subsequently amended, consider,


amongst other things, the question of the nature of the order (if any) under these Regulations which would be necessary in order that the contract or agreement may operate equitably with respect to the applicant and the respondent, and for that purpose shall have regard, amongst other things, to—

(a) the question whether any trading or business activities of the applicant and the respondent, respectively, have been affected by reason of circumstances attributable to the war or the operation of any regulation made under the National Security Act 1939, or under that Act as subsequently amended and, if so, to what extent;

(b) where the contract or agreement the subject of the application is in respect of the provision of a service or the use of any article, the extent (if any) to which the benefit of the service or the use of the article is affected by reason of those circumstances or the operation of any such regulation;

(c) the question whether the making of any order under these Regulations granting relief to, or conferring a right on, the applicant would be likely to result in hardship being suffered by the respondent; and

(d) the question whether the refusal to make any such order would be likely to result in hardship being suffered by the applicant.

(2.) In dealing with an application under these Regulations by a person engaged in farming or grazing operations with respect to a contract or agreement, being a mortgage of, or contract or agreement for the sale of, farming or grazing land, the tribunal shall have regard, amongst other things, to—

(a) the question whether the performance or further performance of the contract or agreement has become or is likely to become unduly onerous by reason of—

(i) any difficulty in obtaining materials or equipment;

(ii) any shortage of labour;

(iii) any difficulty in the marketing of the produce of the land; or

(iv) any reduction in the price of the produce of the land;

(b) the question whether it is in the interests of the defence of the Commonwealth that the application should be granted; and

(c) the question whether the applicant would be likely, if the application were granted (in whole or in part), to be able to continue to carry on his farming or grazing operations successfully..

Authority to trustees, &c., to vary contracts.

5. Regulation 18 of the National Security (Contracts Adjustment) Regulations is amended by inserting in sub-regulation (1.), after the word cancellation, the words , suspension of the operation.

 

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

Overview

The Statutory Rules 1942 No. 258, Regulations Under the National Security Act 1939–1940, were introduced to provide a legal framework to manage and adjust contracts during the exigencies of wartime. Enacted by the Governor-General, acting on the advice of the Federal Executive Council, these regulations sought to address the challenges posed by the Second World War on domestic and international contracts by providing mechanisms to either suspend or cancel contracts in the interest of national security. The policy objective was to ensure that economic activities could be managed to support the war effort, allowing for the equitable adjustment of contracts in light of the extraordinary circumstances brought about by the conflict.

Scope and Application

The Statutory Rules of 1942, No. 258, amends the National Security (Contracts Adjustment) Regulations under the National Security Act 1939–1940. These regulations apply to any contract or agreement that is affected by circumstances attributable to the war or by any regulation made under the National Security Act. The amendments extend to all persons and entities within the Commonwealth of Australia, including the Jervis Bay Territory, the Australian Capital Territory, the Northern Territory, the State of Tasmania, the Territory of Papua, the Territory of New Guinea, and Norfolk Island. The regulations provide authority for tribunals to adjust, suspend, or cancel contracts to ensure equitable operation during wartime, taking into account the specific challenges faced by the parties involved. The tribunals' jurisdiction varies depending on the monetary value of the matter at issue and the location of the respondent, with provisions tailored for different states, territories, and specific jurisdictions such as the Jervis Bay Territory and Norfolk Island. Additionally, the amendments clarify the types of matters that tribunals must consider when making decisions, particularly focusing on the impact of the war and regulations on the parties' ability to perform contracts and the potential for hardship.

Key Provisions

The Regulations under the National Security Act 1939–1940 amend the existing National Security (Contracts Adjustment) Regulations to better address the impacts of World War II on commercial contracts. Section 1 amends the definitions within the Regulations, notably by defining "the Jervis Bay Territory" and updating the definition of "tribunal" to specify the appropriate courts or magistrates for different monetary values of the matter at issue, across various Australian territories and jurisdictions (1(1), (2)). Section 2 allows tribunals to suspend the operation of contracts in addition to cancelling them, and section 3 permits orders to be made subject to terms and conditions, including suspension of contract operations (2, 3). Furthermore, section 4 adds a new regulation (9a) that mandates tribunals to consider specific factors when dealing with applications under the Regulations, such as the impact of war circumstances on the parties' business activities and the potential for hardship to either party if relief is granted or denied (4(1), (2)). Finally, section 5 amends Regulation 18 to allow trustees and others to suspend the operation of contracts, in addition to cancelling them (5). These Regulations impose specific obligations on tribunals to consider detailed circumstances when deciding on applications to adjust contracts, particularly focusing on the effects of war and regulations made under the National Security Act on the parties involved. Tribunals must weigh the potential hardships to either party and consider the broader interests of national defence, especially in cases involving farming or grazing operations (4(1), (2)). Additionally, the Regulations require that certain definitions be applied consistently across various territories and jurisdictions, ensuring uniformity in the interpretation and application of the law (1(1), (2)). The Regulations do not explicitly outline specific offences, penalties, or consequences for breach within the text provided. However, the National Security Act 1939–1940 itself, under which these Regulations are made, may include provisions for offences and penalties. Typically, breaches of regulations made under such Acts could result in civil or criminal penalties, including fines or imprisonment, depending on the severity and nature of the breach. The exact penalties would be governed by the broader provisions of the National Security Act and any other relevant legislation.

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National Security Law
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Regulation
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Definitions & Interpretation
Regulatory Standards
Adjustment of contracts

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