National Security (Shipping Requisition - Additional Compensation) Regulations

Overview

The National Security (Shipping Requisition—Additional Compensation) Regulations, 1942, were made under the authority of the National Security Act 1939-1940, aiming to address the issue of additional compensation for ship owners whose vessels were requisitioned during wartime. Enacted by the Governor-General in Council, these regulations were established to provide an additional payment to compensate ship owners for losses and outgoings they could not recover due to the requisition of their ships. The policy objective was to ensure that owners were fairly compensated for the economic impact of their ships being requisitioned by the Commonwealth for national security purposes. The regulations were designed to be flexible, allowing for the list of eligible ships and the compensation amounts to be periodically reviewed and adjusted by the Commonwealth Prices Commissioner and the Chairman of the Shipping Control Board.

Scope and Application

The National Security (Shipping Requisition—Additional Compensation) Regulations apply to ships that are requisitioned under the National Security (Shipping Control) Regulations. Specifically, these Regulations pertain to ships that are included on a list determined by the Commonwealth Prices Commissioner and the Chairman of the Shipping Control Board, who consult to ascertain which ships fall within the scope of these Regulations. Once the list is established, it is certified by the Commissioner and the Chairman and recorded in the Minutes of the Shipping Control Board. The Regulations provide for an additional compensation to be paid to the Owners of these requisitioned ships for the period during which they are under requisition, but not exceeding three years from the date of first requisition. The additional payment is intended to compensate the Owners for losses and outgoings that they were unable to recover due to the requisition, as per the powers of control exercised by the Commonwealth Prices Commissioner under the National Security (Prices) Regulations. The amount of this additional compensation is fixed by the Commonwealth Prices Commissioner, with a maximum limit of Two pounds per day. These Regulations extend the application of the National Security Act 1939-1940 by providing specific details on compensation for certain requisitioned ships within the broader framework of national security measures.

Key Provisions

The National Security (Shipping Requisition—Additional Compensation) Regulations (1942) set forth the manner in which certain ships requisitioned under regulation 11 of the National Security (Shipping Control) Regulations would receive additional compensation. These Regulations were made under the National Security Act 1939-1940 and are designed to compensate ship owners for losses and outgoings that they were unable to recover as a result of the requisitioning process (regs 1, 2). Specifically, the Commonwealth Prices Commissioner and the Chairman of the Shipping Control Board are to determine which ships fall within the scope of these Regulations and must settle a list of such ships, which is to be certified and recorded in the Minutes of the Shipping Control Board (regs 3, 4). For each ship listed, the Commonwealth is to pay an additional amount not exceeding Two pounds per day to the charter rate for the duration of the requisition, but not exceeding three years from the date of first requisition (reg 5). Under these Regulations, the Commonwealth Prices Commissioner and the Chairman of the Shipping Control Board bear the responsibility of determining which ships are eligible for additional compensation and must certify a list of these ships, which must then be recorded in the Minutes of the Shipping Control Board (regs 3, 4). They also have the authority to vary this list at any time in consultation with each other (reg 3(2)). Additionally, the Commonwealth Prices Commissioner is responsible for determining the amount of additional compensation to be paid for each eligible ship, with this amount not to exceed Two pounds per day (reg 5). Violation of these Regulations may result in civil or criminal penalties, depending on the nature and severity of the breach. For instance, failure to comply with the requirements for determining and certifying the list of eligible ships or for recording this list in the Minutes of the Shipping Control Board may result in civil penalties. Similarly, failure to pay the additional compensation as determined by the Commonwealth Prices Commissioner may also result in civil penalties. However, the exact nature and severity of these penalties are not specified in the text of the Regulations. In more serious cases, criminal penalties may apply, although again, the exact nature and severity of these penalties are not specified in the text of the Regulations.