EXPLANATORY STATEMENT
STATUTORY RULE NO. 318 OF 1985
ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR TRANSPORT
NAVIGATION ACT 1912
NAVIGATION (LIMITATION OF SHIPOWNERS’ LIABILITY) REGULATIONS (AMENDMENT)
Sub-section 336(1) of the Navigation Act 1912 (‘the Act’) provides, in part, that the regulations may prescribe matters that are necessary or convenient to be prescribed for the purposes of carrying out or giving effect to the applied provisions of the International Convention relating to the limitation of the liability of owners of sea-going ships (‘the Limitation Convention’).
Sub-section 336(1) of the Act further provides, in particular, that the regulations may make provision for and in relation to the conversion of amounts of money expressed in units of account in the Limitation Convention into amounts of money expressed in the currency of Australia. The Navigation (Limitation of Shipowners’ Liability) Regulations (‘the Regulations’) were made pursuant to that sub-section.
As a result of the amendment of the Act made by the proclamation of section 178 of the Statute Law (Miscellaneous Amendments) Act (No. 2) 19 82 and the entry into force of the Protocol amending the Limitation Convention (refer Dept. Minute No. 17 of 1985), it is necessary to amend the Regulations.
The amendment relies on the new definition of ‘Convention’ in sub-section 330(1) of the Act, inserted by the commencement of section 178 of the Statute Law (Miscellaneous Amendments) Act (No. 2) 1982 (‘the Amending Act’) (refer Dept. Minute No. 17 of 1985). The amendment, which commences on 3 December 1985, is made in pursuance of section 4 of the Acts Interpretation Act 1901. That Act provides that regulations may be made as if (the empowering provision of) the Act had come into operation but the regulations shall not come into effect until (the empowering provision of) the Act comes into operation.
Regulation 5 of the Regulations provides for the conversion of francs into special drawing rights and for the conversion of special drawing rights into Australian currency, at the official rate of exchange determined by the Reserve Bank of Australia, for the purpose of determining the amounts to which liability may be limited under Article 3 of the Limitation Convention.
The Reserve Bank of Australia no longer determines an official rate of exchange - the value of the Australian dollar in terms of special drawing rights being determined in accordance with the method of calculation applied by the International Monetary Fund.
The amending regulation amends regulation 5 to reflect the manner in which the value of the Australian dollar in terms of special drawing rights is determined and to include the term ‘unit of account’ instead of ‘francs’, in accordance with the provisions of the Protocol.
Overview
The Navigation (Limitation of Shipowners’ Liability) Regulations (Amendment) Statutory Rule No. 318 of 1985, issued by the authority of the Minister of State for Transport, amends the existing Navigation (Limitation of Shipowners’ Liability) Regulations to align with the changes introduced by the Statute Law (Miscellaneous Amendments) Act (No. 2) 1982 and the Protocol amending the International Convention relating to the limitation of the liability of owners of sea-going ships. The Navigation Act 1912 empowers the creation of regulations necessary for implementing the Limitation Convention, and these amendments address the updated procedures for converting monetary values in accordance with the revised calculation methods for special drawing rights by the International Monetary Fund, as the Reserve Bank of Australia no longer determines the official rate of exchange.
The policy objective behind these amendments is to ensure that the regulations governing the limitation of shipowners’ liability remain consistent with international standards and reflect current financial practices, thereby protecting shipowners while also safeguarding the interests of claimants in marine incidents.
Scope and Application
The Navigation (Limitation of Shipowners’ Liability) Regulations (Amendment) Statutory Rule No. 318 of 1985 amends the existing regulations under the Navigation Act 1912 to align with the amended International Convention relating to the limitation of the liability of owners of sea-going ships, as well as changes in the method of determining the value of the Australian dollar in terms of special drawing rights. This amendment applies to shipowners, charterers, and other entities involved in maritime activities that are subject to the Limitation Convention, which aims to limit their liability in certain circumstances. The amendment has a national reach as it pertains to the conversion of currency values for the purpose of applying the Limitation Convention in Australia. The regulations are amended to reflect that the Reserve Bank of Australia no longer determines the official rate of exchange, with the value of the Australian dollar in terms of special drawing rights now determined in accordance with the method of calculation applied by the International Monetary Fund. These amendments are intended to ensure the Regulations remain consistent with international standards and practices and are effective from 3 December 1985, as per section 4 of the Acts Interpretation Act 1901.
Key Provisions
The Navigation (Limitation of Shipowners’ Liability) Regulations (Amendment) Statutory Rule No. 318 of 1985 amends the existing regulations to align with recent legislative changes and international agreements. Section 336(1) of the Navigation Act 1912 allows for the creation of regulations necessary to implement the International Convention relating to the limitation of the liability of owners of sea-going ships. Regulation 5, as amended, provides the mechanism for converting monetary values specified in the Limitation Convention into Australian currency, specifically to determine the limits of liability under Article 3 of the Convention.
Under the amended regulations, parties must now follow the updated process for converting the unit of account into Australian dollars, reflecting the change in how the value of the Australian dollar in terms of special drawing rights is determined. This change is mandated by the Reserve Bank of Australia, which no longer sets an official rate of exchange. Instead, the conversion must be carried out in accordance with the method of calculation applied by the International Monetary Fund. This ensures that the conversion reflects current international financial standards.
Entities governed by the Navigation Act 1912 and the Limitation Convention are required to comply with these amendments. This includes shipowners and other relevant parties who must ensure that any calculations related to liability limits are made in accordance with the updated regulations. The new process for conversion must be adhered to, and any documentation or claims must reflect the accurate conversion rates as determined by the International Monetary Fund.
Failure to comply with the amended regulations may result in legal consequences. While the specific penalties are not outlined in the text, non-compliance with statutory rules and regulations generally may lead to civil or criminal liabilities, depending on the severity and intent of the breach. The penalties could range from fines to more severe legal actions, depending on the jurisdiction and the nature of the non-compliance. It is crucial for parties to stay informed and ensure they meet all regulatory requirements to avoid potential repercussions.