EXPLANATORY STATEMENT
STATUTORY RULE 1987 No 334 ISSUED BY THE AUTHORITY OF THE MINISTER FOR TRANSPORT AND COMMUNICATIONS
Section 80 of the Overseas Telecommunications Act 1946 (‘the Act’) provides that the Governor-General may make regulations not inconsistent with the Act, prescribing all matters required or permitted to be prescribed by the regulations, or which are necessary or convenient to be prescribed by the regulations for carrying out or giving effect to the Act.
Subsection 38(2) of the Act provides that the Overseas Telecommunications Commission must obtain the Minister’s approval before entering into a contract exceeding the amount of $500,000, or if a higher amount is prescribed by regulations, that higher amount.
Regulation 13A of the Overseas Telecommunications Commission Regulations previously provided that, for the purpose of subsection 38(2) of the Act, the prescribed higher amount was $2,000,000.
It was decided to increase the prescribed amount to $6,000,000 which is in line with the threshold for referral of public works to the Parliamentary Standing Committee on Public Works.
The statutory rule amends 13A to provide that, for the purposes of subsection 38(2) of the Act, the prescribed higher amount is $6,000,000.
Overview
The Overseas Telecommunications Act 1946, enacted by the Parliament of Australia, governs the telecommunications services between Australia and overseas. This Act was introduced to address the need for regulatory oversight and governance of international telecommunications services, ensuring that such services are managed effectively and comply with relevant Australian laws and international agreements. The policy objective of the Act is to facilitate the provision of reliable and efficient telecommunications services while maintaining regulatory control over significant financial commitments and contracts. The Overseas Telecommunications Commission Regulations, which include regulation 13A, were established to provide further detail and operational guidelines for the Act. The statutory rule issued under the authority of the Minister for Transport and Communications adjusts the prescribed higher amount for ministerial approval of contracts from $2,000,000 to $6,000,000, aligning it with the threshold for referral of public works to the Parliamentary Standing Committee on Public Works. This amendment aims to ensure that significant financial decisions are appropriately scrutinised and authorised.
Scope and Application
The Overseas Telecommunications Act 1946 applies to the Overseas Telecommunications Commission, which is responsible for overseeing and regulating international telecommunications services in Australia. The Act primarily governs the conditions under which the Commission may enter into contracts, particularly those exceeding a specified monetary threshold. Under the Act, the Commission must seek approval from the Minister for Transport and Communications before entering into a contract exceeding $500,000, or a higher amount if prescribed by regulations. The statutory rule, issued under section 80 of the Act, amends the Overseas Telecommunications Commission Regulations to increase the prescribed higher amount from $2,000,000 to $6,000,000. This adjustment aligns with the threshold for referral of public works to the Parliamentary Standing Committee on Public Works, ensuring consistency in financial oversight and authorisation processes across relevant government bodies. This amendment does not alter the jurisdictional scope or application of the Act, which remains focused on the regulation of international telecommunications services within Australia.
Key Provisions
The Statutory Rule 1987 No. 334, issued under the authority of the Minister for Transport and Communications, amends the Overseas Telecommunications Commission Regulations. Specifically, it updates Regulation 13A, which concerns the threshold for contracts requiring Ministerial approval under the Overseas Telecommunications Act 1946. Under section 80 of the Act, the Governor-General is empowered to make regulations that are necessary for the Act’s implementation, including setting thresholds for contract approvals. Regulation 13A has been amended to increase the prescribed higher amount for contracts requiring Ministerial approval from $2,000,000 to $6,000,000. This change aligns the regulatory threshold with the criteria for referring public works to the Parliamentary Standing Committee on Public Works.
Entities governed by the Overseas Telecommunications Act 1946, particularly the Overseas Telecommunications Commission, must adhere to these regulatory changes. This means that any contract exceeding $6,000,000 now requires Ministerial approval before it can be entered into, in accordance with subsection 38(2) of the Act. This obligation ensures that significant financial commitments are appropriately scrutinised and authorised by the Minister, maintaining oversight over substantial expenditures related to overseas telecommunications activities.
Failure to comply with the requirements outlined in the Act and its regulations can result in legal consequences. While the Explanatory Statement does not detail specific offences or penalties, it is reasonable to infer that breaches of the regulatory requirements could lead to legal action under the Act. Typically, such breaches might result in civil or criminal penalties, including fines or other sanctions, as stipulated by the relevant provisions of the Act. The precise penalties would depend on the nature and severity of the breach, as well as any additional legislative provisions that apply.