Papua New Guinea Loans Guarantee Act 1975
No. 99 of 1975
An Act to provide for a Statutory Guarantee by Australia in respect of the repayment, on and after the date on which Papua New Guinea attains Independence, of certain Public Loans raised before that date by the Government of Papua New Guinea
Contents
1 Short title
2 Commencement
3 Guarantee
4 Appropriation
Papua New Guinea Loans Guarantee Act 1975
No. 99 of 1975
An Act to provide for a Statutory Guarantee by Australia in respect of the repayment, on and after the date on which Papua New Guinea attains Independence, of certain Public Loans raised before that date by the Government of Papua New Guinea
[Assented to 9 September 1975]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Papua New Guinea Loans Guarantee Act 1975.
2 Commencement
This Act shall come into operation on 16 September 1975.
3 Guarantee
(1) Notwithstanding the repeal of section 75a of the Papua New Guinea Act 1949‑1975 by the Papua New Guinea Independence Act 1975, the guarantee deemed to have been given by Australia under that section in respect of the repayment of moneys borrowed in Australian currency before the date of commencement of this Act and the payment of interest in respect of those moneys shall, by force of this section, continue in force.
(2) For the purposes of the guarantee so continued in force, the liabilities of the Government of Papua New Guinea immediately before the date of commencement of this Act shall be deemed, on and after that date, to be liabilities of the Government of the Independent State of Papua New Guinea.
4 Appropriation
Any amount payable by Australia in pursuance of this Act is payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
Overview
The Papua New Guinea Loans Guarantee Act 1975 was enacted by the Parliament of Australia to address the issue of providing financial assurance for the repayment of certain public loans raised by the Government of Papua New Guinea before its independence. This Act ensures the continuation of a statutory guarantee by Australia for the repayment of these loans and associated interest after Papua New Guinea's independence, which was attained on 16 September 1975. The policy objective behind this legislation is to provide stability and continuity in financial obligations for the newly independent nation, ensuring that existing debts are honoured and that the economic transition is managed smoothly. The Act appropriates any payments made by Australia under its terms from the Consolidated Revenue Fund.
Scope and Application
The Papua New Guinea Loans Guarantee Act 1975 applies to the continuation of the statutory guarantee provided by Australia for the repayment of certain public loans raised by the Government of Papua New Guinea before the country's independence. This Act ensures that the guarantee, which was originally provided under the Papua New Guinea Act 1949-1975, remains in force despite the repeal of section 75a of that Act by the Papua New Guinea Independence Act 1975. The Act applies to the debts of the Government of Papua New Guinea, which are deemed to be the liabilities of the Government of the Independent State of Papua New Guinea from the date of the Act's commencement. The geographic reach of the Act is limited to transactions and conduct involving the specified loans and the respective governments of Papua New Guinea. Any payments made by Australia under this Act are to be funded from the Consolidated Revenue Fund.
The Act does not explicitly mention exclusions, exemptions, or thresholds, and it does not extend or restrict its application through subordinate instruments. The legislation is focused solely on ensuring the continuity of the guarantee related to the specified loans, thereby maintaining financial obligations post-independence.
Key Provisions
The Papua New Guinea Loans Guarantee Act 1975 (sections 3 and 4) provides for a statutory guarantee by Australia concerning the repayment of certain public loans raised by the Government of Papua New Guinea prior to its independence. Specifically, Section 3 ensures that the guarantee, previously provided under the repealed Section 75a of the Papua New Guinea Act 1949-1975, continues in force despite the repeal. This guarantee covers the repayment of moneys borrowed in Australian currency and the payment of interest on those loans, which now become the responsibility of the Government of the Independent State of Papua New Guinea. Section 4 stipulates that any amounts payable by Australia under this Act must be paid from the Consolidated Revenue Fund, with appropriate appropriations made accordingly.
The obligations imposed on parties under this Act primarily concern the continued financial responsibility of the Government of the Independent State of Papua New Guinea for the loans in question. This includes the repayment of principal and interest on the loans as they come due. Additionally, Australia is obligated to honor the guarantee provided under Section 3, ensuring that any amounts due on these loans are paid out of the Consolidated Revenue Fund, as specified in Section 4.
Failure to comply with the provisions of this Act could lead to various legal consequences. Although the Act itself does not explicitly detail offences, penalties, or specific civil or criminal consequences for breach, the obligations imposed are legally binding. The Government of the Independent State of Papua New Guinea must ensure timely repayment of the loans, and Australia must fulfill its guarantee obligation. Non-compliance by either party could potentially lead to legal actions, such as enforcement of the guarantee or financial claims for unpaid amounts. The Act's focus on ensuring the continuity of financial obligations underscores the importance of adherence to its provisions to maintain the integrity of the financial commitments established.