Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2) 1999 No. 163
Explanatory Statement
Statutory Rules 1999 No. 163
Issued by the authority of the Minister for industry, Science and Resources
Petroleum Retail Marketing Sites Act 1980
Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2)
Section 15 of the Petroleum Retail Marketing Sites Act 1980 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Section 12 of the Act provides a person with the right to obtain an injunction when a prescribed oil company (oil company named in the regulations) operates above its quota of retail sites. Section 12 is the only provision in the Act where a possibility of a private right exists.
The Act is designed to restrain vertical integration (ie. firms producing related goods and services in a supply chain) by the major oil companies, in order to encourage competition between resellers at the retail level. The Act establishes quotas on the number of retail outlets which each company may directly operate.
The Petroleum Retail Marketing Sites Regulations ("the principal Regulations") are amended to allow a temporary increase in BP Australia Ltd's allocation from 102 to 212 sites for the period 1 June 1999 to 30 September 1999. BP Australia Ltd already has a temporary increase in their allocation from 87 to 102 sites for the period up to 30 June 1999.
The term "retail site" is defined in Section 3, the Interpretation Section of the Act, as "premises at which motor fuel is sold by retail", in other words, a petrol station which sells petrol in retail trade.
The site increase is to operate retrospectively from 1 June 1999 to coincide with the date at which BP Australia Limited exceeded its quota because it was unwilling to re-franchise a large number of sites immediately prior to the proposed repeal of the Petroleum Retail Marketing Sites Act 1980 as this would place BP at a serious competitive and financial disadvantage. The Petroleum Retail Legislation Repeal Bill 1998 is currently before the Senate.
The reason for the temporary increase in quota is to enable BP Australia Limited to maintain its current temporary management arrangements for these sites until the Senate finalises consideration of the Bill.
The operative part of the amendment (regulation 3) commences retrospectively to 1 June 1999.
Subsection 48(2) of the Acts Interpretation Act 1901 (the Interpretation Act) provides that a retrospective regulation may not adversely affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth).
The Attorney-General's Department is of the view that the right to obtain an, injunction conferred by section 12 of the Act is unlikely to constitute a "right" for the purpose of section 48(2)(a) of the Interpretation Act.
Overview
The Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2) were enacted to address the need for a temporary adjustment in the quota of retail sites that BP Australia Ltd could operate, as permitted under the Petroleum Retail Marketing Sites Act 1980. The Act was originally designed to restrain vertical integration by major oil companies, thereby fostering competition among resellers at the retail level. It does so by establishing specific quotas on the number of retail outlets each company can operate directly. The 1999 amendment, issued by the authority of the Minister for Industry, Science and Resources, allows for a temporary increase in BP Australia Ltd's quota from 102 to 212 sites, effective from 1 June 1999 to 30 September 1999. This change is a response to BP Australia Ltd's previous temporary increase from 87 to 102 sites, which was set to expire on 30 June 1999. The purpose of this amendment is to accommodate BP Australia Ltd’s management arrangements during the period leading up to the potential repeal of the Act, as proposed by the Petroleum Retail Legislation Repeal Bill 1998, which was under consideration by the Senate at the time. The retrospective commencement of this regulation aims to prevent any adverse effects on individuals' rights, as stipulated in the Acts Interpretation Act 1901.
Scope and Application
The Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2) amends the Petroleum Retail Marketing Sites Regulations to allow a temporary increase in BP Australia Ltd's allocation of retail sites from 102 to 212 for the period from 1 June 1999 to 30 September 1999. The Act applies to major oil companies that operate petrol retail sites in Australia, with the primary objective of restraining vertical integration and encouraging competition in the petrol retail sector. The term "retail site" is defined as premises at which motor fuel is sold by retail, essentially referring to petrol stations. These regulations serve to address BP Australia Ltd's inability to re-franchise a significant number of sites immediately prior to the proposed repeal of the Petroleum Retail Marketing Sites Act 1980. The temporary increase in quota is intended to enable BP Australia Limited to maintain its current management arrangements for these sites until the Senate finalises consideration of the Petroleum Retail Legislation Repeal Bill 1998. The amendment operates retrospectively from 1 June 1999, and the Attorney-General's Department has determined that this retrospective application will not adversely affect the rights of individuals, as per subsection 48(2) of the Acts Interpretation Act 1901.
Key Provisions
The main operative sections of the Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2) allow for a temporary increase in the number of retail sites BP Australia Ltd can operate, as stated in regulation 3. This increase is set to rise from 102 to 212 sites, effective from 1 June 1999 to 30 September 1999, and applies retrospectively to coincide with the date BP Australia Ltd exceeded its quota. This regulation seeks to address BP Australia Ltd's refusal to re-franchise a large number of sites prior to the proposed repeal of the Petroleum Retail Marketing Sites Act 1980, which would place the company at a competitive and financial disadvantage. This amendment is designed to support BP Australia Ltd in maintaining its current management arrangements until the Senate completes its consideration of the Petroleum Retail Legislation Repeal Bill 1998.
These regulations impose specific obligations on BP Australia Ltd to adhere to the increased quota of retail sites, while ensuring that this temporary arrangement does not adversely affect the rights of individuals under section 48(2) of the Acts Interpretation Act 1901. The Attorney-General's Department considers that the right to obtain an injunction under section 12 of the Act is unlikely to constitute a "right" within the meaning of section 48(2)(a) of the Interpretation Act. The Act itself, as mentioned in section 15, grants the Governor-General the authority to make regulations for the purposes of the Act, with section 12 being the only provision allowing for a private right to seek an injunction against a prescribed oil company operating above its quota.
In terms of enforcement and consequences, the regulations do not explicitly outline specific offences or penalties for non-compliance with the amended quota. However, the Petroleum Retail Marketing Sites Act 1980 and the Petroleum Retail Marketing Sites Amendment Regulations 1999 (No. 2) provide the legal framework within which BP Australia Ltd must operate. Any breach of the Act or its regulations may result in legal action, such as the pursuit of an injunction under section 12, although the specific penalties are not detailed within these regulations. The overarching aim of the Act is to restrain vertical integration by major oil companies, thereby encouraging competition between resellers at the retail level.