EXPLANATORY STATEMENT
STATUTORY RULE 1987 NO. 333 ISSUED BY THE AUTHORITY OF THE MINISTER FOR TRANSPORT AND COMMUNICATIONS
Section 116 of the Postal Services Act 1975 (‘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.
Section 82 of the Act provides that the Australian Postal 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 57 of the Postal Services Regulations previously provided that, for the purposes of section 82 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 repeals regulation 57 and inserts a new regulation 56A to provide that, for the purposes of section 82 of the Act, the prescribed higher amount is $6,000,000.
In addition to increasing the prescribed amount for the purposes of section 82, this amendment rectifies an error which led to the insertion of a second regulation 57 in the Postal Services Regulations. The effect of the regulation is to renumber regulation 57 (second occurring) so as to eliminate confusion arising from the previous duplication in the numbering of regulation 57.
Overview
The Statutory Rule 1987 No. 333, issued under the authority of the Minister for Transport and Communications, amends the Postal Services Regulations 1975 to address a discrepancy and update a financial threshold in the Postal Services Act 1975. This amendment was necessary to ensure consistency and alignment with other legislative requirements, particularly the threshold for referral of public works to the Parliamentary Standing Committee on Public Works. The Act originally set a lower threshold of $2,000,000 for the Australian Postal Commission to seek ministerial approval for contracts exceeding $500,000, but this was increased to $6,000,000 to reflect more accurately the scope of significant public expenditure. Additionally, the amendment rectifies an error in the regulation numbering system, eliminating confusion by renumbering a duplicated regulation. This change aims to streamline the regulatory framework and improve the clarity and efficiency of the legislative process.
Scope and Application
The Statutory Rule 1987 No. 333, issued under the authority of the Minister for Transport and Communications, amends the Postal Services Regulations 1987 to adjust the threshold for the Australian Postal Commission's need to obtain ministerial approval for contracts exceeding a specified amount. This amendment applies to the Australian Postal Commission, a statutory entity responsible for the regulation and administration of postal services within Australia. The rule is a direct modification of regulation 57, which previously set the higher amount for contract approval at $2,000,000, aligning it with the threshold for referral of public works to the Parliamentary Standing Committee on Public Works. By increasing this amount to $6,000,000, the regulation adjusts the financial scope within which the Australian Postal Commission can enter into contracts without requiring ministerial approval. Additionally, the rule rectifies a duplication error in the regulation numbering system by renumbering the second occurrence of regulation 57 to regulation 56A, thereby eliminating potential confusion. This adjustment extends to the entire Commonwealth of Australia, as the Postal Services Act 1975 and its associated regulations are of national application.
Key Provisions
The statutory rule issued under the authority of the Minister for Transport and Communications amends the Postal Services Regulations to increase the prescribed amount for contracts that require ministerial approval. Specifically, section 82 of the Postal Services Act 1975 mandates that the Australian Postal Commission must obtain ministerial approval before entering into a contract exceeding the stipulated amount. Regulation 57 previously set this amount at $2,000,000, but this has been increased to $6,000,000 to align with the threshold for referral of public works to the Parliamentary Standing Committee on Public Works. The statutory rule repeals the existing regulation 57 and introduces a new regulation 56A to reflect this change, ensuring clarity and consistency in regulatory requirements.
The obligations imposed by this statutory rule on the Australian Postal Commission are significant. Under the amended regulation 56A, any contract exceeding $6,000,000 must now be approved by the Minister. This requirement is crucial to ensure that large-scale financial commitments are properly vetted and authorised, aligning with public sector governance standards. The Commission must ensure that any contract reaching or exceeding this threshold is subject to the necessary scrutiny and ministerial approval before proceeding.
Failure to comply with the requirements of this statutory rule could result in significant consequences. While the legislation does not explicitly state penalties for non-compliance, breaches of the Act's provisions could potentially lead to invalidating the contract or even legal action against the responsible parties. The importance of adhering to the ministerial approval process is underscored by the potential for financial and reputational damage if significant contracts are entered into without proper authorisation. The statutory rule aims to prevent such scenarios by clearly defining the threshold and the need for ministerial oversight.
The statutory rule also rectifies an error in the existing regulations by eliminating the duplication in regulation 57. This amendment is intended to avoid confusion and ensure that the regulatory framework operates smoothly. The renumbering of the second regulation 57 to another number helps maintain a logical and orderly structure in the regulations, facilitating easier interpretation and compliance by the Australian Postal Commission and other stakeholders. This correction is a minor but necessary step to uphold the integrity of the regulatory framework.