Postal, Telegraphic and Telephone Regulations (Amendment)

Overview

The Statutory Rules of 1905, No. 44, issued under the Post and Telegraph Act 1901, establish regulations for the erection of public telegraph or telephone lines under guarantee. These regulations were introduced to address the need for infrastructure development in remote and underserved areas, ensuring that the construction of such lines is both feasible and beneficial to the public. Enacted by the Governor-General in and over the Commonwealth of Australia, acting on the advice of the Federal Executive Council, these regulations aim to facilitate the construction of necessary communication lines while ensuring they are financially sustainable and yield sufficient revenue to cover operational and maintenance costs. The policy objective is to balance the public interest with the financial viability of such projects, ensuring that they contribute positively to the national communication network.

Scope and Application

The Post and Telegraph Act 1901, as supplemented by the statutory rules issued under it, governs the application process for the construction of public telegraph or telephone lines within Australia. Any person can apply in writing to the Postmaster-General for the construction of such a line, provided that the application is deemed necessary in the public interest and meets certain financial criteria. Specifically, the Postmaster-General must be satisfied that the proposed line is likely to yield a minimum revenue within eight years of its construction, defined as an amount sufficient to cover both operational costs and a ten percent return on the construction and instrument costs. If the estimated revenue falls short of this minimum, applicants must deposit a sum with the Postmaster-General to cover the shortfall and enter into a bond guaranteeing future payments if actual revenues are insufficient. The deposited sum and its interest are held in a savings bank and can be used to cover shortfalls, with any surplus returned to applicants after seven years. The line and its instruments remain the property of the Postmaster-General, and the bond may be renewed or replaced after the initial seven-year period.

Key Provisions

The key operative sections of the regulation pertain to the application process for the construction of a public telegraph or telephone line under guarantee (Regulation 1). An applicant can submit a written application to the Postmaster-General (Reg. 1). However, the Postmaster-General may only approve the application if they are satisfied that the line is required in the public interest (Reg. 2). Additionally, the Postmaster-General may only approve the application if the line is likely to yield a minimum revenue within eight years, unless there are special circumstances that make the construction desirable (Reg. 3). If the line is not likely to yield a minimum revenue, the applicants must deposit a sum of money with the Postmaster-General and enter into a joint and several bond to guarantee the receipt of that amount (Reg. 4). The applicants must also comply with specific conditions regarding the deposit and bond (Reg. 5 to 8). The Act imposes several obligations and requirements on the applicants and the Postmaster-General. The applicants must submit a written application and provide information to satisfy the Postmaster-General that the line is required in the public interest (Reg. 1 and 2). The applicants must also comply with the conditions regarding the deposit and bond if the line is not likely to yield a minimum revenue (Reg. 4 to 8). The Postmaster-General has the discretion to approve or reject applications based on the merits of the application and the likelihood of the line yielding a minimum revenue (Reg. 2 and 3). The Postmaster-General also has the authority to direct the renewal or execution of a new bond after seven years (Reg. 7) and to remove the line and instruments if the bond is not renewed or a new bond is not executed (Reg. 8). The Act does not explicitly state any offences, penalties, or civil/criminal consequences for breach. However, the failure to comply with the conditions regarding the deposit and bond may result in the Postmaster-General removing the line and instruments (Reg. 8). Additionally, if the line does not yield a minimum revenue, the applicants may be liable to make good any shortfall in revenue under the bond (Reg. 4(b)). The maximum penalty for breach of the Act is not specified.