STATUTORY RULES.
1904. No. 33.
REGULATIONS TO PROVIDE FOR THE ERECTION OF PUBLIC TELEGRAPH OR TELEPHONE LINES UNDER GUARANTEE.
1. Any person may apply in writing to the Postmaster-General for the construction of a telegraph or telephone line under these Regulations.
2. Each application will be dealt with on its merits, but no application will be granted unless the Postmaster-General is satisfied that the line applied for is required in the public interest.
3. No application shall be granted for the construction of a line not likely to yield a minimum revenue within a period of eight years after the construction of the line, unless the Postmaster-General is satisfied that there are special circumstances rendering its construction desirable.
4. If the line is not likely to yield, annually, an amount sufficient to provide—
(a) For the cost of operating the line ; and
(b) Ten per centum on the cost of constructing the line and supplying the instruments (to cover maintenance, renewals, &c.)
(which amount is referred to in these Regulations as a minimum revenue), the applicants shall, for the purpose of guaranteeing the receipt of that amount, comply with the following conditions, namely :—
(a) The applicants shall deposit with the Postmaster-General a sum of money sufficient to pay the estimated cost of operating the line for two years, together with a sum equal to not less than Ten pounds per centum per annum for two years on the estimated cost of constructing the line and supplying instruments.
(b) The applicants shall enter into a joint and several bond, in a sum to be fixed by the Postmaster-General, conditioned to make good any sum by which the receipts from the line in any year during a period of seven years after the completion of the line fall short of a minimum revenue.
5. The sum deposited with the Postmaster-General shall be placed to his credit in a Savings Bank, and such sum and any interest thereon shall be available for the purpose of making good in any year any amount by which the yearly receipts from the line fall short of a minimum revenue, and the sums required for that purpose may be withdrawn from the bank and paid to the Consolidated Revenue Fund at such times as the Postmaster-General thinks proper.
6. The bond shall be in a form approved by the Postmaster-General, and payments under it shall be made within one month after demand by the Postmaster-General; but no such demand shall be made so long as the sum deposited, or any balance thereof, is sufficient to make good the amount required.
C.6251.— Price 3d.
7. After the expiration of seven years from the completion of the line, the bond may be renewed or a new bond executed for such further period as the Postmaster-General directs, and if the bond id not so renewed or a new bond executed, the Postmaster-General may, unless he is satisfied that the line will yield a minimum revenue, remove it and the instruments.
8. Any balance of the sum deposited or interest thereon may after the expiration of seven years from the completion of the line, be returned to the applicants.
9. The line and instruments shall remain the property of the Postmaster-General.
10. These Regulations shall take effect forthwith.
By Authority: Robt. S. Brain, Government Printer, Melbourne
Overview
The Regulations to Provide for the Erection of Public Telegraph or Telephone Lines Under Guarantee, 1904, were enacted to address the need for the construction of essential communication infrastructure in Australia while ensuring financial sustainability. These regulations were introduced by the Commonwealth Parliament to facilitate the construction of telegraph and telephone lines in the public interest, provided that certain conditions were met. The policy objective was to guarantee a minimum revenue for the lines to ensure their financial viability, thereby encouraging the expansion of communication networks across the country. Applications for line construction could be submitted by any individual to the Postmaster-General, and these would be assessed on a case-by-case basis. The regulations stipulate that construction would only be approved if the line was deemed necessary for the public interest and if it was likely to achieve a minimum revenue within eight years, barring special circumstances. Furthermore, applicants were required to deposit a sum of money and enter into a bond to cover any shortfall in revenue for the first seven years, after which the bond could be renewed or new arrangements made.
Scope and Application
The Regulations to Provide for the Erection of Public Telegraph or Telephone Lines Under Guarantee apply to any person wishing to apply in writing to the Postmaster-General for the construction of a telegraph or telephone line. The applications are subject to approval based on whether the Postmaster-General deems the line necessary in the public interest and if it is expected to yield a minimum revenue within eight years, barring special circumstances. Additionally, applicants must ensure that the line can generate enough revenue annually to cover operational costs and 10% of the construction and instrument costs. To secure this revenue guarantee, applicants must deposit a sum with the Postmaster-General and enter into a joint and several bond, conditions of which can be extended beyond the initial seven-year period if required. The line and instruments remain the property of the Postmaster-General, and any unused deposits or interest can be returned after the initial period. These Regulations apply nationally, as indicated by their Commonwealth reach.
Key Provisions
The Regulations, as detailed in Statutory Rules 1904 No. 33, establish the framework for the erection of public telegraph or telephone lines under a guarantee. Section 1 allows any person to apply in writing to the Postmaster-General for the construction of a telegraph or telephone line. Section 2 mandates that each application is assessed based on its merits, but it will only be approved if the Postmaster-General determines that the line is necessary in the public interest. Section 3 specifies that applications will not be granted unless the line is likely to yield a minimum revenue within eight years of construction, unless special circumstances justify its construction. Section 4 further requires that the line must generate a minimum annual revenue sufficient to cover operating costs and a percentage on construction and instrument costs. If these conditions are not met, applicants must comply with certain financial guarantees as outlined in Section 4(a) and (b).
The obligations imposed on the parties by these Regulations are significant. Under Section 4(a), applicants must deposit a sum of money with the Postmaster-General to cover the estimated operating costs for two years, plus an additional sum for construction and instrument costs. Section 4(b) requires applicants to enter into a joint and several bond, with a sum determined by the Postmaster-General, to cover any shortfall in revenue over a seven-year period. Section 5 stipulates that the deposited sum, along with any accrued interest, is to be held in a Savings Bank and can be withdrawn to cover revenue shortfalls as deemed appropriate by the Postmaster-General. Section 6 mandates that the bond must be in a form approved by the Postmaster-General and requires payments to be made within one month of a demand, unless the deposited sum is sufficient to cover the shortfall.
The consequences for breach of these Regulations are outlined in Section 7, which states that after seven years, the bond may be renewed or a new bond executed at the direction of the Postmaster-General. If the bond is not renewed, the Postmaster-General may remove the line and instruments unless it is deemed to yield a minimum revenue. Section 8 allows for the return of any remaining deposited sum or interest after seven years if no revenue shortfall occurs. Finally, Section 9 confirms that the line and instruments remain the property of the Postmaster-General. These Regulations take effect immediately upon issuance, as stated in Section 10.