Public Works Committee Regulations (Amendment) 1992 No. 134
EXPLANATORY STATEMENT
Statutory Rules 1992 No. 134
Issued by the Authority of the Minister for Administrative Services
Public Works Committee Act 1969
Public Works Committee Regulations (Amendment)
The Public Works Committee. Act 1969 (the Act) established the Public Works Committee to inquire into and report on public works referred to it by the Parliament. A public work is a work that is proposed to be carried out by or for the Commonwealth and for which moneys are appropriated by the Parliament.
Subsection 6A(3) of the Act provides that where the Governor-General is satisfied that an authority of the Commonwealth is engaging in trading or other activities, or is providing services, in competition with other bodies, the Governor-General may make regulations declaring that this Act does not apply to that authority.
ADI (Australian Defence Industries Ltd) was formed on 3 May 1989 and took over the operations of the former Office of Defence Production (a part of the Department of Defence). ADI was incorporated in the Australian Capital Territory on 1 July 1990 and enjoys the status of a public company. It is wholly owned by the Commonwealth of Australia and operates a number of businesses including ship repair, clothing manufacture, heavy engineering and ammunition manufacture in four states. Although the majority of its business is with the Department of Defence and the Australian Defence Force, ADI competes with private companies in the civil commercial arena.
ASTA (AeroSpace Technologies of Australia Pty Ltd) was incorporated in the Australian Capital Territory on 7 October 1987 and its holding company is wholly owned by the Commonwealth. ASTA operates in the aerospace, transport, guided weapons, defence-related and associated specialist engineering and material market.
ASTA's orientation is increasingly in civil commercial markets rather than defence related activity (around 60 per cent at present) and a start has been made on privatising ASTA.
As such the situation of these companies clearly meets the requirements of Subsection 6A(3) for exemption from the Act.
Overview
The Public Works Committee Regulations (Amendment) 1992 No. 134 was enacted to address the issue of entities that the Commonwealth had established to compete in the private sector, such as Australian Defence Industries Ltd (ADI) and AeroSpace Technologies of Australia Pty Ltd (ASTA). The Public Works Committee Act 1969 established the Public Works Committee to oversee and report on public works, which are projects funded by the Commonwealth and appropriated by Parliament. However, the 1992 Amendment Regulations were introduced to exempt certain entities from the scope of this Act, specifically those that engage in trading or services in competition with other bodies. The policy objective of these regulations is to allow entities like ADI and ASTA, which operate in both defence and commercial sectors, to function without the oversight and reporting requirements stipulated by the Public Works Committee Act 1969, thereby enabling them to compete more effectively in the private market.
Scope and Application
The Public Works Committee Regulations (Amendment) 1992 No. 134 pertains to the amendment of regulations under the Public Works Committee Act 1969. This legislation establishes the Public Works Committee, whose role is to investigate and report on public works referred to it by the Parliament, with a public work being defined as a project proposed to be executed by or for the Commonwealth, for which funds are allocated by Parliament. This Act applies to entities such as Australian Defence Industries Ltd (ADI) and AeroSpace Technologies of Australia Pty Ltd (ASTA), which engage in activities that compete with other bodies and are wholly owned by the Commonwealth. These companies operate in various sectors including ship repair, aerospace, and defence-related services across multiple states, predominantly dealing with the Department of Defence but also engaging in commercial activities that place them in competition with private sector companies. Under Subsection 6A(3) of the Act, if the Governor-General is satisfied that a Commonwealth authority is engaging in trading or service activities in competition with other bodies, regulations can be made to exempt such authorities from the purview of this Act. Consequently, ADI and ASTA, given their commercial competitive activities, meet the criteria for exemption as outlined in the legislation.
Key Provisions
The Public Works Committee Regulations (Amendment) 1992 No. 134, as per the explanatory statement, amend the Public Works Committee Regulations in relation to the Public Works Committee Act 1969. The primary objective of these regulations is to exempt certain Commonwealth authorities from the scope of the Act, as per Subsection 6A(3). This exemption applies to authorities engaged in trading, other activities, or service provision in competition with other entities. The Act originally established the Public Works Committee to oversee public works funded by the Parliament, which include works proposed to be carried out by or for the Commonwealth with appropriated funds. The amendments made by the regulations specifically target authorities that compete in the market, thus falling outside the purview of the Act.
The Public Works Committee Regulations (Amendment) 1992 No. 134 impose specific obligations on the authorities that are exempt from the Act. These authorities must ensure that their activities and services are not subject to the scrutiny and reporting requirements that the Act imposes on other public works. Moreover, these entities are required to operate in a manner consistent with the competitive environment in which they participate, ensuring they do not unfairly compete against private companies or other entities unless explicitly permitted by the regulations. Additionally, they must maintain records and documentation that demonstrate compliance with the exemption provisions, should they be subject to scrutiny by the relevant authorities.
Breaching the provisions of the Public Works Committee Act 1969 or the amended regulations can lead to various consequences. While the regulations themselves do not explicitly detail offences or penalties, the overarching Act does outline potential ramifications for non-compliance. Generally, the Act may provide for civil or criminal penalties, which could include fines or imprisonment, depending on the severity and nature of the breach. The exact penalties would be determined based on the specific circumstances and the relevant sections of the Act. It is essential for entities exempt under Subsection 6A(3) to ensure strict adherence to the conditions of their exemption to avoid any legal repercussions.