Qantas Airways Limited (Loan Guarantee) Act 1980
No. 29 of 1980
An Act relating to the provision of certain equipment for Qantas Airways Limited
Contents
1 Short title
2 Commencement
3 Provision of credit deemed to be a borrowing
4 Guarantee of certain loans
5 Conditions of guarantees
6 Delegation
Qantas Airways Limited (Loan Guarantee) Act 1980
No. 29 of 1980
An Act relating to the provision of certain equipment for Qantas Airways Limited
[Assented to 8 May 1980]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1980.
2 Commencement
This Act shall come into operation on the day on which it receives the Royal Assent.
3 Provision of credit deemed to be a borrowing
For the purposes of this Act, the provision of credit shall be deemed to be a borrowing to the extent of the amount of that credit.
4 Guarantee of certain loans
(1) Where:
(a) Qantas Airways Limited has entered into an agreement to borrow moneys; and
(b) the Treasurer is satisfied that the moneys are for use in connection with the purchase by Qantas Airways Limited of 4 Boeing 747 aircraft and related spare parts and equipment;
the Treasurer may, on behalf of the Commonwealth, and subject to the conditions required by this Act, guarantee:
(c) the repayment of moneys borrowed under the agreement; and
(d) the payment of interest on moneys so borrowed.
(2) A guarantee or guarantees shall not be given under subsection (1) in respect of moneys borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $230,000,000 in the currency of the United States of America.
(3) For the purposes of subsection (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first-mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.
5 Conditions of guarantees
For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:
(a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;
(b) proper security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over the aircraft, spare parts and equipment to which the borrowing relates;
(c) undertakings to the satisfaction of the Treasurer are given that the aircraft, spare parts and equipment over which security is to be taken in accordance with paragraph (b):
(i) will be insured, and kept insured, against all risks that it is customary to insure, and to their full insurable value; and
(ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and
(d) such other conditions as the Treasurer thinks necessary are fulfilled.
6 Delegation
(1) The Treasurer may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to an officer of the Department of the Treasury any of his powers or functions under this Act, other than this power of delegation.
(2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed by the Treasurer.
(3) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.
(4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Treasurer.
Overview
The Qantas Airways Limited (Loan Guarantee) Act 1980 was enacted by the Parliament of Australia to facilitate the acquisition of essential equipment for Qantas Airways Limited, specifically four Boeing 747 aircraft and related spare parts and equipment. This Act was introduced to address the need for financial assistance to ensure that Qantas Airways Limited could expand its fleet, thereby maintaining its status as a major player in the aviation industry. The primary objective of this legislation was to provide a guarantee for loans up to a specified amount, thereby securing the financial interests of the Commonwealth while supporting the operational needs of Qantas Airways Limited. The Act outlines the conditions under which such guarantees can be provided, ensuring that the financial assistance is both effective and secure.
Scope and Application
The Qantas Airways Limited (Loan Guarantee) Act 1980 applies specifically to Qantas Airways Limited, an entity within the aviation industry, and pertains to the provision of certain loans for the purchase of 4 Boeing 747 aircraft and related spare parts and equipment. The Act allows for the Treasurer, on behalf of the Commonwealth, to guarantee the repayment of moneys borrowed by Qantas Airways Limited under specific conditions. This Act has a Commonwealth jurisdiction and is enacted to protect the financial interests of the Commonwealth by setting certain conditions for the guarantee of loans, such as reasonable borrowing terms and the provision of proper security over the aircraft, spare parts and equipment. The Act includes an exclusion for loans exceeding $230,000,000 in the currency of the United States of America. The Treasurer has the authority to delegate certain powers and functions to an officer of the Department of the Treasury, as provided by the instrument of delegation.
Key Provisions
The Qantas Airways Limited (Loan Guarantee) Act 1980 provides a framework for the Commonwealth government to guarantee loans taken by Qantas Airways Limited for the purchase of four Boeing 747 aircraft and related spare parts and equipment. Section 4 of the Act allows the Treasurer to guarantee the repayment of these loans and the payment of interest, provided certain conditions are met. Notably, the aggregate value of the loans guaranteed cannot exceed $230,000,000 in US currency, as stipulated in section 4(2). This guarantee is contingent on the Treasurer being satisfied with the terms of the loan and that proper security, insurance, and other undertakings are in place to protect the Commonwealth's financial interests.
Under section 5 of the Act, the Treasurer can only provide a guarantee if the borrowing terms are deemed reasonable, appropriate security over the aircraft and equipment is provided, and specific insurance and non-encumbrance undertakings are fulfilled. These conditions ensure that the Commonwealth's investment is safeguarded and that the assets acquired are properly insured and managed. Additionally, the Treasurer may delegate their powers and functions to an officer of the Department of the Treasury, as outlined in section 6, with such delegations being subject to the Treasurer's directions.
Failure to comply with the conditions set out in the Act may result in the Commonwealth not honouring the guarantee, potentially leaving Qantas Airways Limited to manage the financial burden of the loan repayments and interest. There are no explicit criminal or civil penalties stated in the Act for breach of its provisions, but the financial implications for Qantas Airways Limited could be significant if the guarantee is not provided as per the Act's requirements. The Act thus serves to protect the financial interests of the Commonwealth while facilitating the acquisition of critical assets by Qantas Airways Limited.