Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1997 No. 291
EXPLANATORY STATEMENT
Statutory Rules 1997 No. 291
(Issued-by authority of the Minister for Workplace Relations and Small Business)
Remuneration Tribunal Act 19 73
Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment)
Section 13 of the Remuneration Tribunal Act 1973 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Subsection 5(2) of the Act provides that one of the functions of the Remuneration Tribunal is to provide advice to government business enterprises in relation to terms and conditions (including remuneration and allowances) on which principal executive offices are held.
Paragraph 3(4)(ra) of the Act enables an office to be declared by the regulations to be a principal executive office. These offices are declared by the Remuneration Tribunal (Miscellaneous Provisions) Regulations (the Regulations) in Schedule 1 to the Regulations.
The regulations amend Schedule 1 of the Regulations to include 'Managing Director, Housing Loans Insurance Corporation Limited', 'Chef Executive Officer, Client Service Delivery Agency' and 'Chief Executive Officer, Health Services Australia Limited', for the purpose of determining the remuneration package of these offices.
The Housing Loans Insurance Corporation (HLIC) has been restructured, and part of this process involves the transfer of the HLIC to a new government-owned company (HLIC Ltd) established under the Corporations Law. It is appropriate therefore that the Board be ultimately responsible for determining the remuneration package for the Managing Director of HLIC Ltd. In order to achieve this outcome, the position of Managing Director, HLIC Ltd has been prescribed as a principal executive office so that the remuneration package of that office can be determined by the Board, in consultation with the Tribunal.
The Commonwealth Services Delivery Agency (CSDA) has been established to provide a range of services which are currently delivered by different departments. The CSDA will be wholly funded through the provision of funds made available by purchaser departments under the terms of service level agreements. It is appropriate therefore that the Board be ultimately responsible for determining the remuneration package for the Chief Executive Officer of the CSDA. In order to achieve this outcome, the position of Chief Executive Officer of the CSDA has been prescribed as a principal executive office so that the remuneration package of that office can be determined by the Board in consultation with the Tribunal.
Health Services Australia Limited (HSA) has been established as an incorporated company on 1 June 1997 to provide medical advisory and health assessment services. HSA will be totally funded through funds made available from purchaser departments and the wider market place. It is appropriate therefore that the Board be ultimately responsible for determining the remuneration package for the Chief Executive Officer. In order to achieve this outcome the position of Chief Executive Officer of HSA has been prescribed as a principal executive office, so that the remuneration package can be determined by the Board in consultation with the Tribunal.
Schedule 1 is amended to allow for renumbering of the items. The amendments also revise Item 4 of the Schedule. It previously referred to the position of Chief Executive Officer, Civil Aviation Authority. This position no longer exists. It has been replaced by the position of Director of Aviation Safety, Civil Aviation Safety Authority.
The Regulations are taken to have commenced on 1 July 1997.
The retrospective operation of the Regulations does not breach section 48 of the Acts Interpretation Act 1901 as it does not affect the tights of a person to that person's disadvantage or impose a liability on a person (other than the Commonwealth) in respect
Overview
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1997 No. 291, issued by authority of the Minister for Workplace Relations and Small Business, amends the Remuneration Tribunal (Miscellaneous Provisions) Regulations to address the need for the determination of remuneration packages for specific principal executive offices within newly restructured government entities. Enacted under the Remuneration Tribunal Act 1973, these regulations were introduced to ensure that the appropriate governing bodies of the new entities have the authority to determine the remuneration for their chief executives. The policy objective is to align the remuneration process with the structural changes in government business enterprises, ensuring that the remuneration packages are set by the relevant boards in consultation with the Remuneration Tribunal. The regulations specifically amend the list of principal executive offices to include positions such as the Managing Director of Housing Loans Insurance Corporation Limited, the Chief Executive Officer of the Commonwealth Services Delivery Agency, and the Chief Executive Officer of Health Services Australia Limited, while also removing references to positions that no longer exist.
Scope and Application
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1997 No. 291 applies to the Remuneration Tribunal Act 1973, specifically targeting the functions and scope of the Remuneration Tribunal in advising government business enterprises on terms and conditions of employment, including remuneration and allowances. The amendments to the Regulations are concerned with the declaration of certain offices as principal executive offices, thereby allowing the respective boards of these entities to determine the remuneration packages in consultation with the Tribunal. The specific offices added to the Regulations include the Managing Director of Housing Loans Insurance Corporation Limited, the Chief Executive Officer of the Client Service Delivery Agency, and the Chief Executive Officer of Health Services Australia Limited. These changes are made in response to structural adjustments and the establishment of new government-owned companies and agencies, ensuring that the appropriate governing bodies are ultimately responsible for determining the remuneration packages for the specified roles. The Regulations have a national reach as they are made under Commonwealth authority and are applicable across Australia. The Regulations do not specify any exclusions or exemptions, and they are effective as of 1 July 1997, with a retrospective operation that does not contravene the Acts Interpretation Act 1901.
Key Provisions
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1997 No. 291, made under the Remuneration Tribunal Act 1973, primarily amends Schedule 1 to include new positions as principal executive offices. Specifically, the amendment adds the positions of 'Managing Director, Housing Loans Insurance Corporation Limited', 'Chief Executive Officer, Client Service Delivery Agency', and 'Chief Executive Officer, Health Services Australia Limited' to Schedule 1 (subsection 5(2)). This amendment allows these offices to be subject to the Remuneration Tribunal's advice on terms and conditions of employment, including remuneration and allowances. These changes reflect organisational restructurings and the creation of new government entities, ensuring that remuneration packages for these key positions are appropriately determined.
The amended Regulations impose several obligations on the relevant parties. Firstly, it mandates that the Boards of the newly established entities, namely HLIC Ltd, CSDA, and HSA, must consult with the Remuneration Tribunal when determining the remuneration packages for the Managing Director and Chief Executive Officers, respectively. This requirement ensures that the remuneration is fair and aligned with the responsibilities and market standards for such positions. Furthermore, the Regulations require the Tribunal to provide the necessary advice and recommendations on these remuneration packages, aligning them with the duties and scope of the respective offices.
Failure to comply with the provisions of these Regulations may result in legal consequences. While the Regulations themselves do not explicitly outline specific penalties for non-compliance, breaches of the Remuneration Tribunal Act 1973 or related regulations may result in legal action. Such actions could include court-imposed penalties or directives to rectify non-compliant remuneration packages. The severity of the penalties would depend on the specific nature of the breach and the discretion of the court. It is essential for the involved parties to adhere to the guidelines to avoid potential legal repercussions.