Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307
EXPLANATORY STATEMENT
Statutory Rules 1998 No. 307
(Issued by the authority of the Minister for Finance and Administration)
Remuneration Tribunal Act 1973
Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment)
Section 13 of the Remuneration Tribunal Act 1973 (the Act) provides that the Governor-General make regulations for the purposes of this Act.
Subsection 5(2) 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 proposed regulations amend Schedule 1 of the Regulations to include 'Chief Executive Officer, Australian Rail Track Corporation' and 'Chief Executive Officer, Sydney Airports Corporation Ltd' for the purpose of determining the remuneration package of these offices.
The Australian Rail Track Corporation (ARTC) is a fully Commonwealth owned company, established under the Corporations Law to manage access and infrastructure development on the interstate rail network. The ARTC will operate on a fully commercial basis. It is appropriate therefore that the Board of the ARTC be ultimately responsible for determining the remuneration package for the Chief Executive Officer of the ARTC. In order to achieve this outcome, it is necessary to prescribe the position of Chief Executive Officer, ARTC as a principal executive office, so that the remuneration package of that office can be determined by the ARTC Board, in consultation with the Tribunal.
The Sydney Airports Corporation Ltd was recently established as an incorporated company. The assets associated with the Sydney Basin airports will be transferred from the Federal Airports Corporation to the company, The Board of the Sydney Airports Corporation Ltd will be responsible for managing Australia's major aviation gateway in the lead up to the 2000 Olympic Games, during a period of increased competition and capacity constraints. It is appropriate therefore that that the Board be ultimately responsible for determining the remuneration package for the Chief Executive Officer of the Sydney Airports Corporation Ltd. In order to achieve this outcome, it is necessary to prescribe the position of Chief Executive Officer, Sydney Airports Corporation Ltd as a principal executive office, so that the remuneration package of that office can be determined by the Board, in consultation with the Tribunal.
It is also proposed that Item 1 of Schedule 1 of the Regulations be amended to include the office of Managing Director Australia Post, to correct an earlier omission to the Regulations. The office of Managing Director, Medibank Limited will also be amended to read Managing Director, Medibank Private Limited to reflect the name change of the company from 1 March 1998. The amendments will also provide for the renumbering of items post Item 10.
The regulation will commence on the date of gazettal.
Overview
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307, issued under the authority of the Minister for Finance and Administration, amends the Remuneration Tribunal (Miscellaneous Provisions) Regulations to address the need for updated regulatory frameworks to accommodate the evolving roles and responsibilities of newly established Commonwealth-owned entities. Enacted under the Remuneration Tribunal Act 1973, these amendments aim to align the regulatory provisions with the establishment of the Australian Rail Track Corporation and Sydney Airports Corporation Ltd, ensuring that the remuneration packages for their respective Chief Executive Officers are appropriately determined. By declaring these positions as principal executive offices, the amendments empower the boards of these corporations to set the remuneration, in consultation with the Remuneration Tribunal, thereby facilitating effective governance and management of these critical infrastructure entities.
Scope and Application
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307 pertains to the amendment of the Remuneration Tribunal (Miscellaneous Provisions) Regulations, which are made under the Remuneration Tribunal Act 1973. These regulations specifically address the declaration of principal executive offices and the determination of their remuneration packages. The amendments involve the inclusion of the Chief Executive Officer positions for the Australian Rail Track Corporation and Sydney Airports Corporation Ltd as principal executive offices, thereby allowing the respective boards of these corporations to determine the remuneration packages for these roles, in consultation with the Remuneration Tribunal. Additionally, the amendments correct an omission concerning the Managing Director of Australia Post and update the name of the Managing Director of Medibank Limited to reflect its recent name change to Medibank Private Limited. These changes aim to ensure the appropriate governance and remuneration structures for key executive positions within these government business enterprises.
Key Provisions
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307 amends Schedule 1 of the Remuneration Tribunal (Miscellaneous Provisions) Regulations under the Remuneration Tribunal Act 1973. Section 13 of the Act empowers the Governor-General to make regulations for the purposes of the Act, and subsection 5(2) specifies one of the Tribunal's functions as providing advice to government business enterprises about the terms and conditions, including remuneration and allowances, of principal executive offices. The amendment to Schedule 1 declares the positions of Chief Executive Officer of the Australian Rail Track Corporation and Chief Executive Officer of the Sydney Airports Corporation Ltd as principal executive offices. This is done to ensure that the remuneration packages for these positions are determined by the respective boards in consultation with the Tribunal, aligning with the commercial operations and strategic importance of these entities.
The amendment also includes the Managing Director position of Australia Post in Schedule 1 to correct an earlier omission and updates the Managing Director position of Medibank Limited to reflect the company's name change to Medibank Private Limited. Additionally, the regulation includes renumbering of items in Schedule 1 post Item 10 to maintain consistency and clarity within the regulatory framework. The intent behind these amendments is to provide clarity and ensure the appropriate governance structures are in place for these key executive roles, thereby facilitating effective remuneration determination processes.
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307 imposes obligations on the Remuneration Tribunal to consult with the boards of the Australian Rail Track Corporation and Sydney Airports Corporation Ltd when determining the remuneration packages for the Chief Executive Officers of these entities. Additionally, the amendment requires these boards to be ultimately responsible for setting the remuneration for their respective Chief Executive Officers, in line with the strategic goals and commercial operations of their companies. The Tribunal is also tasked with ensuring that the remuneration packages are fair, reasonable, and competitive within the relevant industries.
Furthermore, the amendment corrects an earlier omission by including the Managing Director position of Australia Post in Schedule 1, thereby extending the Tribunal's advisory role to this position. The update to Medibank Limited's Managing Director position to reflect its name change to Medibank Private Limited ensures that the regulatory framework accurately represents current organisational structures. The amendment also mandates the renumbering of items in Schedule 1 post Item 10 to streamline the document and avoid confusion.
The Remuneration Tribunal (Miscellaneous Provisions) Regulations (Amendment) 1998 No. 307 does not explicitly detail offences, penalties, or consequences for non-compliance. However, any failure by the boards of the Australian Rail Track Corporation and Sydney Airports Corporation Ltd to consult with the Tribunal or to adhere to the remuneration packages determined in consultation with the Tribunal could potentially lead to disputes or legal challenges regarding the appropriateness and fairness of the remuneration. The Act itself does not specify penalties for non-compliance with the regulations; however, any breaches could be subject to judicial review or other legal remedies. The overarching principle is that remuneration packages must be set in accordance with the advice provided by the Tribunal, and any deviation from this could result in legal or regulatory scrutiny.