Explanatory Statement – Instrument 2016/2
The Minister for Infrastructure and Regional Development approved the allocations for the new Roads to Recovery programme, to run from 1 July 2014 to 30 June 2019 on 12 September 2014. The list was amended by Instrument No. 2015/1 made on 24 March 2015, Instrument No. 2015/2 made on 2 April 2015, Instrument No. 2015/3 made on 12 August 2015 and Instrument No. 2016/1 made on 12 July 2016.
Subsection 88(1) of the National Land Transport Act 2014 (the NLT Act), allows the Minister to vary the Roads to Recovery List where a funding recipient specified in the Roads to Recovery List ceases to exist before receiving its full allocation, and to redirect some or all of the remaining funds to another funding recipient or to one or more funding recipients.
On 12 May 2016, the New South Wales Government created 19 new councils as part of its Stronger Councils / Stronger Communities initiative, resulting in the abolition and merger of 41 councils including the Parramatta City Council being renamed as the City of Parramatta Council.
As a result of the initiative, the City of Parramatta Council transferred 10% of its road network to the newly created Cumberland Council, which also absorbed the former Auburn and Holroyd City councils.
This Instrument amends the Roads to Recovery List by adding in the Cumberland Council and its allocation, along with the reduction in funding to the City of Parramatta Council which was agreed between the two councils.
The Instrument commences on 30 September 2016 to enable payments claimed by the newly created council to commence after that date.
Overview
The Roads to Recovery List, an instrument of the National Land Transport Act 2014, was introduced to ensure the continued funding and maintenance of roads under the Roads to Recovery programme. Enacted by the Minister for Infrastructure and Regional Development, the list was designed to address funding gaps arising from the cessation of existing funding recipients. The objective of the Roads to Recovery programme is to support infrastructure projects that enhance connectivity and regional development across Australia. On 12 May 2016, the New South Wales Government restructured local councils, leading to the creation of 19 new councils and the abolition of 41 existing ones, including the Parramatta City Council, which was renamed as the City of Parramatta Council. Consequently, 10% of the City of Parramatta Council's road network was transferred to the newly formed Cumberland Council, which also absorbed the former Auburn and Holroyd City councils. This necessitated amendments to the Roads to Recovery List to reflect the new council allocations and the reduced funding for the City of Parramatta Council. The updated Roads to Recovery List was approved on 30 September 2016, enabling the newly created council to commence payments from that date.
Scope and Application
The National Land Transport Act 2014 (NLT Act) authorises the Minister for Infrastructure and Regional Development to manage funding allocations for the Roads to Recovery programme, which is aimed at supporting local government infrastructure projects. This specific legislative instrument, F2016L01388, adjusts the Roads to Recovery List to accommodate changes in local government boundaries, specifically in New South Wales, following the Stronger Councils / Stronger Communities initiative. The Act applies to local government entities involved in the Roads to Recovery programme, including those that have undergone structural changes due to mergers or amalgamations. The geographic reach of this Act is limited to the Commonwealth level, as it pertains to the administration and distribution of federal funds through the Roads to Recovery programme. This particular instrument ensures that funding is redirected appropriately to new or existing local government entities in response to structural changes, maintaining the integrity and purpose of the Roads to Recovery programme. It commences on 30 September 2016, aligning with the administrative needs of the newly formed Cumberland Council and the adjustments made to the City of Parramatta Council's funding allocation.
Key Provisions
The main operative sections of this legislation are centred around the amendments to the Roads to Recovery List under the National Land Transport Act 2014. Subsection 88(1) of the NLT Act allows the Minister for Infrastructure and Regional Development to modify the list in cases where a funding recipient ceases to exist before receiving their full allocation, enabling the redirection of funds to another or multiple funding recipients. This specific Instrument (F2016L01388) amends the Roads to Recovery List in light of the New South Wales Government's initiative to create 19 new councils, including the Cumberland Council, by absorbing and merging several existing councils.
This Act imposes several obligations on the entities it governs. Firstly, it requires the Minister for Infrastructure and Regional Development to adjust the funding allocations when a council undergoes changes such as mergers or abolitions. Secondly, it mandates the affected councils to coordinate and agree on the transfer of funds and responsibilities, such as the City of Parramatta Council's transfer of 10% of its road network to the Cumberland Council. Additionally, the Act requires the newly formed councils to ensure that they comply with the updated funding allocations and any associated terms and conditions.
There are no explicit offences, penalties, or civil/criminal consequences mentioned within this Instrument. However, it is implicit that failure to comply with the amended Roads to Recovery List and the reallocation of funds could potentially lead to legal consequences under the broader provisions of the NLT Act. These could include financial penalties or legal action taken by the Minister or other relevant authorities to enforce compliance with the Act's requirements.