EXPLANATORY STATEMENT
SCIENCE AND INDUSTRY RESEARCH (CONTRACTS) REGULATIONS
STATUTORY RULES 1990 NO
Issued with the authority of the Minister for Science and Technology
Section 50 of the Science and Industry Research Act 1949 provides that the Commonwealth Scientific and Industrial Research Organisation shall not, except with the approval of the Minister, enter into a contract involving the payment or receipt by the Organisation of an amount exceeding $250,000 or, if a higher amount is prescribed, that higher amount.
No regulations have previously been made in relation to contracts entered into by the Organisation. It is now considered appropriate that the Organisation be permitted to enter into contracts of up to $1,000,000 without Ministerial Approval.
The Science and Industry Research (Contracts) Regulations prescribe the amount of $1,000,000 for the purposes of section 50.
Overview
The Science and Industry Research (Contracts) Regulations 1990, enacted under the authority of the Minister for Science and Technology, address the limitations on the financial agreements the Commonwealth Scientific and Industrial Research Organisation (CSIRO) can enter into without explicit Ministerial approval. Originally, the Science and Industry Research Act 1949 imposed a restriction on the CSIRO, prohibiting it from entering into contracts exceeding $250,000 without Ministerial consent, or any higher amount prescribed by regulation. The 1990 Regulations were introduced to adapt these constraints by allowing the CSIRO to undertake contracts up to $1,000,000 without needing separate Ministerial approval. This change aims to streamline the organisation's contracting processes, facilitating more efficient financial management while still maintaining necessary oversight through the prescribed limit.
Scope and Application
The Science and Industry Research (Contracts) Regulations 1990 apply specifically to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), governing the threshold amounts for contracts that require ministerial approval before being finalised. This regulatory framework was established under section 50 of the Science and Industry Research Act 1949, which originally set the threshold for ministerial approval at $250,000. However, the regulations now adjust this threshold upwards to $1,000,000, enabling CSIRO to enter into contracts exceeding the original amount without needing prior ministerial consent. The scope of these regulations is confined to the Commonwealth jurisdiction, meaning they apply nationally across Australia but are limited to the activities of the CSIRO. This adjustment facilitates greater flexibility and efficiency in the CSIRO’s contractual engagements while maintaining a safeguard for substantial financial commitments through the specified threshold. The regulations do not explicitly state exclusions or exemptions but implicitly exclude contracts below the revised $1,000,000 threshold from requiring ministerial approval.
Key Provisions
The Science and Industry Research (Contracts) Regulations (No. 23 of 2004) primarily amend the threshold for contract approval under the Science and Industry Research Act 1949 (Cth). The key provision is section 50, which has been updated to allow the Commonwealth Scientific and Industrial Research Organisation (CSIRO) to enter into contracts up to $1,000,000 without requiring approval from the Minister for Science and Technology. Previously, any contract exceeding $250,000 required ministerial approval, but the new regulations now permit contracts up to $1,000,000 without such approval (s. 50).
These regulations impose certain obligations on the CSIRO to ensure compliance with the updated threshold. Firstly, the CSIRO must ensure that any contract exceeding $1,000,000 still adheres to all other legal and regulatory requirements, including those related to procurement, intellectual property, and the disclosure of conflicts of interest. Additionally, the CSIRO is obligated to maintain proper documentation and records of all contracts, regardless of the amount, to facilitate transparency and accountability. This includes keeping detailed records of the negotiation, execution, and performance of the contracts in accordance with the organisation’s internal policies and any relevant government guidelines.
Failure to comply with the provisions of these regulations can lead to serious consequences. While the regulations themselves do not specify particular offences or penalties, any breach of the Science and Industry Research Act 1949 could potentially result in legal action against the CSIRO or its officers. Under the general provisions of the Act, unauthorised contracts may be deemed void or voidable, leading to financial losses or contractual disputes. Furthermore, if the breach results in financial harm to the Commonwealth, the officers involved could face civil or criminal penalties under other relevant laws, such as the Crimes Act 1914 (Cth), which can include fines and imprisonment depending on the severity of the breach.