Snowy Hydro Corporatisation Act 1997 - Proclamation (06/06/2002)

Overview

The Snowy Hydro Corporatisation Act 1997 was enacted by the Parliament of Australia to facilitate the corporatisation of the Snowy Mountains Hydroelectric Scheme, thereby allowing for more efficient and effective management of the hydro-electric assets. The Act was introduced to address the need for a more commercially oriented approach to the operations of the Snowy Mountains Scheme, aiming to enhance its efficiency and responsiveness to market conditions. The proclamation, issued under the authority of the Act, designates 28 June 2002 as the commencement date for specific provisions of the Act, reflecting a deliberate step towards the restructuring of the Snowy Hydro entity. The policy objective of the Act, as indicated, is to transition the Snowy Hydro operations from a public authority to a corporation, thereby fostering better governance and financial management within the hydroelectric sector.

Scope and Application

The Snowy Hydro Corporatisation Act 1997 applies to the restructuring and corporatisation of Snowy Hydro Limited, an entity involved in electricity generation and water management in the Snowy Mountains region of Australia. The Act delineates the legal framework for transforming the Snowy Hydro Board into a corporation, with the objective of enhancing operational efficiency and commercial viability. It encompasses the governance, operational practices, and financial management of Snowy Hydro Limited, and mandates the corporation to adhere to specific statutory requirements. The Act extends its jurisdiction over the activities and transactions of the corporation, ensuring compliance with national regulatory standards. The geographic reach of the Snowy Hydro Corporatisation Act 1997 is confined to the Snowy Mountains region in New South Wales and the Australian Capital Territory, areas where Snowy Hydro Limited operates. The Act does not extend beyond these regions unless specified in subordinate legislation or regulations. While the Act primarily governs the corporatisation process, it may be supplemented by regulations that further detail operational procedures, financial reporting, and compliance mechanisms. The Act's application is precise, with no stated exclusions or exemptions, ensuring that Snowy Hydro Limited functions within a clearly defined legal and regulatory environment.

Key Provisions

The Snowy Hydro Corporatisation Act 1997, which has been brought into effect through legislative instrument C2004L06683, primarily establishes the framework for the corporatisation of Snowy Hydro Limited. Section 10, Part 4 (excluding section 25), sections 51, 52, 59, 60, 61 and 62, and subsection 63(2) of the Act, along with Part 2 of Schedule 2, came into force on 28 June 2002. This legislation mandates the transformation of the Snowy Hydro organisation into a corporation governed by the Corporations Act 2001, ensuring it operates under corporate law while still being subject to specific provisions within the Act. Under the Act, the obligations imposed on the parties include the establishment of a new corporate entity, Snowy Hydro Limited, which is to operate in accordance with the legislative requirements and corporate governance standards outlined in the Act. The Minister for Industry, Tourism and Resources, in this case Ian Macfarlane, has a key role in overseeing the corporatisation process and ensuring compliance with the Act. The Act also places responsibilities on the corporation itself, requiring it to adhere to specific operational guidelines, financial reporting standards, and regulatory requirements, which are detailed in various sections of the Act. The Act includes provisions for offences and penalties to enforce compliance and address breaches. For instance, it may include offences related to the mismanagement of the corporation, non-compliance with statutory obligations, or failure to adhere to the financial and operational standards set forth in the Act. The penalties for such breaches can include fines, imprisonment, or other civil remedies as appropriate. The exact nature and extent of the penalties are specified within the relevant sections of the Act and may vary depending on the severity and nature of the offence. The legislative instrument C2004L06683, which brings the Act into force, also mandates that the Governor-General, in this case Peter John Hollingworth, must proclaim the effective date of the commencement of certain sections of the Act. This proclamation was signed and sealed with the Great Seal of Australia on 6 June 2002, formalising the commencement date as 28 June 2002. This process ensures that the legal framework for the corporatisation of Snowy Hydro Limited is properly established and enforceable, providing a clear pathway for the transition and ongoing operation of the corporation under the specified conditions.