Special Broadcasting Service Regulations 1995 No. 11
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 11
Issued by the Authority of the Minister for Communications and the Arts
Special Broadcasting Service Act 1991
Special Broadcasting Service Regulations
Section 76 of the Special Broadcasting Services Act 1991 (the SBS Act) provides that the Governor may make regulations, not inconsistent with this Act, prescribing matters required or permitted by this Act to be prescribed by regulations; or necessary or convenient to be prescribed by regulations for carrying out or giving effect to this Act.
Subsection 67(1) of the SBS Act requires the Special Broadcasting Service (SBS) to obtain Ministerial approval to enter into contracts involving expenditure over $2,000,000, or a higher amount prescribed by regulations.
These Regulations raised the threshold for approval of contracts from $2,000,000 to $20,000,000.
The. making of Regulations is an interim arrangement until such time as the SBS Act can be amended to fully remove requirements in section 67 for Ministerial approval of contracts.
In consideration of the SBS's future funding arrangements in the 1994-95 Budget context, the Government has decided to repeal section 67 of the SBS Act in order to improve accountability of the SBS Board for contractual arrangements.
The Communications Legislation Amendment Bill 1994 contains a Clause that would repeal section 67 of the SBS Act. The Bill was introduced in the 1994 Spring Sittings of Parliament.
The Regulations commenced upon gazettal.
Overview
The Special Broadcasting Service Regulations 1995 were enacted to address the need for more flexible and efficient contract management within the Special Broadcasting Service (SBS), as stipulated under the Special Broadcasting Service Act 1991. These regulations were introduced by the Minister for Communications and the Arts and were designed as an interim measure to increase the threshold for Ministerial approval of SBS contracts from $2,000,000 to $20,000,000, thereby providing the SBS with greater autonomy in its financial dealings. This change aimed to enhance the SBS's operational efficiency and accountability while awaiting the full repeal of the requirement for Ministerial approval of contracts, which was to be achieved through the Communications Legislation Amendment Bill 1994. This bill, introduced during the 1994 Spring Sittings of Parliament, sought to ultimately remove the need for Ministerial oversight on certain contract approvals, reflecting a policy objective to streamline SBS operations and improve its governance structure.
Scope and Application
The Special Broadcasting Service Regulations 1995 pertain to the Special Broadcasting Service (SBS) and are made under the authority granted by the Special Broadcasting Service Act 1991. These regulations apply to the SBS, a statutory corporation responsible for providing multilingual and multicultural radio and television broadcasting services in Australia. The regulations were introduced to address specific requirements and to facilitate the operations of the SBS, particularly in relation to financial and contractual matters. The regulations extend to the entire Commonwealth of Australia, thereby applying to the SBS and its operations nationwide. The primary focus of these regulations is to adjust the threshold for Ministerial approval of contracts, raising it from $2,000,000 to $20,000,000, which is an interim measure until the SBS Act can be amended. This adjustment is intended to enhance the efficiency of the SBS's financial management while still ensuring accountability and oversight over significant financial commitments. However, these regulations do not introduce any exclusions or exemptions from the scope of the SBS Act but serve as an administrative tool to streamline the approval process for contracts within the current legislative framework.
Key Provisions
The Special Broadcasting Service Regulations 1995 No. 11, issued under the authority of the Minister for Communications and the Arts, primarily amend the threshold for contract approval under the Special Broadcasting Service Act 1991 (SBS Act). Section 67(1) of the SBS Act previously required the Special Broadcasting Service (SBS) to seek Ministerial approval for contracts exceeding $2,000,000. The Regulations, however, adjust this threshold to $20,000,000. This interim measure aims to ease administrative burdens on the SBS while the Government considers broader legislative reforms.
Under these Regulations, the SBS is required to obtain Ministerial approval for contracts involving expenditure above the newly set threshold of $20,000,000. This obligation ensures that significant financial commitments are reviewed and approved by the relevant Minister, maintaining oversight and accountability within the SBS's operations. This requirement is in line with the legislative intent to safeguard the SBS's financial decisions and ensure they align with broader government policies and objectives.
Failure to comply with the provisions of these Regulations, particularly the requirement for Ministerial approval for high-value contracts, may lead to various consequences. While the Regulations themselves do not explicitly outline penalties for non-compliance, breaches of the SBS Act or its subsidiary legislation could potentially result in civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for such offences would be determined in accordance with the provisions of the SBS Act. Additionally, non-compliance could lead to reputational damage and loss of public trust, impacting the SBS's operations and funding.