STATUTORY RULES
1914. No. 12.
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PROVISIONAL REGULATIONS UNDER THE POST AND TELEGRAPH ACT 1901–1912.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby certify that, on account of urgency, the undermentioned amended Regulations under the Post and Telegraph Act 1901–1912, namely:—
Amendment of Telephone Regulations 1913.
(Statutory Rules 1913, No. 349.)
should come into immediate operation, and make the amended Regulations to come into operation forthwith as Provisional Regulations.
Dated this thirteenth day of February, One thousand nine hundred and fourteen.
DENMAN,
Governor-General.
By His Excellency’s Command,
AGAR WYNNE.
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Amendment of Telephone Regulations 1913.
(Statutory Rules 1913, No. 349.)
Regulations 106 and 107 under this head are repealed, and the following regulations are inserted in their stead:—
106. If the line is not likely to yield, annually, an amount sufficient to provide—
(a) For the cost of operating the line; and
(b) Ten per centum of the cost of constructing the line and supplying the instruments (to cover maintenance, renewals. &c.),
(which amount is referred of in this part of the Regulations as a minimum revenue), the applicants shall, for the purpose of guaranteeing the receipt of that amount, comply with the following conditions, namely:—
(i) The applicants shall deposit with the Postmaster-General a sum of money equal to 50 per centum of the difference between the estimated revenue from the line for two years and the minimum revenue for two years.
C.1868.—Price 3d.
(ii) The applicants shall enter into a joint and several bond in a sum to be fixed by the Postmaster-General, conditioned to make good, during a period of seven years after the completion of the line, an amount equal to 50 per centum of the amount by which the average annual revenue received during the guarantee period falls short of a minimum revenue.
107. The sum deposited with the Postmaster-General shall be paid to the Trust Fund, and such sum shall be available for the purpose of making good, in any year, 50 per centum of the amount by which the revenue received for that year falls short of a minimum revenue, and the sums required for that purpose may be withdrawn from the Trust Fund, and the accrued interest thereon, where necessary, may also be drawn from an Expenditure Vote, and paid to the Consolidated Revenue Fund at such times as the Postmaster-General thinks fit: Provided that any amount by which the revenue received in any year exceeds a minimum revenue may be applied to reduce the guarantor’s liability in respect of the deficiency in the revenue received for any year during the guarantee period.
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Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
The Provisional Regulations under the Post and Telegraph Act 1901, introduced in 1914, aim to address the issue of ensuring sufficient revenue for the operation and maintenance of telephone lines that are not expected to generate adequate income. Enacted by the Governor-General in accordance with the advice of the Federal Executive Council, these regulations were established to urgently amend the existing Telephone Regulations of 1913. The primary policy objective is to guarantee a minimum revenue for the telephone lines, thereby securing their financial viability. This is achieved by requiring applicants to deposit a specified sum with the Postmaster-General and enter into a bond, ensuring that any shortfall in revenue is compensated from a trust fund.
Scope and Application
The Provisional Regulations under the Post and Telegraph Act 1901–1912, as amended by these Statutory Rules, apply to applicants seeking to construct and operate telephone lines that are not expected to generate sufficient revenue to cover both operational costs and a predetermined percentage of the initial construction and equipment costs. This Act applies at the Commonwealth level and extends to all entities or individuals involved in the construction and operation of telephone lines within the jurisdiction of the Commonwealth of Australia. The regulations primarily focus on financial guarantees to ensure that the telephone lines meet certain revenue benchmarks. Specifically, applicants must either deposit a sum of money equal to 50 per cent of the shortfall between estimated and minimum revenue over two years with the Postmaster-General or enter into a bond to cover 50 per cent of any shortfall over a seven-year period. These deposits and bonds are managed through a Trust Fund, and any excess revenue can be used to reduce the guarantor’s liability. The Act does not explicitly mention exclusions or exemptions, but its application is contingent on the financial viability of the proposed telephone line project.
Key Provisions
The main operative sections of these Provisional Regulations, as amended under the Post and Telegraph Act 1901–1912, involve detailed financial guarantees for telephone line applicants (Regulation 106) and the management of a Trust Fund to cover revenue shortfalls (Regulation 107). Regulation 106 requires applicants to deposit with the Postmaster-General a sum of money equal to 50% of the difference between the estimated revenue from the line for two years and the minimum revenue for two years, if the line is not expected to yield a sufficient annual revenue. Additionally, applicants must enter into a joint and several bond to cover 50% of any shortfall in average annual revenue over a seven-year period following the completion of the line. Regulation 107 details that the deposited sum will be paid to the Trust Fund and used to cover any shortfall in revenue for a given year, with any excess revenue applied to reduce the guarantor’s liability for any deficient years.
The obligations imposed by these Regulations on the parties they govern are stringent and financial in nature. Applicants must ensure that they meet the minimum revenue requirements by either making the required deposit or entering into a bond. They must also be prepared to have their liability reduced if the line generates more revenue than expected. The Postmaster-General has the authority to manage the Trust Fund and decide when to withdraw funds and interest to cover revenue shortfalls, as well as when to transfer any excess funds to the Consolidated Revenue Fund.
Failure to comply with these Regulations can lead to various consequences, although specific offences and penalties are not explicitly stated in the text provided. Given the financial guarantees involved, non-compliance could result in legal action for breach of contract or bond. The Postmaster-General may also take administrative action to ensure that the Trust Fund is managed appropriately and that any financial obligations are met. The seriousness of the consequences would depend on the extent of the non-compliance and the impact on the financial stability of the line in question.