EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO 150
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
TERRITORY AUTHORITIES (FINANCIAL PROVISIONS) ACT 1978 –
TERRITORY AUTHORITIES (FINANCIAL PROVISIONS) REGULATIONS (AMENDMENT)
Section 10 of the Territory Authorities (Financial Provisions) Act 1978 (the Act) provides that the Governor-General may make regulations, not inconsistent with this Act, prescribing all matters required or permitted by this Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to this Act. The attached Statutory Rules prescribe the Australian Capital Territory Electricity and Water Authority as an authority to which subsection 7(2) of the Act applies.
Subsection 4(1) of the Act provides that in the Act, unless the contrary intention appears, “authority” means a body corporate established for a public purpose by or under a law of a Territory.
Subsection 7(2) of the Act provides that the Treasurer may, on behalf of the Commonwealth, guarantee the repayment by an authority to which the section applies of amounts lawfully borrowed by the authority, other than moneys lent under that section, and the payment of interest on amounts so borrowed.
The attached Statutory Rules prescribe the Australian Capital Territory Electricity and Water Authority (the Authority), established from 1 July 1988 by the Electricity and Water Ordinance 1988, as an authority to which subsection 7(2) of this Act applies.
The Authority replaced the Australian Capital Territory Electricity Authority established under section 5 of the Australian Capital Territory Electricity Supply Act 1962. Subsection 26A(1) of that Act provided that the Australian Capital Territory Electricity Authority may, with the approval of the Treasurer, borrow money otherwise than from the Commonwealth or raise money otherwise than by borrowing on terms and conditions that were specified in, or consistent with the approval. Subsection 26B(1) of that Act provided that the Treasurer may, on behalf of the Commonwealth, enter into a contract or issue a written determination guaranteeing borrowings raised by that Authority under subsection 26A(1) of that Act.
The Authority is a body corporate with perpetual succession, whose purpose is to provide reticulated services (electricity supply, water supply and sewerage services) in the Australian Capital Territory. Section 43 of the Electricity and Water Ordinance 1988 provides for
the Authority to raise borrowings, otherwise than from the Commonwealth and to raise money otherwise than by borrowing.
It is appropriate that the Australian Capital Territory Electricity and Water Authority also has provisions for Commonwealth guarantees on its borrowings available to it, and this is provided by the attached Statutory Rules.
Authority: Section 10 of the Territory Authorities (Financial Provisions) Act 1978