STATUTORY RULES.
1919. No. 224.
Regulation under the war precautions ACT 1914-1918.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the War Precautions Act 1914-1918, to come into operation forthwith.
Dated this twenty-seventh day of August, 1919.
R. M. FERGUSON,
Governor-General.
By His Excellency’s Command,
E. J. RUSSELL,
Acting Minister of State for Defence.
Amendment of War Precautions (Coal) Regulations.
(Statutory Rules 1917, No. 195, as amended by Statutory Rules 1917, Nos. 240 and 252, and by Statutory Rules 1919, Nos. 103, 119, 141, and 147.)
Regulation 10g of the War Precautions (Coal) Regulations is amended by adding at the end thereof the following sub-regulation:—
“(3.) Where the Prime Minister has, in pursuance of sub-regulation (2.) of this regulation, made an order declaring that any contract or agreement for the supply of coal is varied by the substitution, for the price specified in the contract or agreement, of a price higher than the price so specified, he may by order declare—
(a) that any company which produces gas from coal in respect of which such higher price is payable may, in any then existing contracts or agreements for the sale of gas, increase the price contracted for by an amount not exceeding the amount specified in the order and that the contracts or agreements shall by force of the order be deemed to be varied to the extent of the amount by which the price is so increased; and
(b) that any increase in the price of gas, which does not exceed the amount specified in the order, charged by any company producing gas from coal in respect of which such higher price is payable, shall not be taken to be an alteration of price within the meaning of any State Act which provides for the fixing of the price of gas.
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
The Statutory Rules 1919, No. 224, made under the War Precautions Act 1914-1918, was introduced to address the need for amendments to the War Precautions (Coal) Regulations to accommodate changes in the price of coal due to the exigencies of war. Enacted by the Governor-General in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, these regulations came into operation immediately. The policy objective behind these regulations was to ensure that the increased costs of coal could be passed on to consumers of gas produced from coal, while also protecting such price increases from being considered as alterations of price under state legislation. This was achieved through the authority of the Prime Minister to declare variations in coal prices and the subsequent adjustments to gas prices accordingly.
Scope and Application
The Statutory Rules 1919, No. 224, under the War Precautions Act 1914-1918, applies to companies that produce gas from coal and are subject to contracts or agreements for the supply of coal. These regulations are concerned with the alteration of prices in response to increased coal prices as a result of wartime measures. Specifically, the regulation allows for the substitution of higher prices in coal supply contracts and subsequently permits gas companies to increase the price of gas by a specified amount. This adjustment is legally recognised as a variation to the existing contracts or agreements, thus avoiding being classified as an alteration of price under state laws that regulate gas pricing. The regulation's scope is national, as it operates across all states within the Commonwealth of Australia. The regulation does not specify any exclusions or thresholds but allows for the Prime Minister to issue orders that dictate the extent of price increases permissible under the Act. Subordinate instruments may further extend or refine the application of these regulations, but the primary rules set out in this statutory instrument provide the framework for managing price adjustments during wartime conditions.
Key Provisions
The statutory rules, particularly Regulation 10g of the War Precautions (Coal) Regulations, introduce a new sub-regulation (3) that addresses the consequences of price variations in coal contracts during wartime. This sub-regulation empowers the Prime Minister to make specific orders in response to higher coal prices, which are stipulated by sub-regulation (2). Once the Prime Minister declares such a variation, they have the authority to further mandate that gas companies producing gas from coal can adjust the gas prices in their contracts by an amount not exceeding what the Prime Minister specifies in the order (Regulation 10g(3)(a)). Additionally, this sub-regulation ensures that such price increases in gas do not constitute a breach of state laws regulating gas prices (Regulation 10g(3)(b)). This provision aims to facilitate price adjustments in gas sales in response to increased coal costs while maintaining compliance with state regulations.
The obligations imposed by these regulations primarily fall on gas companies producing gas from coal. These companies are required to adhere to any price adjustments mandated by the Prime Minister's orders under Regulation 10g(3). Specifically, they must increase their gas prices in existing contracts by the specified amount, not exceeding the limit set by the Prime Minister. Additionally, these companies must ensure that such price increases do not violate any state laws governing gas prices. This dual obligation ensures that while they can adjust their prices in response to higher coal costs, they do so within the legal boundaries set by both federal and state laws.
Breaching these obligations can lead to significant consequences. While the specific penalties are not detailed in the statutory rules, violations of federal regulations typically incur penalties that can include fines, legal action, or other enforcement measures as prescribed by relevant legislation. Furthermore, failing to comply with state laws on gas price regulation could result in additional penalties as defined by those state laws. It is important for gas companies to meticulously follow the orders and stipulations set forth to avoid any legal repercussions.