STATUTORY RULES.
1919. No. 98.
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-third day of April, 1919.
R. M. FERGUSON,
Governor-General.
By His Excellency’s Command,
W. A. WATT,
for Minister of State for Defence.
Amendment of War Precautions (Shipping) Regulations 1918.
(Statutory Rules 1918, No. 87, as amended by Statutory Rules 1918, Nos. 90, 112, 131, 185, and 284.)
After regulation 17a of the War Precautions (Shipping) Regulations the following regulation is inserted:—
Contracts may be referred to Inter-State Commission for inquiry.
“17aa.—(1) Where in pursuance of the last preceding regulation a certificate has been given that the bringing of any action or counterclaim or the taking of any step in relation to any action or counterclaim brought is, in the opinion of the Attorney-General or Solicitor-General, unfair, the Prime Minister may if he thinks fit refer to the Inter-State Commission for inquiry and report the question whether in all the circumstances of the case the contract or agreement in relation to which the certificate was issued should be—
(a) cancelled; or
(b) varied, and, if so, to what extent,
and upon receipt of the report of the Inter-State Commission thereon, may make an order cancelling or varying the contract or agreement accordingly.
“(2) If the Prime Minister makes any such order the order shall be forthwith published in the Gazette and shall thereupon have full force and effect.
“(3) No action or counterclaim shall be brought or made, nor shall any step be taken in relation to any action or counterclaim brought or made, for the breach or non-performance of the contract or agreement so cancelled or varied or for damages in respect of such breach or non-performance whether the claim arose or accrued before or after the commencement of this regulation:
Provided that where the contract or agreement has been so varied nothing in this regulation shall be deemed to prevent the bringing of any action or counterclaim for any breach or non-performance of the contract or agreement as so varied, or the taking of any step in relation to such action or counterclaim:
Provided further that nothing in this regulation shall affect the rights or obligations of the parties in relation to goods actually delivered under the contract or agreement which has been so cancelled or varied.
“(4) Any person, firm or company who or which brings any action or counterclaim, or takes any step in relation to any action or counterclaim brought, in contravention of this regulation shall be guilty of an offence.
“(5) For the purposes of inquiry into any question referred to it in pursuance of this regulation the Inter-State Commission and the individual members thereof shall have all the powers which are conferred on them by regulation 33 of the War Precautions (Supplementary) Regulations (Statutory Rules 1917, No. 254) for the purposes of investigations relating to prices and rent.”
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
Statutory Rules 1919, No. 98, under the War Precautions Act 1914–1918, was enacted to address the administrative and legal challenges that arose during the First World War, particularly in relation to shipping and contractual disputes. The Governor-General, acting with the advice of the Federal Executive Council, issued this regulation to provide a mechanism for the Prime Minister to refer disputes arising from shipping contracts to the Inter-State Commission for inquiry. This approach aimed to ensure that such disputes were handled in a manner that was considered fair and in the best interests of the Commonwealth during wartime. The regulation sought to prevent frivolous litigation and manage contractual relationships effectively, thereby maintaining the war effort’s integrity and continuity.
Scope and Application
The Regulation under the War Precautions Act 1914–1918, enacted by the Governor-General, establishes specific procedures for the cancellation or variation of contracts in the shipping industry. This legislative instrument applies to contracts that have been deemed unfair by the Attorney-General or Solicitor-General. The regulation empowers the Prime Minister to refer these contracts to the Inter-State Commission for an inquiry and report. Once the report is received, the Prime Minister can issue an order to either cancel or vary the contract, which will be published in the Gazette and enforced accordingly. The regulation applies nationally across Australia, given its Commonwealth jurisdiction, and extends to any person, firm, or company. It explicitly prohibits any action or counterclaim related to the breached or non-performed contract or agreement unless the contract has been varied, in which case actions for breaches of the varied contract may proceed. Additionally, the regulation does not affect the rights or obligations concerning goods already delivered under the contract. Any contravention of the regulation by bringing an action, counterclaim, or taking a step in relation to an action or counterclaim in defiance of the regulation constitutes an offence.
Key Provisions
The key operative sections of this regulation, inserted after regulation 17a of the War Precautions (Shipping) Regulations, allow for the referral of contracts to the Inter-State Commission for inquiry in specific circumstances. Section 17aa(1) states that if a certificate has been given that bringing an action or counterclaim or taking a step in relation to such actions is deemed unfair by the Attorney-General or Solicitor-General, the Prime Minister can refer the matter to the Inter-State Commission. The Commission is tasked with determining whether the contract should be cancelled or varied and, if so, to what extent. Upon receiving the Commission’s report, the Prime Minister can issue an order that cancels or varies the contract, which then takes full force and effect once published in the Gazette (section 17aa(2)).
The regulation imposes several obligations on the parties involved. Primarily, it prohibits any action, counterclaim, or steps taken in relation to actions or counterclaims brought for breach or non-performance of the contract or agreement once it has been cancelled or varied (section 17aa(3)). This prohibition applies to claims arising before or after the commencement of the regulation. However, it allows for actions or counterclaims regarding breaches or non-performance of the contract as varied, provided no steps are taken in relation to any pre-existing actions or counterclaims (section 17aa(3)). The regulation also ensures that rights and obligations regarding goods delivered under the contract are not affected by the cancellation or variation of the contract (section 17aa(3)).
The regulation sets forth specific consequences for breaches. Section 17aa(4) states that any person, firm, or company that brings an action, counterclaim, or takes any step in relation to such actions in contravention of the regulation commits an offence. While the regulation does not specify the penalties for such offences, it implies that there are legal repercussions for non-compliance. The Inter-State Commission is granted extensive powers for the purpose of this inquiry, as outlined in regulation 33 of the War Precautions (Supplementary) Regulations, to ensure thorough investigation and reporting.