War Precautions (Supplementary) Regulations 1916 (Amendment)

Overview

The Statutory Rules 1917, No. 12, constitute a regulation made under the War Precautions Act 1914–1916, enacted to address the need for regulatory control over the price of coal and gas during the period of World War I. This legislation was introduced by the Commonwealth of Australia, with the Governor-General and the Minister of State for Defence playing key roles in its enactment. The primary policy objective was to manage the economic impacts of the war by ensuring that increases in the price of coal did not unduly affect the price of gas, thereby maintaining a stable economic environment. This regulation aims to provide flexibility in the pricing of gas in relation to increases in coal prices, ensuring that companies producing gas could adjust their prices in existing contracts without being subject to state-imposed sliding scales.

Scope and Application

The Regulation made under the War Precautions Act 1914-1916 applies to any Board or person authorised to make orders, determinations, or regulations concerning the sale of coal or other products derived from coal or shale, and to any company producing gas. The regulation specifically governs the variation of prices charged in existing contracts for the sale of coal and the corresponding impact on the price of gas. Geographically, the regulation extends across the Commonwealth of Australia, as it is a federal regulation made under the War Precautions Act, which is a Commonwealth Act. This means the regulation applies uniformly across all states and territories of Australia. The regulation provides that any increase in the price of gas that does not exceed the amount attributable solely to the increased price of coal will not be considered an increase in the price of gas for the purposes of state acts regulating dividends payable by gas companies. Any order made under this regulation is deemed valid and effectual for all purposes, and companies may increase the price in existing gas sales contracts by an amount not exceeding the determined increase in coal price. The regulation does not specify exclusions, exemptions, or thresholds beyond those outlined in the text, and any further details or specific applications of the regulation may be addressed in subordinate instruments or additional regulations.

Key Provisions

The Regulation under the War Precautions Act 1914-1916 amends the War Precautions (Supplementary) Regulations by introducing two significant changes. Firstly, under Regulation 22(9b), it allows any board or person who has ordered a variation in the price of coal to also declare that any subsequent increase in the price of gas, attributable solely to the increased coal price, will not be considered an increase for the purposes of any State Act regulating the dividend payable by gas companies. This allows gas companies to adjust their prices in existing contracts by up to the amount determined to be attributable to the increased coal price, without violating State laws on price sliding scales. Secondly, sub-regulation (13) now includes any article that is wholly or mainly the product of coal or shale within its scope for regulating prices and conditions of sale, and for varying prices in existing contracts. The obligations imposed by these provisions require any board or person making an order that varies the price of coal to consider and potentially declare that any subsequent price increase in gas due to coal price changes will not contravene State laws. Gas companies must then adjust their prices in existing contracts by up to the amount attributable to the coal price increase. Additionally, any party involved in the sale of coal or shale products must comply with the new pricing regulations and conditions of sale as outlined in the amended regulation. The Regulation does not explicitly state any offences, penalties, or consequences for non-compliance within the text provided. However, under the overarching War Precautions Act 1914-1916, breaches of regulations made under the Act can lead to significant penalties, including fines and imprisonment, depending on the severity and intent behind the breach. The specific penalties would be detailed in the main Act or other relevant regulations, but non-compliance could result in severe civil or criminal consequences.