Alert Digest No. 3 of 2001
Tuesday, 3 April 2001

Summary of Committee Comments

Barley Marketing (Amendment) Bill
City of Melbourne Bill

Corporations (Commonwealth Powers) Bill
Parliamentary Precincts Bill
State Owned Enterprises (Amendment) Bill

Appendix 1 - Index of Acts and Bills 2000

Appendix 2 - Summary of Comments classified by Terms of Reference

Appendix 3 – Ministerial Correspondence 2001


Barley Marketing (Amendment) Bill

Introduced - 21 March 2001
Second Reading Speech - 21 March 2001
House - Legislative Council
Private Members Bill introduced by the Hon. B. Bishop MLC

Purpose

To amend the Barley Marketing Act 1993 so as to indefinitely extend the single desk operations of ABB Grain Export Limited.

Content and Committee comment

[Clauses]

[2]. The amendments made by the Bill commence on Royal Assent.

[4]. Sections 5(1) and 33A(2) are repealed.

Section 5(1) of the Act applies Parts 4 of the Act to barley harvested in the season commencing on 1 July 1993, and each of the next 7 seasons but not thereafter.

Section 33A(2) provides that section 33A does not apply to the export of barley harvested on or after 1 July 2001.

The Committee makes no further comment.


City of Melbourne Bill

Introduced - 21 March 2001
Second Reading Speech - 22 March 2001
House - Legislative Assembly
Minister Introducing Bill - Hon. R. Cameron MLA with the Hon. J. Pandazopoulos MLA
Portfolio Responsibility Minister for Local Government

Purpose

The purpose of the Bill is to –

alter the electoral structure of the City of Melbourne; and

provide for the direct election of the Lord Mayor of Melbourne and the Deputy Lord Mayor of Melbourne; and

facilitate an early election of the members of the Melbourne City Council; and

provide for greater co-ordination between the State Government and the Council in relation to matters of significance to the State of Victoria; and

transfer provisions that only affect the City of Melbourne to this Act.

Content and Committee comment

[Clauses]

[2]. Sections 1 and 2 come into operation on the day after Royal Assent. The remaining provisions come into operation on proclamation but not later than by 1 January 2002.

[4]. The Bill is to be read as if it formed part of the Local Government Act 1989. If there is an inconsistency between the provisions in the Bill and the Local Government Act 1989, the provisions in the Bill prevail to the extent of any inconsistency.

[6]. The Melbourne City Council is to consist of a Lord Mayor, a Deputy Lord Mayor and 7 Councillors. For electoral purposes the City of Melbourne consists of one unsubdivided ward and the Lord Mayor and Deputy Lord Mayor are to be Councillors of the Council.

[9]. Corporations are to be permitted 2 votes at Council elections. This provision is substantially similar to the current section 13A of the Local Government Act 1989.

[12]. Council elections must be held every 3 years.

[13]. The first general election for the Council after the provisions in the Bill commence must be held before 16 March 2002.

[14]. The election of the Lord Mayor and the Deputy Lord Mayor is to be conducted at the same time as the election of the other Councillors. However by-elections may be held under the other provisions contained in the Bill.

[15]. Provides for joint nominations for Lord Mayor and Deputy Lord Mayor.

[16]. Provides that a person who is a candidate for election as the Lord Mayor or the Deputy Lord Mayor is not eligible to be a candidate for election as a Councillor if the elections are to be conducted at the same time.

[17]. Provides for a Senate-style ballot-paper to be used for Councillor elections to the Melbourne City Council. The rules and form of that style of ballot paper are provided in Schedules 1 and 2 of the Bill.

[18]. Provides that voting for the Lord Mayor and the Deputy Lord Mayor are to be counted as if each pair of candidates standing jointly for the positions was a single candidate.

[19]. Voting is to be compulsory. Penalty: 1 penalty unit ($100).

[20 to 23]. Deal with the precedence of and the terms of office of the Lord Mayor and functions and duties of the Deputy Lord Mayor.

[24]. Deals with the filling of vacancies in the office of Lord Mayor or Deputy Lord Mayor. There must be a by-election if there is a vacancy for either office 6 months or more before a general election is due. Otherwise a vacancy for the office of Lord Mayor may be filled by the Deputy Lord Mayor or if the vacancy is for the office of Deputy Lord Mayor then that vacancy may be filled by a vote of the Council.

[25]. In certain circumstances the Council may appoint an acting Deputy Lord Mayor.

[26]. Allowances must be paid to Councillors and the Lord Mayor and the Deputy Lord Mayor who may receive a higher allowance than that specified for other Councillors.

[28]. The Minister may by Order before 1 October in any financial year of the Council provide that a specified percentage of the revenue raised by the Council must be applied to provide works and services for the benefit of a part of the City of Melbourne. The Council must comply with such an Order.

[30]. Provides for regulation making powers –

(1) The Governor in Council may make regulations for or with respect to any matter or thing 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.

(2) Without limiting sub-section (1), the regulations may--

(a) make provision for the form of ballot-paper to be used in elections for the Lord Mayor and the Deputy Lord Mayor; and

(b) modify the effect of any provision of Schedule 2 or 3 of the Local Government Act 1989, or of any regulations made under that Act, as it applies to any election conducted under this Act;

(c) make any provision needed to ensure that an election can be conducted by postal voting.

(3) Section 243 of the Local Government Act 1989 applies to regulations made under this section as if they had been made under that Act.

The Committee accepts that the regulation making powers are appropriate to give effect to the purposes of the Act.

[31 and 32] Make consequential amendments to the Local Government Act 1989 and to Schedule 2 of that Act.

[33]. Other than certain savings provisions the City of Melbourne Act 1993 is repealed.

[34]. Preserves certain Orders that were made under provisions to be repealed by this Bill.

[Schedule 1]. Makes provisions with respect to holding of elections for Councillors.

[Schedule 2]. Sets out the form of the ballot paper to be used for election as Councillors.

The Committee makes no further comment.


Corporations (Commonwealth Powers) Bill

Introduced - 20 March 2001
Second Reading Speech - 20 March 2001
House - Legislative Assembly
Minister Introducing Bill - Hon. S. Bracks MLA with the Hon. J. Thwaites MLA
Portfolio Responsibility Minister for Consumer Affairs

Purpose

The Bill refers certain legislative powers relating to corporations and financial products and services to the Parliament of the Commonwealth pursuant to section 51(xxxvii) of the Constitution of the Commonwealth. The referral of powers will enable the Commonwealth Parliament to make laws that apply of their own force in the State, instead of those matters being dealt with by the Corporations Law and other applied laws.

Content and Committee comments

  • The High Court has held that Commonwealth corporations powers do not extend to regulating significant commercial areas associated with corporations such as the incorporation of companies, aspects of non-financial and non-trading corporations and certain activities of unincorporated bodies that engage in trade.

Section 51(xx) of the Commonwealth Constitution provides –

The Parliament shall, subject to this Constitution have power to make laws for the peace, order, and good government of the Commonwealth with respect to foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth.

  • As a consequence of the restrictions imposed on the Commonwealth Parliament by the Constitution, several national schemes of corporate regulation have been implemented since 1961, for example the Uniform Companies Act of 1961. The current scheme (the Scheme) commenced on 1 January 1991. Under the Scheme the States and the Northern Territory apply Commonwealth legislation enacted for the Australian Capital Territory (the Corporations Law) as the relevant law. The uniform law thus applies in each State and the Northern Territory as a law of the State or the Northern Territory, not as a law of the Commonwealth.

  • The relevant Victorian enactment applying the Commonwealth enactment (the Corporations Law) as a law of Victoria is the Corporations (Victoria) Act 1990. That Act essentially gave force in Victoria to national scheme template legislation.

  • Under the Scheme the Corporations Law is administered by Commonwealth bodies such as the Commonwealth Director of Public Prosecutions, the Australian Securities and Investments Commission and the Federal Police.

  • The Scheme was underpinned by an intergovernmental agreement allowing for the modification or amendment of the Corporations Law by approval of the Ministerial Council for Corporations.

  • Part of the Scheme involved the cross-vesting of jurisdiction between State and Federal Courts, allowing federal courts to be invested with State jurisdiction. However the High Court’s decision in Re: Wakim (1999) 163 ALR 270 struck down this cross-vesting scheme so far as it allowed the vesting of State jurisdiction in federal courts. As a consequence, only State courts may exercise State jurisdiction in respect to the Corporations Law. The decision of the High Court in The Queen v Hughes (2000) 171 ALR 155 cast further doubt as to the administrative efficacy and validity of aspects of the co-operative Scheme in respect to Commonwealth authorities or officers undertaking a function under State law involving the performance of a duty.

  • To overcome the constitutional limitations on the Commonwealth’s corporations powers the States have agreed with the Commonwealth that they will refer the Corporations Law powers (that are within the competence of States to refer) to the Commonwealth Parliament pursuant to section 51(xxxvii) of the Commonwealth Constitution (above). The Corporations legislation will be enacted as a law of the Commonwealth permitting the Commonwealth to legislate in respect to incorporating companies, conferring jurisdiction on federal courts and conferring functions and powers on Commonwealth authorities and officers. As a consequence the limitations imposed by the High Court’s decision in Re: Wakim will be overcome, as it will be federal jurisdiction that is vested in State courts.

Section 51(xxxvii) of the Commonwealth Constitution provides –

The Parliament shall, subject to this Constitution have power to make laws for the peace, order, and good government of the Commonwealth with respect to matters referred to the Parliament of the Commonwealth by the Parliament or Parliaments of any State or States, but so that the law shall extend only to States by whose Parliaments the matter is referred, or afterwards adopt the law.

  • This Bill operates by reference to the text of two Commonwealth Bills tabled in the Legislative Assembly of the Parliament of New South Wales (‘the tabled text’) and defined collectively as the ‘Corporations legislation’. They are the –

Corporations Bill 2001

Australian Securities and Investment Commission Bill 2001

Note for Members: A copy of the Commonwealth Bills are deposited in the Parliamentary library.

  • It is intended that the Corporations agreement given force in Victoria by the Bill will ensure that amendments to the Corporations legislation are made by the Commonwealth after examination by the Ministerial Council for Corporations.

  • The Bill enables the Commonwealth to amend the Corporations legislation or regulations made under them, in the future (the amendment reference as defined in clause 4(1)(b) of the Bill) provided the amendments are confined to the extent of making express amendments to the Bills referred to the Commonwealth Parliament. The Bill specifically provides that the Commonwealth may not use the amendment reference for the purpose or object of regulating industrial relations matters.

  • Clause 1(2) of the Bill and the Second Reading Speech state that the Bill is not intended to enable the making of a law pursuant to the amendment reference with the sole or the main purpose or object of regulating industrial relations.

  • If amendments to the Corporations legislation are contemplated by means of the amendment reference that are contrary to the agreement, Victoria may terminate the reference of powers or the amendment reference. The reference may be terminated in one of two ways –

  1. after 5 years from the commencement of the legislation, although before that date the Governor in Council can extend the date of termination by proclamation.

  2. an earlier date as proclaimed by Governor in Council proclamation. The earlier date must be at least 6 months after the date of publication of the proclamation.

  • The proposed Corporations legislation is not intended to impinge on State laws such as legislation dealing with co-operatives and incorporated associations.

[Clauses]

Commencement by proclamation

[2]. The Act comes into operation on proclamation.

The Committee notes the Bill is part of a co-operative Commonwealth, States and Territories agreement by which the States refer their corporations powers to the Commonwealth Parliament. Given that simultaneous commencement will be necessary in a number of jurisdictions the Committee accepts the necessity to bring into operation the provisions of this Bill by means of proclamation, rather than commencement on a specified date or upon Royal Assent.

[3]. Provides for definitions used throughout the Bill including reference to the proposed Corporations legislation as the ‘tabled text’. The tabled text are the 2 Commonwealth Bills tabled in the Legislative Assembly of New South Wales as follows –

(a) Corporations Bill 2001;

(b) Australian Securities and Investments Commission Bill 2001.

Reference of powers to the Commonwealth

[4]. Provides the reference of the State’s corporations power to the Commonwealth Parliament. There are two references comprising the initial reference [(1)(a)] which will ensure that the text of the Commonwealth Acts will be substantially the same as the existing Corporations Law and the Australian Securities and Investments Commission Law. Secondly, the amendment reference [(1)(b)], which will permit direct amendment of the text of the Corporations legislation, but not such as would permit the enactment by a Commonwealth Act of a provision that has or will have substantive effect otherwise than as part of the text of the Corporations legislation.

The Corporations agreement (‘the agreement’) will ensure that the future amendments to the Corporations legislation are made by the Commonwealth after examination by the Ministerial Council for Corporations. If the Commonwealth makes amendments to the Corporations legislation that do not comply with the Agreement, the State may use the reference termination powers.

The Committee notes that a copy of the tabled text is available in the Parliamentary library. The Committee also acknowledges that a copy of the tabled text has been provided to the Committee by the Office of Chief Parliamentary Counsel.

The Committee accepts that due to the complexity and size of the two proposed Commonwealth Bills (the tabled text) it would not be feasible or desirable to incorporate the Bills as a schedule or annexure to the Bill.

Expiry of reference

[5] Provides that the references terminate on the fifth anniversary of the commencement of the proposed Corporations legislation, unless a proclamation is made that fixes an earlier or a later date of termination.

The Committee notes the following comments from the Second Reading Speech –

The States have agreed to give the referral for only 5 years because the referral of power by the States to the Commonwealth is not a permanent solution to the problem of the current scheme.

Extension of reference

[6]. Empowers the making of one or more proclamations to extend the term of the references.

Early termination of reference

[7] Empowers the making of one or more proclamations to reduce the term of the references. Such a proclamation must be published at least six months in advance of the date of termination.

The Committee notes the provisions in clauses 6 and 7 permitting an extension or early termination of the legislative scheme by means of proclamation. Legislative provisions of this type may in some circumstances be considered to be an inappropriate delegation of legislative power within the meaning of section 4D(a)(iv) of the Parliamentary Committees Act 1968. The Committee notes that other referral of powers legislation such as the Commonwealth Powers (Industrial Relations) Act 1996 provide for termination of powers by proclamation provisions.

The Committee also notes that the States referral of corporations powers is intended to be a temporary solution to the Commonwealth’s constitutional limitations with respect to corporations. The Committee accepts that it is justified to include such provisions in this legislation.

[8] Provides for the accuracy of a copy of the tabled text containing the proposed Corporations legislation to be certified by the Clerk of the Legislative Assembly of New South Wales. Such a certificate is evidence of the accuracy of the tabled text, and that the text was in fact tabled as contemplated by the Bill.

[9]. The proposed Act has effect despite any provision of the Corporations (Victoria) Act 1990 or of the laws applied by that Act, and avoids a possible argument that section 5 of that Act would otherwise prevent the Bill from affecting the operation of that Act.

Report to the Parliament pursuant section 4D(b)(i) and (ii) of the Parliamentary Committees Act 1968 concerning a repeal alteration or variation of section 85 of the Constitution Act 1975.

[10]. Makes a direct amendment to section 85 of the Constitution Act 1975 by inserting a new section 85(11) to provide –

(11) Section 4 of the Corporations (Commonwealth Powers) Act 2001 alters or varies this section and has effect as a direct amendment of this section.

The Committee notes the following note in the Explanatory Memorandum –

The tabled text contains provisions that limit or affect the jurisdiction or powers of the Supreme Court. While under the Corporations legislation the Supreme Court will be exercising federal jurisdiction, this clause removes a possible argument that the referral of a matter to the Parliament of the Commonwealth for the purposes of section 51(xxxvii) of the Commonwealth Constitution is covered by section 85(5) of the Constitution Act 1975, because under that reference the Commonwealth Parliament may make laws limiting or affecting the jurisdiction or powers of the Supreme Court.

The Committee has examined the proposed insertion of new section 85(11) into the Constitution Act 1975, and notes the comments in the Explanatory Memorandum and accepts that the provision is consistent with the referral of State corporations powers to the Commonwealth Parliament.

The Committee makes no further comment.


Parliamentary Precincts Bill

Introduced - 21 March 2001
Second Reading Speech - 22 March 2001
House - Legislative Assembly
Minister Introducing Bill - Hon. S. Bracks MLA with the Hon. J. Pandazoplous MLA
Portfolio Responsibility Premier

Purpose

The Bill provides for the control, management and security of the Parliamentary precincts. The Bill implements the recommendations[i] made by the Scrutiny of Acts and Regulations Committee in its report on the Unlawful Assemblies and Processions Act 1958 tabled in Parliament in May 1999 (the 53rd Parliament)[ii]. The Bill is modeled on the Parliamentary Precincts Act 1997 (NSW), which was the preferred model recommended by the Committee in its report.

Content and Committee comment

[Clauses]

[2]. The Act comes into operation on the day after Royal Assent.

[3] Defines certain words and expressions used in the Bill including Parliamentary precincts and authorised officer.

"authorised officer" means–

(a) the President of the Legislative Council; (b) the Speaker of the Legislative Assembly; (c) the Usher of the Black Rod of the Legislative Council; (d) the Serjeant-at-Arms of the Legislative Assembly; (e) the Clerk of the Legislative Council; (f) the Clerk of the Legislative Assembly; (g) the Deputy Clerk of the Legislative Council; (h) the Deputy Clerk of the Legislative Assembly; (i) a member of the police force; (j) a protective services officer.

The Committee notes the following comments from the Second Reading Speech –

The area of the Parliamentary precincts is specified with more precision, removing former doubts concerning the Spring Street boundary. The incorporation of the Surveyor-General's plan into this Bill clarifies that the precincts commence at the first step adjoining the footpath at Spring Street. I am sure every Honourable Member will be pleased about that. The Bill also provides for additional premises used by the Parliament to be added to the area of the Parliamentary precincts by order of the Governor in Council.

The Bill enhances the ability of the Presiding Officers to secure the Parliament by giving them clear responsibility for the control and management of the Parliamentary precincts.

The Presiding Officers can grant leases or give licences to enter parts of the precincts and make arrangements for entry into the precincts for works to be performed. These powers do not interfere with the role of the House Committee to manage the refreshment rooms within the Parliament and supervise maintenance works.

The Presiding Officers and senior parliamentary officers, such as the Usher of the Black Rod, the Serjeant-at-Arms and the Clerks of both houses are granted specific powers to secure the Parliament. More importantly, these powers are also granted to police and protective services officers and are exercisable without the Presiding Officer's prior consent. The crucial power is the ability to direct persons to leave or not enter the Parliamentary precincts. Persons who do not comply with these directions can be forcibly removed or arrested. Offences are prescribed for failing to comply with a direction from an authorised officer to leave or not enter the precincts.

[4]. The Bill is not intended to derogate from the Parliaments inherent powers and historic privileges and immunities. These privileges include the exclusive power of the Presiding Officers to take action to secure the Parliament, to the extent that this exclusive power is not removed by this Bill.

[6]. On the recommendation of either Presiding Officer the Governor in Council may make an Order declaring land or premises outside the Parliamentary reserve to be Parliamentary precincts for the purposes of the Bill. The declaration may be revoked.

An Order may not be made in respect to Members electorate offices.

[7]. An Order made under [6] may be revoked on the recommendation of either or both of the Presiding Officers.

[8]. Vests the responsibility for the control and management of the Parliamentary precincts (the precincts) with the Presiding Officers.

[9]. The Presiding Officers may grant leases or licences over parts of the precincts and may make arrangements for works to be performed upon any part of the precincts.

Delegation of Powers to Parliamentary Officers

[10]. The Presiding Officers may delegate certain of their powers under the Act to the Usher of the Black Rod of the Legislative Council, the Serjeant-at-Arms of the Legislative Assembly and the Clerks and Deputy Clerks of each Chamber.

The powers to grant leases or licences, the power to give a direction under clause 15, the power to extend the period during which a person cannot enter the precincts and the power of delegation itself cannot be delegated.

The Committee accepts that the delegation provision is appropriately limited and defined to give effect to the purposes of the Act.

[11]. The Presiding Officers may enter into a memorandum of understanding with the Chief Commissioner of Police concerning the performance of any functions by members of the police force or protective services officers upon the precincts. The memorandum may also vest the Police with functions which are additional to those vested in police and protective services officers as an "authorised officer" for the purposes of the Bill. The memorandum may impose conditions or directions concerning the performance of any functions.

[12] Police and protective services officers must comply with any conditions or directions concerning the performance of any additional functions vested in them under a memorandum of understanding entered into under [11]. However a failure of an officer to comply with such condition or direction will not invalidate any action taken in the purported exercise of such function.

Powers to secure Parliamentary Precincts

[14]. The coercive powers in the Bill do not apply to Members. The inherent powers of each House in relation to Members are to be preserved and are not affected by the provisions in the Bill.

[15]. In exercising any power under the Bill, authorised officers are subject to a direction of the presiding officers not to exercise a power or function or to cease its exercise.

Persons may be directed to leave or not enter at any time

[16]. Empowers authorised Officers to direct persons to leave or not enter the Parliamentary precincts. Further the Presiding officers may direct by a written notice a person not to enter the precincts for a period longer than seven days. Such a notice must be served upon the person, either personally or by post.

[17]. A direction to leave or not enter the Parliamentary precincts can be made at any time, whether or not either of the Houses are sitting.

[18]. Enables a direction to leave or not enter the Parliamentary precincts to be made either verbally, or in writing displayed in a conspicuous place.

Power to remove persons or prevent entry by persons

[19]. An authorised officer may remove a person from the precincts or prevent a person from entering the precincts. This power exists only if the authorised officer believes that the person has failed to comply with a direction to leave or not enter the precincts or has committed an offence under the Bill or any other Act or law.

The authorised officer may use force, only to the extent that it is reasonably necessary to do so, to remove persons from, or prevent their entry to, the precincts.

Persons to supply name and address

[20]. An authorised officer may require persons who have failed to comply with a direction to leave or not enter the precincts, to give their name and address.

Persons may be arrested and detained without warrant

[21]. An authorised officer may arrest and detain any person without warrant who fails or refuses to leave the precincts when directed to do so, or who enters the precincts contrary to a direction (offences under sections 22 and 23).

Persons arrested under this provision must be informed of the reason for their arrest and detention and they may be detained until they can be brought before the Magistrates' Court by the police and dealt with according to law.

The Committee notes that the powers provided in clauses 19 to 21 and that they may only be exercised by authorised officers defined by clause 3 (above).

In respect to the power to arrest without warrant the Committee notes that a person detained must be informed of the reason for the detention and must be brought, as soon as practicable, before a Magistrate to be dealt with according to law.

The Committee accepts that these powers are exercisable by a limited and defined senior category of persons and are appropriate for the purposes of the Act.

Offences

[22]. It is an offence for a person to fail to leave the precincts when directed to do so by an authorised officer. Penalty 10 penalty units ($1,000).

[23]. It is an offence for a person to enter or re-enter the precincts contrary to a direction by an authorised officer. Penalty 10 penalty units ($1,000).

[24]. It is an offence for a person to fail to give his or her name and address to an authorised officer when required to do so, or to give a false or misleading name and address. Penalty 5 penalty units ($500).

[25]. It is an offence for a person to hinder or obstruct an authorised officer in the performance of his or her duties.

[26]. An authorised officer may prosecute for an offence.

[28]. Repeals section 46(2)* of the Parliamentary Committees Act 1968 which is now redundant, given the control and management of the Parliamentary precincts under the Bill is now to be vested in the Presiding Officers.
*
For the purposes of the Transport Act 1983 the House Committee has management and control of the Parliamentary Reserve delineated and shown in the Schedule.

The Schedule in that Act which indicates the boundaries of the Parliamentary reserve is also repealed. This will be replaced by a more specific description of the Parliamentary reserve in the Schedule to the Bill.

[30]. Repeals sections 3 and 4 of the Unlawful Assemblies and Processions Act 1958 which restrict assemblies in the vicinity of the Parliament.

Schedule

Shows the boundary of the Parliamentary reserve.

The Committee makes no further comment.


State Owned Enterprises (Amendment) Bill

Introduced - 21 March 2001
Second Reading Speech - 22 March 2001
House - Legislative Assembly
Minister Introducing Bill - Hon. J. Brumby MLA with the Hon. S. Bracks MLA
Portfolio Responsibility Minister for State and Regional Development

Purpose

The Bill amends the State Owned Enterprises Act 1992 (the SOE Act) as a consequence of the introduction of a national tax equivalent regime and is necessary to complete one of Victoria’s commitment under the Intergovernmental Agreement on the Reform of Commonwealth – State Financial Relations.

The Bill provides for the State to implement its commitment to establish a National Tax Equivalent Regime ("NTER") under the Intergovernmental Agreement on the Reform of Commonwealth – State Financial Relations and for the omission of references to sales tax in the State Owned Enterprises Act 1992.

The Committee notes the following comments from the Second Reading Speech –

Commonwealth sales tax

The Bill repeals references to sales tax in the SOE Act, as from 1 July 2000 it no longer applies under Commonwealth law.

Power of direction

The Bill provides the Treasurer with the power to direct state owned enterprises to comply with and withdraw from the NTER.

Delegation

The Bill allows the Treasurer to delegate certain powers, under section 88 of the SOE Act in relation to state owned enterprises that have entered the NTER, to persons employed in the administration of the NTER.

Review

The Treasurer's review mechanism under the SOE Act will not apply to state owned enterprises directed to enter the NTER as the NTER will contain its own review mechanism.

Content and Committee comment

[Clauses]

[2]. The provisions of the Bill commence on Royal Assent.

[3]. Deals with the National tax equivalent regime. Sub-clause (4) provides –

The Treasurer may, by instrument, delegate to –

(a) any person or class of persons employed in the administration of this Act, any power of the Treasurer under this section, other than this power of delegation;

(b) any person or class of persons employed or engaged in the administration of the NTER, any power of the Treasurer under this section in relation to a State owned enterprise that is the subject of a direction under sub-section (3D)(a), other than –

(i) this power of delegation; or

(ii) the power in sub-section (1) to direct a State owned enterprise to comply with this section; or

(iii) the power to make a direction under sub-section (3D).

The Committee accepts that the delegation provision is appropriate to give effect to the purposes of the Act.

The Committee makes no further comment.

Committee Room
2 April 2001


Footnotes
i Recommendation 5.
ii The full report is available on the Committee's Website under 'Publications' - 'Redundant Legislation' - 'Unlawful Assemblies and Processions Act 1958', at www.parliament.vic.gov.au/sarc.