Alert Digest No. 11 of 1997
18 November 1997


Constitution (Amendment) Bill
Audit (Amendment) Bill
Gaming Acts (Miscellaneous Amendment) Bill


CONSTITUTION (AMENDMENT) BILL

1.1

This Bill was introduced into the Legislative Assembly on 30 October 1997 by the Honourable Jan Wade MP with the Honourable Marie Tehan MP.

1.2

The purpose of the Bill is to amend the Constitution Act 1975 with respect to the publication, transmission and broadcasting of Parliamentary proceedings and papers.

1.3 Section 85 of the Constitution Act 1975

Clause 3 expands the definition of `publication' in section 73 to include the written and electronic forms. Clause 4 inserts new section 74AA which provides that no proceedings lie against a person who transmits or broadcasts proceedings of a House of the Parliament. Clause 5 inserts new section 8A which directly amends section 85(8) of the Constitution Act 1975. It provides that new section 74AA makes a direct amendment to section 85. The Committee notes that pursuant to section 85(5), an explanation is not required where there is a direct amendment of section 85. For the purposes of providing information, the relevant parts of section 85 are set out:-

"(5) A provision of an Act, other than a provision which directly repeals or directly amends any part of this section, is not to be taken to repeal, alter or vary this section unless--

(a) the Act expressly refers to this section in, or in relation to, that provision and expressly, and not merely by implication, states an intention to repeal, alter or vary this section; and

(b) the member of the Parliament who introduces the Bill for the Act or, if the provision is inserted in the Act by another Act, the Bill for that other Act, or a person acting on his or her behalf, makes a statement to the Council or the Assembly, as the case requires, of the reasons for repealing, altering or varying this section; and

(c) the statement is so made during the member's second reading speech;"

The Committee also notes that the Second Reading Speech states that the amendments require a variation to section 85 of the Constitution Act 1975 which is achieved by the direct amendment to that section made by clause 5.

The Committee makes no further comment.

AUDIT (AMENDMENT) BILL

2.1

This Bill was introduced into the Legislative Assembly on 29 October 1997 by the Honourable Jeff Kennett MP with the Honourable Pat McNamara MP.

2.2

The Committee reported on the above Bill in Alert Digest No.10 of 1997 on 11 November 1997. The relevant extract is set out:-

2.3 Committee's comment

"Clause 19 amends section 17 which relates to the independent auditing of the Victorian Auditor-General's Office. In particular it repeals the requirements of section 13 in respect of auditing and confidentiality standards as they would apply to the person auditing the Auditor-General's Office. The Committee will write to the Minister seeking information as to the reasons for the repeal of section 13 in respect of amended section 17.

Clause 21 inserts new section 20B which exempts Audit Victoria and certain documents of the Auditor-General and the Victorian Auditor-General's Office from the operation of the Freedom of Information Act 1982. The Committee will write to the Minister seeking further explanation and clarification of the operation of new section 20B. Part 4 makes consequential amendments to various acts. The Schedule also makes consequential amendments to various Acts. The Committee notes that the following Acts amended by the Schedule repeal the requirement for the relevant body, council, board or person to keep proper books of account:-

  • Conservation, Forests and Lands Act 1987 -- section 26 is repealed;
  • Estate Agents Act 1980 -- section 77 is repealed;
  • Housing Act 1983 -- section 28 is repealed;
  • Patriotic Funds Act 1958 -- section 28 is repealed;
  • Psychologists Registration Act 1987 -- sections 43,44 and 45 are repealed;

The Committee will write to the Minister seeking further information as to the reasons for the repeal of the account keeping requirements in respect of the abovelisted Acts."

2.4 Minister's response

The Committee wrote to the Minister on 11 November 1997. The Minister responded by way of letter dated 17 November 1997. The relevant extract is set out:-

"Thank you for your letter of 11 November 1997 which raised issues concerning the Audit (Amendment) Bill.

In relation to those issues, the following information is provided.

Clause 19 - this clause, as you have pointed out, removes the reference to section 13 from section 17 of the Audit Act. Currently, section 17(5) provides, inter alia, that section 13 applies to the independent audit of the Victorian Auditor General's Office as if references in that section to the Auditor-General were references to the independent auditor. This is appropriate at the current time as section 13 applies specifically to the Auditor General.

However, by clause 15 of the Audit (Amendment) Bill, the current section 13 is to be replaced with a new provision. The new section contains the same requirements concerning the performance of functions under the Audit Act, but the terminology used makes no reference to the Auditor-General.

As there will be no reference to the Auditor-General in section 13, the reference to that section in section 17 is redundant, and for that reason, is to be removed. You will note that it is intended that clauses 15 and 19 will become operative on the same day, 1 July 1998.

Clause 21 - adds a new provision, section 20B. This section performs two functions:

  • Firstly, it provides that Audit Victoria is not, and is not eligible to be declared an agency or prescribed authority within the meaning of the Freedom of Information Act. As an entity which will operate on a competitively neutral basis in competition with the private sector, it was considered appropriate that Audit Victoria be excluded from the scope of the Freedom of Information Act.
  • Secondly, it provides that the Freedom of Information Act does not apply to a document held by the Auditor General or the Victorian Auditor-General's Office if the document discloses information about audits, reports of audits or functions under the Club Keno Act, the Tattersall Consultations Act and the Gaming Machine Control Act.

The reference to those three Acts is intended to cover the functions of the Auditor General under those Acts which are not audits as such, but which require him or her to issue confirming opinions concerning financial statements. For this purpose, you are referred to:

  • the definition of `promoters net profit' in section 3 of the Tattersall Consultations Act;
  • the definition of `participants net profit' in section 3 of the Club Keno Act and
  • section 135A(4)(c) Gaming Machine Control Act.

Documents held by the Victorian Auditor General's Office or the Auditor General which do not fall within the categories listed in proposed section 20B(2) will be subject to the Freedom of Information Act.

The Schedule - the repeals to which you refer were based on recommendations received from Chief Parliamentary Counsel. The recommendations were that the provisions which are to be repealed apply to public statutory authorities which are subject to the financial and audit requirements of the Financial Management Act and the Audit Act. As the requirements in the repealed provisions are inconsistent with the Financial Management Act and the Audit Act requirements, it was recommended that they be repealed.

Should you have any additional inquiries concerning this Bill, Ian Killey, Assistant Secretary, Legal, Department of Premier and Cabinet (9651 5644) will be able to assist."

Clause 9 inserts new Part 2A which establishes Audit Victoria. There was discussion amongst Committee members whether the amendments namely, the creation of Audit Victoria and the status of the Auditor General came within the Committee's terms of reference. No agreement was reached on this point.

GAMING ACTS (MISCELLANEOUS AMENDMENT) BILL

3.1

This Bill was introduced into the Legislative Assembly on 8 October 1997 by the Honourable Tom Reynolds MP with the Honourable Pat McNamara MP.

3.2 Committee's Report

The Committee reported on the Bill in Alert Digest No. 9 of 1997 on 28 October 1997. The relevant extract is set out:-

"Clause 37 amends section 57 which sets out the voting rights in respect of certain shares. The provision is deemed to have come into operation on 6 May 1997. The Committee will write a letter to the Minister."

3.3 Minister's Response

The Committee wrote to the Minister on 30 October 1997. The Minister responded by way of letter dated 12 November 1997. The relevant extract is set out:-

"Thank you for your letter of 30 October 1997 requesting clarification of the effect of the amendment proposed in clause 37 of this Bill.

The clause provides for consequential amendments to be made to section 57 of the Gaming and Betting Act 1994 (the Act).

Part 4 of the Act containing sections 51 to 63 regulates shareholding interests in TABCORP. Section 53 sets out the various types of shareholdings which constitute a `prohibited shareholding interest' in the company, and the remainder of the Part sets out the consequences of having a prohibited shareholding interest, and the steps that may be taken to compel a person who has a prohibited shareholding interest to dispose of it.

Section 57 of the Act provides that where a person holds more than the permitted shareholding interest they do not have voting rights in respect of the shares they hold over and above the permitted limit.

The Gaming Acts (Further Amendment) Act 1997 (no15/1997) which received Royal Assent on 6 May 1997 amended section 53 of the Act and repealed section 54 to lessen the shareholding restrictions on TABCORP by:

  • lifting the limitation on overseas shareholdings from 2.5% to 5%;
  • abolishing the limitation on shareholdings for persons convicted of a relevant offence;
  • abolishing the requirement for a probity check on Australian shareholders who sought to hold between 2.5% and 5% of the shares in TABCORP.

Clause 37 of the Bill amends section 57 of the Act to correct cross-references to parts of section 53 of the Act which no longer exist as a result of these amendments.

Neither the amendment proposed in clause 37 nor the fact that it is retrospective will have an adverse effect on TABCORP shareholders, as the amendment is consequential upon the amendments to section 53 made in May 1997.

If you have any further queries in relation to this issue or the Bill generally, please contact Sarah Harvey, Acting Manager, Legal and Legislation Branch, Victorian Casino and Gaming Authority, telephone 9651 3458."

Committee Room
18 November 1997


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