EXPLANATORY STATEMENT

 

Select Legislative Instrument 2005 No. 177

 

Issued by the Authority of the Minister for Finance and Administration

 

Commonwealth Authorities and Companies Act 1997

 

Commonwealth Authorities and Companies Amendment Regulations 2005 (No. 2)

 

The Commonwealth Authorities and Companies Act 1997 (the Act) provides reporting, accountability and other rules for Commonwealth authorities and companies.

 

Subsection 49(1) of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

Subsection 47A(1) of the Act provides that section 47A applies to Commonwealth authorities and wholly-owned Commonwealth companies prescribed in the Regulations.  Section 47A allows the Finance Minister to give directions to such prescribed bodies on matters related to the procurement of property or services.

 

Regulation 9 of the Commonwealth Authorities and Companies Regulations 1997 (the Principal Regulations) provides that the bodies prescribed in Schedule 1 to the Principal Regulations are specified for the purposes of section 47A of the Act. Part 1 of Schedule 1 prescribes Commonwealth authorities to which section 47A of the Act applies, while Part 2 of Schedule 1 prescribes the relevant wholly-owned Commonwealth companies.

 

The purpose of the Amendment Regulations is to amend the Principal Regulations to update the list of prescribed Commonwealth authorities in Schedule 1, Part 1. This update removes the Australian Broadcasting Authority and the Australian Communications Authority, which were abolished on 1 July 2005, from the list. This is a minor administrative change for better clarity and completeness.

 

Subsection 47A of the Act was inserted as a consequence of the Government Procurement provisions of the Australia-United States Free Trade Agreement.  The update to the list of prescribed Commonwealth authorities in Schedule 1, Part 1 is consistent with implementation of the government’s obligations under those provisions.

 

Further details of the Amendment Regulations are set out in the Attachment.

 

The Act specifies no conditions that need to be satisfied before the power to make the Amendment Regulations may be exercised.

The Amendment Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003 (Legislative Instruments Act).

 

In relation to section 17 of the Legislative Instruments Act, limited consultation was undertaken within the Australian Government in relation to the Amendment Regulations, as they are of a minor or machinery nature and do not substantially alter existing arrangements.  The Office of Regulation Review has advised that the preparation of a Regulation Impact Statement is not mandatory for the same reasons.

 

The Amendment Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

 

Authority:         Subsection 49(1) of the Commonwealth Authorities and Companies Act 1997

ATTACHMENT

 

Details of the proposed Commonwealth Authorities and Companies Amendment Regulations 2005 (No. 2)

 

Regulation 1 – Name of Regulations

 

This regulation provides that the title of the Regulations is the Commonwealth Authorities and Companies Amendment Regulations 2005 (No. 2).

 

Regulation 2 – Commencement

 

This regulation provides for the Regulations to commence on the date after they are registered on the Federal Register of Legislative Instruments.

 

Regulation 3 – Amendment of Commonwealth Authorities and Companies Regulations 1997

 

This regulation provides that the Commonwealth Authorities and Companies Regulations 1997 (the Principal Regulations) are amended as set out in Schedule 1.

 

Schedule 1 – Amendments commencing the day after registration

 

Item [1] – Schedule 1, Part 1

This item updates the list of bodies subject to government procurement requirements under section 47A of the Commonwealth Authorities and Companies Act 1997 by removing the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA) from the list of prescribed bodies.

·        On 1 July 2005, ABA and ACA were abolished by virtue of the Australian Communications and Media Authority Act 2005 and the Australian Communications and Media Authority (Consequential and Transitional Provisions) Act 2005, and replaced with a new body, the Australian Communications and Media Authority (ACMA).

·        ACMA is regulated under the Financial Management and Accountability Act 1997 rather than the Act.

·        This item removed the abolished bodies from Schedule 1, Part 1 of the Principal Regulations.