Bills Digest No. 96 1997-98
Civil Aviation Legislation Amendment Bill 1997
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have any
official legal status. Other sources should be consulted to determine the
subsequent official status of the Bill.
CONTENTS
Civil Aviation Legislation Amendment Bill 1997
Date Introduced: 22 October 1997
House: House of Representatives
Portfolio: Transport and Regional Development
Commencement: This Act commences upon receipt of Royal Assent.
However, Schedule 3 and Item 2 of Schedule 2 are deemed to have commenced
on 6 July 1995. Schedule 4 is deemed to have commenced on 6 November 1995.
This Bill is intended to simplify the nation-wide administration and
enforcement of the requirement for all domestic and Australian international
carriers to have continuous passenger liability insurance.The Bill also
makes a number of minor formal and typographical amendments to other aviation-related
legislation.
The question of airline passenger liability insurance has always been
of concern to Parliamentarians.However, the relatively recent Monarch
and Seaview aircraft crashes highlighted both the inadequacy of the amount
of insurance cover and the difficulties faced by the families of victims
in receiving compensation.
Over the past three years, a number of initiatives have been taken to
address these issues.The passenger liability limit has been increased,
through Regulations, and the Principal Act has been amended to require
that all airline operators take out mandatory, no-fault insurance.
Prior to 1994, the maximum liability limit in respect of death or injury
to aircraft passengers had been $180 000. In October 1994, under Regulations
made pursuant to the Civil Aviation (Carriers' Liability) Act 1959,
the limit of passenger liability was raised to $500 000 for domestic carriers.In
subsequent Regulations, a $500,000 limit was also imposed on Australian
international carriers and foreign carriers whose states of registry were
not parties to the Warsaw Convention.Australia cannot, under the terms
of its international obligations under that Convention, legally impose
higher liability limits in respect of international carriers from countries
which are party to the Convention. However, such carriers were asked to
voluntarily raise their limit to $500,000.
Furthermore, the Transport Legislation Amendment Act (No. 2) 1995
introduced mandatory, no-fault insurance cover.No operator is allowed
to carry passengers for hire or reward without appropriate insurance cover.
The Act authorises the Minister for Transport to require operators to
provide evidence of compliance with these insurance obligations.Curently,
this authority is delegated to the Civil Aviation Safety Authority (CASA),
which is responsible for administering the carrier liability arrangements.As
a result of possible constitutional limits on the power of Commonwealth
to extend this legislation to intrastate aircraft operations, the States
agreed to implement complementary legislation on a uniform basis within
their jurisdictions.
The current Bill contains provisions to streamline the administration
of this regime and to strengthen enforcement.Firstly, CASA would be authorised
to directly administer both the Commonwealth's carriers' liability legislation
and the complementary State legislation rather than doing so under delegation
from the Minister for Transport.Secondly, the Bill would impose conditions
upon Air Operator's Certificates (AOCs), requiring that operators continuously
hold the mandatory non-voidable passenger liability insurance required
under the Carriers Liability Act.(1) CASA would be empowered to suspend
or cancel AOCs if this condition were breached.
The Bill would also permit the States to confer functions and powers
on Commonwealth officers under their own mandatory passenger liability
legislation.In particular, this would enable offences against State legislation
to be prosecuted as if they were offences against the Commonwealth legislation.
Since passengers may be carried in aircraft operated by the Commonwealth
and the States, the current legislation would require these governments
to also take out commercial insurance.This Bill would allow Australian
governments to self-insure their risks under the Carriers' Liability Act,
just as they self-insure against many other risks.However, governments
must satisfy CASA that arrangements have been put into place to cover
passenger liability in the event of an accident.
Clause 1 of the Bill repeals and replaces section 7 of the Principal
Act, with the effect of extending the binding legislation to the governments
of the Australian Capital Territory, the Northern Territory and Norfolk
Island.
Clause 5 would amend subsection 41(C)(1) of the Principal Act
to empower CASA, in place of the Minister, to require a carrier to provide
evidence of appropriate liability insurance.The amendment also removes
carriers owned or operated by governments from the requirement to provide
such evidence.However other proposed amendments ensure that such governments
implement appropriate arrangements relating to compensation in the event
of an accident.
Clause 6 amends sections 41C, 41J and 41K to empower officers
of CASA to directly administer the passenger liability insurance scheme,
rather than under delegation from the Minister for Transport.
Clause 7 inserts a new section 41CA into the Principal Act.This
requires governments which operate air services to provide evidence to
CASA, if requested, that appropriate arrangements relating to compensation
in the event of an accident have been put in place.
Clause 12 inserts a new section 41N into the Principal Act which
will authorise the States to confer functions and powers under their own
mandatory insurance legislation on officers of the Commonwealth.This will
assist CASA to administer the scheme on a nation-wide basis but would
also permit the Commonwealth Director of Public Prosecutions to prosecute
offences against the State laws.
Schedules 2, 3 and 4 of the Bill include minor amendments to the Civil
Aviation Act 1988, the Civil Aviation Legislation Amendment Act
1995 and the Competition Policy Reform Act 1995 respectively.For
the most part, these amendments simply clarify meaning, correct typographical
errors or repeal anachronistic provisions.
However, item 3 of Schedule 2 amends paragraph 28BA(1)(a) of
the Civil Aviation Act to ensure that failure by an AOC holder to provide
passenger liability insurance can result in the AOC being cancelled or
suspended by CASA.
The proposals in this Bill essentially only make mechanical changes
to the carriers' liability insurance arrangements.However, they do have
the effect of strengthening enforcement of the scheme and streamlining
its administration by the Civil Aviation Safety Authority.
- AOCs are important instruments used by CASA to regulate safety in
the aviation industry. CASA issues an AOC only if it is of the view
that and aircraft's operations, maintenance and airworthiness are of
a standard that CASA considers necessary in the interests of safe air
navigation.
Denis James
4 November 1997
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library, 1997.
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Last updated: 12 November 1997
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