Bills Digest No. 1 2003-04
National Transport
Commission Bill 2003
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
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
National Transport
Commission Bill 2003
Date Introduced:
4 June 2003
House: House of Representatives
Portfolio: Transport and Regional
Services
Commencement:
The main provisions of the
Act commence on a day to be fixed by Proclamation
The purpose of
the Bill is to establish a National Transport Commission (NTC) with
a broader transport charter than the existing National Road
Transport Commission (NRTC), which is due to cease operations in
January 2004. The Commonwealth, State and Territory Heads of
Government have agreed to the creation of the new body (the
NTC).
The National Road Transport Commission was
established in 1991 under the National Road Transport
Commission Act 1991 (NRTC Act). The NRTC was formed
to overcome the lack of uniformity in State and Territory
regulation of transport vehicle operations, including vehicle
standards, weights and dimensions. The variations in regulations
impacted adversely on interstate transport operations. In addition,
the NRTC assisted in making interstate haulage efficient and safer
and contributed to a reduction in road transportation's
environmental impacts. The NRTC implements transport reforms
approved by Australia's nine Transport and Road Ministers. The
NRTC Act contains a sunset clause. The two key provisions
concerning the operation of the NRTC are:
46 (1) This Act ceases to be in
force at the end of 12 years after its commencement.
(2) It is the intention of the
Parliament that, before this Act ceases to be in force because of
subsection (1), the assets and liabilities of the Commission should
be dealt with as determined by the Australian Transport Council by
resolution carried by all its members.
47 (1) At least 12 months before
this Act is due to cease to be in force because of subsection
46(1), the Australian Transport Council must:
(a)
prepare a written report that contains a recommendation in
accordance with subsection (2) and that sets out the Council s
reasons for making that recommendation; and
(b)
give a copy of the report to the head of government of each of the
parties to an Agreement.
(2) The report must contain
either:
(a)
a recommendation that this Act should cease to be in force under
subsection 46(1) and should not be re‑enacted; or
(b)
a recommendation that this Act should continue to be in force, or
should be re‑enacted, for a further period not exceeding 6
years, subject to the making of such modifications (if any) as are
set out in the report.
Consistent with the provisions of the NRTC
Act, a review of the operation of the NRTC has been carried
out and the recommendation of the review is that a new body with a
broader regulatory reform focus should be
established.(1) Details of the Terms of
Reference for the review and the composition of the review
panel were provided to Parliament in a written answer to a Question
on Notice from Senator Kerry O'Brien on 25 February 2002 (Question
No. 139) which was answered on 14 May 2002.(2)
It is reported that the Bureau of Transport
Economics is forecasting that freight demand for road and rail will
double by 2015 and that both road and rail will have to work
together to cope with the demand.(3) In part, this
increasing demand on national transport is said to be due to
specialisation in production where product components and
processing are sourced from suppliers and processors on an
interstate basis. An appropriate response is to foster convergence
between road and rail. Representatives of the road and rail sectors
agree that there should be national development of an integrated
transport system. Media commentary has noted:
Both parties and the federal government foresee a
transportation system with intermodal depots places where
containers can be switched between the two major modes of
transport.(4)
The Explanatory Memorandum to the Bill
confirms that the proposed National Transport Commission will
be:
[A]n independent statutory body with
responsibility for developing, monitoring and maintaining uniform
or nationally consistent regulatory and operational reforms
relating to road, rail and intermodal transport.(5)
On 31 October 2002, the Hon John Anderson, MP,
Minister for Transport and Regional Services, noted that, subject
to the agreement of Heads of Government, there was a need to
establish a body with responsibility for intermodal transport. He
said:
The NTC will replace the National Road Transport
Commission in January 2004 and build on its successful history of
reform in road transport. We are working on transitional
arrangements to enable it to start work on urgent rail reform and
inter modal reform issues before its official commencement
date.(6)
The Shadow Minister for Transport and
Infrastructure, Mr Martin Ferguson MP, gave a speech to the
Australian Trucking Association Annual Conference in Hobart on 3
May 2003. In that speech he noted the review of the NRTC and
said:
I expect the review process will come up with some
new ideas for the future of the NRTC. This should include an option
to consider a structure that includes other modes and a focus on
the interaction between them.
In my view, we should all have an open mind to a
broader structure, but I agree that any new structure should not
divert from the pace of the national road reforms.
The structure of the NRTC must be resolved in a
timely manner so that it is not permitted to disintegrate into a
range war that grinds all productive reform to a
halt.(7)
In his speech, Mr Ferguson also noted that it
was the Labor Party that had established the national road
transport reform processes, including the NRTC.
The sunset provision at section 46 of the NRTC
Act means that if the Bill is not passed there will be no national
body to drive uniform regulatory reform for the Australian road
transport system and, in particular, a lack of impetus for
intermodal convergence of road and rail in national transport. The
proposal for an NTC has bipartisan and inter-government support. As
noted above, the existing NRTC is due to cease operation in January
2004.
Clause 3 of the Bill provides
a summary of the purpose of the legislation. Its stated purpose is
to:
establish the NTC which has a national role in
the reform of transport regulation and operations in the sectors of
road, rail and intermodal transport, and
provide a mechanism for the making of
regulations, including model legislation and other legislative
instruments for these national transport sectors.
Clause 5 establishes the
National Transport Commission (NTC) as a statutory body
corporate.
Clause 6 specifies the
functions and powers of the NTC. The activities of the NTC are
largely specified in the Agreement between the Commonwealth, the
States, the Australian Capital Territory and the Northern
Territory. The NTC will also implement other functions that are
conferred on it by the Minister, subject to the prior consent of
the Australian Transport Council (ATC). [The ATC is the Ministerial
Council of Commonwealth, New Zealand, State and Territory Ministers
responsible for transport matters].
Clause 7 empowers the NTC to
prepare model legislation by way of regulations relating to road,
rail and intermodal transport. These regulations are exempted from
disallowance by Parliament as their sole purpose is to provide a
model for the States and Territories and they will not, in
themselves, have application as a subordinate law of the
Commonwealth.
Clause 8 obligates the NTC to
report to the ATC on the performance of its functions.
Clause 11 specifies that the
NTC will comprise of a CEO and 5 ordinary members. An ordinary
member is appointed by the Minister on the nomination of the ATC
(Clause 12). The Chair and Deputy Chair are
appointed from ordinary members by the Minister on the nomination
of the ATC (Clause 13). The ordinary members are
part-time office-holders whose appointment is not to exceed 3 years
(Clause 14 and Clause 15,
respectively).
It is noted that Clause 17
enables the ATC to provide benefits additional to any specified
remuneration allowance to an ordinary member to help that member
carry out the performance of his or her functions.
Clauses 23 to
25 require the NTC to prepare 3 year draft
strategic plans and to consult with the National Environment
Protection Council in the preparation of the draft plans. The draft
plans are then presented to the ATC for consideration for approval
or non-approval and direction by the ATC as to any necessary
alterations.
Clauses 26 to 31 deal with
the convening of meetings and the procedures and voting for
meetings of the NTC, including the disclosure of interests by
members.
Clause 32 empowers the NTC to
constitute committees to assist the NTC in the performance of its
functions.
The NTC will be funded by the Commonwealth,
States and Territories with the Commonwealth contributing 35% for
the costs of establishing and running the NTC. The projected budget
for the NTC for the financial year 2003 04 is $7 million. The
Commonwealth's share of the costs is $2.45
million.(8)
Clauses 33 to
37 specify that the NTC is funded by the
Australian governments who are parties to the Agreement. The money
received by the NTC must be applied to the costs incurred by the
NTC in accordance with the applicable strategic plan and applicable
work program. Estimates for each financial year are submitted to
the ATC.
Clause 38 exempts the NTC
from the Commonwealth Authorities and Companies Act 1997
except for the following obligations:
the preparation of an annual report and
financial statements
all moneys received by the NTC must be paid
into a bank and any surplus money may be invested in specified
securities, and
the NTC must keep accounting records that
properly record and explain its transactions and financial
position.
A copy of the annual report of the NTC given
to the Commonwealth Minister must be tabled in Parliament and given
to the members of the ATC as soon as practicable.
Clauses 39 to
43 provide the NTC with the authority to appoint
the CEO. The CEO is appointed by the Chair on the recommendation of
the NTC members (other than the CEO).
The proposed legislation is silent (other than
a general provision at Clause 43) on the express
mechanisms for:
the resignation of the CEO
disclosure of interests by the CEO
whether outside employment is permitted
the grounds for termination of the appointment
of the CEO, and
appointing an acting CEO.
Clauses 44 to
47 deal with the staffing resources of the NTC
which may employ both non-Public Service staff and staff engaged
under the Public Service Act 1999. The NTC may also
utilise State and Territory staff or employees and engage
consultants on terms and conditions determined by the NTC.
Clauses 48 and
49 provide the power for delegation by the NTC and
the ATC, respectively.
Clause 51 obligates the ATC
to conduct a review of the NTC no later than the sixth anniversary
after the commencement of the Act, and subsequently for each six
year anniversary after that first review. The report of the review
is given to each of the Heads of Government. The report will
include a recommendation on the continuation or otherwise of the
NTC.
Taken overall, the legislation promotes
a timely response to the expected increase in transportation demand
in Australia. A uniform national approach
to addressing more efficient interaction of road and rail is
important.
The provisions dealing with the
appointment of the CEO in this Bill
follow closely the previous provisions in the NRTC Act
1991. To that extent, this Bill is
faithful to the approach taken in the legislation it replaces.
There may have been scope, however, to expand on those provisions
to deal with matters such as an acting appointment, resignation or
termination of appointment of the CEO.
- Hon Wilson Tuckey MP, 'Second Reading
Speech', National Transport Commission Bill 1993, House of
Representatives, Debates, 4 June 2003, p. 15292.
- Senator Kerry O'Brien, Question on Notice
(Question No. 139), National Road Transport Commission,
Senate, Hansard, 14 May 2002, p. 1471. The Terms of
Reference were:
1. In this context the
NRTCA Review should:
(a)
Consider and report on
how well the NRTCA and associated processes have functioned and on
any ways in which those processes might be significantly improved,
including how the preparation of regulatory impact statements might
be improved.
(b)
Make recommendations on
whether the NRTCA should cease to be in force (and if so what
alternative structures should be put in place) or be re-enacted
(including in a modified form). If the latter, the recommendations
should include any revisions or clarifications that need to be made
to the NRTC Act and the Heavy and Light Vehicle Agreements, to make
them function more effectively.
(c)
Having regard to the
broad aims set out earlier in these Terms of Reference, consider
the breadth of, and priorities for, future road transport reform
needs including consideration of alternative approaches to
regulatory arrangements (for example, accreditation and
co-regulation):
The issues considered in any future
regulatory reform arrangements should include pricing, charges,
cost neutrality and the externalities associated with choices of
transport mode.
(d)
In addressing future
institutional arrangements for transport regulatory reform,
explicitly consider whether those arrangements should apply only to
road transport or be extended to any aspects of other modes and to
cross-modal issues.
(e)
Consider also the degree
to which any change in institutional arrangements should encompass
issues beyond regulatory reform. In this context the Review should
also address the role of the National Transport Secretariat and its
place in any recommended future institutional
arrangements.
(f)
If recommendations are
made to broaden the current regulatory policy framework (for
example by replacing the NRTC by a Land Transport Commission) the
Review should specifically address what steps and arrangements are
necessary in order to ensure that this does not result in a
lessening of attention to ongoing road transport reform. This
should include, but not be limited to, how best to:
Ensure that previous reforms are
kept up to date and maintain their relevance in a changing economy
and transport environment;
Complete work on outstanding
reforms;
Develop a new agenda for reform and
implementing change projects.
(g)
Consider an appropriate
level of funding for the recommended institutional arrangements and
the ongoing funding arrangements that should apply.
2.
The Review may also make recommendations
to address any other limitations or shortfalls identified in the
course of the review.
- Mark Lawson, 'Road and Rail to work
together', Australian Financial Review, 11 March 2003, p.
13.
- ibid
- Explanatory Memorandum, National
Transport Commission Bill 2003, p. 1.
- The Hon John Anderson MP, Minister for
Transport and Regional Services, 'Australian Railway Association
Convention', Speech to the Australian Railway Association
Convention, 31 October 2002.
- Mr Martin Ferguson MP, Shadow Minister for
Transport and Infrastructure, 'Transport Priorities and
Challenges', Speech to the Australian Trucking Association Annual
Conference, Hobart, 3 May 2003, pp. 9 10.
- Explanatory Memorandum, National
Transport Commission Bill 2003, p. 3.
Brendan Bailey
30 July 2003
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
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