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BROADCASTING SERVICES AMENDMENT ACT (No. 2) 1993 No. 2 of 1993 - SECT 3 Addition of new sections at end of Division 1 of Part 7

BROADCASTING SERVICES AMENDMENT ACT (No. 2) 1993 No. 2 of 1993 - SECT 3

Addition of new sections at end of Division 1 of Part 7
3. After section 98 of the Principal Act the following sections are added to
Division 1 of Part 7: Certain applicants for licences A and B to pay deposits

"98A.(1) In this section:
'allocation determination' means the determination of a price-based allocation
system for allocating subscription television broadcasting licences A and B
made by the Minister on 19 January 1993 under subsection 93(1);
'business day' means a day other than a Saturday, a Sunday or a public or bank
holiday in any state, the Australian Capital Territory or the Northern
Territory.

"(2) This section applies to any applicant for a subscription television
broadcasting licence who is given notice by the Secretary under the allocation
determination after the commencement of this section that:

   (a)  subject to the Trade Practices Commission's approval under subsection
        93(7); and

   (b)  unless the ABA decides that subsection 98(2) applies to the applicant;
        the applicant will be allocated licence A or licence B on payment of
        the price bid for that licence.

"(3) For the purpose of the operation of this section in relation to notices
given under the allocation determination after this section commences, such
notices are only taken to have been given to an applicant on the day when they
are delivered by courier:

   (a)  to the address of the applicant notified in the tender; or

   (b)  if the applicant has notified in the tender an address other than the
        address of the applicant as the place for service of notices-to that
        place; or

   (c)  if the courier is unable to effect delivery at the applicant's
        address, or any other address, notified in the tender-to the
        registered office of the applicant within Australia.

"(4) An applicant to whom this section applies must, within 3 business days
after the day on which notice is given to the applicant in respect either of
licence A or licence B, pay to the Commonwealth a deposit of 5% of the price
bid by the applicant in the tender for the licence.

"(5) For the purposes of the operation of the allocation determination in
relation to an applicant to whom this section applies, the payment of the
deposit counts towards the payment of the price bid by the applicant as
required under that determination.

"(6) A deposit:

   (a)  must be paid to the Collector of Public Money within the Department of
        Transport and Communications; and

   (b)  must be paid in Australian dollars; and

   (c)  must be in the form of a bank cheque issued by a bank licensed to
        operate in Australia.

"(7) If an applicant to whom this section applies fails to pay a deposit in
accordance with this section in respect of a tender for licence A or licence
B:

   (a)  the applicant is taken for the purposes of the allocation
        determination, including the allocation determination as affected by
        this Act, not to have lodged a tender; and

   (b)  the Secretary must inform the ABA, by notice in writing, of the
        failure to pay that deposit; and

   (c)  the procedures set out in clause 8 of the allocation determination,
        including those procedures as affected by this Act, apply again in
        respect of the applicant bidding the next highest price for the
        licence.

"(8) If, under section 98C, an applicant to whom this section applies
withdraws a tender for licence A or licence B:

   (a)  the applicant is taken for the purposes of the allocation
        determination, including the allocation determination as affected by
        this Act, not to have lodged a tender; and

   (b)  the Secretary must inform the ABA, by notice in writing, of the
        withdrawal of that tender; and

   (c)  the procedures set out in clause 8 of the allocation determination,
        including those procedures as affected by this Act, apply again in
        respect of the applicant bidding the next highest price for the
        licence. Repayment of deposit

"98B.(1) If:

   (a)  a deposit has been paid under section 98A by an applicant to whom that
        section applies; and

   (b)  the applicant is not subsequently allocated a licence by the ABA
        because of the operation of subsection 93(7) in relation to a report
        of the Trade Practices Commission to the ABA; the Commonwealth must
        repay the deposit and, in accordance with subsection (2), interest on
        the deposit, as soon as practicable after the receipt by the ABA of
        that report.

"(2) Interest on a deposit that is to be repaid is payable from and including
the day on which the deposit was paid to and including the day on which the
deposit is repaid.

"(3) Interest payable under subsection (2) is to be paid at a rate determined
in accordance with the regulations.

"(4) The Consolidated Revenue Fund is appropriated to the extent necessary to
make the repayment of a deposit, and of the interest payable on the deposit,
in accordance with this section.

"(5) A deposit paid under section 98A is not repayable by the Commonwealth if:

   (a)  the ABA decides that subsection 98(2) applies to the applicant; or

   (b)  the applicant fails within the time required by the allocation
        determination to pay the balance of the price bid. Withdrawal of
        tenders

"98C.(1) Any applicant under section 93 for allocation of a subscription
television broadcasting licence may withdraw the tender for that licence at
any time before payment of the deposit required to be paid under section 98A.

"(2) If an applicant withdraws a tender under subsection (1), the Commonwealth
will repay the applicant the application fee of $500 paid in respect of that
application.

"(3) Nothing in subsection (1) implies that this section only applies to an
applicant to whom section 98A applies or might, in the future, apply.
Compensation

"98D.(1) In this section:
'acquisition of property' has the same meaning as in paragraph 51(xxxi) of the
Constitution;
'just terms' has the same meaning as in paragraph 51(xxxi) of the
Constitution.

"(2) If the operation of this Act would result in the acquisition of property
from a person otherwise than on just terms, the Commonwealth is liable to pay
compensation of a reasonable amount to the person in respect of the
acquisition.

"(3) If the Commonwealth and the person do not agree on the amount of the
compensation, the person may institute proceedings in the Federal Court of
Australia for the recovery from the Commonwealth of such reasonable amount of
compensation as the Court determines.".