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SNOWY MOUNTAINS ENGINEERING CORPORATION REGULATIONS (REPEAL) 1993 NO. 338

SNOWY MOUNTAINS ENGINEERING CORPORATION REGULATIONS (REPEAL) 1993 NO. 338

EXPLANATORY STATEMENT

Statutory Rules 1993 No. 338

Issued by the authority of the Minister for Science and Small Business

Snowy Mountains Engineering Corporation Act 1970

Snowy Mountains Engineering Corporation Regulations (Repeal)

Section 55 of the Snowy Mountains Engineering Corporation Act 1970 (the Act) provides that the Governor-General may make regulations for the purposes of the Act. The Act has been amended on several occasions and a number of provisions have been repealed thus making Regulations relating to those provisions redundant. The Government has sold the Snowy Mountains Engineering Corporation Limited (SMEC) to Tinbury Limited (a staff owned company) and it is therefore proposed to repeal any legislation made concerning SMEC which is no longer required.

The Regulations would repeal Statutory Rules 1971 No 37 as amended by 1973 Nos 70 and 225 and Statutory Rules 1988 No 377.

Details of the Regulations repealed are as follows.

Travelling allowance for Assistant Directors

Regulations 2, 3 and 4 of the Snowy Mountains Engineering Corporation Regulations (1971, No 37) deal with travelling allowance for an Assistant Director. Regulation 5 provides that travelling allowance is payable in respect of any period of office after 18 November 1970. Legislation providing for the two Statutory positions of Assistant Director was repealed with effect from 14 November 1985 and the officers occupying those positions were appointed to senior management positions in the company. Travelling allowance for those Directors from that date was determined as with other staff members by the Office of the Public Service Board and subsequently with the current prevailing method appropriate to staff of the Corporation. These Regulations have had no effect for eight years and as the company is now sold it is appropriate that they be repealed.

Approval of Minister for contracts exceeding $500,000

Regulation 6 prescribes an amount under subsection 48(1) of the Act. Section 48 was repealed when SMEC was converted to a public company on 1 July 1989. The Regulation was made to allow SMEC to invest some surplus working capital funds in a short term interest bearing investment. Section 48(1) of the Act provided for a contract of more than $500,000 to be approved by the Minister. Subsection 48(2) modified the conditions under which it was necessary to obtain the Minister's approval by excluding contracts which were a normal part of its engineering operations. As a public company SMEC was subject to the Corporations Law and the legal provisions relating to other public companies. Section 48 of the Act was repealed as it was not consistent with Corporations Law and it was not appropriate for the Minister to be involved in commercial decisions.

Regulation 1 repeals the Regulations described in this statement.

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