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Management Bill 1998
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
* Amended in committee--see table at end of volume.
Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 defines certain words and expressions used in the proposed Act.
Clause 4 makes it clear that the proposed Act will not affect the operation of
the Catchment Management Act 1989 or any other Act, except where the
proposed Act otherwise provides.
Clause 5 provides for the proposed Act to bind the Crown in all its
capacities.
Part 2
Constitution of Sydney Catchment Authority
Clause 6 constitutes a corporation known as the Sydney Catchment
Authority (the Authority), which is to be
a statutory body representing the
Crown.
Clause 7 establishes a Sydney Catchment Authority Board (the Board)
comprising a Chief Executive and between 4 and 7 ministerial appointees
with the expertise necessary for the Authority to achieve its objectives.
Clause 8 gives the Board the function. within certain parameters, of
efficiently and economically determining the policies of the Authority.
Clause 9 provides for the appointment of the Chief Executive of the
Authority.
Clause 10 states that the affairs of the Authority are to be managed and
controlled by the Chief Executive.
Clause 11 subjects the Authority to ministerial directions, with certain
exceptions in relation to reports and recommendations. However, provision is
made for reimbursement from the public revenue to be made to the Authority
for directions that are not in the commercial interests of the Authority.
Clause 12 allows the Authority to employ staff.
Explanatory note page 2
Part 3
Role, objectives and functions of Authority
Division 1
Role and objectives
Clause 13 provides that the role of the Authority is to manage and protect
the catchment areas and the catchment infrastructure works, to be a supplier
of bulk water. and to regulate activities within or affecting the catchment
areas.
Clause 14 sets out the principal and special objectives of the Authority,
which emphasise the protection of public health and public safety and the
protection of the environment.
Division 2
Functions
Clause 15 is a general provision conferring and imposing functions on the
Authority, subject to the Authority's licence.
Clause 16 sets out the specific functions of the Authority, which include the
supply, management, protection and enhancement of the quality of water, as
well as a research role and an educative role.
Clause 17 empowers the Authority to exercise concurrence and other roles
under environmental planning instruments.
Clause 18 empowers the Authority to exercise concurrence and other roles
conferred or imposed on i t by the regulations in connection with the grant of
licences under other legislation.
Clause 19 provides for regulations to confer or impose on the Authority
certain functions by reference to powers under other legislation relevant to
activities carried out in the catchment areas.
Division 3
Area of operations
Clause 20 provides for the area of operations of the Authority. Initially. this
will be so much of the area of operations of Sydney Water Corporation
Limited (the Corporation) as is specified in the operating licence of the
Authority. Provision is also made for the variation of the area of operations
by way of orders.
Clause 21 makes transitional arrangements in relation to such orders.
Explanatory note page 3
Division 4
Arrangements with Sydney Water Corporation
Clause 22 requires the Authority to enter into arrangements with the
Corporation regarding the supply of water by the Authority to the
Corporation, and outlines the process of altering such arrangements.
Clause 23 requires the Authority and the Corporation to enter into
negotiations with regard to the arrangements, and provides a mechanism for
resolving disagreements.
Clause 24 provides a role for the Independent Pricing and Regulatory
Tribunal in relation to the arrangements. The Tribunal is given the oversight
of the arrangements and may report to the Minister. The clause also contains
a provision making it clear that the supply of water can be declared a
government monopoly service for the purposes of the Independent Pricing
and Regulatory Tribunal Act 1992.
Part 4
Control and accountability of Authority
Division 1
Operating licences
Clause 25 allows the grant of an operating licence to enable the Authority to
provide, construct, operate, manage or maintain systems or services for the
purpose of the exercise of its functions in accordance with the proposed Act,
whether within or outside the area of operations. The operating licence has
the effect of authorising the Authority to exercise, on behalf of the Water
Administration Ministerial Corporation, rights to the use and flow and
control of water.
Clause 26 provides that the terms and conditions of the operating licence
are to be as determined by the Governor, but must include certain types of
terms and conditions specified in the clause.
Clause 27 enables the Governor to amend the operating licence.
Clause 28 provides for the duration and renewal of the operating licence.
Clause 29 enables the Minister to require the Authority to rectify a
contravention by it of the operating licence, and provides for the imposition
of a monetary penalty for such a contravention.
Clause 30 sets out a process for the cancellation of the operating licence.
Explanatory note page 4
Division 2
Licence Regulator
The Licence Regulator constituted under the Water Board (Corporatisation)
Act 1994 is given additional functions under the proposed Act.
Clause 31 outlines the functions of the Licence Regulator under the
proposed Act, in terms of auditing, monitoring and reporting to the Minister.
Clause 32 provides for the Licence Regulator to make a report to the
Minister on each operational audit prepared in relation to the Authority.
Clause 33 requires such reports to be presented to Parliament.
Division 3
Statement of financial framework
Clause 34 requires the Minister and the Treasurer to enter into arrangements
for a statement of financial framework, which is to include a statement of
financial purpose and provisions for the payment by the Authority of
dividends. tax-equivalents and guarantee fees.
Division 4
Memoranda of understanding
Clause 35 contains a definition of regulatory agencies, which include
various government departments, government agencies, and local authorities.
Clause 36 requires the Authority to enter into memoranda of understanding
with the Director-General of the Department of Health, the Water
Administration Ministerial Corporation and the Environment Protection
Authority as soon as practicable after the granting of the operating licence to
the Authority.
Clause 37 enables the Minister to direct the Authority to enter memoranda
of understanding with other regulatory agencies.
Clause 38 requires public consultation to be undertaken in relation to
proposed memoranda of understanding and proposed amendments of
memoranda of understanding.
Division 5
Reports to Parliament
Clause 39 requires the Authority to prepare reports for presentation to
Parliament on subjects and at times specified by the operating licence.
Explanatory note page 5
Part 5
Catchment areas
Division 1
Catchment areas
Clause 40 empowers the Governor to declare that an area of land is part of
the inner catchment area or the outer catchment area of the Authority.
areas Division 2
Special
Clause 41 contains definitions of expressions used in the proposed Division.
Clause 42 empowers the Governor, on the recommendation of the Minister,
to declare land to be a special area where it is necessary to do so in order to
protect water and the ecological integrity of land.
Clause 43 restricts the transfer or lease of. or other dealings with, Iand in a
area. special
Clause 44 restricts the way in which Crown land in a special area is to be
with. dealt
Clause 45 restricts the exercise by public agencies of their functions in
relation to land within a special area. This involves the requirement for notice
to be given to the Authority of the proposed exercise of such functions.
Clause 46 empowers the making of regulations regarding special areas.
Clause 47 makes provision for plans of management in connection with
special areas. involving joint action by the Authority and the National Parks
and
Ministers.
Wildlife Service and the respective
Clause 48 requires the Authority to comply with the plans of management
prepared for special areas.
Division 3
Controlled areas
Clause 49 allows the declaration of controlled areas by the Governor. A
controlled area can only cover land owned by or vested in the Authority.
Clause 50 provides for the making of regulations regarding controlled areas.
Part 6
Provisions relating to works and land
Clause 51 places ownership in the Authority of works installed by the
Authority, and gives the Authority power to deal with such works.
Explanatory note page 6
Clause 52 allows certain persons connected with the Authority to enter and
occupy land for a number of specified purposes.
Clause 53 provides for the issue of certificates of authority to such persons.
Clause 54 sets out limitations and restrictions on the powers of entry under
the proposed Part.
Clause 55 relates to compensation payable by the Authority for damage
caused by it in the exercise of functions under the proposed Part.
Clause 56 relates to compensation payable to the Authority by persons for
loss or damage caused by those persons in certain circumstances.
Clause 57 provides for the acquisition of land by the Authority.
Clause 58 allows the Minister to approve the carrying out of certain
activities in the area of operations of the Authority provided they are certified
to be required for the protection of water quality, and required in the interests
of public health or public safety, and required to be carried out urgently. Such
an approval obviates the need for approval under other legislation.
Clause 59 applies certain specified provisions of the Water Board
(Corporatisation) Act 1994 to the Authority relating to the opening of roads.
the alteration of the position of conduits, and the protection of works.
Part 7
Offences
Clause 60 creates an offence of illegally taking water or altering a meter.
Clause 61 creates an offence of discharging any substance into a work of the
Authority.
Clause 62 provides a system of penalty notices for offences under the
proposed Act and under other legislation, being offences identified under the
regulations for the purpose of the clause.
Clause 63 maintains the Authority's right to take civil proceedings against
persons who have been prosecuted for offences under the proposed Act.
Clause 64 makes it an offence to cause the commission of an offence in a
number of ways.
Clause 65 states that proceedings for offences under the proposed Act are to
be dealt with summarily before a Local Court or the Supreme Court.
Explanatory note page 7
Clause 66 provides that proceedings for an offence under the proposed Act
may be brought within 2 years after the commission of the alleged offence or
within 2 years after the alleged offence first came to the attention of any
authorised officer of the Authority.
Part 8
Miscellaneous
Clause 67 gives effect to a Schedule containing provisions for the transfer
of staff, assets, rights and liabilities of the Corporation to the Authority.
Clause 68 gives effect to a Schedule of amendments to the Water Board
(Corporatisation) Act 1994.
Clause 69 gives effect to a Schedule of amendments to other Acts.
Clause 70 gives effect to a Schedule containing savings, transitional and
other provisions.
Clause 71 creates a general regulation-making power.
Clause 72 provides for the proposed Act to be reviewed after 5 years.
Schedule 1
Constitution and procedure of Board
Schedule 1 provides for the constitution and procedure of the Board.
Schedule 2
Provisions relating to Chief Executive
Schedule 2 provides for the employment of the Chief Executive, and the
appointment of an acting Chief Executive.
Schedule 3
Transfer of staff, assets, rights and liabilities
to Authority
Schedule 3 provides for the transfer of staff. assets. rights and liabilities of
the Corporation to the Authority by way of order of the Governor.
Schedule 4
Amendment of Sydney Water Act
Schedule 4 amends the Water Board (Corporatisation) Act 1994 to insert
certain provisions consequential on the enactment of the proposed Act.
Schedule 4 [1] and [5][10] omit provisions that are to be replaced by
provisions in the proposed Act.
Explanatory note page 8
Schedule 4 [2] and [3] enable the operating licence of the Corporation to be
amended to adjust the functions of the Corporation in consequence of the
conferral of functions on the Authority.
Schedule 4 [4] allows the Minister to approve the carrying out of certain
activities in the area of operations of the Corporation provided they are
certified to be required for the protection of water quality, and required in the
of public health or public safety, and required to be carried out
urgently. Such an approval obviates the need for approval under other
legislation.
Schedule 5
Amendment of other Acts
Schedule 5 makes amendments to a number of other Acts.
Schedule 6
Savings, transitional and other provisions
Schedule 6 makes provision for regulations of a savings or transitional
nature. and makes a number of savings and transitional provisions
consequent on the enactment of the proposed Act.
Explanatory note page 9