Northern Territory Explanatory Statements

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PROFESSIONAL STANDARDS AMENDMENT (MUTUAL RECOGNITION) BILL 2007

5


Explanatory Statement 30-11-07

2007

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

MINISTER FOR JUSTICE AND ATTORNEY-GENERAL

PROFESSIONAL STANDARDS Amendment
(MUTUAL RECOGNITION) Bill 2007
Serial No 125


EXPLANATORY STATEMENT


GENERAL OUTLINE

The Professional Standards Amendment (Mutual Recognition) Bill 2007 amends the Professional Standards Act (“the Principal Act”) with respect to the mutual recognition of Northern Territory and interstate schemes for the limitation of occupational liability.

NOTES ON CLAUSES

Part 1 – Preliminary matters

Clause 1. Short Title

This is a formal clause which provides for the citation of the Bill.
The Bill when passed may be cited as the Professional Standards Amendment (Mutual Recognition) Act 2007.

Clause 2. Commencement

The Act will commence on the date fixed by the Administrator by notice in the Northern Territory Government Gazette.

Clause 3. Act amended

The Act amends the Principal Act.

Clause 4. Amendment of section 4 (Interpretation)

Clause 4:

· inserts into section 4(1) of the Principal Act new definitions for “another jurisdiction”, “appropriate Council”, “corresponding law”, “interstate scheme” and “this jurisdiction”; and

· amends the existing definition of “scheme” to include an interstate scheme.

Clause 5. Amendment of section 7 (Preparation and approval of schemes)

Section 7 of the Principal Act provides that an occupational liability scheme (“a scheme”) may be prepared by an occupational association or by the Professional Standards Council (“the Council”). A scheme must then be approved by the Council. Clause 5 inserts a new section 7(4) so as to provide that a scheme may indicate an intention to operate as a scheme of the Northern Territory only, or as a scheme of both the Northern Territory and another jurisdiction.

Clause 6. Amendment of section 8 (Public notification of schemes)

Section 8 of the Principal Act provides that, before it is approved, a scheme must be publicised by means of a notice in the daily newspaper circulating throughout the Northern Territory. Clause 6 inserts a new section 8(2) so as to require a scheme that is to operate as a scheme of some other jurisdiction to be further publicised in accordance with the requirements of the corresponding law of that other jurisdiction.

Clause 7. Amendment of section 10 (Consideration of comments, submissions and other matters)

Section 10 of the Principal Act requires the Council to take certain matters into consideration before approving a scheme. Clause 7 inserts a new section 10(2) so as to provide that, in the case of a scheme that is intended to operate as a scheme of another jurisdiction, the Council must also consider those matters that the appropriate Council for the other jurisdiction would have to consider and must consider all matters in the context of each of the jurisdictions concerned.

Clause 8. Amendment of section 12 (Submission of schemes to Minister)

Section 12 of the Principal Act provides for the submission of schemes to the Minister. Clause 8 inserts a new section 12(2) so as to enable a scheme that indicates an intention to operate as a scheme of another jurisdiction to be submitted by the Council to the Minister administering the corresponding law of the other jurisdiction (so allowing the scheme to be gazetted in that jurisdiction in accordance with that jurisdiction’s version of section 13).

Clause 9. Amendment of section 13 (Gazettal, tabling and disallowance)

Section 13 of the Principal Act provides for the Gazettal of schemes submitted to the Minister by the Council. Clause 9 amends section 13(1) so as to provide for the Gazettal in the Northern Territory of an interstate scheme that has been submitted to the Minister under that jurisdiction’s version of section 12. Clause 9 also inserts a new section 13(3) so as to extend section 13 to amendments to interstate schemes.

Clause 10. Amendment of section 14 (Commencement of schemes)

Section 14 of the Principal Act establishes the date of commencement of a scheme that has been gazetted. Clause 10 amends section 14(2) so as to provide that a scheme’s commencement can be postponed not only by the Supreme Court of the Northern Territory (under section 15) but also by the Supreme Court of another jurisdiction by an order made under that jurisdiction’s version of section 15. Clause 10 also inserts a new section 14(4) so as to extend section 14 to amendments to interstate schemes.

Clause 11. Amendment of section 15 (Challenges to schemes)

Section 15 of the Principal Act enables a scheme’s validity to be challenged in the Supreme Court. Clause 11 amends section 15(1) so as to enable a scheme that operates as a scheme of some other jurisdiction to be challenged by persons affected by the scheme as it operates in that jurisdiction. Clause 11 also inserts a new section 15(4) so as to provide that an interstate scheme may not be declared void under section 15 just because it fails to comply with the requirements of Division 2 (Contents of schemes) of Part 2, but may be declared void if it fails to comply with the equivalent provisions of the corresponding law of the jurisdiction in which it was prepared. Clause 11 also inserts a new section 15(5) so as to preserve other rights of challenge and a new section 15(6) so as to extend section 15 to amendments to interstate schemes.

Clause 12. Amendment of section 16 (Review of schemes)

Section 16 of the Principal Act provides for the review of schemes. Clause 12 amends section 16(3) so as to enable an interstate scheme to be reviewed for the purpose of determining whether its operation should be terminated in relation to Northern Territory.

Clause 13. Amendment of section 17 (Amendment and revocation of schemes)

Section 17 of the Principal Act provides for the amendment and revocation of schemes. Clause 13 amends section 17(5) so as to extend sections 7 to 15 (with the necessary changes) to the amendment of a scheme by an instrument under section 17. Clause 13 also inserts a new section 17(6) extending sections 7 to 14, other than section 12(2), to the revocation of a scheme by an instrument under section 17. Clause 13 also inserts a new section 17(7) which excludes interstate schemes from the operation of section 17.

Clause 14. New sections 17A and 17B

Clause 14 inserts new sections 17A and 17B into the Principal Act. Proposed section 17A requires the Minister to notify his or her interstate counterparts if he or she revokes a scheme, and to Gazette notice of any revocation of an interstate scheme of which he or she receives notice. Proposed section 17B provides for the termination of the operation of interstate schemes in relation to the Northern Territory.
Its procedures parallel the procedures established by section 17 for the amendment and revocation of schemes.

Clause 15. Amendment of section 33 (Duration of scheme)

Section 33 of the Principal Act provides for the duration of schemes. Clause 15 substitutes section 33(1) and adds a new section 33(1A) to clarify the period for which a scheme prepared in the Northern Territory remains in force. Clause 15 also adds a new section 33(1B) specifying the period for which an interstate scheme remains in force. Clause 15 also adds a new section 33(5) dealing with the period a scheme is to remain in force where that period has been determined by the Council under subsection (1) before the commencement of the Amendment Act.
Clause 16. Amendment of section 45 (Functions of Council)

Section 45 of the Principal Act sets out the functions of the Council. Clause 16 amends section 45 so as to allow the Council to give advice to the Minister in relation to interstate schemes that are intended to operate as schemes of the Northern Territory.

Clause 17. New section 45A

Clause 17 adds a new section 45A into the Principal Act.
The proposed section ensures that the Council can exercise functions conferred or imposed on it by the laws of other jurisdictions, and that the Council can act in conjunction with its interstate counterparts.

 

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