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This is a Bill, not an Act. For current law, see the Acts databases.
PARLIAMENT OF VICTORIA
Murray-Darling Basin (Further Amendment) Act
2006
Act No.
TABLE OF PROVISIONS
Clause Page
1. Purpose 1
2. Commencement 2
3. Definitions 2
4. New section 5B inserted 2
5B. Approval of Amending Agreement 2006 2
5. New Schedule 3 inserted 3
SCHEDULE 3--Murray-Darling Basin Agreement
Amending Agreement 2006 3
ENDNOTES 20
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551115B.I1-8/8/2006 BILL LA INTRODUCTION 8/8/2006
PARLIAMENT OF VICTORIA
A BILL
to amend the Murray-Darling Basin Act 1993 to approve an
amendment to the Murray-Darling Basin Agreement to facilitate the
operation of the Murray-Darling Basin Commission's water business
on appropriate commercial principles and for other purposes.
Murray-Darling Basin (Further
Amendment) Act 2006
The Parliament of Victoria enacts as follows:
1. Purpose
The purpose of this Act is to amend the Murray-
Darling Basin Act 1993 to approve an
amendment to the Murray-Darling Basin
Agreement to facilitate the operation of the
5
Murray-Darling Basin Commission's water
business on appropriate commercial principles.
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2. Commencement
This Act comes into operation on a day to be
proclaimed.
3. Definitions
See: In section 3(1) of the Murray-Darling Basin Act
5 Act No.
1993--
39/1993
as amended
(a) at the end of paragraph (b) of the definition
by Act Nos
74//2000,
of "Agreement" insert--
21/2003 and
108/2004.
"and
LawToday:
www.dms.
(c) amended by the Amending Agreement
10 dpc.vic.
2006;";
gov.au
(b) insert the following definition--
' "Amending Agreement 2006" means the
agreement a copy of which is set out in
Schedule 3;'.
15
4. New section 5B inserted
After section 5A of the Murray-Darling Basin
Act 1993 insert--
"5B. Approval of Amending Agreement 2006
The Amending Agreement 2006 is
20
approved.".
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5. New Schedule 3 inserted
After Schedule 2 to the Murray-Darling Basin
Act 1993 insert--
'SCHEDULE 3
MURRAY-DARLING BASIN AGREEMENT AMENDING
5
AGREEMENT 2006
AGREEMENT made this fourteenth day of July 2006 between
THE COMMONWEALTH OF AUSTRALIA (the "Commonwealth"),
THE STATE OF NEW SOUTH WALES ("New South Wales"),
10 THE STATE OF VICTORIA ("Victoria"),
THE STATE OF QUEENSLAND ("Queensland"),
THE STATE OF SOUTH AUSTRALIA ("South Australia"), and
THE AUSTRALIAN CAPITAL TERRITORY ("Australian Capital
Territory").
15 WHEREAS on 24 June 1992, the Commonwealth, New South Wales,
Victoria and South Australia entered into the Murray-Darling Basin
Agreement which:
(a) was approved by the Parliament of the Commonwealth and the
Parliaments of the said States; and
20 (b) has subsequently been deemed to be amended from time to time
under clause 50 or 134 of that Murray-Darling Basin Agreement;
and
(c) was amended by the Murray-Darling Basin Amending Agreement
made on 3 June 2002,
25 (together called the "Principal Agreement"):
AND WHEREAS under the provisions of clause 134 of the Principal
Agreement, Queensland became a party to the Principal Agreement on the
terms set out in Schedule D to the Principal Agreement:
AND WHEREAS under the provisions of clause 134 of the Principal
30 Agreement, that Agreement was amended in May 2006 by the decision of the
Murray-Darling Basin Ministerial Council to consent to the Australian
Capital Territory becoming a party to the Principal Agreement;
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AND WHEREAS the parties wish to further amend the Principal Agreement
to facilitate the operation of the Murray-Darling Basin Commission's water
business on appropriate commercial principles and for other reasons;
AND WHEREAS the Murray-Darling Basin Ministerial Council has
5 approved the provisions set out below on 23 July 2003 and 30 September
2005:
THE PARTIES AGREE AS FOLLOWS:
1. INTERPRETATION
In this agreement, a reference to a clause, sub-clause,
10 paragraph, sub-paragraph, Schedule or Appendix is a
reference to a clause, sub-clause, paragraph, sub-paragraph,
Schedule or Appendix of or to the Principal Agreement,
respectively.
2. CLAUSE 2
15 (1) Omit "67(1)(a)" from the definition of "annual estimates."
Insert instead "68(1)(a)".
(2) Insert in alphabetical order:
" "Commission's water business" means those activities of
the Commission relating to:
20 (a) the construction, operation, maintenance and
renewal of works on, adjacent to, or connected
to the upper River Murray or the River Murray
in South Australia; and
(b) the execution of the provisions of this
25 Agreement concerning sharing water between
State Contracting Governments; and
(c) the provision of other services relating to water,
to State Contracting Governments and other
persons;
30 "financial year" means the twelve months beginning on
1 July;".
(3) Omit all the words after "out" in the definition of
"Commonwealth auditor". Insert instead "an audit referred
to in sub-paragraph 78(1)(a)(i)".
35 (4) After the word "programs" in the definition of "measures"
insert "(including any activities for the purpose of
conserving or enhancing the environment) but does not
include any activities of the Commission's water business".
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(5) Omit all the words after "out" in the definition of "State
auditor". Insert instead "an audit referred to in paragraph
78(1)(b)".
(6) Omit the definition of "supplementary estimates".
5 3. CLAUSE 49
Omit clause 49. Insert instead:
"49(1) Works or measures from time to time included in a
Schedule to this Agreement or authorised pursuant to
clause 50 must be constructed, operated, maintained,
10 renewed or implemented (as the case may require):
(a) in accordance with the provisions of this
Agreement and any Acts approving the same;
and
(b) by the Contracting Government from time to
15 time nominated by the Ministerial Council for
the purpose.
(2) A Contracting Government described as a
"Nominated Government" in Schedule A with respect
to a work is deemed to have been nominated by the
20 Ministerial Council under paragraph 49(1)(b) to
construct, operate, maintain and renew that work,
until the Ministerial Council nominates another
Contracting Government for one or more of those
purposes, with respect to that work.".
25 4. CLAUSE 50
(1) After "$2,000,000" in sub-clause (2) insert ", or such other
amount determined by the Ministerial Council from time to
time".
(2) After "$2,000,000" in sub-clause (3) insert ", or such other
30 amount determined by the Ministerial Council from time to
time".
5. CLAUSE 51
After "$1,000,000" in sub-clause (2) insert ", or such other
amount determined by the Ministerial Council from time to
35 time,".
6. CLAUSE 52
After "$2,000,000" in sub-clause (5) insert ", or such other
amount determined by the Ministerial Council from time to
time".
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7. CLAUSE 54
After "$2,000,000" in sub-clause (1) insert ", or such other
amount determined by the Ministerial Council from time to
time".
5 8. CLAUSE 55
(1) Omit the words "construction or maintenance" from
paragraph (3)(a). Insert instead:
":
(i) investigations, construction and administration; or
10 (ii) major or cyclic maintenance; or
(iii) operation and maintenance,".
(2) After "as" in sub-clause (4) insert "operation and".
9. CLAUSE 59
Omit "this or the former Agreement". Insert instead
15 "paragraph 49(1)(b)".
10. CLAUSE 62
Omit the words "which constructed a work under this or the
former Agreement". Insert instead "nominated to operate a
work pursuant to paragraph 49(1)(b)".
20 11. CLAUSE 65
Omit clause 65. Insert instead:
"Definitions
65. In this Part:
"annuity contribution" has the meaning set out in
25 sub-clause 67(2);
"financial accommodation" means a financial
benefit or assistance to obtain a financial
benefit arising from or as a result of:
(a) a loan;
30 (b) issuing, endorsing or otherwise dealing in
promissory notes;
(c) drawing, accepting, endorsing or
otherwise dealing in bills of exchange;
(d) issuing, purchasing or otherwise dealing
35 in securities;
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(e) granting or taking a lease of any real or
personal property for financing but not
for operating purposes;
(f) any other arrangement approved by the
5 Ministerial Council;
"investigations, construction and administration
costs" means the costs of:
(a) investigating and constructing works set
out in Schedule A; and
10 (b) investigating and constructing any other
works and implementing measures
authorised under this Agreement; and
(c) studies, programs, surveys and
investigations carried out pursuant to
15 clause 39; and
(d) establishing systems referred to in
clause 41; and
(e) systems established pursuant to a request
made under paragraph 43(b); and
20 (f) special action taken under sub-clause
48(5) which the Ministerial Council has
determined to be investigations,
construction and administration costs;
and
25 (g) any payment by the Commission in
respect of the construction of works
under sub-clause 51(1); and
(h) complying with the direction given under
sub-clause 54(2); and
30 (i) dismantling works referred to in sub-
clause 64(2); and
(j) any payment by the Commission under
paragraph 131(a); and
(k) administrative and other expenses of the
35 Commission, the Ministerial Council and
the Community Advisory Committee
constituted under sub-clause 14(1);
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"major or cyclic maintenance" has a meaning
determined by reference to the guidelines
established by the Commission under sub-
clause 67(4);
5 "operation and maintenance costs" means the costs
of:
(a) operating and maintaining works set out
in Schedule A; and
(b) operating and maintaining any other
10 works authorised under this Agreement;
and
(c) operating and maintaining systems
referred to in clause 41; and
(d) operating and maintaining systems
15 established pursuant to a request made
under paragraph 43(b); and
(e) special action taken under sub-clause
48(5) which the Ministerial Council has
determined to be operation and
20 maintenance costs; and
(f) any payment made by the Commission in
respect of the operation or maintenance
of works under sub-clause 51(1); and
(g) such dredging or snagging carried out
25 under clause 61 which the Commission
has resolved to meet; and
(h) any payment made by the Commission
under paragraph 131(b);
"security" includes inscribed stock and debenture,
30 bond, debenture stock, note or any other
document creating, evidencing or
acknowledging indebtedness in respect of
financial accommodation, whether constituting
a charge on property of the Commission or
35 not.".
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12. CLAUSE 66
Omit clause 66. Insert instead:
"Apportionment of Costs
66. (1) The Ministerial Council, after considering any
5 recommendation of the Commission, must determine:
(a) what contribution, if any, is to be made by any
State or Territory becoming a party pursuant to
clause 134; and
(b) whether some or all of that contribution is to be
10 made as a lump sum or in a comparable manner
to a manner provided for in sub-clause 66(3),
(4) or 67(2).
(2) Subject to sub-clause 66(1), the Ministerial Council:
(a) may, on the recommendation of the
15 Commission, from time to time determine
which proportion of the services provided by
the Commission's water business is attributable
to each State Contracting Government; and
(b) must, at intervals not exceeding five years,
20 reconsider the proportions determined under
paragraph 66(2)(a); and
(c) may, on the recommendation of the
Commission, alter the proportions determined
under paragraph 66(2)(a).
25 (3) Unless the Ministerial Council decides otherwise and
subject to any decision of the Ministerial Council
under sub-clause 66(1), a State Contracting
Government must contribute to operation and
maintenance costs in the relevant proportion
30 determined under sub-clause 66(2).
(4) Unless the Ministerial Council decides otherwise and
subject to any decision by the Ministerial Council
under sub-clause 66(1) and the provisions of
clause 67:
35 (a) the Commonwealth Government must
contribute one-quarter of all investigations,
construction and administration costs after first
deducting any contribution to those costs made
by any State or Territory:
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(i) becoming a party pursuant to clause 134;
or
(ii) pursuant to any understanding reached
between that State or Territory and the
5 Contracting Governments; and
(b) the State Contracting Governments must
together contribute three-quarters of all
investigations, construction and administration
costs:
10 (i) relating to the Commission's water
business, in the relevant proportions
determined under sub-clause 66(2); and
(ii) relating to measures implemented under
this Agreement, in equal shares.
15 (5) The Ministerial Council, after considering any
recommendation by the Commission, must determine
whether the costs of any special action taken under
sub-clause 48(5) are investigations, construction and
administration costs or operation and maintenance
20 costs.".
13. CLAUSE 67
Omit clause 67. Insert instead:
"Borrowings and Annuity Contributions
67. (1) The Commission may, with the prior approval of the
25 Ministerial Council, obtain financial accommodation
with respect to any:
(a) investigations, construction and administration
costs; and
(b) major or cyclic maintenance costs,
30 incurred, or which the Commission proposes to incur,
for the purposes of the Commission's water business.
(2) The Ministerial Council, on the recommendation of
the Commission, may from time to time determine
that a Contracting Government must make an annual
35 annuity contribution in respect of either or both of:
(a) investigations, construction and administration
costs; and
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(b) major or cyclic maintenance costs,
which the Contracting Government might otherwise
be required to contribute under sub-clause 66(1), (3),
paragraph 66(4)(a) or sub-paragraph 66(4)(b)(i), in
5 any future year.
(3) In fixing any annuity contribution under sub-clause
67(2), the Ministerial Council must have regard to the
Commission's estimate of costs which will be incurred
during the next ensuing 30 years (or such other period
10 as the Commission determines) in relation to either or
both of:
(a) the construction or renewal; and
(b) major or cyclic maintenance,
of works constructed, operated, maintained or
15 renewed for the purposes of the Commission's water
business (as the case requires) including any interest
or other sums receivable or payable in respect of any
income received, or any financial accommodation
obtained, by the Commission from time to time in
20 relation to those works.
(4) For the purposes of this Part, the Commission must
establish guidelines for determining what is, and what
is not, major or cyclic maintenance.".
14. CLAUSE 68
25 Omit clause 68. Insert instead:
"Annual and forward estimates
68. (1) The Commission must prepare:
(a) detailed annual estimates of its known and
anticipated expenditure for the next financial
30 year; and
(b) forward estimates of its known and anticipated
expenditure for the two successive financial
years following the next financial year.
(2) Annual and forward estimates must:
35 (a) be in such form as may from time to time be
agreed between the Commission and the
Ministerial Council; and
(b) show the estimated amount to be contributed by
each Contracting Government; and
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(c) be sent to each Contracting Government before
the end of March in each year; and
(d) be approved by the Ministerial Council,
and may be revised from time to time with the
5 approval of the Ministerial Council.".
15. CLAUSE 69
Omit clause 69. Insert instead:
"69. Each Contracting Government must pay any amount
payable by it under clause 66 or 67 as and when
10 required by the Commission.".
16. CLAUSE 72
(1) Omit sub-clause (1). Insert instead:
"(1) Subject to sub-clause 72(3), the Commission must
apply money paid by the Contracting Governments in
15 accordance with the relevant estimates referred to in
paragraph 68(1)(a).".
(2) In sub-clause (2):
(a) omit "annual or supplementary" from paragraph (a).
Insert after "estimates", "prepared or revised under
20 paragraph 68(1)(a)";
(b) omit "the annual or supplementary" from
paragraph (b). Insert instead "those";
(c) after "financial year;" in paragraph (b) insert "and".
(3) Omit sub-clause (3). Instead insert:
25 "(3) The Commission may accumulate:
(a) any sums received under sub-clause 66(3)
or (4) for the purposes of the Commission's
water business, but not expended in any year;
and
30 (b) any annuity contributions received under
clause 67,
for use in subsequent years.".
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(4) Omit sub-clause (4). Instead insert:
"(4) Any sum referred to in paragraph 72(3) and any
interest thereon must:
(a) in the case of sums received under sub-clause
5 66(3), only be expended on operation and
maintenance costs; and
(b) in the case of sums received under sub-clause
66(4), only be expended on investigations,
construction and administration costs; and
10 (c) in the case of annuity contributions received
under clause 67:
(i) from a State Contracting Government,
only be expended on either:
(A) investigations, construction and
15 administration costs; or
(B) major or cyclic maintenance costs,
of the Commission's water business, as
the case requires; or
(ii) from the Commonwealth, only be
20 expended on investigations, construction
and administration costs of the
Commission's water business.".
17.CLAUSE 73
In sub-clause (1):
25 (a) omit "annual and supplementary"; and
(b) insert after "estimates", "referred to in paragraph
68(1)(a),".
18. CLAUSE 75
(1) Omit sub-clause (1). Insert instead:
30 "(1) The unexpended balance of moneys paid to the
Commission by Contracting Governments for
implementing measures in any financial year:
(a) shall, with the approval of the Ministerial
Council, be available for expenditure in a
35 subsequent financial year upon any item in the
annual estimates approved by the Ministerial
Council for the relevant year; or
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(b) may be used to reduce the amounts which
would otherwise be payable by each
Contracting Government under clause 69 in that
subsequent financial year.".
5 (2) In sub-clause (2):
(a) omit "any". Insert instead "the".
(b) after "balances" insert "of moneys referred to in sub-
clause 75(1)".
(3) Omit sub-clause (3). Insert instead:
10 "(3) Any unexpended balance referred to in sub-clause
75(1) must only be expended on implementing
measures under this agreement.".
19. CLAUSE 77
Omit sub-clause (2). Insert instead:
15 "(2) The Commission must determine how proceeds from
the disposal of surplus assets are:
(a) to be paid to the Commission and credited
against future capital and renewal contributions
by; or
20 (b) to be distributed among,
the Contracting Governments, having regard to the
contributions made by each Contracting Government
to the acquisition of those assets.".
20. CLAUSE 78
25 (1) Omit paragraphs (a) and (b) from sub-clause (1).
Insert instead:
"(a) must be audited annually by:
(i) an auditor appointed by the Ministerial Council;
or
30 (ii) if no appointment is made under sub-paragraph
78(1)(a)(i), the Commonwealth auditor; and
(b) may be audited at any reasonable time by an auditor
appointed by a Contracting Government.".
(2) Omit sub-clause (2). Insert instead:
35 "(2) An auditor referred to in paragraph 78(1)(a) must
promptly inform each Contracting Government of any
significant irregularity revealed by an audit.".
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(3) Omit sub-clause (4). Insert instead:
"(3) The Commission must, at all reasonable times, make
all its relevant accounts and records available to an
auditor acting under sub-clause 78(1) or any person
5 acting on behalf of that auditor.".
(4) Renumber sub-clauses (5) and (6) as (4) and (5),
respectively.
(5) (a) Renumber sub-clause (7) as sub-clause (6).
(b) Omit "sub-clause 78(1)" from sub-clause (6).
10 Insert instead "paragraph 78(1)(a)".
21. CLAUSE 80
Omit clause 80. Insert instead:
"80. The Commission may invest money received by it:
(a) in accordance with any guidelines established
15 by the Ministerial Council; or
(b) in such manner as may be directed by the
Ministerial Council,
but not otherwise.".
22. CLAUSE 81
20 Omit sub-clause (3). Insert instead:
"(3) Money paid to the Commission under this clause must
either:
(a) be expended on investigations, construction and
administration costs; or
25 (b) applied in accordance with sub-clause 75(1)."
23. CLAUSE 82
Omit sub-clause (4). Insert instead:
"(4) Money paid to the Commission under this clause must
either:
30 (a) be expended on investigations, construction and
administration costs; or
(b) applied in accordance with sub-clause 75(1).".
24. SCHEDULE C, CLAUSE 22
Omit "7(3)" from sub-clause (2). Insert instead "16(3)".
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25. SCHEDULE C, APPENDIX 2
After Appendix 1 to Schedule C insert:
"APPENDIX 2
AUTHORISED JOINT WORKS AND MEASURES
Description of Location Nominated Status
works Government
Northern Victoria Former
Barr Creek
Victoria Salinity and
Drainage Diversion
Scheme Saline water approximately Drainage
diversion from Barr 20 km north of Work
Creek with disposal the township of
to the Tutchewop Kerang
Lakes
Southwest New New South Former
Buronga Salt
South Wales on Wales Salinity and
Interception Scheme
(part) Groundwater the River Drainage
pumping with Murray Work
disposal to between
Mourquong basin Mildura Weir
and Mourquong
Southwest New New South Former
Mallee Cliffs Salt
South Wales on Wales Salinity and
Interception Scheme
Groundwater the River Drainage
pumping with Murray Work
disposal to approximately
evaporation basin 30 km east of
adjacent to Mallee Mildura
Cliffs National Park opposite
Lambert Island
in Victoria
Northwest Victoria Former
Mildura-Merbein
Victoria on the Salinity and
Salt Interception
Southern side Drainage
Scheme (part)
Groundwater of the River Work
pumping with Murray
disposal to Wargan between
evaporation basins Mildura and
Merbein
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Description of Location Nominated Status
works Government
On both sides South Former
Rufus River
of Rufus River Australia Salinity and
Groundwater
between the Drainage
Interception Scheme
Groundwater outlet from Work
pumping with Lake Victoria
disposal to and the River
evaporation basins on Murray
the western side of
lake Victoria
Southern side South Former
Waikerie Salt
of the River Australia Salinity and
Interception Scheme
Groundwater Murray from Drainage
pumping with Holder Bend Work
disposal to Stockyard (River distance
Plain evaporation 392 km) to the
basin Toolunka
Reach (River
distance
371 km)
Both sides of South Former
Woolpunda Salt
the River Australia Salinity and
Interception Scheme
Groundwater Murray from Drainage
pumping with Overland Work
disposal to Stockyard Corner to
Plain evaporation Holder Bend in
basin South Australia
Along Pyramid Victoria Basin Salinity
Pyramid Creek Salt
Creek for Management
Interception Scheme
Groundwater 12 km from Strategy Work
pumping with Flannery's
disposal to a salt Bridge to the
harvesting pond Box Creek
complex Regulator
".
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26. SCHEDULE D, CLAUSE 3
To avoid doubt and to allow the Parties to comply with sub-
clause 134(6) of the Principal Agreement:
(1) After sub-clause 3(1) insert:
5 "(1A) Sub-clauses 38(1) and 38(3) of the Agreement
only apply to the State of Queensland in respect
of an act, omission or loss incurred, in relation
to the bona fide execution of powers--
(a) in or related to the State of Queensland;
10 or
(b) under a provision of the Agreement as it
applies to the State of Queensland.".
(2) After sub-clause 3(4) insert:
"(5) Nothing in the Agreement requires the State of
15 Queensland--
(a) to contribute to the costs of, or associated
with, remedying any actual or anticipated
damage referred to in paragraph 51(1)(c)
of the Agreement; or
20 (b) to meet any compensation for damage
paid under clause 83 of the Agreement,
except where the State of Queensland has
contributed to the construction, maintenance or
operation expenses of the works to which the
25 costs or compensation relate.".
EXECUTED as an agreement
SIGNED by The Honourable
John Winston Howard MP
Prime Minister of the Commonwealth
John Howard
of Australia in the presence of--
Ron Perry
SIGNED by The Honourable
Morris Iemma MP Premier of
New South Wales in the presence of--
Morris Iemma
Ron Perry
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SIGNED by The Honourable
Steve Bracks MP Premier of
Victoria in the presence of--
Steve Bracks
Ron Perry
SIGNED by The Honourable
Peter Beattie MP Premier of
Queensland in the presence of--
Peter Beattie
Ron Perry
SIGNED by The Honourable
Mike Rann MP Premier of
South Australia in the presence of--
Mike Rann
Ron Perry
SIGNED by Jon Stanhope MLA
Chief Minister of the Australian Capital
Territory in the presence of--
Jon Stanhope
Ron Perry
'.
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Endnotes
Act No.
ENDNOTES
By Authority. Government Printer for the State of Victoria.
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