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MELBOURNE CRICKET GROUND BILL 2008 Explanatory Memoranda

MELBOURNE CRICKET GROUND BILL 2008

   Melbourne Cricket Ground Bill 2008

                         Introduction Print

               EXPLANATORY MEMORANDUM


                                   General
The purpose of the Bill is to re-enact and further provide for the law relating
to the Melbourne Cricket Ground (MCG) in order to create a simpler
legislative framework for the MCG. The Bill repeals the existing Acts
relating to the MCG. The Bill includes a preamble that summarises the
background to the Bill including key Orders in Council, Crown grants,
reservations and legislation made and enacted in relation to the MCG since
1861.

                                Clause Notes
Clause 1    sets out the purpose of the Bill which is to re-enact and further
            provide for the law relating to the Melbourne Cricket Ground
            (MCG) and repeal the existing Acts relating to the MCG: the
            Melbourne Cricket Ground Act 1933, the Melbourne Cricket
            Ground Act 1951, the Melbourne Cricket Ground (Trustees)
            Act 1957, the Melbourne Cricket Ground Act 1983, the
            Melbourne Cricket Ground Act 1984, the Melbourne Cricket
            Ground (Guarantees) Act 1984 and the Melbourne Cricket
            Ground Trust Act 1989. A further purpose is to make
            consequential amendments to various other Acts.

Clause 2    provides for the commencement of the Bill on the day after the
            day it receives the Royal Assent.

Clause 3    provides definitions for the terms chairperson, financial
            accommodation, financial arrangement, Ground, Melbourne
            Cricket Club, member, specified Minister and Trust.

Clause 4    establishes the Melbourne Cricket Ground Trust and provides
            that the Trust is a body corporate with perpetual succession; has a
            common seal; may sue or be sued in its corporate name; is
            capable of acquiring, holding and disposing of real and personal
            property; and is capable of doing or suffering anything which by
            law bodies corporate may do or suffer.


561296                                 1      BILL LA INTRODUCTION 2/12/2008

 


 

Clause 5 provides that the Trust is deemed to be the grantee of the Ground. The clause also deems the effect of Crown grant Volume 5925 Folio 1184828 to be altered to give effect to the new Act. The Ground is deemed to continue to be reserved under the Crown Land (Reserves) Act 1978 for the public for cricket and other uses that the Trust thinks are not inconsistent with its use for cricket. Clause 6 specifies the Trust's powers and functions. The functions of the Trust are: to manage, control and make improvements to the Ground at the Trust's discretion; to carry out any other function given to the Trust by or under any other Act; and to provide advice to the Minister when requested in relation to the construction and management of sporting facilities or the management of major sporting events. Subclause (2) provides that the Trust has power to do all things necessary for carrying out its functions. Subclause (3) articulates a number of commercial activities that the Trust may engage in with the approval of the Treasurer for the purpose of carrying out its functions. Clause 7 provides that the Trust consists of a chairperson appointed by the Governor in Council and between 6 and 8 members appointed by the Governor in Council who have experience in sports, sports administration, business, financial or community affairs. Clause 8 provides that a member of the Trust may be appointed for a period not exceeding 5 years, may be reappointed, is eligible for fees and allowances as fixed by the Governor in Council and is subject to terms and conditions specified in the instrument of appointment. Clause 9 states that a member may resign by giving notice to the Governor in Council. Subclause (2) specifies circumstances in which the Governor in Council may remove a member. Under subclause (3) if a member of the Trust resigns or is removed the Governor in Council may appoint another member. Clause 10 provides that an act or decision of the Trust is not invalid merely because of a defect or irregularity in, or in connection with, the appointment of a member, or a vacancy in the membership of the Trust. 2

 


 

Clause 11 requires that a member who has an interest in a matter being considered or about to be considered by the Trust must declare the nature of the interest at the meeting as soon as practicable after becoming aware of the relevant facts. Subclause (2) requires the person presiding at a meeting at which a declaration of an interest is made to ensure that the declaration is recorded in the minutes. Subclause (3) states that if a declaration is made under subclause (1) the person must not be present when the matter is discussed, unless the Board directs otherwise; the member cannot vote on the matter and if the member does vote on the matter the vote must be disallowed. Clause 12 requires the chairperson to preside at a meeting of the Trust at which the chairperson is present. If the chairperson is absent, the members present at the meeting must elect one of those members to preside at the meeting. Subclause (3) provides that a quorum is a majority of members at any time. Subclause (4) provides that a question arising at a meeting must be determined by a majority vote and subclause (5) specifies that the person presiding at a meeting has a deliberative vote and, in the event of a tied vote on any question, a second or casting vote. Subclause (6) enables the Trust to permit members to participate in a meeting by electronic or other means of communication. Subclause (7) provides that subject to this Act, the Trust may regulate its own proceedings. Clause 13 enables the Trust to employ those persons that are necessary for the performance of its functions. Clause 14 provides that the Minister, after consultation with the Treasurer, may give a written direction to the Trust on the performance, discharge or exercise of its functions, duties or powers. It also requires the Trust to comply with a direction given by the Minister and give the Minister any information the Minister requires to determine whether the Trust has complied with a direction. Clause 15 enables the Trust by instrument under its common seal to delegate any of its functions, powers and duties, except for the power of delegation, to a member of the Trust. Clause 16 provides that the Trust, with the approval of the Minister, may grant leases for up to 99 years and licences for up to 50 years in relation to the whole or part of the Ground for purposes that are consistent with the reservation of the land. This provision applies despite anything to the contrary in any other Act or law. 3

 


 

Clause 17 enables the Trust to call for tenders for the management of the whole or part of the Ground and specifies requirements for the consideration of such tenders. Clause 18 provides that the Trust may appoint the Melbourne Cricket Club (MCC) as the Ground manager for whole or a part of the Ground when the MCC is the lessee of the whole of the Ground. The Trust can do this without calling for tenders. While the MCC is the manager of the whole Ground the Trust must not engage any other person to manage the whole or any part of the Ground. Clause 19 entitles the MCC, when it is the manager of the whole Ground, to receive and retain all entrance fees and charges and all revenue and income received in the course of its management of the Ground. Clause 20 provides that the Trust, with the approval of the Minister, may delegate any part of its functions, powers and duties, except for the power of delegation, to the MCC. If a function or power that relates to the management, control, improvement or use of the Ground is delegated to the MCC, the MCC must implement any policy made by the Trust in relation to that function or power. Clause 21 provides that the MCC, with the approval of the Trust, may delegate to any person any function or power delegated to it except for the power of delegation. If the function or power relates to the management, control, improvement or use of the Ground the delegate must implement any policy made by the Trust in relation to that function or power. Subclause (3) provides that a policy must not be inconsistent with any agreement appointing the MCC as manager of the Ground or any lease of the whole Ground to the MCC. Clause 22 provides that the Trust, with the approval of the Treasurer, may obtain financial accommodation and be party to financial arrangements. Subclause (2) provides that where it does so the Treasurer may execute a guarantee, in favour of any person, guaranteeing the repayment of any money payable. Under subclause (3) such a guarantee must be in the form and subject to the terms and conditions determined by the Treasurer. Subclause (4) provides that a sum required to be paid by the Treasurer to fulfill a guarantee must be paid out of the Consolidated Fund and subclause (5) specifies that a sum received in respect of a payment by the Treasurer under a guarantee must be paid into the Consolidated Fund. 4

 


 

Clause 23 states that if the MCC obtains financial accommodation or enters into and performs financial arrangements, the Treasurer may execute a guarantee, in favour of any person, guaranteeing the repayment of any money payable. Under subclause (2) such a guarantee must be in the form and subject to the terms and conditions determined by the Treasurer. Subclause (3) provides that the terms and conditions may include a requirement that the holder of a guarantee hold securities as required by the Treasurer for repayment of the financial accommodation or financial arrangements. There may also be a condition that the guarantee is not enforceable unless the holder's rights and remedies under all securities have been exercised to the Treasurer's satisfaction. Subclause (4) provides that a sum required to be paid by the Treasurer to fulfill a guarantee must be paid out of the Consolidated Fund and subclause (5) specifies that a sum received in respect of a payment by the Treasurer under a guarantee must be paid into the Consolidated Fund. Subclause (6) provides that the Treasurer must not execute a guarantee if the liability it would create when added to existing guarantees would in total exceed the sum as may be determined by the Treasurer from time to time. Clause 24 prescribes that the Trust must prepare a business plan for each year. Subclause (2) states that while the MCC is the Ground manager it must prepare the business plan on behalf of the Trust in accordance with the terms and conditions of its appointment and must submit the plan to the Trust for approval. Subclause (3) requires the Trust to give a copy of the plan to each specified Minister (the Minister, the Minister administering the Sport and Recreation Act 1972 and the Treasurer) by a date determined by the Minister. Subclause (4) provides that the business plan must be in the form approved by each specified Minister and must include a statement of corporate intent, financial statements of the Trust and any other matter that a Minister directs. Subclause (5) provides that the Trust must consider any comment on the plan made by a Minister within 2 months after the plan was submitted to the Minister. Under subclause (6) if a specified Minister has made a comment on the plan the Trust must consult with the Minister, make any agreed changes to the plan and deliver the settled plan to each Minister. Subclause (7) provides that the plan must not be published or made available without the prior approval of each specified Minister. 5

 


 

Clause 25 requires the Trust to submit a report about the preceding year to each specified Minister within 3 months of the end of its financial year. The annual report must contain a report of the operations of the Trust during the financial year and financial statements for the financial year. Clause 26 provides that a person, in the course of a trade or business, must not use the name "Melbourne Cricket Ground" or the initials "MCG" as the name or part of the name of another place, unless authorized by the Trust. A penalty of 100 penalty units for a natural person and 600 penalty units for a body corporate applies to a breach of this provision. Clause 27 provides that nothing in the Planning and Environment Act 1987 or in any planning scheme made under that Act applies to the development or use of any spectator stand on the Ground. Clause 28 provides for the Trust to replace, remove, refurbish or upgrade the MCG floodlight towers and operate the floodlights despite anything to the contrary in the Planning and Environment Act 1987 or in any planning scheme made under that Act. Subclause (2) provides that any building or works to replace, remove, refurbish or upgrade a floodlight tower must be done in accordance with plans and specifications approved by the Minister administering the Crown Land (Reserves) Act 1978 and the Minister administering the Planning and Environment Act 1987. Clause 29 authorises the Minister to make a determination specifying a day or days when the floodlights may be operated. A determination may cover a number of matters specified in subclause (2) including the times when the floodlights may be used, the purpose of using the floodlights and the entrance, exit and parking of vehicles in Yarra Park Reserve. Subclause (3) requires a determination to be published in the Government Gazette. Clause 30 provides that the floodlights must be operated in accordance with a determination by the Minister under clause 29. Clause 31 provides that no injunction or other form of relief is available against certain persons merely because they replace, remove, refurbish or upgrade the floodlight towers, or operate the floodlights, in accordance with the Bill. The persons to whom this provision applies are the Trust, any member of the Trust, the MCC, any person involved in the administration of the Bill, any person conducting an event at the Ground and an employee of the Trust, the MCC or the organizer of an event. 6

 


 

Clause 32 provides that the Trust, with the approval of the Governor in Council, may make regulations related to the functions of the Trust despite anything to the contrary in the Land Act 1958. Subclause (2) specifies that without limiting the matters about which regulations may be made, the Trust may make regulations with respect to the admission of the public to the Ground; the collection of fees or other charges for entering the Ground; and the preservation of good order and behaviour. Subclause (3) requires regulations to be published in the Government Gazette and posted in a conspicuous place in each part of the Ground. Persons are required to comply with the regulations under subclause (4) and there is a penalty of 10 penalty units for non- compliance. Clause 33 provides for transitional provisions. Subclause (1) states that the Crown grant is not affected by the repeal of section 5 of the Melbourne Cricket Ground Act 1933. Subclause (2) provides that the Trust that existed before the Bill commenced will continue as if it were established under the Bill. Similarly each existing member of the Trust will continue to be a member, for the remaining period of that member's term of appointment. Subclause (3) provides for the transition of the following: any rights, property and assets that were vested in the Trust; any debts liabilities and obligations of the Trust; any proceedings pending in any court to which the Trust was a party; any arrangement or contract entered into or on behalf of the Trust; any reference to the Trust in any Act or any subordinate instrument, agreement, instrument, deed or other document. Subclauses (4) to (14) provide that the repeal of relevant provisions of the old Act by this Bill will not affect any arrangements of the following kind in place before the commencement of the Bill and these arrangements will continue as if they were established under the Bill: any delegation by the Trust to a member of the Trust; any delegation by the Trust to the MCC; any delegation by the MCC to another party; any lease or licence granted by the Trust; any guarantee made in relation to borrowing by the Trust; any indemnity executed, or any other arrangement entered into, by the Treasurer; any business plan prepared or approved by the Trust; any appointment of the MCC as Ground Manager; any regulations that are in force; and any guarantee and determination in relation to that guarantee made in relation to borrowing by the MCC. Subclause (15) includes the definitions of pre-dating Trust and the Regulations. 7

 


 

Clause 34 repeals the Melbourne Cricket Ground Act 1933, the Melbourne Cricket Ground Act 1951, the Melbourne Cricket Ground (Trustees) Act 1957, the Melbourne Cricket Ground Act 1983, the Melbourne Cricket Ground Act 1984, the Melbourne Cricket Ground (Guarantees) Act 1984 and the Melbourne Cricket Ground Trust Act 1989. Clause 35 makes consequential amendments to various other Acts. 8