Commonwealth Numbered Regulations

1984 No. 95 GUIDELINES UNDER SUB-REGON 12 (1) OF THE LIQUID FUEL EMERGENCY ACT 1984 - REG 2

2. (1) The prescribed quantity of liquid fuel of a particular kind in respect
of a relevant fuel industry corporation shall, subject to sub-clause (3), be
such proportion of the total quantity of liquid fuel of that kind that, in
accordance with the policy for the time being of the Australian Government, is
to be stockpiled as reserve supplies in Australia as must be kept by the
corporation to ensure that, during a period of national liquid fuel emergency,
distribution of the liquid fuel to customers of the corporation will be
effected so as to achieve, as far as possible, the objectives of the
Australian Government.

(2) For the purpose of ascertaining, in accordance with sub-clause (1), the
prescribed quantity of liquid fuel of a particular kind in respect of a
relevant fuel industry corporation, regard shall be had to-

   (a)  the ratio that the quantity of liquid fuel of that kind supplied by
        the corporation to its customers during the period of one year
        immediately preceding the month in which a direction under sub-section
        12 (2) of the Act to maintain, or to accumulate and thereafter
        maintain, the prescribed quantity of liquid fuel of that kind is to be
        given to the corporation bears to the total quantity of liquid fuel of
        that kind supplied during that period to persons in Australia; and

   (b)  the normal distribution system and stockholding pattern of the
        corporation.

(3) In determining the prescribed quantity of liquid fuel of a particular kind
in respect of a relevant fuel industry corporation-

   (a)  account shall, as far as possible, be taken of the maximum quantity of
        liquid fuel of that kind that can be maintained, or accumulated and
        thereafter maintained, by the corporation, at the place or places at
        which it would, if a direction were given by the Minister under
        sub-section 12 (2) of the Act, be required to maintain, or accumulate
        and maintain, reserve supplies of that liquid fuel, without its
        competitive position in relation to other relevant fuel industry
        corporations that are, or will be, required to maintain, or to
        accumulate and thereafter maintain, liquid fuel of that kind being
        adversely affected to any significant degree; and

   (b)  every attempt shall, as far as possible, be made to ensure that the
        relevant ratio in relation to the costs that would be incurred by the
        corporation in maintaining during such period as the Minister may,
        subject to sub-clause (5), from time to time determine, or in
        accumulating and thereafter maintaining during that period, that
        quantity of liquid fuel of that kind is not significantly higher or
        less than the ratio that is the relevant ratio in relation to the
        costs that would be incurred during that period by any other relevant
        fuel industry corporation that is or will be required to maintain, the
        prescribed quantity of liquid fuel of that kind in respect of that
        other corporation.

(4) In paragraph (3) (b), "relevant ratio", in relation to the costs incurred
by a relevant fuel industry corporation in maintaining during a particular
period, or accumulating and thereafter maintaining during that period, the
prescribed quantity of liquid fuel of a particular kind in respect of the
corporation, means the ratio that those costs bear to the costs incurred by
the corporation in maintaining, distributing and marketing the quantity of
liquid fuel of that kind that it makes available to its customers during that
period.

(5) The Minister shall, before determining a period for the purposes of
paragraph (3) (b), have regard to any views expressed by relevant fuel
industry corporations in relation to the length of the period.