Commonwealth Numbered Regulations - Explanatory Statements

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AUSTRALIAN TOURIST COMMISSION AMENDMENT REGULATIONS 2002 2002 NO. 237

EXPLANATORY STATEMENT

STATUTORY RULES 2002 No. 237

Issued by the authority of the Minister for Small Business and Tourism

Australian Tourist Commission Act 1987

Australian Tourist Commission Amendment Regulations 2002

Section 51 of the Australian Tourist Commission Act 1987 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act prescribing matters required or permitted by the Act to be prescribed; or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Paragraph 46(a) of the Act provides that the Board of the Australian Tourist Commission (the Commission) shall not, except with the written approval of the Minister, enter into a contract involving payment or receipt of an amount exceeding $500,000 or, if a higher amount is prescribed, the higher amount. This amount was increased to $1 million by Australian Tourist Commission Regulations 2000 (Statutory Rules 2000 No. 182).

The purpose of the proposed Regulation is to raise the value of contracts that the Board of the Australian Tourist Commission can enter into without the Minister's approval from $1 million to $5 million.

The effect of the proposed Regulations would be to reduce the frequency of the need for the Board to seek Ministerial approval to enter into contracts. This would reduce administrative demands on the Minister and increase the autonomy of the Board in this area to a level more in keeping with its responsibilities.

Comparisons with other statutory agencies indicate that the Commission's Ministerial approval threshold is comparatively low. The proposed increase would bring Ministerial oversight of the Commission more into line with other agencies.

Contract negotiation and management forms a significant part of the Commission's activities. The Board of the Commission approved 74 contracts in the two years to 2001-02. Of this total, 54 contracts required Ministerial approval. An increase in the approval threshold would reduce the administrative load on the Minister.

The proposed Regulations would commence on gazettal.

Details of these Regulations are set out below.

Regulation 1 provides that the name of the Regulations is the Australian Tourist Commission Amendment Regulations 2002.

Regulation 2 provides for the Regulations to commence on gazettal.

Regulation 3 provides that the Regulations referred to in these Regulations means the Australian Tourist Commission Regulations 2000.

Regulation 4 provides that for paragraph 46(a) of the Act, the amount is $5 million.


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