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Victorian Urban Development Authority Bill
Circulation Print
EXPLANATORY MEMORANDUM
General
The purpose of this Bill is to establish the Victorian Urban Development
Authority (the "Authority") to carry out urban development, develop the
Docklands area, undertake declared projects and to assist in the
implementation of government urban development policies and strategies
(including Melbourne 2030). The Bill merges the Docklands Authority and
the Urban and Regional Land Corporation ("URLC") into the Authority,
which will take over the functions of both bodies.
The Bill provides for special powers in relation to declared projects, repeals
the Urban and Regional Land Corporation Act 1997, amends the
Docklands Authority Act 1991 (including an amendment to the title of that
Act as "Docklands Act 1991") and other Acts. The Bill provides that the
functions of the Authority are the functions conferred on the Docklands
Authority and URLC under their respective Acts and any other Acts.
Clause Notes
PART 1--PRELIMINARY
Clause 1 sets out the purpose of the Bill.
Clause 2 provides for the commencement of the Act on a day to be
proclaimed. If not proclaimed earlier, the Act will come into
operation on 1 July 2004.
Clause 3 sets out the definitions used in the Bill.
Clause 4 provides that except for the purposes of Part 3 of the Bill and
section 6 of the Docklands Act 1991, the Authority does not
represent the Crown.
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551053 BILL LA CIRCULATION 2/5/2003
PART 2--VICTORIAN URBAN DEVELOPMENT
AUTHORITY
Division 1--Establishment
Clause 5 provides for the establishment of the Authority to be known as
the Victorian Urban Development Authority, with the usual body
corporate powers and status.
Clause 6 provides for the Authority to trade as "VicUrban".
Division 2--Functions and Powers
Clause 7 sets out the functions of the Authority. These functions include
the functions of the Docklands Authority and URLC.
New functions are to assist in the implementation of government
urban development policies and strategies and to undertake and
manage declared projects on behalf of the Crown. The clause
also provides for the functions of the Authority to be carried out
on a commercial basis.
Clause 8 empowers the Authority to purchase, take on transfer or
otherwise acquire or dispose of real or personal property.
The clause also provides for the Authority to have the powers
conferred on it by the Docklands Act 1991 and the power to do
all things necessary and convenient to be done to enable the
performance of its functions.
Clause 9 provides that the Authority is subject to the general direction and
control of the Minister and to any specific direction given by the
Minister with the approval of the Treasurer.
Clause 10 empowers the Minister, with the approval of the Treasurer, to
direct the board to perform certain non commercial functions that
are considered to be in the public interest but may cause financial
detriment to the Authority or to cease to perform those functions
or functions that the Minister considers to be not in the public
interest.
Clause 11 gives the Authority power to delegate its functions, powers and
duties.
Clause 12 empowers the Authority to enter into joint ventures and other
arrangements. Approval of the Minister and Treasurer is
required if the total investment in an activity exceeds $5 000 000.
Clause 13 enables the Authority to enter into reciprocal arrangements with
public sector agencies.
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Clause 14 enables the Governor in Council to grant land to the Authority.
Clause 15 provides that approval is to be obtained from the Minister and the
Treasurer before the Authority purchases, takes on transfer or
otherwise acquires private land if the value of the land exceeds
$5 000 000. This clause does not apply to land acquired under
Part 3 of the Bill or land acquired under the Docklands Act 1991
or land owned by the Crown, a public authority, a municipal
council or the Commonwealth.
Clause 16 provides for the employment of staff by the Authority.
Division 3--The Board
Clause 17 establishes the board of directors of the Authority.
Clause 18 sets out the constitution of the board.
Clause 19 provides for the appointment of directors of the Authority and
provides that the Public Sector Management and Employment
Act 1998 does not apply to a director of the Authority in respect
of the office of director.
Clause 20 provides for the terms and conditions of a director's appointment.
Clause 21 provides for acting appointments to be made.
Clause 22 provides for the appointment of the chief executive of the
Authority.
Clause 23 sets out the circumstances when vacancies, resignations and
removal from office of directors occur.
Clause 24 provides for validity of decisions by the board.
Clause 25 provides for certain requirements regarding board meetings.
Clause 26 provides that the board may establish sub-committees.
Clause 27 provides for directors of the Authority to participate in meetings
by other means than in person.
Clause 28 enables the board to pass resolutions without meetings.
Clause 29 requires disclosure of a director's pecuniary interests, direct or
indirect, which could conflict with proper performance of his or
her duties.
Clause 30 sets out the duties of directors.
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Clause 31 enables the Authority or the Minister to bring proceedings against
a person who contravenes clause 30.
Clause 32 provides that the Authority must not make loans to directors,
their spouses or relatives, or give guarantees or provide securities
in connection with a loan made to a director, his or her spouse or
relatives.
Clause 33 limits the powers of the Authority so that they do not include the
power to exempt or indemnify a director of the Authority against
any liability arising from a wilful breach of duty or breach of
trust of which the director may be guilty in relation to the
Authority. This clause is not intended to limit the operation of
section 35J of the Docklands Act 1991.
PART 3--POWERS RELATING TO DECLARED PROJECTS
Division 1--Declared Projects
Clause 34 empowers the Governor in Council, on the recommendation of
the Minister, to declare a development or a proposed
development to be a project to which the Bill applies (a "declared
project"), by order published in the Government Gazette
(a "project order"). A project order must specify the provisions
of Divisions 2, 3, 4, 5 and 6 of Part 3 of the Bill that apply to the
declared project and the area of land which is to be the project
area for the purposes of the declared project.
Clause 35 is an application provision. This clause makes it clear that the
provisions of Division 2, 3, 4, 5 or 6 of Part 3 of the Bill do not
apply to a declared project unless they are specified in the project
order dealing with the project. The clause provides that a
function or power conferred on the Authority or a Minister by a
project order is in addition to the function or power that the
Authority or the Minister have under the Bill, the Docklands Act
1991 or any other Act.
Clause 36 provides that the Authority represents the Crown in undertaking
and managing a declared project.
Clause 37 provides for the Authority to surrender land in a project area to
the Crown, if the land was vested in the Authority, before the
project order is made.
Clause 38 provides that Part 3 of the Bill binds the Crown.
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Division 2--Obtaining Land
Clause 39 provides for the surrender or divesting of land of a public
statutory body by an Order of the Governor in Council, published
in the Government Gazette. The purpose of this provision is to
allow the Governor in Council to divest land in the project area
from a public statutory body for the purposes of a declared
project. It also provides that the divesting or surrender of land
under the clause does not affect any reservation of the land under
the Crown Land (Reserves) Act 1978.
Clause 40 provides for the granting of land to the Authority by the
Governor in Council, on behalf of the Crown. As a condition of
granting the land to the Authority, the Minister may require it to
agree to pay into the Consolidated fund or, if the land was
surrendered by or divested from a public statutory body, to that
body, the net proceeds of any sale of that land by the Authority,
less any holding and selling costs. The payment must be made at
the times or over the period determined by the Minister.
Clause 41 provides that for the purposes of a declared project, the Authority
may acquire by agreement, an interest in land on any terms that
the Authority considers appropriate. An interest in land acquired
under this clause vests in the Crown. If the value of the interest
to be acquired exceeds $5 000 000 the Authority must obtain the
approval of the Minister and the Treasurer.
Clause 42 provides that the Authority may compulsorily acquire land for the
purposes of a declared project, with the approval of the Minister
administering the Planning and Environment Act 1987. If the
value of the interest to be acquired exceeds $5 000 000, the
Authority must obtain the approval of the Minister and the
Treasurer.
Division 3--Compensation for Surrendered or Divested Land
Clause 43 provides for compensation on surrender or divesting of land of
public statutory bodies to the Crown under clause 39.
Compensation is payable to a person (other than a public
statutory body) who immediately before the divesting or
surrender of the land had a legal or equitable estate or interest in
that land. This clause also provides that the Land Acquisition
and Compensation Act 1989 (except sections 31 to 36) applies
to the determination of compensation payable under this clause.
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Division 4--Activities on Land
Clause 44 enables the Authority to manage land in the project area that is
Crown land or owned by the Authority including granting of
leases, easements or privileges, or exercising any of its other
functions.
Clause 45 permits the Governor in Council, on the recommendation of the
Minister and the Minister administering the Crown Land
(Reserves) Act 1978, to revoke, by order published in the
Government Gazette, temporary or permanent reservations of
Crown land. This clause does not apply to certain reservations
such as mineral springs, alpine resorts, public parks gardens and
ornamental plantations and zoological parks.
Clause 46 empowers a person authorised by the Authority to enter land in
the project area for the purpose of carrying out surveys or
investigations connected with the development of the project
area, or doing anything, on the Authority's behalf, that the
Authority is authorised to do in carrying out its functions and
powers.
Division 5--Disposing of and other dealings with land
Clause 47 permits the Authority to surrender land to the Crown.
Clause 48 permits the Authority to dispose of its interest in fee simple in
any land in the project area on any terms that it considers
appropriate.
Clause 49 permits the Authority to enter into an agreement with an owner of
land in the project area or a person in anticipation of becoming an
owner of land in the project area concerning the use or
development of the land. It provides that Division 2 of Part 9
of the Planning and Environment Act 1987, as modified by
sub-clause 49(2), applies to an agreement under this clause.
The effect of Division 2 of Part 9 is that the agreement will bind
future owners of the land.
Clause 50 enables the Authority, with the prior approval of the Governor in
Council, to levy charges in the project area including charges for
the supply of telecommunications and other services provided by
or by agreement with the Authority.
Clause 51 sets out how a charge may be levied.
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Clause 52 enables the Treasurer, on the recommendation of the Minister, to
totally or partially exempt a project area or part of it from any
duty, tax, rate or charge levied in respect of land under this Bill
or any other Act. The written consent of the person or body
responsible for levying the duty, tax, rate or charge concerned is
required before the Minister makes a recommendation under this
clause.
Clause 53 empowers the Authority to construct, extend, realign, open,
operate, close and remove infrastructure such as roads, railways
and transport facilities. In certain cases the agreement of the
body that has control of the infrastructure must be obtained.
Clause 54 sets out the procedures for closing, realignment or relocation of
roads.
Clause 55 provides that the Minister is empowered to nominate a person to
administer and enforce the Building Act 1993 and the building
regulations in a project area.
Clause 56 enables the Authority, with the approval of the Minister, to
request negotiation bonds from developers interested in a project
area.
PART 4--CORPORATE PLAN
Clause 57 provides that the board must prepare a corporate plan (including
a statement of corporate intent, a business plan and financial
statements) for each financial year in consultation with the
Treasurer and the Minister.
Clause 58 sets out what must be included in the Authority's statement of
corporate intent.
Clause 59 provides that the Authority must act only in accordance with its
corporate plan unless it has first obtained written approval from
the Treasurer and the Minister.
Clause 60 provides that nothing is void because of non compliance with
clause 57, 58 or 59 of the Bill.
Clause 61 provides that the board must give notice of significant events to
the Minister and the Treasurer.
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PART 5--FINANCIAL PROVISIONS
Clause 62 provides for the establishment of a General Fund by the
Authority.
Clause 63 provides for the establishment of a separate Project Fund by the
Authority, relating to declared projects.
Clause 64 confers certain powers in the Borrowing and Investment
Powers Act 1987 on the Authority.
Clause 65 provides for the capital of the Authority and repayment of capital.
Clause 66 provides for the payment of dividends by the Authority.
Clause 67 provides for exceptions from sections 88 and 88B of the State
Owned Enterprises Act 1992.
PART 6--REPORTS BY THE AUTHORITY
Clause 68 empowers the Minister or Treasurer to require that the board
provide such information as the Minister or the Treasurer
requires.
Clause 69 provides that the Authority must include in its annual report, a
copy of directions given under clause 9, along with a statement of
its response to the direction, and a copy of the statement of
corporate intent last completed.
PART 7--GENERAL
Division 1--Confidentiality
Clause 70 provides that Division 1 of Part 7 of the Bill binds the Crown.
Clause 71 prohibits a person connected with the Authority from making
improper use of information, acquired because of that person's
connection with the Authority, to gain a pecuniary advantage or
to cause detriment to the Authority. The maximum penalty for
this offence is 50 penalty units.
Clause 72 requires a person connected with the Authority to keep
confidential information acquired because of that person's
connection with the Authority, except in certain circumstances.
The maximum penalty for this offence is 50 penalty units.
Clause 73 sets out who is connected with the Authority for the purposes of
clauses 71 and 72.
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Division 2--Evidence and Legal Proceedings
Clause 74 enables the Authority to bring proceedings for an offence under
the Bill.
Clause 75 sets out when proof of certain things is not required in the
absence of evidence to the contrary.
Clause 76 sets out the procedure for service of documents on the Authority
or by the Authority on other persons.
Clause 77 provides that Division 2 of Part 7 of the Bill does not take away
from any other Act, rule or law relating to evidence or the service
of documents.
Division 3--Duties of Registrar
Clause 78 provides that the Registrar of Titles must make certain recordings
in the Register that are necessary for the purposes of Part 3 of the
Bill.
Division 4--Regulations
Clause 79 provides for making of regulations by the Governor in Council.
PART 8--TRANSITIONAL PROVISIONS
Clause 80 sets out definitions of terms used in Part 8 of the Bill.
Clause 81 sets out transitional arrangements, such as transfer of assets and
liabilities to the Authority, required as a result of the abolition of
the Docklands Authority.
Clause 82 sets out transitional arrangements for staff of the Docklands
Authority. On the commencement of this Bill, employees of the
Docklands Authority are deemed to be employees of the
Authority on the same terms and conditions.
Clause 83 sets out that the current Chief Executive of the Docklands
Authority will be the first Chief Executive of the Authority.
Clause 84 sets out transitional arrangements for re-appointment to the
public service of certain Docklands Authority staff who have that
right under section 47 of the Docklands Authority Act 1991.
This clause ensures that their right under section 47 is not lost as
a result of the repeal of section 47 by this Bill.
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Clause 85 sets out transitional arrangements, such as transfer of assets and
liabilities to the Authority, required as a result of the abolition of
URLC.
Clause 86 sets out transitional arrangements for staff of URLC. On the
commencement of this Bill, employees of URLC are deemed to
be employees of the Authority on the same terms and conditions.
Clause 87 amends superseded references to Docklands Authority and to the
Docklands Authority Act 1991.
Clause 88 amends superseded references to URLC and to the Urban and
Regional Corporation Act 1997.
Clause 89 provides for the saving of covenants entered into by the Urban
Land Authority (a predecessor of URLC). This clause ensures
that certain covenants entered into by the former Urban Land
Authority are not affected by the repeal of the Urban and
Regional Land Corporation Act 1997 and by the abolition of
URLC by this Bill.
PART 9--AMENDMENTS AND REPEALS
Division 1--Repeal of Urban and Regional Land Corporation Act
1997
Clause 90 repeals the Urban and Regional Land Corporation Act 1997.
Because the new Authority will take over the functions and
powers of URLC and replace URLC under this Bill, the Urban
and Regional Land Corporation Act 1997 can be repealed.
Division 2--Amendments to the Docklands Authority Act 1991
Under the scheme of this Bill the Docklands Authority Act 1991 (with an
amended title) will continue in operation. However, the Authority will take
over the functions, powers and duties of the Docklands Authority specifically
related to the docklands area. The amendments to the Docklands Authority
Act 1991 in this Division of the Bill (except clause 101) are required as a
result of these changes.
Clause 91 provides for an amendment of the title to the Docklands
Authority Act 1991 by omitting "Authority".
Clause 92 makes a consequential amendment to section 1 of the Docklands
Authority Act 1991.
Clause 93 provides for substitution of definitions of "Authority" and "chief
executive" and repeals the definition of "member" in section 3 of
the Docklands Authority Act 1991.
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Clause 94 provides for Division 1 of Part 2 of the Docklands Authority
Act 1991 to be substituted with a new Division setting out the
circumstances when the Authority represents the Crown.
Clause 95 amends section 8 of the Docklands Authority Act 1991 to
ensure that it operates in relation to the Authority's duties under
the Docklands Act 1991.
Clause 96 makes consequential amendments to section 9 of the Docklands
Authority Act 1991.
Clause 97 makes consequential amendments to section 10 of the Docklands
Authority Act 1991.
Clause 98 makes consequential amendments to section 11 of the Docklands
Authority Act 1991.
Clause 99 provides for the repeal of sections 12, 13, 14 and Division 1 of
Part 3 of the Docklands Authority Act 1991 as these are no
longer required. The relevant provisions are now found in Part 2
of the Bill.
Clause 100 makes consequential amendments to section 19 of the Docklands
Authority Act 1991.
Clause 101 inserts new section 19A concerning creation of easements into
the Docklands Authority Act 1991.
Clause 102 makes a consequential amendment to section 23 of the
Docklands Authority Act 1991.
Clause 103 makes consequential amendments to section 24 of the Docklands
Authority Act 1991.
Clause 104 makes a consequential amendment to section 33(1) of the
Docklands Authority Act 1991.
Clause 105 makes a consequential amendment to section 35(1) of the
Docklands Authority Act 1991.
Clause 106 makes consequential amendments to section 35J of the
Docklands Authority Act 1991.
Clause 107 substitutes a new section 36 in the Docklands Authority Act
1991. This section establishes the Docklands Fund.
Clause 108 repeals sections 40(1) and 41 of the Docklands Authority Act
1991. These provisions are now provided for in Part 5 of the
Bill. It also makes a consequential amendment to section 40(4)
of the Docklands Authority Act 1991.
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Clause 109 makes a consequential amendment to section 42(1) of the
Docklands Authority Act 1991.
Clause 110 repeals sections 44 to 47 of the Docklands Authority Act 1991
and substitutes a new section 44 to ensure that documents
relating to municipal functions in the docklands area continue not
to be exempt documents under section 38 of the Freedom of
Information Act 1982.
Clause 111 repeals paragraphs (b), (c), (d), (f), and (h) in section 49(1) of the
Docklands Authority Act 1991 and makes consequential
amendments to that section. This clause repeals section 49(4) of
the Docklands Authority Act 1991. The repealed provisions are
now provided for in Part 7 of the Bill.
Clause 112 repeals section 50 of the Docklands Authority Act 1991.
This is covered by clause 117 of the Bill.
Clause 113 makes a consequential amendment to section 51 of the
Docklands Authority Act 1991 to omit "or the service of
documents".
Clause 114 repeals section 56(1) of the Docklands Authority Act 1991.
This is covered by clause 114 of the Bill.
Clause 115 repeals Schedules 2 and 3 to the Docklands Authority Act 1991.
These Schedules deal with membership and procedure of the
Docklands Authority and are no longer required.
Division 3--Consequential amendments to other Acts
This Division provides for consequential amendments to other Acts required
as a result of the abolition of the Docklands Authority and URLC by the Bill.
Clause 116 makes consequential amendments to the Borrowing and
Investment Powers Act 1987.
Clause 117 makes consequential amendments to the Emergency
Management Act 1986.
Clause 118 makes consequential amendments to the Environment
Protection Act 1970.
Clause 119 makes consequential amendments to the Land Tax Act 1958.
Clause 120 makes consequential amendments to the Melbourne and
Metropolitan Board of Works Act 1958.
Clause 121 makes consequential amendments to the Melbourne City Link
Act 1995.
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Clause 122 makes consequential amendments to the Metropolitan Fire
Brigades Act 1958.
Clause 123 makes consequential amendments to the Public Holidays
Act 1993.
Clause 124 makes consequential amendments to the Transport Act 1983.
Clause 125 makes consequential amendments to the Treasury Corporation
of Victoria Act 1992.
Clause 126 makes consequential amendments to the Victoria Grants
Commission Act 1976.
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