Tasmanian Public Finance Corporation Act 1985

Tasmanian Public Finance Corporation Act 1985

An Act relating to the provision of finance for public purposes

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART I - Preliminary

1.   Short title

This Act may be cited as the Tasmanian Public Finance Corporation Act 1985 .

2.   Commencement

(1)  This section and section 1 shall commence on the day on which this Act receives the Royal Assent.

(2)  Except as provided in subsection (1) , this Act shall commence on such day as may be fixed by proclamation.

3.   Interpretation

[Section 3 Subsection (1) amended by No. 50 of 1987, s. 37 ][Section 3 Subsection (1) amended by No. 40 of 1991, s. 22 ][Section 3 Subsection (1) amended by No. 4 of 1995, s. 4 ][Section 3 Subsection (1) amended by No. 30 of 1995, s. 3 and Sched. 1 ][Section 3 Subsection (1) amended by No. 52 of 1995, s. 3 and Sched. 1 ]

(1)  In this Act, unless the contrary intention appears –

the Corporation means the Tasmanian Public Finance Corporation established under Part II ;

loan means any form of financial accommodation (not being a grant) and "lend" and "borrow" have corresponding meanings;

local government authority means a council;

the Minister responsible, in relation to a State authority, means the Minister having the administration of the Act by or under which the State authority is constituted;

participating authority means –

(a) a State authority; or

(b) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] a local government authority that has made arrangements to borrow money from, or to deposit money with, the Corporation; or

(c) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] [Section 3 Subsection (1) amended by No. 41 of 2005, Sched. 1, Applied:31 Dec 2005] [Section 3 Subsection (1) amended by No. 52 of 2008, Sched. 1, Applied:16 Jun 2009] the Tasmanian Ports Corporation Pty. Ltd. (ACN 114 161 938) while all the shares in that corporation are held in trust for the Crown; or

(d) [Section 3 Subsection (1) amended by No. 52 of 2008, Sched. 1, Applied:16 Jun 2009] [Section 3 Subsection (1) amended by No. 46 of 2009, Sched. 1, Applied:27 Oct 2009] [Section 3 Subsection (1) amended by No. 51 of 2012, Sched. 2, Applied:01 Jul 2013] the Corporation, or a subsidiary of the Corporation, within the meaning of the Water and Sewerage Corporation Act 2012 ; or

(e) [Section 3 Subsection (1) amended by No. 46 of 2009, Sched. 1, Applied:27 Oct 2009] [Section 3 Subsection (1) amended by No. 8 of 2011, Sched. 1, Applied:01 Jul 2011] a company formed under section 5 of the Rail Company Act 2009 while all the shares in that company are held in trust for the Crown, or a subsidiary of that company while all the shares in that subsidiary are held by that company; or

(f) [Section 3 Subsection (1) amended by No. 8 of 2011, Sched. 1, Applied:01 Jul 2011] Tasmanian Irrigation Pty Ltd (ACN 133 148 384) while all the shares in that corporation are held in trust for the Crown;

security includes any document evidencing indebtedness;

State authority means –

(a) a body corporate which, or of which the governing authority, wholly or partly comprises –

(i) a Minister; or

(ii) a person or persons appointed by the Governor, a Minister, or another State authority or a person or persons holding office by virtue of being a member or members of another State authority; or

(b) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997] a body corporate which is financed wholly or in part out of public funds.

(c)

(d)

(e) [Section 3 Subsection (1) amended by No. 16 of 1997, Sched. 1, Applied:30 Jul 1997]

(2)  [Section 3 Subsection (2) omitted by No. 4 of 1995, s. 4 ].  .  .  .  .  .  .  .  

3A.   Application of Act to certain persons

[Section 3A Inserted by No. 39 of 1993, s. 24 and Sched. 2 ]

(1)  This Act, except sections 16 and 18 , applies to a person who, in the opinion of the Corporation, is directly or indirectly connected with the provision of financial accommodation for a shipping service to and from Tasmania managed or operated, or to be managed or operated, by a company formed and incorporated pursuant to section 5 of the TT-Line Arrangements Act 1993 as if that person were a State authority.

(2)  The terms and conditions (including, in particular, terms and conditions as to principal, interest, administrative charges, other charges and fees) of a loan provided under this Act to a person referred to in subsection (1) are the terms and conditions determined by the Corporation with the approval of the Treasurer.

(3)  The Treasurer must not approve terms and conditions under subsection (2) unless the Treasurer has first consulted with the Minister to whom the administration of the TT-Line Arrangements Act 1993 is for the time being assigned.

PART II - Establishment, Composition, &C., of the Corporation

4.   Establishment of the Corporation

[Section 4 Amended by No. 52 of 1995, s. 3 and Sched. 1 ]There is established by this Act the Tasmanian Public Finance Corporation.

5.   

[Section 5 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

5A.   

[Section 5A Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

6.   

[Section 6 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

7.   

[Section 7 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

8.   

[Section 8 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

9.   

[Section 9 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

10.   

[Section 10 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

PART III - Operations of the Corporation

11.   Functions and powers of the Corporation

[Section 11 Subsection (2) amended by No. 52 of 1995, s. 3 and Sched. 1 ]

(1)  [Section 11 Subsection (1) amended by No. 4 of 1995, s. 10 ]The functions of the Corporation are –

(a) to develop and implement borrowing and investment programmes for the benefit of participating authorities; and

(b) to engage in such other activities relating to the finances of the Government of the State or participating authorities as are contemplated by this Act or approved by the Treasurer.

(2)  [Section 11 Subsection (2) amended by No. 4 of 1995, s. 10 ]For the purposes of this Act, and notwithstanding the Government Business Enterprises Act 1995 , the Corporation may, but only if it has the approval of the Treasurer –

(a) borrow money within or outside Australia;

(b) lend money to participating authorities;

(c) accept money on deposit or loan from the Treasurer or a participating authority;

(d) [Section 11 Subsection (2) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] place on deposit with the Treasurer or an authorised deposit-taking institution money held by the Corporation;

(e) invest money held by the Corporation;

(f) issue, sell, purchase, pay-off, re-purchase, redeem, convert, or otherwise deal in or with securities;

(g) .  .  .  .  .  .  .  .  

(h) [Section 11 Subsection (2) amended by No. 74 of 1999, Sched. 2, Applied:01 Jan 2000] appoint an authorised deposit-taking institution or other person to act as underwriter, manager, trustee, or agent in connection with any transaction within or outside Australia;

(i) enter into contracts of guarantee;

(j) .  .  .  .  .  .  .  .  

(ja) enter into any agreement or arrangement for the purpose of returning a gain, avoiding a loss, or with a view to avoiding a loss by reference to currency obligations, currency exchange rate movement or interest rate movement; or

(jb) enter into any agreement or arrangement for the purposes of managing or varying financial returns or financial or currency risks (including but not limited to risks arising from currency exchange rates or interest rates); or

(k) enter into any agreement or arrangement of a kind not previously mentioned in this subsection or acquire or incur any other rights or liabilities; or

(l) .  .  .  .  .  .  .  .  

(3)  [Section 11 Subsection (3) omitted by No. 4 of 1995, s. 10 ].  .  .  .  .  .  .  .  

12.   Limitation on functions and powers

[Section 12 Substituted by No. 52 of 1995, s. 3 and Sched. 1 ]In performing and exercising its functions and powers, and in meeting its objectives, under this or any other Act, the Corporation must have due regard to the appropriate levels of financial risk.

13.   

[Section 13 Substituted by No. 52 of 1995, s. 3 and Sched. 1 ][Section 13 Repealed by No. 15 of 2001, Sched. 2, Applied:01 Jul 2001] .  .  .  .  .  .  .  .  

13A.   

[Section 13A Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

14.   

[Section 14 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

15.   Government guarantee

(1)  [Section 15 Subsection (1) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] [Section 15 Subsection (1) amended by No. 4 of 1995, s. 14 and Sched. 1 ]Liabilities incurred or assumed by the Corporation in pursuance of this Act are guaranteed by the State, and any liability of the Crown arising by virtue of this subsection shall be a charge on the Public Account, and shall be payable out of the Public Account without further appropriation than this section.

(2)  [Section 15 Subsection (2) amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] [Section 15 Subsection (2) amended by No. 4 of 1995, s. 14 and Sched. 1 ]Where an amount is paid by the State under the guarantee created by subsection (1) , the Corporation is liable to pay an amount equal to that amount to the Treasurer, for credit of the Public Account, by such instalments, at such times, and with such interest, as the Treasurer determines.

16.   Borrowing of money from, &c., the Corporation by State authorities

[Section 16 Substituted by No. 4 of 1995, s. 12 ]

(1)  Notwithstanding any other Act, a State authority –

(a) may borrow money from the Corporation, and, if the Treasurer by notice published in the Gazette so directs, must, in accordance with the notice, borrow money from the Corporation and not from any other person; and

(b) may and, if the Treasurer by notice published in the Gazette so directs, must deposit with or lend to the Corporation money of the State authority that is not immediately required for the purposes of the State authority; and

(c) may allow the Corporation to conduct debt management or any other activity of the type described in section 11 (2) on behalf of the State authority.

(2)  The terms and conditions of any transaction or activity undertaken under subsection (1) are to be as agreed between the Corporation and the State authority and in accordance with any guidelines issued by the Treasurer.

(3)  The Treasurer may issue guidelines relating to transactions or activities undertaken under subsection (1) .

16A.   Transactions with local government authorities

[Section 16A Inserted by No. 4 of 1995, s. 12 ]

(1)  Notwithstanding any other Act, a local government authority may –

(a) borrow money from; and

(b) deposit money with; and

(c) lend money to –

the Corporation on such terms and conditions as may be agreed between the Corporation and the local government authority.

(2)  A local government authority is not liable to pay a guarantee fee in respect of monies borrowed from the Corporation for the purposes of discharging or defeasing an existing liability.

(3)  In respect of a borrowing by a local government authority not referred to in subsection (2) , the Treasurer may give directions for the purposes of –

(a) assessing the amount of a guarantee fee in relation to the assessed value of the benefit to be obtained by the local government authority in respect of the borrowing; and

(b) determining the manner in which and the times at which the guarantee fee is to be paid.

17.   Treasurer may deposit money with the Corporation

[Section 17 Amended by No. 4 of 1995, s. 14 and Sched. 1 ][Section 17 Amended by No. 4 of 2017, Sched. 1, Applied:01 Jul 2019] Notwithstanding the Financial Management Act 2016 , any money under the control of the Treasurer may be deposited with or lent to the Corporation by the Treasurer upon such terms and conditions as the Treasurer may determine.

18.   Treasurer may re-arrange finances of State authorities

(1)  The Treasurer may, if he thinks fit, after consultation with the Minister responsible for a State authority that has borrowed money from a source other than the Treasurer or the Government of the State, by notice published in the Gazette –

(a) transfer to the Corporation the liabilities of the State authority in respect of the loan; and

(b) direct that the money outstanding under the loan shall be regarded for all purposes as having been borrowed by the State authority from the Corporation upon terms and conditions specified in the notice.

(2)  The Treasurer may, after consultation with the Minister responsible for a State authority, vary any terms and conditions applying in relation to the State authority by virtue of a notice under subsection (1) .

PART IIIA - Mersey Community Hospital Fund

18A.   Interpretation of Part

[Section 18A Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] In this Part –

dividend means a dividend payable, or paid, into the Public Account from the Fund in accordance with this Part;

Fund means the Mersey Community Hospital Fund referred to in section 18D(1) .

18B.   When Part takes effect

[Section 18B Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017] This Part takes effect on the day on which the State receives $730.4 million from the Commonwealth in relation to the transfer of ownership of the Mersey Community Hospital from the Commonwealth to the State.

18C.   Equity contribution

[Section 18C Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017]

(1)  No later than 30 days after the day on which this Part takes effect, the Treasurer must make an equity contribution to the Corporation.

(2)  The equity contribution –

(a) is to be the amount of $730.4 million; and

(b) may be made before or after the commencement of this Part.

18D.   Mersey Community Hospital Fund

[Section 18D Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017]

(1)  The equity contribution referred to in section 18C(1) , and any returns, and capital gains or losses, that accrue in relation to the equity contribution, comprise the Mersey Community Hospital Fund (the Fund).

(2)  The Corporation is to invest, in accordance with the guidelines, in relation to investment, comprised in Treasurer's Instructions for the purposes of the Government Business Enterprises Act 1995 , so much of the amount standing from time to time in the Fund as is not required, at the time of the investment, to be paid out of the Fund as a dividend under this Part.

(3)  For the purposes of this Part, the Treasurer may issue under section 114 of the Government Business Enterprises Act 1995 Treasurer's instructions so as to –

(a) provide guidelines relating to the determination, calculation and payment of dividends, within the meaning of this Part, and any other matter connected with such dividends; or

(b) apply, to dividends, within the meaning of this Part, guidelines made under that section in relation to dividends, or special dividends, within the meaning of that Act.

18E.   Dividends from Mersey Community Hospital Fund

[Section 18E Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017]

(1)  The Corporation is to pay into the Public Account, no later than 15 June in each financial year in which this Part is, for all or part of the year, in effect, a dividend for the financial year.

(2)  The amount of the dividend for a financial year is the amount of the dividend, for the financial year, determined in accordance with section 18F .

(3)  Subsection (1) does not apply in relation to the 2016-2017 financial year.

(4)  The purpose of the payment of a dividend under subsection (1) is to ensure the ongoing funding of the Mersey Community Hospital.

(5)  The dividend is to be paid out of the Fund.

(6)  Division 2 of Part 11 of the Government Business Enterprises Act 1995 does not apply in relation to a dividend under this Part.

(7)  Subject to subsection (6) , nothing in this Part is to be taken to affect the application to the Corporation of Division 2 of Part 11 of the Government Business Enterprises Act 1995 .

18F.   Determination of amount of dividend

[Section 18F Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017]

(1)  For the 2017-2018 financial year, the amount of the dividend is $78 142 500.

(2)  The amount of the dividend for each financial year after the 2017-2018 financial year is the amount of the dividend for the immediately previous financial year, as increased by 3.5%.

(3)  Despite subsections (1) and (2) , if the amount in the Fund is insufficient to pay all of the amount of the dividend calculated in accordance with subsection (2) in relation to a financial year, the amount of the dividend for that financial year is the amount equal to all of the remaining amount in the Fund.

(4)  This Part ceases to be in effect when the amount of the dividend for a financial year is the amount calculated in accordance with subsection (3) .

18G.   Amount of dividend is to be appropriated for Mersey Community Hospital

[Section 18G Inserted by No. 25 of 2017, s. 4, Applied:30 Jun 2017]

(1)  In this section –

Appropriation Bill means a Bill for an Act which authorises the issue and application of any money from the Public Account to meet –

(a) the cost of the ordinary annual services of the Government; or

(b) expenditure on public works or the acquisition of any property required for public purposes;

relevant Appropriation Bill means an Appropriation Bill which includes an amount to be appropriated in relation to the funding of the Mersey Community Hospital, whether or not the amount is specifically identified in that Bill to be for that purpose.

(2)  The Minister who introduces into the House of Assembly a relevant Appropriation Bill for a financial year in which a dividend is to be paid into the Public Account in accordance with section 18E(1) is to specify, in the papers that are tabled in the House of Assembly in connection with the Bill, the amount, included in an appropriation in the Bill, that is for the purpose of funding the Mersey Community Hospital, which amount is to be not less than the amount of the dividend.

PART IV - Miscellaneous

19.   

[Section 19 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

20.   

[Section 20 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

21.   State authorities to provide certain information

[Section 21 Amended by No. 4 of 1995, s. 14 and Sched. 3 ]A State authority shall, if so required by the Treasurer, furnish the Board with information relating to the financial affairs of the State authority.

22.   

[Section 22 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

23.   Certificates of compliance with this Act

(1)  [Section 23 Subsection (1) amended by No. 4 of 1995, s. 14 and Sched. 3 ]The Treasurer may, if he is so satisfied, certify that anything done by the Board has been done in pursuance of this Act.

(2)  In any legal proceedings, an apparently genuine document purporting to be a certificate under subsection (1) shall be accepted as proof of the matters stated in the certificate in the absence of proof to the contrary.

24.   

[Section 24 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .  

25.   

[Section 25 Repealed by No. 40 of 1991, s. 24 ].  .  .  .  .  .  .  .  

26.   

[Section 26 Repealed by No. 52 of 1995, s. 3 and Sched. 1 ].  .  .  .  .  .  .  .