Passenger Transport Amendment
(Maintenance of Bus Services)
Bill 2005

This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Passenger Transport Act 1990 (the Principal
Act) to enable the implementation of “step-in arrangements” to maintain regular bus
services before or after termination or on or before expiry of commercial bus service
contracts (in force before the reform of bus contracts in 2004), and temporary
contracts replacing those contracts, (existing bus service contracts).

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent.

Clause 3 is a formal provision that gives effect to the amendments to the Principal
Act set out in Schedule 1.

Schedule 1 Amendments
The Passenger Transport Amendment (Bus Reform) Act 2004 established a new
system for the regulation of regular bus services, including the introduction of
performance-based contracts and opportunities for contestability. Under transitional
provisions inserted by that Act, existing contracts were kept on foot but are able to
be terminated by the Director-General before the contract term expires. Subsequent
contracts are governed by the new contract arrangements. The proposed Act enables
the Director-General to implement step-in arrangements to maintain the provision of
bus services where an existing bus service contract expires or is terminated before a
new contract is operative.

Schedule 1 [10] inserts proposed clauses 39A–39C into Schedule 3 (Savings and
transitional provisions) to the Principal Act.

Proposed clause 39A enables the Director-General, by notice published in the
Gazette, to implement step-in arrangements to authorise the Director-General or a
person nominated by the Director-General to step in to provide bus services formerly
provided under an existing bus service contract before or after termination or on or
before expiry of the contract. Such provisions would enable the person to act in the
place of the bus service provider for up to 12 months, as if the contract were in force,
and to take possession of and use the assets necessary to provide the bus services. The
proposed clause sets out the matters that may be covered by step-in arrangements
(including the use of staff) and provides for the variation or revocation of step-in
arrangements by further notice published in the Gazette.

Proposed clause 39B makes it an offence to fail to comply (without reasonable
excuse) with an obligation imposed under step-in arrangements or to enter into an
agreement, transaction or other arrangement or take other action with the intention of
preventing the use of staff or a bus, premises or other assets under a step-in
arrangement.

Proposed clause 39C provides legal protections relating to the operation of proposed
clause 39A and step-in arrangements.

Schedule l [1] enables savings and transitional regulations to be made as a
consequence of the proposed Act.

Schedule 1 [2] inserts definitions of expressions used in the provisions inserted by
the proposed Act.

Schedule 1 [3] extends the effect of clause 33 of Schedule 3 to the Principal Act
(which defeats statutory rights of renewal for existing bus service contracts) to rights
of renewal contained in existing bus service contracts.

Schedule 1 [4] and [5] amend clause 34 of Schedule 3 to the Principal Act to provide
that the review provisions of the Principal Act do not apply to a decision to
implement step-in arrangements under proposed clause 39A.

Schedule 1 [6] amends clause 36 of Schedule 3 to the Principal Act to extend
protections from legal challenge given by that clause in respect of the exercise of
functions of the Director-General to functions relating to the implementation of
step-in arrangements.

Schedule 1 [7]–[9] amend clause 37 of Schedule 3 to the Principal Act to extend the
prohibition on compensation by the Crown under that clause to loss or damage
arising from step-in arrangements or things done or omitted to be done under or in
connection with step-in arrangements.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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