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WATER BOARD (AMENDMENT) BILL 1991
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to amend the Water Board Act 1987 so as:
(a) to remove any doubt as to the capacity of the Water Board to contract out its
functions to private contractors; and
(b) to remove any doubt as to the capacity of the Water Board to give security for
the performance of obligations arising under any such contract; and
(c) to ensure that any contract for the construction, maintenance and operation of
water, sewerage or drainage works within the Water Board's area of operations
may be entered into only with the approval of the Minister, and
(d) to facilitate the construction, maintenance and operation of water, sewerage and
drainage works by private contractors to whom those functions have been
contracted out; and
(e) to ensure that land may be compulsorily acquired under the Act for the purpose
of its being transferred to private contractors to facilitate the construction,
maintenance or operation of water, sewerage and drainage works or the making
of ancillary financial arrangements.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to
be appointed by proclamation.
Clause 3 gives effect to the Schedule of amendments.
SCHEDULE 1--AMENDMENTS
The power of the Water Board to enter into contracts generally is dealt with in
section 12 of the Act. Schedule 1 (1) (c) amends the section so as to enable the Board to
enter other arrangements. Schedule 1 (1) (d) amends the section so as to ensure that the
Board has the power to enter into contracts and other arrangements for the exercise of
The capacity of the Water Board to contract out its functions is fettered by section 13
of the Act which prohibits the exercise of the Board's functions within the Board's area
of operations by persons other than the Board. Schedule 1 (2) amends the section so as
to ensure that the prohibition does not apply to a private contractor to whom the Board
has contracted out its functions.
For the purpose of exercising its water, sewerage and drainage functions, the Water
Board is empowered to enter land (section 15 of the Act), subject to the requirement that
it pays appropriate compensation for any damage that ensues, and to break up roads,
sewers and drains (section 17 of the Act), subject to the requirement that it pays the
costs incurred by a statutory body in rectifying any damage so caused Schedule 1 (3)
and (4) amend those sections so as to confer those powers on private contractors acting
in the performance of certain kinds of contract, such as those for the construction,
maintenance or operation of water, sewerage or drainage works. The Board will remain
primarily liable for payment of compensation and costs of rectification for damage
ensuing from a private contractor's exercise of those powers.
Section 55 of the Act provides for the compulsory acquisition of land for the
purposes of the Act. Schedule 1 (5) amends the section so as to ensure that land may be
acquired under that section for the purpose of its being transferred to a private contractor
to enable the contractor to construct, maintain or operate water, sewerage or drainage
works or to make ancillary financial arrangements.