Bills Digest No. 177 1997-98
Telecommunications (Carrier Licence Charges) Amendment Bill 1998
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Contact Officer & Copyright Details
Passage History
Date Introduced: 1 April 1998
House: House of Representatives
Portfolio: Communications, the Information Economy and the Arts
Commencement: Royal Assent
Purpose
To provide for the imposition of a charge on telecommunication
carriers to recover costs incurred by the Commonwealth in regulating industry
development plans.
Background
The Telecommunications (Carrier Licence Charges) Act 1997 (the
Principal Act) imposes a fee on applications for carrier licences and
an annual charge on carrier licences.
Section 7 of the Principal Act imposes a charge when an application is
made for a carrier licence. The amount of charge is calculated in accordance
with a determination made by the Australian Communications Authority.
The maximum charge which may be imposed is $100 000.
Section 12 imposes an annual charge on carrier licences that are in force
at the beginning of a financial year. The charge is payable by the licence
holder (section 13). The amount of the charge is calculated in accordance
with a determination made by the Australian Communications Authority.
There is no limit on the amount of the annual licence charge except that
section 15 provides that the total of charges imposed on licences must
not exceed the sum of the amounts which represent the proportion of the:
- Australian Communications Authority costs, for the preceding
financial year, that are attributable to its telecommunications functions
and powers
- Australian Competition and Consumer Commissions costs, for the
preceding financial year, that are attributable to its telecommunications
functions and powers, and
- Commonwealths contribution to the budget of the International
Telecommunications Union for the calendar year in which the beginning
of the financial year occurs that is to be recovered from carriers.
The principal effect of the amendments proposed by the Bill is to provide
for the imposition of a charge on telecommunication carries to recover
costs incurred by the Department of Industry, Science and Tourism (DIST)
in administering Part 2 of Schedule 1 of the Telecommunications Act
1997.
The rationale given by the government in the Second Reading Speech
to the Bill for the proposed amendments is:
... the licence charge payable by telecommunications carriers does
not recover costs incurred by DIST.
Part 2 of Schedule 1 of the Telecommunications Act 1997 deals
with industry development plans. A carrier must have a current industry
plan. That plan must be given to the Minister for Industry, Science and
Tourism. The industry development plan is a plan for the development in
Australia, in connection with the carrier's business as a carrier, of
industries involved in the manufacture, development or supply of facilities
and research and development relating to those industries. The plan must
include relevant details of the carrier's strategic commercial relationships,
research and development activities, involvement in industry and export
facilitation. A summary of the plan must be made available to the public.
Within 90 days of the end of each financial year, a carrier must give
the Minister for Industry, Science and Tourism a report setting out the
details of progress made by the carrier in implementing the plan during
that year and make a summary of that report available to the public.
It is estimated by the Government in the Explanatory Memorandum
to the Bill that the proposed amendments will enable the recovery of an
estimated $600 000 per annum.
It is acknowledged by the Government, on page four of the Explanatory
Memorandum, that the cost of the Bill to industry will be passed on
to consumers.
The Government states on page four of the Explanatory Memorandum
that:
As the turnover of telecommunications carriers is about $25 billion,
the levy of about $600 000 will have no noticeable impact on the
prices faced by consumers, suppliers or carriers.
The above statement is unsupported, and it may be expected that carriers,
particularly full private carriers, will over time attempt to recover
the charge.
Main Provisions
Item 1 of Schedule 1 inserts a new paragraph 15(1)(e) in
the Principal Act which includes in the annual carrier licence charge
an amount, determined by the Minister for Industry, Science and Tourism,
to be the Commonwealth's costs for the preceding financial year in administering
Part 2 of Schedule 1 of the Telecommunications Act 1997.
Ian Ireland
8 April 1998
Bills Digest Service
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ISSN 1328-8091
Commonwealth of Australia 1998
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Published by the Department of the Parliamentary Library, 1998.
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