Australian National Airlines Act 1961

Section thirty-two of the Principal Act is repealed and the following section inserted in its stead:—

Financial policy of Commission.

“32.—(1.) The Minister, with the concurrence of the Treasurer and after consultation with the Commission—

shall, not later than one month before the commencement of each financial year, determine the percentage of the capital of the Commission that would represent a reasonable return to the Commonwealth from the operations of the Commission in that financial year, and give notice in writing to the Commission of the percentage so determined; and

may, at any time during a financial year, by reason of a change in circumstances, by notice in writing to the Commission, amend a determination under the last preceding paragraph.

“(2.) In performing their functions under the last preceding sub-section, the Minister and the Treasurer shall take into account, in addition to other relevant matters—

the profits, in relation to capital employed, that have been, and are expected to be, made by privately-owned air transport undertakings in Australia;

all matters tending to create disparity with respect to costs between the Commission and privately-owned air transport undertakings, including—

any loans made by the Commonwealth to the Commission at interest rates less than current commercial rates;

the fact that moneys representing provision made by the Commission for staff superannuation are available for use in the business of the Commission;

the conduct by, or by undertakings associated with, privately-owned air transport undertakings of commercial activities other than air transport services;

the operation of developmental services and essential rural services; and

the extent of their non-competitive air transport operations.

“(3.) The Commission shall pursue a policy directed towards making, in each financial year, profits sufficient to enable the Commission to pay to the Commonwealth, out of those profits, an amount equal to the percentage of its capital determined under sub-section (1.) of this section in respect of that financial year.

“(4.) After receipt of notice of the determination made under sub-section (1.) of this section in respect of a financial year, the Commission shall, having full regard to its duty under the last preceding sub-section, prepare estimates, in such form as the Minister directs, of its revenue and expenditure for that financial year and submit those estimates to the Minister.

“(5.) The Commission shall, from time to time as provided in the next succeeding sub-section, review the financial results of its operations during the current financial year and if, upon any such review, the Commission finds that the revenue and expenditure of the Commission during the preceding part of the financial year have not been as favorable to the profitable conduct of the business of the Commission as those specified in the estimates submitted to the Minister and, having regard to that fact, it appears likely that, unless special measures are taken, the Commission will not make sufficient profits in that year to enable it to pay to the Commonwealth, out of those profits, an amount equal to the percentage of its capital determined, in respect of that year, under sub-section (1.) of this section, the Commission shall forthwith consider what specific measures can be taken for the purpose of enabling it to carry out more effectively, during the remainder of that financial year, its duty under sub-section (3.) of this section and shall inform the Minister of the measures it proposes to adopt for that purpose and the effect that it considers the adoption of those measures will have on the financial results of its operations.

“(6.) A review under the last preceding sub-section shall be made whenever the Commission considers that circumstances so require or the Minister so directs, but so that not more than six months shall elapse in a financial year between—

the beginning of that financial year and the first review under that sub-section in that financial year; or

the commencement of a review under that sub-section and the commencement of the next such review.”.