Service contracts
39 Service contracts
The terms and conditions on which a regular passenger service is to be operated within, or partly within, the State are to be set out in a contract (a service contract) entered into between a person who holds an appropriate accreditation under this Act and the Minister (on behalf of the
Crown).
The Minister may invite contracts by tender or in such other manner as the Minister thinks fit.
If the Minister determines that a service contract should be awarded by tender—
the Minister must appoint a person or persons to conduct the process, including the assessment of any responses to the tender (although the
Minister may respond to any issue referred to the Minister for his or her consideration or determination, and may select the successful tenderer (if any) at an appropriate time); and
the Minister must, within 14 days after the relevant invitation is published, forward to the Economic and Finance Committee of the Parliament a report which—
sets out the specifications and terms of the tender;
and
describes the processes that are to apply with respect to the assessment of any responses; and
provides information on the person or persons appointed under paragraph (a); and
contains such other information as the Minister thinks fit, (and the Economic and Finance Committee may then inquire into, and report on, the matter as the Committee thinks fit); and
if the Minister gives a direction to any person during the assessment or selection process, then the Minister must cause a statement of the fact of that direction—
to be forwarded to the Economic and Finance Committee within
14 days after the direction is given; and
to be published in the annual report of the Minister's department for the relevant financial year.
The Minister, in awarding service contracts under this
Part—
in any case involving a contract or contracts for the provision of regular passenger services as part of the operation of the public transport system within Metropolitan Adelaide—must take into account the following principles (and may take into account other principles):
service contracts should not be awarded so as to allow a single operator to obtain a monopoly, or a market share that is close to a monopoly, in the provision of regular passenger services within Metropolitan
Adelaide;
sustainable competition in the provision of regular passenger services should be developed and maintained;
the integration of passenger transport services should be encouraged and enhanced;
service contracts should support the efficient operation of passenger transport services and promote innovation in the provision of services to meet the needs of customers;
in any other case—may take into account principles determined by the Minister and made known to interested persons.
Subsection (3) is an expression of policy and does not give rise to rights or liabilities (whether of a substantive, procedural or other nature).
The Minister must, within 14 days after awarding a contract to which subsection (3)(a) applies, prepare a report which—
sets out the full name of the person to whom the contract has been awarded; and
provides information on the term of the contract; and
identifies the region or routes of operation under the contract;
and
provides information on the amount or amounts that will be payable by the Minister under the contract; and
provides information on how the principles under subsection (3)(a) have been applied in the circumstances of the particular case; and
contains such other information as may be required by the regulations or as the Minister thinks fit.
The Minister is not required to include in a report under subsection (3b)—
specific amounts payable under a contract; or
other information of a commercial value the disclosure of which would diminish its value or unfairly advantage a person or persons in future dealings with the Minister.
The Minister must, within six sitting days after completing a report under subsection (3b), have copies of the report laid before both Houses of Parliament.
If under a service contract awarded under this section the Minister is, or is reasonably expected to be, liable to make payments equal to or exceeding $4 000 000 (in total) over the term of the contract, the Minister must, within 28 days after awarding the contract, forward to the
Auditor-General—
a copy of the contract; and
a report which describes the processes that applied with respect to the awarding of the contract.
The Auditor-General must, within the period of 4 months after the receipt of a service contract and report under subsection (3e)—
examine the contract; and
prepare a report on the probity of the processes leading up to the awarding of the contract.
Section 34 of the Public
Finance and Audit Act 1987 applies with respect to the examination of a service contract, and the preparation of a report, under subsection (3f).
The Auditor-General must deliver copies of a report prepared under subsection (3f) to the President of the Legislative
Council and the Speaker of the House of Assembly.
The President of the Legislative Council and the Speaker of the
House of Assembly must, not later than the first sitting day after receiving a report under subsection (3h), lay copies of the report before their respective Houses of Parliament.
A person who operates a regular passenger service otherwise than under the authority of a service contract under this Act is guilty of an offence. Maximum penalty: Penalty: Division 3 fine.
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