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Bounty (Ships) Amendment Bill 1999

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1999

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

 

BOUNTY  (SHIPS) AMENDMENT BILL 1999

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of Senator the Honourable Nick Minchin,

Minister for Industry, Science and Resources).

 



BOUNTY (SHIPS) AMENDMENT BILL 1999

 

 

 

OUTLINE

 

The purpose of this Bill is to amend the Bounty (Ships) Act 1989 (the Ships Act) to give effect  to the following  support measures  for  the Australian shipbuilding industry:

 

 a) to extend the existing shipbuilding construction bounty; and

b)  to introduce the research and development expenditure bounty.

 

The key provisions of the Bill will:

 

·          extend the payment of the shipbuilding construction bounty from 1 July 1999 until

31 December 2000 at a rate of 3%;

·          establish a phasing  arrangement  for vessels  which are contracted for sale on or  before

31 December 2000, and are delivered on or before 31 December 2003;

·          provide transitional arrangements;

·          provide  for the payment of a research and development bounty  to registered shipbuilders, for eligible research and development expenditure,  at  the  rate of 50% of innovation expenditure up to a total of 2% of the eligible construction costs of a bountiable vessel; and

·          provide for the research and development expenditure bounty to apply only to the construction and modification completed on or before 30 June 2004.

 

In addition, the Bill contains provisions which take account of the Administrative Arrangements Orders issued since the commencement of the Ships Act.

 

FINANCIAL IMPACT STATEMENT

 

The total cost of this package is $82.0m over 5 years. Of this amount, it is expected $28.3m will be required for construction bounty payments. The research and development expenditure bounty is expected to cost  $51.5 million over the period 1 July 1999 to 30 June 2004. Additional administrative expenditure of $2.2m over five years is expected to be required to implement the shipbuilding assistance arrangements.

 

REGULATION IMPACT STATEMENT

 

Issue:

 

The issue faced was to formulate arrangements to support the Australian shipbuilding industry  pending the establishment of an effective international discipline to eradicate distortions in the market for ships.  Australian shipbuilders compete on world markets against firms which are heavily subsidised by overseas governments.  There is a need to put in place transitional measures until there is an effective international agreement to dismantle those subsidies.  A subsidiary issue was to provide the support in a form which would encourage the industry to secure its leading position in the lightweight shipbuilding market into the longer term.

 

The Government established a review of the shipbuilding industry in January 1998.  The Review examined the long term strategic direction of the industry under various scenarios.  This examination took into consideration the assistance arrangements of competing nations and progress in implementing the OECD Shipbuilding Agreement.

 

Specification of the Desired Objective:

 

The objective of the proposed approach is to provide transitional support to the Australian shipbuilding industry while international measures are being developed to phase out subsidies to the industry.  This is to assist the industry to overcome impediments in an international market place which is heavily distorted by non-tariff trade barriers and where assistance provided to overseas competitors is far greater than that provided to Australian shipbuilders.  The support is to be limited in duration, and to provide incentives for production and innovation in the industry.

 

Options:

 

The main options to provide support to the shipbuilding industry are through fiscal measures - an outlays scheme or taxation arrangements.  A tariff based scheme to limit the flow of imports would be ineffective as there is very little import competition in the Australian market, most of the industry's output is sold on overseas markets.  It would also mean Australian industries which use shipping services would face higher costs. 

 

There are two basic forms the assistance could take - a production incentive or an incentive on productive inputs, such as on capital, innovation, labour, and materials.  Support for  research and development in particular would have pay-offs in terms of the Australian industry's longer term competitiveness, and reflect the significant spill-over benefits of innovation. 

 

Assessment of Impacts:

 

Major parties affected by the decision are shipbuilders, suppliers to the shipbuilding industry, other industries, and the Government.  Precise estimates of the size of the benefits and costs involved are difficult to obtain.

 

Continuation of support will enable the Australian shipbuilding industry to maintain its current leading position in the international market.  The phase-out arrangements for the period

1 January 2001 to 31 December 2003 closely parallel those adopted in the European Union and mean the Australian industry will not suffer through a comparative misalignment of adjustment measures.

 

By directing a significant proportion of the support available to innovative activity, shipbuilders will be encouraged to integrate  research and development  into their competitive strategies.  The performance of well-directed  research and development is a crucial element in sustaining the Australian industry's current market position as a world leading supplier of lightweight shipping, such as fast ferries.

 

The major benefit is that it should ensure that Australian shipbuilders are not disadvantaged in international markets, and do not suffer unnecessary adjustment costs as the major shipbuilding economies move to lower assistance regimes.  This will mean the Australian industry is better placed to compete in the world market for fast ferries and luxury yachts and defend the leading position it has developed over the past 15 years.

 

Regional areas will also be major beneficiaries of a financially viable and internationally  competitive shipbuilding industry.  There are significant clusters of shipbuilding activity in Western Australia, Tasmania, and Queensland.

 

The regulatory burden is low.  There are currently 11 firms which are registered as eligible for bounty payments, and realistically there is a limited pool of potential new entrants.  The administration of the  construction  bounty will remain as at present, so for existing participants there will be no added burden.  New entrants will need to make an assessment of the cost and benefits of registering under the Act.  There will be significant benefits to the industry from the simplification of the phase-out provisions, to apply from 1 January 2001, compared with the current arrangements.  The administration of the  eligible research and development expenditure bounty  will involve some additional administrative burden on firms as they will be required to maintain records of eligible research and development and other eligible expenditures to claim the benefits. 

 

Consultation:

 

Consultation was very broad under the Shipbuilding Industry Review Panel.  The Review involved significant public consultation with stakeholder groups.  The Review received 47 written submissions.  All major shipbuilders were interviewed and agencies from the Tasmanian, Western Australian, and Queensland Governments made representations.

 

Conclusion:

 

The shipbuilding industry is a small but significant player on the world market, with a very high percentage of its output being exported.  The industry has relatively low levels of assistance, compared with its overseas rivals.  It is internationally competitive but selling into a global market which is corrupted by subsidies and other trade distorting measures.  This legislation forms part of a package of measures to maintain the industry on a sustainable competitive footing.  The transition measures to phase-out the  construction bounty recognise the intense competition in world markets and the distorting practices of overseas governments.  The introduction of a research and development expenditure bounty to encourage investment in new vessel designs and production processes will underpin the industry's future.

 

Implementation and Review:

 

Benefits will be delivered through the Ships Act .   The research and development expenditure bounty will be reviewed prior to its expiry on 30 June 2004.

 



NOTES ON CLAUSES

 

Clause 1 - Short title

 

This clause provides for the Act to be cited as the Bounty (Ships) Amendment Act 1999 .

 

Clause 2 - Commencement

 

The provisions of the Bill will commence on the day it receives the Royal Assent.

 

Clause 3 -  Schedule(s)

 

Each Act specified in the Schedule(s) is amended as set out in the Schedule(s).

 

Clause 4 - Transitional - registration

 

This  clause   provides for the registration of  applicant shipbuilders who  would otherwise have been disadvantaged  by the construction bounty cessation  provisions of the Ships Act.  It allows the Minister to register applicants as registered shipbuilders for all or part of the period commencing after 31 December 1997  and ending on  the day the Ships (Bounty) Amendment Act 1999 (the Act) commences (the commencing day).

 

This provision is necessary to remedy any injustice which would otherwise occur as a result of the extension of the construction bounty.

 

 From  1 January 1998, some unregistered shipbuilders may have completed the construction or modification of bountiable vessels.   In addition, some  unregistered shipbuilders may complete, after the commencement date,  the construction or modification of bountiable vessels which  were commenced prior to the  commencing day of the Act.  If  the shipbuilders were not able to satisfy the requirements of the Ships Act  at the relevant time, they  may not have sought registration, or  renewal of registration, to cover the entire period of construction or modification.  Alternatively, for business reasons specific to their company, they may have structured their  business in such a way as did  not comply with the Ships Act. 

 

Under section 17 of the Ships Act, the Minister may register an applicant for a period of one year commencing on such a day as is specified in the notice (issued pursuant to paragraph 17(3)(a)), which may occur before, on, or after the day of issue of the notice.  This means that the commencement of an  applicant’s registration can be on a date earlier than  the date of the notice issued pursuant to paragraph 17(3)(a).

 

However, a period of more than one year will have elapsed  between 1 January 1998 and the commencing day.  A shipbuilder, therefore, may need to be registered for two, or more, one year periods in order to be registered at all times during the construction or modification of the bountiable vessel.  While the  provisions of subsections 17(3) and 17(4)   provide for the Minister to issue a further registration notice,  a further application  must be made. 

 

This  clause  provides for  a person  to make a one-off application, after the commencing day, to be registered for a period commencing on the first day on which the applicant was not a registered shipbuilder, during a part of, or all of,  the period of construction or modification that occurred before the commencing day; and ending on the day of issue of the notice of registration. The application must however, be made within 30  days after the commencing day of the Act.

 

Clause 5 - Transitional - Claims

 

This  clause provides for the payment of claims for costs incurred by shipbuilders, registered pursuant to clause 4 of the Act,  who would have been otherwise disadvantaged by the cessation  provisions in the  Ships Act .

 

Paragraph 11(2)(d) of the Ships Act provides that a claim in respect of the construction or modification of a bountiable vessel shall be lodged  within 12 months of  the construction or modification being completed. With the extension of the bounty for vessels completed on or after 1 January 1998, however, it is possible that some vessels may have been completed more than 12 months prior to  the commencing day. Under these circumstances  the registered shipbuilder  will not  satisfy  the time limit for  lodging  claims for the bounty.

 

This clause provides for a claim to be lodged under section 11 of the Ships Act, for construction or modification which was completed after 31 December 1997 and more than 12 months before the commencing day.  The claim must however, be made within 30 days after the commencing day of the Act.

 

Clause 6 - Application - firm commitment requirement

 

This clause removes the firm commitment requirement,  set out  at  paragraph 8(3)(a) of the Ships Act, with effect from 1 January 1998 .

 

The consequence of this amendment is that, where a bountiable vessel has been completed on or after 1 January 1998 and before the commencing day of the Act, or is completed at any time after the commencing day  and on or before 31 December 2000, and all other eligibility requirements are satisfied , the registered shipbuilder is entitled to bounty  whether or not  there  was a  firm commitment in place  before 1 January 1998.

 

Clause 7 - Definition

 

This clause defines commencing day for the purpose of the Ships (Bounty) Amendment Act 1999.

 

 

Schedule 1 - Bounty (Ships) Act 1989

 

Item 1 - Section 3

 

This item takes account of the responsibility for the Ships Act now residing with the Minister for Industry, Science and Resources.  This item provides for the Secretary of the Department to have the general administration of the Ships Act.

 

Item 2 - Subsection 4(1) (definition of approved form)

 

This item takes account of the Secretary having general administration of the Ships Act.

 

 

Item 3 - Subsection 4(1)

 

This item clarifies the meaning of “approved hydrographic testing facility,” and provides for the Secretary to approve such facilities for the purposes of new subsection 10(3).

 

Item 4 - Subsection 4(1) (definition of authorised  officer)

 

This item defines “authorised officer”.

 

Item 5 - Subsection 4(1) (definition of bounty)

 

This item  redefines bounty to  include  the “eligible research and development expenditure bounty”. 

 

Item 6 - Subsection 4(1) (definition of CEO)

 

This item takes account of the Secretary having the general administration of the Ships Act.

 

Item 7 - Subsection 4(1) (definition of Collector)

 

This item takes account of the Secretary having the general administration of the Ships Act.

 

Item 8 - Subsection 4(1)

 

This item  clarifies  the meaning of  “eligible costs”.

 

Item 9 - Subsection 4(1)

 

This item clarifies the meaning of “eligible costs bounty”.

 

Item 10 - Subsection 4(1)

 

This item clarifies the meaning of “eligible research and development expenditure”.

 

Item 11 - Subsection 4(1)

 

This item clarifies the meaning of “eligible research and development expenditure bounty”.

 

Item 12 - Subsection 4(1)

 

This item defines “forecast eligible costs”.

 

Item 13 - Subsection 4(1)

 

This item defines “officer”.



 

Item 14 - Subsection 4(1)

 

This item clarifies the meaning of “other Commonwealth assistance”.

 

Item 15 - Subsection 4(1) (definition of period to which this Act applies)

 

This item extends the period to which the Ships Act applies to 30 June 2004.

 

Item 16 - Subsection 4(1) (at the end of the definition of registered shipbuilder)

 

This item provides for the definition of registered shipbuilder to include shipbuilders registered under the transitional registration provisions at new section 4.

 

Item 17 - Subsection 4(1)

 

This item defines “Secretary”.

 

Item 18 - Subsection 4(2)

 

This item takes account of the Secretary having the general administration of the Ships Act.  It provides for  the Secretary to determine the date  on which the construction or modification of a vessel is complete.  The date of completion of the construction or modification of the vessel determines  an applicant’s right to claim the bounty.

 

Item 19 - Subsection 5(1)

 

This item takes account of the removal of the firm commitment requirement under paragraph 8(3)(a) of the Ships Act, and the removal of the requirement, under subsections 8(3A) and 8(3B) of the Ships Act, for business plans as evidence of such a firm commitment.

 

See also Clause 6 and Item 28.

 

Item 20 - After section 5

 

This item sets out provisions relating to eligible research and development expenditure; eligible research and development activities; and other Commonwealth assistance.

 

New section 5A:

 

·          defines eligible research and development expenditure;

·          limits expenditure incurred to the period commencing on 1 July 1999 and ending on 30 June 2004; and

·          provides that where expenditure is incurred by a registered shipbuilder in carrying on eligible research and development activities on behalf of another registered shipbuilder, the expenditure is not eligible research and development expenditure.



 

New section 5B:

 

·          defines eligible research and development activities.  The interpretation of research and development is to focus on the innovation requirements of the shipbuilding industry, and provide for increased innovation within firms;

·          provides for eligible research and development activities to be carried on by, or on behalf of, a shipbuilder;

·          provides that the eligible research and development activities must be carried on during the period commencing 1 July 1999 and ending 30 June 2004;

·          provides for eligible research and development activities to be carried out overseas; and

·          provides that where the eligible research and development activities are carried on at an approved hydrographic testing facility, the activities must be for design and testing purposes.

 

New section 5B also provides for the Minister to determine, in writing, that a class of activity is not an eligible research and development activity.  Such determination is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 .    This  Ministerial  discretion is necessary to ensure that a focus on innovative activities is maintained, and to prevent leakage to peripheral activities which are inconsistent with the purpose of the eligible research and development expenditure bounty.

 

New section 5C provides:

 

·          that a shipbuilder has received other Commonwealth assistance if the shipbuilder has received and is entitled to Commonwealth financial assistance (other than bounty) for eligible research and development activities;

·          for the Minister to determine that a specified form of assistance provided by the Commonwealth is, or is not, financial assistance for the purposes of the section.  Such determination is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 ; and

·          that where the Minister determines that a form of assistance is financial assistance for the purposes of the section, the Minister may also specify the method by which the amount of assistance received is to be  calculated.

 

The amount of other Commonwealth assistance received by a shipbuilder is relevant to working out the amount of eligible research and development expenditure bounty to which the shipbuilder is entitled, (as explained at item 32, new subsection 10(2)). 

 

This Ministerial discretion is necessary to ensure that the Government can respond quickly to prevent the same eligible research and development activities, from attracting multiple Commonwealth financial assistance.  It is not possible, at this point in time, to specify the Commonwealth assistance measures which may exist in future years.

 

Item 21 - Subsection 6(1)

 

See Item  2.

 



 

Item 22 - After subsection 6(1)

 

This item  provides for the Secretary to determine expenditure which is to be taken to be the eligible research and development expenditure incurred by a shipbuilder in relation to the construction or modification of a bountiable vessel.  The provisions mirror existing provisions at section 6 of the Ships Act  for determining the eligible costs of construction or modification of bountiable vessels.

 

Item 23 - Subsection 6(2)

 

See Item  2.

 

Item 24 - Subsection 6(2)

 

This item extends the provisions at subsection 6(2) of the Ships Act to include eligible research and development expenditure.

 

Item 25 - Subsection 6(3)

 

See Item  2.

 

Item 26 - Subsection 6(3)

 

This item extends the provision at subsection 6(3) of the Ships Act to apply to new

subsection 6(1A).

 

Item 27 - Section 7

 

See Item 2.

 

Item 28 - Subsection 8(2) to (3B)

 

This item repeals the existing bounty phase out provisions, and introduces new Arrangements.

 

New subsections 8(2) and 8(3) provide for payment of the eligible costs bounty to be extended to construction or modification of a bountiable vessel, completed on or before 31 December 2003.

 

New subsection 8(3A) provides for payment of the eligible research and development expenditure bounty where full or part construction or modification of a bountiable vessel is undertaken, and, eligible research and development expenditure is incurred before the completion of construction or modification of a bountiable vessel.



 

New subsection 8(3B) limits the payment of the eligible research and development expenditure bounty to eligible research and development expenditure incurred in relation to construction or modification of a bountiable vessel,  on or before 30 June 2004.

 

New subsection 8(3C) provides that  the shipbuilder  must  be a registered shipbuilder at all times during the construction or modification of a bountiable vessel which is completed on or before 31 December 2000, in order to be entitled to payment of the eligible costs bounty in respect of that construction or modification.

 

New subsections 8(3D) sets out the conditions a shipbuilder must satisfy to be entitled to payment of the eligible costs bounty on the construction or modification of a bountiable vessel,

which is completed in the period after 31 December 2000 and on or before 31 December 2003.

 

New subsection 8(3E) sets out the details which must be included in the approved form (see new  subparagraph 8(3D)(d)(ii)).

 

New subsection 8(3F) provides that the shipbuilder must be registered at all times during the construction or modification in order to be eligible for payment of the eligible research and development expenditure bounty with respect to the construction and modification completed on or before 30 June 2004.

 

Item 29 - Subsection 9(1)

 

See Item 2.

 

Item 30 - Subsection 10(1) and Item 31 - At the end of subsection 10(1).

 

These items provide for the addition of new dates and rates for the eligible costs bounty.

 

New subsection 10(1) extends the bounty period to 31 December 2003.

 

New paragraph 10(1)(g) reduces the rate of bounty payable for the period 1 July 1999 to

31 December 2003, to the product of 1.2 x 3% x the amount of eligible costs incurred in this period. 

 

New paragraph 10(1)(h) provides that where the construction or modification of a bountiable vessel is completed between  1 January 2001 and 31 December 2003, the rate of bounty payable  will be the lesser of:

 

a)       the construction bounty entitlement, with actual incurred costs; and

b)       the construction bounty entitlement, with forecast costs. 

 



 

Item 32 - Subsection 10(2)

 

This item  provides for the payment of the eligible research and development expenditure bounty.

 

It repeals the existing phase out provisions in the Ships Act  and  inserts provisions for calculating the eligible research and development expenditure bounty.

 

New subsection 10(3) incorporates carryover provisions where the amount of  eligible research and development expenditure incurred  by the shipbuilder is more than the product of 1.2 x 2% x the amount of eligible costs as defined at  section 5 of the Ships Act. The carryover provisions enable the registered shipbuilder to ameliorate the incurred  eligible research and development expenditure, over subsequent bountiable vessels where the shipbuilder builds more than one bountiable vessel.

 

For example:

 

·          A shipbuilder claims bounty based on eligible research and development on the first bountiable vessel the shipbuilder completes after 1 July 1999.  The shipbuilder’s research and development costs amount to $1,000,000 and the eligible costs are $10,000,000.  1.0 x 50% of the research and development costs is equal to $500,000 and 1.2 x 2% of eligible costs is equal to $240,000.  Since 50% of the cost of the eligible  research and development is more than 1.2 x 2% of the eligible costs of the vessel, the bounty payment is equal to the 2% of the eligible costs ie, $240,000.

 

·          The shipbuilder then completes a second bountiable vessel, and conducts research and development directed to the second vessel in the amount of $50,000 and the eligible costs are $10,000,000.  50% of the research and development costs is equal to $25,000 and 1.2 x 2% of eligible costs is equal to $240,000.  Therefore, on a straight calculation of the rate of bounty, therefore, the shipbuilder would only be entitled to a bounty of $25,000 (as this is the lesser of the two amounts that flow from the calculation). 

 

·          This is, however, where the special arrangement will apply.  Where the amount of  research and development on the second vessel is less than 2% of eligible costs, or where there is no  research and development cost on the second vessel, the shipbuilder will be entitled to carry over the balance of the  research and development costs on the first vessel.  The bounty calculation will then be applied to this composite amount to determine the amount of bounty payable.

 

·          In the above example, the carryover amount is $520,000.  (This figure is the balance of the research and development on the first ship which did not have the bounty paid on it.  As $240,000 of bounty was paid, bounty was in effect paid on $480,000 of the original $1,000,000 of the amount spent on eligible research and development. The carryover balance, therefore, is equal to $1,000,000 minus $480,000 = $520,000.)  This is added to the $50,000 of research and development on the second vessel so that the research and development costs become $570,000 and 50% of this amount is $285,000.  Since this amount is greater than 1.2 x 2% of eligible costs of the second vessel, the shipbuilder is only entitled to bounty of $240,000.  There is, therefore, still some  research and development costs from both the first and second vessel which may be carried over to a third vessel completed by the shipbuilder.

 

·          The shipbuilder completes a third vessel and does not conduct any  research and development directed to this vessel.  The eligible costs on the third vessel are $10,000,000 and 1.2 x 2% of this is $240,000.  50% of research and development costs is $0 which is less than 2% of eligible costs.  The shipbuilder will therefore be entitled to carry over the balance of the  research and development on the previous two vessels to the third vessel.

 

·          The carryover amount is now equal to $90,000 and 50% of which is $45,000.  As 50% of the cost of the research and development is equal to only $45,000, and this is less than 1.2 x 2% of eligible costs, the shipbuilder will only be entitled to bounty of $45,000.  There is also no balance of research and development to be carried over to any further vessels completed by the shipbuilder.  

 

Where eligible research and development activities have attracted other Commonwealth assistance, the amount of assistance is included in the calculation of the shipbuilder’s adjusted eligible research and development expenditure.  This ensures that the shipbuilder does not receive multiple benefits for the same eligible research and development activities.

 

New subsection 10(3) also provides that the amount of eligible research and development expenditure incurred in relation to eligible research and development activities carried out overseas, on behalf of the shipbuilder, which can be claimed as eligible research and development expenditure bounty, is limited to 20% of the eligible research and development expenditure incurred in relation to eligible research and development activities carried out in Australia.

 

New paragraph 10(3)(a) provides an exception to the 20% limit, where the research and development activities carried on overseas, are design and testing activities conducted at an approved hydrographic testing facility.

 

Item 33 - Paragraph 11(2)(d)

 

See Item 1.

 

Item 34 - Subsection 11(3)

 

See Item  2.

 

Item 35 - Subsection 11(4)

 

See item 2.

 

Item 36 - Section 12

 

This item incorporates new terminology.

 

Item 37 - Subsection 12(1)

 

See item 2.

 

Item 38 - Paragraph 13(2)(d)

 

See item 1.

 

Item 39 - Subsection 13(4)

 

See item 2.

 

Item 40 - Subsection 13(5)

 

See item 2.

 

Item 41 - Paragraph 14(2)(d)

 

See item 1.

 

Item 42 - Subsection 14(4)

 

See item 2.

 

Item 43 - Subsection 15(1)

 

See item 2.

 

Item 44 - Subsection 15(2)

 

See item 2.

 

Item 45 - Subsection 15(3)

 

See item 2.

 

Item 46 - Subsections 17(7A), (7B), (7C) and (7D)

 

This item repeals the existing bounty phase out provisions in the Ships Act.  It removes the requirement for registered shipbuilders to submit business plans for construction or modification work during the period 1 January 1998 to 30 June 1999

 

Item 47 - Paragraph 18(1)(a)

 

See item 2.

 

Item 48 - Subparagraph 18(1)(a)(i)

 

See item 36.

 



 

Item 49 - After subparagraph 18(1)(a)(i)

 

This item provides for the Secretary to specify, by way of a notice published in the Gazette , the particulars relating to the incurring of eligible research and development expenditure for which eligible research and development expenditure bounty is or may be payable.  These provisions mirror existing provisions at subparagraph 18(1)(a)(i) of the Ships Act concerning particulars relating to the construction or modification of bountiable vessels for which bounty is or may become  payable.

 

Item 50 - Section 19

 

See item 2.

 

Item 51 - Section 20

 

See item 1.

 

Item 52 - Paragraph 21(1)(a)

 

This item extends the existing provision, with respect to the construction bounty, relating to entry on premises occupied by a registered shipbuilder, to include the power to inspect any bountiable vessel in respect of which an eligible research and development activity is being or is intended to be carried out.

 

Item 53 - After paragraph 21(1)(b)

 

This item extends the existing provision, with respect to the construction bounty,  relating to entry on premises occupied by a registered shipbuilder, to include the power to inspect any step in the carrying out of an eligible research and development activity.

 

Item 54 - At the end of subsection 21(1)

 

This item extends the existing provision, with respect to the construction bounty, relating to entry on premises occupied by a registered shipbuilder, to include the power to inspect and take copies of or take extracts from the accounts, books, documents and other records relating to eligible research and development activities.

 

Item 55 - Paragraph 22(2)(a)

 

This item extends the existing provision relating to entry on other premises, to apply to eligible research and development activity.

 

Item 56 - After paragraph 22(2)(b)

 

See item 55.

 



 

Item 57 - After paragraph 22(2)(c)

 

See item 55.

 

Item 58 - Paragraph 22(4)(a)

 

See item 55.

 

Item 59 - After paragraph 22(4)(b)

 

See item 55.

 

Item 60 - After Paragraph 22(4)(c)

 

See item 55.

 

Item 61 - Subsection 23(1)

 

This item extends the existing provision, with respect to the construction bounty,  relating to the power to require persons to answer questions or produce documents, to apply also to an eligible research and development activity.

 

Item 62 - Subsection 23(6)

 

See item 2.

 

Item 63 - Subsection 27(3)

 

See item 2.

 

Item 64 - Subsection 29(1)

 

See item 2.

 

Item 65 - Subsection 30(1)

 

See item 1.

 

Item 66 - Subsection 31(1)

 

See item 2.

 

Item 67 - Paragraph 31(1)(aa)

 

This item removes a condition of the existing phase out provisions of the Ships Act.

 

Item 68 - At the end of paragraph 31(1)(g)

 

This item extends the existing provisions, with respect to the construction bounty, relating to an applicant’s right of review, to also apply to transitional registration decisions made by the Minister pursuant to new subsection 4(3).

 

Item 69 - Paragraph 31(2)(a)

 

This item extends the existing powers of the Administrative Appeals Tribunal, to also apply to  eligible research and development expenditure.

 

Item 70 - Subsection 32(1)

 

See item 2.