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Satellite Communications Amendment Bill 1988
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Legislative Research Service Department of the Parliamentary Library
satellite Communications Amendment Bill 1988
Date Introduced: 28 September 1988 House: House of Representatives Presented by: Hon. Ralph Willis, M.P., Minister for Transport and Communications
Digest of Bill
Purpose To allow Telecom employees lower in status than State Commissioner to be members of the AUSSAT Board of Directors.
Background AUSSAT Ply Ltd was established in November 1981 to establish, own and operate a national satellite system. Commercial operations commenced in 1985 with the launch of AUSSAT 1. The Memorandum and Articles of Association of AUSSAT initially required that 49% of the shares in the company be sold to the public whilst the Commonwealth retain 51 %. The Satellite Communications Act 1984 (the Principal Act) precluded shares being sold to the public, and since
1984 the Commonwealth has held 75% and Telecom 25% of the shares.
AUSSAT recorded an operating loss after tax of $5.296 million for 1987 - 88 (before tax $10.233 million). In 1987-88 sales from transponder services increased 30% from $59.4 million to $77.4 million (including commencement of two Remote Commercial Television Services for the North East and Central Australian zones). Sales'from other satellite based operations rose 190/0 from
$10.8 million to $12.9 million, principally from private network products for voice and data and closed circuit video applications. The total revenue achieved was $104.1 million. In June 1988 contracts were awarded to the Hughes Aircraft Company in the United States for the construction of two satellites to replace the two first generation satellites launched in 1985 and which are scheduled to end their service life in 1992 - 93. It appears that the second generation satellites will be launched by Chinese booster rockets.
The future direction of government transport and communication bodies was outlined on 25 May 1988 when a Ministerial Statement, titled 'Reshaping the Transport and Communications Government Business Enterprises', was tabled in the Senate. The Statement noted the increasing competition in international
markets, the rate of technological change and the pressures these and other factors exert on such bodies. 1
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In regard to AUSSAT, as with other agencies, a number of specific courses of action were outlined. Planning and accountability provisions are to be altered, with more emphasis on strategic plans and agreed financial targets. In addition, AUSSAT will be exempted from general administrative and personnel policies laid down by the Government; except where directed to comply, and will not require
Ministerial approval for contracts and individual borrowings.2
Main Provisions
Section 9 of the Principal Act limits the number of people associated with Telecom who can be AUSSAT directors to two, or 25% of the AUSSAT Board of Directors. In addition, Telecom appointed directors cannot be lower in status. than State Commissioner. Clause 4 will allow Telecom employees lower in status,_ '"
than State Commissioners to be members of the AUSSAT Board of Directors. -_ ) "-
Clause 5 will insert new sections 18A and 18B into the Principal Act which will exempt AUSSAT from the Public Works Committee Act 1969 and the Lands Acquisition Act 1955 in respect of acquisition of land by agreement.
References 1. AUSSAT, Annual Report 1987-88, pp. 24-27. 2. Reshaping the Transport and Communications Government Business Enterprises, 25 May 1988, pp. 29-30.
For further information, if required, contact the Law and Government Group.
20 January 1989 Bills Digest Service
Legislative Research Service
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This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
© Commonwealth of Australia 1989
Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval system, without the prior written consent of the Department of the Parliamentary Library. Reproduction is permitted by Members of the Parliament of the Commonweaith in the course of their official duties.
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