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BROADCASTING SERVICES AMENDMENT BILL 1994 [1995]

Order of the day read for the further consideration of the bill in

committee of the whole.

In the committee

Consideration resumed of the bill, as amended--and of the postponed

amendments moved by the Minister for Primary Industries and Energy

(Senator Bob Collins):

No. 1--After clause 2B, page 2, insert the following clause:

Foreign person not to be in position to control commercial television

broadcasting licence

"2C. Section 57 of the Principal Act is amended by omitting subsection

(2).".

No. 2--At end of bill, page 2, add the following clause:

Control--general

"6.(1) Schedule 1 to the Principal Act is amended:

(a) by inserting in the first paragraph of subclause 1(1)

"subscription television broadcasting licences,' after "radio

broadcasting licences,';

(b) by omitting from the second paragraph of subclause 1(1)

"commercial broadcasting'.

"(2) Schedule 1 to the Principal Act is amended:

(a) by omitting the 4th, 5th and 6th paragraphs of subclause 1(1)

and substituting:

"A person who has company interests exceeding 15% in a company is

regarded as being in a position to control the company.';

(b) by omitting from subclause 6(1) ", in the absence of proof to

the contrary,';

(c) by omitting subclause 6(2);

(d) by omitting from clause 7 "can still be expected to be' and

substituting "is to be regarded as being';

(e) by omitting from clause 7 "could ordinarily be expected to be'

and substituting "is to be regarded as being';

(f) by omitting from clause 7 all the words from and including "This

would, of course' to the end of the clause;

(g) by omitting from clause 8 "prima facie'.".

No. 3--At end of bill, page 2, add the following clause:

Grandfathering for changes to the control rules

"9.(1) If:

(a) apart from this section, a person (the "relevant person') would

be in breach of a particular control rule at a particular time

(the "test time') after the commencement of this section; and

(b) all the circumstances that are relevant to the breach were in

existence at the end of 27 June 1995 (the "grandfather time');

and

(c) the relevant person would not be in breach of that control rule

at the test time if the amendments made by section 2C and

subsection 6(2) of this Act had not been made; and

(d) the relevant person was not in breach of that control rule

immediately before the grandfather time;

then the relevant person is taken not to be in breach of that control

rule at the test time.

"(2) If:

(a) particular circumstances that are relevant to the breach arose

after the grandfather time; and

(b) the relevant person was not in a position to prevent those

circumstances arising;

those circumstances are taken for the purposes of subsection (1) to have

been in existence at the grandfather time.

"(3) If:

(a) particular circumstances (the "new circumstances') that are

relevant to the breach resulted from the allotment or issue,

after the grandfather time, of shares (the "new shares') in a

company to a person (the "recipient') who, immediately before

the grandfather time, held shares (the "old shares') in the

company; and

(b) the recipient received the new shares in accordance with rights

of a kind enjoyed by the recipient in common with other holders

of shares of the same class as the old shares;

the new circumstances are taken for the purposes of subsection (1) to

have been in existence at the grandfather time.

"(4) If:

(a) particular circumstances that are relevant to the breach consist

of the holding by a person of company interests in a company

that are greater than the company interests in that company that

were held by that person at the grandfather time; and

(b) that person was in a position to control that company

immediately before the grandfather time, and at all times from

the grandfather time to the test time;

those circumstances are taken for the purposes of subsection (1) to have

been in existence at the grandfather time. For the purposes of this

subsection, the question whether a person is in a position to control a

company is to be determined in accordance with the Principal Act as in

force immediately before the commencement of this section, but without

regard to clause 6 of Schedule 1 to the Principal Act.

"(5) In this section:

"circumstances that are relevant to the breach' includes the holding of

all company interests in any company by any person, so far as the

company interests can be relied on in establishing the breach, including

company interests that do not have to be relied on to establish the

breach;

"control rule' means:

(a) a provision of Division 2, 3, 4 or 5 of Part 5 of the Principal

Act; and

(b) a provision of Division 3 of Part 7 of the Principal Act (other

than section 109);

"shares' means shares in, or debentures of, a company.".

Debate resumed.

The question for the amendments was divided--

Question--That amendments nos 1 and 2 be agreed to--put.

The committee divided--

AYES, 30

Beahan Bell Bolkus Bourne Burns (Teller) Carr Chamarette Childs Coates Collins, Bob Collins, Jacinta Colston Cooney Crowley Denman Devereux Faulkner Forshaw Harradine Kernot Lees Margetts Murphy Neal Ray Reynolds Spindler West Wheelwright Woodley

NOES, 26

Abetz Alston Baume Boswell Brownhill Calvert Campbell Crane Ellison Ferguson Gibson Herron Kemp Knowles MacGibbon Minchin O'Chee Panizza (Teller) Parer Reid Short Tambling Tierney Troeth Watson Woods

Question agreed to.

Amendment no. 3 further debated.

Senator Margetts moved the following amendment to amendment no. 3:

After proposed subclause 9(4) insert the following subclause:

"(4A) If, after the commencement of this section, the relevant person

increases his or her company interests in a company referred to in

this section (other than an increase of the kind referred to in

paragraph (3)(b)) and that increase is voluntary or could have been

prevented by the person, the grandfathering provided for by this

section is taken not to apply to the person.".

Debate ensued.

Question--That Senator Margetts's amendment to amendment no. 3 be agreed

to--put.

The committee divided--

AYES, 8

Bell Bourne (Teller) Chamarette Kernot Lees Margetts Spindler Woodley

NOES, 35

Alston Baume Boswell Brownhill Burns Calvert (Teller) Carr Childs Coates Collins, Bob Collins, Jacinta Colston Cooney Denman Devereux Ferguson Forshaw Harradine Herron Knowles Macdonald, Ian MacGibbon McKiernan Murphy Neal Parer Reid Reynolds Sherry Tambling Tierney Troeth Watson West Wheelwright

Question negatived.

Debate continued.

Question--That the amendment be agreed to--put.

The committee divided--

AYES, 31

Alston Baume Burns (Teller) Calvert Carr Childs Coates Collins, Bob Collins, Jacinta Colston Cooney Crane Denman Ferguson Forshaw Harradine Herron Knowles Macdonald, Ian MacGibbon McKiernan Murphy Neal Parer Reynolds Tambling Tierney Troeth Watson West Wheelwright

NOES, 8

Bell Bourne (Teller) Chamarette Kernot Lees Margetts Spindler Woodley

Question agreed to.

Bill, as amended, agreed to.

Bill to be reported with amendments.

The Acting Deputy President (Senator Colston) resumed the Chair and the

Temporary Chairman of Committees (Senator Herron) reported accordingly.

On the motion of Senator Bob Collins the report from the committee was

adopted and the bill read a third time.