This Act has been repealed and is no longer in force. It is retained for historical reference.
Jurisdiction
Commonwealth
Act Number
23 of 1946
Collection
act
Plain English Summary
7/10 complexity
What this law does, in plain terms
Establishes a new public corporation, the Overseas Telecommunications Commission (Australia) (the Commission), with corporate powers to own, run and manage Australia’s overseas telecommunication services (cable and radiocommunication) (ss. 8, 34).
Authorises the Commonwealth to enter into the multi‑government Agreement and Supplementary Agreement set out in the Schedules (s. 7, First and Second Schedules). Those Agreements create a Commonwealth Telecommunications Board (a consultative/central body) and set out how Partner Governments and national bodies will divide assets and pool certain revenues (First Schedule, Second Schedule, Third Schedule).
Requires the Commission to acquire specified overseas telecommunication assets located in Australia from named companies (the Company, i.e. Amalgamated Wireless (Australasia) Ltd, and, subject to arrangements, Cable and Wireless Limited) and to operate the services as national undertakings (s. 37; Preamble; First Schedule clauses 1–8).
Gives the Commission compulsory acquisition powers over property it requires for its purposes; vests acquired property in the Commission and converts prior rights into compensation claims (ss. 55–56). The law also authorises the Minister to act in the Commission’s stead pending its establishment (ss. 37(4), 63).
Sets out a compensation framework for owners affected by acquisition or by the statutory extinguishing of licences/agreements (Part IV: Compensation Board (s. 64) and procedures in ss. 66–73), including an administrative offer process, referral to a Compensation Board, and limited review to the High Court (ss. 67–69).
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Provides initial finance and financial rules: the Treasurer may advance funds (up to £3 million plus further parliamentary appropriations) to the Commission (s. 43) and determine terms of those advances (s. 44); the Commission must prepare estimates and is subject to audit (ss. 45, 48–49). Net profits are to be applied first to repay advances, then to approved development or payments, then as Minister/Treasurer direct (s. 52).
Sets employment and staffing rules for the Commission’s service, including recruitment qualifications, probation, transfer and protection rights for certain employees taken from the named companies, promotion and disciplinary appeal structures, and retirement/leave rules (Division 2: ss. 18–33).
Requires the Commission to obtain (and receive free of charge) licences, permissions or approvals needed under the Wireless Telegraphy Act for radiocommunication services (s. 74), to comply with international telecommunication and safety conventions (s. 35), and to consult the Commonwealth Telecommunications Board on rates and major service changes (s. 75).
Provides ministerial and executive controls and limits: Minister and Governor‑General powers over appointments, approvals and regulations, and limits on certain Commission transactions (e.g. Minister approval required for land purchases over £5,000, leases over five years, and external supply contracts over £5,000) (ss. 9–16, 38(2)–(3), 80).
Repeals earlier Wireless Agreement Acts and cancels the existing agreements specified with the Company (s. 3, s. 62).
Who this affects (directly)
The named private companies and their owners: Amalgamated Wireless (Australasia) Ltd and Cable and Wireless Limited (s. 37; First Schedule).
Owners of property and licence‑holders whose assets or authorisations are acquired or declared to be conducted only by the Commission (ss. 55–61).
Employees of the named companies whose work is taken over; some are entitled to appointment and protection of certain pension and service rights (s. 18(11)–(12)).
The Commonwealth executive: the Treasurer, Minister and Governor‑General have specific decision and approval powers (ss. 43–44, 38(2), 11, 15, 80).
Users of overseas telecommunication services and the Postmaster‑General (land‑line connections and service interchange provisions) (ss. 76–77).
What the legislative text says is the purpose (attributed claim)
The Preamble and schedules state that the measure gives effect to recommendations of a Commonwealth Telecommunications Conference and implements Agreements among Partner Governments intended "for promoting and co‑ordinating the efficiency and development of the telecommunications services of the British Commonwealth and Empire" and to place external telecommunications under national bodies. The Act therefore implements a transfer of ownership and national operation of specified overseas telecommunication assets (Preamble; First Schedule; ss. 7, 34, 37).
Testing that purpose against costs, incentives and trade‑offs (source‑grounded)
Who pays and how funds are managed
Upfront public funding: the Treasurer may advance up to £3 million (and additional parliamentary appropriations) for Commission start‑up and operations; the Treasurer determines repayment terms (ss. 43–44). The Commission’s net profits are first applied to repay those advances (s. 52).
Ongoing receipts and application of funds are regulated: the Commission keeps accounts (s. 48), is audited by the Auditor‑General (s. 49), and may invest reserves in Commonwealth securities (ss. 51, 47(c)).
The Commission pays the Postmaster‑General usual rates for land‑line connections, though some specified connections are free (s. 76).
Concentrated benefits and immediate transfers
Ownership and operational control of specified external telecommunication assets are transferred to a single public corporation (s. 37; ss. 55–56). That concentrates decision rights about overseas telecommunication provision in the Commission and in Partner Governments under the Agreement (First Schedule, Second Schedule).
Owners whose assets are acquired receive compensation governed by a specified administrative and adjudicative process (ss. 66–71). Employees of the formerly private operators who are working in relevant services get statutory protections to appointment and preservation of pension/superannuation rights in certain cases (s. 18(11)–(12)).
Effects on private enterprise, competition and contract freedom
The Governor‑General may proclaim that an overseas telecommunication service must be conducted only by or on behalf of the Commission; after that date private persons are barred from conducting those services and face a daily penalty (s. 60). Licences and agreements that enabled prior private operation are rendered ineffective on acquisition or proclamation unless the Minister directs otherwise (s. 61). The Act therefore replaces private operation in the specified domain with a statutory public monopoly when the proclamation is made (ss. 60–62).
Existing contractual relations with the Company are expressly cancelled (s. 62). The Commission is given broad contracting powers, including to contract out works and services, but procurement and property transactions are subject to ministerial approvals and monetary limits (ss. 39–41, 38(2)–(3)).
Price, service and regulatory change procedures
The Commission must consult the Commonwealth Telecommunications Board on matters affecting rates, route/service additions or withdrawal, and must obtain Minister approval before altering rates or instituting major service changes (s. 75). This imposes procedural checks on unilateral rate or service changes by the Commission.
Compliance costs and labour rules
Staffing rules require applicants to be British subjects, meet medical and oath requirements, and pass prescribed entrance examinations unless positions are exempted (s. 18(3)). The Act establishes promotion, appeal and disciplinary bodies (Promotions Appeal Board and Disciplinary Appeal Board) and detailed processes for appointment, promotion, probation and disciplinary appeals (ss. 21–31). These provisions create internal administrative and compliance regimes for employment.
Bureaucratic discretion and implementation risk
The Governor‑General and Minister have many appointment, termination, approval and regulation powers (e.g. appointment/termination of Commissioners (ss. 9–15), approval limits on land purchases and contracts (s. 38(2)–(3)), rule‑making power (s. 80)). The Treasurer determines advance terms and approves financial matters (ss. 44, 51–52). These discretionary powers centralise certain choices in the executive and create implementation dependencies on those offices.
Compensation valuation has a fixed reference date (value assessed to 1 January preceding acquisition, s. 57) which may not reflect later changes in market value and may therefore influence litigation and timing of claims (s. 57). The multi‑stage compensation process (administrative offer, Board assessment, High Court review) provides procedural safeguards but also creates potential for delay and legal costs (ss. 67–69).
Opportunity costs and alternative uses of funds
Public money is committed to acquisition and to forward‑funding the Commission (s. 43). Those funds could alternatively have been used for other public purposes; the Act channels them to takeover, operation and development of overseas telecommunications.
International and intergovernmental coordination
The Act integrates Commonwealth action into a multinational framework (Agreement and Supplementary Agreement) and imposes obligations to comply with international telecommunication conventions on the Commission (s. 35; First and Second Schedules). The Agreement establishes a Commonwealth Telecommunications Board to coordinate policy and to operate a Central Fund for revenues (First/Second/Third Schedules).
Who pays, who decides, and what behaviour changes (concise)
Who pays: initial funding by the Commonwealth via Treasurer advances and parliamentary appropriations (s. 43); ongoing payments and reimbursements from Commission revenues (ss. 47, 52); compensation paid to prior owners under Part IV (ss. 66–71); the Commission pays usual charges for Postmaster‑General land‑lines (s. 76).
Who decides: Governor‑General and Minister exercise appointment, approval and rule‑making powers (ss. 9–16, 38(2), 44, 80); the Commission makes operational decisions within statutory limits (s. 34); the Commonwealth Telecommunications Board has consultative and recommendation roles under the Agreement (Second Schedule, Third Schedule, s. 75).
What changes in behaviour the law forces: private holders of specified overseas telecommunications assets must transfer ownership or cease operation when the Commission acquires those assets or when a proclamation makes the Commission the sole operator (ss. 37, 55–61); employees may transfer into the Commission service with protected rights in defined cases (s. 18(11)–(12)); the Commission becomes the statutory vehicle for external telecommunication services and must operate within the international and intergovernmental framework set out in the Schedules (s. 35, First/Second/Third Schedules).
Implementation and compliance risks to note (source‑grounded)
The acquisition and compensation regime creates potential timing and valuation disputes (ss. 55–57, 66–69).
Several executive approvals and monetary thresholds require Minister/Treasurer sign‑off for significant transactions, which may slow procurement or expansion (s. 38(2)–(3), s. 44).
The need to coordinate with the Commonwealth Telecommunications Board and to comply with international conventions may limit the Commission’s independent freedom to set rates or negotiate foreign arrangements without consultation/approval (s. 75, s. 35).
Overall alignment with the stated objective
The Act converts the Preamble’s stated objective (national acquisition and operation of overseas telecommunication services and implementing the Partner Governments’ Agreement) into a statutory framework establishing a Commission, compulsory acquisition powers, a compensation and dispute resolution process, finance rules, staffing arrangements and an intergovernmental consultative structure (Preamble; ss. 7, 8, 34, 37; First and Second Schedules).