Trading concern. The Act’s foundational concept is defined in s 4(3) as “any concern carried on with the view to making profits or producing revenue, or of competing with any trade or industry now or to be hereafter established, or of entering into any business beyond the usual functions of State Government.” This tripartite test is disjunctive: an activity need only satisfy one limb. The phrase “beyond the usual functions of State Government” is deliberately open-ended but anchors the definition in a comparison with core government activities. The Schedule historically identified specific concerns by name and nature of operations, but the definition applies to any new concern authorised under s 4A or 4B.

Minister as body corporate. Section 6(2) provides that the Minister charged with the administration of a trading concern is a body corporate with perpetual succession and an official seal. The Minister may hold real and personal property, sue and be sued in contract or tort in respect of any matter relating to or connected with the trading concern. This corporate status insulates the Crown from direct liability: s 6(5) prohibits a petition of right or other proceeding against the Crown for any matter in respect of which an action may be brought against the Minister. On appointment, all property, assets, and rights previously vested in the Crown for the purposes of the concern vest in the Minister, and all liabilities of the Crown in respect of the concern become liabilities of the Minister (s 6(3)). The Minister is the legal person through whom the concern operates.

Authorisation mechanisms. The Act creates three routes by which a trading concern can lawfully exist. First, the Schedule lists specific concerns that may be continued (s 3). Second, Parliament may authorise the establishment of new concerns by an Act and declare them subject to the State Trading Concerns Act (s 4(1)(b)). Third, regulations may authorise a trading concern if (a) it is carried on by a prescribed financial entity, (b) it consists of a prescribed activity (goods, information, intellectual property, scientific/technical/educational/training/management/advisory services, or advertising opportunities), and (c) the fee or charge for the activity has been approved by the Minister responsible for the financial entity (s 4A(2)). Section 4B provides a parallel authorisation for statutory corporations (including a Minister or chief executive officer constituted as a body corporate), allowing them to carry on the same categories of prescribed activities, even if the corporation’s constituting Act generally prohibits entry into business undertakings, provided another enactment does not expressly prevent the activity (s 4B(5)).

Financial administration. Each trading concern has an agency special purpose account established under s 16 of the Financial Management Act 2006 (s 7). All moneys received or expended in connection with the concern’s operations are credited or debited to that account. The Treasurer may direct how profits and losses are treated for each financial year, but any profit available in cash and not required for the purposes of the concern must be credited to the Consolidated Account (s 18). The concern must also be charged with interest and sinking fund contributions on capital drawn from the Consolidated Account, at rates fixed by the Treasurer (ss 8, 9). The Treasurer determines the amount of depreciation of each concern’s assets (s 15).

Working capital and deficiency. Section 17 provides a mechanism for meeting a deficiency: if revenue receipts are insufficient to meet working expenses, the deficiency is provided out of working capital shown in the Schedule (which may be outdated) or by parliamentary appropriation. If the concern’s funds are insufficient, it may borrow from the Treasurer.

The Act directly affects the following classes of entities and persons.

Ministers of the Crown. Any Minister charged by the Governor with the administration of a trading concern becomes the legal operator of that concern. The Minister is incorporated for that purpose and can hold property and be sued in that capacity (s 6). This is a distinct legal persona from the Minister’s ministerial office, created solely for the concern.

Financial entities. Section 4A defines a financial entity as a department of the Public Service or an entity forming part of a department that has an accountable authority other than the department’s CEO. These entities may carry on prescribed trading activities (subject to s 4A(2)) if the relevant Minister approves the fees or charges. The Minister responsible for the financial entity can delegate approval to the accountable authority (s 4A(4)). The entity itself is the actor but carries on the concern “for the State” (s 4A(5)).

Statutory corporations. Section 4B gives a broad range of statutory corporations (including a Minister or CEO constituted as a body corporate under an Act, and any other body corporate constituted for a public purpose under an Act and an agency of the Crown) the power to carry on prescribed activities. This class includes bodies such as the Western Australian Meat Commission (historically) and modern equivalents. The responsible Minister must approve fees or charges, with delegation possible to the accountable authority or CEO (s 4B(7)). A Minister who is a statutory corporation may delegate the power to fix fees to the CEO of the agency principally assisting that Minister (s 4B(8)).

The Treasurer. The Treasurer has substantial control over the finances of each trading concern: fixing interest and sinking fund contributions (s 8), determining rates of interest on capital from the Consolidated Account (s 9), valuing use of government property and services (s 10), approving credit or debit card administration fee amounts (s 5A), directing investment of surplus funds (s 12), determining depreciation (s 15), approving borrowing (s 17), directing the treatment of profits and losses (s 18), and settling disputes between a trading concern and a government department with finality (s 27).

Other government departments. Departments that provide property or services to a trading concern are affected by s 10, which requires the Treasurer to debit the concern’s account for the value of those resources. The debited amount is treated as revenue to the Consolidated Account or as a rebate to the departmental vote, depending on whether the vote has already been debited.

Persons dealing with trading concerns. Members of the public who receive goods or services from a state trading concern are affected by the commercial nature of the operation: they may be charged fees approved under the Act, including credit or debit card administration fees (s 5A). They can sue the Minister in contract or tort (s 6(2)) but cannot bring a petition of right against the Crown for the same matter (s 6(5)). The Act also impacts persons who lease assets from or sell assets to a trading concern, as the Minister has power to sell or lease any trading concern with Governor in Council approval (s 25), and the Act permits transfers of assets between concerns (s 24).

Parliament. Parliament retains appropriation power over funds for establishment or carrying on of any concern (s 5) and must approve new concerns not already within the Schedule or the regulation-based authorisations (s 4(1)(b), 4(2)). Under s 4B(10), certain contracts entered into by a statutory corporation for an advertising-type activity must be laid before each House of Parliament within 6 sitting days.

Duty to operate within the Act’s authorisation. No trading concern may be established or carried on by the Government of the State or by any person acting on its behalf unless it is listed in the Schedule, authorised by a separate Act, or authorised under s 4A by regulation (s 4(2)). This is a prohibition that imposes a duty on all government actors to ensure any commercial activity has a legal basis. A financial entity carrying on a prescribed activity under s 4A must ensure the fee or charge has been approved by the Minister responsible (s 4A(2)(c)). A statutory corporation carrying on a prescribed activity under s 4B must also obtain such approval for any fee or charge (s 4B(3)). Failure to comply does not attract a penalty under this Act, but the activity would be unauthorised and potentially expose the entity to legal challenge.

Duty to maintain separate accounts. The Minister must ensure that all moneys received or expended in connection with the concern’s operations are recorded in the agency special purpose account (s 7). This duty ensures financial transparency and enables the Treasurer to monitor the concern’s performance. The Minister must also allow the application of the Financial Management Act 2006 and the Auditor General Act 2006, which impose duties of financial administration, audit, and reporting (s 14).

Duty to pay interest and sinking fund contributions. The Treasurer is obliged to determine and debit amounts for interest and sinking fund contributions each year (s 8(1)). The Minister must ensure these entries are made, as they affect the concern’s financial position. Similarly, interest on capital expenditure from the Consolidated Account must be charged in the concern’s books and credited half-yearly or as directed by the Treasurer (s 9(1)).

Duty to account for depreciation and profit. The Treasurer must determine the amount of depreciation of the concern’s assets (s 15). Once ascertained, profit or loss for each financial year must be treated as the Treasurer directs, with any profit available in cash and not required for the concern’s purposes credited to the Consolidated Account (s 18). This directs surplus revenue back to the central budget rather than allowing the concern to accumulate cash.

Rights of the Minister as body corporate. The Minister has the right to hold real and personal property, sue and be sued, and use the concern’s name as determined by the Governor (s 6(2)). The Minister may sell or lease the trading concern with the approval of the Governor in Council (s 25). The Minister also has the right to transfer assets between trading concerns, subject to Treasurer’s direction (s 24). In the event of a deficiency, the Minister has the right to borrow from the Treasurer (s 17(2)).

Rights of financial entities and statutory corporations. A financial entity carrying on an authorised trading concern has the right to impose fees or charges, provided the amount is approved by the relevant Minister (s 4A(2)(c)). A statutory corporation has the right to carry on prescribed activities despite a general prohibition on business undertakings in its constituting Act, unless another enactment expressly prevents the activity (s 4B(5)). This is a powerful override. Statutory corporations also have the right to impose credit or debit card administration fees, capped by Treasurer approval (s 5A).

Rights of persons dealing with the concern. Any person may sue the Minister in contract or tort in respect of any matter relating to or connected with the trading concern (s 6(2)). This right is exclusive: no petition of right or proceeding may be maintained against the Crown for such matters (s 6(5)). Thus, the counterparty’s remedy is against the Minister’s corporate persona, not the Crown. The Act does not create any tort or cause of action; it merely provides that the Minister can be sued in those forms of action.

Dispute resolution. Any matter in dispute between a trading concern and a government department arising out of the concern’s operations must be referred to the Treasurer, whose decision is final (s 27). This creates a binding internal mechanism that ousts the jurisdiction of courts for such intergovernmental disputes.

The State Trading Concerns Act 1916 does not create any specific criminal offences or civil penalties for contravention of its provisions. Enforcement is achieved through indirect mechanisms rather than through a dedicated penalty regime. The most significant enforcement lever is the prohibition in s 4(2): “No trading concerns, other than those to which this Act applies or shall apply, shall unless expressly authorised by Parliament or under section 4A be hereafter established or carried on by the Government of the State or by any person acting on behalf of such Government or under its authority.” A breach of this prohibition would render the activity ultra vires the government actor and could be challenged by judicial review. A person with standing could seek a declaration that the activity is unlawful and an injunction to restrain it. The Crown (or the Minister) might also be liable for moneys had and received if fees were collected without authority, though the Act does not create a statutory restitutionary right.

Financial accountability is enforced through the application of the Financial Management Act 2006 and the Auditor General Act 2006 (s 14). Those Acts contain their own enforcement provisions, including offences relating to misuse of public money, failure to keep proper accounts, and obstruction of the Auditor General. Section 14 makes it clear that those Acts “regulat[e] the financial administration, audit and reporting of statutory authorities” and apply to every trading concern and its operations. This means that the accountable authority of the financial entity or statutory corporation operating the concern can be held personally liable for breaches of financial management duties under the Financial Management Act 2006.

The Treasurer’s power to direct the treatment of profit and loss (s 18) and to decide disputes between a concern and a government department (s 27) is final and not subject to appeal. Section 27 provides that the decision of the Treasurer is “final.” A party aggrieved by the Treasurer’s decision may be able to seek judicial review for jurisdictional error, but there is no statutory right of appeal.

The Minister, as a body corporate, may be sued in contract or tort (s 6(2)). This provides a direct route for enforcement by private parties: a customer who suffers damage from defective goods or services provided by the concern can bring an action against the Minister for breach of contract or negligence. Similarly, a supplier who is not paid can sue for the price. The Minister’s corporate status means that a judgment debt can be enforced against the property held by the Minister for the concern, subject to any Crown immunity that might otherwise apply. However, s 6(5) bars any petition of right or proceeding against the Crown for the same matter, confining enforcement to the Minister’s corporate persona.

Borrowing by a trading concern from the Treasurer (s 17(2)) is likely documented by a loan agreement that creates contractual obligations. Default would be a matter for the Treasurer to address administratively, possibly by withholding funds or directing the concern’s accounts.

Overall, the Act relies on administrative oversight by the Treasurer, parliamentary appropriation control, audit by the Auditor General, and private law remedies rather than criminal sanctions.

The Act expressly interacts with several other pieces of Western Australian legislation, and its provisions also operate against the background of general law.

Financial Management Act 2006 and Auditor General Act 2006. Section 14 provides that the provisions of these Acts “regulating the financial administration, audit and reporting of statutory authorities apply to and in respect of every trading concern and its operations.” This means that the trading concern must maintain accounts, prepare annual financial statements, and be audited by the Auditor General in the same manner as a statutory authority. The Financial Management Act 2006 also governs the establishment of the agency special purpose account for each concern (s 7 refers to s 16 of that Act). The interaction ensures consistent government-wide financial governance.

Constitution of statutory corporations. Section 4B(5) provides that the power to carry on a prescribed activity under that section “has effect even if the Act under which a statutory corporation is constituted imposes a general prohibition or restriction on entry by the statutory corporation into business undertakings or arrangements.” This overrides general prohibitions in constituting Acts. However, the subsection contains a critical savings clause: s 4B(5) does not authorise an activity if “another enactment expressly prevents the statutory corporation from carrying on that activity.” For example, if the Water Services Act 2012 (fictional) expressly says a water corporation cannot engage in advertising sponsorship, the s 4B authorisation would not overcome that express prohibition. The interaction is therefore one of partial override with an express-prevention exception.

Abattoirs Act 1909 and related meat industry legislation. Section 26C transferred The West Australian Meat Export Works to the Western Australian Meat Commission under the Abattoirs Act 1909. The note to the compilation table indicates that the Western Australian Meat Commission no longer exists following the expiry of the Marketing of Meat Act 1971. This interaction shows that the State Trading Concerns Act can be used to transfer a concern out of its regime and into another statutory framework.

State Engineering Works Act 1984 (repealed). The Schedule originally listed the State Implement and Engineering Works. By operation of the State Engineering Works Act 1984 s 39 (see notes), references to the State Implement and Engineering Works are to be read as references to the State Engineering Works of Western Australia established under that Act. That Act was subsequently repealed in 1988, so the reference is now historical. The interaction demonstrates how the Schedule can be indirectly amended by other legislation.

Public Sector Management Act 1994. Section 4B(1) defines “chief executive officer” by reference to s 3 of that Act. This links the Act’s definitions to the general public sector framework, ensuring that a CEO who is a statutory corporation (e.g., the Commissioner of Police if so constituted) falls within the s 4B authorisation.

Crown proceedings and immunity. Section 6(5) ousts the petition of right and any proceeding against the Crown for matters in respect of which an action may be brought against the Minister. This modifies the general law of Crown liability under the Crown Suits Act 1947 (WA). The effect is that a person must sue the Minister as body corporate, not the Crown, thereby shifting the nominal defendant.

Interpretation Act 1984. The Act uses standard definitions such as “Minister” and relies on the Interpretation Act for matters not expressly defined. The compilation table shows the Act has been reprinted under the Reprints Act 1984.

Competition and consumer legislation. The Act does not directly address the Competition and Consumer Act 2010 (Cth) or the Australian Consumer Law. State trading concerns are likely to be “corporations” for constitutional purposes (given they are Ministers incorporated under state law, they might fall within the definition of “trading corporation” under the Commonwealth Constitution s 51(xx), but this is a complex constitutional question not resolved in the Act). The Act does not confer any immunity from competition or consumer laws; indeed, the definition of trading concern includes competing with trade or industry, suggesting the concern expects to operate in markets subject to those laws.

The Act has been amended many times since its enactment in 1916. Key amendments include:

1930 (No. 46 of 1930). Amended s 25 to permit the Minister to sell or lease trading concerns with Governor in Council approval.

1950 (No. 10 of 1950). Inserted s 26A providing for the discontinuance of the State Quarry, Boya, and dissolution of its corporate body, with assets revesting in the Minister for Works.

1956 (No. 26 of 1956). Inserted s 26B amalgamating the State Saw Mills and State Brick Works into a single concern called State Building Supplies, vesting all property and liabilities in the new Minister as body corporate. The Schedule was amended to replace the separate entries with the combined name.

1984 (No. 66 of 1984). Section 41 of the State Engineering Works Act 1984 deleted s 7A (which had been a transitional provision) and also amended the Schedule by operation of other provisions.

1985 (No. 98 of 1985). Significant amendment: deleted ss 11, 16, 19-22; inserted new ss 14 and 15 on application of financial administration Acts and depreciation; amended s 17 on deficiency provisions; inserted s 23A (later deleted). This modernised the financial provisions.

1993 (No. 6 of 1993). Amended ss 8, 9, 10, 18 to update references to the Consolidated Account following financial administration reforms.

1996 (No. 49 of 1996). Amended s 7 and s 9, and s 18, updating references to the Financial Administration and Audit Act (now replaced by the Financial Management Act 2006).

1997 (No. 18 of 1997). Inserted s 4A, adding the regulation-based authorisation for financial entities to carry on prescribed activities. Also inserted s 28 giving the Governor a general regulation-making power.

1999 (No. 45 of 1999). Inserted s 4B, extending similar authorisation to statutory corporations. Amended the long title. Also inserted s 26D (later deleted).

2006 (No. 77 of 2006). Extensive amendment: replaced references to the repealed Financial Administration and Audit Act with references to the Financial Management Act 2006 and Auditor General Act 2006. Amended ss 4A, 4B, 7, 8, 9, 10, 12, 14, 18, Sch 1 cl 162.

2010 (No. 17 of 2010). Inserted s 5A authorising credit and debit card administration fees by statutory corporations, subject to Treasurer approval. Also (No. 19 of 2010) standardised formatting of the Schedule heading.

2014 (No. 17 of 2014). Amended s 8 (removing reference to deleted subsection (2)) and deleted s 26 (which had related to the State Brickworks, now superseded by the amalgamation).

The Act has been reprinted several times (1973, 1997, 2004, 2010). The current version reflects all amendments up to 2014.

The State Trading Concerns Act 1916 has generated very little reported litigation. The Act itself contains no reference to any case law. The most likely source of litigation would be claims against the Minister under s 6(2) in contract or tort, but no significant decisions involving the interpretation of the Act’s provisions are recorded in standard legal databases. The dispute resolution mechanism in s 27 (referral to the Treasurer with final decision) likely prevents many disputes from reaching court, as matters between a trading concern and a government department are resolved internally. The absence of reported case law may also reflect the relatively small scale of the concerns in modern times; most have been wound up or transferred to other regimes. The Act’s long period of quiescence from 1956 to 1997, with only minor amendments, suggests it was seldom invoked. The insertion of ss 4A and 4B in 1997 and 1999 was prompted by a desire to avoid the need for case-by-case legislation, and it is possible that some challenges to the validity of fee-setting by government agencies were considered, but no such cases are cited in the Act or its notes.

Practitioners should be aware that the Act has been the subject of interpretive questions concerning the scope of “trading concern” (s 4(3)) and whether particular activities fall within the s 4A or 4B authorisations. These would be resolved by judicial review if a party challenged an agency’s authority to charge for services. The Act’s interaction with the Crown Suits Act 1947 has rarely been litigated, but the bar on petitions of right in s 6(5) is clear. Any litigation involving a state trading concern would likely centre on the Minister’s capacity to be sued, the validity of the authorisation for the activity, or the application of the Financial Management Act 2006 accounting requirements.

The prohibition applies to any person acting on behalf of the Government. Section 4(2) prohibits not only the Government itself but also “any person acting on behalf of such Government or under its authority.” This means that a private contractor carrying out a government function that amounts to a trading concern without parliamentary or regulatory authorisation would be in breach of the Act. The person might be an agent, contractor, or statutory officer.

Section 4B(5) override is limited by express prohibition. A statutory corporation cannot rely on s 4B to carry on an activity if “another enactment expressly prevents” it. The word “expressly” is key: a general restriction on business undertakings is overridden, but a specific prohibition in a different Act will prevail. For example, if a public university’s constituting Act says “the University shall not undertake any commercial advertising sponsorship,” that express prohibition would survive s 4B(5). Practitioners must check the specific Act of the statutory corporation.

The Schedule’s capital figures may be misleading. The Schedule shows “Amount of Fixed Capital at 30 June 1916” and “Working Capital” for each concern, but these figures are not maintained. They are now shown as blank or zero in the reprinted text. However, s 17 still refers to “the working capital shown in the Schedule” as a source for meeting a deficiency. If the Schedule shows no working capital, the deficiency must be provided by parliamentary appropriation. Relying on the Schedule as an accurate statement of current capital would be a mistake.

Credit and debit card administration fees are not carte blanche. Section 5A allows a statutory corporation to impose a fee for payment by card, but the amount must not exceed the amount approved by the Treasurer. The Treasurer can approve different amounts for different types of cards. If a corporation sets a fee without approval, or above the approved amount, the fee is unauthorised and likely not recoverable. This could lead to refund claims.

The Minister as body corporate can be sued, but the Crown cannot. This is a double-edged sword for plaintiffs. If a person sues the Crown directly for a trading concern matter, the action may be struck out because s 6(5) bars it. The proper defendant is the Minister. Identifying which Minister is the correct body corporate may require checking the current Governor’s charge. The Governor may change the responsible Minister without notice.

Disputes between trading concern and a government department are finalised by the Treasurer. Section 27 gives the Treasurer final decision-making power. This ousts the court’s jurisdiction for such intergovernmental disputes. However, it does not prevent a private party from suing the concern or the department. The section is limited to disputes “arising out of the operations of such trading concern” and involving “any Government department.” If a private contractor has a dispute with the concern, they can still go to court.

The definition of trading concern includes “competing with any trade or industry.” This is extremely broad. A government agency that provides a service that competes with a private business (e.g., a public consultation service that directly competes with private consultants) could be a trading concern even if it makes no profit. The agency must ensure it has authorisation under s 4A or 4B, or it might be acting unlawfully.

Regulations under s 4A and 4B must be made. The Act itself does not list the prescribed financial entities or prescribed activities. These are set by regulation. If a practitioner is unsure whether an activity is authorised, they must check the current regulations (likely the State Trading Concerns Regulations). Relying solely on the Act without checking the regulations would be incomplete.

Amalgamation and discontinuance provisions may still affect historical concerns. Sections 26A, 26B, and 26C are still in force, but the concerns they refer to (State Quarry, Boya; State Saw Mills/State Brick Works; West Australian Meat Export Works) have long since been abolished or transferred. However, a question of property rights could arise if assets were not properly dealt with. The Act vests property in the Minister or successor bodies; practitioners dealing with old government property should check these sections.

Compliance with the State Trading Concerns Act 1916 requires a three-step analysis before any government agency begins a commercial activity.

Step 1: Determine whether the activity is a trading concern. Apply the definition in s 4(3). If the activity is carried on with a view to making profits or producing revenue, or competing with any trade or industry, or entering into any business beyond the usual functions of State Government, it is a trading concern. Even a modest fee-for-service activity can fall within this definition. If the activity is a core government function (e.g., issuing passports) and does not compete with private enterprise, it may not be a trading concern. However, the test is broad.

Step 2: Identify the legal basis for carrying on the trading concern. The activity must be either (a) listed in the Schedule (s 3), (b) authorised by a separate Act of Parliament (s 4(1)(b)), or (c) authorised by regulation under s 4A (for financial entities) or s 4B (for statutory corporations). If the activity is not within one of these three categories, it is prohibited by s 4(2). The agency must check the current regulations to see if its activity is prescribed and if it is a prescribed financial entity or statutory corporation. If not, the agency must seek an amendment to the regulations or a specific Act of Parliament.

Step 3: Ensure the financial and administrative requirements are met. For a financial entity carrying on a prescribed activity under s 4A: the fee or charge for the activity must have been approved by the Minister responsible for that entity (or by a delegate, s 4A(4)). The approval can be of the amount or of the manner of determining the amount (s 4A(3)). The entity must operate through an agency special purpose account (s 7) and comply with the Financial Management Act 2006 and Auditor General Act 2006 (s 14). The Treasurer will determine interest, depreciation, and profit treatment.

For a statutory corporation carrying on a prescribed activity under s 4B: the fee or charge must be approved by the Minister responsible for the corporation (or by a delegate, s 4B(7); if the statutory corporation is a Minister, delegation to the CEO is allowed, s 4B(8)). The corporation must also comply with the financial management Acts (s 14). If the activity involves advertising-type contracts under s 4B(2)(c), the corporation must include in its annual report the identity of the parties, term, and fee, and any other relevant information (s 4B(9)). For contracts of a prescribed type or containing a prescribed provision, the Minister must lay a copy before each House of Parliament within 6 sitting days (s 4B(10)). The corporation should check whether any such regulations have been made prescribing contract types or provisions.

If the concern imposes credit or debit card administration fees, it must obtain Treasurer approval for the fee amount, which can differ per card type (s 5A). The fee must not exceed the approved amount.

The trading concern must also maintain proper books and records under the Treasurer’s direction, including entries for interest and sinking fund contributions (s 8), interest on capital from the Consolidated Account (s 9), charges for use of government property or services (s 10), and depreciation (s 15). Profits available in cash not required for the concern must be credited to the Consolidated Account (s 18). If a deficiency arises, the concern may need a parliamentary appropriation or may borrow from the Treasurer (s 17).

Any dispute with another government department must be referred to the Treasurer for final decision (s 27). The Minister as body corporate should ensure that all contracts are executed in the concern’s name and that the other party understands they are dealing with the Minister in that capacity, not the Crown, to avoid confusion over liability.

Finally, if the concern is to be sold or leased, the Minister must obtain approval from the Governor in Council (s 25). Transfers of assets to or between concerns require Treasurer’s determination of interest and sinking fund adjustments (ss 23, 24).