Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

This Bill is cognate with the Electricity Industry Restructuring Bill 2008.

Overview of Bill

The object of this Bill is to establish a Community Infrastructure (Intergenerational)
Fund into which the net proceeds of the restructuring of the State’s electricity
industry (under the proposed Electricity Industry Restructuring Act 2008) are to be
paid. The Fund is to be used for the purpose of funding capital works and other public
purposes approved by the Treasurer.

The Bill sets as the minimum balance for the Fund the amount that would need to be
invested at the long-run rate of return for a balanced fund in order to generate an
income equivalent to the dividend and tax equivalent income expected from State
electricity assets transferred to the private sector under the proposed Electricity
Industry Restructuring Act 2008. The minimum balance is indexed for inflation.

Outline of provisions

Part 1 Preliminary
Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent
to the proposed Act.

Clause 3 defines certain words and expressions used in the proposed Act.

Part 2 NSW Community Infrastructure
(Intergenerational) Fund
Clause 4 establishes the NSW Community Infrastructure (Intergenerational) Fund in
the Special Deposits Account.

Clause 5 provides for payments into the Fund, including payment of the money
required to be paid into the Fund under the proposed Electricity Industry
Restructuring Act 2008 as the net proceeds of the restructuring of the State’s
electricity industry under that Act.

Clause 6 provides for the Fund to be applied for the purpose of the funding of capital
works and other public purposes approved by the Treasurer. Payments can also be
made for administrative expenses and deductions authorised for the purposes of the
electricity industry restructuring.

Clause 7 limits payments from the Fund for the funding of capital works and other
public purposes by imposing the minimum balance requirement described in the
Overview.

Clause 8 requires the Treasurer to report on payments from the Fund during each
financial year.

Clause 9 provides for money in the Fund to be invested in the manner authorised by
the Public Authorities (Financial Arrangements) Act 1987.

Part 3 Miscellaneous
Clause 10 provides for the delegation of the Treasurer’s functions under the
proposed Act.

Clause 11 is a general regulation-making power.

Clause 12 requires the proposed Act to be reviewed 5 years after it is enacted.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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