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

Overview of Bill

The Growth Centres (Development Corporations) Act 1974 currently provides that
development corporations constituted for the purpose of that Act consist of:

(a) not less than 4 persons appointed by the Governor, and

(b) the chief executive of the development corporation, and

(c) unless the Director-General of the Department of Planning is acting as the
chief executive—that Director-General.

These persons act as the governing body of the development corporation (informally
known as the board of the development corporation).

The object of this Bill is to amend the Growth Centres (Development Corporations)
Act 1974 to provide that:

(a) development corporations may be governed by a board or be governed by a
chief executive, and

(b) the Growth Centres Commission is to be converted to a development
corporation governed by a chief executive.

The Bill also makes a number of law revision amendments.

Outline of provisions

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 is a formal provision that gives effect to the amendments to the Growth
Centres (Development Corporations) Act 1974 set out in Schedule 1.

Clause 4 provides for the repeal of the proposed Act after all the amendments made
by the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendments
Schedule 1 [1] and [2] insert and amend a number of definitions in section 3 (1) of
the Growth Centres (Development Corporations) Act 1974 (the Principal Act).

Schedule 1 [3] makes law revision amendments.

Schedule 1 [4] repeals and replaces Part 2 of the Principal Act to give effect to
paragraph (a) of the object of the proposed Act outlined in the Overview above.

Proposed section 4 deals with the constitution of development corporations and
growth centres. These corporations and growth centres are constituted by the
proposed Act by being specified from time to time in Schedule 1 to the Principal Act.

A development corporation is a body corporate with the corporate name specified in
column 1 of that Schedule. The growth centre in respect of which a development
corporation is constituted is the area of land described in column 2 of that Schedule
in relation to the development corporation. Proposed section 4 (4) makes it clear that
a development corporation is to be either a chief executive governed development
corporation or a board governed development corporation as specified from time to
time in column 3 of that Schedule.

Proposed section 5 provides for the constitution of new development corporations,
the dissolution, amalgamation, change of name and nature of governance of
development corporations and the establishment, abolition and alteration of growth
centres. This is achieved by way of an order of the Governor, published in the
Gazette, appropriately amending Schedule 1 to the Principal Act.

Proposed section 6 deals with the governance of development corporations. It
provides that the affairs of a development corporation are to be managed and
controlled by:

(a) if the development corporation is a chief executive governed development
corporation—the chief executive of the development corporation, or

(b) if the development corporation is a board governed development
corporation—the chief executive, subject to and in accordance with any
directions given to the chief executive by the board of the development
corporation.

The proposed section also provides that in the exercise of its functions, a
development corporation is, except where it makes a recommendation to the Minister
administering the Principal Act (the Minister), subject to the control and direction of
the Minister. (Currently, the Minister for Planning is responsible for the general
administration of the Principal Act. However, the Minister for the Central Coast is
responsible for the administration of the Act in so far as it relates to the Festival
Development Corporation.)
Proposed section 6A deals with development corporation boards. The proposed
section provides that there is constituted a development corporation board for each
board governed development corporation. The board is to consist of:

(a) not less than 4 persons appointed by the Governor, and

(b) the chief executive of the development corporation, and

(c) if a person is appointed as the chief executive—the Director-General of the
Department of Planning (the Director-General) (or a person nominated by
that Director-General).

Proposed section 6B deals with chief executives of development corporations. The
proposed section provides that the Minister is to appoint a chief executive for each
development corporation.

Schedule 1 [9]–[16] make consequential amendments to provisions of the Principal
Act. Schedule 1 [17] is a consequential amendment inserts an updated provision
relating to protection from personal liability (formerly clause 14 of Schedule 2 to the
Principal Act) into the main body of the Principal Act. Schedule 1 [19]–[24] make
consequential amendments and law revision amendments to Schedule 2 (Provisions
relating to the constitution and procedure of development corporations) to the
Principal Act.

Schedule 1 [18] repeals Schedule 1 to the Principal Act and replaces it with proposed
Schedules 1 and 1A.

Proposed Schedule 1 repeats matter relating to the four existing growth centres and
inserts information relating to their corresponding existing development
corporations (being the Hunter Development Corporation, the Festival Development
Corporation, the Cooks Cove Development Corporation and the Growth Centres
Commission). The proposed Schedule gives effect to paragraph (b) of the object of
the proposed Act outlined in the Overview above by providing that the Growth
Centres Commission is to be a chief executive governed development corporation.

The remaining bodies are to be board governed development corporations.

Proposed Schedule 1A contains provisions dealing with orders dissolving,
amalgamating or changing the name or nature of governance of development
corporations. Schedule 1 [5]–[8] make consequential amendments.

Schedule 1 [26] makes an amendment to allow regulations of a savings or
transitional nature consequent on the enactment of the proposed Act to be made.

Schedule 1 [27] inserts a number of savings and transitional provisions and
validation provisions into Schedule 6 to the Principal Act. Schedule 1 [25] makes a
consequential amendment.

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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