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1 Irvinebank State Treatment Works Repeal Bill 2003 IRVINEBANK STATE TREATMENT WORKS REPEAL BILL 2003 EXPLANATORY NOTES Short Title of the Bill The Bill may be cited as the Irvinebank State Treatment Works Repeal Bill 2003. Policy Objectives of the Bill The policy objectives of the Bill are to terminate agreements between the State and Mr Frank Hilla (the purchaser) for the sale of the Irvinebank State (Tin) Treatment Works (the Works), and to repeal the Irvinebank State Treatment Works (Sale and Operation) Act 1990 (the Act). The reasons for these objectives are that: � Some 20 years after the signing of a preliminary agreement between the State and the purchaser, and 12 years after signing the sale agreement, which is a schedule to the Act, the purchaser has not settled the purchase. � The situation that existed in 1983, at the time the purchase was initiated, no longer applies. The North Queensland tin industry has been in a state of decline following the collapse of the tin price in 1985, and there is now negligible production. The Works has not operated commercially since 1996, and it is unlikely that it will ever operate again for the treatment of custom tin ores. � Under the agreements with the State, the purchaser controls the heritage-listed Works, and the supply of bulk, non-potable water to Irvinebank from the Ibis dam, which was the Works' water supply. � Performance of the Act and the agreements by the purchaser is now undesirable.
2 Irvinebank State Treatment Works Repeal Bill 2003 How the Policy Objectives will be achieved by the Bill The Bill expressly provides that the preliminary agreement and the sale agreement are terminated on commencement, and that the Act is repealed. Termination of the agreements is reasonable and appropriate because of the purchaser's failure to perform his obligations under the Act and the sale agreement, and the contemporary inappropriateness of the agreements as originally made. In the absence of an express provision to terminate the sale agreement, achievement of the objectives by legislation provides certainty of termination. There is no doubt as to the constitutional power of Parliament to make a valid law of this type and for this purpose. Termination in this way is therefore appropriate. Administrative Cost to Government of Implementing the Bill Estimated potential costs to Government of implementing the Bill are: ($) Cost of securing the Works site and providing 100,000 an interim caretaker Rehabilitation of tailings dams 1,500,000 Total 1,600,000 Consistency of the Bill with Fundamental Legislative Principles The proposed Bill is consistent with the fundamental legislative principles set out in the Legislative Standards Act 1992. The Bill does not take away the purchaser's right to seek compensation except in respect of the consequential cancellation of an authority or application for an authority. Consultation in relation to the Bill Extensive consultation was carried out in relation to the Bill, including: � The purchaser and his family; � Irvinebank residents and community bodies; � Mareeba Shire Council, and � Government Departments and Agencies.
3 Irvinebank State Treatment Works Repeal Bill 2003 NOTES ON PROVISIONS Clause 1 - Sets out the short title of the Act. Clause 2 - Provides definitions for the Act. Clause 3 - Expressly terminates the preliminary agreement and the sale agreement on the commencement day. Clause 4 - Provides that the Chief Executive must issue a Permit to Occupy under the Land Act 1994 over the unallocated State land on which the purchaser's residence (the Queensland National Bank building) is situated, and over adjoining unallocated State land that provides access to the rear of the residence. The intention is to provide the purchaser and his family with on-going occupation and access rights to their home of 20 years. No fee is payable for the grant of this permit, but it will otherwise be subject to the Land Act 1994. Clause 5 - Provides for the application of the purchase deposit of $12,000 paid by the purchaser, firstly, in payment of expenses incurred in selling or otherwise disposing of the purchaser's property remaining on site and forfeited to the State under section 408 of the Land Act 1994, and secondly in payment to the purchaser. The intention of this clause is to enable the deposit to be used as a performance bond in respect of the removal by the purchaser of his property from the Works site, and provides that the amount due to him be paid as soon as practicable. The clause also expressly provides that interest earned on the deposit remains the property of the State. Clause 6 - This clause expressly cancels any granted authorities or applications for authorities held or applied for by the purchaser on commencement, other than the Permit to Occupy referred to in clause 4. The purpose of the clause is to cancel authorities such as water licences that may have been issued to enable the purchaser to perform his obligations under the agreements and, specifically, to cancel his application for a mining lease over the Works site, the grant of which would be inappropriate after the agreements cease to be in force. The clause further provides that no compensation is payable in relation to the cancellation of authorities and applications, because such cancellation is consequential to termination of the agreements. Clause 7 - Provides that the purchaser is solely liable for any claims arising out of his occupation and operation of the Works, and his
4 Irvinebank State Treatment Works Repeal Bill 2003 occupation of the land the subject of the Permit to Occupy referred to in clause 4. Clause 8 - Provides that on the commencement day the books of account and other records held by the purchaser in relation to the operation of the Works become the property of the State, and requires that the records be given to the Chief Executive as soon as practicable after commencement. The purpose of the clause is to enable the State to obtain the records, which are of technical, financial and historical interest, from the purchaser. Clause 9 - Expressly repeals the Irvinebank State Treatment Works (Sale and Operation) Act 1990, which is no longer relevant once the agreements have been terminated. Clause 10 - Provides for this Act to expire on 31 December 2004. � State of Queensland 2003