Transport Administration Act 1988 No 109
Historical version for 1 January 2004 to 31 May 2004 (accessed 21 December 2014 at 14:17) Current version
Part 3

Part 3 State Transit Authority

Division 1 Constitution of State Transit Authority

20   Constitution of STA

(1)  There is constituted by this Act a corporation with the corporate name of the State Transit Authority of New South Wales.
(2)  The State Transit Authority:
(a)  has the functions conferred or imposed on it by or under this or any other Act, and
(b)  is, for the purposes of any Act, a statutory body representing the Crown.

Division 1A Objectives of State Transit Authority

20A   Objectives of STA

(1)  The principal objectives of the State Transit Authority are:
(a)  to operate efficient, safe and reliable bus and ferry services, and
(b)  to be a successful business and, to this end:
(i)  to operate at least as efficiently as any comparable businesses, and
(ii)  to maximise the net worth of the State’s investment in the Authority, and
(c)  to exhibit a sense of social responsibility by having regard to the interests of the community in which it operates, and
(d)  where its activities affect the environment, to conduct its operations in compliance with the principles of ecologically sustainable development contained in section 6 (2) of the Protection of the Environment Administration Act 1991, and
(e)  to exhibit a sense of responsibility towards regional development and decentralisation in the way in which it operates.
(2)  Each of the principal objectives of the State Transit Authority is of equal importance.

Division 2 General functions of State Transit Authority

21   Bus services

(1)  The State Transit Authority shall operate bus services.
(2)  The State Transit Authority shall continue to operate the bus services which were provided by the Urban Transit Authority immediately before the commencement of this section.
(3)  Subsection (2) does not limit the power of the State Transit Authority:
(a)  to establish any new bus service, or
(b)  to alter or discontinue any of its bus services.

22   Ferry services

(1)  The State Transit Authority shall operate ferry services.
(2)  The State Transit Authority shall continue to operate the ferry services which were provided by the Urban Transit Authority immediately before the commencement of this section.
(3)  Subsection (2) does not limit the power of the State Transit Authority:
(a)  to establish any new ferry service, or
(b)  to alter or discontinue any of its ferry services.

23   (Repealed)

24   Miscellaneous functions of STA

(1)  Without limiting any other functions conferred or imposed on it, the State Transit Authority may:
(a)  conduct any business, whether or not related to the operation of its bus or ferry services, and for that purpose use any property or the services of any staff of the Authority,
(b)  acquire and develop any land,
(c)  acquire or build, and maintain or dispose of, any vehicles, vessels, wharves, plant, machinery or equipment,
(d)  make and enter into contracts or arrangements for the carrying out of works or the performance of services or the supply of goods or materials,
(e)  make and enter into contracts or arrangements with any person for the operation by that person, on such terms as may be agreed on, of any of the Authority’s bus or ferry services or of any of the Authority’s businesses, and
(f)  appoint agents, and act as agent for other persons.
(2)  The State Transit Authority may exercise its functions within or outside New South Wales.

Division 3 Management of State Transit Authority

25   Constitution of STA Board

(1)  There shall be a State Transit Authority Board.
(2)  The Board shall consist of:
(a)  the Chief Executive of the State Transit Authority, and
(b)  (Repealed)
(c)  not fewer than 4 and not more than 7 members appointed by the Minister.
(3)  The persons appointed by the Minister must each or together have such expertise as the Minister considers necessary in order to realise the principal objectives of the State Transit Authority.
(4)  Schedule 1 has effect with respect to the constitution and procedure of the Board.

26   Board to determine policies of STA

(1)  The State Transit Authority Board has the function of determining the policies of the State Transit Authority.
(2)  In exercising that function, the Board shall, as far as practicable, ensure that the activities of the State Transit Authority are carried out properly and efficiently.

27   Chief Executive of STA

(1)  The Governor may appoint a Chief Executive of the State Transit Authority.
(2)  Before a person is appointed as Chief Executive, the Minister shall give the State Transit Authority Board the opportunity to recommend any one or more persons for appointment.
(3)  Schedule 2 has effect with respect to the Chief Executive.

28   Chief Executive to manage STA

(1)  The affairs of the State Transit Authority shall be managed and controlled by the Chief Executive of that Authority in accordance with the policies of the State Transit Authority Board.
(2)  Any act, matter or thing done in the name of, or on behalf of, the State Transit Authority by the Chief Executive shall be taken to have been done by the State Transit Authority.

29   Ministerial control

(1)  The Minister may give the State Transit Authority Board written directions in relation to the exercise of the State Transit Authority’s functions.
(2)  Subject to this section, the State Transit Authority Board and the Chief Executive of the State Transit Authority must ensure that the State Transit Authority complies with any such direction.
(3)  If the State Transit Authority Board considers that:
(a)  the State Transit Authority would suffer a significant financial loss as a result of complying with any such direction, and
(b)  the direction is not in the commercial interests of the Authority,
the Board may request the Minister to review the direction.
(4)  A request for a review must be made within 7 days after the direction is given or within such other reasonable period as the Minister determines.
(5)  If the Board requests a review, the State Transit Authority is not required to comply with the direction until notified of the Minister’s decision following the review.
(6)  Following the review the Minister may confirm or revoke the direction, but the Minister shall not confirm the direction unless:
(a)  the Minister has estimated the financial loss concerned from information supplied by the State Transit Authority or from other sources, and
(b)  the Minister has referred the matter to the Treasurer, and
(c)  the Treasurer has approved of the financial loss being reimbursed from public revenue.
(7)  The amount to be reimbursed to the State Transit Authority shall be paid, from money advanced by the Treasurer or appropriated by Parliament for that purpose, at such times and in such amounts as the Treasurer determines after receiving advice from the Minister on the estimated financial loss incurred by the State Transit Authority from time to time.
(8)  For the purposes of this section, the amount of the financial loss that the State Transit Authority suffers as a result of complying with a direction includes the amount of expenditure that the Authority incurs, and the amount of revenue that the Authority forgoes, as a result of complying with the direction which it would not otherwise incur or forgo.

30   STA to supply information to Minister

The State Transit Authority shall:
(a)  supply the Minister or a person nominated by the Minister with such information relating to its activities as the Minister or person may require, and
(b)  keep the Minister informed of the general conduct of its activities, and of any significant development in its activities.

31   Corporate plans

(1)  The State Transit Authority shall, at least 3 months before the beginning of each financial year of the Authority, prepare and deliver to the Minister a draft corporate plan for the financial year.
(2)  The State Transit Authority shall:
(a)  consider any comments on the draft corporate plan that were made by the Minister within 2 months after the draft plan was delivered to the Minister, and
(b)  deliver the completed corporate plan to the Minister before the beginning of the financial year concerned.
(2A)  During the preparation of a corporate plan after the commencement of this subsection, the State Transit Authority is to make a draft plan available for public comment for at least 30 days and is to have regard to any submissions it receives about the draft plan within that period. The arrangements for obtaining or inspecting the draft plan and for making submissions are to be advertised in a daily newspaper circulating throughout the State.
(2B)  The State Transit Authority is to make the completed corporate plan available for public inspection. However, the Authority is not required to include in any draft or completed plan made available for public comment or inspection information that is of a commercially sensitive nature or that it would otherwise not be required to disclose under the Freedom of Information Act 1989.
(3)  The State Transit Authority shall, as far as practicable, exercise its functions in accordance with the relevant corporate plan.
(4)  A corporate plan shall specify:
(a)  the separate activities of the State Transit Authority and, in particular, the separate commercial and non-commercial activities, and
(b)  the objectives of each such separate activity for the financial year concerned and for future financial years, and
(c)  the strategies, policies and budgets for achieving those objectives in relation to each such separate activity, and
(d)  targets and criteria for assessing the Authority’s performance.
(4A)  A corporate plan must specify strategies for dealing with the integration of passenger services and passenger safety, security and conduct and any other similar issues that the Minister directs are to be addressed by the corporate plan.
(5)  This section is subject to any requirement made by or under this Act (including the requirements of any direction by the Minister under section 29).
(6)  As soon as practicable after the commencement of this section, the State Transit Authority shall carry out a review of its existing services and provide the Minister with a report on:
(a)  any of its activities which are not in the commercial interests of the Authority, and
(b)  the estimated amount of the annual financial loss resulting from those activities, and
(c)  any action that can be taken for the carrying out of those activities in accordance with sound commercial practice.

32   Exercise of functions through subsidiary corporations, joint ventures etc

(1)  In this section:

subsidiary corporation means:

(a)  a public subsidiary corporation referred to in section 33, or
(b)  a private subsidiary corporation referred to in section 34.

(2)  Any function of the State Transit Authority may be exercised:
(a)  by the Authority itself, or
(b)  by a subsidiary corporation, or
(c)  by the Authority or a subsidiary corporation, or both, in a partnership, joint venture or other association with other persons or bodies.

33   Public subsidiary corporations

(1)  In this section:

public subsidiary corporation means a corporation constituted in accordance with this section.

(2)  The regulations may constitute a corporation for the purposes of this section with the corporate name specified in the regulations.
(3)  A public subsidiary corporation:
(a)  has such of the functions of the State Transit Authority as are specified in the regulations or delegated to it under this Act, and
(b)  is, for the purposes of any Act, a statutory body representing the Crown.
(4)  The provisions of or made under this Act or any other Act relating to the State Transit Authority apply to and in respect of a public subsidiary corporation in such manner and to such extent as are prescribed by the regulations.
(5)  With the approval of the Minister:
(a)  the State Transit Authority may transfer any of its assets, rights or liabilities to a public subsidiary corporation, and
(b)  a public subsidiary corporation may transfer any of its assets, rights or liabilities to the State Transit Authority or to another public subsidiary corporation.
(6)  The regulations may make provision for or with respect to the vesting of those assets, rights and liabilities in the transferee without any transfer, conveyance or assignment.
(7)  A public subsidiary corporation is dissolved by the repeal of the regulations by which it is constituted (unless continued in existence by the regulations), and on any such dissolution the assets, rights and liabilities of the corporation become the assets, rights and liabilities of the State Transit Authority.

34   Private subsidiary corporations etc

(1)  In this section:

private corporation means a corporation within the meaning of the Corporations Act 2001 of the Commonwealth formed in or outside New South Wales.

private subsidiary corporation means a private corporation in which the State Transit Authority has a controlling interest.

(2)  The State Transit Authority may, subject to subsection (3):
(a)  form, or participate in the formation of, private corporations, and
(b)  acquire interests in private corporations, and
(c)  sell or otherwise dispose of interests in private corporations,
whether or not the activities or proposed activities of any such private corporation are related to bus or ferry services.
(3)  The State Transit Authority must not, without the approval of the Minister:
(a)  form, or participate in the formation of, a private subsidiary corporation, or
(b)  acquire an interest in a private corporation so that, as a result of the acquisition, the corporation becomes a private subsidiary corporation, or
(c)  sell or otherwise dispose of any interest in a private subsidiary corporation so that, as a result of the sale or disposal, it ceases to be a private subsidiary corporation.
(4)  A private subsidiary corporation is not, and does not represent, the Crown.

35   Delegation of functions of STA

(1)  The State Transit Authority may delegate to an authorised person any of the functions of the Authority, other than this power of delegation.
(2)  A delegate may sub-delegate to an authorised person any function delegated by the State Transit Authority if the delegate is authorised in writing to do so by the Authority.
(3)  In this section, authorised person means:
(a)  an officer of the State Transit Authority, or
(b)  a person of a class prescribed by the regulations or approved by the State Transit Authority Board.
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