AUSTRALIAN CAPITAL TERRITORY

ACTION AUTHORITY ACT 2001

ACTION AUTHORITY TRANSFER OF ASSETS, RIGHTS AND LIABILITIES 2002

DISALLOWABLE INSTRUMENT DI2002-62

EXPLANATORY MEMORANDUM

1.	The ACTION Authority Act 2001 provided for the establishment of ACTION (the ACT Bus Service) as a statutory authority.

2.	Under section 36(1) of the Act, the Minister is able to declare in writing that assets, liabilities and rights of the ACT Government vest in the ACTION Authority.   The attached instrument provides for the transfer of ACTION assets, liabilities and rights from the Department of Urban Services to the ACTION Authority.  The purpose is to provide the Authority with the resources it needs to conduct its business.

3.	The assets, liabilities and rights are those that pertained to ACTION as at            31 December 2001.  ACTION has had effective control of these assets, liabilities and rights since 1 January 2002 by agreement between the Chair of the ACTION Authority and the Chief Executive of the Department of Urban Services.  The time taken to issue this formal instrument has been to enable a full review by the Auditor General of the amounts transferred. 

4.	The amount shown in the instrument are aggregate amounts for items such as receivables, creditors, inventory and plant, as it is impractical to prepare an instrument containing detailed lists of such items.  For the same reason detailed lists of interests in revenue and supply contracts have not been included.  However, ACTION have retained detailed records of the amounts transferred and these detailed records have been subject to review by the Auditor General.