Ports Authority (Amendment) Act, 1999 (No. 9 of 1999)

1999 Title 1. Short Title Ports Authority Amendment No. 9 ANALYSIS 2. 1999, No. 9 Consequential amendments Schedule An Act to amend the Ports Authority Act 1994-95 to ensure consistency between its provisions and the provisions of the Cook Islands Investment Corporation Act 1998 (24 March 1999 BE IT ENACTED by the Parliament of the Cook Islands in Session assembled, and by the authority of the same, as follows: 1. Short Title - (1) This Act may be cited as the Ports Authority Amendment Act 1999 and shall be read with and deemed part of the Ports Authority Act 199495 (the principal Act) .. 2. Consequential amendments - The provisions of the principal Act set out in the first column of the Schedule are amended in the manner set out in the second column of that Schedule. This Act is administered by the Prime Minister's Department RAROTONGA, COOK ISLANDS: Printed under the authority of the Government of the Cook Islands - 1999 $3.00 2 Section 2 Sec1io11 2 Sections 6, 8 and 9 Section 13 New Section l'or·ts Aulhority Arncndrncnl 1999, No. 9 SCHEDULE By inserting in alphabelical order the following definitions "Corporation" means the Cook Islands Investment Corporation established by the Cook Islands Investment Corporation Act 1998; "Crown" means the Crown in right of the Government of the Cook Islands; "Financial year" means lhe period of 12 months ending with !he 30th day of June"; By deleting the word "Minister" and substituting the words "Board of the Corporation". By repealing that section and substituting the following section "13. Directions by Corporation - (1) The Board of 1he Corporation may from tin1e to time give the Authority in writing general directions as to management strategies to be followed by the Authority in the performance of the Authority's objectives, functions and powers and which directions shall be consistent with the Corporation's statement of corporate intent (2) The Authority shall in the exercise of its functions and powers give effect to any directions given to it by the Corporation under subsection ( 1) of this section. (3) A copy of every direction given by the Corporation to the Authority under this section in any financial year sha!J be included in the annual report of the Authority for that year." By inserting after section 13 the following new section " 13A Authority's social responsibilities - (I) The Minister may from time to tin1e review the Authority's performance for the purposes only of determining if the Authority is giving effect to the social policies of Government insofar as the functions and powers of the Authority pennit it to do so. 1999, No. 9 Section 20(2) Section 21 Sections 62 and 63 Section 64 Section 65 Pol'ls Authol'ily Arne11drnc11l (2) Where the Minister with the concurrence of Cabinet requires the Authority lo give elfocl or greater emphasis to Government's social policy in !he exercise of its functions and powers and that requirement will result in the Authority's stated return on investment being reduced then the an1ount of the reduction shall be quantified and included as pa1i of the Crown's debt management.reEponsibilities pursuant to section 24 of the Ministry of Finance and Economic Management Act 1995-96 for the purposes of being appropriated to the Authority under the next Appropriation Act and in the absence of all or pal1 of thal reduction not being appropriated and paid to the Authority then any future dividend to be paid by the Authority to the Corporation and by the Corporation to the Crown shall be reduced by the unpaid amow1t until the unpaid an1ount of !he reduction is recovered by the Authority." By omitting the words "as may be approved by the Minister" and substituting the words "consistent with the Authority's statement of corporate intent". By adding after subsection (2) the following new subsection "(3) The Authority shall have the power to pay to the Corporation a dividend calculated in accordance with the principles required by section 67(2)(1) of this Act and as may be stated in the annual repol1 of the Authority in accordance with section 68(3) of this Act." By repealing those sections. By omitting the words "subject to the consent of Cabinet" and substituting the words "in consultation with the Board of the Corporation". By omitting the word "Minister" and substituting the words "the Board of the Corporation"; By omitting the words "may with the consent of Cabinet". Sections 66, 67, 68 and 69 Pol'IS Aulhol'ily A111end111enl 1999, No. 9 By repealing those sections and substituting the following sections "66. Statement of financial position - Within 3 months of the coming into force of this Act, the Board will deliver to the Corporation, in accordance with generally accepted accounting practice, a stateme11t of financial position of the Authority"that shall include the estimated value of assets and the estimated value of the Crown's investment in the Authority. 6 7. Statement of corporate intent - ( l) The Board will on behalf of the Authority deliver to the Minister for the purposes of enabling the Minister to make a determination under section l 3A of this Act and to the Corporation for approval a .. statement of corporate intent of the Authority not later than I month before the commencement of each financial year, the first statement to be delivered within 21 days of the date of this Act coming into force, or such other period as the Board of the Corporation may allow. (2) The Authority shall be bound by and adopt in its statement of corporate intent the Corporation's policies including policies as to asset management set out in the Corporation's statement of corporate intent where they affect the Authority and in addition the statement shall specify, in respect of the next financial year and each of the two immediately succeeding financial years, the following information (a) the objectives of the Authority; and (b) the nature and scope of the activity to be undertaken; and (c) estimates of the current conunercial value of the Crown's investment in the Authority, and a statement of the manner in which the value was assessed; and ( d) the accounting policies; and ( e) the perfonnance targets and other measures by which the perfommnce of the Authority may be judged in relation to the objectives; and (t) a statement of the principles adopted in determining the annual dividend of the Authority together with an estimate of the amount that is to be paid to the Corporation; 1999, No. 9 Porl.s Autliorily A111c11d111c11( and (g) the intention of the Aulhorily regarding the sale and purclrnse of assets; and (h) the costs to the Authority in recognising Government's social policy in the management aJ)d any proposed disposal of assets • and what appropriation by Parliament is required; and (i) such other matters as are agreed hy the Corporation and the Authorit v. (:1) The Authority shall not proceed to implement its statement of corporate intent until it is approved by the Board of the Corporation under subsection(!) of this section. 68. Annual report - (!) Within 3 months after the encl of each financial year the Board shall deliver to the Corporation a report of the operations of the Authority during 1he financial year including (a) a statement of financial position; (b) a statement of financial performance; (c) a statement ofcash.llows; ( d) a statement of borrowings; (e) a statement of commitments, (f) a statement of specific fiscal risks. (g) a statement of accounting policies; (h) the auditor's report of the statements referred to m paragraphs (a), (b), (c), (d) and (e); (i) other statements as are required to be consistent with generally accepted accounting practice (2) The annual report under subsection (I) of th.is section, shall state the information necessary to enable an in1om1ed assessment of the operations of the Authority having regard to the matters set out in section 67(2) of 1h.is Act including a comparison of the perfom1ance of the Authority with the statement of corporate intent. Section 70 Por·ts Au(horily AmC'nd,nenl 1999, No. 9 (3) The annllal repent llndcr subsection ( I J of this section shall state the dividend payable to the Corporation by the Authority for the financial year to which the report relates having due regard to the necessity to maintain adequate reserves a11d the principles referred to in section 67(2)(!) of this Act and the amount of the dividend payable to the Corporation shall not be more than that an10unt estimated ill the statement of corporate intent except as otherwise agreed to by the Board and the Corporation 69. Fiscal updates - The Authority shall deliver to the Corporation fiscal update reports of the kind referred to in the Ministry of Finance and Economic Management Act 1995-96." By omitting the word "Minister" wherever it appears and substituting the words "Board of the Corporation".