Tanzania Central Freight Bureau Act

Chapter 177

Repealed
This Act was repealed on 2018-02-23 by Tanzania Shipping Agencies Act, 2017.
Tanzania Central Freight Bureau Act
Tanzania

Tanzania Central Freight Bureau Act

Chapter 177

  • Published in Tanzania Government Gazette
  • Commenced on 1 October 1982
  • [This is the version of this document at 31 July 2002.]
  • [Note: This legislation was revised and consolidated as at 31 July 2002 and 30 November 2019 by the Attorney General's Office, in compliance with the Laws Revision Act No. 7 of 1994, the Revised Laws and Annual Revision Act (Chapter 356 (R.L.)), and the Interpretation of Laws and General Clauses Act No. 30 of 1972. All subsequent amendments have been researched and applied by Laws.Africa for TANZLII.]
  1. [Repealed by Tanzania Shipping Agencies Act, 2017 (Act 14 of 2017) on 23 February 2018]
[G.N. No. 122 of 1982; Acts Nos. 3 of 1981; 2 of 2000]An Act to establish the Tanzania Central Freight Bureau and for related matters.

Part I – Preliminary provisions (ss 1-2)

1. Short title

This Act may be cited as the Tanzania Central Freight Bureau Act.

2. Interpretation

In this Act, unless the context otherwise requires—"agent" means a person or body of persons employed as agents by the Bureau whether locally or outside Tanzania;"bill of lading" means a document which evidences a contract of carriage by sea and the taking over or loading of the goods by the carrier, by which a carrier undertakes to deliver the goods against the surrender of the document and the provision in the document that the goods are to be delivered to the order of the named person or to bearer, constitutes such undertaking;"Board" means the Board of Directors of the Tanzania Central Freight Bureau established under section 7;"Bureau" means the Tanzania Central Freight Bureau established by section 3;"consignee" means a person entitled to take delivery of the goods;"contract of carriage by sea" means any contract whereby the carrier undertakes against payment of freight to carry goods by sea from one port to another and includes carriage by sea in consideration of which such shipper agrees to ship goods exclusively in ship owned by such owner;"contract rate" means a lower freight rate agreed to between a shipper and a shipowner in respect of carriage of goods by sea in consideration of which such shipper agrees to ship goods exclusively in ships owned by such owner;"Director-General" means the Director-General of the Tanzania Central Freight Bureau appointed under section 8;"freight" means charge for transporting goods by ship;"freight rates" include contract rates, general rates and promotional rates;"goods" includes live animals and such articles of transport or packaging if supplied by the shipper;"loyalty agreement" means an agreement or arrangement between Liner Conferences and shippers or their agents whereby shippers in the United Republic confine the maritime transportation of all or part of their goods to a particular Liner Conference;"Minister" means the Minister responsible for shipping matters;"national vessels" include vessels owned either wholly by the Government of the United Republic, Government of Zanzibar, Tanzania private persons or vessels owned jointly between the Government of the United Republic or the Government of Zanzibar and other persons whether local or foreign;"promotional freight rate" means a rate for the carriage of non-traditional exports;"shipper" means any person by whom or in whose name or on whose behalf a contract of carriage of goods by sea has been concluded with a carrier, or any person by whom or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage by sea;"Special Shipping Fund" means a fund established by the Board under section 13.

Part II – The Tanzania Central Freight Bureau (ss 3-6)

3. Establishment of the Bureau

(1)There is hereby established a body corporate to be known as the Tanzania Central Freight Bureau.
(2)The Bureau shall—
(a)have perpetual succession and an official seal;
(b)in its corporate name, be capable of suing and being sued;
(c)subject to the provisions of this act, be capable of holding purchasing or acquiring in any other way, any movable or immovable property, and of disposing of any of its property.

4. Functions of the Bureau

The functions of the Bureau shall be—
(a)to implement the Government policy and advise the Government on commercial shipping matters;
(b)to promote, facilitate and regulate shipping services;
(c)to represent the Government in all commercial shipping matters;
(d)to monitor the conduct and practices of shipping lines and other sector service providers with a view to–
(i)foster economy in water transportation and overland costs;
(ii)ensure fair competition;
(iii)ensure quality of shipping services;
(e)to monitor freight rates and surcharge agreements so as to ensure their correct application during the period of their validity;
(f)to call for, register and appraise freight rates, currency and bunker adjustment factors and other charges or surcharges in relation to water transportation services;
(g)to require all ships loading or discharging cargo at Tanzania ports to—
(i)submit to the Bureau ship particulars;
(ii)submit copies of operational or service agreements;
(iii)submit copies of cargo freighted manifests and charter parties for both imports and exports;
(iv)submit copies of operational or service agreements;
(v)submit conditions of service;
(vi)submit any other relevant information;
(h)to register all shippers, shipping agents and clearing and forwarding agents;
(i)to require every commercial shipping provider, including terminal operators, carriers, cargo handlers, cargo hauliers and shipping agents to file their tariffs with the Bureau and observe consultation mechanisms before seeking any increase in tariffs or charges;
(j)to provide up-to-date information on cargo projections, sailing schedules and indicative through transportation rates;
(k)to promote amicable dispute resolution;
(l)to serve as link between the Government and all commercial shipping service providers and consumers;
(m)to monitor charges and tariffs for port services, clearing and forwarding companies, shipping agents and other intermediaries linked to the shipping services;
(n)to assist shippers in securing recovery of funds improperly collected by the industry entities;
(o)to establish mechanisms for consultation with shipping companies and other providers of shipping services and consumers on issues related to quality and standard of shipping services, freight rates and other conditions of carriage;
(p)to undertake research in matters relating to maritime industry with special emphasis on commercial shipping services, freight rates and other conditions of carriage;
(q)to establish and maintain a system of consultation and co-operation with any person or body of persons established by or under any written law and having functions related or similar to these for purpose of promoting or facilitating—
(i)investments in commercial shipping;
(ii)monitoring of price levels at which shipping and related services are provided;
(iii)regional co-operation in commercial shipping;
(r)to promote intermodal co-operation with the objective of achieving efficiency and economy of transportation; and
(s)to provide guidance to shippers on the reasonbleness of levels of ocean freight rates and other charges.

5. Powers of the Bureau

The Bureau shall, in the exercise of its functions, have the power to—
(a)negotiate with ship owners and shipping lines individually or collectively on matters relating to freight rates, surcharges, currency and bunker adjustment factors, adequacy, frequency and efficiency of shipping services and other matters connected with shipping services;
(b)enter into agreements with other institutions, national or international, having functions related to or similar to those of the Bureau for the purposes of promoting fair commercial shipping practices;
(c)appoint agents when necessary or desirable in order to facilitate the better carrying out of the functions of the Bureau;
(d)formulate codes or conduct for commercial shipping service providers;
(e)levy charges and commissions for its services;
(f)require any person or body of persons or institution carrying on the business as shippers, ship owners or shipping agents, to furnish to the Bureau such information as it may specify relating to the shipment of goods to or from Tanzania;
(g)give directions, instructions or directives for the better carrying out of the aims and objectives of the Act;
(h)investigate, adjudicate and impose fines on parties defaulting or contravening the process:Provided that it shall be the primary obligation of the Bureau to ensure harmony and amicable settlement of all complaints arising between operators and/or consumers; and
(i)do any other act or thing which may be necessary, expedient or desirable for the proper exercise and better carrying out of the functions of the Bureau.
[s.4A]

6. Objectives

In discharging the functions and powers imposed by sections 4 and 5, the Bureau shall have regard to–
(a)efficiency and economy;
(b)fostering the development and expansion of shipping service;
(c)enabling persons providing shipping services in Tanzania to compete effectively in the provision of such services.
[s.4B]

Part III – Administration (ss 7-9)

7. The Board of the Bureau

(1)There shall be established a Board of the Bureau which shall, subject to this Act, be responsible for the performance of functions and management of the affairs of the Bureau.
(2)The provisions of the Schedule to this Act shall have effect in respect of the constitution of the Board, its proceedings and other matters related to it.
(3)Save in the case of matters relating to the office and appointment of the Chairman of the Board and the Director-General, the Minister may, by order published in the Gazette, amend, add to, vary or replace any of the provisions of the Schedule to this Act.
(4)Subject to section 19, the Board may establish committees, from among its members and delegate any functions of the Board to any of those committees.
(5)The Minister may give to the Board directions of a general or specific character regarding the performance by the Bureau of any of its functions under this Act, and the Board shall give effect to every such direction given to it.
[s.5]

8. Director-General

The President shall appoint, upon such terms and conditions as he may specify, a Director-General who shall be the chief executive officer of the Bureau.[s.6]

9. Appointment of employees

The Board may from time to time appoint such number of other employees of the Bureau as it may deem necessary for the proper and efficient conduct of the business and activities of the Bureau.
[s.7]

Part IV – Financial provisions (ss 10-17)

10. Funds and resources of the Bureau

The funds and resources of the Bureau shall consist of—
(a)such sums which may derive from the operations of the Bureau;
(b)such funds or assets as may rest in or accrue to the Bureau from other sources by way of grants, gifts, fees or in any other way;
(c)any such sums which the Board may, subject to the provisions of section 12, borrow for the purposes of the Bureau;
(d)such sums as may be provided for a specified purpose by Parliament, either by way of grant or loan.
[s. 8]

11. Investment

With the prior approval of the Minister the Board may, from time to time, invest any part of the moneys available in any fund in investments authorised by the Trustees Investments Act 1, for investment of any trust fund.1Cap. 53[s.9]

12. Power to borrow

With prior approval of the Minister the Board may, from time to time, borrow moneys for the purposes of the Bureau by way of loan or overdraft, and upon such security and such terms and conditions relating to repayment of the principal and payment of interest subject to any direction by the Minister, as the Board may consider fit.[s. 10]

13. Special Shipping Fund

(1)There shall be established within the Bureau a Special Shipping Fund, hereinafter referred to as "the Fund" which shall be applied generally for the advancement of the maritime interests of Tanzania including the expansion of the national merchant fleet, development of ports warehousing facilities and training.
(2)The moneys credited to the Fund shall be held and disbursed separately from the moneys and other funds of the Bureau.
(3)The moneys of the Fund shall be derived from—
(a)such per centum of the funds of the Bureau payable into the Fund as the Board may, with the approval of the Minister determine;
(b)such other sources as may be determined by the Board with the approval of the Minister;
(c)such sums or property as may in any other manner vest in the Bureau for the purposes of the Fund.
(4)The Minister shall, from time to time, and with the consent of the Minister responsible for Finance, determine the projects or programmes in respect of which expenditure shall be incurred on the account of the Fund.
[s. 11]

14. Annual and supplementary budget

(1)Subject to subsection (2), "financial year" in this Act means any period not exceeding twelve consecutive months designated by the Board as the accounting period of the Bureau.
(2)The first financial year of the Board shall commence on the date when this Act comes into operation and may be of a period longer or shorter than twelve months.
(3)Not less than two months before the beginning of any financial year the Board shall, at its first meeting especially convened for that purpose, pass a detailed budget (in this Act called the "annual budget") of the amounts respectively—
(a)expected to be received; and
(b)expected to be disbursed,
by the Board during the financial year.
(4)If in any financial year the Board requires to make any disbursement not provided for in the annual budget for the year the Board shall, at a meeting, pass a supplementary budget detailing the disbursement.
(5)Forthwith upon the passing of the annual budget or any supplementary budget the Board shall submit the budget to the Minister for his approval.
(6)The Minister shall, upon receipt of the annual budget or supplementary budget, approve or disapprove it or approve it subject to such amendment as he may consider fit.
(7)Where the Minister has approved any annual budget or supplementary budget the budget as approved by him, with or without amendment shall be binding on the Board which, subject to the provisions of subsection (6), shall confine its disbursement within the items and amounts contained in the applicable estimates as approved by the Minister.
(8)The Board may—
(a)with the sanction in writing of the Minister make disbursement notwithstanding that the disbursement is not provided for in any budget;
(b)from the amount of expenditure provided for in any budget in respect of any item, transfer a sum not exceeding two hundred thousand shillings to any other item contained in the budget;
(c)adjust expenditure limits to take account of circumstances not reasonably foreseeable at the time the budget was prepared, subject to submitting a supplementary budget to the Minister within two months of the alteration of expenditure limits becoming necessary.
[s. 12]

15. Accounts and audit

(1)The Board shall cause to be provided and kept proper books of accounts and records with respect to–
(a)the receipt and expenditure of moneys by, and other financial transactions of, the Bureau;
(b)the assets and liabilities of the Bureau,
and shall cause to be made out for every financial year a balance sheet and statement showing details of the income and expenditure of the Bureau and all its assets and liabilities.
(2)Not later than six months after the close of every financial year the accounts including the balance sheet of the Bureau in respect of that financial year, shall be audited by the Tanzania Audit Corporation established by the Tanzania Audit Corporation Act 2.2Cap. 56
(3)Every audited balance sheet shall be placed before a meeting of the Board and, if adopted by the Board, shall be endorsed with the certificate that it has been adopted.
(4)As soon as the accounts of the Bureau have been audited and adopted by the Board, and, in any case not later than six months after the audit, the Board shall submit to the Minister a copy of the audited statements made by the auditors.
[s. 13]

16. Annual statement of accounts and report to be submitted to the Minister

The Board shall, within six months after the close of the financial year, cause to be prepared and submitted to the Minister a report dealing generally with the activities and operations of the Bureau during that year and accompanied by—
(a)a copy of the audited accounts of the Bureau;
(b)a copy of the auditors report on the accounts; and
(c)such other information as the Minister may direct.
[s. 14]

17. Annual statement and report to be laid before the National Assembly

The Minister shall, as soon as practicable and, in any case not later than twelve months after the close of a financial year, lay before the National Assembly the following documents in relation to that financial year–
(a)a copy of the audited statement of accounts of the Bureau;
(b)a copy of the auditors' report; and
(c)a copy of the report by the Board.
[s. 15]

Part V – Miscellaneous provisions (ss 18-25)

18. Remuneration of members of the Board

(1)Subject to subsection (2) members of the Board shall be entitled to such remuneration, fees or allowances for expenses as the Minister may, upon the recommendation of the Board, prescribe from time to time.
(2)No remuneration, fees or allowances, except such allowances for expenses as may be expressly authorised by the Minister, shall be paid to any member of the Board who is a public officer.
[s. 16]

19. Delegation of powers by the Board

(1)Subject to the provisions of subsection (6), the Board may, from time to time, by writing under the official seal of the Bureau subject to such terms, conditions and restrictions as it may specify, delegate to any committee of the Board or to any employee of the Bureau, all or any of the functions, powers or duties conferred or imposed by or under this Act on the Board, and where any delegation is so made the delegated function, power or duty may be performed or exercised by the delegate subject to the terms, conditions and restrictions specified by the Board.
(2)The delegation under subsection (1) may be made to the holder of an office under the Bureau specifying the office but without naming the holder, and in every case where delegation is so made each successive holder of the office in question and any person who occupies or performs the duty of that office may, without any further authority, perform or exercise the delegated function, power or duty in accordance with the delegation made by the Board.
(3)The Board may revoke a delegation made by it under this section.
(4)No delegation made under this section shall prevent the Board from performing or exercising the function, power or duty delegated.
(5)A delegation made under this section may be published in the Gazette, and upon its being so published shall be judicially noticed and shall be presumed to be in force unless the contrary is proved.
(6)The Board shall not have power under this section to delegate–
(a)its power of delegation; or
(b)the power to approve the annual budget or any supplementary budget, the annual balance sheet or any statement of accounts.
[s. 17]

20. Liabilities of members of the Board, etc.

Without prejudice to the provisions of section 284A of the Penal Code 3 or the Public Officers (Recovery of Debts) Act 4, no act or thing done or omitted to be done by any person who is a member of the Board or employee or agent of the Bureau shall, if done or omitted bona fide in the execution or purported execution of his duties as the member of the Board or employee or agent of the Bureau, subject that person to any action, liability or demand of any kind.3Cap. 164Cap. 76[s. 18]

21. Restriction, etc., on loyalty agreements and Bureau's sole right to book cargo

(1)If in his opinion the public interest so requires, the Minister may, by order published in the Gazette, abolish any existing loyalty agreement or impose restrictions on the terms or scope of loyalty agreements which may be entered into by shippers in the United Republic.
(2)Except for goods exempted by the Minister under section 25(1), the Bureau shall have the sole right to book all cargo coming to or going from the United Republic along trade routes which are under the jurisdiction of the Bureau.
(3)No person shall be entitled to any payment as compensation for loss of business arising or incurred as a result of an order restricting to the Bureau the right to book certain cargo, or vesting into the Bureau the sole right to book cargo coming to or going from the United Republic along any trade route.
[s. 19]

22. Board to fix charges and commissions and the recovery of moneys owed by way of charges and commissions

(1)Charges and commissions may be made by the Bureau for any services rendered or facilities provided by the Bureau to shippers and shipping agents and shall be fixed by the Board with the approval of the Minister and may be revised from time to time.
(2)Charges and commissions referred to in subsection (1) shall become payable within thirty days after demand by the Bureau.
(3)Where a shipper, shipowner or shipping agent refuses to pay to the Bureau within thirty days after demand any sum which he is required to pay as a charge or commission under this section, such a sum may, on application made by the Bureau to a court having jurisdiction over the last known place of business or residence of such shipper, shipowner or shipping agent be recovered in like manner as a fine imposed by such court.
[s. 20]

23. Offences and penalties

(1)Any person who wilfully, by means of false billing, false classifiction, false weighing, false report of weight, false measurement of by any other unfair device or means obtains or attempts to obtain water transportation services at higher than the market rates or charges, commits an offence, and upon conviction is liable to a fine of not less than five hundred and not more than two thousand United States dollars or its equivalent in Tanzanian shillings.
(2)Any carrier, either alone or in conjunction with any other person operating shipping services in Tanzania who—
(a)charges, collects or receives greater or less freight rates or surcharges for transportation of goods or for any service in connection therewith than the open market rates and charges;
(b)allows any person to obtain transportation services at less than open market rates or charges, or agreed service contract rates or charges by means of false billing, false classification, false weighing, false measurement or by any other unfair device or means;
(c)operates under any agreement required to be submitted that has not become effective or that has been rejected, disapproved, suspended or cancelled;
(d)retaliates against any shipper by refusing cargo space when available, or resorts to other unfair discriminatory acts on the ground that the shipper has patronised another carrier, or has filed a complaint;
(e)engages in any unfair or discriminatory practices in relation to—
(i)rates;
(ii)cargo space or other facilities;
(iii)the loading and unloading of goods; or
(iv)the adjustment and settlement of claims,
commits an offence, and upon conviction is liable to a fine of not less than two thousand United States dollars and not more than five thousand United States dollars or its equivalent in Tanzanian shillings.
(3)Any person who engages in conduct or practices which amount to concerting or abuse of a dominant position for purposes of undermining competition, commits an offence and upon conviction is liable to a fine of not less than ten thousand and not more than twenty thousand United States dollars or its equivalent in Tanzanian shillings.
(4)Any employee of the Bureau authorised by name in writing in that behalf by the Director-General may compound any offence under this Act or regulations prescribed as being an offence which may be compounded by collecting from the persons reasonably suspected of having committed the offence, an amount not exceeding five thousand United States dollars, or its equivalent in Tanzanian shillings.
[s. 21]

24. Offences for which a penalty is not specifically provided in the Act

Any person who commits an offence under this Act, for which a penalty is not specifically provided elsewhere in this Act, shall be liable on conviction to a fine not exceeding one hundred thousand shillings.[s. 22]

25. Orders and regulations

(1)The Minister may make regulation for the better carrying out of the purposes and provisions of this Act—
(a)prescribing the conditions and terms, upon which any specified facilities or services or categories of facilities or services within the scope of the functions of the Bureau shall be provided to public and other persons;
(b)prescribing fees, rates and other charges in connection with services; [ss. (2)(d)]
(c)prescribing anything which may be prescribed under this Act; [ss. (2)(e)]
(d)providing for any matter which, in the opinion of the Board, is necessary to provide for the efficient performance of the functions of the Bureau. [ss. (2)(f)]
(2)Regulations made or orders given under this section shall be published in the Gazette:Provided that where regulations or orders are made which are not of general application, the Board may, in addition to or in lieu of publication in the Gazette, publish the regulations or orders in such a manner as will in the opinion of the Board, ensure the contents of the regulations or orders coming to the notice of the persons or category of persons in respect of which they apply and of the members of the public who might be affected by such regulations or orders. [ss. (3)][s. 23]

Schedule (Section 5(2))

1.Composition of the Board
(1)The Board shall consist of–
(a)a Chairman who shall be appointed by the President;
(b)not less than nine other members who shall be appointed by the Minister from among persons who, in his opinion, are qualified or otherwise fit to be appointed as members of the Board.
(2)The Board may appoint any employee of the Bureau to be the Secretary of the Board.
2.Vice-ChairmanMembers of the Board shall elect one of their number to be the Vice-Chairman who shall, subject to his continuing to be a member, hold office for a term of one year from the date of his election and shall be eligible for re-election.
3.Term of appointment
(1)A member of the Board shall hold office for such period as the appointing authority may specify in his appointment or, if no period is so specified, shall hold office for a term not exceeding three years from the date of his appointment, and shall be eligible for re-appointment.
(2)In the case of a member who is a member by virtue of his holding some other office, he shall cease to be a member upon his ceasing to hold that office.
(3)The appointing authority may at any time revoke an appointment made by him under paragraph 1 and any member so appointed may at any time resign his office by notice in writing to the appointing authority.
4.Absent member may be representedIf a member of the Board who is a member by virtue of his holding some other office is unable for any reason to attend any meeting of the Board, he may nominate in writing another person from his institution to attend the meeting in his place.
5.Casual vacanciesIf any vacancy occurs in the membership of the Board by reason of the death, resignation or permanent incapacity of any member thereof or otherwise, the appointing authority may appoint another person to fill that vacancy, and the person so appointed shall hold office for the unexpired residue of the period of office of the member in whose place he is appointed.
6.Variation of the composition of the BoardThe Minister may, on the advice of the Board, by order published in the Gazette vary the composition of the Board.
7.Meetings and procedures of the Board
(1)The Board shall ordinarily meet for the transaction of its business at the time and places determined by it, but shall meet at least once in every three months.
(2)The Secretary of the Board shall give each member adequate notice of the time and place of every meeting and shall keep a record of the proceedings of every meeting of the Board.
(3)The Chairman, or in his absence the Vice-Chairman, shall preside at every meeting of the Board and in the absence of both the Chairman and the Vice-Chairman, members present shall appoint one of their number to preside over the meeting.
(4)The Chairman or with his consent, the Secretary, may invite any person who is not a member to participate in the deliberations at any meeting of the Board, but any person so invited shall not be entitled to vote.
8.Quorum
(1)The quorum at any meeting of the Board shall be one half of the total number of members of the Board and, where there is an uneven number of members, shall be the whole next number above half.
(2)Subject to the provisions of subparagraph (1) the Board may act notwithstanding any vacancy in its number.
9.Decisions of the Board
(1)Questions proposed at a meeting of the Board shall be decided by a majority of the votes of the members present and voting and in the event of an equality of votes, the person presiding shall have a deliberative vote in addition to his casting vote.
(2)Notwithstanding subparagraph (1), a decision may be made by the Board without a meeting by circulation of the relevant papers among the members, and the expression in writing of the views of the majority of the members.
10.The Board to confirm minutes of its meetings
(1)The Board shall cause to be recorded and kept minutes of all business conducted or transacted at its meetings, and the minutes of each meeting of the Board shall be read and confirmed, or amended and confirmed, at the next meeting of the Board and signed by the person presiding at the meeting.
(2)Any minutes signed, or purporting to have been signed, by the person presiding at the meeting of the Board shall, in the absence of proof of error, be deemed to be a correct record of the meeting whose minutes they purport to be.
11.Vacancies, etc., not to invalidate proceedingsNo act or proceeding of the Board shall be invalid by reason only of any vacancy among its members or defect in the appointment of any of them.
12.Orders, directions, etc., by the Chairman or the Director-GeneralAll orders, directions, notices or other documents made or issued on behalf of the Board shall be signed by–
(a)the Chairman of the Board; or
(b)the Director-General or any other officer of the Bureau appointed in writing in that behalf by the Director-General.
13.Seal of BureauThe seal of the Bureau shall not be fixed on the any instrument except in the presence of any of the following persons–
(a)the Chairman;
(b)the Vice-Chairman;
(c)the Director-General;
(d)any of the Directors of the Bureau;
(e)any other employee of the Bureau appointed in writing in that behalf by the Director-General.
14.The Board may regulate its proceedingsSubject to the provisions of this Schedule, the Board may regulate its own proceedings.
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History of this document

23 February 2018
31 July 2002 this version
Consolidation
01 October 1982
Commenced