Antinuclear

Clean Energy Finance Corporation could sue over Coalition shutdown It is not lawful for the new government to tell the CEFC to cease operations, says leading barrister Lenore Taylor, political editor  theguardian.com, Thursday 19 September 2013 

The board of the clean energy finance corporation is legally obliged to ignore a directive from the new treasurer, Joe Hockey, to cease its operation and could take the Coalition government to court if it persisted in attempts to shut the CEFC down before the parliament voted to abolish it, according to advice from a leading barrister.

In advice to the Australian Conservation Foundation, Stephen Keim, SC said it was not lawful for the new government to tell the CEFC to cease operations. He said it was in contradiction to the requirements of the legislation setting it up, and the board would be “obliged to ignore the direction”.

Keim said if a ministerial directive interfered “with the board’s carrying out of its statutory duties, the board, in the name of the CEFC, would have the necessary standing to seek relief in the appropriate forum”, meaning the board would have standing to take legal action.

“A direction to cease activities or cease investments, or to cease payments, would frustrate the legislative purpose of the CEFC Act and would be inconsistent with the CEFC Act … the CEFC’s activities cannot be terminated by executive action,” the advice says…….

he board also has private legal advice stating that it is obliged to continue to operate until the Coalition passes legislation abolishing the CEFC……the Coalition probably won’t be able to make good its intention until the new Senate sits next year – too long a period for the CEFC to legally remain in the holding pattern of managing existing investments but not making any new ones……..

During the election campaign, the Coalition claimed it would save $545m over four years from abolishing the CEFC, but the corporation itself calculates the potential savings would be tiny because it is lending at commercial rates, and that by 2014/15 its investments would be generating a positive return………http://www.theguardian.com/world/2013/sep/19/clean-energy-finance-corp-could-sue?view=desktop