House of Assembly Fifty-Second Parliament, First Session (52-1) 52 1 Parliament of South Australia House of Assembly published Bills Commercial Arbitration Bill COMMERCIAL ARBITRATION BILL Introduction and First Reading Introduction and First Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Justice Minister for Urban Development Minister for Tourism Minister for Food Marketing The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice, Minister for Urban Development, Planning and the City of Adelaide, Minister for Tourism, Minister for Food Marketing) (12:10): Obtained leave and introduced a bill for an act relating to the conduct of commercial arbitrations; to amend the Commercial Arbitration and Industrial Referral Agreements Act 1986; and for other purposes. Read a first time. Second Reading Second Reading The Hon. J.R. RAU House of Assembly Enfield Deputy Premier Attorney-General Minister for Justice Minister for Urban Development Minister for Tourism Minister for Food Marketing The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice, Minister for Urban Development, Planning and the City of Adelaide, Minister for Tourism, Minister for Food Marketing) (12:10): I move: That this bill be now read a second time. This bill proposes to amend the Commercial Arbitration and Industrial Referral Act 1986 so as to enact a new framework for the conduct of domestic commercial arbitrations. The current act is part of uniform domestic arbitration legislation across all states and territories, but requires updating to match the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration, which was amended in 2006. There are good reasons for adopting the amended model law as the basis for the domestic law. First, the model has legitimacy and familiarity worldwide. It provides a well-understood procedural framework to deal with issues such as the appointment of arbitrators, jurisdiction of arbitrators, conduct of arbitral proceedings and the making of awards, and therefore is easily adapted to the conduct of domestic arbitrations. Secondly, this creates national consistency in the regulation and conduct of international and domestic commercial arbitration. The commonwealth International Arbitration Act 1974 gives effect to the model law in relation to international arbitrations. Many businesses trade both domestically and internationally, so one set of procedures for managing commercial disputes makes sense. Third, practitioners and courts will be able to draw on case law and practice in the commonwealth and overseas to inform the interpretation and application of its provisions. However, the model law, being designed for international rather than domestic arbitration, required some modifications to serve domestic purposes. A draft of the model bill was therefore released by attorneys-general for targeted consultation. No commentator was opposed to the adoption of the model as the foundation of the domestic law, and comment generally related to the detail of the bill. After considering the results of consultation and making some changes to the model, attorneys-general in May 2010 adopted the model to be enacted. Since then, the model has become law in New South Wales. A bill to enact the model is before the Tasmanian parliament. I seek leave to have the remainder of the second reading explanation inserted in Hansard without my reading it. Leave granted. The purpose of the law is found in section 1AC of the Bill, which says that the paramount object of the Bill is to facilitate the fair and final resolution of commercial disputes by impartial arbitral tribunals without unnecessary delay or expense. Stakeholders supported the inclusion of a paramount object clause, noting the absence of such a provision as a weakness in the present uniform commercial arbitration Acts. Part 1 of the Bill applies the Bill to domestic commercial arbitration and clarifies that this excludes an international arbitration for the purposes of the Commonwealth Act. Part 2 of the Bill defines an arbitration agreement and requires a court before which an action is brought to refer that matter to arbitration if it is the subject of a arbitration agreement and a party makes a request in time. Part 3 deals with the composition of arbitral tribunals and provides flexibility and autonomy to parties in selecting the arbitrator or arbitral tribunal to decide their dispute. It enables parties to agree on the number or arbitrators, the process by which they will be selected and how they may be challenged. It also provides a default position should the parties not agree. Clause 12 sets out the grounds on which the appointment of an arbitrator may be challenged and obliges proposed arbitrators to disclose any circumstances likely to give rise to justifiable doubts as to their impartiality or independence. Part 4 makes it clear that an arbitral tribunal is competent to determine whether it has jurisdiction in a dispute but also enables a party to seek a ruling on the matter from the court where a tribunal determines that it has jurisdiction. Part 4A enables arbitral tribunals to grant and enforce interim measures for purposes such as the preservation of assets and evidence. Part 5 deals with the conduct of arbitral proceedings, providing that parties must be given a fair hearing and that they are free to agree on the procedure to be followed, or, failing agreement, for the arbitral tribunal to conduct the arbitration as it considers appropriate. Part 5 includes some provisions additional to those in the model law to ensure that arbitrations can be conducted efficiently and cost-effectively. Clause 24B imposes a duty on parties to do all things necessary for the proper and expeditious conduct of arbitral proceedings. Clause 24B sets out general duties of the parties, including complying with evidentiary and procedural directions without delay. Clause 25 provides the powers of an arbitral tribunal in case of default of a party, enabling arbitral tribunals to deal with delay by parties or failure to comply with a direction of the tribunal. Clause 27D provides that an arbitrator can act as a mediator, conciliator or other non-arbitral intermediary, if the parties so agree. If, however, a mediation or conciliation is not successful an arbitrator can only continue to act as arbitrator with the written consent of all parties. Part 5 also provides a confidentiality regime based on the Commonwealth Act. Part 6 of the Bill covers the making of awards and the termination of proceedings. The UNCITRAL Model Law has been supplemented by additional provisions to deal with the issue of costs and the awarding of interest, drafted consistently with the Commonwealth Act. Part 7 outlines the circumstances in which a party can apply to set aside an award, or can appeal if the parties have agreed to allow appeals under the optional provision. Part 8 deals with the recognition of awards and the grounds on which enforcement can be refused. The Bill preserves the industrial referral provisions of the Act, which were added in 2007. By Schedule 1, these provisions become a separate Act, the Industrial Referral Agreements Act 1986. This Bill aims to ensure that our domestic arbitration laws reflect accepted international practice for resolving commercial disputes and will provide business with a cost-effective and efficient alternative to litigation. I commend the Bill to Members. Explanation of Clauses Explanation of Clauses Part 1A—Preliminary 1A—Short title 1B—Commencement Clauses 1A and 1B are formal. 1C—Paramount object of Act Clause 1C states that the paramount object of the proposed Act is to facilitate the fair and final resolution of commercial disputes by impartial arbitral tribunals without unnecessary delay or expense. Part 1—General provisions 1—Scope of application Clause 1 applies the proposed Act to domestic commercial arbitrations. An arbitration is a domestic arbitration if the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in Australia and have (whether in the arbitration agreement or in any other document in writing) agreed that any dispute that has arisen or may arise between them is to be settled by arbitration. It is not a domestic arbitration if it is an arbitration to which the Model Law (as given effect by the Commonwealth Act) applies as that Act covers the field with respect to international commercial arbitrations. Clause 1(5) also makes it clear that the proposed Act is not intended to affect any other Act that provides that certain disputes may not be submitted to arbitration or may only be submitted according to provisions other than those of the proposed Act. 2—Definitions and rules of interpretation Clause 2 defines certain words and expressions used in the proposed Act. In particular, it defines confidential information, disclose, Model Law and party. The clause also contains provisions for interpreting referential phrases in the proposed Act, including provisions relating to the meaning of a reference to the fact that the parties have agreed and that a reference to leaving the parties free to determine an issue includes the right of the parties to authorise a third party (including an institution) to determine the issue. 2A—International origin and general principles Clause 2A makes it clear that in interpreting the proposed Act regard should be had to promoting uniformity between the application of the proposed Act to domestic commercial arbitrations and the application of the Model Law (as given effect by the Commonwealth Act) to international commercial arbitrations. 3—Receipt of written communications Clause 3 deems written communications to have been received by a party in specified circumstances. 4—Waiver of right to object Clause 4 waives the right of a party to object to non-compliance with a provision of the proposed Act or of an arbitration agreement if the party proceeds with arbitration but fails to object to that non-compliance either without delay or within any time-limit. 5—Extent of court intervention Clause 5 makes it clear that a court is not to intervene in matters governed by the proposed Act, except as provided by the Act. 6—Court for certain functions of arbitration assistance and supervision Clause 6 specifies the functions of arbitration assistance and supervision to be performed by the Supreme Court, or by the District Court or Magistrates Court if the parties so provide in the arbitration agreement, under the proposed Act. Part 2—Arbitration agreement 7—Definition and form of arbitration agreement Clause 7 defines an arbitration agreement as an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement must be 'in writing'. The proposed section makes it clear that 'in writing' has an expanded meaning. An agreement may be concluded orally, by conduct or other means, provided that its content is recorded in some form, including electronic communication. An agreement will also be in writing if it is contained 'in an exchange of statements of claim and defence in which the existence of the agreement is alleged by 1 party and not denied by the other'. 8—Arbitration agreement and substantive claim before court Clause 8 requires a court before which an action is brought in a matter that is the subject of an arbitration agreement to refer the matter to arbitration if a party so requests in the circumstances specified in the proposed section. It also enables an arbitration to be commenced or continued while the issue is pending before the court. 9—Arbitration agreement and interim measures by court Clause 9 enables a party to obtain an interim measure of protection from a court, before or during arbitral proceedings. Part 3—Composition of arbitral tribunal 10—Number of arbitrators Clause 10 enables the parties to determine the number of arbitrators and specifies that, in the absence of agreement between the parties, the default number of arbitrators is 1. 11—Appointment of arbitrators Clause 11 allows the parties to agree on the procedure for appointing arbitrators. It provides a default procedure with ultimate recourse to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) if agreement cannot be reached or the agreed procedure is not followed. 12—Grounds for challenge Clause 12 sets out the grounds on which the appointment of an arbitrator may be challenged. It obliges proposed arbitrators to disclose any circumstances likely to give rise to justifiable doubts as to their impartiality or independence. This obligation starts when a person is approached to be an arbitrator and continues throughout the person's appointment as an arbitrator. Clause 12(5) and (6) provide that the test for whether there are justifiable doubts as to the impartiality or independence of an arbitrator is whether there is a real danger of bias. This is based on the test for bias applied by the House of Lords in R v Gough [1993] AC 646. 13—Challenge procedure Clause 13 provides that the parties are free to determine the procedure for challenging an arbitrator and provides a default procedure for challenging the appointment or continued appointment of an arbitrator in the absence of agreement for such a challenge. It also provides that if a challenge fails, a party may have recourse to a court to determine the matter. 14—Failure or impossibility to act Clause 14 provides for the termination of the mandate of an arbitrator in certain circumstances. 15—Appointment of substitute arbitrator Clause 15 requires the appointment of a substitute arbitrator according to the appointment procedure and any other eligibility requirements that were applicable to the arbitrator being replaced. Part 4—Jurisdiction of arbitral tribunal 16—Competence of arbitral tribunal to rule on its jurisdiction Clause 16 makes it clear that an arbitral tribunal is competent to make a determination as to whether or not it has jurisdiction to arbitrate a commercial dispute. It also makes it clear that an arbitration agreement may be severed from the contract in which it is contained (if applicable) so that it may stand independently. It expressly provides that any determination that the contract is invalid does not mean that the arbitration clause is invalid. The provision also enables a party to seek a ruling from the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) from a determination of the tribunal that it has jurisdiction. Part 4A—Interim measures Division 1—Interim measures 17—Power of arbitral tribunal to order interim measures Clause 17 confers power on an arbitral tribunal to grant interim measures (unless otherwise agreed by the parties) similar to the ex parte orders that could be obtained from a court during litigation prior to the final determination of a dispute for purposes such as maintenance of the status quo and preservation of assets and evidence. 17A—Conditions for granting interim measures Clause 17A requires a party requesting certain interim measures to satisfy the arbitral tribunal (to the extent the arbitral tribunal considers appropriate) that if the measure concerned is not ordered then harm not adequately reparable by an award of damages is likely to result and that there is a reasonable possibility that the requesting party will succeed on the merits of the claim. Division 2—Preliminary orders Articles 17B and 17C of the Model Law are not adopted by the proposed Act but the clause numbering is retained to maintain consistency with the numbering of the Model Law. Division 3—Provisions applicable to interim measures 17D—Modification, suspension, termination Clause 17D enables an arbitral tribunal to modify, suspend or terminate an interim measure either on the application of any party or, in exceptional circumstances and having given prior notice, on the tribunal's own initiative. 17E—Provision of security Clause 17E enables an arbitral tribunal to require a party that requests an interim measure to provide appropriate security. 17F—Disclosure Clause 17F enables an arbitral tribunal to require any party to disclose any material change in the circumstances on the basis of which an interim measure was requested or granted. 17G—Costs and damages Clause 17G imposes a liability on a party that requests an interim measure for any costs and damages caused by the measure to any party to the arbitration agreement, if the tribunal subsequently determines that it should not have granted that interim measure. Division 4—Recognition and enforcement of interim measures 17H—Recognition and enforcement Clause 17H provides for the recognition and enforcement of an interim measure issued under a law of this State, or an interim measure issued under a law of another State or Territory of Australia, in certain circumstances. 17I—Grounds for refusing recognition or enforcement Clause 17I outlines the circumstances in which the recognition or enforcement of an interim measure may be refused. Division 5—Court-ordered interim measures 17J—Court-ordered interim measures Clause 17J makes it clear that the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) has the same power to issue an interim measure in arbitration proceedings as it has in relation to proceedings in courts. Part 5—Conduct of arbitral proceedings 18—Equal treatment of parties Clause 18 makes it clear that parties must be given a fair hearing. 19—Determination of rules of procedure Clause 19 provides that the parties are free to agree on the procedure to be followed by the arbitral tribunal and enables the arbitral tribunal to conduct the arbitration in such manner as it considers appropriate in the absence of such agreement. The clause specifies the powers conferred on the arbitral tribunal and provides that, by leave of the Supreme Court (or another court agreed by the parties as referred to in proposed section 6), an arbitral tribunal's order or direction may be enforced by a judgment being entered in terms of the order or direction. 20—Place of arbitration Clause 20 provides that the parties are free to agree on the place of arbitration and enables an arbitral tribunal to determine the place of arbitration in the absence of such agreement. 21—Commencement of arbitral proceedings Clause 21 provides for arbitral proceedings to commence on the date that a request for the referral to arbitration is received by the respondent. The clause applies unless otherwise agreed by the parties. 22—Language Clause 22 provides that the parties are free to agree on the language or languages to be used in arbitral proceedings. Failing such agreement the arbitral tribunal is to determine the language or languages to be used. The agreement or determination applies to written statements and any hearing, award, decision or other communication of the arbitral tribunal unless otherwise agreed by the parties. The proposed section also enables an arbitral tribunal to make an order for documentary evidence to be accompanied by an appropriate translation. 23—Statements of claim and defence Clause 23 sets out requirements with respect to statements of claim and defence. The clause applies unless otherwise agreed by the parties and is subject to directions of the arbitral tribunal. 24—Hearings and written proceedings Clause 24 sets out the procedure for the conduct of the arbitral proceedings. Unless otherwise agreed by the parties, the arbitral tribunal is enabled to decide whether to hold an oral hearing or to make a decision on the papers and other materials submitted. The discretion to make a decision on the papers is limited in so far as the arbitral tribunal must hold an oral hearing if requested by a party, provided that they have not agreed beforehand that no hearings are to be held. The proposed section makes it clear that documents sought to be relied upon must be communicated to another party to the arbitration. 24A—Representation Clause 24A enables a party to appear in person or be represented by any person of their choice in oral hearings of the tribunal. 24B—General duties of parties Clause 24B imposes a duty on the parties to do all things necessary for the proper and expeditious conduct of arbitral proceedings. 25—Default of party Clause 25 states the powers of an arbitral tribunal in the event of a party's failure to communicate a statement of claim or a statement of defence or to appear at a hearing or produce documentary evidence. The clause applies unless otherwise agreed by the parties. 26—Expert appointed by arbitral tribunal Clause 26 empowers an arbitral tribunal, unless otherwise agreed by the parties, to appoint experts to report on specific issues determined by the tribunal, and if necessary to appear at a hearing for the purpose of examination. It also empowers the arbitral tribunal, unless otherwise agreed by the parties, to require a party to give information or to provide access in order to inspect documents, goods or other property. 27—Court assistance in taking evidence Clause 27 enables a request to be made to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) by an arbitral tribunal or a party with the approval of an arbitral tribunal, for assistance in taking evidence. 27A—Parties may obtain subpoenas Clause 27A enables the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) to issue a subpoena requiring a person to attend the arbitral proceedings for examination, or to produce documents, on the application of a party made with the consent of the arbitral tribunal. 27B—Refusal or failure to attend before arbitral tribunal or to produce document Clause 27B provides that, unless otherwise agreed by the parties, on application to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) by a party or the arbitral tribunal the court may order a person in default to comply with a subpoena or a requirement of the arbitral tribunal and may make consequential orders as to the transmission of evidence or documents to the arbitral tribunal. 27C—Consolidation of arbitral proceedings Clause 27C enables the consolidation of certain arbitral proceedings. The clause applies unless otherwise agreed by the parties. 27D—Power of arbitrator to act as mediator, conciliator or other non-arbitral intermediary Clause 27D provides that an arbitrator can act as mediator in the proceedings if the parties so agree. It also outlines the circumstances in which mediation can be terminated. This includes where any party withdraws their consent to the mediation. It also prohibits an arbitrator who has acted in mediation proceedings that have been terminated from conducting subsequent arbitration, unless the written consent of all the parties to the arbitration has been obtained. 27E—Disclosure of confidential information Clause 27E provides for the protection of confidential information. Confidential information is defined in proposed section 2 as information that relates to arbitral proceedings or to an award made in those proceedings and covers documents associated with the proceedings such as statements of claim and pleadings, evidence supplied to the arbitral tribunal, transcripts of evidence, submissions and rulings and awards of the arbitral tribunal. The clause applies unless otherwise agreed by the parties. It prohibits the disclosure of confidential information by either the parties to the arbitration or the tribunal, except as allowed by proposed sections 27F-27I. Disclose is defined in proposed section 2 to include publishing or communicating or otherwise supplying confidential information. The provisions are adapted (with modifications) from similar provisions of the Arbitration Act 1996 of New Zealand. 27F—Circumstances in which confidential information may be disclosed Clause 27F sets out the general circumstances in which confidential information can be disclosed by a party to the proceedings or the arbitral tribunal. These circumstances include where all the parties have consented, it is necessary for the establishment or protection of the legal rights of a party, disclosure is required by subpoena or a court order or where disclosure is authorised or required by another relevant law (including a law of the Commonwealth or of another State or Territory) or for the purposes of enforcing an arbitral award. 27G—Arbitral tribunal may allow disclosure of confidential information in certain circumstances Clause 27G allows an arbitral tribunal to authorise the disclosure of confidential information in circumstances other than those mentioned in proposed section 27F at the request of 1 of the parties and only once the other parties have been heard. 27H—Court may prohibit disclosure of confidential information in certain circumstances Clause 27H outlines the circumstances in which the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) may make an order prohibiting the disclosure of confidential information on the application of a party and after giving all parties an opportunity to be heard. It requires consideration of whether or not the public interest would be served by disclosure or non-disclosure and whether disclosure is more than reasonable for the purpose. The proposed section deals with the situation where consent of all the parties has not been obtained under proposed section 27F(2) or where the arbitral tribunal refuses to make an order under proposed section 27G. 27I—Court may allow disclosure of confidential information in certain circumstances Clause 27I outlines the circumstances in which the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) may make an order allowing the disclosure of confidential information and sets out the matters the court must take into consideration before making an order. 27J—Determination of preliminary point of law by Court Clause 27J enables a party to make an application to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6), and confers jurisdiction on the court, to determine a question of law that arises in the course of arbitration, unless otherwise agreed. Part 6—Making of award and termination of proceedings 28—Rules applicable to substance of dispute Clause 28 enables the parties to choose the substantive law to be applied to the particular facts of the matter in dispute (as opposed to determining the arbitral law under which the dispute is resolved). It makes it clear that an arbitral tribunal is to make a determination in accordance with the terms of the contract, taking into account the usages of the trade applicable to it. 29—Decision-making by panel of arbitrators Clause 29 specifies that a majority of arbitral tribunal members (if there is more than one arbitrator) is necessary to constitute a decision of the tribunal unless otherwise agreed by the parties. 30—Settlement Clause 30 provides for the recording of a settlement between the parties in the form of an award. 31—Form and contents of award Clause 31 prescribes the form and content of an award. 32—Termination of proceedings Clause 32 describes the circumstances in which arbitral proceedings are terminated. 33—Correction and interpretation of award; additional award Clause 33 enables the correction or interpretation of a provision of the award, or the making of an additional award. It makes it clear that any interpretation of the tribunal forms part of the award. 33A—Specific performance Clause 33A enables an arbitrator to make an order for specific performance of a contract in circumstances where the Supreme Court would have power to do so, unless otherwise agreed by the parties. 33B—Costs Clause 33B allows the arbitral tribunal (unless otherwise agreed by the parties) to determine costs (including the fees and expenses of the arbitrator or arbitrators) at its discretion and to direct that they be limited to a specified amount. A direction limiting the amount must be given sufficiently in advance for the parties to take it into account in managing their own costs. 33C—Application of Legal Profession Acts This clause has been omitted as it is not relevant to South Australia, but the clause numbering is retained to maintain consistency with the numbering of the Model Law. 33D—Costs of abortive arbitration Clause 33D enables the Supreme Court (or another court agreed by the parties as referred to in proposed section 6), to make orders with respect to the costs of an abortive arbitration. 33E—Interest up to making of award Clause 33E provides for the imposition (unless otherwise agreed by the parties) by the arbitral tribunal of interest in an award for payment of money for the period before the making of the award. 33F—Interest on debt under award Clause 33F provides for the imposition (unless otherwise agreed by the parties) by the arbitral tribunal of interest on the debt under an award. Part 7—Recourse against award 34—Application for setting aside as exclusive recourse against arbitral award Clause 34 outlines the circumstances in which an application to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) may be made for the setting aside of an award, or an appeal against an award, and the criteria to be applied. In particular it requires the court to find either that the subject matter of the dispute is not capable of settlement by arbitration under a law of this State, or that the award is in conflict with public policy. Section 19 of the Commonwealth Act declares that, for the purposes of the application of the Model Law by that Act, an award is in conflict with public policy if the making of the award was induced or affected by fraud or corruption or a breach of the rules of natural justice occurred in connection with the making of the award. 34A—Appeals against awards Clause 34A enables an appeal to the Supreme Court (or another court agreed by the parties as referred to in proposed section 6) on a question of law, if the parties have agreed prior to the commencement of arbitration that such appeals may be made and the court grants leave. Part 8—Recognition and enforcement of awards 35—Recognition and enforcement 36—Grounds for refusing recognition or enforcement Clauses 35 and 36 establish a framework for the recognition and enforcement of arbitral awards. Part 9—Miscellaneous 37—Death of party Clause 37 outlines the effect that the death of a party has on an arbitration agreement. 38—Interpleader Clause 38 makes provision for relief by way of interpleader. 39—Immunity Clause 39 confers immunity on an arbitrator acting in good faith. 40—Act to bind Crown Clause 40 provides that the proposed Act binds the Crown. 41—Court rules Clause 41 enables rules of court to make further provision for giving effect to the proposed Act. 42—Regulations Clause 42 enables the making of regulations. Schedule 1—Related amendments and transitional provisions Part 1—Preliminary 1—Amendment provisions Clause 1 is formal. Part 2—Amendment of Commercial Arbitration and Industrial Referral Agreements Act 1986 2—Amendment of long title Clause 2 proposes to amend the long title of the Commercial Arbitration and Industrial Referral Agreements Act 1986 to reflect the proposed further amendments to that Act. 3—Amendment of section 1—Short title Clause 3 amends the short title of the Commercial Arbitration and Industrial Referral Agreements Act 1986 so that it becomes the Industrial Referral Agreements Act 1986. 4—Repeal of sections 3 to 56 Clause 4 repeals sections 3 to 56 (inclusive) of the Act as these provisions are to be covered by the proposed new Commercial Arbitration Bill 2011. 5—Redesignation of section 57 Clause 5 proposes to redesignate the regulation making provision of the Act as section 4. 6—Amendment, redesignation and relocation of Schedule 1 clauses 1 and 2 Clause 6 redesignates clauses 1 and 2 of the schedule to the Commercial Arbitration and Industrial Referral Agreements Act 1986 as sections 2 and 3 of the Industrial Referral Agreements Act 1986. 7—Repeal of Part and Schedule headings Clause 7 is a drafting amendment. Part 3—Savings, transitional and other provisions 8—Savings and transitional provisions Clause 8 contains transitional provisions. 9—Other provisions Clause 9 provides that the regulations may contain provisions of a savings or transitional nature consequent on the enactment of the proposed Act. Debate adjourned on motion of Mr Pederick.