(1) This Act may be cited as the Petroleum Sector Reform Act 1988.

(2) Subject to subsection (3), this Act shall come into force on 9 May 1988.

(3) Sections 1, 4, and 5 shall come into force on the day on which this Act receives the Royal assent.

(1) The Minister of Finance may, from time to time, make payments to Lloyds Bank International Limited in repayment of loans raised to finance the expansion of the Marsden Point refinery, being—

• (a) the loan of US$500,000,000 pursuant to the agreement dated 16 May 1980; and

• (b) the loan of US$750,000,000 pursuant to the agreement dated 13 October 1982.

(2) Any arrangement between the Crown and The New Zealand Refining Company Limited or between the Crown and any other person (whether contractually binding or not), which purports to confer any rights on The New Zealand Refining Company Limited to receive or to have the benefit of any sum equivalent to the cash flow (net of tax) which it would have received if the 20% regional investment allowance under section 119 of the Income Tax Act 1976 had applied to the expansion of the Marsden Point refinery, shall be null and void.

(1) The old financial arrangements rules of the Income Tax Act 2007 shall not apply to—

• (a) agreements for the provision of funds to meet payments in respect of loans, being the loans specified in section 2(1), raised to finance the expansion of the Marsden Point refinery, entered into between the Crown, The New Zealand Refining Company Limited, BP Oil New Zealand Limited, Caltex Oil (NZ) Limited, Europa Oil NZ Limited, Mobil Oil New Zealand Limited, and Shell Oil New Zealand Limited on—

  • (i) 10 October 1986; and

  • (ii) 22 December 1986; and

  • (iii) 9 April 1987; and

  • (iv) 8 July 1987; and

  • (v) 8 October 1987; and

  • (vi) 21 December 1987; and

  • (vii) 16 February 1988; and

  • (viii) 7 April 1988; and

• (b) any payments made pursuant to section 2(1).

(2) Notwithstanding any other enactment or rule of law, the Commissioner of Inland Revenue shall assess The New Zealand Refining Company Limited's liability for income tax under the Income Tax Act 2007 as if—

• (a) the loans specified in section 2(1) had never been raised; and

• (b) The New Zealand Refining Company Limited had never received or expended the amounts specified in section 2(1); and

• (c) any payments (whether in repayment of principal or interest) made in respect of the loans specified in section 2(1) had never been made; and

• (d) the agreements specified in subsection (1)(a) had never been made.

(3) Notwithstanding any other enactment or rule of law, The New Zealand Refining Company Limited is denied a deduction under the Income Tax Act 2007 for an amount of depreciation loss for the expansion assets.

(4) The New Zealand Refining Company Limited's income for the purposes of the Income Tax Act 2007 is hereby deemed not to include—

• (a) any amounts paid by the Minister of Finance pursuant to section 2(1); and

• (b) any amounts paid to The New Zealand Refining Company Limited by BP Oil New Zealand Limited, Caltex Oil (NZ) Limited, Europa Oil NZ Limited, Mobil Oil New Zealand Limited, and Shell Oil New Zealand Limited for the purpose of repaying the loans (both as to principal and interest) specified in section 2(1).

Having regard to the provisions of section 5,—

• (a) the Motor Spirits Licensing Authority shall do all in its power to provide for the winding up of the Authority and, in particular, for securing the payment of all money owed by the Authority, and the recovery of debts due to the Authority or otherwise payable under the Motor Spirits Distribution Act 1953, and shall cause to be prepared final accounts of the Authority as at the close of 8 May 1988:

• (b) the Secretary of Trade and Industry shall cause to be prepared final accounts of the Motor Spirits Industry Account as at the close of 8 May 1988.

(1) On 9 May 1988,—

• (a) the Motor Spirits Licensing Authority shall be dissolved and the term of office of every member of the Authority shall cease:

• (b) all real and personal property held by the Motor Spirits Licensing Authority shall become vested in the Crown, subject to all liabilities, charges, and obligations:

• (c) all money belonging to the Motor Spirits Industry Account established pursuant to section 41 of the Motor Spirits Distribution Act 1953 shall be transferred to the Consolidated Account:

• (d) all money payable to the Motor Spirits Licensing Authority shall become payable to the Crown:

• (e) all rights, constraints, obligations, and liabilities of the Motor Spirits Licensing Authority shall become the rights, constraints, obligations, and liabilities of the Crown:

• (f) all proceedings pending by or against the Motor Spirits Licensing Authority may be carried on, completed, or enforced by or against the Crown:

• (g) the Motor Spirits Licensing Appeal Authority shall be dissolved and the term of office of the person appointed to be the Motor Spirits Licensing Appeal Authority for the time being shall cease:

• (h) the enactments specified in Schedule 1 are repealed:

• (i) the regulations and orders specified in Schedule 2 are revoked.

(2) Fees in respect of wholesalers' or retailers' licences that, on 1 April 1988, but for this subsection, would have been payable under section 25A of the Motor Spirits Distribution Act 1953, are hereby deemed not to be, and never to have been, payable.

Amendment(s) incorporated in the Act(s).