The doctrine of executive necessity and termination for
convenience in government contracts
The Coalition Government has stated that it has been elected
with a mandate to abolish the Carbon Pricing Mechanism
(CPM). While the Government hopes that this
process will be quick and finally remove the uncertainty which has
recently surrounded this policy area, there remains some
uncertainty in the business community about the ease with which the
broader Clean Energy Future package may be able to be completely
disbanded.
This uncertainty is felt by both liable entities and other
participants in the broader scheme, such as recipients of the
industry specific assistance schemes, funding programs and finance
packages. For example, the Coalition has consistently stated that
it intends to abolish the Clean Energy Finance Corporation
(CEFC) and unwind any finance arrangements it has
put in place.1
