Dairy Adjustment Program Agreement Act 1976 (Qld)

79 wlu.ttshxxt^ ANNO VICESIMO QUINTO ELIZABETHAE SECUNDAE REGINAE No. 10 of 1976 An Act to ratify and approve two agreements between the Government of the Commonwealth of Australia and the Government of the State of Queensland relating to a dairy adjustment program [ASSENTED TO 2ND APRIL, 1976] BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short title. This Act may be cited as the Dairy Adjustment Program Agreement Act 1976. 2. Authority to make agreements . The making for and on behalf of the Government of the State of Queensland of each agreement a copy of which is set out in schedule I or 2 is and it is declared always was authorized. 3. Ratification of agreements . The agreements set out in schedules 1 and 2 are, and each of them is, ratified and approved.

80 Dairy Adjustment Program Agreement Act 1976, No. 10 SCHEDULE I [s. 2] AGREEMENT IN RELATION TO MARGINAL DAIRY RECONSTRUCTION SCHEME QUEENSLAND 1974. FARMS AN AGREEMENT made the eleventh day of December One thousand nine hundred and seventy-four between THE GOVERNMENT OF THE COMMONWEALTH OF AUSTRALIA (in this agreement called " the Australian Government ") of the one part and THE GOVERNMENT OF THE . STATE OF QUEENSLAND (in this agreement called " the Queensland Government ") of the other part. WHEREAS- (A) the Australian Government and the Queensland Government mutually recognizes the desirability of continuing to facilitate the process of dairy farm adjustment in order to alleviate the serious low income problem within the dairy industry; (B) by the Marginal Dairy Farms Agreements Act1970 provision was made for financial assistance to the States for the purposes of marginal dairy farms reconstruction schemes to be operated by the States in accordance with that Act; (C) an Agreement was made in pursuance of that Act between the Australian Government and the Queensland Government the Fourteenth day of September 1970 (in this agreement called " the Principal Agreement ") under which a scheme has been established to enable payments of financial assistance to be made to the Queensland Government; (D) the payments by the Australian Government pro.vided for by the Principal Agreement for the purposes of the said scheme were amounts equal to amounts expended by the State prior to the twenty-sixth day of July 1974; (E) the said Act has been amended by the Marginal Dairy FarmsAgreements Act1974 to enable a scheme referred to therein to be broadened and to extend in time and to increase in total amount the financial assistance that may be paid to the States thereunder; (F) the Australian Government and the Queensland Government are in agreement that the Principal Agreement should be varied as hereinafter set out in order that the additional assistance provided by the amending Act may be made available to the dairy industry in Queensland: NOW IT IS HEREBY AGREED that as from the date of this agreement the Principal Agreement is varied so that its provisions are as set out hereunder AND THAT, without prejudice to the continuance of the Scheme under and by virtue of the Principal Agreement, the provisions set out hereunder shall on and after the date of this agreement have effect with respect to and shall apply to the operation of that Scheme:- I-DEFINITIONS 1. Definitions . In this agreement, unless the contrary intention appears- acquire " includes accept the surrender of a leasehold interest. and " acquisition " has a corresponding meaning; " amalgamation " means the addition of reconstruction land land held by an applicant;

Dairy Adjustment Progranh Agreement Act 1976, No. 10 81 " applicant" means a person or persons applying to participate under the Scheme and includes' a company partnership or Crown instrumentality or authority so applying; clause " means clause of this agreement; disposal " includes the surrender or grant of a leasehold interest and " dispose of " has a corresponding meaning; " economic unit " means a rural property which, in the opinion of the Authority, has under average efficient management the continuing capacity to produce a reasonable level of income, being a level that provides a sufficient return of capital investment and an adequate reward for the operator's labour and management skill plus a margin to permit needed development and adjustment to changing future conditions, based on the requirement, where the property is to be used primarily fore dairying and purposes incidental to dairying, that the property shall have facilities of such standards as may from time to time be agreed by the Minister and the State Minister for producing high quality milk; " financial year " means a period of twelve months ending on the thirtieth day of June; " holding " means the land offered by an applicant for disposal under the Scheme; " land" includes a leasehold interest in land; "marginal dairy farm " means a rural property not less than one half of the gross income from which is obtained from the production of milk or cream that-is derived from not less than twenty lactating cows, and which rural property, if used only for dairying and purposes incidental to dairying, is not in the opinion of the Authority an economic unit; " price " includes the consideration for the surrender of a leasehold interest; reconstruction land " means land acquired by the Authority under the Scheme; " State " means the State of Queensland; " structural improvements " includes houses, bails, sheds, fencing, stock yards and water supplies; "the Act " means the Marginal Dairy Farms Agreements Act1970-1974 and includes any amendments that may from time to time be made to that Act; " the Authority " means the State or the instrumentality or authority designated by the State to operate the Scheme on 'behalf of the State; " the Minister " means the Minister for Agriculture of the Australian Government and includes a Minister or other member of the Executive Council for the time being acting for that Minister; " the Scheme " means the Marginal Dairy Farms Reconstruction Scheme operated by the State in ' accordance with the provisions of this agreement;

82 Dairy Adjustment Program Agreement Act 1976, No. 10 " the State Minister " means the Minister of the State from time to time responsible for the administration of the Scheme on the part of the State and includes a Minister of the State for the time being acting on behalf of that Minister; " the State Treasurer " means the Treasurer of the State and includes a Minister of the State for the time being acting on behalf of the Treasurer of the State; " the Treasurer " means the Treasurer of the Australian Government and includes a Minister or other member of the Executive Council for the time being acting for the Treasurer. II-OBJECTIVES 2. State to operate Scheme. The State shall operate a Marginal Dairy Farms Reconstruction Scheme in accordance with the provisions of this agreement. 3. Provision of financial assistance . The Australian Government shall provide financial assistance to the State for the purposes of the Scheme upon the terms and conditions set out in this agreement. 4. Acquisitions and disposals . The Scheme shall- (a) to the extent that financial assistance is available to the State under this agreement and subject otherwise to the provisions of this agreement, provide for the making of agreements between the Authority and the owners of land comprised in marginal dairy farms in the State for the disposal of the land, including structural improvements thereon, to the Authority at prices based on market values current at the time of disposal; and (b) provide for the disposal by the Authority of land that becomes available for such disposal as a result of acquisitions under the Scheme, but so that- (i) subject to the next succeeding subparagraph, the price or rent in respect of such a disposal shall be based upon market values current at the time of disposal, having regard to the type of land use proposed and, if the Authority so desires, after taking into account costs incurred by the Authority in respect of the land after acquisition; (ii) the applicant obtaining land from the Authority will not be required to pay for structural improvements on the land that are unsuitable or redundant in relation to the proposed use of the land by the applicant; (iii) land will not be disposed of for use primarily for dairying unless it is to be used as part of a rural property that constitutes an economic unit; and (iv) disposals will be made so as to encourage the most practicable and economic use of land. 5. Other forms of assistance . The Scheme may encompass such forms of assistance other than the assistance referred to in clause 4 as are provided for in this agreement, including assistance to persons to leave dairying.

Dairy Adjustment Program Agreement Act 1976, No. 10 83 III-OPERATION OF SCHEME A-AMALGAMATIONS 6. Eligibility of outgoing dairy farmers . Applicants wishing to dispose of holdings under the Scheme shall be eligible to participate in the Scheme provided that the holding concerned is a marginal dairy farm and the applicant has been operating the holding for a period of not less than two years prior to the date of the application to participate in the Scheme or for such other period as the State Minister or a person authorised by the State Minister for the purpose may deem appropriate where special circumstances obtain. 7. Acquisition of land by Authority. (1) When acquiring holdings under the Scheme the Authority will do so in accordance with the following- (a) holdings shall be acquired at a price agreed by negotiation between the applicant or his nominated agent and the Authority ; (b) holdings shall be acquired without plant or livestock; (c) the price shall be based on the current market value of the holding, including the value of structural improvements, according to the system of tenure under which the holding is held; (d) on completion of the acquisition the Authority shall receive an unencumbered title to the holding. (2) The Authority will, upon acquiring a holding, make an estimate of the portion of the price of the holding that is attributable to structural improvements. 8. Approval to dispose . (1) Notwithstanding any other provision of this agreement, the Authority may give approval to the disposal by the owner of a marginal dairy farm of land comprised in the farm (including structural improvements to the land) to a person (in this clause referred to as " the purchaser ") other than the Authority provided that- (a) the price of the land and any improvements is based on market values current at the time of disposal; (b) the requirements specified in subparagraphs (iii) and (iv) of of paragraph (b) of clause 4 are met; and (c) land disposed of for rural uses that are not primarily dairying shall be used as part of a rural property that constitutes an economic unit. (2) Where approval is given to the disposal of land in accordance with subclause (1) of this clause the Authority may, for the purpose of assisting the purchaser to acquire the land- (a) pay to the purchaser an amount equal to the amount by which the price to be paid by the purchaser exceeds the price that he would have been required to pay if he had acquired the land from the Authority under the Scheme; and (b) make a loan to the purchaser of an amount not exceeding the amount by which the price exceeds the amount referred to in subparagraph (a) of this subclause.

84 Dairy Adjustment Program Agreement Act 1976, No. 10 9. Use of land held by Authority. Pending disposal reconstruction land may be utilised by the Authority as it deems fit, including short term lease. 10. Eligibility of applicants applying for reconstruction land. Applicants wishing to obtain reconstruction land will be eligible to participate in the Scheme provided that- (a) where the reconstruction land is to be used for amalgamation- the applicant is the owner of land or the occupier of land under the Crown Lands or other pertinent legislation of the State, such land being, in the opinion of the Authority, suitable for amalgamation; and (b) where the reconstruction land is not to be used for amalgamation -the applicant wishes to obtain the land for a forestry undertaking or for any other purpose except dairying, the Authority being satisfied that it is appropriate to use the land for that purpose. 11. Disposal of land by Authority . When disposing of reconstruction land or when providing assistance to an applicant to purchase land under the Scheme, the Authority will do so in accordance with the requirements specified in subparagraphs (iii) and (iv) of paragraph (b) of clause 4 and paragraph (1) (c) of clause 8. 12. Manner of disposal of land by Authority . (1) The Authority may for the purpose of the implementation of the Scheme dispose of reconstruction land in such manner as it may determine in keeping with the objectives of the Scheme. (2) Holdings acquired by the Authority may be sold as a whole or in parts or together with other reconstruction land, according to individual circumstances. (3) In the event of there being more applicants of apparent equal merit for reconstruction land than can be satisfied, allotment may be decided by ballot. 13. Terms and conditions of disposal . (1) Reconstruction land disposed of under the Scheme shall be disposed of for a tenure and on terms and conditions that accord with the practice in the State and the provisions of this agreement. (2) The terms and conditions shall be based on fair market value at the time of disposal having regard to the tenure and to the type of land use proposed. (3) The terms and conditions of disposal for amalgamation shall include conditions prohibiting the disposal, after amalgamation, by any means of any interest in any part of the amalgamated property during any period in respect of which money is owed or payable to the Authority by the applicant who obtains the reconstruction land, except with the consent of the State Minister or a person authorised by the State Minister for the purpose. (4) Those structural improvements on reconstruction land disposed of by the Authority and which the Authority indicates as being available for purchase and which the applicant designates as being useful will be sold to the applicant at values agreed with the Authority according to their usefulness to the applicant after amalgamation.

Dairy Adjustment Program Agreement Act 1976, No. 10 85 (5) Where the purchaser of reconstruction land is the owner of a rural property and has acquired the land under the Scheme for the purpose of incorporating it into the rural property and that incorporation has had the effect of causing structural improvements that were, at the time of acquisition, on the rural property to become unsuitable or redundant in relation to the proposed use by the purchaser of the combined property, the Authority may pay to the purchaser an amount in respect of the loss of value to the purchaser of those improvements. (6) Assistance as provided in the preceding paragraph shall not be given with respect to structural improvements that are not ordinarily used for dairy purposes unless the giving of the assistance is approved by the Minister or a person authorised by the Minister for the purpose and by the State Minister or a person authorised by the State Minister for the purpose. 14. Disposal of redundant , assets. (1) Structural improvements on reconstruction land which are not purchased by an applicant as provided in subclduse (4) of clause 13 and which the Authority considers might otherwise be used for dairying shall be disposed of by tender, public auction or otherwise, for removal or in situ with a small area of land. (2) Structural improvements which the Authority is satisfied will not be used for dairying may be dealt with as the Authority considers fit. 15. Assistance to develop . land. (1) Subject to subclause (2) of this clause , the Authority may, on such terms and conditions as the Authority sees fit- (a) make loans to persons who have acquired land under the Scheme , being loans for the purpose of developing the land acquired, by one or more of the following methods, as a rural property :- (i)• the improverient of, or the erection of structural improvements on that land; (ii) the purchase of livestock and equipment; and (b) make loans to persons referred to in paragraph (a) for the purpose of meeting the whole or a part of the cost of working the land acquired as a rural property during the period of development. (2) The assistance provided for by this clause shall not be given unless the Authority is satisfied that the person concerned has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which.the assistance is to be given. 15A. Land not in marginal dairy farm. Notwithstanding any other provision of this agreement, the Authority may, where the Minister or a person authorised by the Minister for the purpose and the State Minister or a person authorised by the State Minister for the purpose are satisfied that a proposed acquisition or a proposed disposal (including a disposal referred to in clause 8), or.a proposed acquisition and subsequent disposal, under the Scheme, of land comprised in a.rural property, not being a marginal dairy farm, would assist adjustment in the dairying industry, deal with the land under the Scheme as proposed as if the property were a marginal dairy farm.

8I Dairy Adjustment Program Agreement Act 1976, No. 10 B-CHANGEOVER TO REFRIGERATED BULK MILK DELIVERY 15BA. Loans for installation of vats. (1) Subject to clause 15BC, the Authority may make interest-free loans to the owners of marginal dairy farms for the purpose of- (a) meeting, in the case of a particular farm, the cost of the purchase and installation on the farm of a refrigerated vat of such size and standards as may from time to time be agreed by the Minister or a person authorized by the Minister for the purpose and the State Minister or a person authorised by the State Minister for the purpose, for the storage of whole-milk intended for use as fluid milk for human consumption or in the manufacture of butter, cheese or other products; and (b) making such other improvements on the farm as are required to enable the whole-milk in the vat to be collected from the farm. (2) This clause shall be deemed for the purposes of this agreement to have come into effect on the 21st August 1974 and to be operative in respect of a purchase and installation effected or improvements made on and from that date. 15BB . Repayment of borrowings . Subject to clause 15BC, the Authority may make interest-free loans to the owners of marginal dairy farms for the purpose of repaying amounts borrowed by them on or after the 23rd July 1973 and before the 21st August 1974 for a purpose specified in clause 15BA and not repaid, and the making of payments for the purpose of reimbursing the owners of marginal dairy farms for the interest paid by them on moneys so borrowed. 15BC. Conditions for loans. (1) Before a loan is made under the Scheme in accordance with clause 15BA or clause 15BB, the Authority will consult with the management of the factory which the applicant supplies to satisfy itself that the factory proposes to make bulk milk collections from the applicant's farm during the period that the applicant will be required to repay the loan. (2) The assistance provided for by clauses 15BA and 15BB shall not be given under the Scheme in the case of a particular farm unless the Authority is satisfied that there is a reasonable prospect that, by reason of the assistance and considering other assistance provided under the Scheme in respect of the farm, the farm will be an economic unit. (3) It shall be a condition of a loan under the Scheme in accordance with clause 15BA or 15BB that the borrower is to be liable to make additional payments, as determined by the Authority, in the event of failure to repay an instalment of the loan on, or within a specified period after, the due date for that repayment. Such payments may take the form of interest calculated on the outstanding balance of the loan at a rate determined by the Authority. C-DEVELOPMENT ASSISTANCE 15CA. Loans for development . The Authority may make loans to the owners of marginal dairy farms, on such terms and conditions as the Authority deems appropriate in the circumstances of the case, for the purpose of meeting, in the case of a particular farm- (a) the cost of developing the farm to the point where the farm has the continuing capacity to produce from dairying or activities incidental to dairying a reasonable level of income, being a level which makes the farm an economic unit; and

Dairy Adjustment Program Agreement Act 1976, No. 10 87 (b) the whole or a part of the cost of carrying on the farm during the period of development. 15CB. Availability of other finance . Assistance under the Scheme in accordance with clause l5CA shall not be given unless the Authority is satisfied that the person to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is given. D-DIVERSIFICATION ASSISTANCE 15DA. Loans and payments . Subject to clause 15 B, the Authority may- (a) make loans to the owners of marginal dairy farms, on such terms and conditions as it deems appropriate, for the purpose of meeting, in the case of a particular farm, the cost of converting by one or more of the following methods, the farm, wholly or in part, to a rural use other than dairying: (i) the acquisition of land adjoining, or within a reasonable working distance of, the farm for the purpose of working that land and land comprised in the farm as a single unit: (ii) the improvement of, or the erection of structural improvements on land comprised in the farm, including any land referred to in subparagraph (i); (iii) the purchase of livestock or equipment; (b) make loans to the owners of marginal dairy farms that are, wholly or in part, being converted to a rural use other than dairying for the purpose of meeting, in the case of a particular farm, the whole or a part of the cost of carrying on the farm during the period of conversion; (c) where milking plant or dairy bails on a marginal dairy farm that is, wholly or in part, being converted to a rural use other than dairying will lose some or all of its or their value to the owner of the farm after the conversion of the farm has been effected-pay to the owner of the farm an amount equivalent to the loss in value which the Authority considers has occurred. 15DB. Conditions of assistance . Assistance under the Scheme in accordance with clause 15DA shall not be given in the case of a particular farm unless the Authority is satisfied that- (a) the proposed use of land comprised in the farm (including any land proposed to be acquired) will be a more practicable and economic use of the land than dairying; (b) there is a reasonable prospect that, by reason of the assistance, the farm (including any land proposed to be acquired) will produce a reasonable level of income, being a level which makes the farm an economic unit; and (c) the person to be assisted has been unable to obtain a loan for the relevant purpose on reasonable terms from normal financial sources.

88 Dairy Adjustment Program Agreement Act 1976, No. 10 E-RELOCATION ASSISTANCE 15E. Loans on disposal . (1) The Authority may make loans (including interest-free loans) on such terms and conditions as it deems appropriate in the circumstances of the case, to persons, who after the 21st August 1974 have disposed of, or dispose of, to or with the approval of the Authority rural properties that are at the time of disposal marginal dairy farmers, being loans for the purpose of alleviating conditions of personal hardship being borne by the person concerned or a dependant of that person. (2) The maximum amount for a loan made in accordance with this clause shall be Three thousand dollars (S3 000) in any one case or such other amount as may be agreed from time to time by the Minister and the State Minister. F-GENERAL 16A. Position of Authority. The Authority shall not be under any obligation under the Scheme to acquire any particular holding or approve of any particular application. 16B. Other operational arrangements . Matters in connexion with the Scheme not provided for in this agreement (other than financial arrangements) shall be carried out as agreed from time to time by the Minister and the State Minister. IV-FINANCIAL ARRANGEMENTS 17. Financial assistance . (1) Subject to and to compliance by the Queensland Government and the Authority with the provisions of this agreement , the Australian Government shall, in accordance with and subject to the provisions of this agreement. provide, out of a total sum of Forty-three million dollars (S43 000 000) available to all the States, financial assistance to the State for the purposes of the Scheme. (2) The financial assistance shall consist of amounts equal to the amounts expended by the Authority in accordance with applications under the Scheme lodged with, and approved by, the Authority before the Ist July 1976 and for the purposes of this Part IV of this agreement is classified as- (a) loans and payments in relation to the change-over to refrigerated bulk milk delivery in accordance with clauses I5BA and l5nn; and (b) other expenditure by the Authority in accordance with the Scheme. 18. Total financial assistance . Notwithstanding anything contained in this agreement. the Australian Government shall not be obliged to make payments of financial assistance to the State under this agreement if the making of the payment would mean that payments by the Australian Government under this agreement and under agreements with other States in respect of like schemes would exceed in total the said sum of Forty-three million dollars (S43 000 000).

Dairy Adjustment Program Agreement Act 1976, No. 10 89 19. Advances . (1) The Treasurer may, at such times and in such amounts as he thinks fit, make advances on account of the payments that may be made by the Australian Government under clause 21. (2) An amount or part of an amount advanced by the Treasurer under this clause may be deducted by the Australian Government from an amount that subsequently becomes payable under clause 21 or, if no further amounts will become payable under that clause, shall be refunded by the State to the Australian Government at the request of the Treasurer. . 20. Use of advances . The Queensland Government shall ensure that an amount or any part of an amount advanced to the State and not refunded under the last preceding clause is not used or applied except for the operation of the Scheme. 21. Payments of financial assistance . The Australian Government shall, from time to time , at the request of the Queensland Government and subject to the provisions of this agreement make payments to the State of the financial assistance to be provided to the State under this agreement. 22. Supporting financial evidence . (1) The Queensland Government shall furnish to the Treasurer such documents and other evidence to justify the making of an advance under clause 19 or in support of a request by the Queensland Government for a payment to it by the Australian Government under clause 21 as the Treasurer may from time to time reasonably request, whether the request by the Treasurer is made before or after the .Australian Government has made the advance or a payment pursuant to the request by the. Queensland Government. (2) Any statement of expenditure by the. Queensland Government furnished to the Treasurer in connexion with a request for a payment under clause 21 shall be certified by the Auditor-General of the State as to its correctness in accordance with the books and documents of the Authority. 23. Interest . Interest at the rate of six per centum per annum shall accrue in respect of so much of each amount that has been advanced or paid to the State under the agreement in respect of expenditure referred to in paragraph (2) (h) of clause 17 as is repayable and has not for the time being been refunded or repaid to the Australian Government calculated from the date upon which the advance or payment was made by the Australian Government and compounded with half-yearly rests. 24. Repayments . (1) Subject to the provisions of this clause, the State shall repay to the Australian Government the whole of the payments made to the State under clause 21 in respect of assistance by way of loans referred to in paragraph (2) (a) of clause 17 and of the advance of such assistance made to the State and not refunded under clause 19 by twenty (20) equal consecutive half-yearly payments, the first payment to be made on the fifteenth day of July of the first financial year that occurs after the payment or advance was made by the Australian Government to the State and subsequent payments to be made on each succeeding fifteenth day of January and fifteenth day of July until the full amount of the repayment has been paid. 4

90 Dairy Adjustment Program Agreement Act 1976, No. 10 (IA) Subject to the provisions of this clause, the State shall repay to the Australian Government one half of each payment made to the State under clause 21 in respect of assistance referred to in paragraph (2) (b) of clause 17 and one half of so much of each advance of such assistance made to the State and as is not refunded under clause 19, together with the interest referred to in clause 23, by forty-six (46) equal consecutive half-yearly payments, the f,:st payment to be made on the fifteenth day of July of the second financial year that wholly occurs after the payment or advance was made by the Australian Government to the State and subsequent payments to be made on each succeeding fifteenth day of January and fifteenth day of July thereafter until the full amount of the repayment including interest, has been paid. 25. Prepayments. (1) In addition to making payments in accordance with clause 24, the State may on the fifteenth day of January or on the fifteenth day of July in any year, after the State Treasurer has given to the Treasurer notice in writing of at least one month of the intention to do so, pay to the Australian Government an amount that has been specified in the notice of the repayments that remain to be made by the State under that clause. (2) Interest at the rate of six per centum per annum shall accrue on amounts paid by the State in respect of assistance under paragraph (2) (b) of clause 17 in accordance with subclause (1) of this clause, calculated from the date of payment and compounded with half-yearly rests on each fifteenth day of January and fifteenth day of July. (3) When on any fifteenth day of January or fifteenth day of July the payment due by the State under clause 24 exceeds the amount by which the unrepaid balance of the total amount repayable under that clause together with (where applicable) interest accrued on that total amount up to and including that date exceeds the total of the amounts paid by the State to the Australian Government in accordance with subclause (1) of this clause together with (where applicable) interest accrued on those amounts up to and including that date under subclause (2) of this clause, the State shall pay to the Australian Government the amount of the second-mentioned excess in lieu of the amount due under clause 24 and no further payments shall be required to be made by the State to the Australian Government under that clause. 26. Financial administration and adjustments . (1) The Queensland Government agrees that the Scheme will be operated in such a way that, taking into account its experience with other schemes of rural assistance and the normal expectations as to factors that affect farmers' incomes that are current at the date of this agreement, the amount received by the Authority in the course of the operation of the Scheme could be reasonably expected to equal the State's costs of administration and the payments of principal and interest which the State is required to make to the Australian Government under this agreement. (2) Should the Queensland Government certify that after allowing for the State's administrative costs, the State incurred losses under the Scheme from circumstances beyond its control arising after the date of this agreement and disadvantageous compared with past experience and normal expectations as to factors that affect farmers' incomes referred to in subclause (1) of this clause, the Australian Government agrees to review the position with the Queensland Government with a view to adjusting amounts payable to the Australian Government by the State under this agreement to the extent of such losses.

Dairy Adjustment Program Agreement Act 1976, No. 10 91 (3) The provisions of this agreement in relation to the times at which payments are to be made by the State to the Australian Government and the amounts of the payments that are to be made may be varied in such manner as is agreed between the Australian Government and the Queensland Government upon a review carried out in accordance with subclause (2) of this clause. 27. Financial estimates . The Queensland Government shall prepare and furnish the Treasurer not later than the thirtieth day of April in each year a statement or statements showing the estimated expenditure necessary to operate the Scheme during the next financial year and estimates of the amounts that the Queensland Government will request the Australian Government to pay to the State under this agreement during that financial year. 28. Audit. (1) The accounts, books, vouchers, documents and other records of the State relating to the operation of the Scheme shall be subject to audit by the Auditor-General of the State. (2) Until such time as the total amount of the financial assistance to be provided to the State has been provided by the Australian Government and applied by the State in accordance with this agreement and supporting evidence to the satisfaction of the Treasurer in relation to all amounts advanced or paid by the Australian Government has been furnished by the Queensland Government, a report on the audits in respect of each financial year shall be furnished by the Auditor-General of the State to the Treasurer as soon as possible after the completion of the financial year, indicating whether the expenditure of moneys is in accordance with this agreement and including reference to such other matters arising out of the audits as the Auditor-General of the State considers should be reported to the Treasurer. 29. Other financial arrangements . Financial arrangements in connexion with the Scheme other than those provided for in this agreement shall be carried out as agreed from time to time between the Treasurer and the State Treasurer. V-GENERAL PROVISIONS 30. State to secure performance . The Queensland Government shall provide for and secure the performance by the State and its instrumentalities of the obligations of the State under this agreement. 31. Reporting . The Queensland Government shall report to the Australian Government on the progress and conduct of the Scheme at the intervals and in the form agreed from time to time by the Minister and the State Minister or by their respective delegates in that behalf. 32. Consultation . The Australian Government or the Queensland Government when requested by the other shall arrange for consultations between officers of the Australian Government and the Queensland Government on any matters in connexion with the Scheme.

92 Dairy Adjustment Program Agreement Act 1976, No. 10 IN WITNESS WHEREOF this agreement has been executed on behalf of the parties respectively as at the day and year first above written. SIGNED by the Honourable) EDWARD GOUGH WHITLAM, Prime Minister of Australia, in the presence of- R. F. MILLER. E. G. WHITLAM. SIGNED by the Honourable JOHANNES BJELKE-PETERSEN, JOH. BJELKE-P£TERSEN. Premier of Queensland , in the presence of-- KEITH SPANN. SCHEDULE 2 [s. 2] AMENDING AGREEMENT IN RELATION TO DAIRY PROGRAM QUEENSLAND 1975. ADJUSTMENT AN AGREEMENT made the second day of October, One thousand nine hundred and seventy-five between THE GOVERNMENT OF THE COMMONWEALTH OF AUSTRALIA (in this agreement called " the Australian Government ") of the one part, and THE GOVERNMENT OF THE STATE OF QUEENSLAND (in this agreement called " the Queensland Government ") of the other part. WHEREAS- (A) by an agreement between the Australian Government and the Queensland Government (in this agreement called " the Principal Agreement ") constituted by an agreement made the fourteenth day of September 1970 and varied by and, as so varied, set out in an agreement made the eleventh day of December 1974 provision was made for assistance to the dairy industry in so far as the policies of the Australian Government in respect of that assistance could be given effect to under and in accordance with the Marginal Dairy FarmsAgreements Act1970-1974 of the Australian Parliament (in this agreement called " the 1970-1974 Act "); (B) by the Dairy Adjustment Act1974 (in this agreement called " the Dairy Adjustment Act ") the Australian Parliament, in order that effect might be given to the whole of those policies, repealed the 1970-1974 Act and re-enacted and extended the provisions of that Act; . (C) by virtue of subsection 5 (1) of the Dairy Adjustment Act the Australian Government may make with any State an agreement providing for the making of payments by the Australian Government to the State for the purposes of a dairy adjustment program to be carried out by the State in accordance with arrangements set out in the agreement; (D) it is provided by subsection 3 (2) of the Dairy AdjustmentAct that, notwithstanding the repeal of the 1970-1974 Act, any agreement in force under that Act immediately before the commencement of the Dairy Adjustment Act continues in force after that commencement as if it had been made under the Dairy Adjustment Act and as if the marginal dairy farms

Dairy Adjustment Program Agreement Act 1976, No. 10 93 reconstruction scheme to be operated by the State in accordance with the. agreement were a dairy adjustment program to be carried out by the State in accordance with arrangements set out in the agreement; (E) the Australian Government and the Queensland Government are desirous of making an agreement by which the Principal Agreement will be amended to bring its provisions into conformity with the Dairy Adjustment Act and which will constitute an agreement for the. extended assistance. that may be granted to a State under that. Act: NOW IT IS HEREBY AGREED as follows:- 1. Clause 1 of the Principal Agreement is amended- (a) by deleting from the definition of " economic unit " all the words that follow " changing future conditions "; (b) by deleting the reference to and definition of " marginal dairy farm "; (c) by amending the definition of the expression " the Act " so that the expression and the definition are as follows:- the Act means the Dairy Adjustment Act1974 and includes any amendments that may from time to time be made to that Act; (d) by deleting the reference to and definition of the " Scheme " and inserting in its place the following reference and definition:- " the Program " means the Dairy Adjustment Program operated by the State in accordance with the provisions of this agreement; (e) by inserting at the end of the clause the following reference and definition- uneconomic dairy farm " means a rural property not less than one half of the gross income from 'which is obtained from the production of milk or cream that is derived from not less than twenty lactating cows, and which rural property, if used only for dairying and purposes incidental to dairying, is not in the opinion of the Authority an economic unit. 2. Clause 2 of the Principal Agreement is amended to provide as follows:- 2. The State shall operate a Dairy Adjustment Program in accordance with the provisions of this agreement. 3. The Principal Agreement as amended by this agreement shall, except in relation to its operation prior to the making of this agreement, be regarded as having been expressed as if all references to " the Scheme " were references to " the Program " as defined in clause I of the Principal Agreement. 4. The Principal Agreement, other than clauses 15eA and 15as, is amended by deleting the word " marginal ", wherever it appears, and inserting in its plate the word " uneconomic " and, where grammatically appropriate, changing the indefinite article " a " to " an ". 5. Clauses 15BA and 15as of the Principal Agreement are amended by deleting the word " marginal ", wherever it appears.

94 Dairy Adjustment Program Agreement Act 1976, No. 10 6. The Principal Agreement is further amended by inserting in Part III after Section E the following Section:- EA-CONVERSION OF DAIRY FACTORIES 15EA. Loans to meet factory conversion costs. (1) Subject to this clause, the Authority may make loans, on such terms and conditions as it deems appropriate, to the owners of dairy factories in the State for the purpose of meeting, in the case of a particular factory, the whole or part of the costs incurred by the owner of the factory after the 1st July 1974 in connexion with any alterations (including structural alterations) made, vehicles purchased and plant and equipment purchased and installed after that date, being alterations, vehicles, plant and equipment- (a) that were required to provide adequate facilities- (i) for the supply of wholemilk as refrigerated bulk milk to the factory; or (ii) for the. receipt, storage or processing of the wholemilk at the factory, in consequence of suppliers of wholemilk to the factory having recently commenced, whether before or after the commencement of this Act, to supply wholemilk to the factory as refrigerated bulk milk; or (b) that the State Minister or the Authority (where the Authority is not the State) is satisfied are required to provide adequate facilities of a kind specified in paragraph (a) for the purpose of enabling suppliers of wholemilk to the factory to commence to supply wholemilk to the factory as refrigerated bulk milk. (2) The assistance provided for by this clause for alterations, plant and equipment for the processing of wholemilk shall be given, in the case of a particular dairy factory, only with respect to alterations, plant and equipment required in accordance with subclause (1) for the processing -of wholemilk so supplied preparatory to the manufacture of any product derived from the wholemilk, unless the giving of the assistance is approved by- (a) the Minister or a person approved by the Minister for the purpose; and (b) the State Minister. (3) The assistance provided for by this clause shall not be given unless the State is satisfied that the owner to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given. (4) In this clause, a reference to the processing of wholemilk has the same meaning as that reference has when used in the Act. 7. Paragraph (2) (a) of clause 17 of the Principal Agreement is amended by inserting after " and 1:5BB " the words " and loans in relation to the conversion of dairy factories in accordance with clause 15EA."'. 8. Subclause (1) of clause 26 of the Principal Agreement is amended by deleting the words " the Scheme will be operated " and inserting in their place the words " the Authority will as far as practicable operate the Program ".

Dairy Adjustment Program Agreement Act 1976, No. 10 95 9. The Principal Agreement , as amended by this agreement, is confirmed and shall be known as " the Dairy Adjustment Agreement 1974-1975 ". IN WITNESS WHEREOF this agreement has been signed on behalf of the parties respectively as at the day and year first above written. SIGNED by the Honourable EDWARD GOUGH WHITLAM, Prime Minister of Australia, in the presence of- ALAN ROSE. E. G. WHITLAM. SIGNED by the Honourable JOHANNES BJELKE-PETERSEN, JOH. BJELKE-PETERSEN. Premier of Queensland , in the I presence of- J J. T. MAHER.