Farmers' Assistance Act Amendment Act 1971 (No. 2) (Qld)

1,020 Quaxtzlitxt ANNO VICESIMO ELIZABETHAE SECUNDAE REGINAE No. 80 of 1971 An Act to Amend the Farmers ' Assistance Act 1967-1971 in certain particulars [ASSENTED TO 22ND DECEMBER, 1971 ] 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 and citation . (1) This Act may be cited as the Farmers' Assistance Act Amendment Act 1971 (No. 2). (2) The Farmers' Assistance Act 1967-1971 is in this Act referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Farmers' Assistance Act 1967-1971.

I Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 1,021 2. Amendment of s. 3. Section 3 of the Principal Act is amended by- (a) omitting the definition " farmer " and inserting in its stead the following definition:- Farmer "-An owner of land who engages, otherwise than as an employee, in farming operations on that land and who satisfies the Board that he is dependent for his livelihood on those farming operations. The term includes- (a) an owner of land on which farming operations are carried on under a share-farming agreement, or a lease , or an agreement to lease, to which he is in any case a party and who satisfies the Board on the matter hereinbefore prescribed; (b) the personal representative of a deceased person who was a farmer within the meaning of this definition;"; (b) inserting after the definition " operating expenses " the following definition:- " " Owner "-Includes the lessee from the Crown of any land;". 3. Amendment of s. 6 . Section 6 of the Principal Act is amended by adding the following subsection:- " (4) If at any time a member of the Board is temporarily unable to perform his duties as a member the Governor in Council may, by notification published in the Gazette, appoint another person to act in his stead during the period of his inability. Where a member of the Board is a person who possesses a qualification for membership of the Board prescribed by subsection (2) of section 5 of this Act a person shall not be appointed to act in his stead under this subsection unless he possesses a like qualification. While he so acts, the person appointed to act in the stead of a member of the Board shall have and may exercise all the powers, authority, duties and functions of that member.". 4. Amendment of s. 10 . Section 10 of the Principal Act is amended by adding the following subsection:- " (5) The Governor in Council may, at any time, by notification published in the Gazette, appoint the Registrar or any other officer of the Public Service of the State to act in the stead of the Executive Director during any period of his temporary inability to perform his duties as such. An appointment made under this subsection may be made generally or to meet a particular occasion. While he so acts, a person so appointed shall have and may exercise all the powers, authority, duties and functions of the Executive Director.". 5. New s. 10A. The Principal Act is amended by inserting after section 10 the following section:- " 10A. Consultants and agents of Board . (1) Upon the recommendation of the Board, the Public Service Board may appoint and employ such consultants and agents as may be required

1,022 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 to enable the Board to properly exercise and perform its powers, authority, duties and functions under this Act and, subject to the provisions of any applicable award of an industrial court, commission or tribunal, the Board may pay such consultants and agents such fees, salary or wage as is determined from time to time by the Public Service Board.". 6. New ss. 13B and 13c . The Principal Act is amended by inserting after section 13A the following sections:- " 13B. Wool growers ' Assistance Fund . (1) The Wool growers' Assistance Fund established at the Treasury shall be maintained to be applied as assistance to wool growers of the State pursuant to a scheme to extend assistance to wool growers of central Queensland. (2) There shall be paid to and form part of the Wool growers' Assistance Fund- (a) moneys appropriated by Parliament for the purposes of that fund; (b) repayment of advances made from that fund to or for the benefit of farmers, being wool growers of central Queensland, for operating expenses, purchase of livestock, or for such other purposes of rural reconstruction as are from time to time prescribed by the Governor in Council by Order in Council; (c) interest, commission and other income derived by the Board that in the Board's opinion should be credited thereto. (3) There shall be paid from the Wool growers' Assistance Fund- (a) moneys approved by the Board to be applied as assistance to or for the benefit of farmers, being wool growers of central Queensland, for operating expenses, purchase of livestock, or for such other purposes of rural reconstruction as are from time to time prescribed by the Governor in Council by Order in Council; (b) all expenditure of the Board incurred in connexion with the proper exercise of its powers and the proper performance of its functions in administering the scheme referred to in subsection (1) of this section; (c) moneys payable to the Treasury by way of repayment of moneys appropriated to the fund by the Treasury as and when the Governor in Council, by Order in Council, requires such repayment to be made together with any further moneys required by an Order in Council to be so paid by way of interest in connexion therewith. The provisions of this Act that apply with respect to securing assistance to farmers generally shall apply (subject to all necessary modifications) with respect to securing assistance from the Wool growers' Assistance Fund for the benefit of farmers being wool growers of central Queensland and with respect to the powers of the Board in relation to such last -mentioned farmers and to advances made to them.

Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 1,023 (4) Where prior to the passing of the Farmers' Assistance Act Amendment Act 1971 (No. 2) the Board has taken any mortgage or other security or made any agreement, made any advances from the Wool growers' Assistance Fund, or done any other act or thing. in administering bona fide the scheme referred to in subsection (1) of this section the same shall be and shall be deemed always to have been a valid exercise of the Board's powers under this Act and every such mortgage, other security, or agreement shall take effect and be enforceable according to its terms. 13C. Board' s powers in relation to other funds . If at any time any fund other than those specified in this Act is established at the Treasury pursuant to a scheme to extend assistance to farmers, generally or of a particular class, and the Board is charged with the administration of that scheme, the provisions of this Act that apply with respect to securing assistance to farmers generally shall apply (subject to all necessary modifications) with respect to securing assistance pursuant to the scheme. 7. Repeal of s. 14. The Principal Act is amended by repealing section 14. 8. Amendment of s. 14A. Section 14A of the Principal Act is amended by, in subsection (1)- (a) inserting after the word " Board " the words " at any time and from time to time "; (b) inserting after the words " property development," the words " effecting a composition in satisfaction of all or any of his debts or a scheme of arrangement of his affairs,". 9. Repeal of s. 15. The Principal Act is amended by repealing section 15. 10. Amendment of s. 16. Section 16 of the Principal Act is amended by, in subsection (1), omitting the words " section 14 or section 14A of this Act which has been entered in the register of applications " and inserting in their stead the words " section 14A of this Act ". 11. Amendment of s. 17. Section 17 of the Principal Act is amended by- (a) omitting the words " section 14 or "; (b) adding to the first paragraph the words " or any other matter relevant to an application made under section 14A of this' Act ". 12. Repeal of s. 18 . The Principal Act is amended by repealing section 18. 13. Amendment of s. 18A. Section 18A of the Principal Act is amended by- (a) in subsection (1), (i) inserting after the words " property development," the words " effecting a composition in satisfaction of all or any of his debts or a scheme of arrangement'of his affairs,";

1,024 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 (ii) inserting in subparagraph (a) after the words " given upon " the word " and "; (iii) adding the following paragraph:- " The provisions of paragraph (b) or (c) of this subsection do not apply in respect of assistance to be given from the Wool growers' Assistance Fund or any other fund maintained solely with moneys of the State."; (b) adding the following subsection:- " (3) All moneys advanced by the Board under this Act together with all interest charges payable thereon or in connexion therewith and all costs of recovery of such moneys or charges shall be a charge in favour of the Board over the estate or interest of the farmer in any land. A charge by this subsection created in favour of the Board shall be of no force or effect until, in the case of land to which The Real Property Acts 1861 to 1963 apply, there is made on the copy of the instrument of title to the land held in the office of the Registrar of Titles or a branch thereof, according to the situation of the land, a noting of the lodgment of a caveat against dealings with the estate or interest of the farmer in that land that are inconsistent with the charge. A charge by this subsection created in favour of the Board shall be subject to any security entered into for the purposes of this Act and to any mortgage, charge or lien to which the estate or interest of the farmer in any land is subject at the date when the charge created by this subsection takes effect.". 14. Amendment of s. 19. Section 19 of the Principal Act is amended by, in subsection (1), omitting the words " section 14 or ". 15. Amendment of s. 20 . Section 20 of the Principal Act is amended by, in subsection (1), omitting the words " section 14 or ". 16. Repeal of and new s . 21. The Principal Act is amended by repealing section 21 and inserting in its stead the following section:- 1121. Stay of proceedings . (1) On and from a date determined by the Board in relation to an application under section 14A of this Act and thereafter until the stay of proceedings ceases to apply to the applicant, his estate and effects the Board may grant a stay of proceedings. For as long as a stay of proceedings continues to apply to the farmer, his estate and effects, no action, execution, proceeding whether judicial or extra judicial on default or for breach of covenant under any mortgage or other security for money or under any agreement for sale or purchase of land, or other process or proceeding shall be commenced or continued or put in force against the farmer named in the grant of the stay, his estate or effects or against his successor, being a farmer, his estate or effects, by any person, nor shall any person, if the owner of a chattel that has been delivered to the farmer under a hire-purchase agreement and that is in the possession of the farmer at the time

Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 1,025 the stay is granted, take any step to terminate the agreement or to take the chattel out of the possession of the farmer or his successor , being a farmer. (2) If the Board grants a stay of proceedings it shall cause the Registrar to enter the prescribed particulars thereof in the register of applications. (3) The Board may grant a stay of proceedings for such period as it thinks fit and, subject to section 23 of this Act, the Board may, at any time and from time to time extend the period for which the stay is to continue to apply or may at any time revoke the stay. (4) If an application under section 14A of this Act is approved by the Board at a time when a stay of proceedings granted by the Board is in force, the stay shall continue to apply to the applicant, his estate and effects as granted or extended by the Board. (5) If an application under section 14A of this Act is rejected by the Board at a time when a stay of proceedings granted by the Board is in force, the fact of the rejection shall be entered in the register of applications' and thereupon the stay shall cease to apply to the applicant, his estate and effects.". 17. Amendment of s. 22 . Section 22 of the Principal Act is amended by- (a) in subsection (1), (i) omitting from the general words that precede provision (a) the words " to whom the provisions of subsection (1) of that section apply " and inserting in their stead the words " to whom and to whose estate and effects a stay of proceedings granted by the Board under subsection (1) of that section applies "; (ii) omitting from provision (a) the words " subsection (4) of section 14or"; (iii) omitting the general words from and including the words " direct and declare " to the end of the subsection and inserting in their stead the words " direct and declare that the stay of proceedings shall cease to apply to the farmer, his estate and effects and upon entry in the register of applications of the making of the direction and declaration the stay shall cease to apply to the farmer, his estate and effects "; (b) in subsection (2), (i) omitting the words " the provisions of subsection (1) of section 21 of this Act have ceased to apply" and inserting in their stead the words " a stay of proceedings has ceased to apply "; (ii) omitting the words " the provisions. of the said subsection (1) have ceased to apply " and inserting in their stead the words " a stay of proceedings has ceased to apply ". 18. Amendment of s. 24 . Section 24 of the Principal Act is amended by omitting the words "the provisions of subsection (1) of section 21 of this Act extend" and inserting in their stead the words "a stay of proceedings granted by the Board under subsection (1) of section 21 of this Act or a protection order made by the chairman of the Board under subsection (1) of section 30 of this Act applies ". 33

1,026 Farmers ' Assistance Act Amendment Act (No. 2) 1971, No. 80 19. Repeal of and new ss. 25 and 26 . The Principal Act is amended by repealing sections 25 and 26 and inserting in their stead the following sections:- 66 25 . Stay of proceedings and protection order unaffected by death or mental debility of farmer . A stay of proceedings granted by the Board under section 21 of this Act and a protection order made by the chairman of the Board under section 30 of this Act, the provisions of those sections and of sections 22, 23 and 24 of this Act shall apply and extend to and in respect of a farmer, his estate and effects notwithstanding his death or that he is a patient within the meaning of The Mental Health Acts 1962 to 1964. 26. Guarantors of farmer's debts protected . A stay of proceedings granted by the Board under section 21 of this Act and a protection order made by the chairman of the Board under section 30 of this Act, the provisions of those sections and of sections 22, 23 and 24 of this Act shall apply and extend to and in respect of any person who has guaranteed the payment of any debt or liability of a farmer and the estate and effects of that person for as long as the stay of proceeding or, as the case may be, the protection order and the provisions of the specified sections apply and extend to the farmer, his estate and effects.". 20. Amendment of s. 28 . Section 28 of the Principal Act is amended by omitting the words " no application for assistance under this Act shall be deemed to be or have effect as a stay of proceedings " and inserting in their stead the words " a stay of proceedings or a protection order granted or made in connexion with an application for assistance made under this Act shall not have any effect ". 21. Amendment of s. 29 . Section 29 of the Principal Act is amended by, in subsection (1), omitting the words " the provisions of subsection (1) of section 21 of this Act apply with respect to " and inserting in their stead the words " a stay of proceedings or a protection order granted or made under this Act applies to ". 22. New s. 30. The Principal Act is amended by inserting after section 29 the following section:- " 30. Protection order. (1) The chairman of the Board may, upon the application of an applicant for assistance under section 14A of this Act, make a protection order directed against any person or body of persons specified in the application therefor. The chairman- (a) may make a protection order subject to such conditions as he thinks fit; (b) shall not refuse an application for a protection order without the concurrence of the Board. (2) A protection order, if made, shall be made in the prescribed form and the Board shall forthwith give written notice thereof by means of registered post to the person or body of persons against whom it is directed.

Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 1,027 (3) Unless it is sooner revoked by the Board, a protection order shall continue to operate for a period of three months from the date of its making and for any extension of time duly granted by the Board. (4) The Board may- (a) of its own motion, or on the application of the farmer for whose benefit the order operates , from time to time extend the period for which a protection order shall continue to operate but so that the total period of its operation shall not exceed twelve months; (b) of its own motion, or on the application of the farmer for whose benefit the order operates , or of the person or body of persons against whom it is directed , revoke a protection order. If the Board revokes a protection order it shall forthwith give written notice of the revocation by means of registered post to the farmer for whose benefit the protection order operates and to the person or body of persons against whom it is directed. (5) For as long as a protection order continues to operate, (a) no action , execution , proceeding whether judicial or extra judicial on default or for breach of covenant under any mortgage or other security for money or under an agreement for sale or purchase of land, or other process or proceeding shall be commenced or continued or put in force against the farmer named in the order, his estate or effects or against his successor , being a farmer, his estate or effects by the person or body of persons against whom the order is directed or his or their successors and assigns , nor shall any such person or body of persons or his or their successors and assigns, if the owner of a chattel that has been delivered to the farmer under a hire - purchase agreement and that is in the possession of the farmer at the time the order is made, take any step to terminate the agreement or to take the chattel out of the possession of the farmer or his successor , being a farmer , save with the consent of the chairman of the Board first had and obtained; (b) where any moneys due or payable to the farmer named in the order or any property of the farmer is subject to a mortgage , charge or lien, the order shall not prejudice or affect any right had by the mortgagee, chargee or lienee to receive such moneys or the proceeds of sale of such property in priority to the farmer; (c) the order shall not-prejudice or affect rights or remedies had by any mortgagee or secured creditor of the farmer named in the order or of his successor , being a farmer, if the mortgagee or creditor or any mortgagee or creditor subsequent to him has been in possession of the property subject to the mortgage or other security for at least two months before the making of the order.".

1,028 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 23. Renumbering certain sections . The Principal Act is amended by renumbering the sections specified in the first column of the first schedule to this Act with the numbers specified in the second column of the schedule respectively set opposite those sections. 24. Amendment of s. 31 . Section 31 (as renumbered) of the Principal Act is amended by- (a) in subsection (1), (i) omitting the first paragraph and inserting in its stead the following paragraph:- " The Registrar shall keep a register of applications and shall enter therein all stays of proceedings granted by the Board and protection orders made by the chairman of the Board."; (ii) omitting the third paragraph; (b) in subsection (2), inserting after the words " Magistrates Court " the words ", and in the Brisbane District registry of the Federal Bankruptcy Court ". 25. Amendment of s. 34. Section 34 (as renumbered) of the Principal Act is amended by omitting the words " relating to debt adjustment of and relief to farmers ". 26. New ss. 35, 36 and 37. The Principal Act is amended by inserting after section 34 (as renumbered) the following sections:- " 35. Specific powers of Board . The Board may at any time and from time to time- (a) with the Minister's approval, waive the payment of any amount of interest, or any part thereof, that has accrued or that may accrue in respect of any moneys advanced to a farmer by the Board; (b) with the Minister's approval, write off, wholly or in part, any principal moneys advanced to a farmer by the Board that, in the Board's opinion cannot be recovered; . (c) write down the value of redundant assets in a farm build-up proposition by meeting the cost involved therein from moneys available to the Board under the terms of the agreement governing the proposition. 36. Postponement of priorities . (1) Notwithstanding anything in any other Act contained or implied or any rule of law or practice- (a) if an estate or interest in land intended to be mortgaged to the Board is subject to an existing mortgage or encumbrance, and the existing mortgagee or encumbrancee, by writing endorsed on the instrument that evidences the same, consents to the mortgage to be given to the Board taking priority over the existing mortgage or encumbrance, the mortgage to be given to the Board shall, when executed, without any release or replacement of the existing mortgage or encumbrance, take priority over the same and the Board may exercise

Farmers ' Assistance Act Amendment Act (No. 2) 1971, No. 80 1,029 the rights conferred on it by such mortgage in priority to the mortgagee or encumbrancee who has so consented, his successors and assigns; (b) if an estate or interest in land is subject to a mortgage in favour of the Board and to a subsequent mortgage or encumbrance in favour of a person other than the Board and that person consents in writing to the Board's rights as a secured creditor in relation to further advances taking priority over his rights in relation to moneys secured to him by the mortgage or encumbrance the Board's rights as aforesaid shall take priority over the rights of that person as a secured creditor accordingly and the Board may exercise the rights conferred on it in relation to the further advances in priority to that person, his successors and assigns. (2) Where priority is acquired by the Board under subsection (1) of this section the person having custody of the register in which the mortgage or encumbrance is registered shall, upon his being furnished with sufficient evidence thereof, note the particulars of the acquisition in the register and on the copy held in his office of the mortgage or encumbrance that has thereby lost priority. 37. Board' s securities exempt from duties and charges. Notwithstanding the provisions of any other Act a mortgage or other document executed to secure to the Board an advance made under this Act, a memorandum of release thereof, or a document made for the purposes of this Act shall not be liable to the payment of stamp duty or registration fees.". 27. New ss. 38 and 39. The Principal Act is amended by inserting after section 37 (as enacted by this Act) the following sections:- " 38. Protection of officers under Act. A member of the Board and any person employed under or for the purposes of this Act shall not incur any liability on account of any thing done by him bona fide in the exercise of his powers or the performance of his duties for the purposes of this Act. 39. Board ' s annual report . As soon as practicable after the close of each financial year of the Board's operations the Board shall furnish a report of its operations during the twelve months' period then last past to the Minister who shall lay the same before the Legislative Assembly as soon as practicable thereafter.". 28. Ratification of agreement . The making for and on behalf of the State of Queensland of the agreement a copy of which is set out in the second schedule to this Act is and, it is hereby declared, always was authorized. The agreement executed as at the fourth day of June 1971 by the Honourable Johannes Bjelke-Petersen, Premier and Minister for State Development of the State of Queensland, is approved and ratified accordingly.

1,030 Farmers' Assistance Act Amendment Act (No. 2) 1971, No 80 FIRST SCHEDULE [s. 23] Section to be renumbered Amended section number Section 30 Section 31 Section 32 Section 33 Section 34 Section 35 Section 36 Section 37 Section 38 Section 39 31 32 33 34 40 41 42 43 44 45 SECOND SCHEDULE [s. 28] AN AGREEMENT made the day of One thousand nine hundred and seventy - BETWEEN THE COMMONWEALTH OF AUSTRALIA ( in this agreement called "the Commonwealth ") of the first part, THE STATE OF NEW SOUTH WALES of the second part , THE STATE OF VICTORIA of the third part, THE STATE OF QUEENSLAND of the fourth part, THE STATE OF SOUTH AUSTRALIA of the fifth part, THE STATE OF WESTERN AUSTRALIA of the sixth part, and THE STATE OF TASMANIA of the seventh part. WHEREAS- (a) the Commonwealth and the States recognize that there is need to provide assistance to persons engaged in rural industries throughout Australia in the interest of those i ndustries and of Australia generally; (b) Ministers of the Commonwealth and of the States have agreed upon the Outline of Proposals for Rural Reconstruction set out in the Schedule to this agreement as constituting a Scheme under which assistance of various kinds could be provided; (c) the carrying out of the said Scheme is dependent upon financial assistance being granted by the Parliament of the Common- wealth to the States for that purpose; (d) the Parliament of the Commonwealth has authorized the execution of this agreement by and on behalf of the Common- wealth and the provision of financial assistance to the States as provided in this agreement;

Farmers' AssistanceAct Amendment Act (No. 2) 1971, No. 80 1,031 NOW IT IS HEREBY AGREED as follows:- I-INTRODUCTORY 1. Operation of Agreement . (1) This agreement shall, as between the Commonwealth and a State, come into force when it has been entered into by the Commonwealth and that State. (2) Notwithstanding that all the States of New South Wales, Victoria, Queensland, South Australia,. Western Australia and Tasmania are named as parties to this agreement, this agreement shall operate as an agreement between the Commonwealth and each State in respect of which it has come into force as fully and effectually as if the State or States in respect of which it has come into force were the only State or States named as a party or as parties to the agreement. (3) In this agreement, each State in respect of which the agreement has come into force is referred to as a " State ", and the expression " the States " means, except where the context otherwise requires, all of the States in respect of which for the time being the agreement is in force. 2. Performance of Agreement . The Commonwealth will provide for or secure the performance by it and its authorities of the obligations of the Commonwealth under this agreement and each of the States will provide for or secure the performance by the State and its authorities and instrumentalities of the obligations of the State under this agreement. 3. Interpretation . (1) In this agreement, unless the contrary intention appears- " financial year " means a period of twelve months ending on the thirtieth day of June; " the Authority " means, in relation to a State, the authority or authorities of the State that has or have the administration of the Scheme on behalf of the State and, in a case where there are more than one authority, refers, where the context requires reference to one authority, to the relevant authority of the State; " the Scheme " means the Scheme to be established and operated by a State in accordance with clause 4 of this agreement; " the Treasurer " means the Treasurer of the Commonwealth. (2) References in this agreement to a Minister of the Commonwealth or of a State shall include a reference to a Minister for the time being acting for or on behalf of the Minister referred to. II-ADMINISTRATION OF SCHEME 4. State to operate Scheme . (1) Each State will, by using the financial assistance provided by the Commonwealth in accordance with this agreement, establish and operate a scheme of financial assistance to persons engaged in rural industries in that State. (2) The Scheme shall consist of the forms of assistance described in, and shall be established and operated in conformity and in accordance with the general principles and the provisions set out in, the Outline of

1,032 . Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 Proposals for Rural Reconstruction contained in the Schedule to this agreement, as amended at any time in pursuance of clause 10 of this agreement. 5. Components of Scheme. For the purposes of this agreement the various forms of assistance under the Scheme are referred to as follows:- (a) the assistance provided for in Part II of the Schedule-as debt reconstruction; (b) the assistance provided for in Part III of the Schedule-as farm build-up; and (c) the assistance provided for in Part IV of the Schedule-as rehabilitation. 6. Allocation of Financial Assistance . Subject to the provisions expressly made by this agreement , the financial assistance provided by the Commonwealth under this agreement shall be allocated between the forms of assistance under the Scheme as the State considers appropriate but with the general objective that one half of the financial assistance made available over the period of four years as hereinafter provided will be applied to farm. build-up. 7. Farmers' Debt Adjustment Funds. Where funds _ are available to a State from balances arising from the operation of the Commonwealth Loan (Farmers' Debt Adjustment) Act 1935, as amended, and are capable of being used for a form of assistance included in the Scheme, those funds shall be used by the State for that form of assistance before any financial assistance is provided by the Commonwealth under this agreement for that purpose. 8. Interest Rates under Scheme . The rates of interest at which moneys are lent by the Authority of a State under the Scheme shall be- (a) for loans for debt reconstruction-at such rates as will average not less than four per centum per annum over all loans made; and (b) for loans for farm build-up-at not less than six and one-quarter per centum per annum. 9. Administration Costs. Each State will provide from its own budget the administrative costs incurred in and in connexion with the establishment and operation of the Scheme. 10. Amendment of the Schedule . (1) The provisions of the Schedule to this agreement may be amended from time to time by agreements between the Ministers of the Commonwealth and of the States for the time being responsible for the administration of the Scheme. (2) Where so agreed between the Commonwealth Minister and the Minister or Ministers of the relevant State or States, the amendments to the provisions of the Schedule to this agreement may be made and take effect as between the Commonwealth and one or more of the States without affecting the operation of this agreement as between the Commonwealth and a State the Minister of which has not so agreed.

Farmers' Assistance Act AmendmentAct (No. 2) 1971. No. 80 1,033 III-FINANCIAL ASSISTANCE 11. Provision of Financial Assistance . Subject to, and to the performance by a State of, the provisions of this agreement, the Commonwealth will make available to the States for the purposes of the Scheme financial assistance amounting to One hundred million dollars ($100,000,000), or such lesser amount as may be allocated among the States under the next succeeding clause , over a period commencing on the date of this agreement and ending on the thirtieth day of June, 1975. 12. Allocation of Financial Assistance between States. (1) Subject to subclauses (2) and (3) of this clause the financial assistance shall be allocated to the States as follows:-New South Wales, $32,000,000; Victoria, $22,070,000; Queensland, $16,000,000; South Australia, $12,000,000; Western Australia, $14,630,000; Tasmania, $3,300,000. (2) The allocation of financial assistance provided for by subclause (1) of this clause shall be varied from time to time in accordance with any agreement in respect of allocation of funds reached by the Commonwealth and the States upon a review under clause 24 of this agreement. (3) In the event that this agreement does not come into force or ceases to be in force in relation to one or more than one of all States, the amount of financial assistance that is allocated to that State or those States under. the preceding subclauses of this clause may be allocated to the States in relation to which the agreement is in force to the extent and according to such allocation as is determined by the Commonwealth after consultation with the States. 13. 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 Commonwealth under clause 15 of this agreement. (2) An amount or part of an amount advanced by the Treasurer under this clause may be deducted by the Commonwealth from an amount that subsequently becomes payable under clause 15 of this agreement or, if no farther amounts will become payable under that clause, shall be refunded by the State to the Commonwealth at the request of the Treasurer. 14. Use of Advances . A State 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 establishment or operation of the Scheme. 15. Payments of Financial Assistance . The Commonwealth shall, from time to time, at the request of a State 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 in amounts equal to the expenditure incurred by the State (other than administrative expenses) in the establishment and operation of the Scheme. 16. Supporting Financial Evidence . (1) A State shall furnish to the Treasurer such documents and other evidence to justify the making of an advance under clause 13 of this agreement or in support of a request

1,034 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 by the State for a payment to it by the Commonwealth under the last preceding clause as the Treasurer may from time to time reasonably request, whether the request by the Treasurer is made before or after the Commonwealth has made the advance or a payment pursuant to the request by the State. (2) Any statement of expenditure by a State furnished to the Treasurer in connexion with a request by the State for a payment under clause 15 of this agreement shall be certified by the Auditor-General of the State as to its correctness in accordance with the books and documents of the Authority. 17. Interest. (1) 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 this agreement as is repayable by the State under clause 18 of this agreement and has not for the time being been refunded or repaid to the Commonwealth, calculated from the date upon which the advance or payment was made by the Commonwealth. (2) Interest accrued under this clause prior to the date upon which interest becomes included in the payments provided for by the next succeeding clause, shall be payable on the fifteenth day of January and the fifteenth day of July in each year.' 18. Repayments by the State with Interest. (1) Subject to the provisions of the next succeeding clause, each State shall repay to the Commonwealth three quarters of each of the advances made to the State and not refunded under clause 13 of this agreement and of the payments made to the State under clause 15, together with interest referred to in subclause (2) of this clause, by thirty-four equal half-yearly payments, the first payment to be made on the fifteenth day of July of the fourth financial year that wholly occurs after the advance or payment was made by the Commonwealth to the State and subsequent payments to be made on each fifteenth day of January and fifteenth day of July thereafter until the full amount of the repayment, including interest, has been paid. (2) The interest to be included in payments referred to in subclause (1) of this clause shall be interest that will, in accordance with subclause (1) of the last preceding clause, accrue in respect of the relevant advance or payment on and from the commencement' of the fourth financial year that wholly occurs after the advance or payment was made by the Commonwealth. 19. Prepayments by the State. (1) In addition to making payments in accordance with the last preceding clause, a State may on the fifteenth day of January or on the fifteenth day of July in any year, after having given to the Treasurer notice in writing of at least one month of its intention to do so, pay to the Commonwealth 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 a State 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.

Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 1,035 (3) When on any fifteenth day of January or fifteenth day of July the payment by the State under the last preceding clause exceeds the amount by which the unrepaid balance of the total amount repayable under that clause together with interest accrued on that total amount up to and including that date exceeds the total of the amounts paid by the State to the Commonwealth in accordance with subclause (1) of this clause together with interest accrued on those amounts up to and including that date under subclause (2) of this clause, the State shall pay to the Commonwealth the amount of the second-mentioned excess in lieu of the amount due under the last preceding clause and no further payments shall be required to be made by the State to the Commonwealth under that clause. 20. Financial Administration and Adjustments . (1) Each State agrees to operate the Scheme 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 amounts received by the Authority in the course of the operation of the Scheme could be reasonably expected to equal the payments of principal and interest which the State is required to make to the Commonwealth under this agreement. (2) Should a State certify that, without taking into account its administrative costs, it has 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 Commonwealth agrees to review the position with the State with a view to adjusting amounts payable to the Commonwealth by the State under this agreement to the extent of such losses. (3) The provisions of this agreement in relation to the times at which payments are to be made by the State to the Commonwealth and the amounts of the payments that are to be made may be varied in such manner as is agreed between the Commonwealth and the State upon a review carried out in accordance with subclause (2) of this clause. 21. Financial Estimates . A State shall prepare and furnish to 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 State will request the Commonwealth to pay to the State under this agreement during that financial year. 22. Audit. (1) The accounts, books, vouchers, documents and other records of a 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 a State has been provided by the Commonwealth 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 Commonwealth has been furnished by the State, 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.

1,036 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 21. 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 Treasurer of each State. IV-GENERAL 24. Review. (1) The operation of the Scheme in relation to all of the States will be reviewed from time to time as appropriate by the Commonwealth and the States in the light of experience in its administration. (2) A review under subclause (1) of this clause shall be carried out not later than the time necessary to enable to be brought into operation by the first day of July, 1972 any adjustments or amendments which it may be agreed should be made to the Scheme in respect of- (a) the funds to be provided for the Scheme; (b) the allocation of funds between the States; (c) the provisions for losses (other than unforeseen losses) and . write-offs available to the States under the Scheme; (d) the interest rates to be charged to borrowers; and (e) the proportion of the financial assistance applied to farm build-up. 25. Exchange of Information . The Authorities of the States and appropriate Commonwealth officers associated with the Scheme will meet together as appropriate and at least once in each year and exchange information on any matters pertinent to the Scheme. THE SCHEDULE RURAL RECONSTRUCTION-OUTLINE OF PROPOSALS Part I-General Principles (a) No agricultural industry is excluded from the scheme (except for farm build-up cases eligible under the Marginal Dairy Farms Reconstruction Scheme). It has, however, been framed with the circumstances of the sheep and sheep/wheat industries primarily in mind, Where the particular circumstances of an agriculturalist in another industry are such that the scheme applies to his circumstances, it is open to him to. apply. It is recognised that in respect of farm build-up the particular circumstances of some industries (e _g. apples, pears, dried vine fruits) may need additional special consideration. (b) The general principle to be applied is to distribute the available resources as widely as-practicable, but the over-riding objective is to help restore to economic viability those farms and farmers with the capacity to maintain viability once achieved. (c) It is expected that each administering Authority will avail itself of the best available advice on agricultural technology and market prospects. (d) Companies will not be eligible for assistance unless the Authority, having considered the shareholdings and being satisfied that the shareholders are bona fide primary producers relying primarily on the income from the company for their livelihood, considers it appropriate to provide assistance.

Farmers ' Assistance Act Amendment Act (No. 2) 1971, No. 80 1,037 (e) In cases of assistance under the heading of debt reconstruction or by way of advances for carry-on expenses, plant, livestock and property development in farm build-up cases, it is an essential part of the scheme that adequate supervision of property management and the financial affairs of the assisted farmer is maintained. If the Authority deems it necessary it may require that moneys receivable on account of the property will be received by the Authority or its agent or a body nominated by the Authority, payments within the approved budgets being made through normal channels. (f) Repayment of advances made by the Authority and interest due thereon will be secured by the best and most appropriate security available, recognising that this may involve ranking after existing securities. (g) A transfer of the property before advances made by the Authority are repaid will be permitted only with the consent of the Authority, which will upon transfer, or upon succession on the death of the borrower, have the right to review its arrangements in respect of the property. (h) The arrangements with the assisted farmer are subject to regular review by the Authority from time to time and are liable to termination in the event of the farmer ceasing to be personally in working occupation of the property, failing to observe his obligations and undertakings under the arrangements or in the event of the Authority arriving at the conclusion that for any reason he lacks prospects of successful occupation. Otherwise the arrangements shall be terminable when the Authority arrives at the conclusion that his prospects of successful occupation are no longer dependent on the extension of concessional finance. Upon termination of the arrangements, all debts will then become due and payable. Part II-Debt Reconstruction (1) Purpose-To assist a farmer who, although having sound prospects of long term commercial viability, has used all his cash and credit resources and cannot meet his financial commitments. (2) Tests of Eligibility- (a) The applicant is unable to obtain finance to carry on from any other normal source and is thus in danger of losing property or other assets if not assisted under the scheme. (b) There is a reasonable prospect of successful operation with the assistance possible under the scheme, the prime requirement being ability to service commitments, and to reach the stage of commercial viability within a reasonable time. (c) Assistance is merited and the applicant's difficulties are not substantially due to circumstances within his control. (3) Nature of Assistance-The assistance to be provided may encompass where necessary :- (a) A re-arrangement and/or a composition of debts to allow more time for payment. (b) The negotiation of a concessional rate of interest for existing rates. (c) Advances of additional funds for carry-on expenses, livestock and further property development, at reasonable interest rates.

1,038 Farmers ' Assistance Act Amendment Act (No. 2) 1971, No. 80 (d) Where the State legislation so provides, a protection order against any creditor who has threatened action for debt, to apply while the application is under consideration and subject to such extensions as the administering Authority may from time to time determine. (4) Method of Operation- (a) A re-arrangement and/or composition may take the form of the Authority advancing money to pay off in whole or in part the creditors (whether or not the debts have been written down by the creditors under (b) below) excluding the Crown. There may be an arrangement by the secured or unsecured creditors to postpone repayments of principal and to refrain from taking action against the debtor for a specified time. Composition arrangements require the agreement in writing of creditors. (b) The possibility of creditors, including the Crown, local authorities and public utilities being asked to defer or write-off part of their debts-possibly at a uniform rate but with due regard to priority of security-should be considered. Creditors should not be pressed to the extent that the availability of credit to rural industries is damaged. (c) Additional funds advanced for carry- on expenses , livestock and further property development will be strictly limited to the minimum which the Authority considers is required to enable the farmer to carry on and free himself from dependence on the Authority' s assistance within the term of the advances made to him by the Authority. (d) In exceptional cases, advances for carry- on expenses and livestock may be made to a farmer who is not yet in immediate danger of losing property or other assets but who in the opinion of the Authority is likely to reach that position without such assistance , such cases being tested strictly against the remaining eligibility criteria. (e) The rate of interest payable on advances made by the Authority to pay off creditors and also advances made for carry-on expenses, livestock, plant and property development, will be decided by the Authority on the circumstances of the particular case . The Authority will have the right to review the interest rates on individual accounts at any time and should review the interest rates at regular intervals. The Authority will ensure that the average interest rate over all loans made will be not less than 4 per centum per annum. (f) Where protection orders - apply it is desirable to establish a relationship with creditors such that the Authority is acting in combined interests of applicant and creditors, secured and unsecured. (5) Limits-The Authority shall have discretion to determine:- (a) The terms and conditions of any loan it may make up to a maximum repayment term of 20 years. In a number of cases an initial period of freedom from repayments of principal would be justifiable depending on the circumstances of the case and the interest rate to be charged.

Farmers' Assistance Act AmendmentAct (No. 2) 1971, No. 80 1,039 (b) The proportion of debts paid off by advances in any one case. (c) The total of advances which may be made by the Authority in any one case. Part III-Farm Build-Up (1) Purpose-To supplement, without discouraging, the normal processes under which properties which are too small to be economic are amalgamated with an adjoining holding or are subdivided and the subdivided portions are added to adjoining holdings, orto assist a farmer with a property too small to be economic to purchase additional land to build up his property to at least economic size. (2) Tests of Eligibility- (a) The owner of the property to be purchased wishes to sell or accepts that he is obliged to sell. (b) The purchaser is unable to obtain the finance applied for from any other source. (c) The Authority is satisfied that the built-up property will be of sufficient size to offer sound prospects of long term commercial viability. (d) Where an application is made by an adjoining owner for assistance under the scheme to purchase an uneconomic property, but there is a possibility of sale of the property to another adjoining owner who does not require assistance under the scheme, assistance will be provided only if the applicant's property would be built-up from an uneconomic to an economic size. (e) The term " adjoining holding " includes a holding which is within a reasonable working distance of the holding under consideration where there is no impediment to the two holdings being worked as a single unit. (3) Nature of Assistance- (a) The provision to the purchaser of finance at an interest rate not less than 61 per centum per annum to. assist the purchase of an adjoining holding or part of an adjoining holding. (b) Grants at the discretion of the Authority to cover, in whole or in part, losses sustained in the disposal of assets included in the purchase price of the property, which are not useful for the built-up property. (c) Advances, at an interest rate not less than 61 per centum per annum, for carry-on expenses, plant, livestock, and property development in respect of the additional land where not available from other sources. (4) Method of Operation- (a) A property will not be purchased by the Authority at random, simply because it is uneconomic and the farmer intends to leave the industry; normally a property will be purchased only where arrangements have been made for an adjoining

1,040 Farmers' Assistance Act Amendment Act (No. 2) 1971, No. 80 owner to take over the property or for the property to be subdivided and the subdivided parts added to adjoining properties. (b) It would however be appropriate for the Authority to take the initiative to encourage an adjoining owner to purchase an uneconomic farm where the Authority is aware that the owner of the uneconomic farm wishes to leave the industry or accepts that he is obliged to leave the industry; this particularly applies where it is unlikely that the appropriate purchaser or purchasers will be able to purchase the additional land unless the Authority provides assistance for the purchase. (c) None of the foregoing would prevent the Authority from purchasing an uneconomic property in advance of arrangements having been made for the property to be added to an adjoining property or properties, where the programme of farm adjustment could not otherwise be achieved. (d) Since it is required that there must be reasonable prospects of successful operation of the built-up property, the Authority in considering the transfer price of land will have regard to its productivity value. (e) If the farmer is able to satisfy the conditions of eligibility under both schemes, a farmer assisted under the debt reconstruction scheme may also be assisted to acquire land to build up his farm to economic size. (f) Grants to cover losses on the write-off of redundant assets will be kept to a minimum. (g) Where advances are made for carry-on expenses , plant, livestock and property development, the advances will be strictly limited to the minimum which the Authority considers is required to enable the farmer to carry on and free himself from dependence on the Authority' s assistance within the term of the advances made to him by the Authority. (h) The rate of interest payable on advances made by the Authority under the farm build-up proposal will be set by the Authority, but will not be less than 6J per centum per annum. (i) While any advances by the Authority in respect of a built-up property remain unpaid, the transfer of part of the built-up property will not be permitted if this would result in a property of a size too small to be economic. (5) Limits- (a) The term of a loan by the Authority and conditions of repayment of principal will be at the discretion of the Authority up to a maximum repayment term of 20 years. In a number of cases an initial period of freedom from repayments of principal would be justifiable, depending on the circumstances of the case and the interest rate to be charged. (b) The total of advances which may be made up by the Authority in any one case shall also be at its discretion.

Farmers ' Assistance Act Amendment Act (No. 2) 1971, No. 80 1,041 Part ICI- Rehabilitation (1) Purpose - To provide limited assistance to those obliged to leave the industry where in the opinion of the Authority administering the scheme this is necessary to alleviate conditions of personal hardship. (2) Conditions of Eligibility- (a) The applicant ' s property must have been purchased by an adjoining owner who has been assisted under the farm build-up provisions to make the purchase or the applicant must have been unable to secure assistance under the debt reconstruction provisions because his property is assessed not to have sound prospects of long term commercial viability; and (b) Taking into account the financial position of the applicant after his property has been sold, he will suffer financial hardship which will be alleviated by assistance under these provisions. (3) Nature of Assistance -- A loan on such conditions as to interest rate, if any , and repayment as are determined by the Authority up to a maximum of $1,000 in any one case. (4) Method of Operation - The loans will be available at the discretion of the Authority administering the scheme.