Marginal Dairy Farms Reconstruction Scheme Agreement Ratification Act 1971 (NSW)

MARGINAL DAIRY FARMS RECONSTRUCTION

SCHEME AGREEMENT RATIFICATION ACT.

ANNO VICESIMO

ELIZABETHS II BEGINS

Act No. 72, 1971.

An Act to approve and ratify an Agreement between the Commonwealth and the State of New South Wales in relation to the Marginal Dairy Farms Reconstruction Scheme; to validate certain matters; and for purposes connected therewith. [Assented to, 21st December, 1971.]

D E it enacted by the Queen's Most Excellent Majesty, by

This Act may be cited as the "Marginal Dairy Farms Reconstruction Scheme Agreement Ratification Act, 1971".

and with the advice and consent of the Legislative
Council and Legislative Assembly of New South Wales in

Parliament assembled, and by the authority of the same, as

follows: —

1.

(1 ) In this Act, "the Agreement" means the Agree­ ment, a copy of which is set out in the Schedule to this Act.

2.

(2 ) For the purposes of this Act and the Agreement, the Authority is the State of New South Wales or an instrumentality designated by the Minister to be the Authority for the purposes of this Act and the Agreement.

(1) The Agreement is hereby approved, ratified and

confirmed and may be carried into effect notwithstanding the
provisions of any other Act.

3.

(2 ) All acts, matters and things for or with respect to which provision is made in the Agreement, or which by the Agreement are agreed, directed, authorised or permitted to be made, done or executed by or on behalf of the Minister or the Treasurer or the Auditor-General or the Authority are hereby sanctioned, authorised and confirmed.

4.      Any act, matter or thing—

(a)	which by the Agreement is agreed, directed, authorised or permitted to be made, done or executed;
(b)	which was made, done or executed before the commencement of this Act; and
(c) which would have been lawful if this Act had been in force at the time the act, matter or thing was

made, done or executed,

is hereby validated.

5. (1) Any expressions used in this section have the meanings ascribed to those expressions respectively by the Agreement.

(2)

(2) Any land acquired by Her Majesty, or by any Minister of the Crown, on behalf of the State of New South Wales as the Authority for the purposes of the Agreement before the commencement of this Act or before the appoint­ ment of an instrumentality to be the Authority, whichever is the later, shall, upon the commencement of this Act or upon the appointment of an instrumentality to be the Authority (which instrumentality is hereinafter in this section referred to as "the instrumentality"), whichever is the later, be divested from Her Majesty or that Minister, as the case may be, and shall vest in the instrumentality for all the estate or interest for which the land was so acquired by Her Majesty or that Minister, as the case may be, and subject to any existing tenancy granted for the purposes of the Agreement.

(3) Where any land vested in the instrumentality by virtue of subsection two of this section is disposed of by the instrumentality for the purposes of the Agreement, neither the Registrar-General, nor any other person registering title to the land, nor the person to whom the land is disposed of, nor any other person, shall be concerned to inquire whether or not the land was so vested in the instrumentality, provided the instrument evidencing the disposition is endorsed with or accompanied by a certificate executed by the instrumentality certifying that the land therein referred to had vested in the instrumentality by virtue of that subsection.

(4) Any land to be acquired for the purposes of the land referred to in subsection two of this section vests in the	Agreement by the Authority may be so acquired, and any
instrumentality by virtue of that subsection, notwithstanding—
(a)	that any consent or permission required under the Crown Lands Consolidation Act, 1913, the Closer Settlement Acts, or the Returned Soldiers Settle­ ment Act, 1916, has not been obtained or granted; or

(b)

(b) that the Authority may not be qualified under the Crown Lands Consolidation Act, 1913, the Closer Settlement Acts, or the Returned Soldiers Settle­ ment Act, 1916, to hold land of the tenure to be so acquired by the Authority or which so vests in the instrumentality.

(5) For the purposes only of this section—

(a) the provisions of the Crown Lands Consolidation

Act, 1913, the Closer Settlement Acts, and the Returned Soldiers Settlement Act, 1916, and any regulations under any of those Acts; and

(b) any condition attaching to any land in pursuance

of any of those provisions,

shall be deemed to be amended or varied so as to give full
force and effect to any of the provisions of this section.

(6) The Minister for the time being administering section fifteen of the Forestry Act, 1916, may apply to acquire, and may acquire, reconstruction land under the Agreement for the purpose of a State forest (within the meaning of that Act) or to provide access thereto, and any reconstruction land so acquired shall be dealt with as if it had been purchased in the manner referred to in that section.

SCHEDULE.

A N AGREEMENT made the first day of June One thousand nine hundred and seventy-one Between T H E COMMONWEALTH OF AUSTRALIA (in this agreement called "the Commonwealth") of the

one part and T H E STATE OF N E W SOUTH WALES (in this agreement

called "the State") of the other part.

WHEREAS—

(a) the Commonwealth and the State mutually recognize that

there is a serious low income problem within the dairy industry, particularly in the case of producers relying on the sale of milk or cream for manufacturing purposes;

(b)

(b)	the Commonwealth and the State are agreed that it is desir­ able to bring into existence a Marginal Dairy Farms Reconstruction Scheme whereby dairy farmers whose farms have insufficient potential to become viable economic units while based on the sale of milk or cream for manufacturing purposes may voluntarily dispose of their land and improve­ ments to the State at market value and, after allowing for redundant improvements, the State may dispose of the land and useful improvements on the basis of the most practicable and economic land use, with the object of building up other rural properties to economic levels permitting reasonable living standards or, where the land is not required for this purpose, for any other purpose;
(c)	the Commonwealth is prepared to provide financial assistance to the State for the implementation of a scheme as aforesaid and to any other State for the implementation of a like scheme in that State, up to a total sum in respect of all States of Twenty-five million dollars ($25,000,000);
(d)	the Parliament of the Commonwealth has provided by the Marginal Dairy Farms Agreements Act 1970 that the Com­ monwealth may make with any State an agreement pro­ viding for the making of payments by the Commonwealth to the State for the purposes of a marginal dairy farms reconstruction scheme to be operated by the State in accord­ ance with the agreement and that payments to a State by the Commonwealth under an agreement made in pursuance of the Act shall be by way of financial assistance to the State on the terms and conditions provided by the agreement;
(e)	the said Act sets out requirements with which a scheme provided for by an agreement made in pursuance of the Act is to comply and also specifies provisions that shall be included in an agreement:

Now IT Is HEREBY AGREED as follows:— I.—DEFINITIONS

1.  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 to land held by an applicant;

"applicant"

"applicant" means a person or persons applying to participate under the Scheme and includes a company, partnership, the Crown or a Crown instrumentality so applying;

"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 having due regard to the land use proposed and to technological development in the industry or industries concerned, has under average efficient manage­ ment the continuing capacity to produce on the average per annum to a level that is or is equivalent to twenty five (25) per cent or more above the maximum level of production of butterfat for the time being specified for a marginal dairy farm under clause 5 of this agreement;

"financial year" means a period of twelve months ending on the thirtieth day of June;

"holding" means the land offered by an applicant for acquisition by the Authority;

"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, such milk or cream being sold at a price pertaining to milk or cream to be used in the manufacture of butter, cheese or other products, and which rural property, if used only for dairying and purposes incidental to dairying, is not reasonably capable of produc­ ing to a level agreed between the Commonwealth and the State in accordance with clause 5 of this agreement;

"price" includes the consideration for the surrender of a leasehold

interest;

"reconstruction land" means land acquired by the Authority under the Scheme;

"structural improvements" includes houses, bails, sheds, fencing, stock yards and water supplies;

"the Act" means the Marginal Dairy Farms Agreements Act 1970 of the Commonwealth and includes any amendments that may from time to time be made to that Act;

"the Authority" means the State or the instrumentality designated

by the State to operate the Scheme on behalf of the State;
"the

"the Minister" means the Minister of State for Primary Industry of the Commonwealth and includes a Minister or member of the Federal Executive Council for the time being acting for that Minister;

"the Scheme" means the Marginal Dairy Farms Reconstruction Scheme to be operated by the State in accordance with the provisions of this agreement;
"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; and

"the Treasurer" means the Treasurer of the Commonwealth and includes a Minister or member of the Federal Executive Council for the time being acting for the Treasurer of the Commonwealth.

II.—OBJECTIVES

The State shall operate a Marginal Dairy Farms Reconstruction Scheme in accordance with the provisions of this agreement.

2.

3. The Commonwealth shall provide financial assistance to the State for the purposes of the Scheme upon the terms and conditions set out in this agreement.

4. The Scheme shall comply with the following requirements—

(a)	the Scheme shall, 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 the disposal; and

(b) the Scheme shall 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,

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 improve­ ments 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 so 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.

III.—OPERATION OF SCHEME

5. The level in respect of a marginal dairy farm agreed for the purpose of the definition thereof in clause 1 of this agreement shall be production by a rural property as so defined of, or of the equivalent of, an average per annum of thirteen thousand six hundred (13,600) pounds of butterfat, or such other level of production as may from time to time be agreed by the Minister and the State Minister.

6. Applicants wishing to dispose of holdings shall be eligible to participate in the Scheme provided that the holding offered by the applicant for acquisition by the Authority is a marginal dairy farm and—

(a) 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 may at any time be agreed by the Minister and the State Minister; or

(b) in a case where the Authority certifies that it is satisfied in the circumstances of the case, illness, disability or death is preventing or inhibiting the operation of a holding.

7.—(1.) The determination of whether a rural property is capable of producing to the level specified under clause 5 of this agreement shall be made by the Authority, considering the level of production that would result under average efficient management from the property in its existing state at the date of application.

(2.) The Authority shall not be under any obligation to acquire any particular holding.

8. Notwithstanding any other provision of this agreement, the Authority may, with the consent of the Minister and of the State Minister, acquire for the purpose of the Scheme land which is com­ prised in a rural property used wholly or partly for dairying and which, in the state of development at the time of acquisition by the Authority, is not a marginal dairy farm.

9.—(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.

10. Pending disposal reconstruction land may be utilised by the Authority as it deems fit, including short term lease.

11. 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 amalgama­ tion—

(i)   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

(ii)   in cases where the Authority considers that the appropriate use of the land is dairying, the applicant has owned the land referred to in the previous paragraph for a period of at least two years prior to the date of the application to par­ ticipate in the Scheme or such other period as may at any time be agreed by the Minister and the State Minister;

(b)

(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.

12. When disposing of reconstruction land the Authority will do so in accordance with the following—

(a)	the Authority shall have due regard to the objective of securing the most practicable and economic land use;
(b)	reconstruction land made available for amalgamation for use primarily for dairying will, when combined with the applicant's own land, constitute an economic unit;
(c)	the area of reconstruction land made available to an applicant who intends to continue in dairying shall be such that on amalgamation the combined area will not exceed twice the minimum area that is needed to form an economic unit or such other area as may at any time be agreed by the Minister and the State Minister.

13.—(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.

14.—(1.) Reconstruction land disposed of by the Authority 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 his delegate in that
behalf.

(4.)

(4.) Those structural improvements on reconstruction land which the Authority and the applicant agree as being useful will be sold to the applicant at values agreed with the Authority according to their usefulness to the applicant after amalgamation.

15.—(1.) Structural improvements on reconstruction land which are not purchased by an applicant as provided in sub-clause (4.) of clause 14 of this agreement 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.

16. 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. Subject to compliance by the State and the Authority with the provisions of this agreement the Commonwealth shall in accordance with and subject to the provisions of this agreement provide financial assistance to the State out of a total sum of Twenty-five million dollars ($25,000,000) available to all the States in respect of a period of four years commencing on the twenty-seventh day of July, 1970 consisting of amounts equal to the amounts expended by the Authority, before the expiration of the said period of four years, as the price of land (including structural improvements) acquired by the Authority under the Scheme.

18. Notwithstanding anything contained in this agreement, the

Commonwealth shall not be obliged to make payments of financial

payment would mean that payments by the Commonwealth under this	assistance to the State under this agreement if the making of the
agreement and under agreements with other States in respect of like schemes would exceed in total the said sum of Twenty-five million dollars ($25,000,000).
19. The Commonwealth shall, from time to time, at the request of the State and subject to the provisions of this agreement make pay­ ments to the State of the financial assistance provided for by clause 17 of this agreement.

20.—(1.) The State shall furnish to the Treasurer such documents and other evidence in support of each request 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 Common­ wealth has made a payment pursuant to the request by the State.

(2.) Any statement of expenditure by the State furnished to the Treasurer in connexion with a request for payment in accordance with sub-clause (1.) of this clause shall be certified by the Auditor- General of the State as to its correctness in accordance with the books and documents of the Authority.

21.—(1.) The Treasurer may, at such times and in such amounts as he thinks fit, make advances on account of an amount that may become payable to the State under clause 19 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 amounts to be paid subsequently under clause 19 of this agreement, or if there are no further amounts to be paid under that clause, shall be refunded by the State to the Treasurer at his request.

22. The State shall ensure that an amount, or any part of an amount, paid or advanced to the State under clause 19 or under clause 21 of this agreement is not used or applied except for the operation of the Scheme.

23. Interest at the rate of six per centum per annum shall accrue in respect of so much of each amount that has been paid or advanced to the State under this agreement as is repayable by the State under clause 24 of this agreement and has not for the time being been repaid or refunded to the Commonwealth, calculated from the date upon which the payment or advance was made by the Commonwealth.

24.—(1.) Subject to the provisions of this clause, the State shall repay to the Commonwealth one half of each of the payments made to the State under clause 19 of this agreement and of the advances made to the State and not refunded under clause 21 of this agree­ ment, together with the interest referred to in the last preceding clause, by forty-six (46) equal consecutive half yearly payments, the first 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 Commonwealth to the State and subsequent pay­ ments 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. (2.)

(2.) In addition to making payments in accordance with sub­ clause (1.) of this clause, the 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 sub-clause (1.) of this clause.

(3.) Interest at the rate of six per centum per annum shall accrue on amounts paid by the State in accordance with sub-clause (2.) 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.

(4.) When on any fifteenth day of January or fifteenth day of July the payment due by the State under sub-clause (1.) of this clause exceeds the amount by which the unrepaid balance of the total amount repayable under that sub-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 sub-clause (2.) of this clause together with interest accrued on those amounts up to and including that date under sub­ clause (3.) of this clause, the State shall pay to the Commonwealth the amount of the second mentioned excess in lieu of the amount of the payment due under sub-clause (1.) of this clause, and no further payments shall be required to be made by the State to the Commonwealth under this clause.

25.—(1.) The State agrees to operate the Scheme in such a way that, taking into account its experience with other schemes of this general nature and the normal expectations as to factors that affect farmers' incomes that are current at the date of this agreement, the amounts recovered from the disposal of assets could be reasonably expected to equal the State's costs of administration and payment of

interest and principal to the Commonwealth.

(2.) Should the State certify that, after allowing for its costs of administration, it has incurred losses under the Scheme from circum­ stances beyond its control arising after the date of this agreement and disadvantageous compared with past experience and normal expecta­ tions as to factors that affect farmers' incomes referred to in sub-clause (1.) of this clause, the Commonwealth agrees to review the position with the State with a view to adjusting amounts payable to the Com­ monwealth by the State under this Part of this Agreement to the extent of such losses.

26. The 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 succeeding 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.

27.—(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 under this agreement has been provided by the Commonwealth and supporting evidence to the satis­ faction of the Treasurer in relation to all amounts paid is 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, indicating whether the expenditure of moneys is in accordance with this agree­ ment 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.

28. 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

29. The State shall provide for and secure the performance by it and its instrumentalities of the obligations of the State under this agreement.

30. The State shall report to the Commonwealth 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.

31. The Commonwealth or the State when requested by the other shall arrange for consultations between officers of the Commonwealth and the State on any matters in connexion with the Scheme.

In

IN WITNESS WHEREOF this agreement had been executed on behalf of the parties as at the day and year first above written.

SIGNED on behalf of THE COM­

MONWEALTH OF AUSTRALIA \
by the Right Honourable WIL- /

LIAM McMAHON, the Prime \	WILLIAM McMAHON.
Minister of the Commonwealth, in I the presence of— I

I. GRIGG. '

SIGNED on behalf of THE \

STATE	OF	NEW	SOUTH 1
WALES	by	the	Honourable I

ROBIN WILLIAM ASKIN, the \	R. W. ASKIN.
Premier of the State, in the I
presence of—	|

G. M. GRAY. /

G O V E R N M E N T