Wheat Marketing Legislation Amendment Act 1998

Overview

The Wheat Marketing Legislation Amendment Act 1998 (No. 103) was enacted to amend the existing legislation concerning wheat marketing, thereby addressing issues and gaps within the current framework. The Act was passed by the Parliament of Australia and received Royal Assent on 30 July 1998. Its primary objective is to make comprehensive changes to the Wheat Marketing Act 1989, including the establishment of the Wheat Export Authority to replace the Australian Wheat Board, which will now focus solely on its export functions. The Act also addresses the transfer of assets from the Wheat Industry Fund to nominated companies, the amendment of the constitutions of these companies, and the cessation of certain mobility rights for employees transitioning from the Australian Wheat Board to the new Wheat Export Authority.

Scope and Application

The Wheat Marketing Legislation Amendment Act 1998 No. 103 amends the Wheat Marketing Act 1989 and other related legislation to facilitate the restructuring and transfer of assets and functions of the Australian Wheat Board to the Wheat Export Authority and nominated companies. The Act applies to the Australian Wheat Board, the Wheat Export Authority, nominated companies A, B, and C, and other entities involved in wheat marketing. It covers the cancellation of existing shares in nominated company A, the issuance of new shares, and the transfer of assets such as the Wheat Industry Fund's assets to nominated company A. The Act also addresses the cessation of certain mobility rights for employees of the nominated companies and regulates the borrowing and financial operations of nominated company A post-transfer. The amendments commence on 1 July 1999, with specific provisions taking effect on that date. The Act allows for the making of regulations to address transitional and saving matters arising from these amendments, including the operation of other Acts such as the Privacy Act 1988 and the Freedom of Information Act 1982, and the rights and taxation liabilities of relevant entities.

Key Provisions

• The Wheat Marketing Legislation Amendment Act 1998 (No. 103) introduces significant changes to the Wheat Marketing Act 1989, as well as amending the Wheat Marketing Amendment Act 1997. The Act sets out provisions for the amendment of constitutions of nominated companies, the cancellation of old shares, the issue of B Class shares, and the payment of final levy payments to nominated company A. It also addresses the continuation of Commonwealth underwriting of borrowings and the cessation of mobility rights. The Act is structured into sections, each serving specific purposes in the legislative amendments. Section 5 mandates that the Minister must amend the constitutions of the nominated companies by 31 March 1999, and this determination cannot be revoked or amended after the transfer time, which is the beginning of 1 July 1999. Section 6 provides for the automatic cancellation of all shares in nominated company A immediately before the transfer time, without the need for notice to creditors or court confirmation. Section 7 stipulates that at the transfer time, B Class shares in nominated company A are to be issued to the holders of Fund units, extinguishing those units, and those individuals automatically become members of the company. Section 8 ensures that any amounts payable to the Australian Wheat Board under section 86 of the Wheat Marketing Act 1989 after the transfer time but before a specified cutoff time are instead payable to nominated company A, with the Consolidated Revenue Fund appropriated for such payments.
• The Act imposes several obligations on the parties it governs. The Minister is required to make written determinations regarding the amendment of company constitutions and the amount of money the Board must retain by 1 July 1999. Nominated company A must ensure compliance with the new share issuance and asset transfer provisions. The Wheat Export Authority, formerly the Australian Wheat Board, must adhere to the new operational and financial regulations, including the preparation of operational plans and the reporting of activities to the Grains Council. Additionally, nominated company B is subject to specific obligations, such as the purchase of all offered wheat that meets its standards and the payment of fees for export consents.
• Breaching the provisions of this Act can lead to various civil and criminal consequences. While the Act does not explicitly list offences and penalties, violations of the financial and operational mandates could potentially result in legal actions under other relevant legislation, such as the Corporations Law or the Commonwealth Authorities and Companies Act 1997. Non-compliance with the specified timelines and conditions could also lead to financial liabilities or operational disruptions for the involved companies and the Wheat Export Authority. The cessation of mobility rights for employees of nominated companies, as outlined in section 10, ensures that certain public service laws no longer apply to these employees post-transfer time, which could have further legal implications if not properly managed.

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