ASIAN DEVELOPMENT FUND ACT 1974
No. 54 of 1974
An Act to Authorize certain Contributions by Australia to the Asian Development Bank for the purposes of an Asian Development Fund.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows: —
Short title.
1. This Act may be cited as the Asian Development Fund Act 1974.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Interpretation.
3. (1) In this Act, unless the contrary intention appears, “the Bank” means the Asian Development Bank.
(2) For the purposes of this Act, the prescribed equivalent in Australian currency of an amount of United States dollars shall be ascertained by reference to the rate of exchange between the Australian dollar and the United States dollar that was in use by the Bank on 20 November 1973.
Contributions to Asian Development Fund.
4. (1) The Treasurer may, on behalf of Australia, notify the Bank of the intention of Australia to contribute to the Bank, for the purposes of the Asian Development Fund established, or to be established, by the Bank, amounts in Australian currency not exceeding in the aggregate the prescribed equivalent in Australian currency of 27,000,000 United States dollars.
(2) The Treasurer shall not, under sub-section (1), notify proposed contributions by Australia that will require payments of amounts in Australian currency exceeding in the aggregate the prescribed equivalent in Australian currency of 18,000,000 United States dollars to be made before 30 June 1975.
Issue of Promissory notes.
5. (1) For the purposes of the payment of a contribution notified by the Treasurer under section 4, the Treasurer may, on behalf of Australia, execute and issue to the Bank promissory notes.
(2) A promissory note issued under sub-section (1)—
(a) shall be payable to the Bank;
(b) shall be non-negotiable and non-interest-bearing; and
(c) shall be payable at its par value on demand.
Appropriation
6. There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, the moneys necessary for the purpose of making any payment that is to be made by Australia—
(a) in pursuance of a notification under section 4; or
(b) under a promissory note issued under section 5.
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Overview
The Asian Development Fund Act 1974 was enacted by the Parliament of Australia to facilitate Australia's contributions to the Asian Development Fund established by the Asian Development Bank. This Act provides the legal framework for the Treasurer to notify the Bank of Australia's intention to contribute specific amounts to the Fund, up to a maximum of 27,000,000 United States dollars, and to issue promissory notes for these contributions. The policy objective is to enable Australia to participate in the Asian Development Fund, supporting economic development and regional cooperation within Asia. The Act specifies the process for determining the Australian dollar equivalent of the contributions and authorises payments from the Consolidated Revenue Fund for these contributions.
The Act was introduced to address the need for a formal mechanism by which Australia could participate in and support the Asian Development Fund, an initiative aimed at promoting economic development and infrastructure projects across Asian countries. By enacting this legislation, the Australian Parliament aimed to provide a clear and structured approach for the nation's financial support to the Bank's Fund, ensuring compliance with international financial commitments and facilitating timely and efficient contributions.
Scope and Application
The Asian Development Fund Act 1974 authorises the Australian Treasurer to contribute to the Asian Development Fund established by the Asian Development Bank (ADB). The Act applies to the Australian government, specifically the Treasurer, who is tasked with making financial contributions to the Fund, up to a prescribed limit. The Act does not extend to private entities, individuals, or specific industries, focusing solely on the government's role in contributing to the ADB's fund. The geographical reach of the Act is international, as it pertains to contributions to an entity established by an international bank, the ADB, which operates across various Asian countries. The Act does not specify any exclusions, exemptions, or thresholds beyond the financial limits set for contributions. Any further details or adjustments to these limits or the application of the Act may be defined through subordinate instruments issued by the Australian government.
Key Provisions
The Asian Development Fund Act 1974 primarily authorises Australia to contribute to the Asian Development Fund established by the Asian Development Bank (s 4). The Treasurer is empowered to notify the Bank of Australia’s intention to contribute up to the equivalent of 27,000,000 United States dollars in Australian currency, subject to a limitation that no more than 18,000,000 United States dollars’ worth of contributions can be made before 30 June 1975 (s 4(1)-(2)). This notification process allows Australia to specify its financial commitment to the Fund. Furthermore, section 5 allows the Treasurer to issue promissory notes to the Bank for the payment of these contributions. These notes are non-negotiable, non-interest-bearing, and payable at their par value on demand.
The Act imposes several obligations on the Treasurer. The most significant is the requirement to notify the Bank of Australia’s contributions within the specified financial limits (s 4). Additionally, the Treasurer must ensure that the necessary funds are available from the Consolidated Revenue Fund for these payments, which are appropriated accordingly (s 6). This ensures that the financial obligations under the Act are met in a timely and lawful manner. The issuance of promissory notes (s 5) further formalises the payment process, ensuring clarity and formality in the financial transaction with the Bank.
Failure to comply with the provisions of the Act can lead to civil or criminal consequences, although the Act itself does not explicitly detail these. Given that the Act is a legislative instrument, breaches may attract penalties under broader administrative or financial laws, including potential fines or legal actions for non-compliance with financial obligations or misrepresentation. The precise nature and extent of these penalties would depend on the specific circumstances and relevant laws in place at the time of any alleged breach.