Cotton Bounty Act 1926

Legislation au C1926A00051 Not in force Act

Legislation content

COTTON BOUNTY.

 

No. 51 of 1926.

An Act to provide for the Payment of a Bounty on the Production of Seed Cotton and Cotton Yarn.

[Assented to 23rd August, 1926.]

Preamble.

BE it enacted by the Kings Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—

Short title.

1. This Act may be cited as the Cotton Bounty Act 1926.

Definition.

2. In this Act, unless the contrary intention appears—

appointed place means a place appointed by the Minister, by writing under his hand, to be a place where seed cotton may be weighed, examined and graded for the purposes of this Act.

Appropriation.

3. There shall be payable out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, the sum of Nine hundred thousand pounds during the period of five years commencing on the sixteenth day of August One thousand nine hundred and twenty-six for the payment of bounties in accordance with this Act.

Specification of bounties.

4.—(1.) The bounties under this Act shall be payable in respect of—

(a) seed cotton which—

(i) has been grown in Australia;

(ii) has been delivered to an appointed place; and

(iii) is graded in one of the grades prescribed under section six of this Act;

and

(b) cotton yarn manufactured in Australia and delivered from a factory,

on or after the sixteenth day of August One thousand nine hundred and twenty-six and on or before the fifteenth day of August One thousand nine hundred and thirty-one.

(2.) No bounty shall be authorized to be paid in respect of seed cotton to any person other than the grower of the seed cotton, nor unless the grower furnishes proof to the satisfaction of the Minister that the requirements of this Act and the Regulations have been complied with.


(3.) No bounty shall be paid in respect of cotton yarn to any person other than the manufacturer of the cotton yarn, nor unless the manufacturer furnishes proof to the satisfaction of the Minister that the requirements of this Act and the Regulations have been complied with.

(4.) Notwithstanding anything contained in the foregoing provisions of this section, if at any time any deferred Customs duty on cotton yarn is brought into operation, no bounty shall be paid on any cotton yarn delivered from a factory on or after the date on which the deferred duty comes into operation.

Limit of total amount of bounties.

5.—(1.) The total amount of bounty authorized to be paid under this Act in any one financial year shall not exceed—

(a) in respect of seed cotton—the sum of One hundred and twenty thousand pounds; and

(b) in respect of cotton yarn—the sum of Sixty thousand pounds.

(2.) When the maximum amount of bounty which may be paid in any year in respect of seed cotton or cotton yarn, as the case may be, has not been paid in that year, the unpaid balance, or any part thereof, may be paid in any subsequent year in respect of seed cotton or cotton yarn, as the case may be, in addition to the maximum amount for that year.

Rates of bounty.

6.—(1.) The rate of bounty payable under this Act on seed cotton delivered to an appointed place shall be—

(a) in respect of seed cotton of such higher grades as are prescribed—One penny half-penny per pound; and

(b) in respect of seed cotton of such lower grades as are prescribed—Three farthings per pound.

(2.) The rates of bounty payable under this Act on cotton yarn shall be the rates set out in the Schedule to this Act.

Grading of seed cotton.

7. All seed cotton delivered to an appointed place shall be graded in the prescribed manner.

Export of cotton seed.

8. Cotton seed obtained from seed cotton delivered to an appointed place shall not be exported from Australia except with the consent in writing of the Minister,

Penalty: One hundred pounds.

Restrictions on payment of bounty on cotton yarn.

9. No bounty shall be paid on any cotton yarn unless—

(a) it is of good and merchantable quality; and

(b) at least fifty per centum of the cotton used in its manufacture was grown in Australia:

Provided that if the Minister is satisfied that circumstances have arisen in which it would be unreasonable to require the use of fifty per centum of Australian-grown cotton, he may authorize the use of such lower proportion of Australian-grown cotton as is, in his opinion, reasonable, and cotton yarn in the manufacture of which such lower


proportion has been used shall not thereby be excluded from the payment of bounty under this Act:

Provided further that whenever the Minister authorizes the use of a lower proportion than fifty per centum of Australian-grown cotton, he shall, within thirty days from the date of the authority, cause a statement of the reasons therefor to be laid before both Houses of the Parliament, if the Parliament is then sitting, or, if the Parliament is not then sitting, within thirty days after the next meeting of the Parliament, and if either House of the Parliament passes a resolution, of which notice has been given at any time within fifteen sitting days after the statement has been laid before such House, disallowing the authority, it shall thereupon cease to have effect.

Conditions of employment and rates of wages.

10.—(1.) The Minister may make application to the Chief Judge or a Judge of the Commonwealth Court of Conciliation and Arbitration for a declaration as to what wages and conditions of employment are fair and reasonable for labour employed in the manufacture of cotton yarn.

(2.) On the hearing and determination of the application, the Chief Judge or Judge, as the case may be, shall have all the powers which under the Excise Procedure Act 1907 are conferred on the President of the Commonwealth Court of Conciliation and Arbitration, and all witnesses and persons summoned to appear or appearing before him shall be entitled to the same privileges and protection, and be subject to the same liabilities and penalties, as witnesses or persons summoned to appear or appearing before the President on an application within the meaning of that Act, and the provisions of that Act shall, so far as they are applicable, apply accordingly, mutatis mutandis, as if the application were an application within the meaning of that Act.

(3.) For the purposes of this section, any reference in the Excise Procedure Act 1907 to the President of the Commonwealth Court of Conciliation and Arbitration shall be read as a reference to the Chief Judge or a Judge of that Court.

(4.) Every person who claims the bounty payable on cotton yarn under this Act shall, in making his claim, certify to the Minister the conditions of employment and the rates of wages paid to any labour employed by him.

(5.) If the Minister finds that the rates of wages and conditions of employment or any of them—

(a) are below the rates and conditions declared, as in the first sub-section of this section mentioned, to be fair and reasonable; or

(b) are below the standard rates and conditions of employment prescribed by the Commonwealth Court of Conciliation and Arbitration, or the determination of any State industrial authority,

the Minister may withhold the whole or any part of the bounty payable.


Audit of accounts, &c.

11. The accounts, books and documents of any person, firm or company claiming bounty under this Act shall be subject to examination and audit by an auditor appointed or authorized by the Minister.

Offences against Act.

12. No person shall—

(a) obtain any bounty which is not payable;

(b) obtain payment of any bounty by means of any false or misleading statement; or

(c) present to any officer or other person doing duty in relation to this Act or the Regulations any document, or make to any such officer or person any statement, which is false in any particular.

Penalty: One hundred pounds or imprisonment for twelve months.

Return to be laid before Parliament.

13.(1.) A return shall be prepared in the month of July in each year, and shall be laid before both Houses of the Parliament within thirty days after its preparation if the Parliament is then sitting, and, if not, then within thirty days after the next meeting thereof.

(2.) The return shall set forth—

(a) in respect of bounty paid on seed cotton—

(i) the number of persons to whom the bounty was paid under this Act during the preceding financial year; and

(ii) the total amount of bounty paid during the preceding financial year,

and

(b) in respect of cotton yarn—

(i) the names of all persons to whom bounty was paid under this Act during the preceding financial year; and

(ii) the amounts of all such bounty,

and shall contain such other information as is prescribed.

Regulations.

14. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act, and in particular—

(a) for prescribing the. minimum quantity of seed cotton to be delivered to an appointed place to entitle the grower to claim the bounty;

(b) for prescribing the minimum quantity of cotton yarn to be manufactured to entitle the manufacturer to claim the bounty;

(c) for prescribing the proportion in which bounty shall be payable to claimants who have complied with the prescribed conditions, in cases where there is not sufficient money available to pay the full bounty in respect of all the claims; and

(d) for prescribing penalties not exceeding Fifty pounds for any breach of the Regulations.


THE SCHEDULE.

RATE OF BOUNTY PAYABLE ON COTTON YARN.

Count.

Rate of Bounty per Pound.

 

pence

Count No. 1

No. 2

No. 3

1

No. 4

No. 5

No. 6

2

No. 7

No. 8

No. 9

3

No. 10

No. 11

No. 12

4

No. 13

No. 14

No. 15

5

No. 16

No. 17

No. 18

6

No. 19

No. 20

No. 21

7

No. 22

No. 23

No. 24

8

No. 25

No. 26

No. 27

9

No. 28

No. 29

No. 30

10

No. 31 and up to and including No. 35

No. 36 and up to and including No. 40

11

No. 41 or any higher count

12

Count No. 1 means a single yarn one pound of which measures 840 yards and any count higher than Count No. 1 means a single yarn one pound of which measures the number of yards obtained by multiplying 840 yards by the number of the count.

 

Overview

The Cotton Bounty Act 1926 was enacted by the Commonwealth Parliament to provide financial incentives for the production of seed cotton and cotton yarn within Australia. This Act was designed to bolster the cotton industry by offering bounties to growers and manufacturers, thereby encouraging the cultivation and manufacturing of cotton within the country. The primary objective of this legislation was to ensure a steady supply of locally produced cotton, which would reduce dependency on imported cotton and support the domestic cotton industry. The Act specifies the criteria for bounty eligibility, including quality and origin requirements, and imposes penalties for fraudulent claims, thereby safeguarding the integrity of the bounty system. Under this Act, bounties are payable to the growers of seed cotton and the manufacturers of cotton yarn, provided that they meet the specified standards and conditions. The bounties are subject to a maximum annual limit, and any unutilised amounts can be carried over to the following year. Additionally, the Act mandates that cotton seed cannot be exported without the Minister's consent, further regulating the industry. The Act also provides mechanisms for auditing claims and establishing fair wages and conditions for workers in the cotton manufacturing sector.

Scope and Application

The Cotton Bounty Act 1926 applies to the payment of bounties on the production of seed cotton and cotton yarn within Australia. Specifically, the Act applies to growers of seed cotton and manufacturers of cotton yarn, provided that they meet the criteria outlined in the Act and its accompanying regulations. The geographic scope of the Act is national, operating within the Commonwealth of Australia. The Act sets out various conditions, such as the quality and quantity of seed cotton and cotton yarn that must be delivered to an appointed place for bounty eligibility, and stipulates that certain thresholds and conditions must be met to qualify for the bounty payment. The Act also allows for the establishment of regulations that may further define the scope of its application, including specific details about the quantities of cotton to be delivered and the manner in which bounties are to be calculated and paid. There are no stated exclusions or exemptions within the Act itself, although the Minister has the discretion to withhold bounties if certain conditions, such as the quality of the cotton yarn or the conditions of employment, are not met. The Act further stipulates that bounties will only be paid if certain conditions are satisfied, such as the seed cotton being grown in Australia and the cotton yarn being of good and merchantable quality, with at least 50% of the cotton used being Australian-grown, unless the Minister determines otherwise. Additionally, the Act provides for the Minister to make applications to the Commonwealth Court of Conciliation and Arbitration to determine fair and reasonable wages and conditions of employment for workers in the cotton yarn manufacturing industry. Failure to comply with the provisions of the Act or its regulations may result in penalties, including fines and imprisonment.

Key Provisions

The Cotton Bounty Act 1926 (referred to as the "Act") establishes a framework for the payment of bounties on the production of seed cotton and cotton yarn in Australia. Under section 4, the bounties are payable in respect of seed cotton that has been grown in Australia, delivered to an appointed place, and graded according to the prescribed grades, as well as cotton yarn manufactured in Australia and delivered from a factory. The bounty is payable to the grower of the seed cotton or the manufacturer of the cotton yarn, provided they furnish proof to the Minister that they have complied with the requirements of the Act and the Regulations. The Act also specifies the limit of the total amount of bounty that can be paid in any one financial year, which is One hundred and twenty thousand pounds for seed cotton and Sixty thousand pounds for cotton yarn (section 5). The rates of bounty for seed cotton are One penny half-penny per pound for higher grades and Three farthings per pound for lower grades (section 6). The Act imposes certain obligations on the parties it governs. For example, under section 7, all seed cotton delivered to an appointed place must be graded in the prescribed manner. Additionally, under section 8, the export of cotton seed obtained from seed cotton delivered to an appointed place is not allowed without the Minister's written consent. Failure to comply with these obligations may result in civil or criminal consequences. Under section 12, any person who obtains a bounty that is not payable, obtains payment of any bounty by means of any false or misleading statement, or presents a false document or makes a false statement to an officer or other person doing duty in relation to the Act or the Regulations, commits an offence. The penalty for such an offence is a fine of One hundred pounds or imprisonment for twelve months (section 12). Furthermore, under section 11, the accounts, books, and documents of any person, firm, or company claiming bounty under the Act are subject to examination and audit by an auditor appointed or authorized by the Minister.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.