Dairy Produce Amendment Act 1993

Legislation au C2004A04571 Not in force Act

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Dairy Produce Amendment Act 1993

No. 16 of 1993

An Act to amend the Dairy Produce Act 1986

[Assented to 9 June 1993]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Dairy Produce Amendment Act 1993.

(2) In this Act, “Principal Act” means the Dairy Produce Act 19861.

Commencement

2. This Act commences on the day on which it receives the Royal Assent.

Interpretation

3. Section 3 of the Principal Act is amended by omitting from subsection (1) the definition of “approved bank” and substituting the following definition:

“ ‘approved bank’ means the Reserve Bank of Australia, a bank as defined in subsection 5(1) of the Banking Act 1959 or a bank constituted by a law of a State;”.

Proper accounts to be kept

4. Section 72 of the Principal Act is amended by adding at the end the following subsection:

“(2) Whether or not the Corporation chooses under section 73 to maintain a separate bank account in respect of each relevant fund, the Corporation must ensure that it keeps separate records of all of its financial dealings relating to each such fund.”.

Application of money of Corporation

5. Section 74 of the Principal Act is amended by omitting paragraph (2)(a) and substituting the following paragraph:

“(a) may be invested:

(i) in interest-bearing deposits with an approved bank; or

(ii) in any securities of, or guaranteed by, the Commonwealth or a State; or

(iii) in bills of exchange accepted by an approved bank; or

(iv) in promissory notes or certificates of deposit issued by an approved bank; or

(v) in any other way approved by the Treasurer; or”.

6. Section 79 of the Principal Act is repealed and the following section is substituted:

Hedging through currency contracts etc.

“79.(1) In this section:

‘currency contract’ means:

(a)     a forward exchange rate contract; or

(b)     a contract with respect to currency futures;

‘futures contract’ means:

(a)     a deferred delivery contract; or

(b)     a contract with respect to financial futures; or

(c)     a contract with respect to commodity futures.

“(2) This section applies to the following contracts:

(a)     currency contracts;

(b)     interest rate contracts;

(c)     futures contracts;

(d) contracts relating to:

(i) dealings known as currency swaps; or

(ii) dealings known as interest rate swaps; or

(iii) dealings known as commodity swaps;

(e)     contracts relating to 2 or more of the dealings referred to in paragraph (d);

(f)      options (including futures options);

(g)     contracts of a kind approved by the Minister in writing.

“(3) Subject to subsection (6), the Corporation may enter into and deal with contracts to which this section applies for hedging purposes in relation to:

(a)     a borrowing or raising, or a proposed borrowing or raising, of money by the Corporation; or

(b)     an investment of money by the Corporation; or

(c)     a purchase or sale, or a proposed purchase or sale, of dairy produce; or

(d)     the making by the Corporation of a payment outside Australia in relation to the promotion of the use of dairy produce; or

(e)     a transaction in foreign currency.

“(4) The Minister may, by written determination, set guidelines for the exercise by the Corporation of its powers under subsection (3) and must give the Corporation a copy of each determination made.

“(5) Without limiting subsection (4), the guidelines may provide that:

(a)     the Corporation is not to enter into or deal with contracts of a particular kind; or

(b)     the Corporation is to enter into or deal with contracts of a particular kind only if the contract relates to specified matters.

“(6) The Corporation must not enter into or deal with a contract to which this section applies contrary to any guidelines in force under subsection (4).

“(7) A contract is taken to be entered into or dealt with for hedging purposes only if the contract is entered into or dealt with for the purpose of:

(a) managing the risk of variations in:

(i) the costs of a borrowing or raising, or a proposed borrowing or raising, of money by the Corporation; or

(ii) the revenue obtainable by the Corporation from the investment of money by the Corporation; or

(iii) the amount payable to the Corporation for any dairy produce sold, or proposed to be sold, by it; or

(iv) the amount payable by the Corporation for any dairy produce bought, or proposed to be bought, by it; or

(v) the amount of any payment referred to in paragraph (3)(d); or

(vi) a payment to or by the Corporation in relation to a transaction in foreign currency; or

(b) maintaining the value of investments made by the Corporation.”.

Repeal of section

7. Section 84 of the Principal Act is repealed.

Investment of money standing to credit of a relevant fund

8. Section 85 of the Principal Act is amended by omitting paragraph (a) and substituting the following paragraph:

“(a) may be invested:

(i) in interest-bearing deposits with an approved bank; or

(ii) in any securities of, or guaranteed by, the Commonwealth or a State; or

(iii) in bills of exchange accepted by an approved bank; or

(iv) in promissory notes or certificates of deposit issued by an approved bank; or

(v) in any other way approved by the Treasurer; or”.

Minor amendments

9. The Principal Act is further amended as set out in the Schedule.

SCHEDULE Section 9

MINOR AMENDMENTS

Subsection 3(1) (definition of “relevant fund”):

Omit “, the Supplementary Fund”.

Subsection 3(1) (definition of “Supplementary Fund”):

Omit the definition.

Subsection 3(1) (definition of “supplementary market support payment”):

Omit the definition.

Paragraph 17(l)(f):

Omit the paragraph.

Paragraphs 93(2)(a) to (g):

Add at the end “and”.

Paragraph 93(2)(h):

Omit “; and”.

Paragraph 93(2)(j):

Omit the paragraph.

Paragraphs 101(a) to (g):

Add at the end “and”.

Paragraph 101(c):

Omit “and the Supplementary Fund”.

Paragraph 101(h):

Omit the paragraph.

Subsection 112(2):

Omit “either a market support payment or a supplementary market support payment”, substitute “a market support payment”.

SCHEDULE—continued

Paragraph 119(2)(b):

Omit “or a supplementary market support payment”.

NOTE

1. No. 54, 1986, as amended. For previous amendments, see No. 168, 1986; Nos. 162 and 141, 1987; Nos. 51, 111 and 114, 1988; Nos. 129 and 130, 1989; Nos. 15 and 17, 1990; Nos. 26 and 39, 1991; and No. 67, 1992.

[Minister’s second reading speech made in—

House of Representatives on 5 May 1993

Senate on 12 May 1993]

Overview

The Dairy Produce Amendment Act 1993 was enacted by the Parliament of Australia to address certain issues and gaps in the existing Dairy Produce Act 1986. This amendment act introduces several changes to enhance the regulatory framework for the dairy industry. One of the primary objectives is to ensure that the Dairy Produce Corporation keeps proper accounts and maintains separate records for its financial dealings relating to each relevant fund. Additionally, the Act expands the definition of "approved bank" to include the Reserve Bank of Australia, banks defined under the Banking Act 1959, and banks constituted by state laws. Furthermore, it allows the Corporation to engage in various financial activities, including investments and hedging, subject to certain conditions and guidelines set by the Minister. The policy objective is to provide clarity and flexibility in financial operations while ensuring compliance with regulatory standards.

Scope and Application

The Dairy Produce Amendment Act 1993 amends the Dairy Produce Act 1986, thereby affecting the operations and financial practices of the Dairy Corporation, a statutory body responsible for managing the dairy industry in Australia. The Act applies to the Dairy Corporation and its financial dealings, particularly those involving the investment of funds and the maintenance of separate financial records for different funds. It also affects approved banks, which are defined as the Reserve Bank of Australia, a bank under the Banking Act 1959, or a state-constituted bank. The Act allows the Dairy Corporation to enter into various financial contracts, including currency, interest rate, and futures contracts, to hedge against financial risks associated with borrowing, investment, and transactions in dairy produce. Additionally, the Act allows the Minister to set guidelines for the Corporation's use of these financial instruments, ensuring they are used appropriately for hedging purposes. The Act's amendments focus on clarifying financial practices, enhancing record-keeping requirements, and updating definitions to ensure the Dairy Corporation's operations are efficient and transparent.

Key Provisions

The Dairy Produce Amendment Act 1993 (No. 16 of 1993) amends the Dairy Produce Act 1986. It introduces several changes to the original Act, primarily concerning financial dealings and investment options for the relevant funds managed by the Corporation. Section 3 of the Act redefines the term "approved bank" to include the Reserve Bank of Australia, banks defined in the Banking Act 1959, and banks established by state law. Section 4 mandates that the Corporation must keep separate records of all financial transactions related to each fund, regardless of whether it maintains separate bank accounts for these funds. Under Section 5, the Corporation is allowed to invest funds in various financial instruments, including interest-bearing deposits, securities guaranteed by the Commonwealth or a State, bills of exchange, promissory notes, certificates of deposit issued by approved banks, and any other methods approved by the Treasurer. Section 6 introduces new provisions for hedging through currency and interest rate contracts, options, and other derivatives approved by the Minister, ensuring these contracts are used for managing financial risks. The Act also provides for the Minister to issue guidelines for the Corporation's use of these financial instruments, which must be adhered to strictly. The Dairy Produce Amendment Act 1993 imposes several obligations on the Corporation. It mandates that the Corporation must maintain accurate and separate records of financial dealings for each relevant fund, as stipulated in Section 4. Moreover, the Corporation must comply with the guidelines set by the Minister concerning the use of financial instruments for hedging purposes, as detailed in Section 6. Failure to comply with these guidelines can lead to legal consequences. The Act also stipulates that investments must be made in approved financial instruments and methods as outlined in Sections 5 and 8. Section 6 of the Act outlines potential penalties and consequences for breaches. The Corporation must not enter into or deal with contracts contrary to any guidelines issued by the Minister. Any violation of these guidelines may result in civil or criminal penalties, although the specific penalties are not detailed in the Act. The Act implies that non-compliance could lead to enforcement actions by relevant authorities, impacting the Corporation's operations and financial standing.

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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.