EXPLANATORY STATEMENT
STATUTORY RULES 1982 No.193
Issued by the Authority of the Minister for Primary Industry
DAIRY PRODUCE REGULATIONS (AMENDMENT)
Section 30 of the Dairy Produce Act 1924 (the Act) so far as is relevant provides that the Governor-General may make regulations not inconsistent with the Act prescribing all matters which are required or permitted to be prescribed for the carrying out or giving effect to the Act.
Section 13 of the Act provides that the functions of the Corporation are:
(a) to promote the export from Australia of dairy produce;
(b) to control the export from Australia of dairy produce;
(c) to control the sale and distribution of dairy produce after its export from Australia;
(d) to promote trade and commerce in dairy produce among the States, between States and Territories and within the Territories;
(e) to improve the production and encourage the consumption of dairy produce in the Territories; and
(f) such other functions in connection with dairy produce as are provided by the regulations.
In Second Reading Speeches of 26 May 1977 on the Dairy Industry Stabilization Bill 1977 and the Dairy Produce Amendment Bill 1977 the then Minister for Primary Industry said that the Australian Dairy Corporation would be empowered to borrow moneys from the Reserve Bank, under Government Guarantee, to make advances to manufacturers on all prescribed dairy products sold on the domestic and export markets in anticipation of levy collections and sale realisations. The purpose of this measure is to facilitate payment by manufacturers to their suppliers of whole milk and cream.
Section 17 of the Act provides that, where the Corporation has accepted control of any dairy produce or any dairy product placed under its control for the purposes of the Act, it may make advances to the owners of that dairy produce or those dairy products on the security of that produce or products. However, traditional and existing arrangements for the sale of dairy products result in only a small proportion of dairy products being placed under the control of the Corporation.
To enable the Corporation to make advances in circumstances, where section 17 cannot be availed of, it is proposed that an additional function be given to the Corporation. This will be achieved by the proposed regulation which, in pursuance of section 13(f) will enable
the Corporation to provide assistance by way of loans to trading corporations engaged in the manufacture of dairy produce, being loans -
(a) calculated, at a rate per tonne approved by by the Minister, by reference to the quantity of dairy produce held in store by the trading corporation, being dairy produce manufactured by the trading corporation;
(b) secured by a charge over assets of the trading corporation; and
(c) made on terms that require the repayment of the loan at a time that is not later than the time at which -
(i) the dairy produce in respect of which the loan is made is removed by the trading corporation from premises at which it is held in store; or
(ii) any payment is received by the trading corporation in respect of the dairy produce,
whichever first occurs.
Trading corporation, which is defined by reference to paragraph 51 (xx) of the Constitution, was included on the advice of the Attorney-General’s Department in order to secure the constitutional basis for the proposed regulation.
The Corporation will have power, pursuant to section 13A of the Act, to enter into loan agreements with dairy produce manufacturers for the purpose of providing assistance of the kind proposed in the regulation. By virtue of section 24(1)(a) of the Act, the Corporation will have the power to expend moneys of the Corporation in pursuit of its obligations under such loan agreements. Copies of sections 13A and 24(1)(a) are attached.
ATTACHMENT
Section 13A
“The Corporation may do all things that are necessary or convenient to be done for or in connexion with the performance of its functions and, in particular, without limiting by implication the generality of the foregoing, the Corporation may -
(a) make recommendations to the Minister in relation to the making of regulations for the purpose of controlling the export, and the sale and distribution after export, of Australian dairy produce;
(b) make reports and suggestions to the Minister on such matters as the quality, standards and grading of any particular class or kind of dairy produce to be exported from Australia;
(c) subject to the approval of the Minister, on its own behalf or in collaboration with any other person, authority or association of persons, take, or arrange for the taking of, any action in Australia or elsewhere that, in the opinion of the Corporation is likely -
(i) to lead to the improvement of the quality of dairy produce or the prevention of deterioration, before or during transport from Australia, of dairy produce; or
(ii) to expand existing markets or secure new markets for dairy produce; and
(d) apply for, acquire, hold and dispose of letters patent for an invention or an interest in any such letters patent.”
Section 24(1)
“The moneys of the Corporation shall be applied only -
(a) in payment or discharge of the expenses, charges, obligations and liabilities incurred or undertaken by the Corporation in or in connexion with the performance of its functions, or the exercise of its powers, under this Act or under the Dairy Produce Sales Promotion Act 1958-1975.”