Freight Arrangements Act 1915

Overview

The Freight Arrangements Act 1915 was enacted by the Parliament of Australia to facilitate the borrowing of money from the Commonwealth Bank of Australia for the payment of freight arrangements on Australian produce, particularly during the First World War. The Act authorises the Treasurer to borrow up to one hundred thousand pounds from the Commonwealth Bank to meet these expenses. It establishes a special account, the Commonwealth Treasurer Freight Arrangements Account, to manage these financial transactions. Interest at the rate of five per cent per annum is payable on any debit balance in this account, which may be charged against it. The Act includes a provision for the account to be closed if the Treasurer determines it is no longer necessary, with any resulting credit balance transferred to the Consolidated Revenue Fund, and any debit balance to be paid from the Fund. The Act is intended to remain in force during the ongoing wheat season and for a period of six months following the conclusion of the war. The policy objective of the Freight Arrangements Act 1915 was to ensure the smooth operation of freight arrangements for Australian produce during a critical period, supporting the war effort by maintaining financial liquidity for such essential activities. The Act was designed to provide a temporary financial solution to meet immediate needs while the war was ongoing and to ensure that the Commonwealth's debt did not exceed the specified limit.

Scope and Application

The Freight Arrangements Act 1915 applies to the Treasurer of the Commonwealth of Australia, who is authorised to borrow money from the Commonwealth Bank of Australia specifically for the payment of moneys related to freight arrangements on Australian produce. The Act specifies that the Commonwealth's indebtedness to the Commonwealth Bank under this legislation must not exceed One hundred thousand pounds at any time. The borrowing and repayment of these funds are to be meticulously tracked in a dedicated account named "Commonwealth Treasurer Freight Arrangements Account." This account will record all moneys advanced by the Commonwealth Bank and all moneys received by the Commonwealth Bank from or on behalf of the Commonwealth, ensuring transparency and accountability. The Act also mandates that interest at the rate of five pounds per centum per annum be payable on the amount by which this account is in debit. Furthermore, the Act stipulates that the account may be closed by the Treasurer if it is deemed unnecessary to continue, with any credit balance transferred to the Consolidated Revenue Fund and any debit balance to be paid from the Consolidated Revenue Fund. The Act is designed to remain in operation during the present wheat season, but it will cease to be in force six months after the conclusion of the war.

Key Provisions

The main operative sections of the Freight Arrangements Act 1915 (C1915A00040) include the authority for the Treasurer to borrow moneys from the Commonwealth Bank of Australia (section 2(1)) for the purpose of paying for freight arrangements on Australian produce, with the condition that the Commonwealth's debt to the Bank must not exceed one hundred thousand pounds at any time (section 2(1)). The Act mandates that all moneys received by the Commonwealth in respect of freight or freight arrangements on Australian produce be paid into the Commonwealth Bank, to be credited to the specified account (section 2(2)). Furthermore, section 3 establishes a special account called the “Commonwealth Treasurer Freight Arrangements Account” to track all moneys advanced by the Bank and all moneys received by the Bank from or on behalf of the Commonwealth. Interest at the rate of five pounds per centum per annum is payable on any debit balance in this account (section 4), and the account can be closed by the Treasurer if it is deemed no longer necessary, with any resulting balance being transferred or paid from the Consolidated Revenue Fund (section 5). The Act imposes several obligations on the parties it governs. The primary obligation on the Treasurer is to ensure that the borrowings from the Commonwealth Bank are used strictly for the payment of freight arrangements on Australian produce, and to maintain the debt within the specified limit of one hundred thousand pounds. The Treasurer must also deposit all freight-related funds received by the Commonwealth into the designated account (section 2(2)). Additionally, the Commonwealth Bank is required to maintain accurate records of all transactions related to the freight arrangements in the special account (section 3). The Treasurer has the responsibility to monitor the need for the account and to close it if it is no longer necessary (section 5). The Act includes provisions for civil and financial consequences for breaches. While the specific penalties are not detailed within the provided text, it is implied that any mismanagement or misuse of the funds could lead to financial discrepancies and potential liabilities. The account's closure and transfer of balances to or from the Consolidated Revenue Fund (section 5) indicate a structured financial oversight mechanism, which would be integral in managing and penalising any breaches. Additionally, the statutory limitation of the Act's operation to the duration of the present wheat season and six months post-war suggests a framework for accountability and compliance.