Loan (Australian Wheat Board)
No. 11 of 1971
An Act to Authorize the Borrowing of Moneys by the Commonwealth and the Lending of those Moneys to the Australian Wheat Board.
[Assented to 31 March 1971]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Loan (Australian Wheat Board) Act 1971.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow $250,000,000.
3. The Treasurer may, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911–1966 or in accordance with the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole Two hundred and fifty million dollars.
Application of moneys.
4.—(1.) Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and in pursuance of the next succeeding sub-section.
(2.) Moneys borrowed under this Act may be lent to the Australian Wheat Board for the purpose of enabling the discharge of the liability of the Board to the Reserve Bank of Australia in respect of advances made by that Bank through its Rural Credits Department in connexion with the acquisition and marketing of wheat included, in accordance with section 21a of the Wheat Industry Stabilization Act 1968–1970, in the pool for the quota season that commenced on the first day of October, One thousand nine hundred and sixty-nine.
(3.) Moneys lent under the last preceding sub-section shall be lent on the following terms and conditions and on such other terms and conditions (if any) as the Treasurer, by instrument in writing, determines:—
(a) interest on the amount of the loan outstanding from time to time is to be at the rate of five and one-half per centum per annum and is to accrue at the times, and in the manner, specified by the Treasurer by instrument in writing;
(b) an amount of interest that has accrued is to be added to, and to be deemed to form part of, the amount of the loan then outstanding;
(c) the amount of the loan outstanding from time to time is to be repaid from moneys of the following kinds that become available to the Board after the commencement of this Act:—
(i) the net proceeds, calculated in accordance with sub-sections (5.) and (6.) of section 21 of the Wheat Industry Stabilization Act 1968–1970, of the disposal (whether before or after the commencement of this Act) of any of the wheat referred to in the last preceding sub-section sold by the Board for export; and
(ii) any payment to the Board under sub-section (3.) of section 31 of that Act in respect of that wheat; and
(d) moneys applicable for the purpose of the repayment of the loan are to be applied by the Board for that purpose at such times as are specified by the Treasurer by instrument in writing.
Overview
The Loan (Australian Wheat Board) Act 1971 was enacted to authorise the Commonwealth to borrow up to $250 million to lend to the Australian Wheat Board. The primary purpose of this legislation was to facilitate the Board's ability to discharge its liabilities to the Reserve Bank of Australia, specifically concerning advances made for the acquisition and marketing of wheat. The policy objective was to ensure the stability and continuity of wheat-related financial operations, thereby supporting the agricultural sector's economic needs. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it came into operation upon receiving Royal Assent on 31 March 1971. The funds borrowed under this Act were to be strictly applied to the specified borrowing expenses and the stipulated terms for lending to the Wheat Board, including interest rates and repayment terms.
Scope and Application
The Loan (Australian Wheat Board) Act 1971 is a Commonwealth Act that authorises the borrowing of up to $250 million by the Treasurer and the subsequent lending of those funds to the Australian Wheat Board. This Act applies specifically to the financial transactions between the Commonwealth and the Australian Wheat Board, aiming to facilitate the discharge of the Board's liabilities to the Reserve Bank of Australia in connection with wheat marketing and acquisition. The application of the borrowed funds is strictly delineated to cover borrowing expenses and the specified terms of the loan to the Wheat Board, which includes a fixed interest rate of 5.5% per annum and specific repayment terms based on the Board's net proceeds from wheat sales and payments under the Wheat Industry Stabilization Act 1968-1970. This Act is jurisdictional in scope, operating under the authority of the Commonwealth government, and its application is confined to the transactions outlined within its provisions. There are no stated exclusions or exemptions within the text of this Act, and it does not explicitly extend its application through subordinate instruments.
Key Provisions
The Loan (Australian Wheat Board) Act 1971 primarily authorises the borrowing of up to $250,000,000 by the Commonwealth and the subsequent lending of these funds to the Australian Wheat Board (sections 1 and 3). The moneys borrowed must be used specifically for the expenses of borrowing and can be lent to the Australian Wheat Board to settle its liabilities to the Reserve Bank of Australia in relation to wheat marketing for the 1969 quota season (section 4(1) and (2)). The conditions under which these loans are to be made are outlined in section 4(3), including interest rates, the method of interest accrual, and the sources from which the loans must be repaid.
The Act imposes several obligations on the parties involved. The Treasurer is required to borrow the specified amount in accordance with either the Commonwealth Inscribed Stock Act 1911–1966 or any other applicable Act permitting the issuance of Treasury Bills (section 3). The Australian Wheat Board must adhere to the terms and conditions set forth in section 4(3), including the repayment of the loan using specified proceeds from the sale of wheat and any payments received under the Wheat Industry Stabilization Act 1968–1970 (section 4(3)(c)). The Treasurer retains the authority to specify additional terms and conditions for the loan by written instrument (section 4(3)).
There are no explicit provisions within the Act detailing offences, penalties, or consequences for breach. However, the Act's strict terms regarding the application of borrowed funds and the conditions for loan repayment suggest that non-compliance could lead to legal ramifications, potentially including civil actions for breach of the specified terms. Given that the Act does not explicitly outline penalties, any enforcement of compliance would likely fall under general legal principles governing contractual and statutory obligations.