Loan (Australian Wheat Board)
No. 9 of 1972
An Act to Authorize the Borrowing of Moneys by the Commonwealth and the Lending of those Moneys to the Australian Wheat Board.
[Assented to 24 March 1972]
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 1972.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow $150,000,000.
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 One hundred and fifty million dollars.
Application or 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 seventy.
(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 subsections (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 1972 was enacted to address a specific financial need of the Australian Wheat Board, enabling it to discharge its liabilities to the Reserve Bank of Australia for advances made in connection with wheat marketing. This legislation, enacted by the Australian Parliament, authorises the Commonwealth to borrow up to $150 million, which can then be lent to the Australian Wheat Board under specified conditions. The primary objective of this Act is to facilitate the financial operations of the Australian Wheat Board by providing a mechanism for timely repayment of its debts through the sale of wheat and related payments.
This Act was designed to ensure that the Australian Wheat Board could meet its financial obligations without incurring additional debt, thereby maintaining the stability and integrity of its operations within the wheat industry.
Scope and Application
The Loan (Australian Wheat Board) Act 1972 applies specifically to the Commonwealth of Australia and the Australian Wheat Board, allowing the Treasurer to borrow up to $150 million for the purpose of lending to the Australian Wheat Board. The borrowing is to facilitate the discharge of the Board's liability to the Reserve Bank of Australia in relation to wheat acquired and marketed during the quota season starting October 1, 1970. This Act is a Commonwealth law and its application is limited to these entities and the specified financial transactions. The Act does not explicitly mention any exclusions or exemptions; however, the borrowing and lending are confined to the terms and conditions stipulated within the Act and any additional terms the Treasurer may determine. The geographic reach of this Act is national, as it pertains to the Commonwealth and its authorised entities. The Act's provisions can be extended or modified through subordinate instruments issued by the Treasurer.
Key Provisions
The Loan (Australian Wheat Board) Act 1972 authorizes the borrowing of up to $150,000,000 by the Commonwealth, which can then be lent to the Australian Wheat Board (section 3). This borrowing is to be done in accordance with either the Commonwealth Inscribed Stock Act 1911–1966 or any Act authorizing the issue of Treasury Bills. The borrowed funds are intended to cover the expenses of borrowing and to be applied strictly as specified in section 4(1). Specifically, the funds can be used to enable the Australian Wheat Board to repay its debts to the Reserve Bank of Australia arising from advances made for wheat marketing during the quota season starting on 1 October 1970 (section 4(2)).
The Act imposes clear obligations on the Treasurer, who must ensure that the borrowed funds are applied only for the purposes outlined in the Act (section 4(1)). The Treasurer is also responsible for setting the terms and conditions of the loan to the Wheat Board, including the interest rate, which is set at 5.5% per annum, and the repayment schedule (section 4(3)). The Board must then use the net proceeds from the sale of wheat and any payments received under the Wheat Industry Stabilization Act 1968–1970 to repay the loan according to the Treasurer's specifications (section 4(3)(c)).
Failure to comply with the provisions of the Act may result in legal consequences. While the Act does not explicitly state the penalties for breach, under Australian law, non-compliance with statutory provisions can lead to civil or criminal liability. The precise penalties may depend on the nature and severity of the breach, but they could include fines, imprisonment, or other civil remedies. The exact consequences would be determined in the context of any legal proceedings brought under the relevant laws governing statutory compliance and financial management.