MARGINAL DAIRY FARMS AGREEMENTS
ACT 1974
No. 49 of 1974
An Act to amend the Marginal Dairy Farms Agreements Act 1970.
WHEREAS the scheme for the reconstruction of the dairying industry provided for by the Marginal Dairy Farms Agreements Act 1970 and agreements under that Act with the States does not extend beyond 26 July 1974:
AND WHEREAS, before the dissolution of the Parliament on 11 April 1974, the Australian Government had announced further policies for adjustment assistance to the dairying industry, including extension and broadening of the reconstruction scheme, being policies involving financial assistance by Australia to the dairying industry:
AND WHEREAS the provisions of the Industries Assistance Commission Act 1973 that require reference to the Industries Assistance Commission of certain matters relating to financial assistance by Australia to an industry are expressed not to apply to assistance to an industry in accordance with, or for the purposes of, a law of Australia passed after the commencement of that Act and before 1 July 1974:
AND WHEREAS it was intended by the Australian Government to submit to the Australian Parliament, before 1 July 1974, legislation to give effect to the policies so announced but, by reason of the dissolution of the Parliament, it was not possible for the proposed legislation to be so submitted:
AND WHEREAS it is in the national interest that the scheme of reconstruction of the dairying industry already commenced should not be interrupted and that legislation for the extension and broadening of that scheme in accordance with the announced policies should therefore be enacted without reference to the Industries Assistance Commission of the matter of assistance to the dairying industry:
BE IT THEREFORE ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows: —
Short title and citation.
1. (1) This Act may be cited as the Marginal Dairy Farms Agreements Act 1974.
(2) The Marginal Dairy Farms Agreements Act 1970 is in this Act referred to as the Principal Act.
(3) The Principal Act, as amended by this Act, may be cited as the Marginal Dairy Farms Agreements Act 1970-1974.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Definition
3. Section 3 of the Principal Act is amended by adding at the end of, the definition of “acquisition” the words and ‘acquire’ has a corresponding meaning”.
Schemes to comply certain requirements &c
4. Section 5 of the Principal Act is amended—
(a) by omitting from sub-section (2) the words “that is sold at a price pertaining to milk or cream to be used in the manufacture of butter, cheese or other products” and
(b) by omitting sub-section (4) and substituting the following sub-sections:—
“(4) The scheme may be extended to provide that, where—
(a) the Minister or a person authorized by the Minister for the purpose; and
(b) a Minister of State of the State concerned or a person authorized by that Minister for the purpose,
are satisfied that a proposed acquisition or a proposed disposal, or a proposed acquisition and subsequent disposal, under the scheme, of land comprised in a rural property, not being a marginal dairy farm, would assist adjustment in the dairying industry, the land may, under the scheme, be dealt with as proposed as if the property were a marginal dairy farm.
“(5) The scheme may provide that—
(a) the State or an authority of the State may give approval to the disposal by the owner of a marginal dairy farm of land comprised in the farm (including structural improvements on the land) to a person (in this sub-section referred to as ‘the purchaser’) other than the State or an authority of the State if—
(i) the price of the land and any improvements is based on market values current at the time of the disposal; and
(ii) the requirements specified in sub-paragraphs (iii) and (iv) of paragraph (b) of sub-section (3) are met; and
(b) if such an approval is given, the State or the authority may, for the purpose of assisting the purchaser to acquire the land—
(i) pay to the purchaser an amount equal to the amount by which the price to be paid by the purchaser exceeds the price that he would have been required to pay if he had acquired the land from the State under the scheme; and
(ii) make a loan to the purchaser of an amount not exceeding the amount by which the price exceeds the amount referred to in sub-paragraph (i).
“(6) The scheme may provide that, where—
(a) the owner of a rural property has acquired land under the scheme for the purpose of incorporating it into the rural property; and
(b) that incorporation has had the effect of causing structural improvements that were, at the time of the acquisition, on the original rural property to become unsuitable or redundant in relation to the proposed use by the person of the combined property,
the State or an authority of the State may pay to the purchaser an amount in respect of the loss of value to the purchaser of those improvements.
“(7) Where the scheme makes provision in accordance with sub-section (6), the scheme shall further provide that the assistance specified in that paragraph shall not be given with respect to structural improvements that are not ordinarily used for dairy purposes unless the giving of the assistance is approved by—
(a) the Minister or a person authorized by the Minister for the purpose; and
(b) a Minister of State of the State concerned or a person authorized by that Minister for the purpose.
“(8) The scheme may provide for—
(a) the making of interest-free loans by the State or an authority of the State to the owners of marginal dairy farms for the purpose of—
(i) meeting, in the case of a particular farm, the cost of the purchase and installation on the farm of a refrigerated vat for the storage of whole-milk intended for use as fluid milk for human consumption or in the manufacture of butter, cheese or other products; and
(ii) making such other improvements on the farm as are required to enable the whole-milk in the vat to be collected from the farm; and
(b) the making of interest-free loans by the State or an authority of the State to the owners of marginal dairy farms for the purpose of repaying amounts borrowed by them on or after 23 July 1973 and before the commencement of this sub-section for a purpose specified in paragraph (a) and not repaid, and the making of payments for the purpose of reimbursing the owners of marginal dairy farms for the interest paid by them on moneys so borrowed.
“(9) Where the scheme makes provision in accordance with a paragraph of sub-section (8), the scheme—
(a) shall further provide that the assistance specified in that paragraph shall not be given in the case of a particular farm unless the State or an authority of the State is satisfied that there is a reasonable prospect that, by reason of the assistance, the farm will produce a reasonable level of income, being a level ascertained in the manner provided by or under the agreement relating to the scheme; and
(b) may also provide that it shall be a condition of the making of an interest-free loan that the borrower is to be required to pay a monetary penalty for failure to repay an instalment of the loan on, or within a specified period after, the due date for that repayment.
“(10) The scheme may provide for the making of loans by the State or an authority of the State to the owners of marginal dairy farms for the purpose of meeting, in the case of a particular farm—
(a) the cost of developing the farm to the point where the farm is producing from dairying or activities incidental to dairying a reasonable level of income, being a level ascertained in the manner provided by or under the agreement relating to the scheme; and
(b) the whole or a part of the cost of carrying on the farm during the period of development.
“(11) The scheme may provide for—
(a) the making of loans by the State or an authority of the State to the owners of marginal dairy farms for the purpose of meeting, in the case of a particular farm, the cost of converting, by one or more of the following methods, the farm, wholly or in part, to a rural use other than dairying: —
(i) the acquisition of land adjoining, or within a reasonable working distance of, the farm for the purpose of working that land and land comprised in the farm as a single unit;
(ii) the improvement of, or the erection of structural improvements on, land comprised in the farm, including any land referred to in sub-paragraph (i);
(iii) the purchase of livestock or equipment;
(b) the making of loans by the State or an authority of the State to the owners of marginal dairy farms that are, wholly or in part, being converted to a rural use other
than dairying for the purpose of meeting, in the case of a particular farm, the whole or a part of the cost of carrying on the farm during the period of conversion; and
(c) where milking plant or dairy bails on a marginal dairy farm that is, wholly or in part, being converted to a rural use other than dairying will lose some or all of its or their value to the owner of the farm after the conversion of the farm has been effected—the payment by the State or an authority of the State to the owner of the farm of an amount in respect of that loss of value.
“(12) Where the scheme makes provision in accordance with sub-section (11), the scheme shall further provide that the assistance specified in that sub-section shall not be given in the case of a particular farm unless the State or an authority of the State is satisfied that—
(a) the proposed use of land comprised in the farm (including any land proposed to be acquired) will be a more practicable and economic use of the land than dairying; and
(b) there is a reasonable prospect that, by reason of the assistance, the farm (including any land proposed to be acquired) will produce a reasonable level of income, being a level ascertained in the manner provided by or under the agreement relating to the scheme.
“(13) The scheme may provide for—
(a) the making of loans by the State or an authority of the State to persons who have acquired land under the scheme, being loans for the purpose of developing, in the case of particular land so acquired, by one or more of the following methods, that land as a rural property:—
(i) the improvement of, or the erection of structural improvements on, that land;
(ii) the purchase of livestock or equipment; and
(b) the making of loans by the State or an authority of the State to persons referred to in paragraph (a) for the purpose of meeting, in the case of particular land acquired under the scheme, the whole or a part of the cost of working that land as a rural property during the period of development.
“(14) Where the scheme makes provision in accordance with sub-section (10), (11) or (13), the scheme shall further provide the assistance specified in that sub-section shall not be given unless the State or an authority of the State is satisfied that the person to be assisted has been unable to obtain a loan on reasonable terms from normal financial sources for the purposes for which the assistance is to be given.
“(15) The scheme may provide for the making of loans (including interest-free loans) by the State or an authority of the State to persons who, after the commencement of this sub-section, dispose of to, or with the approval of, the State or the authority rural properties that are, at the time of disposal, marginal dairy farms, being loans for the purpose of alleviating conditions of personal hardship being borne by the person concerned or a dependant of that person and not exceeding, in any case, the amount fixed in the agreement relating to the scheme as the maximum amount for such a loan.
5. Section 6 of the Principal Act is repealed and the following section substituted: —
Payments by Australia.
“6. (1) The payments to a State by Australia that may be provided for by an agreement, for the purposes of the scheme to which the agreement relates, shall be amounts equal to the amounts expended by the State or an authority of the State, in accordance with applications under the scheme lodged with, and approved by, the State or the authority before 1 July 1976, as—
(a) the price of land (including structural improvements on the land) acquired by the State or the authority under the scheme; or
(b) a payment or loan under the scheme for the purpose of assisting in the acquisition of land.
“(2) An agreement may make provision for and in relation to a payment by Australia to the State, in addition to the amounts referred to in sub-section (1), of amounts in respect of expenditure by the State or an authority of the State, in accordance with applications under the scheme to which the agreement relates lodged with, and approved by, the State or the authority before 1 July 1976, for the purposes of that scheme or for purposes that, in the opinion of the Minister, are conducive to the objects of that scheme.”.
Total amount available for payments to state
6. Section 7 of the Principal Act is amended by omitting the words
“Twenty-five million dollars” and substituting the symbol and figures “$43,000,000”
Amounts repayable by State.
7. Section 9 of the Principal Act is amended by adding at the end thereof the following sub-section:—
“(3) An agreement may provide for the repayment, by instalments or otherwise, to Australia by the State of, and the payment of interest to Australia by the State on, the whole or a part of an amount paid by Australia under sub-section (2) of section 6 in respect of expenditure by the State or an authority of the State.”.
Advances.
8. Section 10 of the Principal Act is amended by omitting from paragraph (a) the words “sub-section (1.) of section 6 of this Act” and substituting the word and figure “section 6”.
Appropriation.
9. Section 11 of the Principal Act is amended by omitting the words “Twenty-five million dollars” and substituting the symbol and figures “$43,000,000”.
Minor amendments
10. The Principal Act is amended as set out in the Schedule.
Industries Assistance Commission Act not to apply.
11. An agreement or further agreement under the Principal Act, as amended by this Act, may be made, and implemented, notwithstanding the Industries Assistance Commission Act 1973.
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SCHEDULE Section 10
MINOR AMENDMENTS
Provision | Amendment |
Section 3 (definition of “agree- | Omit “of this Act |
ment”) |
|
Section 4(1)............. | Omit “the Commonwealth” (wherever occurring), substitute “Australia”. |
Section 7............... | Omit “the Commonwealth” (wherever occurring), substitute “Australia”. |
Section 8............... | Omit “the Commonwealth”, substitute “Australia”. |
Section 9............... | Omit “the Commonwealth” (wherever occurring), substitute “Australia”. Omit “of this Act”. |
Section 10.............. | Omit “the Commonwealth ”, substitute “Australia” |
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