Raw Cotton Bounty Act 1934

Legislation au C1934A00022 Not in force Act

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RAW COTTON BOUNTY.

 

No. 22 of 1934.

An Act to provide for the Payment of Bounty on the Production of Raw Cotton, and for other purposes.

[Assented to 4th August. 1934.]

Preamble.

BE it enacted by the Kings Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—

Short title.

1. This Act may be cited as the Raw Cotton Bounty Act 1934.


Commencement.

2. This Act shall commence on a date to be fixed by Proclamation.

Repeal.

3. The Cotton Industries Bounty Act 1930 and the Cotton Industries Bounty Act 1932 are repealed.

Definitions.

4. In this Act, unless the contrary intention appears—

raw cotton means the fibrous hairs of the seed of the cotton plant after the hairs have been separated from the seed by the process of ginning.

appointed place means a place appointed by the Minister, by writing under his hand, to be a place where raw cotton may be weighed, examined and graded for the purposes of this Act

Appropriation.

5. There shall be payable out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, the bounty specified in this Act.

Specification of bounty.

6. The bounty under this Act shall be payable in respect of raw cotton which—

(a) has been produced in Australia from Australian-grown seed cotton;

(b) has been produced at an appointed place; and

(c) has been graded in one of the grades prescribed under section eleven of this Act,

on or after the date of the commencement of this Act and on or before the thirtieth day of November, One thousand nine hundred and thirty-nine.

Prohibition of double bounty.

7. No bounty shall be paid under this Act upon any raw cotton produced from seed cotton upon which bounty has been paid or is payable under the Cotton Industries Bounty Act 1930–1932.

Limit of bounty.

8. The maximum amount of raw cotton produced in any year ending on the thirtieth day of November, upon which bounty may be paid under this Act, shall be such quantity as the Minister determines as being the quantity of raw cotton, required during the year ending on the thirty-first day of March next following that year, for consumption by users in Australia of raw cotton, plus twenty per centum of the quantity so determined.

Rates of bounty.

9.—(1.) Subject to this section, the rates of bounty payable under this Act on the quantity of raw cotton of grades higher than the grade known as Strict Good Ordinary produced during the week ending at the close of business on each Friday, shall be—

(a) during the year ending on the thirtieth day of November, One thousand nine hundred and thirty-five—fivepence farthing per pound when the Liverpool price on that Friday is sixpence per pound, or one one-hundredth of one penny per pound more or less than fivepence farthing per pound for every one-hundredth of one penny per pound by which that price, on that Friday, is (as the case may be) less or more than sixpence per pound, but so that the rate of bounty shall not in any case exceed sixpence half-penny per pound;


(b) during the year ending on the thirtieth day of November, One thousand nine hundred and thirty-six—fourpence three farthings per pound when the Liverpool price on that Friday is sixpence per pound, or one one-hundredth of one penny per pound more or less than fourpence three farthings per pound for every one-hundredth of one penny per pound by which that price, on that Friday, is (as the case may be) less or more than sixpence per pound, but so that the rate of bounty shall not in any case exceed sixpence per pound; and

(c) during each of the years ending on the thirtieth day of November, One thousand nine hundred and thirty-seven, One thousand nine hundred and thirty-eight and One thousand nine hundred and thirty-nine respectively—fourpence farthing per pound when the Liverpool price on that Friday is sixpence per pound, or one one-hundredth of one penny per pound more or less than fourpence farthing per pound for every one-hundredth of one penny per pound by which that price, on that Friday, is (as the case may be) less or more than sixpence per pound, but so that the rate of bounty shall not in any case exceed fivepence half-penny per pound.

(2.) The Governor-General may, by Proclamation, increase the rates of bounties specified in the last preceding sub-section by amounts not exceeding three-tenths of one penny per pound for every reduction of Five pounds per centum in the telegraphic transfer rate of exchange, Australia on London, below Twenty-five pounds ten shillings per centum, but so that the aggregate of the increases effected under this sub-section shall not exceed one and one-half pence per pound:

Provided that any such increase in the rates of bounty shall not be greater than the amount, if any, by which the nett return per pound on Australian raw cotton is, in the opinion of the Minister, diminished by the reduction in the telegraphic transfer rate of exchange, Australia on London, below Twenty-five pounds ten shillings per centum.

(3.) The rates of bounty payable under this Act on the quantity of raw cotton of the grade known as Strict Good Ordinary and grades lower than that grade produced during the week ending at the close of business on each Friday shall be one-half of the rates of bounty determined, from time to time, in accordance with the foregoing provisions of this section.

(4.) For the purposes of this section Liverpool price means the official spot quotation for American middling raw cotton at Liverpool, England.

(5.) Where any question arises as to the amount of the Liverpool price at anytime, the question shall be decided by the Minister and his decision shall be final and conclusive.

To whom bounty payable.

10.—(1.) Bounty payable under this Act in respect of any raw cotton shall, subject to this Act, be paid, in such manner and subject


to such conditions as are prescribed, to the producer for distribution by him to growers of seed cotton from which raw cotton, upon which bounty has been paid under this Act, has been produced.

(2.) The Minister may require any producer to whom bounty is paid, or proposed to be paid, under the last preceding sub-section to furnish security by bond, guarantee or cash deposit, or by all or any of these methods, for the distribution, in such manner and subject to such conditions as are prescribed, to growers of seed cotton of the bounty paid to him in respect of the raw cotton produced from that seed cotton.

Grading.

11. All raw cotton on which bounty is claimed shall be graded into such grades and staple lengths as are prescribed.

Good quality necessary.

12. No bounty shall be paid on the production of any raw cotton unless it is of good and merchantable quality.

Act must be complied with.

13. No bounty shall be authorized to be paid unless proof is furnished to the satisfaction of the Minister that the requirements of this Act and the regulations have been complied with.

Rates of wages and conditions of employment.

14.—(1.) The Minister may make application to the Chief Judge, or a Judge, of the Commonwealth Court of Conciliation and Arbitration, or to any Commonwealth authority established for the purpose of determining rates of wages and conditions of employment, for a declaration as to what rates of wages and conditions of employment are fair and reasonable for labour employed in the production of raw cotton, or in the growing of seed cotton from which raw cotton has been produced.

(2.) Every person who claims the bounty payable under this Act on raw cotton shall, in making such claims, furnish to the Minister such evidence as the Minister requires as to the rates of wages paid, and the conditions of employment observed, in respect of any labour employed in the production of that raw cotton and in the growing of the seed cotton from which that raw cotton has been produced.

(3.) If the Minister finds that the rates of wages or conditions of employment, or any of them, paid or observed in respect of any labour employed in the production of raw cotton upon which bounty is claimed or in the growing of seed cotton from which the raw cotton has been produced—

(a) are below the rates and conditions declared, in pursuance of sub-section (1.) of this section, to be fair and reasonable ; or

(b) are below the standard rates and conditions prescribed by the Commonwealth Court of Conciliation and Arbitration, or by any other industrial authority of the Commonwealth or a State,

the Minister may withhold the whole or any part of the bounty payable.

(4.) If—

(a) the Chief Judge, or a Judge, of the Commonwealth Court of Conciliation and Arbitration has not declared, in accordance with sub-section (1.) of this section, what rates of wages


and conditions of employment are fair and reasonable for labour employed in the production of raw cotton, or in the growing of seed cotton from which raw cotton has been produced; and

(b) there are not in force, in the locality where the raw cotton is produced or the seed cotton is grown, any standard rates and conditions relating to the labour employed in the production of raw cotton or the growing of seed cotton, prescribed by the Commonwealth Court of Conciliation and Arbitration or by an industrial authority of a State, or contained in an industrial agreement registered under any law of the Commonwealth or a State,

the Minister may appoint an authority or authorities for determining, for the purposes of this section, rates of wages and conditions of employment which are fair and reasonable for labour employed in the production of raw cotton or the growing of seed cotton, and any authority so appointed shall be deemed to be a Commonwealth authority within the meaning of sub-section (1.) of this section.

(5.) An authority appointed by the Minister under the last preceding sub-section shall consist of a representative of employers engaged in the production of raw cotton and the growing of seed cotton, a representative of employees engaged in such production, and a person who shall act as Chairman and who shall be appointed by the Minister on the joint nomination of the representatives of employers and employees:

Provided that, if the representatives of employers and employees fail to make a joint nomination of a Chairman within twenty days after being called upon by the Minister so to do, the Governor-General may appoint a person to act as Chairman.

Bounty subject to Financial Emergency Act 1931.

15. Any amount of bounty payable under the foregoing provisions of this Act shall be subject to the reduction specified in section fifty-two of the Financial Emergency Act 1931.

Audit of accounts, &c.

16. The accounts, books and documents of any person, firm or company claiming bounty under this Act shall be subject to examination and audit by an auditor appointed or authorized by the Minister.

Offences.

17. No person shall—

(a) obtain any bounty which is not payable;

(b) obtain payment of any bounty by means of any false or misleading statement; or

(c) present to any officer or other person doing duty in relation to this Act or the regulations any document, or make to any such officer or person any statement, which is false in any particular.

Penalty: One hundred pounds or imprisonment for twelve months.


Returns for Parliament.

18.—(1.) A return shall be prepared not later than the thirty-first day of August of each year, and shall be laid before both Houses of the Parliament within thirty days after its preparation if the Parliament is then sitting, and, if not, then within thirty days after the next meeting thereof.

(2.) The return shall set forth in respect of the preceding financial year—

(a) the number of persons to whom the bounty was paid;

(b) the total quantity of raw cotton on which bounty was paid;

(c) the total amount of bounty paid; and

(d) such other particulars as are prescribed.

Regulations.

19. The Governor-General may make regulations not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act, and in particular for prescribing penalties not exceeding Fifty pounds for any breach of the regulations.

 

Overview

The Raw Cotton Bounty Act 1934 was enacted by the Parliament of the Commonwealth of Australia to address the need for financial support for the raw cotton industry, which was struggling due to low prices and economic conditions during the early 1930s. This Act replaced the previous Cotton Industries Bounty Act 1930 and the Cotton Industries Bounty Act 1932. Its primary policy objective was to provide financial assistance to raw cotton producers by offering a bounty for the production of Australian-grown raw cotton of a certain quality. This support was aimed at ensuring the viability of the cotton industry and securing the supply of raw cotton for domestic textile manufacturing. The bounty provided was subject to various conditions, including the quality of the raw cotton and compliance with specified rates of wages and conditions of employment for workers in the industry.

Scope and Application

The Raw Cotton Bounty Act 1934 applies to persons, firms, or companies involved in the production of raw cotton in Australia. It specifies the bounty payable for raw cotton that has been produced from Australian-grown seed cotton, produced at an appointed place, and graded according to the standards set forth in the Act. The bounty is payable for raw cotton produced on or after the commencement date and before 30 November 1939. The Act does not allow for double bounty payments on the same seed cotton. The Minister determines the maximum amount of raw cotton eligible for the bounty each year, which is based on the required consumption by Australian users plus an additional twenty percent. The bounty rates are determined based on the Liverpool price of American middling raw cotton and can be adjusted by the Governor-General under specific conditions. The bounty is paid to the producer for distribution to the growers of seed cotton. The Act also includes provisions for grading, quality standards, compliance, and the examination of accounts by an appointed auditor. Offences under the Act are subject to penalties of up to one hundred pounds or twelve months imprisonment. The accounts and documents of those claiming the bounty are subject to audit by an auditor appointed by the Minister.

Key Provisions

The Raw Cotton Bounty Act 1934 provides for the payment of a bounty on the production of raw cotton in Australia. The Act specifies the conditions under which the bounty may be paid (s.6), the rates of bounty (s.9), and the circumstances under which the bounty may not be paid (s.7). Bounty may only be paid for raw cotton produced in Australia from Australian-grown seed cotton, produced at an appointed place, and graded in one of the grades prescribed under section eleven of the Act (s.6(a)-(c)). Bounty is not payable on raw cotton produced from seed cotton on which bounty has already been paid or is payable under the Cotton Industries Bounty Act 1930–1932 (s.7). The bounty is to be paid to the producer for distribution to growers of seed cotton (s.10(1)). The Act also outlines the conditions for the payment of the bounty, including the requirement for the raw cotton to be of good and merchantable quality (s.12), and the need to furnish evidence of fair wages and reasonable conditions of employment (s.14). The Act imposes several obligations on the parties it governs. Producers of raw cotton must ensure that the cotton meets the specified quality and production requirements to be eligible for the bounty (s.12). They must also provide evidence of fair wages and reasonable conditions of employment to the Minister, and may be required to furnish security for the distribution of the bounty to seed cotton growers (s.10, s.14). The Minister has the authority to appoint authorities to determine fair and reasonable rates of wages and conditions of employment if no such rates have been declared or prescribed (s.14(4)-(5)). The accounts, books, and documents of any person, firm, or company claiming bounty must be subject to examination and audit by an auditor appointed by the Minister (s.16). The Act sets out several offences and penalties for breaches. A person who obtains any bounty that is not payable, or who obtains payment of any bounty by means of any false or misleading statement, or who presents a false document or makes a false statement to an officer or other person doing duty in relation to the Act or the regulations, commits an offence and is liable to a penalty of one hundred pounds or imprisonment for twelve months (s.17). The Governor-General may make regulations not inconsistent with the Act, prescribing all matters required or permitted to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Act, and in particular for prescribing penalties not exceeding fifty pounds for any breach of the regulations (s.19).

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.