RAW COTTON BOUNTY (No. 2).
No. 28 of 1941.
An Act to amend the Raw Cotton Bounty Act 1940–1941.
[Assented to 27th September, 1941.]
[Date of commencement, 25th October, 1941.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Raw Cotton Bounty Act (No. 2) 1941.
(2.) Section one of the Raw Cotton Bounty Act 1941 is amended by omitting sub-section (3.).
(3.) The Raw Cotton Bounty Act 1940, as amended by the Raw Cotton Bounty Act 1941, is in this Act referred to as the Principal Act.
(4.) The Principal Act, as amended by this Act, may be cited as the Raw Cotton Bounty Act 1940–1941.
Specification of bounty
2. Section eight of the Principal Act is amended by adding at the end thereof the words “or the date on which sub-section (9.) of the next succeeding section ceases to be in force, whichever is the later”.
Rates of bounty.
3. Section nine of the Principal Act is amended—
(a) by inserting in paragraph (e) of sub-section (1.), after the word “forty-five”. the words “or any subsequent calendar year”;
(b) by adding at the end of sub-section (1.) the following proviso:—
“Provided that, if the Minister is of opinion that, after taking into account bounty payable at the rates provided by this sub-section, the average net return to any producer in respect of all raw cotton of grades higher than the grade known as Strict Good Ordinary and of all by-products of such raw cotton would in any year be more than Fifteen pence per pound of raw cotton, he may—
(a) withhold from the producer payment of such bounty as would result in the average net return, after the bounty is taken into account, exceeding that amount; or
(b) require the producer to give security by bond or guarantee that he will, on demand by the Minister, refund to the Commonwealth such portion of the bounty paid as results in the average net return, after the bounty is taken into account, exceeding that amount.”;
(c) by omitting sub-section (9.) and inserting in its stead the following sub-section:—
“(9.) Notwithstanding anything contained in this section, if the Minister is of opinion that, after taking into account bounty payable at the rates provided by this section, the average net return to any producer in respect of all raw cotton of grades higher than the grade known as Strict Good Ordinary, and of all by-products of such raw cotton, produced during the calendar year ending on the thirty-first day of December, One thousand nine hundred and forty-two or during any subsequent calendar year in which this sub-section is in force, is or will be less than Fifteen pence per pound of raw cotton, such additional amount of bounty shall be payable to the producer as is necessary to increase that average net return to Fifteen pence per pound of raw cotton. This sub-section shall continue in force until the thirty-first day of December next following the first day of February next following the date on which His Majesty ceases to be engaged in actual hostilities in the present war with Germany.”; and
(d) by omitting from sub-section (10.) the word “either” and inserting in its stead the word “any”.
Overview
The Raw Cotton Bounty Act (No. 2) 1941 was enacted by the Commonwealth Parliament to address the economic difficulties faced by cotton producers during the Second World War. The Act amended the Raw Cotton Bounty Act 1940–1941, extending the period for which certain bounties could be paid and allowing the Minister to adjust bounty rates to ensure that the average net return to producers did not exceed a specified amount. The policy objective of this legislation was to provide financial support to cotton producers to maintain production levels during a time of national crisis.
The Raw Cotton Bounty Act (No. 2) 1941 sought to ensure that the cotton industry remained viable and capable of meeting the needs of the war effort by offering financial incentives to producers. By amending the Principal Act, this legislation provided flexibility in the payment of bounties, allowing the Minister to withhold or adjust bounty payments to maintain an equitable average net return for producers. This measure was intended to support the cotton industry while preventing excessive profits that might arise from government support during wartime.
Scope and Application
The Raw Cotton Bounty Act (No. 2) 1941 amends the Raw Cotton Bounty Act 1940–1941, providing further provisions for the payment of bounty on raw cotton produced in Australia. This Act applies to producers of raw cotton, ensuring that they receive a bounty that maintains a minimum average net return of fifteen pence per pound. The bounty applies to raw cotton of grades higher than Strict Good Ordinary and includes by-products of such cotton. The Minister has the authority to withhold or require the refund of bounty if the average net return exceeds the specified amount or to increase the bounty if it falls below fifteen pence per pound. The Act applies on a national level within Australia and its provisions remain in force until the end of the first calendar year following the cessation of hostilities in the war with Germany, as determined by the Minister. The Act allows for adjustments through subordinate instruments to implement the Minister's decisions regarding the bounty rates and conditions.
Key Provisions
The Raw Cotton Bounty Act (No. 2) 1941 amends the Raw Cotton Bounty Act 1940–1941, primarily by altering the specifications of the bounty payment and the rates at which it is to be provided. Section 2 of the Act adds a new provision to section eight of the Principal Act, extending the period during which the bounty can be paid, now being until the later of the specified date or the end of the subsequent sub-section (9) in section nine. Section 3 of the Act modifies section nine of the Principal Act in several ways. Firstly, it extends the bounty eligibility to any subsequent calendar year by inserting "or any subsequent calendar year" in paragraph (e) of sub-section (1). Secondly, it introduces a proviso that allows the Minister to withhold or require a refund of bounty if the average net return to producers exceeds fifteen pence per pound of raw cotton. Thirdly, it replaces sub-section (9) with a new provision that mandates an additional bounty if the average net return is less than fifteen pence per pound, effective until a certain date related to the cessation of hostilities in the war with Germany.
The Act imposes certain obligations and requirements on the parties it governs. Producers of raw cotton must ensure that their net returns do not exceed the specified limit of fifteen pence per pound, failing which they may be required to refund any excess bounty received. The Minister is tasked with assessing the average net returns and determining the appropriate bounty payments or refunds. This involves meticulous record-keeping and possibly security arrangements as per the new proviso inserted in sub-section (1). Furthermore, the Act requires the Minister to monitor the net returns closely and adjust bounty payments dynamically based on the economic conditions and the prevailing rates of return.
The Act also delineates consequences for non-compliance. While the Act does not explicitly enumerate offences or penalties, the requirement to refund excess bounty payments if the average net return exceeds the stipulated limit implies a financial penalty for producers who fail to adhere to the set guidelines. Additionally, the omission of sub-section (9) and its replacement with a new sub-section indicates a stricter control mechanism, potentially with more severe repercussions if the additional bounty conditions are not met during the specified period. Non-compliance could result in financial liabilities for the producers, impacting their profitability and compliance with the Act’s provisions.