TASMANIA GRANT (ASSOCIATED PULP AND PAPER MILLS LIMITED) ACT 1975
No. 71 of 1975
An Act to Grant Financial Assistance to Tasmania in relation to Associated Pulp and Paper Mills Limited.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title.
1. This Act may be cited as the Tasmania Grant (Associated Pulp and Paper Mills Limited) Act 1975.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Definitions.
3. In this Act—
“Company” means the company incorporated in Victoria by the name of Associated Pulp and Paper Mills Limited;
“prescribed interest” means interest payable by the Company in respect of the period from and including 1 May 1975 to and including 31 December 1975 in respect of a loan of $8,000,000 made to the Company by the Commonwealth Trading Bank.
Grant of financial assistance.
4. (1) Subject to this Act, there are payable to Tasmania, by way of financial assistance, amounts equal to amounts paid by Tasmania to the Company in respect of amounts of prescribed interest paid or payable by the Company.
(2) The total amount of financial assistance to Tasmania under this Act shall not exceed $650,000.
Undertakings by Company in relation to employment.
5. Tasmania is not entitled to financial assistance under this Act unless undertakings to the satisfaction of the Minister have been given by the Company to Tasmania, before the commencement of this Act, with respect to the maintenance of employment, and the furnishing of information, by the Company.
Failure to comply with undertakings.
6. Where the Minister notifies Tasmania that he is satisfied that the Company has, whether before or after the commencement of this Act, acted contrary to an undertaking referred to in section 5, Tasmania is not entitled to financial assistance under this Act in relation to any payment made by Tasmania to the Company after the notification.
Appropriation.
7. Amounts payable to Tasmania under this Act are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.
Overview
The Tasmania Grant (Associated Pulp and Paper Mills Limited) Act 1975 was enacted to provide financial assistance to Tasmania in relation to the Associated Pulp and Paper Mills Limited, a company incorporated in Victoria. This legislation was introduced by the Australian Parliament to address the financial difficulties faced by the company, specifically in covering the prescribed interest on a substantial loan taken from the Commonwealth Trading Bank. The Act aims to alleviate some of the financial burden on Tasmania by reimbursing them for the prescribed interest paid by the company, up to a maximum of $650,000. The policy objective is to support the maintenance of employment and the provision of necessary information by the company, contingent upon the company giving satisfactory undertakings to Tasmania and the Minister. Failure to adhere to these undertakings can result in the cessation of financial assistance to Tasmania. The financial assistance provided under this Act is appropriated from the Consolidated Revenue Fund.
Scope and Application
The Tasmania Grant (Associated Pulp and Paper Mills Limited) Act 1975 provides financial assistance to the state of Tasmania in relation to a specific loan made to Associated Pulp and Paper Mills Limited, a company incorporated in Victoria. The Act applies to the Commonwealth, Tasmania, and the aforementioned company, focusing on a particular financial transaction involving a loan of $8,000,000 made by the Commonwealth Trading Bank to the company. The financial assistance granted under this Act is limited to the prescribed interest on this loan, specifically for the period from 1 May 1975 to 31 December 1975, and is capped at a maximum of $650,000. Tasmania's eligibility for this financial assistance is contingent upon the company providing undertakings to Tasmania regarding the maintenance of employment and the provision of information, which must be satisfactory to the relevant Minister. If the Minister determines that the company has breached any of these undertakings, Tasmania loses its entitlement to financial assistance for any subsequent payments made to the company. The Act's financial assistance is funded from the Consolidated Revenue Fund, ensuring the appropriation of necessary funds for this purpose.
Key Provisions
The Tasmania Grant (Associated Pulp and Paper Mills Limited) Act 1975 (referred to as the Act) provides financial assistance to Tasmania for prescribed interest payments made by Associated Pulp and Paper Mills Limited (the Company) on a specific loan. Section 4(1) stipulates that Tasmania is to receive financial assistance from the Commonwealth, which is equivalent to the amounts Tasmania has paid to the Company for the prescribed interest. Importantly, this assistance is capped at a total of $650,000, as outlined in section 4(2). This cap ensures that the financial support remains within a specified limit.
The Act imposes several obligations on the Company to ensure the financial assistance is appropriately tied to specific conditions. Section 5 requires the Company to provide undertakings to Tasmania regarding the maintenance of employment levels and the provision of relevant information. These undertakings must be satisfactory to the Minister and must be given before the Act comes into operation. The primary objective of these undertakings is to safeguard employment and ensure transparency in the operations of the Company. Failure to adhere to these conditions could jeopardise the Company's eligibility for financial support.
In the event that the Minister determines that the Company has breached any of the undertakings provided under section 5, Tasmania's entitlement to financial assistance under this Act can be revoked. Section 6 explicitly states that if the Minister notifies Tasmania that the Company has acted contrary to the required undertakings, Tasmania will not be eligible for financial assistance for any payments made to the Company after such notification. This provision serves as a deterrent for non-compliance and ensures that the Company adheres to the agreed-upon terms. The financial implications of such breaches could be significant, as they would result in the cessation of financial support to Tasmania.
The Act also outlines the appropriation of funds for the financial assistance provided to Tasmania. As stated in section 7, the amounts payable to Tasmania under this Act are to be sourced from the Consolidated Revenue Fund. This appropriation ensures that the necessary funds are allocated and available for the stipulated financial assistance, maintaining the integrity and financial stability of the support provided under the Act.