Wheat Industry Stabilization (Reimbursement of Borrowing Costs) Act 1979

Overview

The Wheat Industry Stabilization (Reimbursement of Borrowing Costs) Act 1979, enacted by the Parliament of Australia, was designed to address financial challenges faced by the Australian Wheat Board (AWB) in relation to its borrowing activities. The legislation was enacted to provide reimbursement to the AWB for certain borrowing costs, ensuring that the Board did not bear the full financial burden of its commercial borrowings, particularly those made for specific purposes such as loan repayments. The policy objective of the Act was to stabilise the wheat industry by ensuring that the AWB could manage its financial obligations more effectively, thereby supporting the broader wheat industry. The Act allows the Minister for Finance to determine the amounts payable to the Board and provides for advances to be made to the Board to cover anticipated payments, with any excess repaid by the Board to the Commonwealth.

Scope and Application

The Wheat Industry Stabilization (Reimbursement of Borrowing Costs) Act 1979 applies specifically to the Australian Wheat Board, which is identified as the Board in the Act. It pertains to the reimbursement of the Board for certain borrowing costs incurred by it in relation to its wheat industry functions. The Act is concerned with commercial borrowing made otherwise than from the Reserve Bank of Australia, specifically relating to prescribed borrowings made by the Board for purposes of loan repayment or for other purposes under the Reserve Bank Act 1959. The Act covers borrowings made by the Board up until 31 March 1980. The Act operates on a Commonwealth level, with payments made out of the Consolidated Revenue Fund. The Act does not explicitly provide for extension or restriction of its application through subordinate instruments, but it does allow the Minister for Finance to make advances to the Board on account of expected payments under the Act.

Key Provisions

The Wheat Industry Stabilization (Reimbursement of Borrowing Costs) Act 1979 (sections 1–6) establishes a framework for reimbursing the Australian Wheat Board (the Board) for specific borrowing costs. Under section 4, the Minister is required to determine the amounts payable to the Board. This involves calculating the difference in interest and expenses of borrowing between commercial borrowings and Reserve Bank borrowings, which are used for certain purposes such as loan repayments and making advances under the Reserve Bank Act 1959. The Minister is to make payments to the Board (section 4), which may include advances as outlined in section 5, and these payments are to be made from the Consolidated Revenue Fund as appropriated in section 6. The Act imposes several obligations on the parties involved. The Minister for Finance is tasked with determining the amounts payable to the Board under section 4 and has the authority to make advances to the Board under section 5. The Board is obligated to repay any excess advances if the total amount paid exceeds the amounts payable as determined by the Minister. Additionally, the Board must ensure that all borrowings are categorised correctly as either commercial or Reserve Bank borrowings, and that any interest or expenses incurred are within the specified timeframes and purposes outlined in the Act. In terms of consequences for non-compliance or breaches, the Act does not explicitly detail offences or penalties. However, the obligation for the Board to repay excess advances if they exceed the amounts payable suggests a requirement for financial accuracy and accountability. The Act's focus is on the reimbursement process and financial calculations rather than punitive measures, indicating that the primary concern is the accurate and timely reimbursement of costs rather than penalising non-compliance.