WHEAT POOL ADVANCES.
No. 32 of 1923.
An Act to authorize the Treasurer of the Commonwealth to guarantee advances made to finance Schemes for the Marketing of Wheat
[Assented to 1st September, 1923.]
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.
1. This Act may be cited as the Wheat Pool Advances Act 1923.
Guarantee of advances and overdraft to wheat pool.
2.—(1.) Where an association of persons formed for the purpose of controlling a scheme to secure the marketing of any Australian wheat to be harvested during the financial year ending the thirtieth day of June One thousand nine hundred and twenty-four has arranged to receive an advance from, or to have an overdraft with, a banking corporation in connexion with the financing of the scheme, the Treasurer of the Commonwealth may, if he thinks fit, guarantee to the banking corporation the repayment of the advance or the settlement of the overdraft as the case may be:
Provided that the amount so guaranteed shall not exceed the sum of three shillings and eight pence per bushel of wheat marketed under the scheme.
(2.) Any guarantee under this section may be subject to such conditions as the Treasurer specifies.
(3.) Where a guarantee is subject to conditions and it appears to the Treasurer that any of those conditions have not been observed, he may revoke the guarantee, and, upon notice in writing of the revocation of the guarantee being given to the banking corporation to which the guarantee was given, the Treasurer and the Commonwealth shall be relieved of all liability under the guarantee.
(4.) The Treasurer may pay, out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, any amounts which become due and payable under any guarantee given by him in pursuance of this Act.
Overview
The Wheat Pool Advances Act 1923 was enacted to address the financial challenges faced by wheat marketing schemes during the period leading up to the 1924 harvest. The Act was passed by the Parliament of Australia with the intention of supporting wheat producers by facilitating necessary financial arrangements with banking corporations. The primary objective of this legislation was to enable the Treasurer of the Commonwealth to guarantee advances and overdrafts for wheat pool associations, thereby ensuring that these associations could secure the necessary funds to manage the marketing of Australian wheat. This guarantee was intended to mitigate the financial risks faced by wheat marketing schemes and support the stability of the wheat industry during a critical period.
Scope and Application
The Wheat Pool Advances Act 1923 applies to associations of persons established to control a scheme for the marketing of Australian wheat, particularly those concerning the wheat harvest for the financial year ending on 30 June 1924. The Act allows the Treasurer of the Commonwealth to guarantee repayments of advances or overdrafts made to these associations by banking corporations to finance their marketing schemes, with a maximum guarantee of three shillings and eight pence per bushel of wheat marketed under the scheme. The guarantee may be subject to specific conditions set by the Treasurer, and failure to meet these conditions can result in the revocation of the guarantee, thereby relieving the Treasurer and the Commonwealth of any liability. The Act extends its jurisdictional reach to the Commonwealth level, with the Treasurer's authority to guarantee the repayments coming from the Consolidated Revenue Fund. This Act does not explicitly provide for extensions or restrictions of its application through subordinate instruments, but the Treasurer's discretion in setting conditions and revoking guarantees indicates a certain level of flexibility in its implementation.
Key Provisions
The Wheat Pool Advances Act 1923 (section 2(1)) provides the authority for the Treasurer of the Commonwealth to guarantee the repayment of advances or the settlement of overdrafts made by banking corporations to associations formed for the marketing of Australian wheat. This guarantee applies specifically to schemes intended for the financial year ending June 30, 1924, and is limited to a maximum of three shillings and eight pence per bushel of wheat marketed under the scheme. The guarantee can be issued provided the association has arranged for the advance or overdraft with a banking corporation in connection with the financing of the marketing scheme.
The Act imposes certain obligations on the parties involved. The Treasurer has the discretion to set conditions for any guarantee issued under this Act (section 2(2)). If these conditions are not met, the Treasurer has the authority to revoke the guarantee (section 2(3)). Upon revocation, notice must be given in writing to the banking corporation, which relieves both the Treasurer and the Commonwealth of any liability under the guarantee. Additionally, the Treasurer is mandated to pay any amounts due under the guarantee from the Consolidated Revenue Fund, which is appropriated for this purpose (section 2(4)).
Failure to adhere to the conditions set by the Treasurer for the guarantee can lead to serious consequences. If the Treasurer finds that any of the specified conditions have not been observed, they have the power to revoke the guarantee entirely (section 2(3)). This revocation absolves both the Treasurer and the Commonwealth from any future liabilities under the guarantee once the banking corporation is notified in writing of the revocation. Additionally, section 2(4) ensures that the Treasurer can use funds from the Consolidated Revenue Fund to cover any amounts that become due under the guarantee, reinforcing the financial responsibility of the Commonwealth in this arrangement.
Breaches of the conditions specified by the Treasurer for the guarantee can result in the revocation of the guarantee, thus relieving the Treasurer and the Commonwealth of any liability under it. While the Act does not explicitly state penalties for non-compliance beyond the revocation of the guarantee, the potential financial implications for the banking corporations involved could be significant. The maximum financial exposure is inherently limited to the amount guaranteed per bushel of wheat marketed under the scheme, ensuring that the Commonwealth’s liability remains controlled.