Wool Industry Act 1971

Overview

The Wool Industry Act 1971 was enacted by the Australian Parliament to address the need for financial support for the Australian Wool Board in the management and operation of wool-selling centres. This legislation was a direct response to the economic challenges faced by the wool industry during that period, aiming to ensure the stability and growth of the sector. The Act amends the existing Wool Industry Act 1962–1970 by empowering the Commonwealth to guarantee the repayment of loans made to the Australian Wool Board, thus providing a financial safety net for the Board's activities related to wool sales. The policy objective of the Act is to facilitate the effective functioning of wool-selling centres by ensuring that the Board has access to necessary financial resources, thereby supporting the broader wool industry in Australia.

Scope and Application

The Wool Industry Act 1971 applies to the Commonwealth of Australia and empowers the Treasurer to guarantee the repayment of loans to the Australian Wool Board in connection with wool-selling centres. The Act specifically amends the Wool Industry Act 1962–1970 by enabling the Treasurer, with the concurrence of the Minister, to guarantee both the repayment of loans and the payment of interest on those loans taken by the Board for the purposes of its functions, particularly in relation to the management and operation of wool-selling centres. The legislation comes into operation from the date of receiving the Royal Assent. The Act focuses on financial support mechanisms for the Australian Wool Board to ensure the smooth operation of wool-selling centres, a crucial component of the wool industry in Australia.

Key Provisions

The Wool Industry Act 1971 primarily serves to empower the Commonwealth to guarantee the repayment of loans to the Australian Wool Board in connection with wool-selling centres. This is achieved through an amendment to the Wool Industry Act 1962-1970, as outlined in section 3 of the new Act. Specifically, section 33 of the 1962-1970 Act is amended by inserting a new subsection (1b), which allows the Treasurer, with the concurrence of the Minister, to guarantee the repayment of loans and the payment of interest on those loans. This is intended to support the Board's function related to wool-selling centres, as referenced in section 24 of the Act. Under the amended Act, the obligations of the Commonwealth involve ensuring that loans made to the Australian Wool Board are repaid and that interest on these loans is paid. This obligation is explicitly stated in the newly inserted subsection (1b) of section 33, which requires the Treasurer, in collaboration with the Minister, to provide the necessary guarantees. This arrangement is designed to facilitate the financial stability of the Board, thereby enabling it to effectively carry out its functions. The Act does not explicitly state any offences, penalties, or consequences for breach. However, it is implicit that any failure to meet the obligations set out in the amended section 33 could lead to financial instability for the Australian Wool Board, potentially affecting its ability to operate wool-selling centres and fulfill its statutory functions. The consequences of such a breach would likely be financial rather than criminal, as the Act focuses on guaranteeing loans and the payment of interest. Overall, the Wool Industry Act 1971 is a legislative tool to ensure the financial backing of the Australian Wool Board through the Commonwealth's guarantee of loan repayments and interest. By doing so, it aims to maintain the operational stability of wool-selling centres, which are crucial to the wool industry in Australia.