Wool Industry Amendment Act 1984

Overview

The Wool Industry Amendment Act 1984 was enacted to amend the Wool Industry Act 1972, addressing specific gaps and issues in the regulation of the wool industry. The Act was introduced to provide a more flexible framework for the Commonwealth Wool Equalisation Board to borrow money and deal with securities, while also removing certain outdated provisions. The Act was passed by the Queen, with the assent of the Senate and the House of Representatives of the Commonwealth of Australia. The policy objective of this amendment was to allow the Corporation to raise funds through borrowing and securities dealing more effectively, while ensuring proper oversight and control over such activities. The Wool Industry Amendment Act 1984 introduced amendments to the definition of securities, expanded the types of transactions that the Corporation could undertake, and clarified the conditions under which the Corporation could borrow money or deal with securities. The Act also provided for the Treasurer to guarantee repayments and interest on borrowed funds and allowed the Corporation to give security over its assets for the repayment of moneys borrowed or otherwise raised. The Act repealed section 72 of the Principal Act, which had become obsolete and was no longer relevant to the current needs of the wool industry.

Scope and Application

The Wool Industry Amendment Act 1984 applies to the Commonwealth and the operations of the Wool Corporation of the Commonwealth, established under the Wool Industry Act 1972. The Act amends the Principal Act by modifying the Corporation's authority to raise moneys, specifically allowing borrowing and dealing with securities with the approval of the Minister. This includes borrowing moneys through means other than dealing with securities or borrowing and raising moneys by dealing with securities, subject to Ministerial approval. The Act also allows the Treasurer to guarantee the repayment of amounts borrowed and the payment of interest, or to guarantee the payment of any moneys the Corporation is liable to pay in respect of dealing with securities. The Corporation is permitted to give security over its assets for the repayment of moneys borrowed and the payment of moneys it is liable to pay in respect of dealing with securities. The Act specifies that the Corporation shall not borrow or otherwise raise moneys except in accordance with the provisions outlined in the Act. The geographic reach of this legislation is national, applying throughout the Commonwealth of Australia. The Act does not explicitly state any exclusions or exemptions, nor does it mention the extension or restriction of its application through subordinate instruments.

Key Provisions

The Wool Industry Amendment Act 1984 (the Act) amends the Wool Industry Act 1972 (the Principal Act) primarily by altering the provisions regarding the raising of funds by the Corporation (section 4). Under the new provisions, the Corporation can borrow money either through methods other than dealing with securities (section 26(1)(a)) or by dealing with securities (section 26(1)(b)), subject to the approval of the Minister (section 26(1)). The borrowing of funds can be subject to terms and conditions as approved by the Minister (section 26(2)), and this approval can pertain to specific borrowings or specified classes of borrowings (section 26(3)). Furthermore, the Act allows for the Treasurer to guarantee the repayment of borrowed funds and the payment of interest (section 26(5)), and to determine that the repayment of borrowed funds and interest, or payments related to securities, are guaranteed by the Commonwealth (section 26(6)). The Corporation can also provide security over its assets for the repayment of borrowed funds and related payments (section 26(8)). The Act strictly mandates that the Corporation must only borrow or raise funds in accordance with these provisions (section 26(9)). The obligations and requirements imposed by the Act on the Corporation are stringent. The Corporation must seek approval from the Minister for any borrowing of funds, whether through non-securities or securities-based methods (section 26(1)). If the Corporation chooses to borrow through securities, it must comply with the terms and conditions set by the Minister (section 26(2)). Additionally, the Corporation must ensure that any borrowing or raising of funds is done in strict adherence to the provisions outlined in section 26 of the Act (section 26(9)). Failure to comply with these requirements could result in the Corporation being unable to legally borrow or raise funds, thereby impacting its ability to perform its functions. The Act also outlines consequences for non-compliance. While the Act does not explicitly state civil or criminal penalties for breach, the strict adherence to the outlined borrowing and fund-raising provisions suggests that failure to comply could result in legal repercussions. Given the critical nature of the Corporation's functions, any deviation from the prescribed methods of borrowing or raising funds could potentially lead to significant legal consequences. The Corporation must therefore ensure meticulous compliance with the Act to avoid any adverse outcomes.