WOOL MARKETING (LOAN) ACT 1974
No. 58 of 1974
An Act to authorize certain Advances to the Australian Wool Corporation and to authorize the Borrowing of certain Moneys by the Treasurer.
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 Wool Marketing (Loan) Act 1974.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Definition.
3. In this Act, “the Corporation” means the Australian Wool Corporation.
Loans to Australian Wool Corporation.
4 (1) The Treasurer may, on such terms and conditions as he determines, for the purposes of enabling the purchase of wool by the Corporation at auction or by tender and the payment of advances by the Corporation to growers the marketing of whose wool has been delayed by reason of the exercise of the powers and functions of the Corporation, make advances to the Corporation, by way of loan, of such amounts, not exceeding in the aggregate $150,000,000, as the Treasurer determines.
(2) Sub-section 28(3) of the Wool Industry Act 1972-1973 does not apply to moneys appropriated by the Parliament for the purpose of making advances to the Corporation under sub-section (1) or to amounts paid by the Corporation to Australia in repayment of such advances.
Payments to be made out of Consolidated Revenue Fund or Loan Fund.
5. Payments to the Corporation under this Act may be made out of the Consolidated Revenue Fund or the Loan Fund.
Authority to borrow.
6. The Treasurer may, during the period commencing on the date of commencement of this Act and ending on 30 June 1975, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911-1973, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the aggregate $150,000,000.
Application of moneys borrowed.
7. Moneys borrowed under section 6 shall be issued and applied only for the expenses of borrowing, for the purpose of making advances to the Corporation under this Act and for the purpose of making payments to the Consolidated Revenue Fund in accordance with section 8.
Reimbursement of Consolidated Revenue Fund from Loan Fund.
8. (1) Where an amount has been paid out of the Consolidated Revenue Fund under this Act, the Treasurer may authorize the payment to that Fund, out of the Loan Fund, of an amount not exceeding the amount so paid.
(2) In any statement of the receipts and expenditure, or of the expenditure, of the Consolidated Revenue Fund prepared by the Treasurer under section 49 or 50 of the Audit Act 1901-1973, amounts paid to the Consolidated Revenue Fund under sub-section (1) of this section shall not be shown as receipts of that Fund but shall be shown as having reduced the total of the amounts expended from that Fund under this Act.
(3) Where there has been a payment from the Loan Fund to the Consolidated Revenue Fund under sub-section (1) in respect of an amount paid out of the Consolidated Revenue Fund under this Act, the amount so paid out of the Consolidated Revenue Fund, shall, for the purposes of sections 9 and 10 of the National Debt Sinking Fund Act 1966-1967, be deemed to have been paid out of the Loan Fund.
Appropriation.
9. The Consolidated Revenue Fund and the Loan Fund are appropriated as necessary for the purposes of this Act.
Overview
The Wool Marketing (Loan) Act 1974 was enacted by the Parliament of Australia to provide financial support to the Australian Wool Corporation (AWC). This Act was introduced to address the need for financial assistance to the AWC in enabling the purchase of wool and the timely payment of advances to wool growers. The Act authorises the Treasurer to make loans to the AWC up to a total of $150 million for these purposes. Additionally, the Act allows for the borrowing of funds by the Treasurer to facilitate these loans, with the repayment of such funds being managed through the Consolidated Revenue Fund and the Loan Fund. The policy objective of this Act is to ensure the financial stability of the AWC, thereby supporting the wool industry and its stakeholders.
Scope and Application
The Wool Marketing (Loan) Act 1974 applies to the Treasurer of Australia and the Australian Wool Corporation, allowing the Treasurer to provide loans to the Corporation for specific purposes, such as enabling the purchase of wool by the Corporation and making advances to growers whose marketing of wool has been delayed due to the Corporation’s activities. The Act’s jurisdictional reach is Commonwealth-wide, and it extends to the activities and transactions of the Australian Wool Corporation as defined under this Act. The Act authorises the Treasurer to make advances not exceeding $150,000,000, and it also allows the Treasurer to borrow moneys not exceeding $150,000,000 to fund these activities, with the borrowing period limited to the period from the commencement of the Act to 30 June 1975. Moneys borrowed are to be used for the expenses of borrowing, making advances to the Corporation, and reimbursing the Consolidated Revenue Fund. Payments to the Corporation under this Act can be made from either the Consolidated Revenue Fund or the Loan Fund, with the latter being reimbursed by the former as specified. The Act does not apply to moneys appropriated by Parliament for the purposes of making advances under section 4 or to amounts paid by the Corporation to Australia in repayment of such advances.
Key Provisions
The Wool Marketing (Loan) Act 1974 (Act) primarily concerns the authorisation of loans and borrowings by the Treasurer on behalf of the Australian Wool Corporation (section 1). Specifically, section 4(1) allows the Treasurer to provide loans to the Corporation for the purchase of wool and for advances to growers affected by delays in wool marketing. Section 4(2) excludes certain financial constraints stipulated in the Wool Industry Act 1972-1973 regarding the funds appropriated for these purposes. Payments to the Corporation under this Act are authorised to be made from either the Consolidated Revenue Fund or the Loan Fund (section 5). Furthermore, the Act allows the Treasurer to borrow up to $150,000,000 within a specific period (section 6). These borrowed funds must be used for borrowing expenses, advances to the Corporation, and payments to the Consolidated Revenue Fund (section 7). Reimbursement of the Consolidated Revenue Fund from the Loan Fund is also regulated under section 8, detailing the accounting treatment for such transactions.
The Act imposes several obligations on the parties involved. The Treasurer is obligated to provide loans to the Corporation under the terms and conditions they determine (section 4). They must also ensure that the borrowed funds are used strictly for the purposes outlined in section 7. Additionally, the Treasurer is responsible for reimbursing the Consolidated Revenue Fund from the Loan Fund as per section 8, and they must ensure proper accounting practices are followed in financial statements. The Australian Wool Corporation must use the funds provided for the specific purposes mentioned in section 4, such as purchasing wool and making payments to growers.
Breaches of the provisions of this Act could result in civil or criminal consequences. Although the Act does not explicitly detail penalties for breaches, the general legal framework of Australian legislation may apply. Civil penalties could include fines or restitution, while criminal penalties might involve imprisonment, depending on the severity and intent behind the breach. The maximum penalties, if applicable, would be determined by other relevant legislation governing financial and administrative law in Australia.