Commonwealth of Australia Explanatory Memoranda

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WOOL INTERNATIONAL AMENDMENT BILL 2001

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

HOUSE OF REPRESENTATIVES

WOOL INTERNATIONAL AMENDMENT BILL 2001

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Agriculture, Fisheries and Forestry,
the Hon Warren Truss MP)

CONTENTS

WOOL INTERNATIONAL AMENDMENT BILL 2001

1 GENERAL OUTLINE

1.1 The Wool International Amendment Bill 2001 enables the final cash distribution to shareholders and winding up of WoolStock Australia Limited (formerly the statutory authority, Wool International) as soon as practicable after the last stockpile wool is disposed of, rather than after the end of the financial year in which the stockpile sale is completed, as is currently required.
1.2 The Bill achieves the Government’s objectives of returning the surplus equity arising from the sale of stockpile to the shareholders of WoolStock Australia Limited as soon as possible. Early winding up of the company, as the WoolStock Australia Limited Board proposes, will reduce overhead costs and thereby maximise the surplus equity.

Financial Impact Statement

1.3 The Bill does not involve any additional expenditure by the Commonwealth or additional revenue to the Commonwealth.

2. Notes on Clauses

Clause 1 - Short Title

2.1 The Act will be called the Wool International Amendment Act 2001.

Clause 2 - Commencement

2.2 The Act will commence on the day on which it receives the Royal Assent.

Clause 3 - Schedule(s)

2.3 Clause 3 provides for the implementation of amendments to the Wool International Act
1993 as set out in Schedule 1.

3. Schedule 1 – Wool International Act 1993

3.1 Item 1 omits the words “the end of the financial year in which” from paragraph 22P(2)(b), having the effect of allowing WoolStock Australia Limited to make the final distribution to its shareholders as soon as practicable after the last of the stockpile wool has been disposed of. Prior to making the final distribution, WoolStock Australia Limited would need to undertake activities such as preparing its final accounts, having them audited and signed off by its Board. It can then take the necessary steps to wind up its operations.