Commonwealth Numbered Acts

KING ISLAND SHIPPING SERVICE AGREEMENT ACT 1974 No. 149 of 1974 - SCHEDULE

SCHEDULE
Section 3

AN AGREEMENT made the Twenty-sixth day of November One thousand nine hundred
and seventy-four between-

THE COMMONWEALTH OF AUSTRALIA (in this agreement called "Australia") of the
one part, and

THE STATE OF TASMANIA (in this agreement called "Tasmania") of the other part.

WHEREAS-

   (a)  Tasmania has agreed with Australia that a shipping service will be
        conducted by the Transport Commission, Tasmania, between King Island
        and other places in Tasmania or the State of Victoria;

   (b)  Tasmania has arranged, in connexion with the shipping service, the
        purchase of the M.V. "Straitsman" together with additional ship's
        equipment and some forklift trucks and has had the vessel surveyed and
        certain alterations made at an estimated total cost of One million
        four hundred and fifteen thousand dollars ($1,415,000);

   (c)  Tasmania has requested Australia to provide financial assistance to
        the State towards meeting the cost last referred to;

   (d)  the Australian Government has agreed to request the Parliament of
        Australia to authorize the grant of financial assistance to Tasmania
        to the extent and upon the terms and conditions set out in this
        agreement.

NOW IT IS HEREBY AGREED as follows:-

1. In this agreement, unless the contrary intention appears or the context
otherwise requires-



"clause" means clause of this agreement;



"equipment" means the additional equipment for the vessel and the forklift
trucks referred to in Recital (b);



"the Treasurer" means the Australian Treasurer and includes an Australian
Minister of State acting for and on behalf of the Australian Treasurer; and



"the vessel" means the M.V. "Straitsman", after survey and alteration as
hereinbefore recited.

2. This agreement shall have no force or effect and shall not be binding on
either party until it has been approved by the Parliament of Australia.

3. (1) Subject to compliance by Tasmania with the provisions of this
agreement, Australia will, in accordance with and subject to the provisions of
this agreement, provide financial assistance by way of loan to Tasmania for
the purpose of meeting or of reimbursing expenditure in respect of the vessel
and equipment as hereinbefore recited.

(2) The financial assistance to be provided under sub-clause (1) (which is
hereinafter referred to as "the financial assistance") shall not exceed in the
aggregate One million four hundred and fifteen thousand dollars ($1,415,000).

4. Australia will, subject to the provisions of this agreement, make payment
to Tasmania of the financial assistance when so requested by Tasmania.

5. (1) Tasmania shall furnish to the Treasurer such documents and other
evidence to support a request by Tasmania for payment of the financial
assistance as the Teasurer may reasonably request, whether the request by the
Treasurer is made before or after Australia has made that payment.

(2) Any statement of expenditure by Tasmania forwarded to Australia in
connexion with a request for payment of the financial assistance shall be
certified as to its correctness by the Auditor-General of Tasmania.

6. (1) Subject to the provisions of clause 7, Tasmania shall repay to
Australia the amount of the financial assistance by thirty (30) equal
consecutive half-yearly payments.

(2) The first payment by Tasmania under sub-clause (1) of this clause shall be
payable on the 15th June 1975 and subsequent payments shall be payable on each
succeeding fifteenth day of December and fifteenth day of June until the full
amount that is repayable has been paid.

7. Tasmania may at any time, after giving to the Treasurer notice of at least
one month of its intention to do so, repay the whole, or a part not being less
than One hundred thousand dollars ($100,000), of so much of the amount of the
financial assistance as remains unrepaid under clause 6, together with
interest on the amount repaid accrued to the date of payment in accordance
with clause 8.

8. (1) Interest payable by Tasmania to Australia shall accrue on so much of
the amount of the financial assistance as has not for the time being been
repaid calculated from the date on which the payment of the financial
assistance was made by Australia at the rate provided in this clause.

(2) Tasmania shall pay the interest for the time being accrued under this
clause on the fifteenth day of June and the fifteenth day of December in each
year.

(3) The rate at which interest accrues and is payable by Tasmania under this
clause shall be the rate of yield to maturity of the loan of the longer or
longest term of the last loan raising by the Australian Government in
Australia for public subscription prior to the date upon which payment of the
financial assistance was made by Australia.

9. Tasmania shall from time to time at the request of the Treasurer furnish to
him such information as he may reasonably require for the purposes of or in
relation to this agreement.

10. The accounts, books, vouchers, documents and other records of Tasmania
relating to the purchase and to work on the vessel and equipment shall be
subject to audit by the Auditor-General of Tasmania who shall furnish to the
Treasurer a report on the audit and on the financial statements indicating,
inter alia-

   (a)  whether the financial statements are based on proper accounts and
        records and are in agreement with those accounts and records; and

   (b)  whether the expenditure of moneys is in accordance with this
        agreement, and including reference to such other matters arising out
        of the audit and financial statements as the Auditor-General of
        Tasmania considers should be reported to the Treasurer.

11. Any notice, request or other communication given or made to Tasmania for
the purposes of this agreement on behalf of Australia or by the Treasurer
shall be a sufficient notice if it is in writing signed by the Treasurer or a
person authorized in writing by him, and any notice, application, request or
other communication given or made to Australia or to the Treasurer for the
purposes of this agreement on behalf of Tasmania shall be a sufficient notice
if it is in writing signed by the appropriate Tasmanian Minister or any person
authorized in writing by him.

IN WITNESS WHEREOF this agreement has been executed on behalf of the
respective parties as at the day and year first above written.

SIGNED by the Honourable EDWARD GOUGH WHITLAM, Prime Minister of Australia,
in the presence of-        E.  G.  WHITLAM


D. H. SOLOMON

SIGNED by the Honourable ERIC ELLIOTT REECE, Premier of Tasmania, in the
presence of-                ERIC  REECE


K. J. BINNS
Under Treasurer
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