Commonwealth Numbered Acts

SUGAR AGREEMENT ACT 1985 No. 6, 1985 - SCHEDULE

                                    SCHEDULE                           Section 4

SUGAR AGREEMENT 1984 AN AGREEMENT made this 28 day of June 1984 between THE
COMMONWEALTH OF AUSTRALIA (in this agreement called "the Commonwealth") of the
one part, and THE STATE OF QUEENSLAND (in this agreement called "the State")
of the other part.

WHEREAS: (A) by various agreements made between the Commonwealth and the State
as varied or extended from time to time by agreements supplemental thereto,
provision has been made, amongst other things, for the State to make sugar and
other sugar products available during the agreed periods, at the prices and
upon the terms and conditions respectively specified in the agreements; and
(B) the Commonwealth and the State desire to make further provision, amongst
other things, for the State to make sugar and other products available during
the period which commences on the 1st July 1984 and ends on the 30th June 1989
and for the prices at which and the terms and conditions upon which the sugar
and other products will be made available.

NOW IT IS HEREBY AGREED as follows: Definitions
1. (1) In this agreement, unless the contrary intention appears - "Consumer
Price Index" means the index in respect of a quarter based upon all groups of
consumer price index numbers for the weighted average of eight capital cities
as published in the Australian Bureau of Statistics Catalogue Number 6401.0
entitled "Consumer Price Index"; "half year" means a period of six months
within the agreed period commencing on the 1st January or the 1st July;
"maximum price" means the maximum price applying in respect of a half year to
a grade of sugar as determined in accordance with the provisions of clause 6;
"movement in Consumer Price Index" means the movement (if any) between the
Consumer Price Index for any quarter being the first three months of a half
year and that for the quarter being the first three months of the next
succeeding half year; "movement in maximum price" means the movement (if any)
between the maximum price for any half year and that for the next succeeding
half year; "quarter" means a period of three months ending on either the 31st
March, 30th June, 30th September or 31st December; "the agreed period" means
the period commencing on the 1st July 1984 and ending on the 30th June 1989;
"the ESC" means the Export Sugar Committee established under clause 8; "the
Minister" means the Minister for Primary Industry of the Commonwealth or such
other Minister as may be nominated in writing by the Prime Minister for the
purpose of the administration of this agreement; "the Sugar Agreement 1979"
means the Agreement made between the Commonwealth and the State on the 1st
October 1979; and "the Sugar Board" means the Sugar Board established under
the Sugar Acquisition Act 1915-1982 of the State of Queensland.

(2) Where in this agreement, a Minister of the Commonwealth is referred to,
the reference includes a Minister of the Commonwealth who is for the time
being acting for and on behalf of the Minister to whom the reference relates.

(3) A reference in this agreement to a department or an authority of the
Commonwealth or the State shall, in the event that at any time the name of the
department or authority referred to be changed or the relevant functions of
the department or authority referred to are allocated to another department or
authority, be read as a reference to the department or authority under its
changed name or to the department or authority to which those functions are
allocated, as the case may be.

(4) Unless a contrary intention appears, a reference in this agreement to a
clause is to the relevant clause of this agreement and a reference to a
sub-clause is to the relevant sub-clause of the clause specified in that
reference or if no clause is so specified then to the sub-clause of the clause
in which the reference appears.

(5) Words importing the masculine gender include the feminine.

Commencement
2. This agreement shall come into operation on the 1st July 1984.

Completion of Sugar Agreement 1979
3. (1) Any obligation or function of the Export Sugar Committee established
under clause 12 of the Sugar Agreement 1979 that has arisen under that
agreement and remains unfulfilled or unperformed at the commencement of this
agreement shall be fulfilled or performed by the ESC in all respects as if the
ESC were the Export Sugar Committee established under the Sugar Agreement
1979.

(2) The Fruit Industry Sugar Concession Committee established under clause 9
of the Sugar Agreement 1979 shall without prejudice to any obligation or
function arising under that Agreement furnish to the Minister as soon as
practicable a report upon the completion of all business not covered or
occurring after that covered in the report furnished for the purposes of
clause 11 of that Agreement in respect of the year ending on the 30th June
1984.

Acquisition of Raw Sugar Grown in Queensland
4. The State shall under its statutory powers in that behalf acquire all raw
sugar manufactured from sugar cane grown in Queensland during the seasons of
1984-85, 1985-86, 1986-87, 1987-88 and 1988-89 other than such quantity of raw
sugar, not exceeding one per centum of the total quantity of raw sugar
manufactured during each of the said seasons in any mill where raw sugar is
manufactured, as the owner of any such mill shall desire to retain, use and
dispose of for consumption in his mill district.

Purchase of Raw Sugar Grown in New South Wales
5. The State shall purchase all raw sugar manufactured from sugar cane grown
in New South Wales during the seasons of 1984-85, 1985-86, 1986-87, 1987-88
and 1988-89.

Sugar Supply and Prices
6. (1) The State shall during the agreed period make sugar and other sugar
products available for sale at Australian refineries and at suitable
distribution centres in Darwin, Hobart and Launceston, under payment terms
determined by the Sugar Board, at prices not exceeding, in respect of grades
of sugar or sugar products, the maximum prices for those grades of sugar or
those sugar products fixed by or ascertained in accordance with this clause.

(2) In respect of the half year commencing on 1st July 1984 -

   (a)  the maximum price for refined bulk sugar of manufacturers grade, for
        such minimum delivery quantity as is determined by the Sugar Board for
        payment within 14 days of delivery, is $508.00 per tonne; and

   (b)  maximum prices for other manufacturers grade sugar, other grades of
        sugar, and golden syrup and treacle shall be fixed at amounts which
        vary from the maximum price fixed in paragraph (a) for refined bulk
        sugar of manufacturers grade to, but only to, the extent of the
        proportionate value of sugar in the respective products and in so far
        as costs of refinding, packaging, storing and delivery of the products
        at refinery, or, in the case of supply in Darwin, Hobart and
        Launceston, at suitable distribution centres, exceed or are less than
        the equivalent costs for refined bulk sugar of manufacturers grade.

(3) In respect of each half year following that referred to in sub-clause (2),
the maximum price for refined bulk sugar of manufacturers grade shall subject
to sub-clause (5) be calculated by the formula P(0.5C + 0.5W) where -
P is the maximum price per tonne of refined bulk sugar of manufacturers grade
applicable under this clause at the end of the half year immediately preceding
the half year in question.

C is the ratio of the Consumer Price Index for -

   (a)  where the half year in question commences on the 1st January - the
        quarter ending on the 30th September immediately prior thereto
        compared with that of the quarter ending on the 31st March immediately
        prior thereto; and

   (b)  where the half year in question commences on the 1st July - the
        quarter ending on the 31st March immediately prior thereto compared
        with that of the quarter ending on the 30th September immediately
        prior thereto; and
W is the ratio of the average f.o.b. equivalent of the daily spot market
quotation under Contract 6 for raw sugar on the London Terminal Market
expressed in United States dollars per metric tonne for -

   (a)  where the half year in question commences on the 1st January - the six
        months ending on the 30th September immediately prior thereto compared
        with that of the six months ending on the 31st March immediately prior
        thereto; and

   (b)  where the half year in question commences on the 1st July - the six
        months ending on the 31st March immediately prior thereto compared
        with that for the six months ending on the 30th September immediately
        prior thereto.

(4) For the purposes of sub-clause (5) -

   (a)  where a movement in maximum price involves an increase which when
        expressed as a percentage exceeds the movement in Consumer Price Index
        in respect of the same half years when expressed as a percentage - the
        movement in maximum price shall be deemed to be that which when
        expressed as a percentage is equal to the percentage of the movement
        in Consumer Price Index; and

   (b)  where a movement in maximum price involves a decrease - there shall be
        deemed to be no movement in maximum price.

(5) If the maximum price remains constant during a period of three consecutive
half years the maximum price to apply in respect of the next succeeding half
year shall be calculated in accordance with the formula P(0.5 + 0.5C) where P
and C have the same definitions as in sub-clause (3).

(6) The maximum prices of all grade of sugar other than refined bulk sugar of
manufacturers grade and of golden syrup and treacle shall be calculated in
respect of each half year following that referred to in sub-clause (2) at
amounts which may vary from the maximum price calculated in respect of the
same half year for refined bulk sugar of manufacturers grade only to the
extent permitted in sub-clause (2)(b).

Hobart Sugar Depot
7. The State, if and when requested by the Commonwealth, shall establish a
sugar depot at Hobart but the Commonwealth shall not make such a request
unless the request be accompanied by evidence proving that a general shortage
of sugar has occurred in Hobart which is due to wholesale merchants in Hobart
or the Sugar Board failing to adhere to present arrangements whereby special
reserve stocks of sugar are supplied to and held by such merchants.

The Export Sugar Committee
8. (1) For the purposes of this agreement there shall be a committee to be
known as the Export Sugar Committee.

(2) The members of the ESC shall be appointed by the Minister and shall
consist of one representative of each of the following -

   (a)  the Department of Primary Industry of the Commonwealth;

   (b)  the Sugar Board; and

   (c)  the manufacturers of exported products containing sugar.

(3) The representative of the Department of Primary Industry of the
Commonwealth shall be Chairman of the ESC.

(4) The representative of the manufacturers of exported products containing
sugar shall be nominated in a manner approved by the Minister.

Deputy Members
9. (1) A member of the ESC may, with the approval of the Minister, appoint a
person to be his deputy.

(2) A member may revoke the appointment of a person as his deputy, but the
revocation is not effective until the member has given notice of it in writing
to the Minister.

(3) The deputy of a member is entitled to attend a meeting of the ESC in the
absence of the member and, when so attending shall be deemed to be a member
and, if he is the deputy of the Chairman, shall be deemed to be the Chairman.

Functions of the ESC
10. The functions of the ESC shall be -

   (a)  to determine in respect of each month of the agreed period on the
        bases set out in clause 13 the rebates referred to in sub-clause
        12(1);

   (b)  to prescribe the manner and form in which claims may be made by
        exporters and manufacturers for the rebates payable under sub-clause
        12(1);

   (c)  to consider and make recommendations to the State on claims of
        exporters and manufacturers for the rebates payable under sub-clause
        12(1);

   (d)  to determine the Australian cane sugar content of goods exported from
        Australia in such circumstances and applying such criteria as the ESC
        thinks fit;

   (e)  to draw up and publish as the ESC thinks fit rules for determining for
        the purposes of this agreement the date on which manufactured goods or
        exported products were exported from Australia; and

   (f)  to exercise such other powers and do such other acts in connection
        with the export of goods and products containing Australian cane sugar
        or in connection with rebates in respect of such export as this
        agreement provides for it to exercise or do or as the State for the
        purposes of this agreement requests it to exercise or do.

The ESC Fund
11. (1) The State shall create a fund (in this agreement called "the ESC
fund") which shall comprise the total amount remaining in the fund created
under sub-clause 14(1) of the Sugar Agreement 1979 as at the 1st July 1984,
and such further contributions by the State as are required from time to time
during the agreed period to meet the ESC's commitment under sub-clause (2) as
certified by the Chairman of the ESC, provided that the credit balance of the
fund shall not exceed fifty thousand dollars ($50,000).

(2) The ESC shall defray out of the ESC fund the expenses of the ESC including
-

   (a)  administrative expenses;

   (b)  fees of committee members and their deputies;

   (c)  fees of persons commissioned to carry out functions including advice
        and investigations on behalf of the ESC;

   (d)  salaries of staff members;

   (e)  fares, travelling allowances and related direct expenses of committee
        members, deputies, staff members;

   (f)  costs of office rent, printing, stationery and requisites;

   (g)  costs of investigation work; and

   (h)  the cost of such insurance as the ESC thinks fit to arrange, the
        authority of the ESC in which behalf is hereby acknowledged, covering
        all those committee members, deputies and staff members in respect of
        whom the ESC is authorized by this sub-clause to defray travelling
        allowances, against the risk of personal injury or death suffered or
        incurred while engaged or travelling on ESC business.

(3) The amounts of fees and their rates of travelling allowances payable
pursuant to paragraphs (b), (c) and (e) of sub-clause (2) shall be as approved
from time to time by the Minister.

(4) Any funds standing to the credit of the ESC fund after all defrayals in
accordance with sub-clause (2) have been made following the expiry of this
agreement shall be paid to the State unless otherwise agreed between the
Commonwealth and the State.

Rebate on Export of Products Containing Sugar
12. (1) Subject to the provisions of this clause and of clause 14, the State
shall in respect of the Australian cane sugar content, being the content
determined by the ESC in accordance with paragraph (d) of clause 10, of such
manufactured goods, as are determined from time to time by the Minister on the
recommendation of the ESC and are during the agreed period exported from
Australia, pay to the exporter, or if the ESC thinks fit on special grounds,
to the manufacturer instead, a rebate of the amount of the excess, if any, of
the cost of such sugar content over the cost of such sugar content calculated
at the Australian equivalent of the world sugar parity price at the rates
determined from time to time by the ESC in accordance with clause 13.

(2) Where the ESC reports to the State that the circumstances relating to the
destination of particular goods or a particular class of goods upon export are
such as to warrant a reduction of the rebate provided for under sub-clause
(1), the rebate may be reduced by the State by such amounts as the ESC
recommends having regard to those circumstances.

(3) No rebate is payable by the State under sub-clause (1) unless a claim is
lodged with the person for the time being nominated in that behalf by the ESC
within six months after the month of export.

(4) A rebate referred to in sub-clause (1) shall not be payable unless the
exporter or manufacturer claiming the rebate complies with such other
conditions as the ESC imposes, including a condition requiring the exporter
and the manufacturer of the good the subject of the claim to permit any
persons as are for the time being authorized in that behalf by the ESC to take
samples of the good for the ESC and to enter and inspect during reasonable
hours the premises and such books, documents and records of the exporter and
the manufacturer as the ESC may reasonably require to have inspected for the
purposes of this agreement, and to provide reasonable assistance for those
purposes.

(5) The ESC, on request by an exporter or manufacturer in receipt of an export
sugar rebate, shall make available details of the calculation of such rebate
provided that information which the ESC deems to be commercially confidential
need not be released.

World Parity Price for Sugar
13. (1) The Australian equivalent of the world sugar parity price in respect
of Australian cane sugar contained in manufactured goods or products exported
during the agreed period shall be the lower of -

   (a)  the lowest c.i.f. and e. cost in Australia of foreign raw sugar
        semi-refined (i.e. mill white) sugar or refined sugar as may be
        determined by the ESC brought to terms of equality with the grade of
        Australian cane sugar content of such manufactured goods; or

   (b)  the estimated cost, as may be determined by the ESC, of cane sugar in
        Australia based on the price of foreign raw sugar, bulk basis for
        prompt supply as quoted on an internationally recognized sugar
        exchange, brought to a c.i.f. and e. basis at an Australian east coast
        refinery port.

(2) For the purposes of this clause -

   (a)  allowance should be made for loss and deterioration of such sugar in
        transit and for other costs consistent with normal commercial
        practices such as interest, handling charges and delivery;

   (b)  if foreign raw sugar is taken for the purpose of price comparison with
        Australian refined cane sugar, the following items shall be added to
        the c.i.f. and e. cost of foreign raw sugar -

        (i)    Australian refinery costs; and

        (ii)   refinery processing loss;

   (c)  Australian duties of Customs and other Australian taxes shall be
        excluded from calculations;

   (d)  with reference to paragraph (a) of sub-clause (1), the foreign sugar
        submitted for the purpose of price comparison should be reasonably
        obtainable in Australia under normal trading and shipping conditions.

Sugar Rebate Options
14. (1) The ESC may, in such manner and subject to such conditions as it
thinks fit to impose, grant to exporters or manufacturers of manufactured
goods or products containing Australian cane sugar options whereunder such
exporters or manufacturers may elect to accept for periods not exceeding six
months the rates of rebate determined by the ESC in respect of any month.

(2) Where an exporter or manufacturer has been granted an option under
sub-clause (1), any rebate payable under sub-clause 12 (1) shall be calculated
at the rate determined by the ESC for the month selected under the option.

(3) Notwithstanding sub-clause (1) where under the provisions of the Sugar
Agreement 1979, exporters or manufacturers elected to accept a monthly rebate
for a period in excess of 6 months, the ESC shall continue to grant such
rebate for the elected period and under the same conditions as were imposed
under that Agreement.

ESC Annual Report
15. The Chairman of the ESC shall, in respect of each year ending on the 30th
June during the agreed period, as soon as practicable thereafter, furnish to
the Minister a report of the work of the ESC including statements of receipts
and payments by the ESC under this Agreement which have been reported upon by
the Auditor-General for the Commonwealth or by an officer authorised by the
Auditor-General to do so.

Prohibition of Importation of Sugar
16. (1) The Commonwealth shall, until the 30th June 1989 prohibit the
importation of:

   (a)  raw sugar produced from sugar cane;

   (b)  refined sugar crystals of all crystal sizes produced from sugar cane
        or sugar beet;

   (c)  sugar cubes or lumps produced from sugar cane or sugar beet;

   (d)  liquid sugars and invert syrups derived from sugar cane or sugar beet;

   (e)  golden syrup;

   (f)  treacle;

   (g)  sugar and sugar products falling within (a) to (f) which have been
        modified but which remain substitutable for those falling within (a)
        to (f).

(2) Notwithstanding sub-clause (1), those sugar and sugar products referred to
in that sub-clause may be imported if: -

   (a)  in unit sizes not exceeding 5kgs or 5 litres and in consignments not
        exceeding 1 tonne or 1,000 litres;

   (b)  after consultation with the State the Commonwealth considers it
        necessary to meet any deficiency or shortage of sugar products in
        Australia;

   (c)  temporarily landed in Australia for export to a destination outside
        Australia;

   (d)  produced in Australia and returned in their original form; or

   (e)  not available in Australia and required for such special purposes as
        may be approved by the Minister or an authorised officer.

IN WITNESS WHEREOF this agreement has been executed as at the day and year
first above written.

SIGNED on behalf of THE COMMONWEALTH
OF AUSTRALIA by the Honourable JOHN                  JOHN KERIN
CHARLES KERIN, Minister of State for Primary Industry, in the presence of -
JULIENNE McKAY SIGNED on behalf of THE STATE OF QUEENSLAND by the Honourable
NEIL JOHN
TURNER, Minister of State for Primary Industries,    N. J. TURNER
in presence of -
JEFFREY SWIFT J.P.