WHEAT MARKETING ACT 1989No. 58, 1989 - SECT 78 Commonwealth to underwrite certain borrowings

WHEAT MARKETING ACT 1989No. 58, 1989 - SECT 78

78. (1) If, when a borrowing under subsection 77 (1) becomes due for
repayment, the amount of the Board's liability under the borrowing exceeds the
amount of money available to the Board for the repayment of the borrowing, the
Commonwealth shall pay to the Board the amount of the excess.

(2) Subsection (1) has effect subject to subsection (4).

(3) For the purposes of subsection (1):

   (a)  money in the Fund shall not be regarded as money available to the
        Board for the repayment of a borrowing; and

   (b)  money representing revenue attributable to the disposal of wheat of
        one season shall not be regarded as money available to the Board for
        the repayment of a borrowing relating to wheat of another season.

(4) The total amount paid under subsection (1) in respect of borrowings
relating to pool return wheat of a particular season shall not exceed the
appropriate percentage of the aggregate estimated net pool return from the
disposal by the Board of that wheat.

(5) The Minister shall determine, in writing, the aggregate estimated net
pool return from wheat of a season.

(6) A copy of a determination (including a determination varying or revoking a
determination) shall be published in the Gazette.

(7) A determination may only be made during the season to which it relates.

(8) The Minister shall so exercise the power to make determinations that:

   (a)  the first determination in relation to a season is made before 1
        October in that season; and

   (b)  at least one further determination is made, being a determination made
        on a day as near as practicable to 1 March in that season.

(9) The Minister shall not exercise the power:

   (a)  to revoke a determination and make a new determination; or

   (b)  to vary a determination; in such a way as to reduce the amount of the
        aggregate estimated net pool return already determined in relation to
        a season.

(10) The aggregate estimated net pool return from wheat of a season shall be
determined according to the formula:
ETR - ETC where:
  ETR     is the amount estimated by the Minister as the total of the revenue

that will be attributable to the sale or disposal of wheat of that
season;
  ETC     is the amount estimated by the Minister as the total of the costs
that will be attributable to the purchase, sale or disposal of wheat of
that season.

(11) Without limiting the meaning of subsection (10), in estimating the amount
represented by the factor ETR for the purpose of subsection (10), the Minister
shall treat as revenue:

   (a)  money received under a policy of insurance relating to wheat or its
        sale; and

   (b)  interest earned by the investment of money derived from the sale or
        disposal of wheat or from the investment of money borrowed by the
        Board.

(12) Without limiting the meaning of subsection (10), in estimating the amount
represented by the factor ETC for the purpose of subsection (10), the Minister
shall treat as costs:

   (a)  the cost of buying wheat, other than pool return wheat, for sale or
        disposal by the Board;

   (b)  money required to be credited to the Fund in respect of the use of
        money from the Fund; and

   (c)  bad debts.

(13) In making a determination, the Minister shall have regard to any advice
or information given to him or her by the Board or the Australian Bureau of
Agricultural and Resource Economics.

(14) The appropriate percentage is:

   (a)  for the season commencing on 1 July 1989-90%;

   (b)  for the season commencing on 1 July 1990-87.5%;

   (c)  for the season commencing on 1 July 1991-85%;

   (d)  for the season commencing on 1 July 1992-82.5%; and

   (e)  for the season commencing on 1 July 1993-80%.

(15) Borrowings in relation to which the Commonwealth is liable to make a
payment under subsection (1) shall be discharged before other borrowings of
the Board under section 77.

(16) In making an estimate for the purpose of subsection (10), the Minister
shall not:

   (a)  make any deduction from revenue for money paid into a reserve account
        under subsection 73 (2); or

   (b)  treat as a cost the payment of an amount into such an account.

(17) Payments under subsection (1) shall be made out of the Consolidated
Revenue Fund, which is appropriated accordingly.

(18) This section ceases to be in force when the last pool that includes wheat
of the season commencing on 1 July 1993 is closed.

(19) When this section ceases to be in force, it shall be regarded, for the
purposes of section 8 of the Acts Interpretation Act 1901, as having been
repealed by an Act other than this Act.