Commonwealth Numbered Acts

WHEAT MARKETING AMENDMENT ACT 1997 NO. 194 OF 1997 - SCHEDULE 1--Amendments

Primary Industries and Energy Research and Development Act 1989

1 Subsection 4(1) (paragraph (a) of the definition of research component )

After " Wheat Industry Fund Levy Act 1989 ", insert "during a season (within the meaning of the Wheat Marketing Act 1989 ) that began before 1 July 1999".

2 At the end of subsection 5(4)

Add "during a season that began before 1 July 1999".

3 Subsection 5(5)

Before "is declared", insert "during a season that began before 1 July 1999".

Primary Industries Levies and Charges Collection Act 1991

4 Subsection 27(2)

Omit "certificates", substitute "statements".

Wheat Marketing Act 1989

5 Subsection 3(1)

Insert:

constitution , in relation to a company, has the same meaning as in the Corporations Law.

6 Subsection 3(1)

Insert:

designated company means:

(a) nominated company A; or

(b) a wholly-owned subsidiary of nominated company A.

Insert:

new season wheat means wheat of a season that began on or after 1 July 1997.

8 Subsection 3(1)

Insert:

nominated company means:

(a) nominated company A; or

(b) nominated company B; or

(c) nominated company C.

Insert:

nominated company A has the meaning given by section 55D.

10 Subsection 3(1)

Insert:

nominated company B has the meaning given by section 55F.

11 Subsection 3(1)

Insert:

nominated company C has the meaning given by section 55H.

12 Subsection 3(1)

Insert:

objects , in relation to a company, has the same meaning as in the Corporations Law.

13 Subsection 3(1)

Insert:

old season wheat means wheat of a season that began before 1 July 1997.

14 Subsection 3(1)

Insert:

wholly-owned subsidiary has the meaning given by section 3A.

15 After section 3

Insert:

3A Wholly-owned subsidiary For the purposes of this Act, a body corporate (the first body ) is a wholly-owned subsidiary of another body corporate (the second body ) if, and only if:

(a) the first body has a share capital; and

(b) there is no share in the first body that is not beneficially owned by the second body.

Insert:

Part 3A--Nominated companies and their subsidiaries Division 1--Simplified outline 55A Simplified outline The following is a simplified outline of this Part (when read together with related provisions of this Act):

* The first step towards the new structure for the Australian Wheat Board will be the establishment of the following companies (the designated companies ) to take over the commercial activities of the Board:

(a) a wholly-owned subsidiary of the Board (in this Act called nominated company A );

(b) a number of wholly-owned subsidiaries of nominated company A.

* The main wholly-owned subsidiaries of nominated company A are in this Act called nominated company B and nominated company C .

* Nominated company A's role includes borrowing for the purposes of on-lending to other designated companies.

* Nominated company B's role is to conduct pooling and marketing of new season wheat.

* Nominated company C's role includes trading in wheat and other grains.

* The constitution of a nominated company must not be altered without the approval of the Minister.

* A person must not be appointed as a director of a designated company without the approval of the Minister.

* A designated company must not acquire certain securities or enter into certain joint business ventures without the approval of the Minister.

* State laws may confer powers or functions on designated companies.

Division 2--Declaration of nominated companies 55B Nominated company A to be declared as soon as practicable The Board and the Minister must take all reasonable steps to ensure that, as soon as practicable after the commencement of this section, a company is declared under section 55D to be nominated company A.

55C Formation of nominated company A (1) The Board may, with the written permission of the Minister:

(a) arrange for the formation of a company; or

(b) acquire shares in a company that has not yet traded.

(a) the Minister proposes to declare the company to be nominated company A; and

(b) the company is, or is to be, incorporated under the Corporations Law; and

(c) the company has, or is to have, a share capital; and

(d) the company is to be a wholly-owned subsidiary of the Board.

(2) At the time of the making of the declaration, the company must:

(a) be incorporated under the Corporations Law; and

(b) have a share capital; and

(c) be a wholly-owned subsidiary of the Board.

(4) A copy of the declaration is to be published in the Gazette within 14 days after the making of the declaration.

(5) If:

(a) a declaration is in force under this section in relation to a company; and

(b) the company:

(i) ceases to be incorporated under the Corporations Law; or

(ii) ceases to have a share capital; or

(iii) ceases to be a wholly-owned subsidiary of the Board;

55E Nominated company B to be declared as soon as practicable The Board, nominated company A and the Minister must take all reasonable steps to ensure that, as soon as practicable after the commencement of this section, a company is declared under section 55F to be nominated company B.

55F Nominated company B (1) The Minister may, by writing, declare that a specified company is nominated company B for the purposes of this Act.

(2) At the time of the making of the declaration, the company must:

(a) be incorporated under the Corporations Law; and

(b) have a share capital; and

(c) be a wholly-owned subsidiary of nominated company A.

(4) A copy of the declaration is to be published in the Gazette within 14 days after the making of the declaration.

(5) If:

(a) a declaration is in force under this section in relation to a company; and

(b) the company:

(i) ceases to be incorporated under the Corporations Law; or

(ii) ceases to have a share capital; or

(iii) ceases to be a wholly-owned subsidiary of nominated company A;

55G Nominated company C to be declared as soon as practicable The Board, nominated company A and the Minister must take all reasonable steps to ensure that, as soon as practicable after the commencement of this section, a company is declared under section 55H to be nominated company C.

55H Nominated company C (1) The Minister may, by writing, declare that a specified company is nominated company C for the purposes of this Act.

(2) At the time of the making of the declaration, the company must:

(a) be incorporated under the Corporations Law; and

(b) have a share capital; and

(c) be a wholly-owned subsidiary of nominated company A.

(4) A copy of the declaration is to be published in the Gazette within 14 days after the making of the declaration.

(5) If:

(a) a declaration is in force under this section in relation to a company; and

(b) the company:

(i) ceases to be incorporated under the Corporations Law; or

(ii) ceases to have a share capital; or

(iii) ceases to be a wholly-owned subsidiary of nominated company A;

Division 3--Objects of nominated companies 55J Objects of nominated company A (1) The constitution of nominated company A must include the following as objects of the company:

(a) to trade in wheat in the course of, or for the purposes of:

(i) trade and commerce amongst the States; or

(ii) trade and commerce between a State and a Territory or between Territories; or

(iii) trade and commerce within a Territory;

(b) to export grain other than wheat, and to trade in such grain, in the course of, or for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(c) to export grain products, and to trade in such products, in the course of, or for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(d) to engage in value adding activities for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(e) to promote, fund or undertake research into matters related to:

(i) the marketing of grain; or

(ii) value adding activities;

(f) to do anything incidental to or conducive to any of the above objects.

(3) Subsection (1) does not, by implication, affect the powers and capacities of nominated company A under the Corporations Law.

Note 1: Nominated company A may perform functions conferred on it by other provisions of this Act.

Note 2: Nominated company A may perform functions conferred on it by State laws--see section 55T.

(a) to maximise the net returns to Australian wheat growers who sell pool return wheat to the company by securing, developing and maintaining markets for wheat and wheat products and by minimising costs as far as is practicable;

(b) to export new season wheat from Australia;

(c) to trade in new season wheat in the course of, or for the purposes of:

(i) trade and commerce amongst the States; or

(ii) trade and commerce between a State and a Territory or between Territories; or

(iii) trade and commerce within a Territory;

(d) to make arrangements for the growing of wheat for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(e) to promote or fund the marketing of wheat;

(f) an object approved, in writing, by the Minister for the purposes of this paragraph;

(g) to do anything incidental to or conducive to any of the above objects.

(3) Subsection (1) does not, by implication, affect the powers and capacities of nominated company B under the Corporations Law.

Note 1: Nominated company B may perform functions conferred on it by other provisions of this Act.

Note 2: Nominated company B may perform functions conferred on it by State laws--see section 55T.

(a) to trade in wheat in the course of, or for the purposes of:

(i) trade and commerce amongst the States; or

(ii) trade and commerce between a State and a Territory or between Territories; or

(iii) trade and commerce within a Territory;

(b) to export grain other than wheat, and to trade in such grain, in the course of, or for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(c) to export grain products, and to trade in such products, in the course of, or for the purposes of:

(i) trade and commerce with foreign countries; or

(ii) trade and commerce amongst the States; or

(iii) trade and commerce between a State and a Territory or between Territories; or

(iv) trade and commerce within a Territory;

(d) to promote, fund or undertake research into matters related to:

(i) the marketing of grain; or

(ii) value adding activities;

(e) to do anything incidental to or conducive to any of the above objects.

(3) Subsection (1) does not, by implication, affect the powers and capacities of nominated company C under the Corporations Law.

Note: Nominated company C may perform functions conferred on it by State laws--see section 55T.

(2) An arrangement may provide:

(a) for nominated company A to make loans to the subsidiary; or

(b) for nominated company A to guarantee loans made to the subsidiary; or

(c) for the staff of nominated company A to be made available to the subsidiary.

(4) An arrangement may relate to a particular object either generally or as otherwise provided by the arrangement.

(5) The making of an arrangement about an object does not prevent nominated company A from carrying out that object.

(6) Nominated company A is to have such wholly-owned subsidiaries as it considers necessary for the purposes of this section.

(7) This section does not, by implication, limit the powers of nominated company A to:

(a) make loans to a wholly-owned subsidiary of nominated company A; or

(b) guarantee loans made to a wholly-owned subsidiary of nominated company A; or

(c) make staff of nominated company A available to a wholly-owned subsidiary of nominated company A.

55P Appointment of directors An appointment of a person as a director of a designated company has no effect unless the appointment is approved in writing by the Minister.

55Q Subsidiary companies etc. A designated company must not, without the written permission of the Minister:

(a) arrange for the formation of another company (other than a company that, on its formation, will be a wholly-owned subsidiary of the designated company); or

(b) acquire, hold or dispose of shares or stock in the capital of another company (other than a company that is a wholly-owned subsidiary of the designated company); or

(c) acquire, hold or dispose of debentures or other securities of another company (other than a company that is a wholly-owned subsidiary of the designated company); or

(d) enter into a partnership, or arrange for the sharing of profits and losses, with an individual or with another company or body; or

(e) participate in a joint venture with an individual or with another company or body.

55S Nominated company A to hold shares in nominated company B and nominated company C Nominated company A may subscribe for, acquire and hold shares in nominated company B and nominated company C.

55T Functions conferred by State laws It is the intention of the Parliament that, if a State law confers a power or function on a designated company, the company may, with the written approval of the Minister, exercise that power or perform that function, as the case requires.

55U Activities of designated companies (1) Section 29 of the Commonwealth Authorities and Companies Act 1997 does not apply to a designated company.

(2) The activities that may be carried on by a designated company are not limited by reference to the functions and powers conferred on the Board.

(3) In determining the range of activities that may be carried on by a designated company, it is to be assumed that all the shares in the company were beneficially owned by the Commonwealth instead of the Board or nominated company A, as the case may be.

55V Nominated companies not to engage in trading activities before the function-transfer day (1) Nominated company A must not, without the written permission of the Minister, engage in any activities before the commencement of Part 2 of Schedule 1 to the Wheat Marketing Amendment Act 1997 . However, this rule does not apply to activities engaged in by nominated company A:

(a) by way of the formation of a wholly-owned subsidiary of nominated company A; or

(b) by way of the acquisition of shares in a company that has not yet traded, where the company will, after the acquisition, be a wholly-owned subsidiary of nominated company A; or

(c) by way of subscribing for, acquiring or holding shares in a wholly-owned subsidiary of nominated company A.

(3) Nominated company C must not, without the written permission of the Minister, engage in any activities before the commencement of Part 2 of Schedule 1 to the Wheat Marketing Amendment Act 1997 .

(4) This section does not apply to an activity that, under Division 5 of Part 2 of the Wheat Marketing Amendment Act 1997 , is taken to have been engaged in by the Board as the agent of nominated company A or nominated company B.

(5) For the purposes of this section, in determining the commencement of Part 2 of Schedule 1 to the Wheat Marketing Amendment Act 1997 , the amendment of subsection 69(2) of this Act made by that Part is to be disregarded.

17 Section 79

Omit "the Board" (wherever occurring), substitute "an eligible AWB body".

18 At the end of section 79

Add:

(5) In this section:

eligible AWB body means:

(a) the Board; or

(b) nominated company B.

Add "and".

20 After paragraph 82(1)(d)

Insert:

(da) to subscribe for, or to acquire, shares in:

(i) nominated company A; or

(ii) a company that is the subject of a permission under section 55C but is not yet the subject of a declaration under section 55D; and

Repeal the paragraph.

22 Paragraph 94(3)(f)

Omit "certificates", substitute "statements".

23 Paragraph 94(3)(g)

Repeal the paragraph, substitute:

(g) the transfer of equity in the Fund; and

Add:

(5) To avoid doubt, a person who, under the regulations, holds equity in the Fund does not have any beneficial interest in:

(a) money in the Fund; or

(b) an investment of the Fund; or

(c) any other asset acquired by the Board using money in the Fund.

(1) Regulations made before the commencement of this item for the purposes of paragraph 94(3)(f) or (g) of the Wheat Marketing Act 1989 are not invalid, and are taken never to have been invalid, on either of the following grounds:

(a) the ground that those regulations refer or referred to statements of equity instead of certificates of equity;

(b) the ground that those regulations refer or referred to transfers of equity in the Fund instead of transfers of certificates of equity in the Fund.

Part 2--Amendments commencing on a day fixed by Proclamation

Wheat Marketing Act 1989

26 Subsection 3(1) (definition of borrowing )

Omit "or a wholly owned subsidiary of the Board", substitute ", a wholly-owned subsidiary of the Board, or a wholly-owned subsidiary of nominated company A".

27 Subsection 3(1) (definition of Committee or Selection Committee )

Repeal the definition.

28 Subsection 3(1) (definition of nominated member )

Repeal the definition.

29 Subsection 3(1)

Insert:

ordinary member means a member referred to in paragraph 15(1)(d).

30 Subsection 3(1) (definition of pool return wheat )

Repeal the definition, substitute:

pool return wheat means:

(a) old season wheat bought by the Board for sale as part of a pool and on terms requiring payment for the wheat to be made according to Division 3 of Part 4; or

(b) new season wheat bought by nominated company B for sale as part of a pool and on terms requiring payment for the wheat to be made according to Division 3 of Part 4.

Note: Part 2 of the Wheat Marketing Amendment Act 1997 provides for the Board to be the agent of nominated company B in connection with certain transactions relating to new season wheat. Paragraph (b) of this definition covers new season wheat bought by the Board in its capacity as agent of nominated company B.

Repeal the definition.

32 Section 5

Repeal the section, substitute:

5 Objects of the Board The objects of the Board are to maximise the net returns to Australian wheat growers by using the Board's:

(a) export control powers; and

(b) function of holding shares in nominated company A;

33 Subsections 6(1) and (2)

Repeal the subsections, substitute:

(1) The functions of the Board are as follows:

(a) to control the export of wheat from Australia;

(b) to control the marketing overseas of Australian wheat;

(c) to provide advice, and make recommendations, to the Minister about matters related to the marketing of wheat;

(d) such other functions as are conferred on the Board by this Act or by any other law of the Commonwealth;

(e) to do anything incidental to or conducive to the performance of any of the above functions.

Omit "relating to the marketing of grain, or grain products, of any kind or value adding activities".

35 Paragraphs 7(2)(a) to (l) (inclusive)

Repeal the paragraphs.

36 Paragraph 7(2)(m)

Re-letter as paragraph (a).

37 Paragraph 7(2)(m)

Add at the end "and".

38 Paragraph 7(2)(n)

Re-letter as paragraph (b).

39 Paragraph 7(2)(p)

Re-letter as paragraph (c).

40 Paragraph 7(2)(p)

Omit "Territory; and", substitute "Territory.".

41 Paragraph 7(2)(q)

Repeal the paragraph.

42 Subsection 7(3)

Repeal the subsection.

43 Subsections 7(10) and (11)

Repeal the subsections.

44 Paragraph 12(1)(a)

Omit "of a Selection Committee or".

45 Subsection 13(2)

Repeal the subsection.

46 After subsection 13(6)

Insert:

(6A) For the purposes of the application of subsection (6) to an agreement or arrangement entered into before the commencement of this subsection, it is to be assumed that the Board had retained the objects and functions that the Board had immediately before the agreement or arrangement was entered into.

47 Paragraph 15(1)(b)

Omit "if an appointment has effect under section 45,".

48 Paragraph 15(1)(d)

Repeal the paragraph, substitute:

(d) not more than 8 ordinary members.

Repeal the subsection.

50 Subsection 15(4)

Repeal the subsection.

51 Subsection 15(5)

Omit "government member and the nominated members", substitute "Chairperson, the government member and the ordinary members".

52 Subsection 15(12)

Repeal the subsection.

53 After section 15

Insert:

15A Appointment of ordinary members (1) The Minister must not appoint a person as an ordinary member unless, in the opinion of the Minister, the person has expertise in one or more of the following fields:

(a) the production, marketing or processing of grain;

(b) the production or marketing of other products;

(c) business management;

(d) product promotion;

(e) finance.

(3) Before appointing a person as an ordinary member, the Minister must consult the President of the Grains Council in relation to the appointment.

54 Subsection 17(1)

Omit ", but is eligible for re-appointment".

55 Subsection 17(3)

Repeal the subsection.

56 Subsection 17(4)

Repeal the subsection.

57 Paragraph 20(2)(c)

Repeal the paragraph.

58 Subsection 26(1)

Repeal the subsection, substitute:

(1) The affairs of the Board are, to the extent determined by the Board, to be managed by the Managing Director.

59 Subsections 26(2) and (3)

Repeal the subsections.

60 Section 26A

Omit "A Chairperson appointed in an executive capacity or the", substitute "The".

Note: The heading to section 26A of the Wheat Marketing Act 1989 is replaced by the heading " Delegation by Managing Director ".

Repeal the Division.

62 Subsection 44(3)

Repeal the subsection.

63 Subsection 44(4)

Omit "When the Chairperson is not holding office in an executive capacity, a", substitute "A".

64 Subsection 45(1)

Omit "At any time when the Chairperson is not appointed in an executive capacity, there", substitute "There".

65 Subsections 45(3) and (4)

Repeal the subsections.

66 Subsection 46(2)

Omit "Subject to subsection (4), an", substitute "An".

67 Subsection 46(3)

Omit "Subject to subsection (4), the", substitute "The".

68 Subsection 46(4)

Repeal the subsection.

69 At the end of paragraph 49(4)(a)

Add "and".

70 At the end of paragraph 49(4)(b)

Add "and".

71 Paragraph 49(4)(d)

Omit "section 47.", substitute "section 47; and".

72 At the end of subsection 49(4)

Add:

(e) define what the Board thinks should be the principal objectives of each designated company during the period to which the plan relates; and

(f) give a broad outline of the strategies that the Board thinks should be pursued by each of the designated companies during that period for achieving those objectives.

Omit "section 47.", substitute "section 47; and".

74 At the end of subsection 54(2)

Add:

(c) set out particulars of the action that the Board intends to take in order to ensure that each designated company gives effect to or furthers, during the period to which the plan relates, the relevant objectives set out in the corporate plan applicable to the period and to the company as mentioned in paragraph 49(4)(e).

Insert:

Division 1A--Division of responsibility between the Board and nominated company B for the performance of functions under Divisions 2 and 3 57A Division of responsibility between the Board and nominated company B for the performance of functions under Divisions 2 and 3 (1) For the purposes of the application of Divisions 2 and 3 to old season wheat, a reference in those Divisions to the designated authority is a reference to the Board.

(2) For the purposes of the application of Divisions 2 and 3 to new season wheat, a reference in those Divisions to the designated authority is a reference to nominated company B.

76 Division 2 of Part 4 (heading)

Repeal the heading, substitute:

Division 2--Purchase of wheat 77 Section 58

Omit "Board" (wherever occurring), substitute "designated authority".

78 Section 59

Omit "Board" (wherever occurring), substitute "designated authority".

79 Subsection 59(1)

Omit "or other grain".

80 Section 60

Omit "Board" (wherever occurring), substitute "designated authority".

81 Section 61

Omit "Board" (wherever occurring), substitute "designated authority".

82 Section 62

Omit "Board" (wherever occurring), substitute "designated authority".

83 Section 63

Omit "Board" (wherever occurring), substitute "designated authority".

84 Section 64

Omit "Board" (wherever occurring), substitute "designated authority".

85 Section 65

Omit "Board" (wherever occurring), substitute "designated authority".

86 Section 65A

Omit "Board" (wherever occurring), substitute "designated authority".

87 Section 66

Omit "Board" (wherever occurring), substitute "designated authority".

88 After section 66

Insert:

66A Designated authority to provide breakdown of charges (1) When accounting to a grower for a payment due in respect of pool return wheat, the designated authority must, if practicable, specify separately charges made by the designated authority for each of the following:

(a) storage;

(b) handling;

(c) transport, whether by land or sea;

(d) provision of port services.

89 Section 67

Repeal the section, substitute:

67 Accounting for dealings in wheat etc. (1) The Board and nominated company B must keep their accounting records relating to dealings in wheat in a way that will, in the Board's opinion, or nominated company B's opinion, as the case may be, attribute costs and revenues to wheat of different seasons and pools in an equitable manner.

(2) Costs and revenues so attributed to wheat of a season or forming part of a pool are to be regarded as relating to wheat of that season or wheat forming part of that pool, as the case may be.

(3) The Board must keep separate accounting records relating to money of the Fund.

(4) This section has effect despite anything in the Commonwealth Authorities and Companies Act 1997 .

90 At the end of paragraphs 69(a) and (b)

Add "and".

91 Paragraph 69(c)

Repeal the paragraph.

92 Subsection 69(2)

Omit all the words after "investment of", substitute "money of the Board under section 70.".

93 Section 70

Repeal the section, substitute:

70 Investment (1) Money of the Board (other than pool funds) not immediately required for the purposes of the Board may be invested:

(a) on deposit with a bank; or

(b) in securities of the Commonwealth or of a State or Territory; or

(c) in securities guaranteed by the Commonwealth, a State or a Territory; or

(d) in any other manner that is consistent with sound commercial practice.

(a) on deposit with a bank; or

(b) in securities of the Commonwealth or of a State or Territory; or

(c) in securities guaranteed by the Commonwealth, a State or a Territory; or

(d) in any other manner approved by the Treasurer.

(a) on deposit with a bank; or

(b) in securities of the Commonwealth or of a State or Territory; or

(c) in securities guaranteed by the Commonwealth, a State or a Territory; or

(d) in any other manner approved by the Treasurer.

(5) In this section:

bank means a person who carries on the business of banking, either in Australia or outside Australia.

pool funds :

(a) in relation to the Board--means:

(i) funds earned by the Board from the sale or disposal of pool return wheat; or

(ii) funds obtained by the Board under a borrowing to which subsection 78(1) applies; or

(b) in relation to nominated company B--means:

(i) funds earned by nominated company B from the sale or disposal of pool return wheat; or

(ii) funds on-lent to nominated company B as mentioned in subsection 77A(1).

Omit "or a wholly owned subsidiary of the Board,", substitute "a wholly-owned subsidiary of the Board, or a wholly-owned subsidiary of nominated company A,".

95 At the end of section 71

Add:

(4) In the case of a borrowing by nominated company A, terms and conditions under subsection (1) may require nominated company A to:

(a) on-lend the money to a wholly-owned subsidiary of nominated company A; or

(b) otherwise use the money to finance the activities of a wholly-owned subsidiary of nominated company A.

96 Section 71A

Repeal the section.

97 Subsection 71B(2)

After "Board", insert "(other than a nominated company)".

98 At the end of section 71B

Add:

(3) A designated company must not borrow money except under section 71 or 77A.

99 Section 71C

Repeal the section, substitute:

71C Security for borrowings (1) The Board may give security over the whole or part of its assets for the performance by the Board of any obligation incurred under section 71.

(2) A wholly-owned subsidiary of the Board may give security over the whole or part of the subsidiary's assets for the performance by the subsidiary of any obligation incurred under section 71.

(3) A wholly-owned subsidiary of nominated company A may give security over the whole or part of the subsidiary's assets for the performance by the subsidiary of any obligation incurred under section 71.

100 Paragraph 74(6)(a)

Repeal the paragraph, substitute:

(a) references to the Board include references to:

(i) a wholly-owned subsidiary of the Board; and

(ii) a wholly-owned subsidiary of nominated company A; and

Repeal the section.

102 After subsection 77(2)

Insert:

(2AA) An approval may be given unconditionally or subject to such terms and conditions as are specified in the approval.

Note: The heading to section 77 of the Wheat Marketing Act 1989 is replaced by the heading " Borrowings by the Board to fund advance payments etc. ".

Insert:

77A Borrowings by nominated company A--borrowed money to be on-lent to nominated company B to fund advance payments etc. (1) If the Minister approves, nominated company A may borrow money for the purpose of on-lending the money to nominated company B so that nominated company B can use the money for any of the following purposes:

(a) the making of advance payments for pool return wheat;

(b) the making of payments in lieu of final payments for such wheat;

(c) the meeting of operational expenses incurred by nominated company B in connection with the sale or disposal of such wheat.

(3) Nominated company B must not use money on-lent to it as mentioned in subsection (1) otherwise than for a purpose mentioned in that subsection. This subsection does not prevent the investment of the money in accordance with section 70.

(4) An approval under subsection (1) may be given unconditionally or subject to such terms and conditions as are specified in the approval.

(5) An approval under subsection (1) may be given in relation to a particular transaction or a class of transactions.

(6) Money may be borrowed under subsection (1) wholly or partly in foreign currency.

(7) This section does not limit section 71.

104 Subsection 78(1)

After "subsection 77(1)", insert "or 77A(1)".

105 Subsection 78(1)

After "Board's liability", insert "or nominated company A's liability".

106 Subsection 78(1)

After "Board" (second and third occurring), insert "or to nominated company A, as the case may be,".

107 Subsection 78(1A)

After "Board", insert "or nominated company A".

108 Subsection 78(3)

Omit "subsection (1)", substitute "the application of subsection (1) to the Board".

109 After subsection 78(3)

Insert:

(3A) For the purposes of the application of subsection (1) to nominated company A, if nominated company A:

(a) borrows money under subsection 77A(1); and

(b) on-lends that money to nominated company B;

(c) the amount consists of the repayment by nominated company B of the money on-lent to it; or

(d) the amount consists of interest paid by nominated company B in respect of the money on-lent to it.

After "Board", insert "or nominated company B".

111 Paragraph 78(11)(b)

Before "interest", insert "in the case of old season wheat--".

112 Paragraph 78(11)(b)

Omit "Board.", substitute "Board; and".

113 At the end of subsection 78(11)

Add:

(c) in the case of new season wheat--interest earned from the investment by nominated company B of pool funds (within the meaning of section 70).

After "Board", insert "or nominated company B".

115 At the end of subsection 78(15)

Add ", or other borrowings of nominated company A under section 77A, as the case requires".

116 After subsection 79(4)

Insert:

(4A) Stamp duty or other tax is not payable by a nominated company under a law of a State or Territory in respect of a security held by nominated company A over the assets of nominated company B.

117 At the end of paragraph 81(a)

Add "and".

118 At the end of paragraph 81(b)

Add "and".

119 After paragraph 81(b)

Insert:

(ba) dividends paid to the Board by nominated company A; and

(bb) amounts paid to the Board by nominated company A by way of return of capital; and

(bc) interest paid to the Board by a designated company in respect of a loan made by the Board using money in the Fund; and

(bd) amounts paid to the Board by a designated company by way of the repayment of a loan made by the Board using money in the Fund; and

Repeal the paragraphs, substitute:

(a) to make loans to a designated company; and

(b) for any purpose in connection with a guarantee given by the Board in relation to a loan made to a designated company; and

Repeal the definition.

122 At the end of section 84

Add:

(2) For the purpose of this Part, if a particular penalty relates to levy imposed by the Wheat Industry Fund Levy Act 1989 during a particular season, the penalty is taken to be imposed during that season.

123 Before subsection 85(1)

Insert:

(1A) This section applies to a season that began before 1 July 1999.

124 Before subsection 86(1)

Insert:

(1A) This section applies to levy imposed during a season that began before 1 July 1999.

125 After paragraph 89(3)(a)

Insert:

(aa) particulars of the operations of each designated company during the year;

After "companies" (wherever occurring), insert "(other than a designated company)".

127 Subsection 90(1)

After "Board" (first occurring), insert "or nominated company B".

128 Subsection 90(1)

After "Board" (second and third occurring), insert "or nominated company B, as the case may be,".

129 Subsection 90(2)

After "Board" (wherever occurring), insert "or nominated company B".

130 Transitional--pre-commencement agreements and arrangements etc.

In determining, after the commencement of this item, the validity of an agreement, arrangement or transaction entered into by the Board before the commencement of this item, it is to be assumed that the Board had retained the objects and functions that the Board had immediately before the agreement, arrangement or transaction was entered into.

131 Transitional--sections 6 and 7 of the Wheat Marketing Act 1989

Despite the amendments of sections 6 and 7 of the Wheat Marketing Act 1989 made by this Schedule, those sections continue to apply, after the commencement of this item, in relation to the Board's functions in connection with old season wheat, as if those amendments had not been made.

132 Transitional--section 13 of the Wheat Marketing Act 1989

Neither section 29 of the Commonwealth Authorities and Companies Act 1997 nor the amendments of sections 5 and 6 of the Wheat Marketing Act 1989 made by this Schedule have the effect of requiring the Board:

(a) to dispose of any shares, debentures, securities, interests or other assets that were acquired under section 13 of the Wheat Marketing Act 1989 before the commencement of this item; or

(b) to terminate an agreement or arrangement that was entered into under that section before the commencement of this item.

(1) This item applies to a person who held office as a nominated member under the Wheat Marketing Act 1989 immediately before the commencement of this item because of a particular instrument of appointment (the original instrument of appointment ).

(2) The Wheat Marketing Act 1989 has effect as if:

(a) the Minister had, by instrument (the notional instrument of appointment ), appointed the person to an office of ordinary member under paragraph 15(1)(d) of that Act immediately after the commencement of this item; and

(b) the period of appointment specified in the notional instrument of appointment were the period:

(i) beginning immediately after the commencement of this item; and

(ii) ending at the end of the period specified in the person's original instrument of appointment.

134 Transitional--subsections 67(1), (2), (6) and (7) of the Wheat Marketing Act 1989

If this item commences before the commencement of Schedule 2 to the Audit (Transitional and Miscellaneous) Amendment Act 1997 , then, despite the repeal of subsections 67(1), (2), (6) and (7) of the Wheat Marketing Act 1989 by this Schedule, those subsections continue to apply during the period:

(a) beginning at the commencement of this item; and

(b) ending immediately before the commencement of Schedule 2 to the Audit (Transitional and Miscellaneous) Amendment Act 1997 ;

135 Transitional--sections 67, 69 and 70 of the Wheat Marketing Act 1989

The amendments of sections 67, 69 and 70 of the Wheat Marketing Act 1989 made by Schedule 2 to the Audit (Transitional and Miscellaneous) Amendment Act 1997 have no effect if this item commences before the commencement of Schedule 2 to that Act.

136 Transitional--paragraphs 69(a), (b) and (c) of the Wheat Marketing Act 1989

If Schedule 2 to the Audit (Transitional and Miscellaneous) Amendment Act 1997 commences before the commencement of this item, this Schedule has effect as if a reference in this Schedule to paragraph 69(a), (b) or (c) of the Wheat Marketing Act 1989 were a reference to paragraph 69(1)(a), (b) or (c), respectively, of that Act.

137 Transitional--sections 71A and 71C of the Wheat Marketing Act 1989

(1) This item applies to a guarantee in force under section 71A of the Wheat Marketing Act 1989 immediately before the commencement of this item.

(2) Despite the repeals of sections 71A and 71C of the Wheat Marketing Act 1989 made by this Schedule, those sections continue to apply, after the commencement of this item, in relation to the guarantee, as if those repeals had not been made.

Part 3--Amendments commencing on 1 July 1999

Primary Industries and Energy Research and Development Act 1989

138 Subsection 4(1) (paragraph (a) of the definition of research component )

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

139 Subsections 5(4) and (5)

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

Primary Industries Levies and Charges Collection Act 1991

140 Schedule 2

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

Wheat Industry Fund Levy Act 1989

141 Section 1

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

Wheat Marketing Act 1989

142 Subsection 84(1) (definition of levy )

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

143 Subsection 84(1) (definition of value )

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

144 Subsection 84(2)

Omit " Wheat Industry Fund Levy Act 1989 ", substitute " Wheat Levy Act 1989 ".

[ Minister's second reading speech made in the

House of Representatives on 26 June 1997

Senate on 28 October 1997 ]

(88/97)