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1
Grain Industry (Restructuring) Amendment
GRAIN INDUSTRY (RESTRUCTURING)
AMENDMENT BILL 1994
EXPLANATORY NOTES
GENERAL OUTLINE
Objective of the Legislation
The objective of the legislation is to amend the Grain Industry
(Restructuring) Act 1991 to enable Grainco Queensland Co-operative
Association Limited ("Grainco") to continue to perform its functions and
exercise its powers under the Act when it converts to a company under the
Corporations Law.
Reasons for the Bill
Grainco is presently a primary producers' co-operative association formed
under the Primary Producers' Co-operative Associations Act 1923. It was
formed in 1991 to assume the functions of the former State Wheat Board,
Barley Marketing Board, Central Queensland Grain Sorghum Marketing
Board, and Queensland Grain Handling Authority. Under the Grain Industry
(Restructuring) Act 1991, assets and liabilities of the former grain marketing
boards and the authority were vested in Grainco, and Grainco was granted
statutory functions and powers to administer a compulsory marketing scheme
for vested grain (wheat, barley and central Queensland grain sorghum).
Under section 25A of the Primary Producers' Co-operative Associations
Act 1923, a registered association may apply to convert to a company under the
Corporations Law. The Board of Grainco has indicated that it intends to initiate
procedures for conversion to a company early in 1995. The conversion will
enable Grainco to undertake a commercial merger with the Australian Wheat
Board. The proposed merger will result in up to $70 million in capital funds
being invested in the body, and allow Grainco to pay out its debt to the
Queensland Treasury Corporation.
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Grain Industry (Restructuring) Amendment
As the Grain Industry (Restructuring) Act 1991 applies only to Grainco as a
primary producer co-operative association, it is necessary to amend the Act to
enable Grainco to perform its functions under the Act when it has converted to
a company.
Estimated Cost for Government Implementation
There will be no additional cost to Government from the implementation of
the legislation.
Consultation
Consultation has taken place with Grainco, the Australian Wheat Board and
the Queensland Graingrowers' Association. Passage of the legislation is
supported by these bodies.
The Department of Justice and Attorney-General has notified the Ministerial
Council for Corporations of the proposed law, in accordance with the
requirements of the Commonwealth/State Corporations Agreement.
NOTES ON PROVISIONS
Clause 1 provides that the short title of the Act is to be the Grain Industry
(Restructuring) Amendment Act 1994.
Clause 2 provides that sections 4, 6, 7, 9, 10 and 15 of the Act are to
commence 6 months after the day of assent unless an earlier day is fixed by
proclamation.
Clause 3 states that the Act amends the Grain Industry (Restructuring) Act
1991.
Clause 4 amends section 3 of the Act to insert a new definition of Grainco to
meanGraincoQueenslandCo-operativeAssociationLimitedestablishedunder
the Corporations Law.
Clause 5 omits Division 1 (Transfer of assets and liabilities of merger
participants to Grainco) and Division 2 (Administration of merger
participants and distribution of shares in Grainco after transfer date)
from Part 2 of the Act, as these Divisions have performed their functions and
are no longer necessary.
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Grain Industry (Restructuring) Amendment
Clause 6 amends section 13 of the Act by removing the requirement for the
chairperson of Grainco to be a member of Grainco.
Clause 7 inserts--
(a) a new section 16A to provide for disclosure of interests of a director
of Grainco; and
(b) a new Division 3A (section 16B) to provide that Grainco's
memorandum and articles must be consistent with the Act.
Clause 8 inserts--
(a) a new section 19A to provide that Grainco must report on, and
account for, its administration under the Financial Administration
and Audit Act 1977 and that the Financial Administration and Audit
Act 1977 applies to Grainco as if it were a statutory body; and
(b) a new section 19B to provide that the following Acts apply to
Grainco--
· the Criminal Justice Act 1989;
· the Freedom of Information Act 1992;
· the Libraries and Archives Act 1988;
· the Parliamentary Commissioner Act 1974;
· the Public Sector Management Commission Act 1990; and
· the Judicial Review Act 1991.
Clause 9 amends section 20 of the Act to provide--
(a) that the Minister is not to be regarded as a director of Grainco because
of the existence, or the exercise, of the Minister's power of direction
under section 20; and
(b) that Grainco is not to be entitled to compensation for any actual or
prospective loss because of a Ministerial direction.
Clause 10 amends section 34 of the Act to provide that Part 4 of the Act (the
compulsory marketing scheme) is to be suspended if Grainco shares are listed
for trading on a stock exchange.
Clause 11 omits sections 72 and 73 of the Act and inserts--
(a) a new section 72 to provide for appointment of inspectors with the
approval of the chief executive of the department;
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Grain Industry (Restructuring) Amendment
(b) a new section 73 to provide for limitations on an inspector's
powers;
(c) a new section 73A to provide for an inspector's appointment
conditions;
(d) a new section 73B to provide for the issue of an inspector's identity
card; and
(e) a new section 73C to provide that an inspector's identity card must be
produced or displayed.
Clause 12 amends section 84 of the Act to remove the reference to grain that
has been dealt with in contravention of Part 8, as Part 8 of the Act expired on 28
February 1994.
Clause 13 replaces section 87 with a new section 87 and a new section 87A
to provide for starting of offence proceedings.
Clause 14 inserts a new section 93 to provide that when the Act is reprinted
under the Reprints Act 1992, provisions of the Act may be renumbered.
Clause 15 provides that Schedule 2 amends the Wheat Marketing
(Facilitation) Act 1989.
Schedule 1 provides for minor and consequential amendments to the Act.
Schedule 2 provides for amendments to the Wheat Marketing (Facilitation)
Act 1989.
© The State of Queensland 1994