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Thursday, 29 November 1973
Page: 4160


Mr UREN (Reid) (Minister for Urban and Regional Development) - I have several amendments to move in respect of clause 10, which reads, in part:

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(2)   Subject to sub-section (3), the loan is subject to the following conditions: -

(a)   interest shall accrue in respect of each payment or advance, calculated from the date on which the payment or advance was made, on so much of the payment or advance as for the time being repaid by the State;

(b)   the rate at which interest shall accrue under paragraph (a) shall be the long-term bond rate or such lower rate as the Treasurer, with the concurrence of the Minister, determines;

(c)   interest so accrued shall be paid by the State to Australia on15 June and15 December in each year;

(d)   the State shall repay to Australia each payment or advance (not being an advance repaid under section 7) by 60 equal payments, the first payment in each case to be made on15 June or15 December next occurring after the expiration of 12 months after the date on which the payment or advance was made to the State, and the subsequent payments to be made at halfyearly intervals thereafter.

(3)   Commencement of repayments of principal, and payments of interest, by a State in respect of payments and advances made to the States in relation to an approved program may be deferred for such period, not exceeding 10 years (in this section referred to as " the period of deferment "), as is agreed between Australia and the State before the first payment or advance to the State is made in relation to that program and, in that event, sub-section (2) does not apply, but the loan is subject to the following conditions: - «* o o o o o

(f)   the State shall repay to Australia each payment or advance (not being an advance repaid under section 7) by equal consecutive half-yearly payments, the first payment in each case to be made on15 June or 15 December next occurring after the expiration of the period of deferment and the last payment in each case to be made on15 June or15 December next occurring after the expiration of 30 years after the date on which the first payment or advance was made to the State in relation to that program.

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I move:

(1)   Omit paragraph (d) of sub-clause (2), substitute the following paragraph: - "(d) the State shall repay to Australia each payment or advance (not being an advance repaid under section 7) by instalments in such manner, and within such period, not exceeding 30 years, after the date on which the payment or advance is made to the State, as is agreed between Australia and the State, the first instalment in each case to be paid on15 June or15 December next occurring after the expiration of 12 months after that date.".

(2)   In sub-clause (3), omit "before the first payment or advance to the State is made in relation to that program".

(3)   In sub-clause (3), paragraph (c), omit "as at which it was calculated, and interest shall accrue in respect of that amount, calculated from that date,', substitute "on which the payment or advance was made, and interest shall accrue in respect of that amount, calculated from the date as at which that amount was calculated,".

(4)   Omit paragraph (f) of sub-clause (3), substitute the following paragraph: - "(0 the State shall repay to Australia each pay ment or advance (not being an advance repaid under section 7) by instalments in such manner, and within such period, not exceeding 30 years. after the date on which the payment or advance is made to the State, as is agreed between Australia and the State.".

(5)   After sub-clause (3), insert the following subclause: - "(3a) An agreement fixing a period in accordance with this section may include provision for the variation of that period before the expiration of that period and for the consequential variation of other matters.".

The aim of the amendments is to provide for flexibility in the term of each loan. The Bill as originally introduced provides for all loans to have a term of 30 years. The amendments allow the repayment term to be any period up to 30 years. Also the amendments correct some minor drafting errors. In respect of amendment No. 1, the original paragraph (d) required repayments by way of 60 equal halfyearly payments. The amendment provides for flexibility in the method of repayment subject to the proviso that the repayments must be completed within 30 years.

Amendment No. 2 is necessary to ensure that the period of deferment can be reviewed in about 5 years time. Amendment No. 3 is a drafting amendment to ensure that the capitalised interest is repaid in the same way as the original advance. Amendment No. 4 is similar to amendment No. 1 and applies where there is a deferment period for the commencement of payments of interest and repayments of principle. Amendment No. 5 allows a review to cover incidental matters.







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