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Thursday, 5 December 1974
Page: 3227


Senator MAUNSELL (Queensland)

Leave out the clause, insert the following new clause:

10.   After section 28 of the Principal Act the following section is inserted: 28a. (I) The Corporation shall establish and maintain a fund to be known as the Market Support Trust Account.

(2)   Amounts paid to the Corporation in accordance with section 84b shall be placed to the credit of the Market Support Trust Account.

(3)   Moneys standing to the credit' of the Market Support Trust Account may be used by the Corporation for the purchase of wool in the performance of its function or in the payment of advances to growers the marketing of whose wool has been delayed by reason of the exercise of the powers and functions of the Corporation, or may be invested in accordance with section 36 and the accounts of the Corporation shall identify amounts so used or invested.

(4)   There shall be credited to the Market Support Trust Account-

(a)   income derived from investments made in accordance with sub-section ( 3 );

(b)   interest received on advances made in accordance with sub-section (3), less administrative expenses incurred by the Corporation in connexion with those advances; and

(c)   amounts representing interest on moneys standing to the credit of the Market Support Trust Account and used by the Corporation for the purchase of wool, being interest at rates determined by the Corporation.

(5)   As soon as practicable after 30 June 1975, the AuditorGeneral shall certify to the Minister whether the Corporation has made a profit or incurred a loss as a result of the operations of the Corporation in respect of its reserve price scheme in the period that commenced on 2 September 1974 and ended on 30 June 1 975 and the amount of that profit or loss, and the Minister shall deliver a copy of the certificate to the Corporation.

(6)   The operations of the Corporation referred to in subsection (5) shall be deemed to include its operations in connexion with the making of advances to growers during the period referred to in that sub-section, and costs (including valuation costs), losses and receipts of interest (other than amounts credited to the Market Support Trust Account) in connexion with those advances shall be taken into account accordingly and separately specified and in the event of this not being achieved within six calendar months of 30 June 1975 then an interim report on the operation of this account will be presented to the Parliament by the Minister, within fourteen sitting days of 30 December 1 975.

(7)   The certificate referred to in sub-section (5) shall not be given until the whole of the wool purchased by the Corporation under its reserve price scheme in the period referred to in that sub-section has been disposed of, and the proceeds of that disposal (including disposal after the end of that period) shall be taken into account for the purposes of that sub-section.

(8)   The costs to be taken into account in ascertaining, under sub-section (5), whether the Corporation has made a profit or incurred a loss or the amount of such a profit or loss include interest paid or payable by the Corporation on borrowed moneys used for the purposes of the operations referred to in that sub-section and costs incurred by the Corporation in connexion with those operations that are of a kind that have been approved by the Minister as being storage, handling or selling costs but, subject to sub-section (6), do not include costs incurred by the Corporation in connexion with wool before it is purchased by the Corporation.

(9)   If the certificate under sub-section (5) discloses a loss, the amount of that loss, as specified in the certificate, shall be debited to the Market Support Trust Account.

(   10) In ascertaining, for the purposes of section 33, the profit or loss of the Corporation for the financial year ending on 30 June 1975, there shall not be taken into account the operations of the Corporation referred to in sub-section (5) or any income or interest referred to in sub-section (4).

(II)   If the certificate under sub-section (5) discloses a profit, that profit shall be dealt with in accordance with section 33 as if it were profit of the Corporation for a financial year to which that section applies.

(12)   If any moneys stand to the credit of the Market Support Trust Account after the profit or loss certified under subsection ( 5 ) has been dealt with in accordance with subsection (9) or ( 1 1 ), those moneys shall be applied by the Corporation for such purpose in relation to the wool industry as is determined by the Minister after approval has been given by the Australian Wool Industry Conference in writing to the Minister.

This is quite a long amendment but we are merely trying to change the fund from the Wool Marketing Fund to a trust fund. We dealt with this argument on the last occasion this matter was before this House. Debate on this Bill has taken place in the other place. We believe that there is more security so far as a trust fund is concerned. However, I will not canvass all those arguments now. There is one section of our amendments which we believe is necessary. I should like to hear the Minister for Agriculture (Senator Wriedt) comment on it. Sub-clause (6) of clause 10 states in part:

.   . an interim report on the operation of this account will be presented to the Parliament by the Minister, within fourteen days of 30 December 1975.

The Bill as presented to us by the Minister states that a report should be presented 'as soon as practicable after 30 June 1975'. We believe that the Parliament should know the situation in relation to wool that has been purchased by the Corporation over any length of time. Wherever possible, reports should be made to the Parliament at least every 6 months. I will not pursue this further. We simply believe that a trust fund should be established. I think one of my colleagues wishes to elaborate a little further on this matter.







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