An Act to approve, ratify and confirm an Agreement between the Commonwealth and the State of New South Wales in relation to rural adjustment; to validate certain matters; and for related purposes.
1 Name of Act
This Act may be cited as the Rural Adjustment Scheme Agreement Act 1993.
2 Commencement
This Act commences on the date of assent.
3 Interpretation
(1) In this Act, the Agreement means the Agreement, a copy of which is set out in Schedule 1.(2) For the purposes of this Act and the Agreement, the Authority is the New South Wales Rural Assistance Authority (if that Authority is appointed under section 25 of the Rural Assistance Act 1989 to administer the Agreement) or an instrumentality designated by the Minister to be the Authority for those purposes.
4 Ratification
The Agreement is approved, ratified and confirmed.
5 Implementation
(1) The Agreement may be carried into effect despite the provisions of any other Act.(2) All acts, matters and things for or with respect to which provision is made in the Agreement, or which by the Agreement are agreed, directed, authorised or permitted to be made, done or executed by or on behalf of the Minister, the Treasurer, the Auditor-General or the Authority are sanctioned, authorised and confirmed.
6 Validation
Any act, matter or thing:(a) which by the Agreement is agreed, directed, authorised or permitted to be made, done or executed; and(b) which was made, done or executed before the date of assent to this Act; andis validated.(c) which would have been lawful if this Act and the Agreement had been in force at the time the act, matter or thing was made, done or executed,
7 Acquisition of certain land
(1) Any land to be acquired for the purposes of the Agreement by the Authority may be so acquired, despite:(a) that any consent or permission required under the Crown Lands Act 1989 has not been obtained or granted; or(b) that the Authority may not be qualified under the Crown Lands Act 1989 to hold land of the tenure to be so acquired by the Authority.(2) For the purposes of this section:(a) the provisions of the Crown Lands Act 1989 and any regulations under that Act; andis taken to be amended so as to give force and effect to any of the provisions of this section.(b) any condition attaching to any land in pursuance of any of those provisions,
Schedule 1 The Agreement
(Section 3 (1))
AN AGREEMENT made the day of One thousand nine hundred and ninety between:
The COMMONWEALTH OF AUSTRALIA (in this Agreement called ‘The Commonwealth’) of the first part,
The STATE OF NEW SOUTH WALES of the second part,
The STATE OF VICTORIA of the third part,
The STATE OF QUEENSLAND of the fourth part,
The STATE OF WESTERN AUSTRALIA of the fifth part,
The STATE OF SOUTH AUSTRALIA of the sixth part,
The STATE OF TASMANIA of the seventh part,
The AUSTRALIAN CAPITAL TERRITORY of the eighth part,
The NORTHERN TERRITORY OF AUSTRALIA of the ninth part,
WHEREAS:
(A) The Commonwealth, the States, the Northern Territory and the Australian Capital Territory are parties to an Agreement dated variously of December 1988 and January 1989 as amended by First Amending, Second Amending, Supplemental and Third Amending Agreements dated 20 December 1991, 13 March 1992, 26 June 1992 and 7 October 1992 respectively, relating to rural adjustment (‘the amended Agreement’).
(B) Following a review, agreement has been reached between the Commonwealth and the States that the Scheme be altered to support farmers and thereby enable them to increase efficiency and productivity and thereby enhance their international competitiveness.
(C) It has been decided to continue the payment of financial assistance to the States, the Northern Territory and the Australian Capital Territory under this Agreement.
(D) The Parliament of the Commonwealth has authorised the execution of an Agreement by and on behalf of the Commonwealth and the provision of financial assistance to the States, the Northern Territory, and the Australian Capital Territory as provided in this Agreement.
NOW IT IS HEREBY AGREED as follows:
PART I
INTRODUCTION
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1.
Operation of Agreement
In this Agreement, each State, the Northern Territory and the Australian Capital Territory in respect of which the Agreement has come into force is referred to as a ‘State’, and the expression ‘the States’ means, except where the context otherwise requires, all of the States, the Northern Territory and the Australian Capital Territory in respect of which for the time being the Agreement is in force.(1)
This Agreement shall, as between the Commonwealth and a State executing this Agreement on or before 1 January 1993, come into force on that date or, if executed later, on that later date and the amended Agreement shall at that time, except for:(2)(a) paragraph 6(1)(a) in relation to drought—which shall cease on 30 June 1993;(b) paragraphs 6(1)(b),(c) and 6(2)—which shall cease on 31 December 1993, where a farmer is currently receiving assistance which is due to cease in the twelve months commencing 1 January 1993;(c) paragraph 6(3)(a)—which shall cease on the proposed Farm Household Support Scheme Act coming into force;cease as between the Commonwealth and that State.(d) the provisions of subclause 1(3) of this Agreement;
In order to enable a State to meet contractual commitments entered into before 1 January 1993 by it under the amended Agreement, the Commonwealth shall hereunder provide such financial assistance to that State as is required to meet those contractual commitments in accordance with the amended Agreement as, with funds provided to the State by the Commonwealth under the amended Agreement, which:(3)(a) are held by the State on the date on which this Agreement comes into force; or(b) become subsequently available to it whether before or after that date and not disbursed; orwill enable that State to meet those commitments. Where a State has entered into contractual commitments of that kind before 1 January 1993, the terms and conditions of support for farmers by the State, and the obligations of the State and the Commonwealth under the amended agreement, will be preserved.(c) interest earned on those funds whether before or after that date and not disbursed;
Notwithstanding that in this Agreement all of the States are named as parties, this Agreement shall operate as an Agreement between the Commonwealth and the party or parties in respect of which it comes into force as fully and effectually as if the party or parties in respect of which it comes into force were the only party or parties so named other than the Commonwealth.(4)
If a State ceases to be a party, this Agreement continues in force with respect to the Commonwealth and the States which remain parties when the cessation takes effect.(5)
2.
Performance of Agreement
3.
Interpretation
In this Agreement, unless the contrary intention appears:(1)‘Act’ means the Act of the Commonwealth under which the execution, on behalf of the Commonwealth, of this Agreement is approved;‘applicant’ means a person who applies for support under the Scheme;‘aquaculture’ means industries which conduct systematic farming of plants and animals in water involving the use of man-made infrastructure on or adjacent to land, but excludes harvesting-type industries where farming or cultivating is not an integral part of the operation;‘Authority’ means an authority of a State which has, from time to time, the administration of the Scheme on behalf of the State;‘farm enterprise’ means an enterprise carried on by a farmer within the farm sector in a State, the Northern Territory or the Australian Capital Territory;‘farmer’ means a person engaged in the farm sector in a State, the Northern Territory or the Australian Capital Territory, but does not include a person whose business consists principally of the provision of services;‘farm sector’ means the sector comprising the agricultural, horticultural, pastoral, apicultural and aquacultural industries;‘financial year’ means:(a) when the Agreement does not come into force in relation to a State on 1 July, from the date it comes into force up to and including 30 June which next occurs after this Agreement comes into force and thereafter each succeeding period of twelve months; and(b) where this Agreement does come into force on 1 July, a period of twelve months ending on 30 June;‘Minister’ means the Commonwealth Minister of State for Primary Industries and Energy;‘Scheme’ means the scheme of support to be established and operated by a State in accordance with clause 8.
A reference in this Agreement to a Minister of the Commonwealth or of a State includes a reference to a Minister for the time being acting for or on behalf of the Minister referred to or to a Minister who has taken over the responsibilities of the Minister under this Agreement.(2)
A reference in this Agreement to a State shall include a reference to an authority or authorities of a State that has or have the administration of the Scheme on behalf of the State.(3)
PART II
THE SCHEME
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4.
Objectives
The objectives of the Scheme are:(1)(a) to foster the development of a more profitable farm sector that is able to operate competitively in a deregulated financial and market environment; and(b) to improve the competitiveness of the farm sector in a sustainable manner.
In order to achieve those objectives, the Scheme will:(2)(a) promote a better financial, technical and management performance from the farm sector; and(b) provide support to farmers who have prospects of sustainable long-term profitability with a view to improving the productivity of their farm units; and(c) provide that support in a way that ensures that the farmers who are supported become financially independent of that support within a reasonable period; and(d) support farmers who do not have prospects of sustainable long-term profitability to leave the farm sector.
5.
Strategies
The strategies to be adopted to facilitate sustainable long-term profitability of the farm sector by improving farm productivity and helping the sector to become more self-reliant include:(1)(a) the acquisition of improved skill levels;(b) the adoption of sustainable farming systems;(c) the adoption of technological developments;(d) obtaining access to information on technological developments and their application, training opportunities and appropriate farm programs;(e) increasing farm size or capital intensity;(f) farm program changes;(g) debt restructuring; and(h) capital restructuring.
The strategies to be adopted to overcome difficulties due to exceptional circumstances where farmers have long-term prospects of profitability, are to facilitate one or more of the following:(2)(a) the provision of carry-on finance;(b) debt restructuring;(c) improvements in productivity.
The strategies to be adopted to encourage farmers to make an orderly exit from the farm sector if the farmers are without prospects in the farm sector shall be to:(3)(a) assist farmers to realise farm assets in an orderly manner; and(b) assist farmers to re-establish post-farming.
In achieving the strategies referred to in subclauses 5(1) and 5(3), trading in land by a State is permissible only where:(4)(a) the trading does not distort the market for land;(b) large land stocks are not accumulated by the State; and(c) proceeds of transactions are retained for use in the operation of the Scheme.
From time to time it may be necessary to develop other strategies to meet changing circumstances.(5)
6.
Operations
Given the nature of the support to be provided, and that the application of funds provided under the Scheme will be most effective when the operations of States are responsive to the specific circumstances pertaining to an applicant, decisions on the form and level of support to be provided to an applicant will be taken at the State level, with full knowledge of local, regional and industry conditions.(1)
The Commonwealth, in consultation with the States, will, where appropriate, establish policy guidelines concerning:(2)(a) criteria to be adopted in assessing eligibility for support;(b) outcomes expected from support under the Scheme;(c) requirements for review of supported farmers; and(d) determination of funding.
The role of the Commonwealth will be to:(3)(a) provide policy guidelines within which the Scheme will operate; and(b) establish a reporting mechanism to permit the monitoring and assessment of the efficiency and effectiveness of the operation of the Scheme.
The role of the States will be to:(4)(a) manage funds provided under the Scheme; and(b) be responsible and accountable for the achievement of the objectives of the Scheme in accordance with the Commonwealth’s policy guidelines.
With a view to achieving the objectives of the Scheme in accordance with the Commonwealth’s policy guidelines, the principal functions of the State Authorities in administering the Scheme will be to:(5)(a) assess the eligibility of farmers for support;(b) determine, after full consideration of each individual case, the form and level of support, or combination of forms and levels of support, if any, most appropriate to the particular circumstances facing the farmers;(c) deliver funds and services in accordance with policy guidelines established by the Commonwealth from time to time;(d) review the effectiveness of support provided to farmers on a periodic basis;(e) account to the Commonwealth at a frequency, and in a manner, determined from time to time by the Commonwealth, in consultation with the States, as to the:(i) disbursement of funds in compliance with the policy guidelines;(ii) effectiveness and efficiency with which the funds have been applied; and(f) promote the purpose and scope of the Scheme to the farming and financial communities and other interested persons.
7.
Eligibility
An individual who operates a farm enterprise is eligible for support under the Scheme only if:(1)(a) under normal circumstances the person contributes a significant proportion of his or her labour to the farm enterprise; and(b) the farm and non-farm income and assets of the person are not deemed to be in excess of those needed for the management of the risk faced by the farm enterprise.
Two or more individuals who operate a farm enterprise in partnership are eligible for support under the Scheme only if:(2)(a) under normal circumstances, significant proportion of the total labour of those persons is contributed to the farm enterprise and;(b) the farm and non-farm income and assets of those persons are not deemed to be in excess of those needed for the management of the risk faced by the farm enterprise.
A company that operates a farm enterprise is eligible for support under the scheme only if:(3)(a) under normal circumstances, significant proportion of the total labour of the shareholders of the company is contributed to the farm enterprise and;(b) the farm and non-farm income and assets of those shareholders are not deemed to be in excess of those needed for the management of the risk faced by the farm enterprise.
A trust estate that operates a farm enterprise is eligible for support under the Scheme only if:(4)(a) under normal circumstances, significant proportion of the total labour of the beneficiaries of the trust is contributed to the farm enterprise and;(b) the farm and non-farm income and assets of the beneficiaries are not deemed to be in excess of those needed for the management of the risk faced by the farm enterprise.
PART III
ADMINISTRATION OF SCHEME
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8.
State to Operate Scheme
Each State will use the financial assistance in accordance with this Agreement to establish and operate a Scheme of support to persons engaged in the farm sector in that State.(1)
The Scheme shall consist of the forms of support referred to in clause 9 and shall be operated in conformity with the objective and other provisions set out in Part II.(2)
9.
Forms of Support to those engaged in the farm sector
In relation to paragraphs 5(1)(b),(c),(e),(f),(g) and (h), support under the Scheme shall be primarily by way of grants by the State for the purpose of subsidies for interest payable on, and associated costs of, loans, whether made by the State or another party. Grants may be made by the State for purposes referred to in paragraphs 5(1)(a) and (d).(1)
Except where subclause 5(2) applies, interest subsidies under this clause are not to exceed 50% of interest payable on, and associated costs of, the loans. The State shall bear 10% of those subsidies and the Commonwealth 90%.(2)
Where subclause 5(2) applies, interest subsidies may exceed 50% of that interest and associated costs. The State and the Commonwealth shall each bear 50% of so much of those subsidies as exceeds 50% of that interest and associated costs.(3)
The State shall bear 10% of grants under the Scheme for purposes other than interest subsidies and the Commonwealth 90%.(4)
For the purpose of paragraphs 5(3)(a) and (b), support under the Scheme shall be by way of grants or loans by the State. The State shall bear 10% of those grants or loans and the Commonwealth 90%.(5)
Subject to subclause 5(4), support identified in subclause 9(1) may also be used for transactions involving the land of farmers.(6)
10.
Conditions
11.
Terms of loans by a State
The rates of interest at which money is advanced by the State under the Scheme shall be as determined by the State Authority.(1)
The length of loans and the period during which an interest subsidy applies in respect of loans shall be as determined by the State Authority.(2)
The State Authority shall have the right to review and change the terms of repayment, including interest rates of individual accounts, at any time and shall exercise this right at regular intervals with the objective of encouraging borrowers to move to commercial credit as soon as circumstances permit.(3)
PART IV
FINANCIAL ASSISTANCE
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12.
Provision of Financial Assistance
13.
Amount of Financial Assistance
Subject to this Agreement, the amount of financial assistance to be made available by the Commonwealth to each State for the strategies specified in clause 5, other than subclause 5(2), during a financial year shall be determined by the Minister after consultation with the State Ministers. Before the commencement of the financial year the Minister and the State Ministers will consult taking into account the objectives of the Scheme.(1)
Of the total financial assistance to be made available in a State under this agreement, other than financial assistance referred to in subclause 5(2), the Commonwealth will contribute 90% and the State 10%.(2)
In respect of subclause 5(2) the Commonwealth shall bear 90% and the State shall bear 10% of the interest subsidies which do not exceed 50% of the interest payable. The State and the Commonwealth shall each bear 50% of the interest subsidies which exceed 50% of the interest payable.(3)
The amount to be made available to a State during a financial year determined under subclause (1) may, at any time the Commonwealth so considers fit, be increased by the addition of a supplementary amount determined by the Commonwealth at that time.(4)
The amount of financial assistance to be made available by the Commonwealth to a State for the strategies set out in paragraph 5(2) shall be as determined at the time the Commonwealth and the State agree that the provision of such support is warranted.(5)
14.
Administration Expenses
15.
Provision for losses
16.
Payments of Financial Assistance
The Commonwealth shall, subject to this Agreement, make quarterly payments to the States on an acquittals basis of the financial assistance to be provided to them under this Agreement.(1)
The Commonwealth may, at such time and in such amounts as the Minister thinks fit, make advances on account of the payment that may be made by the Commonwealth under subclause (1).(2)
An amount or part of an amount advanced by the Commonwealth under this clause may be deducted by the Commonwealth from an amount that subsequently becomes payable under subclause (1) or, if no further amounts become payable under that subclause, shall be refunded by the State to the Commonwealth at the request of the Minister.(3)
17.
Use of Advances and other Moneys
A State shall ensure that an amount or any part of an amount advanced to the State and not refunded under subclause 16(3) is used or applied for the operation of the Scheme.(1)
A State shall ensure that:(2)(a) any financial assistance paid by the Commonwealth under the Scheme is used or applied for the operation of the Scheme;(b) any profit made by it in relation to the operation of the Scheme is used or applied for the operation of the Scheme or as mentioned in clause 15;(c) any repayment of, or payment of interest on, loans made by the State and funded by the Commonwealth under the amended Agreement, and any recovery of money under that agreement, are used or applied in the operation of the Scheme.
18.
Pre-commitment of Assistance
Where the Minister has, upon the State establishing to the Minister’s satisfaction that the circumstances so warrant, authorised the State during a financial year to commit to the Scheme financial assistance to be received under this Agreement during succeeding financial years, the State may approve the provision of support under the Scheme to the extent of the amount or amounts that have been so authorised by the Minister.(1)
Any amounts that are approved by the State under subclause (1) shall be included in the amount of financial assistance to be made available by the Commonwealth to the State for the purposes of the Scheme as determined under clause 13 in respect of succeeding financial years.(2)
19.
Supporting Financial Evidence
A State shall furnish to the Minister such documents and other evidence to justify payment of any moneys to the State under the Scheme as the Minister may from time to time reasonably request, whether the request by the Minister is made before or after the Commonwealth has made the advance or a payment pursuant to the request by the State.(1)
Information furnished by a State pursuant to subclause (1) shall include details of applicants from the State or otherwise under the Scheme, but not so as to identify applicants, in a format agreed from time to time by Commonwealth and State Ministers.(2)
20.
Audit
The accounts, books, vouchers, documents and other records of a State relating to the operation of the Scheme shall be subject to audit carried out in accordance with Australian auditing standards by a registered company auditor or, if required by the State, the Auditor-General of the State or his or her appointee.(1)
A report on the audits in respect of each financial year shall be furnished to the Minister by that auditor or Auditor-General of the State, as the case may be, as soon as possible after the completion of the financial year and no later than 31 October in the succeeding financial year.(2)
21.
Other Financial Arrangements
PART V
FINANCIAL ASSISTANCE FOR RELATED PURPOSES
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22.
Diagnostic Activities
23.
Provisions Applicable
The amount of financial assistance to be made available by the Commonwealth to each State for expenditure under clause 22 during a financial year shall be determined by the Commonwealth after consultation with the State.(1)
Clauses 16, 17, 19, 21, 25, 26 and 27 shall apply in relation to this Part as if it formed part of the Scheme.(2)
PART VI
TRANSITIONAL
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24.
Transitional
To the extent the amended Agreement ceases prior to 30 June of a year, action taken under the provisions of this Agreement equivalent to clause 30 and subclause 22(2) of the amended Agreement shall be considered to satisfy also those clauses and that subclause if that action is taken in relation to the financial year ending on the date which, otherwise than for its cessation, would be the date on which a financial year of the amended Agreement would end.(1)
Funds provided to a State by the Commonwealth under the amended agreement that:(2)(a) are held by the State when this agreement comes into force; orand any interest earned on those funds are to be used by the State for the purposes of this agreement.(b) subsequently become available to it;
PART VII
GENERAL
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25.
Expiry and Review
This Agreement shall, subject to earlier termination under subclause (2), terminate on 31 December 2000.(1)
Six months before 31 December 1996, the parties shall complete a review of the operation of the Scheme in relation to all those then party to it in the light of experience of its administration and, if they unanimously resolve to terminate it, this Agreement shall terminate on that date.(2)
Where, on a review from time to time of the operation of the Scheme, the Ministers of the Commonwealth and of the States consider an amendment to the Agreement should be made, the Commonwealth Minister will seek to have the Agreement so amended.(3)
Where support for farmers by a State under contractual commitments entered into by the State pursuant to this Agreement extends beyond the date on which this Agreement terminates, the terms and conditions of that support, and the obligations of the State in relation to that support, will be preserved until those contractual commitments expire.(4)
26.
Exchange of Information
27.
Provision of Information
28.
Loan Council
29.
Cessation of Agreement by a State
IN WITNESS WHEREOF this Agreement has been respectively signed for and on behalf of the Parties as at the day and year above written.
SIGNED by the Honourable SIMON CREAN, Minister for Primary Industries and Energy of the Commonwealth of Australia, in the presence of Richard Eckersley | } | Simon Crean |
SIGNED by the Honourable IAN MORTON ARMSTRONG, Minister for Agriculture and Rural Affairs of the State of New South Wales, in the presence of Michael Roff | } | Ian Armstrong |
SIGNED by the Honourable IAN SMITH for Treasurer of the State of Victoria, in the presence of Peter Coats | } | Ian Smith |
SIGNED by the Honourable WAYNE GOSS, Premier and Acting Treasurer of the State of Queensland, in the presence of Hazel P Hubbard JP | } | Wayne Goss |
SIGNED by the Honourable ERNEST FRANCIS BRIDGE, Minister for Agriculture of the State of Western Australia, in the presence of John Dedman | } | E Bridge |
SIGNED by the Honourable TERENCE ROBERT GROOM, Minister of Primary Industries of the State of South Australia, in the presence of Gracie Portolesi | } | Terence Groom |
SIGNED by the Honourable RAYMOND JOHN GROOM, Premier and Minister for State Development and Resources of the State of Tasmania, in the presence of F M Birkett Executive Officer, Hobart, Tasmania | } | R J Groom |
SIGNED by the Honourable MICHAEL ANTHONY REED, Minister for Primary Industry and Fisheries of the Northern Territory, in the presence of John Anthony Coleman | } | M A Reed |
SIGNED by BILL WOOD, Minister for the Environment, Land and Planning for the Australian Capital Territory, in the presence of Stephen Wallace | } | B Wood |