Bills Digest No. 34 2001-02
Wool International Amendment Bill 2001
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Wool International Amendment Bill
2001
Date Introduced: 9 August 2001
House: House of Representatives
Portfolio: Agriculture, Fisheries and Forestry
Commencement: Royal Assent
To amend the
Wool International Act 1993 to enable WoolStock Australia
Ltd to bring forward its winding up and final cash distribution to
shareholders.
On 10 August 2001 the Chairman of WoolStock
Australia Ltd, Mr Donald McGauchie, announced to the Sydney Stock
Exchange that the last bale of the wool stockpile had been
sold.(1) At its peak in 1990-91 the stockpile reached
almost five million bales.
The wool stockpile was the result of the
industry's attempt to eliminate the highs and lows in wool prices
by setting up a reserve price scheme almost 30 years ago. Under the
scheme, any wool that failed to reach a minimum price was bought
back by growers. In 1988 the industry increased the minimum price,
at the same time as there was a large fall in the world market for
wool. In 1991 the reserve price scheme was abandoned. A statutory
authority called Wool International was established by the
Commonwealth Government in 1993 to sell off the stockpile in an
orderly manner. For a history of the gradual sale of the stockpile
see Bills Digest No. 160, 1998-99 on the Wool International
Privatisation Bill 1999.(2) In 1999, when the stockpile
was about one million bales, control over its sale was passed to
WoolStock Australia Ltd, a public company owned by
woolgrowers.(3) The objectives of WoolStock are to
dispose of the stockpiled wool, discharge the debts of the company
and distribute surplus monies to its shareholders.(4) At
31 December 2000 the stockpile had been reduced to slightly more
than 550 000 bales. WoolStock made a cash distribution to
shareholders of 20 cents per unit in September 2000, and a second
cash distribution of 20 cents per unit in March
2001.(5)
The effect of this Bill will be to wind up
WoolStock Australia Ltd as soon as practicable after the last of
the stockpile has been disposed of, instead of after the end of the
financial year in which the stockpile sales are completed, as is
currently required by section 22P of the Wool International Act
1993. According to the Explanatory Memorandum, WoolStock
Australia Ltd will need to undertake activities such as preparing
its final accounts, having them audited and signed off by its
Board.(6) Once these steps have been completed,
WoolStock Australia Ltd can be wound up and a final distribution of
surplus money made to its shareholders.
The effect of item 1 of
Schedule 1 is to enable WoolStock Australia Ltd to
make the final distribution of money to its shareholders as soon as
practicable after the sale of the last of the wool stockpile.
-
- 'Last bale of stockpile wool sold', WoolStock Australia Ltd,
Media Release, 10 August 2001.
- 'Wool International Privatisation Bill 1999', by Ian Ireland,
Bills Digest No. 160, 1998-99 at http://www.aph.gov.au/library/pubs/bd/1998-99/99bd160.htm
- Wool International Privatisation Act 1999 Act No. 40
of 1999. WoolStock commenced on 1 July 1999.
- WoolStock Australia Ltd, Director's Half Yearly Report [to
31 December 2000], 2 March 2001, p. 2 at http://www.woolstock.com.au/keydocs/half_year.html
- ibid., p. 1 at http://www.woolstock.com.au/keydocs/half_year.html
- Explanatory Memorandum, Wool International Amendment
Bill 2001, p. 3.
Rosemary Bell
27 August 2001
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to
Senators and Members of the Australian Parliament. While great care
is taken to ensure that the paper is accurate and balanced, the
paper is written using information publicly available at the time
of production. The views expressed are those of the author and
should not be attributed to the Information and Research Services
(IRS). Advice on legislation or legal policy issues contained in
this paper is provided for use in parliamentary debate and for
related parliamentary purposes. This paper is not professional
legal opinion. Readers are reminded that the paper is not an
official parliamentary or Australian government document.
IRS staff are available to discuss the paper's contents with
Senators and Members
and their staff but not with members of the public.
ISSN 1328-8091
© Commonwealth of Australia 2000
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
2001.
Back to top