Sugar Agreement Act 1979

No. 183 of 1979

An Act to approve an agreement relating to sugar and certain sugar products made between the Commonwealth and the State of Queensland, and for other purposes.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title

1. This Act may be cited as the Sugar Agreement Act 1979.

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Section 6 shall be deemed to have come into operation on 1 October 1979.

Repeal

3. The Sugar Agreement Act 1971 is repealed.

Approval of agreement

4. The Agreement relating to sugar and certain sugar products made on 1 October 1979 between the Commonwealth and the State of Queensland, being the Agreement a copy of which is set out in the Schedule, is approved.

Prohibition of importation of sugar, golden syrup and treacle

5. (1) The importation of sugar, golden syrup and treacle into Australia, except with the consent in writing of the Minister or an authorized officer, is prohibited.

(2) Sugar, golden syrup and treacle imported into Australia in contravention of sub-section (1) shall be deemed to be prohibited imports within the meaning of the Customs Act 1901 and the provisions of that Act relating to prohibited imports apply to sugar, golden syrup and treacle so imported.

(3) In sub-section (1), “authorized officer” means an officer of the Department of State that deals with matters arising under this Act authorized in writing by the Minister to give consents under this section.

Certain interest to be credited to the Trust Fund

6. Interest or other income derived from the investment of moneys placed to the credit of the Trust Fund kept in accordance with section 60 of the Audit Act 1901 under the heading “Fruit Industry Sugar Concession Committee Fund” in accordance with sub-clause 10 (11) of the Agreement referred to in section 4 of this Act shall be paid to the credit of the Trust Fund under that heading.

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SCHEDULE Section 4

SUGAR AGREEMENT 1979

AN AGREEMENT made this first day of October, One thousand nine hundred and seventy-nine between—

THE COMMONWEALTH OF AUSTRALIA (in this agreement called “the Commonwealth”) of the one part, and

THE STATE OF QUEENSLAND (in this agreement called “the State”) of the other part.

WHEREAS—

(A) by various agreements made between the Commonwealth and the State as varied or extended from time to time by agreements supplemental thereto, provision has been made, amongst other things, for the State to make sugar and other sugar products available during the agreed periods, at the prices and upon the terms and conditions respectively specified in the agreements;

(B) it has been agreed between the Commonwealth and the State that the Sugar Agreement 1975 as varied from time to time would continue to apply with respect to the period commencing on the first day of July 1979 and ending on the date, not being later than the 30th September 1979, on which this agreement comes into force; and

(C) the Commonwealth and the State desire to make further provision, amongst other things, for the State to make sugar and other products available during the period which commences upon the expiration of the Sugar Agreement 1975 and ends on the 30th June 1984 and for the prices at which and the terms and conditions upon which the sugar and other products will be made available:

NOW IT IS HEREBY AGREED as follows:

Definitions

1. (1) In this agreement, unless the contrary intention appears—

“the agreed period” means the period which commences on the 1st October 1979 and ends on the 30th June 1984;

“the ESC” means the Export Sugar Committee for which provision is made in clause 12;

“the FISCC” means the Fruit Industry Sugar Concession Committee for which provision is made in clause 9;

“the Minister” means the Minister for Primary Industry of the Commonwealth or such other Minister as may be nominated in writing by the Prime Minister for the purpose of the administration of this agreement;

“the Sugar Agreement 1975” means the agreement made between the Commonwealth and the State on the 30th January 1975 as varied and extended from time to time;

“the International Sugar Agreement” means the agreement known as the International Sugar Agreement 1977, ratified by Australia under the International Sugar Agreement Act 1978, or any agreement substituted for that Agreement;

“the Sugar Board” means The Sugar Board established by Proclamation under the Sugar Acquisition Act of 1915 of the State of Queensland; and

“the Treasurer” means the Treasurer of the Commonwealth.

(2) Where in this agreement a Minister of the Commonwealth is referred to, the reference includes a Minister of the Commonwealth who is for the time being acting for and on behalf of the Minister to whom the reference relates.

(3) A reference in this agreement to a Department of the Commonwealth shall, in the event that at any time the name of the Department referred to be changed or the relevant functions of the Department referred to are allocated to another Department, be read as a reference to the Department under its changed name or to the Department to which those functions are allocated, as the case may be.

(4) Unless a contrary intention appears, a reference in this agreement to a clause is to the relevant clause of this agreement and a reference to a sub-clause is to the relevant sub-clause of the clause in which the reference appears.

(5) Words importing the masculine gender include the feminine.

SCHEDULE—continued

Commencement

2. This agreement shall come into operation on the 1st October 1979.

Completion of Sugar Agreement 1975

3. Any obligation or function of the FISCC and the ESC appointed under clause 9 and clause 12 respectively of the Sugar Agreement 1975 that has arisen under that agreement or any extension of that agreement and remains unfulfilled or unperformed at the commencement of this agreement shall be fulfilled or performed by the FISCC and the ESC respectively in all respects as if the FISCC and the ESC had been appointed under the Sugar Agreement 1975.

Acquisition of Raw Sugar

4. The State shall under its statutory powers in that behalf acquire all raw sugar manufactured from sugar cane grown in Queensland during the seasons of 1979-80, 1980-81, 1981-82, 1982-83 and 1983-84 other than such quantity of raw sugar, not exceeding one per centum of the total quantity of raw sugar manufactured during each of the said seasons in any mill where raw sugar is manufactured, as the owner of any such mill shall desire to retain, use and dispose of for consumption in his mill district.

Purchase of Raw Sugar

5. The State shall purchase all raw sugar manufactured from sugar cane grown in New South Wales during the seasons of 1979-80, 1980-81, 1981-82, 1982-83 and 1983-84.

Sugar Supply and Prices

6. (1) The State shall during the agreed period make sugar and other sugar products available for sale at Australian refineries and at suitable distribution centres in Darwin, Hobart and Launceston, under payment terms determined by the Sugar Board, at prices not exceeding, in respect of grades of sugar or sugar products, the maximum prices for those grades of sugar or those sugar products fixed by or ascertained in accordance with this clause.

(2) In respect of the period commencing on 1st October 1979 and ending on 30th June 1980—

(a) the maximum price for refined bulk sugar of IXD grade, for such minimum delivery quantity as is determined by the Sugar Board for payment within seven days of delivery, is $353 per tonne; and

(b) maximum prices for other IXD grade sugar, other grades of sugar, and golden syrup and treacle shall be fixed at amounts which vary from the maximum price fixed in paragraph (a) for refined bulk sugar of IXD grade to, but only to, the extent of the proportionate value of sugar in the respective products and in so far as costs of refining, packaging, storing and delivery of the products at refinery, or, in the case of supply in Darwin, Hobart and Launceston, at suitable distribution centres, exceed or are less than the equivalent costs for refined bulk sugar of IXD grade.

(3) In respect of each year in the agreed period commencing with the year that begins on 1st July 1980, the maximum price for refined bulk sugar of IXD grade shall, unless otherwise agreed between the Commonwealth and the State and subject to sub-clause (4), be ascertained by adding to or subtracting from, according as the Index referred to in I below for the second of the March quarters by reference to which the calculation of I is to be made in respect of that year increases or decreases in relation to that of the immediately previous March quarter, the price fixed or ascertained for the immediately previous year of the agreed period an amount calculated in accordance with the formula P x I x E x C, where—

P is the maximum price per tonne of refined bulk sugar of IXD grade applicable under this clause at 30th June immediately preceding the year in respect of which the price is to be ascertained;

I is the percentage change in the Consumer Price Index (all groups—weighted average of seven capital cities) for the March quarter immediately prior to the year in respect of which the price is being ascertained, compared to the corresponding Index for the previous March quarter;

E is the ratio of the average return on exports within mill peaks in the season that precedes the season immediately prior to the year in respect of which the price is to be ascertained to that same average return in the season immediately prior to that year; and

C is 0.7, the number which is deemed to be the ratio of the cash costs of the industry as they relate to the supply of refined sugar to the domestic market, to the total costs (including Sugar Board costs) of the industry for the purposes of this sub-clause.

SCHEDULE—continued

(4) The movement in maximum price, between two successive years of the agreed period shall not when expressed as a percentage, exceed the value of I in sub-clause (3) used in calculating the maximum price for the second of those years.

(5) The maximum prices of all grades of sugar other than refined bulk sugar of IXD grade and of golden syrup and treacle shall be ascertained in respect of the year commencing 1st July 1980 and in respect of each subsequent year of the agreed period commencing on 1st July at amounts which may vary from the maximum price ascertained for the same year for refined bulk sugar of IXD grade only to the extent permitted in sub-clause 2(b).

Production Controls and International Arrangements

7. (1) The State shall from time to time during the agreed period take or cause to be taken such action—

(a) in relation to mill quotas and farm peaks; and

(b) under the Regulation of Sugar Cane Prices Act 1962-1972 in relation to the assignment of lands,

as is necessary effectively to control the total production of raw cane sugar and for that purpose may amend those quotas or peaks or that Act, or adopt any other measure which it thinks fit.

(2) The State shall from time to time during the agreed period take or cause to be taken such action as is necessary to fulfil the obligations of the Commonwealth in respect of export quotas and stockholding requirements and of the financing of special stocks undertaken by Australia under the International Sugar Agreement.

Hobart Sugar Depot

8. The State, if and when requested by the Commonwealth, shall establish a sugar depot at Hobart but the Commonwealth shall not make such a request unless the request be accompanied by evidence proving that a general shortage of sugar has occurred in Hobart which is due to wholesale merchants in Hobart or the Sugar Board failing to adhere to present arrangements whereby special reserve stocks of sugar are supplied to and held by such merchants.

Constitution of the FISCC

9. (1) For the purpose of this agreement there shall be a committee to be known as the Fruit Industry Sugar Concession Committee.

(2) The members of the FISCC shall be appointed by the Minister and shall be composed of one representative of each of the following—

(a) the Department of Primary Industry;

(b) the Sugar Board;

(c) the growers of canning fruits;

(d) the growers of non-canning fruits;

(e) the co-operative and State manufacturers of fruit products; and

(f) the proprietary manufacturers of fruit products.

(3) The representative of the Department of Primary Industry and the representative of the Sugar Board shall be Chairman and Deputy Chairman respectively of the FISCC and each of the other members shall be nominated in a manner approved by the Minister.

(4) Four members of the FISCC present at any meeting shall constitute a quorum and in the event of the voting on any matter being equal the Chairman of the FISCC or in his absence the Deputy Chairman, or in the absence of both, the person appointed by the FISCC to act as Chairman, may exercise a casting vote as well as a deliberative vote.

(5) The Chairman may and, if the Minister so directs, shall invite a representative of a section of the fruit growing or fruit processing industries to attend a meeting of the FISCC and a representative so invited may then attend and take part in the proceedings of the meeting but shall not be entitled to vote or be counted in a quorum.

(6) A member of the FISCC may appoint a proxy approved by the Minister to attend a meeting in his place and a proxy so appointed shall be deemed to be that member for the purposes of that meeting.

SCHEDULE—continued

The FISCC Fund

10. (1) The State on behalf of the Australian cane sugar industry shall during the agreed period assist the Australian manufactured fruit industry by creating a fund (in this agreement called “the FISCC fund”) which shall comprise the total amount remaining in the fund created under sub-clause 10 (1) of the Sugar Agreement 1975 as at the expiry of that agreement and such contributions by the State as are required from time to time to meet the FISCC’s commitments under sub-clauses (2) and (4) during the agreed period as certified by the Chairman of the FISCC, provided that the credit balance of the fund shall not exceed Two hundred thousand dollars ($200,000) or such other sum as may at any time be agreed upon by the Commonwealth and the State.

(2) The FISCC shall defray out of the FISCC fund the expenses of the FISCC including—

(a) administrative expenses;

(b) fees of committee members and their proxies;

(c) fees of persons commissioned to carry out functions including advice and investigations on behalf of the FISCC but, except as otherwise determined by the Chairman of the FISCC, not fees of representatives invited to attend meetings of the FISCC pursuant to sub-clause (5) of clause 9;

(d) salaries of staff members;

(e) fares, travelling allowances and related direct expenses of committee members, proxies, staff members and representatives, including representatives invited to attend meetings of the FISCC pursuant to sub-clause (5) of clause 9, travelling on approved FISCC business;

(f) costs of office rent, printing, stationery and requisites;

(g) costs of investigation work; and

(h) the cost of such insurance as the FISCC thinks fit to arrange, the authority of the FISCC in which behalf is hereby acknowledged, covering all those committee members, proxies, staff members and representatives in respect of whom the FISCC is authorized by this sub-clause to defray travelling allowances, against the risk of personal injury or death suffered or incurred while engaged or travelling on FISCC business.

(3) The amounts of fees and the rates of travelling allowances payable pursuant to paragraphs (b), (c) and (e) of sub-clause (2) shall be as approved from time to time by the Minister.

(4) The FISCC shall, subject to the provisions of this clause and subject to such other conditions as it may see fit to impose, pay to manufacturers who use Australian refined cane sugar in the manufacture of such fruit products as are at the time of manufacture or payment approved by the FISCC for the purposes of this sub-clause a rebate of Fifteen dollars ($15.00) per tonne in respect of the Australian refined cane sugar so used during the agreed period.

(5) Any funds standing to the credit of the FISCC fund after all defrayals in accordance with sub-clauses (2) and (4) of this clause have been made following the expiry of this agreement shall be paid to the State unless otherwise agreed between the Commonwealth and the State.

(6) The FISCC may from time to time declare a minimum price to apply to any Australian fresh fruit during the period and subject to the conditions expressed in the declaration and may from time to time nominate processors from whom fruit pulp, fruit juice or pure fruit essence made from Australian fresh fruit in respect of which it has so declared a minimum price may be purchased.

(7) The rebate referred to in sub-clause (4) shall not be payable to a manufacturer unless in the opinion of the FISCC—

(a) all the fresh fruit used by the manufacturer or purchased for the manufacturer to use for such processing purposes as the FISCC determines has been or will be paid for within such period of time as the FISCC determines, at a price not less than the said declared price; or

(b) the fruit pulp, fruit juice or pure fruit essence so used has been purchased from a processor so nominated.

(8) Where a manufacturer has complied with all the conditions subject to which a rebate under sub-clause (4) is payable, other than the condition contained in sub-clause (7) relating to the payment of a declared price for Australian fresh fruit, the FISCC may advance the

SCHEDULE—continued

whole or such part, as the FISCC determines, of the rebate that would have been payable to the manufacturer if the condition contained in sub-clause (7) had been complied with. The FISCC may impose such conditions for the manner and making of the advance as the FISCC thinks fit including a condition that the amount of such an advance or advances shall be repayable by the manufacturer to the FISCC if such declared price is not paid in full within such period or periods of time as may be fixed by the FISCC in connection with the making of the advance or advances.

(9) The FISCC may impose a condition whereby a grower of the fruit specified in sub-clause (6) shall be paid interest on such amounts and at such rates as determined by the FISCC where payment of the declared price is not made to the grower by the purchaser of the fruit within a period fixed by the FISCC. The rebate payable under sub-clause (4) shall not be paid until the FISCC is satisfied that such interest has been paid.

(10) The FISCC may prepare maintain and publish as it thinks fit a list to be known as the “FISCC PULPERS’ LIST” and, subject to any conditions expressed in the list, each processor whose name for the time being appears on the list shall be deemed to have been duly nominated by the FISCC in accordance with and for the purposes of sub-clause (6).

(11) Without prejudice to the power of the FISCC to withdraw all or part of the moneys in the FISCC fund for disposition in accordance with this agreement, the FISCC may place all or part of the moneys in the FISCC fund to the credit of the Trust Fund under section 60 of the Audit Act 1901 under the heading “Fruit Industry Sugar Concession Committee Fund” and any moneys in the FISCC fund not required for the time being for any payments under this clause may be invested in such manner as the Treasurer from time to time approves. Moneys in the FISCC fund which are not held by the Commonwealth on behalf of the FISCC may be lodged by the FISCC on fixed deposit with the Reserve Bank of Australia or invested by the FISCC in any of the securities prescribed by section 62b of the Audit Act 1901. Interest or other income derived from moneys invested shall be paid to the credit of the FISCC fund.

FISCC Annual Report

11. The Chairman of the FISCC shall, in respect of each year ending on the thirtieth day of June, and as soon as reasonably practicable thereafter, furnish to the Minister for presentation to the Commonwealth Parliament a report of the work of the FISCC including statements of receipts and payments by the FISCC under this agreement which have been reported on by the Auditor-General for the Commonwealth or by an officer authorized by the Auditor-General to do so.

The Export Sugar Committee

12. (1) For the purposes of this agreement there shall be a committee to be known as the Export Sugar Committee.

(2) The members of the ESC shall be appointed by the Minister and shall consist of one representative of each of the following—

(a) the Department of Primary Industry;

(b) the Sugar Board; and

(c) the manufacturers of exported products containing sugar.

(3) The representative of the Department of Primary Industry shall be Chairman of the ESC.

(4) The representative of the manufacturers of exported products containing sugar shall be nominated in a manner approved by the Minister.

(5) A member of the ESC may appoint a proxy approved by the Minister to attend a meeting in his place and a proxy so appointed shall be deemed to be that member for the purpose of that meeting.

Functions of the ESC

13. The functions of the ESC shall be—

(a) to determine in respect of each month of the agreed period on the bases set out in clause 19 the rebates referred to in sub-clause (1) of clause 15 and in sub-clause (1) of clause 18;

SCHEDULE—continued

(b) to prescribe the manner and form in which claims may be made by exporters and manufacturers for the rebates payable under sub-clause 15 (1) and sub-clause 18 (1);

(c) to consider and make recommendations to the State on claims of exporters and manufacturers for the rebates payable under sub-clause 15 (1) and sub-clause 18 (1);

(d) to determine the Australian cane sugar content of goods exported from Australia in such circumstances and applying such criteria as the ESC thinks fit;

(e) to draw up and publish as the ESC thinks fit rules for determining for the purposes of this agreement the date on which manufactured goods or products were exported from Australia; and

(f) to exercise such other powers and do such other acts in connection with the export of goods and products containing Australian cane sugar or in connection with rebates in respect of such export as this agreement provides for it to exercise or do or as the State for the purposes of this agreement requests it to exercise or do.

The ESC Fund

14. (1) The State shall create a fund (in this agreement called “the ESC fund”) which shall comprise the total amount remaining in the fund created under sub-clause 14 (1) of the Sugar Agreement 1975 as at the expiration of that agreement, and such further contributions by the State as are required from time to time during the agreed period to meet the ESC’s commitments under sub-clause (2) as certified by the Chairman of the ESC, provided that the credit balance of the fund shall not exceed Two thousand dollars ($2,000).

(2) The ESC shall defray out of the ESC fund the expenses of the ESC including such expenses as are of the same nature in respect of the ESC’s activities as those set out in sub-clauses 10 (2) and 10 (3) are in respect of the FISCC’s activities.

(3) Any funds standing to the credit of the ESC fund after all defrayals in accordance with sub-clause (2) have been made following the expiry of this agreement shall be paid to the State unless otherwise agreed between the Commonwealth and the State.

Rebate on Exports of Fruit Products

15. (1) Subject to the provisions of this clause and of clause 20 the State shall, in respect of the Australian refined cane sugar content, being the content determined by the ESC in accordance with paragraph (d) of clause 13, of fruit products for the time being approved by the FISCC under sub-clause 10 (4) which are manufactured from Australian fruit by a manufacturer approved by the FISCC and which are exported from Australia during the agreed period, pay to the exporter or, if the ESC thinks fit on special grounds, to the manufacturer instead, a rebate of the amount of the excess, if any, of the cost of that sugar content calculated at the relevant price of refined bulk sugar of 1XD grade ascertained in accordance with clause 6 less the rebate shown in sub-clause 10 (4) over the cost of that sugar content calculated at the Australian equivalent of the world sugar parity price at the rates determined from time to time by the ESC in accordance with clause 19.

(2) A rebate referred to in sub-clause (1) shall not be payable unless—

(a) there has been paid or an undertaking satisfactory to the FISCC has been given that there will be paid a price which is not less than the price declared by the FISCC under sub-clause 10(6) for the Australian fresh fruit and for the Australian fresh fruit content of the fruit pulp, fruit juice or pure fruit essence used by the manufacturer or purchased for the manufacturer to use, being in either case the manufacturer of the fruit products to which the rebate relates, for such processing purposes as the FISCC from time to time determines; and

(b) the exporter or manufacturer claiming the rebate complies with such further conditions as the ESC thinks fit to impose including a condition requiring the exporter and the manufacturer of the fruit products the subject of the claim to permit any officer of the Department of Business and Consumer Affairs of the Commonwealth and such other persons as are for the time being authorized in that behalf by the ESC to enter and inspect during reasonable hours the premises and such books, documents and records of the exporter and the manufacturer as the ESC may reasonably require to have inspected for the purposes of this agreement and to provide reasonable assistance for those purposes.

SCHEDULE—continued

(3) The FISCC may, for the purposes of sub-clause (1) prepare, maintain and publish as it thinks fit a list to be known as the “FISCC EXPORT MANUFACTURERS’ LIST” and subject to any conditions expressed in the list, each manufacturer whose name for the time being appears on the list shall be deemed to have been duly approved by the FISCC.

(4) Where the ESC reports to the State that the circumstances relating to the destination of a fruit or class of fruit product upon export are such as to warrant a reduction of the rebate provided for under sub-clause (1), the rebate may be reduced by the State by such amount as the ESC recommends having regard to those circumstances.

(5) If a claim by an exporter or manufacturer for payment of a rebate under sub-clause (1) is not lodged with the person for the time being nominated in that behalf by the ESC within six months after the date of export of the relevant fruit products the State may pay the rebate but, unless the ESC recommends payment, will not be bound to do so and a rebate under sub-clause (1) is not payable if the ESC is of the opinion that its payment is not justified because of the small amount of the relevant claim or the administrative expense of establishing its correctness.

Use of Australian Materials

16. The rebates referred to in sub-clause 10(4) and sub-clause 15(1) shall be paid only in respect of completely processed fruit products which in the opinion of the FISCC have been made entirely with Australian materials where available and are substantially manufactured from Australian fruit.

Decisions and Commitments of Former FISCC

17. Except as otherwise provided in this agreement the FISCC or the State as appropriate under the terms of this agreement shall be bound by the decisions and commitments made pursuant to the Sugar Agreement 1975 by the FISCC appointed under that agreement.

Rebate on Export of Other Products

18. (1) Subject to the provisions of this clause and of clause 20, the State shall in respect of the Australian cane sugar content, being the content determined by the ESC in accordance with paragraph (d) of clause 13, of such manufactured goods, except fruit products referred to in sub-clause 15(1), as are determined from time to time by the Minister on the recommendation of the ESC and are during the agreed period exported from Australia, pay to the exporter or, if the ESC thinks fit on special grounds, to the manufacturer instead a rebate of the amount of the excess, if any, of the cost of such sugar content calculated at the relevant price ascertained in accordance with clause 6 over the cost of such sugar content calculated at the Australian equivalent of the world sugar parity price at the rates determined from time to time by the ESC in accordance with clause 19.

(2) Where the ESC reports to the State that the circumstances relating to the destination of particular goods or a particular class of goods upon export are such as to warrant a reduction of the rebate provided for under sub-clause (1), the rebate may be reduced by the State by such amounts as the ESC recommends having regard to those circumstances.

(3) Where the goods exported consist of completely processed fruit products manufactured in Australia which have not been made entirely with Australian materials where available or are not substantially manufactured from Australian fruit, but which would have qualified as fruit products for the purposes of sub-clause 15(1) if they had been so made and substantially so manufactured, a rebate under this clause in respect of the Australian refined cane sugar content of those goods shall, if the Minister on the recommendation of the ESC so directs or approves, be reduced by an amount calculated at the rate of rebate provided in sub-clause 10(4).

(4) If a claim by an exporter or manufacturer for payment of rebate under this clause is not lodged with the person for the time being nominated in that behalf by the ESC within six months after the date of export, the State may pay the rebate but, unless the ESC recommends payment, will not be bound to do so and a rebate under this clause is not payable if the ESC is of the opinion that its payment is not justified because of the small amount of the relevant claim or the administrative expense of establishing its correctness.

(5) A rebate referred to in sub-clause (1) shall not be payable unless the exporter or manufacturer claiming the rebate complies with such other conditions as the ESC thinks fit to impose, including a condition requiring the exporter and the manufacturer of the good the subject of the claim to permit any officer of the Department of Business and Consumer Affairs of the Commonwealth and such other persons as are for the time being authorized in that behalf by the ESC to enter and inspect during reasonable hours the premises and such books,

SCHEDULE—continued

documents and records of the exporter and the manufacturer as the ESC may reasonably require to have inspected for the purposes of this agreement, and to provide reasonable assistance for those purposes.

World Parity Price for Sugar

19. (1) The Australian equivalent of the world sugar parity price in respect of Australian cane sugar contained in manufactured goods or products exported during the agreed period shall be the lower of—

(a) the lowest c.i.f. and e. cost in Australia of foreign raw sugar semi-refined (i.e. mill white) sugar or refined sugar as may be determined by the ESC brought to terms of equality with the grade of Australian cane sugar content of such manufactured goods; or

(b) the estimated cost, as may be determined by the ESC, of cane sugar in Australia based on the price of foreign raw sugar, bulk basis for prompt supply as quoted on an internationally recognized sugar exchange, brought to a c.i.f. and e. basis at an Australian east coast refinery port.

(2) For the purposes of this clause—

(a) allowance should be made for loss and deterioration of such sugar in transit and for other costs consistent with normal commercial practices such as interest, handling charges and delivery;

(b) if foreign raw sugar is taken for the purpose of price comparison with Australian refined cane sugar, the following items shall be added to the c.i.f. and e. cost of foreign raw sugar—

(i) Australian refinery costs; and

(ii) refinery processing loss;

(c) Australian duties of Customs and other Australian taxes shall be excluded from calculations;

(d) with reference to paragraph (a) of sub-clause (1), the foreign sugar submitted for the purpose of price comparison should be reasonably obtainable in Australia under normal trading and shipping conditions.

Sugar Rebate Options

20. (1) The ESC may, in such manner and subject to such conditions as it thinks fit to impose, grant to exporters or manufacturers of manufactured goods or products containing Australian cane sugar options whereunder such exporters or manufacturers may elect to accept for periods not exceeding twelve months the rates of rebate determined by the ESC in respect of any month.

(2) When an exporter or manufacturer has been granted an option under sub-clause (1), any rebate payable to the exporter or manufacturer under sub-clause 15 (1) or under sub-clause 18 (1) shall, subject to this agreement and to the conditions on which the option was granted, be calculated as if either sub-clause 15 (1) or sub-clause 18 (1), as the case may be, provided that the rebate was to be paid at the rate determined by the ESC in respect of the month selected under the option.

Prohibition of Importation of Sugar

21. The Commonwealth shall continue to prohibit the importation of sugar, golden syrup and treacle at least until the 30th June 1984 except—

(a) any foreign sugar that the Commonwealth may after consultation with the State consider to be necessary to meet any deficiency or shortage of sugar in Australia;

(b) any kind of foreign sugar of a quality not available in Australia that may be required for special manufacturing purposes;

(c) any foreign sugar that is temporarily landed in Australia for export to a destination outside Australia;

(d) small quantities of foreign sugar of a kind not readily available in Australia that may be required for scientific research or experimental purposes; and

(e) any Australian sugar that has been returned to Australia.

SCHEDULE—continued

IN WITNESS WHEREOF this agreement has been executed as at the day and year first above written.