CHAPTER 5
Suggested Amendments to the Bill
Suggested amendments and recommendations put foreword in the evidence
5.1 The Wool Council of Australia put forward the following suggestions:
- the adoption of a program of reduced quarterly sales with a minimum 15 000 bale minimum to
ensure the current debt level of WI is not increased; and
- the removal of the exiting debt repayment target date of 30 June 1999 and the extension of the
termination date by 12 months to 31 December 2001 for the final disposal of all stocks. [1]
5.2 In its submission to the inquiry the Victorian Farmers Federation Pastoral Group put forward the
following recommendations:
- That the Rural and Regional Affairs and Transport Reference Committee recommends the removal
of section 20A from the WI Amendment Bill 1998;.
- That the Rural and Regional Affairs and Transport Reference Committee recommends an
amendment to the WI Act 1993 to lower the minimum quarterly sales requirement to a level below
90,000 bales a quarter to a level sufficient to cover interest and operating costs (ie. 15,000
bales/quarter)j;.
- That in the absence of the adoption of recommendation 1 and 2, the Rural and Regional Affairs
and Transport Reference Committee recommends the Federal Government protects wool grower
equity in WI by meeting any costs that would erode WI Equity during the period of the freeze;
- That the Rural and Regional Affairs and Transport Reference Committee recommends the Federal
Government undertakes a formal consultation process with WI Equity holders to ascertain support
or otherwise for privatisation; and .
- That the Rural and Regional Affairs and Transport Reference Committee recommends the Federal
Government undertakes a formal consultation process with WI Equity holders to ascertain support
or otherwise for privatisation.
- That the Rural and Regional Affairs and Transport Reference Committee recommends the removal
of section 22ZG in the WI Amendment Bill 1998 and recommends the costs of privatisation
should rest with the Federal Government. [2]
5.3 The NSW Farmers' Association stated in its submission that WI should be allowed to continue to
make stockpile sales to at least cover ongoing operating costs to ensure that its debt does not continue to
increase. In the view of the Association:
This would enable continued utilisation of existing staff resources and continued
maintenance of existing commercial relationships with other industry players. It would
certainly foster a more successful move to a demutualised structure where the new
company will need to develop sound commercial relationships and a client base. [3]
Footnotes
[1] Submission, Wool Council of Australia, p. 2.
[2] Submission, Victorian Farmers Federation Pastoral Group, p. 2; see also Evidence, Victorian
Farmers Federation Pastoral Group, pp. 25.
[3] Submission, NSW Farmers' Association, p. 4. For further information and support for WI selling a
minimum amount of wool during the freeze to meet their running costs, called the chill approach, see
Evidence, Victorian Farmers Federation Pastoral Group, pp. 26 and Evidence, Wool Council of
Australia, pp. 14-15 and Evidence, Wool Section, Western Australian Farmers Federation, p. 43.