Bulk Handling of Grain Act Amendment Bill 1983

23 March 1983  p562  LEGISLATIVE COUNCIL

Second Reading

The Hon. C.J. SUMNER (Attorney-General) obtained leave for the Hon. B.A. Chatterton to introduce a Bill for an Act to amend the Bulk Handling of Grain Act, 1955- 1977.

Later:

The Hon. B.A. CHATTERTON (Minister of Agriculture) introduced a Bill for an Act to amend the Bulk Handling of Grain Act, 1955-1977. Read a first time.

The Hon. B.A. CHATTERTON: I move:

That this Bill be now read a second time. The South Australian Co-operative Bulk Handling Ltd is a co-operative venture created under the Bulk Handling of Grain Act, 1955-1977, to establish, maintain and conduct in South Australia, a scheme or system for receiving, handling, transporting and storing of grain in bulk. In providing these functions the co-operative acts on behalf of grain growers, millers, merchants and others concerned in the marketing of grain. The co-operative is obliged to pay rates to 66 councils which have grain silos located in their respective areas. With the advent of recent changes to the bases on which local government may calculate its rates, the cooperative faces substantial increases in this tax, especially where capital value assessments are made.
According to the co-operative, the rates now liable to be paid to some councils are inappropriate and, furthermore, are iniquitous in terms of sharing that tax revenue among the several councils. The co-operative has therefore requested that a Bill to amend its Act be introduced to provide that in lieu of council rates it pay a sum of money to councils, which sum would be indexed for inflation and based on the total storage capacity of silos built in the respective districts. This formula will ensure a more equitable distribution of these funds. Under the arrangement, 43 of the 66 councils will receive more funds while, of the 23 councils to receive less, 13 will be under $ 1 000 difference.
The drafting of this Bill was approved by the previous Government in May 1982 and was intended to come into operation on 1 July 1982. However, the Bill was never approved for introduction. The Bill has the support of the Local Government Association, 53 of 66 rural councils and the United Farmers and Stockowners Association. I seek leave to have the detailed explanation of the clauses inserted in Hansard without my reading it.
Leave granted.

Explanation of Clauses

Clause 1 is formal. Clause 2 inserts new section 18a after section 18 of the principal Act. Subclause (1) provides that, notwithstanding the Local Government Act, the company is not liable to pay to the council for an area in which any bulk handling facilities are situated rates declared as general rates by the council, but shall pay instead an amount determined according to the formula—

A = SC × 5/100 × CPIx/CPI1
where .. (incomplete)