Commonwealth Numbered Acts

DAIRY PRODUCE ACT 1986 No. 54 of 1986 - SECT 79

79. (1) Subject to sub-section (4), the Corporation may, for the purpose of
the performance of its functions or the exercise of its powers under this Act
in relation to-

   (a)  the sale or proposed sale of dairy produce by the Corporation; or

   (b)  a borrowing or raising of money by the Corporation or a proposed
        borrowing or raising of money by the Corporation (including a
        borrowing or raising of money by the Corporation by dealing with
        securities), enter into and deal with futures contracts for hedging
        purposes at a futures market (whether at a place in or outside
        Australia).

(2) Subject to sub-section (4), the Corporation may for the purpose of the
performance of any of its other functions or the exercise of any of its other
powers, with the approval in writing of the Minister, enter into and deal with
futures contracts for hedging purposes at a futures market (whether in
Australia or outside Australia).

(3) The Minister may, by determination in writing-

   (a)  set guidelines for the purpose of the exercise by the Corporation of
        its powers under sub-sections (1) and (2); and

   (b)  revoke or vary guidelines set for that purpose or set new guidelines
        for that purpose, and shall give to the Corporation a copy of each
        determination made under this sub-section.

(4) The Corporation shall not enter into or deal with futures contracts
otherwise than in accordance with any guidelines having effect from time to
time under sub-section (3).

(5) A futures contract shall be taken to be entered into or dealt with for
hedging purposes if, and only if, the contract is entered into or dealt with-

   (a)  for the purpose of minimising the risks of variations in the return
        for dairy produce under a contract for the sale of dairy produce that
        has been, or is to be, entered into by the Corporation; or

   (b)  for the purpose of minimising the risks of variations in the costs of
        a borrowing or raising of money by the Corporation or a proposed
        borrowing or raising of money by the Corporation (including a
        borrowing or raising of money or a proposed borrowing or raising of
        money by dealing with securities).

(6) In this section, a reference to securities or to a dealing with securities
has the same meaning as that reference has for the purposes of section 75.