Commonwealth Numbered Acts

WHEAT MARKETING AMENDMENT ACT 1986 No. 82 of 1986 - SECT 7

7. Section 6 of the Principal Act is amended-

   (a)  by omitting from sub-section (1) "currency contracts or futures
        contracts for hedging purposes at a financial market (whether at a
        place in or outside Australia)" and substituting ", whether in or
        outside Australia, contracts to which this section applies for hedging
        purposes"; and

   (b)  by omitting sub-sections (3) and (4) and substituting the following
        sub-sections:

"(3) The Board shall not-

   (a)  enter into or deal with a contract to which this section applies
        otherwise than for hedging purposes; or

   (b)  enter into or deal with a contract to which this section applies
        otherwise than in accordance with the guidelines having effect from
        time to time under sub-section (2).

"(4) A contract to which this section applies shall be taken to be entered
into for hedging purposes if, and only if, the contract is entered into or
dealt with for the purposes-

   (a)  of minimising the risks of adverse variations in the price obtainable
        for wheat under a contract for the sale of wheat that has been, or is
        to be, entered into by the Board; or

   (b)  of minimising the risks of adverse variations in the costs of a
        borrowing or raising of moneys by the Board or a proposed borrowing or
        raising of moneys by the Board (including a borrowing or raising of
        moneys by dealing with securities).

"(5) This section applies to contracts of the following kinds:

   (a)  currency contracts;

   (b)  futures contracts;

   (c)  contracts relating to dealings known as interest swaps;

   (d)  contracts relating to dealings known as currency swaps;

   (e)  contracts relating to both dealings referred to in paragraph (c) and
        dealings referred to in paragraph (d);

   (f)  such other contracts as are approved by the Minister by notice in
        writing given to the Board.".