WAMMCO legislation passes through State Parliament

14/3/03
Legislation to transfer the business of the former Western Australian Meat Marketing Corporation (WAMMCO) to the ownership of lamb producers has passed through State Parliament.
Agriculture Minister Kim Chance said the legislation would allow the distribution of shares to take place in accordance with an equity formula - based on a producer's level of patronage with WAMMCO.
The former corporation was a Government-owned statutory marketing authority established under the Marketing of Meat Act 1971.
When the previous government decided to divest itself of involvement in the lamb industry, it introduced amendments to the Act to transfer the business of the corporation to a producers' co-operative, known as the Western Australian Meat Marketing Co-operative Limited.
"Shares in the co-operative were to be issued to trustees for distribution to lamb producers, but the previous amendments to enable the transfer were flawed," Mr Chance said.
"The issue and distribution of the shares did not take place in accordance with the previous Act before it terminated in December 1999 and a new Act had to be drafted.
"Under the formerly proposed legislation, the shares were to be issued to the trustees of a trust that was set up for the benefit of lamb producers and distributed to those producers in accordance with the trust deed.
"But if that had taken place in accordance with the Act as it was, the trustees would have been burdened with a tax liability.
"It was never intended that they should bear that burden, which they would have had no way of meeting. There would also have been negative taxation consequences for producers."
Mr Chance said the new Act resolved this issue by allowing the shares to be issued first to the Minister, on behalf of the State Government, and then transferred to the trustees for distribution in accordance with the trust deed.
Minister's office: 9213 6700