5Funding contract

#### 5 Funding contract (1) The Minister may, on behalf of the Commonwealth, enter into a contract with an eligible body that provides for the Commonwealth to make payments of the following kinds to the body: (a) payments referred to as dairy service payments; (b) payments made in respect of particular financial years, referred to as matching payments. > Note: After a contract has been entered into, the eligible body can be declared as the industry services body under section 7. (2) Before entering into the contract, the Minister must be satisfied that the terms of the contract make adequate provision to ensure that: (a) dairy service payments are spent by the body on marketing, promotion, strategic policy development, research and development activities or other activities, for the benefit of the Australian dairy industry; and (b) matching payments are spent by the body on: (i) research and development activities for the benefit of the Australian dairy industry and the Australian community generally; and (ii) making payments to the Commonwealth under subsection 6(4). (3) The contract does not have to oblige the Commonwealth to pay the full amounts that could be paid out of the money appropriated under section 6. > Note: For example, the contract may provide for payments less than the limits specified in section 6 to take account of the costs of collecting new dairy levy amounts or old dairy levy amounts and to take account of refunds and payments made in error. (4) The contract may include provisions relating to assets and liabilities that are transferred to the body under the Dairy Industry Service Reform Act 2003. This subsection does not impliedly limit the matters that may be included in the contract. (5) This section does not impliedly limit the executive power of the Commonwealth to enter into agreements. (6) The Minister must cause a copy of the contract to be tabled in each House of the Parliament within 14 sitting days of that House after the day on which the contract was entered into. (7) If the contract is varied, the Minister must cause a copy of the contract as varied to be tabled in each House of the Parliament within 14 sitting days of that House after the variation occurred.