This Act may be cited as the Potato Growing Industry Act, 1950.

In this Act, unless the context otherwise requires,—

There is hereby established a Board to be called the Potato Board.

The Board shall be a body corporate with perpetual succession and a common seal, and shall be capable of holding real and personal property, and of suing and being sued, and of doing and suffering all such other acts and things as bodies corporate may lawfully do and suffer.

Until the appointed day the Board shall consist of seven members to be appointed by the Governor- General on the recommendation of the Minister, of whom—

On the appointed day, the members appointed under paragraph (c) of subsection one of this section shall go out of office and an election shall be held, as hereinafter provided, for three members of the Board.

From the appointed day the Board shall consist of seven members, of whom one shall be the person appointed pursuant to paragraph (a) of subsection one of this section, three shall be appointed as provided by paragraph (b) of subsection one of this section, and three shall be elected as hereinafter provided.

Except as otherwise provided in this Act, the members of the Board shall hold office for a term of three years, but may from time to time be reappointed or re-elected.

With respect to the first members of the Board appointed under paragraph (b) of subsection one of section four of this Act, the following provisions shall apply:—

With respect to the first members elected to the Board the following provisions shall apply:—

The members elected to the Board shall be elected by growers in the manner prescribed by regulations made under this Act.

The Chairman of the Board shall be elected by the Board from among its members at its first meeting, and thereafter at intervals of not less than one year.

In any case in which the Minister is satisfied that any member of the Board is incapacitated by illness, absence, or other sufficient cause from performing the duties of his office the Minister, after consultation with Federated Farmers of New Zealand, Incorporated, if the member was elected or was appointed under paragraph (c) of subsection one of section four of this Act, and with the New Zealand Grain, Seed, and Produce Merchants’ Federation, Incorporated, if the member was nominated by that body, may appoint a deputy to act for the member during his incapacity, and any such deputy shall, while he acts as such, be deemed for all purposes to be a member of the Board.

No appointment of a deputy and no acts done by him as such, and no act done by the Board while any deputy is acting as such, shall in any proceedings be questioned on the ground that the occasion for his appointment had not arisen or had ceased.

Any member of the Board may at any time be removed from office by the Governor-General for disability, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Governor-General, or may at any time resign his office by written notice given to the Minister.

If any member of the Board dies or resigns, or is removed from office, the vacancy shall be deemed to be an extraordinary vacancy.

Except as provided by section ten of this Act, the Governor-General may appoint some person to fill an extraordinary vacancy. Every such appointment shall be made in the same manner as the appointment of the vacating member.

The person appointed to fill an extraordinary vacancy shall be appointed for the residue of the term for which the vacating member was appointed.

The powers of the Board shall not be affected by any vacancy in the membership thereof.

In the event of an extraordinary vacancy in the office of an elective member of the Board the vacancy shall be filled by election in the manner prescribed by regulations made under this Act:

Provided that where any such vacancy occurs within six months before the expiry of the term of office of the member whose office has become vacant, the Board may by resolution determine—

Every person appointed by the Board pursuant to this section shall for all purposes be deemed to have been elected to fill the vacancy.

The first meeting of the Board shall be held on a day to be appointed in that behalf by the Minister.

Subsequent meetings of the Board shall be held at such times and places as the Board from time to time determines.

The Chairman of the Board, or any two members thereof, may at any time call a special meeting of the Board.

At all meetings of the Board the quorum necessary for the transaction of business shall be four members entitled to vote.

The Chairman shall preside at all meetings of the Board at which he is present.

The person appointed pursuant to paragraph (a) of subsection one of section four of this Act may attend all meetings of the Board, but shall not be entitled to vote on any question arising at any such meeting and the Chairman shall have a deliberative vote (unless he is the person so appointed), but shall have no casting vote.

In the absence of the Chairman from any meeting of the Board the members present shall appoint one of their number to be the chairman of that meeting.

All questions arising at any meeting of the Board shall be decided by a majority of the valid votes recorded thereon.

A resolution in writing signed, or assented to by letter or telegram, by all members of the Board entitled to vote shall be as valid and effectual as if it had been passed at a meeting of the Board duly called and constituted.

Subject to the provisions of this Act and of any regulations thereunder, the Board may regulate its procedure in such manner as it thinks fit.

The Board may from time to time appoint such advisory or technical subcommittees as it thinks fit to advise the Board on such matters concerning the potato growing industry as are referred to them by the Board.

Each advisory or technical subcommittee may, in addition, furnish to the Board reports on any matter concerning the potato growing industry in respect of which the members of any such subcommittee have special knowledge or experience.

The Board shall pay to the Chairman and to the members of the Board such remuneration by way of salary, fees, or allowances as the Governor-General in Council from time to time approves, either generally or in any particular case:

Provided that any moneys received pursuant to this subsection by any member who is an officer of the Public Service shall be subject to the provisions of the Public Service Act, 1912.

The Board shall pay to the Chairman and the members of the Board and to the members of any subcommittee appointed by the Board such travelling expenses and such allowances as may from time to time be prescribed by regulations made under this Act or as may be approved by the Minister of Finance in any case to which regulations do not apply.

The principal functions of the Board shall be to ensure that an adequate supply of main crop potatoes shall be available for consumption in New Zealand and for that purpose to enter into contracts with growers for the growing of main crop potatoes and to exercise and perform such functions, powers, and duties in relation to the marketing, distribution, and provision of potatoes as are conferred or imposed on it under this Act.

The Board shall have all the powers and authority necessary, conducive, or incidental to the performance of its functions.

The Board may from time to time fix by way of levy the charges (if any), not exceeding in any case a levy of thirteen shillings a ton, that shall be payable in accordance with this section by growers of main crop potatoes.

Any levy imposed under this section shall be payable only in respect of potatoes grown in such district or districts as the Board from time to time determines.

The Board shall from time to time determine whether the levy shall be payable in respect of table potatoes or seed potatoes or both table and seed potatoes.

Subject to the provisions of this section the levy shall be payable to the Board by all growers of main crop potatoes sold by the grower and of the class or classes in respect of which the Board has determined that a levy shall be payable.

No levy shall be payable under this section in respect of any potatoes sold and delivered by a grower in a lot of not more than one sack containing potatoes of a total weight not exceeding one hundred and eighty pounds if the potatoes are sold to some person for his own use and not for resale in any form.

No levy shall be payable under this section until there has been published in the Gazette a copy of a resolution of the Board—

Any levy payable under this section shall be paid and collected in such manner as may be prescribed by regulations under this Act.

No grower shall sell any potatoes in respect of which a levy is payable under this section and no person shall purchase any such potatoes from the grower unless the levy has been paid by the grower:

Provided that where the levy is payable only in respect of table potatoes, no person shall be deemed to have committed a breach of this subsection if the sale in respect of which the breach is alleged is to a purchaser who intends to use or sell the potatoes as seed potatoes.

All moneys received by the Board, whether by way of levy or otherwise, shall be paid by the Board into a separate account at a bank to be approved by the Minister, and shall be applied by the Board as follows:—

The Board shall not borrow any money, or mortgage or charge any of its property or rights, except with the precedent consent in writing of the Minister of Finance.

For the purpose of enabling the Board to commence to exercise its functions without delay, the Minister of Finance may from time to time, upon such terms and conditions as he thinks fit, advance to the Board, out of moneys to be appropriated by Parliament for the purpose, any moneys required for the payment of any preliminary or general expenses (including salaries) payable by the Board before it has sufficient revenue for the payment thereof.

The Board may from time to time appoint agents to act on its behalf in connection with the entering into of contracts with growers.

The Board, or any of its authorized agents, may from time to time enter into a contract with any person growing potatoes in any district where a levy is payable under this Act, for the growing of main crop potatoes of specified classes on such area as may be specified in the contract.

Except with the approval of the Board, no grower who has entered into a contract under this section shall sell any seed potatoes or table potatoes to which the contract relates produced from the area specified in the contract except to the Board or to a wholesaler authorized in that behalf under section twenty of this Act:

Provided that where any such contract relates only to table potatoes the grower shall not be deemed to have committed a breach of this subsection if he sells any such potatoes to a purchaser who intends to use or sell the potatoes as seed potatoes.

Every contract entered into under this section shall provide that all potatoes to which the contract relates shall, if the terms of the contract have been complied with by the grower, be purchased by the Board or by a wholesaler authorized as aforesaid at prices to be ascertained in accordance with the terms of the contract.

Any contract entered into under this section may contain such provisions (not inconsistent with this Act or with regulations made thereunder) relating to the growing, harvesting, grading, delivery, distribution, storage, or price of the potatoes to which the contract relates as may be agreed upon between the contracting parties.

Nothing in this Act shall be construed to affect the exercise by any person of any power to fix prices in accordance with the Marketing Act, 1936, or the Control of Prices Act, 1947.

The Board may from time to time appoint any person who makes application in that behalf, to be an authorized wholesaler who shall be authorized to purchase from growers and to sell potatoes in respect of which contracts with the Board have been made under this Act.

If any application of any person under this section is refused by the Board and the applicant disputes the decision of the Board, the dispute shall be referred to arbitration, and for that purpose this subsection shall be deemed to be a submission within the meaning of the Arbitration Act, 1908, and the reference shall be deemed to be to two arbitrators.

Any contract which, if made between private persons, must be by deed shall, if made by the Board, be in writing under the common seal of the Board.

Any contract which, if made between private persons, must be signed by the parties to be charged therewith shall, if made by the Board, be either under the common seal of the Board or signed by two members of the Board on behalf of or by direction of the Board.

Any contract which, if made between private persons, may be made orally may be similarly made by or on behalf of the Board by any two members acting by direction of the Board, but no oral contract shall be made for any sum exceeding fifty pounds.

Any instrument executed by an authorized agent on behalf of the Board shall bind the Board, and if executed as a deed shall have the same effect as if it were under the common seal of the Board.

Notwithstanding anything to the contrary in the foregoing provisions of this section, no contract made by or on behalf of the Board shall be invalid by reason only that it was not made in the manner provided by this section, if it was made pursuant to a resolution of the Board or to give effect to a resolution of the Board.

Without limiting any of the powers conferred on the Board by this Act or otherwise howsoever, the Board shall have full authority from time to time to make and carry out such arrangements and give such directions as it thinks proper for any of the following purposes:—

Not later than the fifteenth day of November in each year the Board shall report to the Minister as to the total area in respect of which contracts have been entered into under this Act for the ensuing season.

Not later than the thirtieth day of June in each year the Board shall report to the Minister as to the yield of table potatoes, whether the subject of any contract under this Act or not, expected from the current crop in districts where a levy is payable under this Act.

If, after considering any report made to him under this section and after consultation with the Board, the Minister is of the opinion that the supplies of potatoes in New Zealand available for consumption are or may be insufficient, he may direct the Board to make arrangements for the importation of potatoes and the Board, so far as it is able to do so, shall comply with any such direction.

The Board may appoint such officers as it deems necessary for the efficient carrying out of its functions under this Act.

The Board may make payments to or subsidize the National Provident Fund or any fund or scheme established with the approval of the Governor-General in Council for the purpose of providing superannuation or retiring allowances for its officers and servants.

The accounts of the Board shall be audited by the Audit Office, which for that purpose shall have all such powers as it has under the Public Revenues Act, 1926, in respect of public moneys and public stores and the audit of local authorities’ accounts.

The Board shall, as soon as practicable after the thirtieth day of November in each year, furnish to the Minister a report of its proceedings and operations for the year ending on that date together with a copy of its accounts for that year.

A copy of the report and of the accounts shall be laid before Parliament within twenty-eight days after they have been furnished to the Minister if Parliament is then in session and, if not, shall be laid before Parliament within twenty-eight days after the commencement of the next ensuing session.

The Board shall be exempt from land tax and income tax and from the social security charge.

No member of the Board shall be personally liable for any act or default of the Board done or omitted to be done in good faith in the course of the operations of the Board.

Every person commits an offence against this Act who without lawful excuse acts in contravention of or fails to comply in any respect with any provision of this Act or of any regulations thereunder.

Every person who commits or attempts to commit, or does any act with intent to commit, or counsels, procures, aids, abets, or incites any other person to commit any offence against this Act, or against any regulations made for the purposes of this Act, shall be liable on summary conviction to a fine not exceeding one hundred pounds.

The Governor-General may from time to time, by Order in Council, make all such regulations as may in his opinion be necessary or expedient for giving effect to the provisions of this Act and for the due administration thereof.

Without limiting the general power hereinbefore conferred, it is hereby declared that regulations may be made under this section for all or any of the following purposes:—