Series VPRS 11339
Loan Council: Reports and Papers
About this Series Related Series Accessing the records in this Series
Date Range: Series ? 1977 - ? 1989
  Series in Custody 1977 - 1989
  Contents 1977 - 1989
Public Access: Open
Location: North Melbourne
Format of Records: Physical
 
Agency which created this SeriesAgency which created this Series
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Date Range Agency Title Agency Number
1977 - 1982 Department of the Treasurer (also known as Treasury and Treasurer's Office) VA 865
1982 - 1989 Department of Management and Budget VA 1022
Agency currently responsible for this SeriesAgency currently responsible for this Series
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Date Range Agency Title Agency Number
1995 - cont Department of Treasury and Finance VA 3745
Description of this SeriesDescription of this Series
  • How to use the Records
    Refer to the Records Description List to identify items of interest .

  • Function / Content
    This series comprises volumes and files containing copies of reports and papers presented to meetings of the Australian Loan Council for the years 1977 to 1989.

    Establishment of the Australian Loan Council

    In 1923, the Commonwealth proposed to the States that a Loan Council be established on an informal and voluntary basis to regulate the impact of government borrowing on the Australian capital market, especially in respect to the timing of loans, the rates of interest offered and other terms relating to loan issues. This proposal was accepted by the States with the first meeting of the voluntary Loan Council occurring in February 1924.

    In June 1927, the Commonwealth submitted to the States the draft of a proposed financial agreement under which the Commonwealth would provide:

    fixed contribution towards interest charges on State debts taken over by the Commonwealth,
    a sinking fund contribution,
    increased interest on transferred properties
    establishment of a statutory Loan Council to control public sector borrowing.

    The Commonwealths Financial Agreement Validation Act 1929 made the 1927 Financial Agreement effective and validated all decisions made from 1 July 1927 to 30 June 1929, which were deemed to have been taken under the Financial Agreement as now approved.

    In May 1936,what became known as the Gentlemens Agreement was adopted by the Loan Council. This Agreement consolidated a number of resolutions and decisions of the Loan Council made in previous years. It provided for Loan Council regulation for borrowings by semi-government and local government authorities, with respect to borrowings and terms and conditions of loans. Thus the Gentlemens Agreement extended Loan Council control to borrowing by semi-government and local government authorities.

    The Financial Agreement Act 1944 revised, consolidated and amended the 1927 Financial Agreement. The Financial Agreement Act 1966 was concerned with certain amendments to the 1944 Agreement arising from the introduction of the new Australian decimal or dollar currency in that year.

    The Loan Council has provided since 1927 for the co-ordination and regulation of the terms and conditions of public sector borrowing, the timing of loan issues, the determination of the aggregate borrowing programme and the distribution of this programme between governments.

    Operations of the Loan Council

    The Loan Council is primarily involved in the co-ordination of policy on public sector borrowing. It does not control public sector capital expenditure.

    Membership of the Council

    Technically the membership of the Council comprises the Prime Minister and the six State Premiers. However it is customary for the Prime Minister to nominate the Treasurer as the representative of the Commonwealth. The Commonwealth representative is the Chairman of the Council.

    Meetings

    Meetings are regularly held in June to determine the aggregate loan programmes for the following year and their distribution between the Commonwealth and the States.

    The Commonwealth and State governments are required by the Financial Agreement to submit to the Loan Council each year their loan programmes for the following year.

    Relationship between the Loan Council and the Premiers Conference

    The annual Loan Council meeting usually takes place at the same time as the annual meeting of the Premiers Conference.

    There are differences in the conduct of the Premiers Conference and the Loan Council. A Hansard recording is kept of the proceedings of the Premiers Conference. The Loan Council has no similar record, only the minutes prepared by the Loan Council Secretariat which is part of the Commonwealth Treasury Department.

    The Loan Council proceedings tend to fall into two quite separate types of discussions. First is the Commonwealths statement of its position on the appropriate volume of borrowing for the States in the forthcoming year.

    The second type of proceedings tends to be relatively formal and follows discussion and agreement on the size of borrowing programme. It relates to the adoption of proposals on the various other categories of borrowings and aspects of the terms and conditions which will apply. The papers for this process are all prepared and presented by the Loan Council Secretariat and usually are adopted with little discussion.

    Within the formal Loan Council framework there is no discussion of expenditure arising out of loan approvals. Expenditure questions are discussed at the Premiers Conference.
    [From Report 5 Advisory Council for Inter-government Relations AGPS 1982].

  • Recordkeeping System


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Consignment Number Contents Date Range Public Access No. of Units
P0001 1977 - 1989 Open 5
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