On 29 March 1940, Wallace Vernon Fyfe was appointed Royal Commissioner to inquire into and report upon the financial and economic position of the Pastotal Industry in Western Australia, in so far as that industry is carried on by persons holding as lessees pastoral leases in Western Australia granted under Part VI of the Land Act 1933-1939. The Royal Commission's specific terms of reference were:

1) To inquire into and ascertain (a) the history of the pastoral industry so far as it related to the financial and economic position of the said pastoral leaseholders; (b) the factors and causes responsible for the condition of the pastoral industry and for the financial and economic
position of the pastoral leaseholders as disclosed by or ascertainable from the history thereof; (c) whether any measures or steps were necessary to be taken for the development or reconstruction of the pastoral industry in order to improve or ameliorate the financial and economic position of the pastoral leaseholders, the nature, form, and scope of the measures or steps which should be taken, and whether the same are urgent or not; and (d) any other matters incidental to the above matters and relative to the inquiry;

2) To examine and report upon the various matters inquired into by the Royal Commissioner in accordance with the Commission; and

3) To make such recommendations, including any suggested necessary legislation as to the Royal Commissioner may seem meet in relation to any matters found by the Commission as the result of the inquiry.