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2010-2011
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
CONSTITUTIONAL CORPORATIONS (FARM GATE TO PLATE) BILL 2011
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator N Xenophon)
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Constitutional Corporations (Farm Gate to Plate) Bill 2011
Explanatory Memorandum
Clause1 - Short Title
This clause is a formal provision and specifies the short title of the bill, once enacted, as the
Constitutional Corporations (Farm Gate to Plate) Act 2011.
Clause 2 - Commencement
This clause provides for the commencement of sections 1 and 2 of the Act on the day this Act
receives Royal Assent, and for the commencement of sections 3 to 14 on the 28th day after this Act
receives Royal Assent.
Clause 3 - Object
The object of this Act is to enable consumer to understand the pricing practices of grocery retailers
in relation to fresh produce.
Clause 4 -Constitutional basis for Act
This clause outlines the constitutional basis for this Act as:
a) the Commonwealth's legislative powers under paragraphs 51(i), (v), (xv) and (xx) of the
Constitution; and
b) any implied legislative powers of the Commonwealth.
Clause 5 - Application to external Territories
This clause states that this Act extends to all the external Territories.
Clause 6 - Relationship with State and Territory laws
This clause states that this Act is intended to apply to the exclusion of a State or Territory law that is
prescribed by the regulations, but is not intended to exclude or limit the concurrent operation of any
other State or Territory unless there is a contrary intention in this Act.
Clause 7 - Interpretation
This clause defines the following terms for the purpose of the bill:
1) constitutional corporation
2) farm gate
3) farm gate price
4) floor space
5) food-based grocery item
6) grocery retailer
7) produce
8) producer price
9) retail premises
10) selling price.
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Clause 8 - Application
This clause states that Part 2 of this bill applies to any constitutional corporation that is a grocery
retailer, as defined in the bill.
Clause 9 - Requirements on constitutional corporation to display and to publish producer prices
for produce
Subclause (1) of this clause states that any constitutional corporation to which this Part applies must
display the producer price (defined as the average farm gate price received by farmers for a specific
type of produce within a 12 month period) for all fruit and vegetable produce sold.
Subclause (2) of this clause outlines how the producer price must be displayed by the constitutional
corporation.
Subclause (3) of this clause states that a constitutional corporation to which this Part applies must
also publish on its website all producer prices for all produce sold by the constitutional corporation.
Clause 10 - Contravention of subsection 9(1), (2) or (3)
This clause states that a constitutional corporation must not contravene the above subsections.
Clause 11 - Subsections 9(1), (2) and (3) deemed to be infringement notice provisions
This clause deems that the above subsections are infringement notice provisions for the purposes of
Division 5 of Part XI of the Competition and Consumer Act 2010, which outlines the provisions
applying to infringement notices issued by the Australian Competition and Consumer Commission,
and how these notices may be issued. These provisions apply subject to clauses 12 and 13.
Clause 12 - Enforcement
This clause states that, if the Commission has reasonable grounds to suspect that a constitutional
corporation has contravened subsection 9(1), (2) or (3), it may either issue an infringement notice to
the corporation, or apply to the Federal Court for such orders as the Commission finds appropriate.
Clause 13 - Amount of penalty specified in infringement notice for contravention of subsection 9(1),
(2) or (3)
This clause states that the penalty to be specified in an infringement notice issued to a constitutional
corporation by the Commission for the contravention of these subsections is 600 penalty points.
Clause 14 - Regulations
This clause provides for the making of regulations required or necessary to give effect to the bill,
once enacted.
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