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2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
RURAL RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT BILL
2013
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture, Fisheries and Forestry,
Senator the Hon. Joe Ludwig)
RURAL RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT BILL
2013
GENERAL OUTLINE
The Rural Research and Development Legislation Amendment Bill 2013 will make
amendments to implement the governments rural research and development (R&D) policy,
along with two companion Bills - the Primary Industries (Excise) Levies Amendment Bill
2013 and the Primary Industries (Customs) Charges Amendment Bill 2013.
This Bill will amend eight Acts in the agriculture, fisheries and forestry portfolio to improve
the efficiency, transparency and accountability of the rural research and development
corporations (RDCs). It will also make technical amendments, including consequential
amendments to other acts, and remove obsolete provisions.
Currently, there are 15 RDCs - six statutory RDCs and nine industry-owned RDCs -
providing services to a diverse range of rural industries. RDCs provide a mechanism for
industry to invest collectively in research and development (R&D) and, in the case of
industry-owned RDCs, marketing. The Australian Government assists these industries by
establishing a levy if an industry so requests, by collecting that levy and by returning the
funds to the relevant RDC, less the cost of collection. In addition, the government matches
the RDCs eligible R&D spending up to legislated limits. The amendments will assist the
RDCs to deliver improved services to levy payers and to lift the productivity of Australias
rural industries.
The Bill will:
allow statutory RDCs to undertake marketing at the request of industry
enable government matching funding for voluntary contributions to all RDCs to
encourage the private sector to invest in rural R&D
remove the requirement for statutory RDCs to submit their annual operating plans to
the minister for approval
make statutory RDC board selection processes more efficient
introduce funding agreements for statutory RDCs to drive performance improvements
and increase transparency in the delivery of R&D services
allow individual fisheries industry levies to be collected and matched subject to a cap
based on the gross value of production of that industry.
The Department of Agriculture, Fisheries and Forestry consulted relevant Australian
Government agencies and industry stakeholders on the policy changes. In 2011 the
Productivity Commission and the Rural Research and Development Council reviewed the
rural research, development and extension system in Australia. Around the country, meetings
were held with industry representative bodies, RDCs and other stakeholders and many
submissions were received in response to the two reviews. The department has continued to
consult with RDCs and industry representative bodies throughout the process leading to these
legislative amendments.
2
The proposed amendments involve changes to eight Acts. These are the Primary Industries
and Energy Research and Development Act 1989 (the PIERD Act); the Pig Industry Act
2001; the Dairy Produce Act 1986; the Egg Industry Service Provision Act 2002; the Wool
Services Privatisation Act 2000; the Forestry Marketing and Research and Development
Services Act 2007; the Horticulture Marketing and Research and Development Services Act
2000; and the Australian Meat and Live-stock Industry Act 1997.
Allowing a marketing function for statutory RDCs
Schedule 8 of the Bill will amend the PIERD Act to allow statutory RDCs to undertake
marketing activities, where requested by industry. If an industry decides to undertake
marketing activities, it will need to establish new levy arrangements to collect separately
identified marketing funds from industry members. The amendments in this Bill will not alter
the current process by which industry establishes a new levy. The amendments do not allow
the Commonwealth to provide matching funding for marketing levies established by industry.
Arrangements for voluntary contributions to RDCs
Schedule 5 of the Bill will amend six Acts to enable the Commonwealth to match voluntary
contributions made to the RDCs by businesses for R&D. Matching Commonwealth funding
will only be provided up to the existing cap based on the gross value of production of the
relevant industry.
The amendments will allow the Minister to determine, by regulations, how the matching
funding for voluntary contributions will be provided to each RDC. The amendments will
allow funding arrangements to be tailored to the needs of each RDC, and help to ensure that
the availability of matching funding for voluntary contributions does not act as a disincentive
for industries to fund the RDCs through formal levy collection.
Removal of ministerial approval of statutory RDC annual operating plans
Schedule 9 of the Bill will repeal section 26 of the PIERD Act so that statutory RDCs will no
longer be required to submit their annual operating plans to the Minister for approval. The
process of Ministerial approval has become an unnecessary burden for both RDCs and the
government. Ministerial oversight will be directed toward each RDCs overarching strategy
rather than its day-to-day management. As standard business practice, annual operating plans
will still be required, but ministerial approval will not.
A new section will be inserted to state that the plan comes into operation on the first day of
the period to which the plan relates, and that the plan must be provided to the Minister and to
the industry representative organisations of the RDC.
Selection process for statutory RDC board members
Schedule 6 of the Bill will amend the PIERD Act in relation to the process for selecting board
members for statutory RDCs. The amendments aim to make the process more efficient and
transparent.
3
Statutory RDC board members are currently selected by a selection committee, which invites
nominations, evaluates candidates against a skills matrix and provides a recommendation to
the Minister. The Minister is responsible for appointing board directors.
Amendments will be made to streamline the selection process. Selection committees will be
limited to five members and the committee will be established for up to three years to remove
the expense and time involved in establishing a committee for each selection process. A
,,reserve list of suitable candidates will be created which can be used to fill unplanned board
vacancies over the following 12 months. However, if a candidate with the necessary skills to
fill a specific vacancy is not available from the list, the process must be undertaken again.
The presiding member of the selection committee will recommend other selection committee
members to the Minister, based on the skills and experience of the candidates and following
consultation with industry groups. The Bill requires the presiding member to consider equity
and diversity when making these recommendations. The presiding member should also
consider any animal welfare experience relevant to the industry when making these
recommendations. The selection committee must do the same when recommending
candidates for the board of a statutory RDC.
Statutory funding agreements
Schedule 3 of the Bill will make amendments to the PIERD Act to allow the Commonwealth
to enter into an agreement with a statutory RDC. Agreements will provide an important
mechanism for RDCs and the Commonwealth to agree on a range of governance and
performance related matters to a level of detail that is not provided for in the PIERD Act.
These agreements will allow detailed arrangements to be modified over time, without
legislative change, to reflect changing government and industry requirements and provide
greater consistency in the Commonwealths relationship with all RDCs.
Amendments relating to the Fisheries Research and Development Corporation
Schedule 4 of the Bill will amend the PIERD Act to make two changes specific to fisheries
research and development. The first will allow individual fisheries industry levies to be
collected and matched subject to a relevant industry cap. The second amendment incorporates
a previous Ministerial direction into the Act.
The Fisheries RDC receives funding contributions from state and territory governments,
which in turn collect funding from fisheries industries through levies or fees. The
Commonwealth provides matching funding for state and territory contributions, up to a cap
that is based on the gross value of production (GVP) of fisheries in each jurisdiction. The
amendments will create a new section of the PIERD Act to enable a statutory levy on an
individual fishery industry sector, if established by that industry sector, to be matched by the
government up to a cap that is based on the GVP of the particular industry sector.
The second amendment incorporates into the PIERD Act part of a long-standing and widely-
supported Ministerial direction to the Fisheries RDC. The amendments will require the
Fisheries RDC to spend funds raised from a particular jurisdiction or industry sector on R&D
activities of relevance to that jurisdiction or industry sector.
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Minor amendments
Several minor amendments will be made to improve consistency in governance between
RDCs and simplify governance arrangements.
Schedule 8 of the Bill will amend section 3 of the PIERD Act (Objects of the Act) to reflect
the interest of the RDCs in developing and maintaining the research workforce, and in
developing the ability of primary producers to adopt the outcomes of research.
Schedule 7 of the Bill will amend the Wool Services Privatisation Act 2000 and the Dairy
Produce Act 1986 to include requirements relating to Ministerial directions. The conditions
under which the Bill proposes the Minister can give directions are consistent with the
Ministerial direction provisions for other industry-owned RDCs. Schedule 7 of the Bill will
also amend the Horticulture Marketing and Research and Development Services Act 2002,
the Wool Services Privatisation Act 2000 and the Australian Meat and Live-stock Industry
Act 1997 to standardise the Ministerial delegation rules for the industry-owned RDCs.
Schedule 9 of the Bill will amend the Egg Industry Service Provision Act 2002 to include
,,egg products in the definition of permitted spending of promotion payments, and to
standardise the terminology relating to marketing activities. This will clarify the scope of the
Australian Egg Corporation Limited activities, and bring the terminology into line with other
industry service provision legislation.
Schedule 8 of the Bill will amend the Wool Services Privatisation Act 2000 to add marketing
activities to ,,category A permitted spending, and to allow the timing of Wool Poll to be
prescribed in regulations. The first amendment will make explicit the use of ,,category A
payments for marketing activity, where the present Act refers only to research and
development and ,,other activities. The second amendment will facilitate future changes to
the timing of Wool Poll.
Technical amendments
Schedules 1, 2, 9 and 10 of the Bill make technical amendments. The Bill repeals redundant
sections of the PIERD Act, including those relating to R&D Councils and R&D Funds, which
no longer exist. Schedule 2 changes the name of the PIERD Act to remove "energy". There
are no energy research agencies currently covered by the Act, and energy research is now a
part of the Resources, Energy and Tourism portfolio. This involves a consequential
amendment to the Freedom of Information Act 1982 which is in the Attorney-Generals
portfolio. Schedule 10 repeals spent transitional, consequential and amending provisions
from the PIERD Act. Most of these provisions relate to the transition of arrangements from
the repealed Rural Industries Research Act 1985 to the PIERD Act, and are now obsolete.
Schedule 11 contains provisions that commence immediately after the commencement of the
Sugar Research and Development Services Act 2013. Item 6 in Schedule 10 commences
immediately after the commencement of schedule 4 to the Statute Law Revision Act 2013. All
other provisions commence on the day that the Act receives the Royal Assent.
FINANCIAL IMPACT STATEMENT
The proposed amendments have no financial impact on the Australian Government.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Rural Research and Development Legislation Amendment Bill 2013
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
Context
This Bill is one of three companion bills designed to improve the accountability,
effectiveness and efficiency of rural research and development corporations (RDCs). The
accompanying bills are the Primary Industries (Excise) Levies Amendment Bill 2013 and the
Primary Industries (Customs) Charges Amendment Bill 2013.
There are two types of RDCs, statutory and industry-owned.
Statutory RDCs are established under the Primary Industries and Energy Research and
Development Act 1989 (the PIERD Act) and its regulations. Their function is to coordinate
research, development and extension for the benefit of the primary industry that funds the
RDC through a statutory levy or charge, and the Australian community generally.
Industry-owned RDCs are Corporations Act 2001 companies with which the Commonwealth
has entered a statutory funding agreement under an ,,industry service provisions act specific
to each industry sector. In addition to the research, development and extension they fund,
industry-owned RDCs also undertake marketing on behalf of their levy-payers.
The Australian Government matches research and development levies with funding up to a
cap set by the PIERD Act for statutory RDCs and the relevant ,,industry service provision
Act for each industry-owned RDC.
This Bill
The Bill provides for the following changes to the existing system:
1. It requires each statutory RDC to enter into a statutory funding agreement (SFA) with
the Commonwealth to bring their governance into line with the industry-owned
RDCs. For over ten years, similar agreements have successfully been used to manage
governance and performance aspects of the government - industry-owned RDC
relationship.
2. Creating more efficient and flexible selection processes for statutory RDC board
members. The importance of diversity will be emphasised for both selection
committee and board appointments. Selection committee sizes are capped and their
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duration is extended. A selection committee will create a reserve list of suitable
candidates to reduce the time and expense associated with new selection processes for
casual and unanticipated vacancies on RDC boards.
2. Each statutory RDC will be able to undertake marketing if a levy for that purpose is
requested by industry and agreed by the government.
3. The existing requirement that statutory RDC annual operating plans be approved by
the Minister will be removed as this places an unnecessary administrative burden on
government and statutory RDCs.
4. The Bill makes arrangements for the Commonwealth to provide matching funding for
voluntary contributions received by an RDC for eligible research and development.
This matching funding will be subject to the existing cap on matching funding which
is based on industry gross value of production.
5. Other technical and minor amendments include: standardising the requirement to
comply with Ministerial directions across RDCs; standardising the Ministers ability to
delegate powers and to whom; adding ,,scientific and technical capacity building to
the objects of the PIERD Act; minor changes to definitions in the wool and egg
industries services provision acts and removing obsolete reporting requirements.
Assessment of human rights compatibility
6. This Bill promotes the general right to equality and non-discrimination in article 26 of
the International Covenant on Civil and Political Rights and its equivalent provisions
in articles 4 and 5 of the Convention on the Rights of Persons with Disabilities and
article 2 of the International Convention on the Elimination of All Forms of Racial
Discrimination. It does this by requiring:
a) the Presiding Member of the statutory RDC Selection Committee to have
regard to diversity, including diversity of experience, expertise and gender,
when nominating members to the Selection Committee in proposed sections
124(2A) and 125(4A).
b) the Selection Committee to have regard to diversity, including diversity of
experience, expertise and gender, when nominating candidates to the Minister
for appointment to the statutory RDC board of directors in proposed sections
130(1) and 130(3).
These criteria may result in more diverse appointees to statutory RDC boards.
7. In requiring the Presiding Member and the Section Committee to have regard to
diversity of gender when nominating board candidates, this Bill also specifically
promotes articles 11 and 14(2) of the Convention on the Elimination of All Forms of
Discrimination against Women on the right to equality in the field of employment and
the right to equality for women in rural areas, particularly to the extent of being
involved in development planning in article 14(2)(a).
7
Joe Ludwig, Minister for Agriculture, Fisheries and Forestry
Conclusion
The Bill is compatible with human rights because it promotes the right to equality and non-
discrimination in board appointment processes for statutory rural research and development
corporations.
Joe Ludwig, Minister for Agriculture, Fisheries and Forestry
8
RURAL RESEARCH AND DEVELOPMENT LEGISLATION AMENDMENT BILL
2013
NOTES ON ITEMS
Clause 1: Short Title
Clause 1 is a formal provision specifying that the short title of the Act may be cited as the
Rural Research and Development Legislation Amendment Act 2013.
Clause 2: Commencement
Clause 2 provides for the commencement of the Act.
Items 8, 9, 10 and 11 in Schedule 5 commence immediately after the Act receives the Royal
Assent. Item 6 in Schedule 10 commences immediately after the commencement of schedule
4 to the Statute Law Revision Act 2013. The provisions in Schedule 11 commence
immediately after the commencement of the Sugar Research and Development Services Act
2013. All other items commence on the day that the Act receives the Royal Assent.
Clause 3: Schedule(s)
Clause 3 provides that each Act specified in a schedule to the Act is amended or repealed as
set out in the applicable items of the schedule concerned and that any other item in a schedule
to the Act has effect according to its terms.
Schedule 1--Amendments to repeal provisions relating to R&D Councils
and R&D Funds
Plant Health Australia (Plant Industries) Funding Act 2002
Items 1 to 4
Items 1 to 4 remove references to R&D Councils and R&D funds from the Plant Health
Australia (Plant Industries) Funding Act 2002.
R&D Councils and R&D Funds no longer exist, and the last R&D Council ceased in 2001.
As such, the references to R&D Councils and Funds are obsolete.
Primary Industries and Energy Research and Development Act 1989
Items 5 to 80
Items 5 to 80 amend the Act to repeal sections that relate to R&D Councils and R&D Funds,
and to remove references to R&D Councils and R&D funds from remaining sections of the
Act. The amendments include repealing Part 3 of the Act, which provides for the
establishment and operation of R&D Councils and Funds.
9
R&D Councils and R&D Funds no longer exist, and the last R&D Council ceased in 2001.
As such, the sections of the Act that relate to R&D Councils and Funds are obsolete.
Schedule 2--Amendments relating to change of Act name
Dairy Produce Act 1986
Item 1 Subsection 3(1) (paragraphs (g), (h) and (i) of the definition of old dairy
levy amounts)
This item removes "and Energy" from the references to the Primary Industries and Energy
Research and Development Act 1989.
Fisheries Administration Act 1991
Item 2 Subsection 94E(1) (paragraph (a) of the definition of deductible
component)
This item removes "and Energy" from the reference to the Primary Industries and Energy
Research and Development Act 1989.
Freedom of Information Act 1982
Item 3 Part III of Schedule 2 - Legislation relating to agencies exempt in respect
of documents in relation to their commercial activities
This item removes "and Energy" from the reference to the Primary Industries and Energy
Research and Development Act 1989.
Pig Industry Act 2001
Items 4 to 6
These items remove "and Energy" from the references to the Primary Industries and Energy
Research and Development Act 1989 in subsection 10(6), subsection 10(14) and subclause
17(2) of Schedule 1 to the Act.
Plant Health Australia (Plant Industries) Funding Act 2002
Items 7 to 11
These items remove "and Energy" from the references to the Primary Industries and Energy
Research and Development Act 1989 in section 3, subsection 7(3), subparagraph 8(1)(b)(iii),
paragraph 8(3)(b) and paragraph 9(5)(b).
10
Primary Industries and Energy Research and Development Act 1989
Item 12 Title
This item amends the long title of the Act to remove the reference to "energy".
Item 13 Section 1 - Short title
This item amends the short title of the Act to remove the reference to "energy".
Item 14 Subsection 4(1) - paragraph (b) of the definition of primary industry
This item repeals paragraph (b) of the definition of "primary industry". This part of the
definition refers to the extraction of energy from the environment, and is obsolete.
Primary Industries Levies and Charges Collection Act 1991
Item 15 Subsection 4(1) - definition of R & D Corporation
This item removes "and Energy" from the reference to the Primary Industries and Energy
Research and Development Act 1989.
Schedule 3--Funding agreements
Primary Industries and Energy Research and Development Act 1989
Item 1 Subsection 4(1) - Definitions
This item inserts a definition for "funding agreement". The funding agreement is an
agreement between the Commonwealth and an R&D Corporation to specify the terms and
conditions on which the money paid to the R&D Corporation by the Commonwealth will be
spent.
Item 2 At the end of section 33 - Expenditure of money of R&D Corporations
This item inserts additional subsections at the end of section 33. The amendments require an
R&D Corporation to enter into a funding agreement with the Commonwealth before the end
of the 2013-14 financial year. The funding agreement will specify the terms and conditions
on which the money paid to the R&D Corporation by the Commonwealth will be spent, and
money must not be spent by the R&D Corporation unless it is in accordance with the funding
agreement. The funding agreement is to be published on the website of the R&D Corporation
to which it applies.
11
Schedule 4--Separately levied fisheries
Primary Industries and Energy Research and Development Act 1989
Item 1 Subsection 4(1) - Definitions
Item 1 inserts a definition for "separately levied fishery". A separately levied fishery is a
sector of the fisheries industry (to be specified in the regulations) which has established a
statutory levy that applies only to that sector. Most fisheries pay levies and/or fees and
charges to state and territory governments, which then make a contribution to the Fisheries
Research and Development Corporation (FRDC) on behalf of all fisheries in that state or
territory. The only fishery sector that currently has a statutory levy is the farmed prawns
industry.
This amendment will allow the farmed prawns industry, on amendment of the Fisheries
Research and Development Corporation Regulations 1991, to be considered a separately
levied fishery. Other fishery sectors for which a statutory levy is established in the future
could also be declared in the regulations as separately levied fisheries.
Item 2 After section 5
This item inserts a new section (5A) after section 5. The inserted section allows regulations to
declare a part of the fisheries industry as a separately levied fishery. It also allows for a levy
that is attached to an R&D Corporation to be declared by regulations as a levy on a separately
levied fishery.
Item 3 Subparagraph 25(2)(c)(iv) - Annual operational plans
This item amends subparagraph 25(2)(c)(iv), which requires the R&D Corporation, in its
annual operational plan, to provide an estimate of the funds that the R&D Corporation is
likely to receive during the financial year, other than funds received through a levy. The
amendment includes a levy on a separately levied fishery in the exclusions for this
subparagraph.
Item 4 Section 30A - Payments to an R&D Corporation established in respect of
the fishing industry
This item changes the title of section 30A to "Fishing industry payments other than separately
levied fishery payments". Payments in regard to separately levied fisheries are specified in
the proposed new section 30B, described in Item 11 in this Schedule.
Item 5 Before subsection 30A(1) - Payments to an R&D Corporation established
in respect of the fishing industry
This item inserts an additional subsection before subsection 30A(1). The new subsection
excludes section 30A from applying to a levy on a separately levied fishery and to amounts
spent by an R&D Corporation in relation to a separately levied fishery. Any reference to the
fishing industry in subsection 30A will not apply to a separately levied fishery. Payments and
expenditure in relation to a separately levied fishery will be specified in the new section 30B
described in Item 11 in this Schedule.
12
The subsection also allows a marketing component of a levy to be paid to the R&D
Corporation, if the levy is attached to the R&D Corporation. Any expenditure by the R&D
Corporation on marketing activities cannot be matched by the Commonwealth.
The amendment inserts a subheading "Levy payments" for subsection 30A(1). Subheadings
are included in section 30A to improve the readability of the subsection.
Item 6 Before subsection 30A(2) - Payments to an R&D Corporation established
in respect of the fishing industry
This amendment inserts a subheading "Matching payments" for subsection 30A(2).
Subheadings are included in section 30A to improve the readability of the subsection.
Item 7 Subsection 30A(2) - Payments to an R&D Corporation established in
respect of the fishing industry
This amendment removes a reference to subsection 30A(2A), which will be repealed by Item
10 of this Schedule.
Item 8 Subparagraph 30A(2)(b)(ii) - Payments to an R&D Corporation
established in respect of the fishing industry
This item provides that Commonwealth matching funding for a levy is provided based on the
amounts spent by the R&D Corporation, as well as the amounts required to be spent. This is a
minor amendment to align the wording of the subparagraph with other matching funding
provisions in the section.
Item 9 Paragraph 30A(2)(b) - Payments to an R&D Corporation established in
respect of the fishing industry
This item corrects a minor punctuation error in the Act.
Item 10 Subparagraph 30A(2)(c)(ii) - Payments to an R&D Corporation
established in respect of the fishing industry
This item clarifies that Commonwealth matching funding for a levy is provided based on the
amounts spent by the R&D Corporation, as well as the amounts required to be spent. This
aligns the wording of the subparagraph with other matching funding provisions in the section.
Item 11 Subsection 30A(2A) - Payments to an R&D Corporation established in
respect of the fishing industry
This item repeals subsection 30A(2A). The subsection refers to a payment in the financial
year 1997-98 and is obsolete.
Item 12 After section 30A
This item inserts a new section (30B - Separately levied fisheries) after section 30A. The new
section allows payments to be made in relation to a separately levied fishery. Section 30B
13
provides similar payment arrangements as in section 30A, but applies only to separately
levied fisheries.
Subsection 30B(1) excludes expenditure by an R&D Corporation on marketing activities
from being matched by the Commonwealth.
Subsection 30B(2) allows a levy on a separately levied fishery to be paid to an R&D
Corporation. Currently, the farmed prawns levy is the only statutory levy in relation to the
fishing industry. This levy is collected by the Commonwealth and paid to the Fisheries
Research and Development Corporation. This levy may be considered, following amendment
to the Fisheries Research and Development Corporation Regulations 1991, to be a levy on a
separately levied fishery.
Subsection 30B(3) allows a levy on a separately levied fishery to attract matching payments
from the Commonwealth. Consistent with the arrangements for levies under section 30A(2),
the matching payments will be limited by one of two caps, depending on the level of
expenditure of the R&D Corporation in respect of the separately levied fishery to which the
levy applies. The two caps are based on the gross value of production (GVP) of the separately
levied fishery. This differs from the current arrangements under section 30A, where the caps
on a statutory levy are based on the GVP of Commonwealth fisheries.
If a separately levied fishery, and an associated levy, is declared as such by the regulations,
the GVP for that fishery will no longer be included in the calculations of GVP for
Commonwealth fisheries and state and territory fisheries, nor will it be included in the
calculation of total GVP for the purposes of section 30A. The GVP for that fishery will be
calculated separately. The sum of all GVPs in relation to fisheries will be the same, so the
amendments will not change the overall amount of Commonwealth matching funding that is
available for the fishing industry as a whole.
The remaining subsections of 30B are consistent with the arrangements currently in place for
fisheries payments in section 30A. Subsections 30B(4), 30B(5) and 30B(6) allow for the
adjustment between an "interim" GVP calculation and a "final" GVP calculation. Final GVP
and interim GVP are defined in subsection 30B(10). Subsections 30B(7) and 30B(8) allow
the Commonwealth to offset amounts owed to it by the R&D Corporation against amounts
paid to the R&D Corporation. Subsection 30B(9) appropriates funds from the Consolidated
Revenue Fund for the purposes of section 30B. Subsection 30B(11) allows the regulations to
determine the calculation of GVP for a separately levied fishery.
Item 13 Paragraph 33(1)(ca) - Expenditure of money of R&D Corporations
This item includes a reference to section 30B(4) in the paragraph. This allows the R&D
Corporation to pay an amount to the Commonwealth in the event that an interim GVP
calculation for a separately levied fishery exceeds the final GVP calculation for a separately
levied fishery, resulting in an overpayment of matching funding.
Item 14 Before section 34 - Expenditure of money of R&D Corporations
This item inserts two new sections (33B and 33C) before section 34. Section 33B requires the
R&D Corporation to spend money received from a state or territory government, either
directly or through the Commonwealth, on R&D activities of relevance to that state or
14
territory. The section allows a time period of five years, from the time the funds are received,
for the R&D Corporation to spend an equal amount to the amount received from a state or
territory government.
Section 33C requires the R&D Corporation to spend the money received under section 30B
(separately levied fisheries) on activities related to that fishery.
Item 15 Paragraphs 34(a) and (b) - Commonwealth to be paid levy expenses from
R&D Corporations
This item amends paragraphs 34(a) and (b) to allow the Commonwealth to recover the cost of
the collection and administration of a levy on a separately levied fishery.
Item 16 At the end of section 35
This item amends section 35 to allow the Commonwealth to be reimbursed by an R&D
Corporation for refunds for levies related to fisheries (including levies on separately levied
fisheries).
Item 17 Paragraph 37(c) - Payment of amounts of levy where levies redirected
This item amends the paragraph to include levies on separately levied fisheries in the
arrangements for the redirection of levies from one R&D Corporation to another R&D
Corporation.
Schedule 5--Matching voluntary payments
Dairy Produce Act 1986
Item 1 At the end of subsection 6(3) - Appropriation for payments under
funding contract etc.
This item inserts an additional paragraph at the end of subsection 6(3) to allow the
regulations to specify that ,,other amounts may be included in the overall limit for matching
payments. This amendment will allow regulations to provide matching funding for voluntary
industry contributions for R&D activities related to dairy products, up to a specified amount.
Matching funding will not be provided above the ,,retention limit set by subsection 6(4). The
retention limit is the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Item 2 After subsection 6(3) - Appropriation for payments under funding
contract etc.
This item inserts a subsection 6(3A) to allow the regulations to prescribe that the overall limit
for matching funding (subsection 6(3)) does not apply. This amendment will allow
regulations to provide matching funding for voluntary industry contributions for R&D
activities related to dairy products, up to the ,,retention limit described in subsection 6(4).
15
The retention limit is the lesser of the 0.5% GVP cap and the 50% of eligible expenditure
cap.
Egg Industry Service Provision Act 2002
Item 3 Section 4 (at the end of the definition of matching amounts)
This item inserts a new paragraph into the definition of "matching amounts" to allow the
regulations to specify that other amounts may be included in the amounts that can be matched
by the Commonwealth. This amendment will allow regulations to provide matching funding
for voluntary contributions for R&D activities related to eggs, up to a specified amount.
Matching funding will not be provided above the ,,retention limit set by subsection 8(3). The
retention limit is the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Item 4 After subsection 8(2) - Appropriation for payments under funding
contract etc.
This item inserts a subsection 8(2A) to allow the regulations to prescribe that the overall limit
for matching funding (paragraph 8(2)(c)) does not apply. This amendment will allow
regulations to provide matching funding for voluntary contributions for R&D activities
related to eggs, up to the ,,retention limit described in subsection 8(3). The retention limit is
the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Forestry Marketing and Research and Development Services Act 2007
Item 5 Subsection 9(3) - Appropriation for payments under funding contract
This item amends subsection 9(3) to allow the regulations to specify that ,,other amounts
may be included in the overall limit for matching payments. This amendment will allow
regulations to provide matching funding for voluntary industry contributions for R&D
activities related to forestry products, up to a specified amount. Matching funding will not be
provided above the ,,annual limit set by subsection 9(4). The annual limit is the lesser of the
0.5% GVP cap and the 50% of eligible expenditure cap.
Item 6 After subsection 9(3) - Appropriation for payments under funding
contract
This item inserts a subsection 9(3A) to allow the regulations to prescribe that the overall limit
for matching funding (subsection 9(3)) does not apply. This amendment will allow
regulations to provide matching funding for voluntary industry contributions for R&D
activities related to forestry products, up to the ,,annual limit described in subsection 9(4).
The annual limit is the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Pig Industry Act 2001
Item 7 Subsection 10(6) - Appropriation for payments under funding contract
etc.
This item amends subsection 10(6) to allow the regulations to specify that other amounts may
be included in the overall limit for matching payments. This amendment will allow
16
regulations to provide matching funding for voluntary contributions for R&D activities
related to pigs, up to a specified amount. Matching funding will not be provided above the
,,retention limit set by subsection 10(8).
This item also inserts a new subsection (10(6A)) to allow the regulations to prescribe that the
overall limit for matching funding (subsection 10(6)) does not apply. This amendment will
allow regulations to provide matching funding for voluntary contributions for R&D activities
related to pigs, up to the ,,retention limit described in subsection 10(8). The retention limit is
the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Primary Industries and Energy Research and Development Act 1989
Item 8 Paragraph 30A(2)(b) - Payments to an R&D Corporation established in
respect of the fishing industry
This item amends section 30A(2)(b) which imposes a cap on matching funding provided for
fisheries levies. The section applies one of two caps based on the GVP of Commonwealth
fisheries (paragraphs (i) and (ii)) and also states that the amount of matching funding must
not exceed the amount of levy funding paid to the R&D corporation (the ,,levies paid cap).
The amendment qualifies the ,,levies paid cap to allow the regulations to provide that it does
not apply. This amendment will allow regulations to provide matching funding for voluntary
contributions for R&D activities related to fisheries, up to the relevant GVP cap.
Once the amendments outlined in Schedule 4 of this Bill come into effect, this item will not
apply to separately levied industries. However, the new section 30B makes similar
arrangements for the matching of voluntary contributions in relation to a separately levied
fishery.
Item 9 At the end of subsection 30A(2) - Payments to an R&D Corporation
established in respect of the fishing industry
This item inserts a paragraph at the end of subsection 30A(2) to allow the regulations to
specify that other amounts may be paid to the R&D Corporation. This amendment will allow
regulations to provide matching funding for voluntary industry contributions for R&D
activities related to fisheries, up to a specified level. Matching funding will not be provided
above the applicable GVP cap.
Once the amendments outlined in Schedule 4 of this Bill come into effect, this subsection will
not apply to separately levied industries. However, the new section 30B makes similar
arrangements for the matching of voluntary contributions in relation to a separately levied
fishery.
Item 10 At the end of subsection 30B(2) - Separately levied fishery payments
This item inserts a paragraph at the end of subsection 30B(2) to allow the regulations to
specify that other amounts may be paid to the R&D Corporation. This amendment will allow
regulations to provide matching funding for voluntary industry contributions for R&D
activities related to separately levied fisheries, up to a specified level. Matching funding will
not be provided above the applicable GVP cap.
17
Item 11 At the end of subsection 31(1) - Government matching payments not to
exceed levy and certain other payments
This item inserts a paragraph at the end of subsection 31(1) to allow the regulations to specify
that other amounts paid to an R&D Corporation can be included in the calculation of the cap
imposed by section 31. This amendment will allow regulations to provide matching funding
for voluntary industry contributions for R&D activities, up to a specified level. Matching
funding will not be provided above the retention limit described in section 32.
Wool Services Privatisation Act 2000
Item 12 Subsection 31(6) - Funding contract with research body
This item amends subsection 31(6) to allow the regulations to specify that other amounts may
be included in the overall limit for category B payments (matching payments). This
amendment will allow regulations to be amended to provide matching funding for voluntary
industry contributions for R&D activities related to wool, up to a specified level. Matching
funding will not be provided above the ,,retention limit for category B payments set by
subsection 31(7).
This item also inserts a new subsection (31(6A)) to allow the regulations to prescribe that the
overall limit for category B payments (subsection 31(6)) does not apply. This amendment
will allow regulations to be amended to provide matching funding for voluntary contributions
for R&D activities related to wool, up to the ,,retention limit for category B payments
described in subsection 31(7). The ,,retention limit is the lesser of the 0.5% GVP cap and the
50% of eligible expenditure cap.
Schedule 6--Selection committees
Primary Industries and Energy Research and Development Act 1989
Item 1 Subsection 17(3) - Appointment of directors
This item allows the directors of an R&D Corporation to be selected from a list of suitable
nominees that has been provided to the Minister as a result of a previous selection process.
Under the current arrangements, a full selection process must be conducted for every board
vacancy that arises for an R&D Corporation, even if the vacancy arises shortly after a
selection process has been conducted. This amendment will allow a suitable candidate
identified in a selection process, completed within the previous 12 months, to be nominated
by the selection committee as a board director, without the selection committee conducting
another full process.
Item 2 Subsection 122(1) - Presiding Members of Selection Committees
This item replaces "selection committees" with "the selection committee" as, at a given time,
there is only one selection committee for each R&D Corporation.
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Item 3 Subsection 123(1) - Minister may request the establishment of a Selection
Committee
This item replaces "selection committees" with "the selection committee" as, at a given time,
there is only one selection committee for each R&D Corporation.
Item 4 Paragraphs 123(1)(c) and (ca) - Minister may request the establishment
of a Selection Committee
This item removes the requirement for the Minister to request the Presiding Member of a
selection committee to ask each of the Corporations representative organisations to have
regard to the desirability of reflecting a diversity of expertise, experience and gender among
the persons nominated. The requirements relating to the consideration of expertise,
experience and gender among nominees will be detailed in sections 124 and 125.
Item 5 Subsections 124(1) and (2) - Establishment of Selection Committees--
R&D Corporations
This item amends the process for establishing a selection committee for an R&D Corporation.
Currently, a new selection committee is established for every selection process. The new
arrangements (further described under item 9) will allow a selection committee to remain in
place for up to three years.
The amendments require the Presiding Member to establish a selection committee on request
by the Minister. The selection committee will consist of the Presiding Member and up to four
other members, appointed by the Minister.
The Presiding Member will nominate selection committee members to the Minister,
following consultation with industry representative organisations. The Presiding Member
must consider the desirability of reflecting diversity (including but not limited to a diversity
of expertise, experience and gender) when evaluating potential members for nomination. This
process replaces the current process where the representative organisations make nominations
to the Minister.
The new arrangements provide representative organisations with an opportunity to propose
persons for nomination, while also ensuring that the selection committee is comprised of
persons with an appropriate mix of expertise, experience and diversity.
Item 6 Subsection 124(3) - Establishment of Selection Committees--R&D
Corporations
This item requires the Minister to appoint the persons nominated by the Presiding Member to
the selection committee of an R&D Corporation.
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Item 7 Subsections 125(2), (3) and (4) - Establishment of Selection Committees--
predominantly Commonwealth funded R&D Corporations
This item makes amendments to the process for establishing a selection committee for
predominantly Commonwealth funded R&D Corporation. The amendments duplicate the
process described under item 5 of this schedule.
Item 8 Subsection 125(5) - Establishment of Selection Committees--
predominantly Commonwealth funded R&D Corporations
This item requires the Minister to appoint the persons nominated by the Presiding Member to
the selection committee of a predominantly Commonwealth funded R&D Corporation.
Item 9 Section 129 - Presiding Member to abolish Selection Committee
This item changes the arrangements for abolishing a selection committee. Currently, the
selection committee is abolished at the end of a selection process. The amendments allow the
selection committee to continue for the same period of time as the Presiding Member who
established the committee (up to three years). If the term of office of the Presiding Member
(and therefore other committee members) ends while a selection process is underway, the
selection committee may continue until that selection process is complete.
Item 10 Subsection 130(1) - Nominations to be made by Selection Committees
This item requires the selection committee to consider the desirability of reflecting diversity
(including but not limited to a diversity of expertise, experience and gender) when making
nominations to the Minister for board appointments. This is in addition to the existing
statutory selection criteria. The intention of this amendment is to ensure that R&D
Corporation boards are composed of persons with an appropriate mix of expertise, experience
and diversity.
Item 11 At the end of subsection 130(2) - Nominations to be made by Selection
Committees
This item requires the selection committee to provide the Minister with a list, in addition to
the nominated candidates, of any other candidates that are considered suitable for nomination
to the board of an R&D Corporation.
The purpose of this list is to provide additional candidates in the event that the Minister
rejects a nominated candidate. The list may also be used to nominate candidates in
subsequent selection processes.
Item 12 At the end of paragraph 130(3)(b) - Nominations to be made by Selection
Committees
This item requires the selection committee, in making nominations to the Minister for board
appointments, to provide the Minister with advice on how the nomination or nominations will
best ensure that the directors collectively possess appropriate diversity. This is in addition to
the requirement for the selection committee to provide advice to the Minister on how the
20
nomination or nominations will best ensure that the directors collectively possess an
appropriate balance of expertise and experience in board affairs.
Item 13 Paragraph 131(1)(m) - Selecting persons for nomination
This item replaces ,,sociology with ,,communication in the list of fields of expertise that
selection committees must refer to in making nominations for directors. This amendment
more accurately reflects RDC board needs.
Item 14 Subsection 131(1B) - Selecting persons for nomination
This item repeals a redundant subsection that refers to nominations for appointment to R&D
Councils.
Item 15 At the end of section 131- Selecting persons for nomination
This item adds a subsection 131(4) to allow the selection committee to nominate a person
who was listed as suitable, within the previous 12 months, in a previous selection process for
a board vacancy. If there is such a list of suitable persons, a selection committee must look at
the existing list to determine whether a suitable candidate could be nominated from it, before
advertising the position. Paragraph 131(4)(b) states that the person nominated must not have
already been nominated to the Minister in respect of the currently available position.
Item 16 Section 132 - Selection Committee to make only one nomination
Section 132 is re-numbered.
Item 17 At the end of section 132 - Selection Committee to make only one
nomination
This item inserts additional subsections at the end of section 132. The additional subsections
require the selection committee, when making nominations to the Minister for board
appointments, to provide details of the expertise and experience of the nominees. The
selection committee must also provide the Minister with a list of other persons suitable for
nomination, along with details of the expertise and experience of the persons on the list. In
the event that the Minister rejects a nominee, this amendment will allow the Minister to
appoint another person from the list, if there is a candidate with the appropriate experience
and expertise for the position.
Items 18 and 19 Subsection 134(1) - Minister may reject nomination
In the event that the Minister finds a nominee for a board appointment unsuitable, and the list
of additional candidates does not provide a person suitable for appointment, this item allows
the Minister to request another nomination from the selection committee. In this situation, the
selection committee would need to run another selection process to provide the Minister with
a new nomination.
Item 20 Subsection 134(2) - Minister may reject nomination
This item omits the reference to section 126, which is obsolete.
21
Item 21 Paragraph 135(1)(c) - Selection arrangements for proposed R&D
Corporations
This item replaces "selection committees" with "the selection committee" as, at a given time,
there is only one selection committee for each R&D Corporation.
Item 22 Section 136 - Selection arrangements for the RIR&D Corporation before
its establishment
Section 136 is repealed. This section outlines selection arrangements for the Rural Industries
Research and Development Corporation before its establishment, and is obsolete.
Item 23 Subsection 141(1) - Annual reports of Selection Committees
This item replaces "selection committees" with "the selection committee" as, at a given time,
there is only one selection committee for each R&D Corporation.
Item 24 Subsection 141(1AA) - Annual reports of Selection Committees
This item makes a minor change to the wording of the subsection to reflect that there will be
one selection committee for each R&D Corporation.
Item 25 Subsection 141(3) - Annual reports of Selection Committees
This item replaces "selection committees" with "a selection committee" as, at a given time,
there is only one selection committee for each R&D Corporation.
Item 26 Partly completed selection processes
This item allows any selection processes that are ongoing when this schedule commences to
continue according to the current arrangements for board appointments. Any selection
process that starts after this schedule commences will follow the amended arrangements as
outlined in this schedule.
Schedule 7--Delegations and directions
Part 1 - Delegations
Australian Meat and Live-stock Industry Act 1997
Item 1 Section 70 - Delegations
This item amends the delegation provisions of the Act. The amendments allow the Minister
to delegate powers to either the Secretary of the Department, or an APS employee at an SES
Band 1 or higher level. The Secretary of the Department may delegate powers to an APS
employee at an SES Band 1 or higher level. The amendments make the delegation provisions
in the Act consistent with those in other industry service provision Acts.
22
The exemptions on delegation powers remain unchanged. The Minister may not delegate
powers or functions provided under section 69 of the Act (Ministerial directions), and the
Secretary may not delegate powers or functions provided under section 49 of the Act
(appointing authorised officers).
Horticulture Marketing and Research and Development Services Act 2000
Item 2 Section 32 - Delegations
This item amends the delegation provisions of the Act. The amendments allow the Minister
to delegate powers to either the Secretary of the Department, or an APS employee at an SES
Band 1 or higher level. The Secretary of the Department may delegate powers to an APS
employee at an SES Band 1 or higher level. The amendments make the delegation provisions
in the Act consistent with those in other industry service provision Acts.
The exemption on delegation powers remains unchanged. The Minister may not delegate
powers or functions provided under section 29 of the Act (Ministerial directions).
Primary Industries and Energy Research and Development Act 1989
Item 3 After section 143
This item inserts a new section (143A - Delegations) to allow the Minister to delegate
powers to either the Secretary of the Department, or an APS employee at an SES Band 1 or
higher level. The Minister is currently able to delegate powers under the Carltona principle,
however the amendment clarifies this arrangement. The Minister may not delegate powers
under section 143 of the Act (Ministerial directions).
Wool Services Privatisation Act 2000
Item 4 Section 38 - Delegations
This item amends the delegation provisions of the Act. The amendments allow the Minister
to delegate powers to either the Secretary of the Department, or an APS employee at an SES
Band 1 or higher level. The amendments make the delegation provisions in the Act consistent
with those in other industry service provision Acts.
Minister may not delegate powers or functions provided under section 33A of the Act
(Ministerial directions).
23
Part 2 - Ministerial directions
Dairy Produce Act 1986
Item 5 After section 126
This item inserts a new section (126A) to allow the Minister to give written directions to the
industry services body in certain circumstances. The industry services body is currently Dairy
Australia Limited. The Ministerial direction powers are consistent with those in other
industry service provision Acts.
The Minister may give a written direction if the direction is in Australias national interest
because of exceptional and urgent circumstances and if it will not cause the body to incur
expenses greater than the amounts it is paid. The Minister must give the bodys directors an
adequate opportunity to discuss with the Minister the need for the proposed direction. This
discussion must be in accordance with any arrangements in the bodys funding contract. It is
envisaged that the funding contract will spell out details of the overall process under which
consultation would occur in relation to proposed directions. The direction must be made for a
purpose within the Commonwealths legislative powers. The industry services body must
comply with the direction.
The direction must be published in the Gazette and tabled in each House of Parliament. The
annual report of the industry services body must include particulars of the direction and an
assessment of the impact that the direction has had on the operations of the body.
The Minister must give the industry service bodys directors an adequate opportunity to
discuss with the Minister the impact of publication and tabling of the direction. The direction
need not be published, tabled or included in the annual report if the Minister, on the
recommendation of the body, determines that publication is likely to prejudice the
commercial activities of the body. The direction also need not be published, tabled or
included in the annual report if the Minister determines that this would be contrary to the
public interest.
The power to make directions does not mean that the Minister is a director of the body, or
that the Commonwealth is in a position to exercise control over the industry services body.
Wool Services Privatisation Act 2000
Item 6 Section 7 - Definitions
This item inserts a definition for "research body", which is the body declared under section
30 of the Act.
Item 7 After section 33
This item inserts a new section (33A) to allow the Minister to give a written direction to the
research body in certain circumstances. The research body is currently Australian Wool
Innovation Limited. The Ministerial direction power is consistent with those in other industry
service provision Acts.
24
The Minister may give a written direction if the direction is in Australias national interest
because of exceptional and urgent circumstances and if it will not cause the body to incur
expenses greater than the amounts it is paid. The Minister must give the bodys directors an
adequate opportunity to discuss with the Minister the need for the proposed direction. This
discussion must be in accordance with any arrangements in the bodys funding contract. It is
envisaged that the funding contract will spell out details of the overall process under which
consultation would occur in relation to proposed directions. The direction must be made for a
purpose within the Commonwealths legislative powers. The research body must comply
with the direction.
The direction must be published in the Gazette and tabled in each House of Parliament. The
annual report of the research body must include particulars of the direction and an assessment
of the impact that the direction has had on the operations of the body.
The Minister must give the research bodys directors an adequate opportunity to discuss with
the Minister the impact of publication and tabling of the direction. The direction need not be
published, tabled or included in the annual report if the Minister, on the recommendation of
the body, determines that publication is likely to prejudice the commercial activities of the
body. The direction also need not be published, tabled or included in the annual report if the
Minister determines that this would be contrary to the public interest.
The power to make a direction does not mean that the Minister is a director of the body, or
that the Commonwealth is in a position to exercise control over the research body.
Schedule 8--Marketing activities
Primary Industries and Energy Research and Development Act 1989
Item 1 Section 3 - Objects
This item amends the objects of the Act to include a provision for marketing activities in
relation to products of primary industries. This amendment reflects the role of the R&D
Corporations which has been extended to include marketing, where this has been requested
by industry.
The item also includes two new subparagraphs ((iv) and (v)) in the objects of the Act to
reflect the interest of the R&D Corporations in developing and maintaining the research
workforce, and in developing the ability of primary producers to adopt the outcomes of
research.
Item 2 Subsection 4(1) - Definitions
This item inserts definitions for "marketing activities" - which means the marketing,
advertising or promotion of products of primary industries - and for "marketing component"
- which means the component of a levy which is declared by the regulations to be used for
marketing purposes.
25
Item 3 After paragraph 5(3)(a) - Levies attached to R&D Corporations
This item inserts a paragraph to require the regulations to declare, for a levy that has a
marketing component, the proportion of that levy that is for marketing. This is needed so that
the funds to be spent by the R&D Corporation on marketing are clearly separated from the
funds that are to be spent on R&D activities.
Item 4 After paragraph 11(e) - Functions
This item inserts a paragraph into the functions of R&D Corporations to allow an R&D
Corporation to undertake marketing activities, where there is a marketing levy attached to the
Corporation.
Item 5 Paragraph 12(1)(a) and (b) - Powers
This item amends paragraphs 12(1)(a) and 12(1)(b) to reflect that R&D Corporations may
enter into agreements with other persons for carrying out marketing activities, as well as
R&D activities.
Item 6 Section 13 (heading) - Agreements for carrying out R&D activities by
other persons
The title of the section is amended to reflect the change made by Item 7.
Item 7 Subsection 13(1) - Agreements for carrying out R&D activities by other
persons
This item amends subsection 13(1) to allow an R&D Corporation to enter into an agreement
with another person for the other person to carry out marketing activities, if there is a
marketing levy attached to the R&D Corporation.
Item 8 Section 14 (heading) - Agreements for carrying out R&D activities with
other persons
The title of the section is amended to reflect the change made by Item 9.
Item 9 Subsection 14(1) - Agreements for carrying out R&D activities with other
persons
This item amends subsection 14(1) to allow an R&D Corporation to enter into an agreement
with another person for marketing activities to be carried out by the Corporation and the other
person, if there is a marketing levy attached to the R&D Corporation.
Item 10 Paragraphs 14(2)(a) to (d) - Agreements for carrying out R&D activities
with other persons
This item amends paragraphs 14(2)(a) to (d) which refer to matters that may be included in
agreements with other persons. In each paragraph "R&D activities" is replaced with
"activities" so that the paragraphs cover marketing as well as R&D activities.
26
Item 11 Paragraph 25(2)(a) - Annual operational plans
This item amends the paragraph to require the annual operational plan for an R&D
Corporation to include any marketing activities that the R&D Corporation proposes to fund
during the financial year.
Item 12 Subsection 25(3) - Annual operational plans
This item amends the paragraph to require the annual operational plan for an R&D
Corporation to include any marketing activities that the R&D Corporation is prepared to fund
during the financial year.
Item 13 After subparagraph 28(1)(a)(i) - Annual report
This item inserts a subparagraph to require the annual report of an R&D Corporation to
include the particulars of any marketing activities undertaken by the R&D Corporation.
Item 14 Before subsection 30(1) - Payments to R&D Corporation--general
This item inserts a subsection at the beginning of section 30. This subsection has the effect of
excluding expenditure on marketing activities from the R&D expenditure that is eligible for
Commonwealth matching funding.
Item 15 At the end of paragraph 30(1)(a) - Payments to R&D Corporation--
general
This item inserts a paragraph to allow a marketing component of a levy to be paid to an R&D
Corporation, if it is attached to the R&D Corporation.
Item 16 At the end of paragraph 30A(1)(a) - Payments to R&D Corporation
established in respect of the fishing industry
This item inserts a paragraph to allow a marketing component of a levy to be paid to an R&D
Corporation established in respect of the fishing industry, if that levy is attached to the R&D
Corporation.
Item 17 After section 33 - Expenditure of money of R&D Corporation
This item inserts a new section (33A) to specify that only money collected from a marketing
levy may be spent on marketing activities.
Item 18 Paragraph 40(1)(a) - Separate accounting records
This item replaces "R&D activities" with "activities" to allow the regulations to require an
R&D Corporation to keep separate accounting records in relation to specified classes of
activities, which could include marketing activities as well as R&D activities.
27
Item 19 Subsection 40(2) - Separate accounting records
This item replaces "R&D activities" with "activities" to allow the regulations to make
provision in relation to the expenditure of marketing money for which separate accounting
records are specified under Item 18.
Item 20 Subparagraph 60(1)(d)(i) - Purpose of annual general meeting
This item specifies that the proposed marketing component of a levy may not be debated or
voted upon at an R&D Corporations annual general meeting unless the motion is moved on
behalf of the Corporation to endorse a proposed Corporation recommendation to the Minister.
The Act currently imposes this restriction in relation to the research component of a levy.
Item 21 Paragraph 61(e) - Regulations may provide for certain matters
This item allows the regulations to take into consideration a marketing component of the levy
in prescribing the method of determining the number of votes that an eligible levy payer is
entitled to cast at an annual general meeting of an R&D Corporation.
Wool Services Privatisation Act 2000
Item 22 Paragraph 31(2)(a) - Funding contract with research body
This item specifically includes "marketing activities" in the list of activities on which
research body may spend "category A" payments. Category A payments relate to the wool
levy, and currently may be spent on R&D activities, other activities, or both. Marketing falls
within "other activities", and category A payments can therefore already be used to fund
marketing. The amendment will better reflect the fact that both R&D and marketing activities
are major components of the research bodys responsibilities.
Item 23 Subsection 32(3) - Setting the rate of wool levy
This item allows the timing of Wool Levy Poll to be prescribed in regulations. At present, the
Act refers to making recommendations regarding the rate of wool levy not later than "the
third anniversary of the previous recommendation." This is replaced by "the time prescribed
by the regulations". The Wool Levy Poll Regulations 2003 will be amended to specify that
recommendations on the rate of the wool levy are to be made not later than the third
anniversary of the previous recommendation.
The amendment will not change current practice, but would allow future changes to occur
through an amendment to the regulations. This approach is consistent with the arrangements
for other R&D Corporations.
28
Schedule 9--Miscellaneous amendments
Egg Industry Service Provision Act 2002
Item 1 Paragraph 7(2)(a) - Funding contract
The paragraph is amended to include ,,egg products in the definition of permitted spending of
promotion payments, and to standardise the terminology relating to marketing activities. The
Australian Egg Corporation Limited funds marketing of ,,egg products in the interests of the
egg industry, and the amendment will clarify the permitted scope of the Corporations
marketing activities. The term ,,marketing is included to bring the terminology into line with
other industry service provision legislation.
Primary Industries and Energy Research and Development Act 1989
Item 2 Subsection 4(1) (paragraph (b) of the definition of R&D activity)
This item makes a minor change to the wording of the definition of R&D Activity, to replace
,,training with ,,development of persons to carry out research and development. This change
clarifies the permitted scope of activities of the R&D Corporations.
Item 3 At the end of section 7 - Representative organisations
This item requires declarations of representative organisations in relation to an R&D
Corporation to be published on the Departments website. This will allow easier access to the
declarations and increase transparency.
Item 4 Paragraph 11(e) - Functions
This item amends paragraph 11(e) to clarify the scope of functions of the R&D Corporations.
R&D Corporations are permitted to disseminate and commercialise the results of research
and development, as well as facilitating others to do this.
Item 5 Paragraph 12(1)(c) - Powers
This item changes the wording of the paragraph to allow R&D Corporations to make
applications, including joint applications, in relation to intellectual property. The present
provision is limited to patents.
Item 6 Paragraph 12(1)(d) - Powers
This item changes the wording of the paragraph to allow R&D Corporations to deal with
results of research and development. The present provision is limited to patents.
Item 7 Section 26 - Approval of annual operational plans
This item repeals the section that requires annual operational plans to be approved by the
Minister. This amendment removes an administrative burden, and allows the Minister to
focus on the strategic direction of R&D investments, rather than on the day to day
management of the statutory RDC.
29
The section is replaced by a new section (Commencement of annual operational plan etc.) to
state that the plan comes into operation on the day of commencement of the period to which
the plan relates, and that it must be provided to the Minister and the representative
organisations of the RDC before it comes into effect.
Item 8 Subparagraph 28(1)(a)(iia) - Annual report
This item repeals a reporting requirement which relates to reporting on ecologically
sustainable development and has been superseded by the Environment Protection and
Biodiversity Conservation Act 2001.
Item 9 Subparagraph 28(1)(a)(iii) - Annual report
This item removes a reference to Ministerial approval of annual operating plans, which will
be abolished by Item 7.
Item 10 Subparagraph 28(1)(d)(ii) - Annual report
This item removes a reference to Research Funds under the Rural Industries Research Act
1985, which is obsolete.
Schedule 10--Repeal of spent transitional, consequential and amending
provisions
Primary Industries and Energy Research and Development Act 1989
Items 1 to 3
These items repeal the definitions of "Research Council", "Research Fund" and "Special
Research Fund". These definitions were carried over from the repealed Rural Industries
Research Act 1985 and are now obsolete.
Item 4 Subsection 5(3) - Levies attached to R&D Corporations or R&D Funds
This item removes a reference to subsection 5(4) which is being repealed (relating to the levy
imposed by the repealed Wheat Levy Act 1989).
Item 5 Subsections 5(4), (5) and (6) - Levies attached to R&D Corporations or
R&D Funds
This item repeals subsections 5(4), 5(5) and 5(6) which relate to the levy imposed by the
repealed Wheat Levy Act 1989 and are obsolete.
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Item 6 Part 6 - Transitional provisions and consequential amendments
This item repeals Part 6 of the Act, which outlines transitional arrangements for research
funds under the repealed Rural Industries Research Act 1985. These transitional provisions
are no longer required.
Schedule 11--Contingent amendments
Sugar Research and Development Services Act 2013
Item 1 Section 4 (at the end of the definition of matching amounts)
This item only comes into effect after the commencement of the Sugar Research and
Development Services Act 2013.
The Sugar Research and Development Services Act 2013, along with the Sugar Research and
Development Services (Consequential Amendments and Transitional Provisions) Act 2013,
provides for the Sugar Research and Development Corporation to be wound-up, and for a
new industry-owned RDC, Sugar Research Australia, to be established.
This item inserts a new paragraph into the definition of "matching amounts" to allow the
regulations to specify that other amounts may be included in the amounts that can be matched
by the Commonwealth. This amendment will allow regulations to provide matching funding
for voluntary contributions for R&D activities related to sugar, up to a specified amount.
Matching funding will not be provided above the ,,retention limit set by subsection 7(4). The
retention limit is the lesser of the 0.5% GVP cap and the 50% of eligible expenditure cap.
Item 2 After subsection 7(3) - Appropriation for payments under funding
contract etc.
This item only comes into effect after the commencement of the Sugar Research and
Development Services Act 2013.
This item inserts a subsection 7(3A) to allow the regulations to prescribe that the overall limit
for matching funding does not apply. This amendment will allow regulations to be amended
to provide matching funding for voluntary contributions for R&D activities related to sugar,
up to the ,,retention limit described in subsection 7(4). The retention limit is the lesser of the
0.5% GVP cap and the 50% of eligible expenditure cap.
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