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Buffalo Export Charge Bill 1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: On the same day as Part 3 of the proposed Australian
Meat and Live- stock Industry Act 1997, that is, on Proclamation
or nine months and one day after Royal Assent, whichever is first.
To impose a charge on buffaloes exported from Australia. The charge will be payable by the producer of the buffaloes.
Under existing law a charge is imposed by the Live-stock Export Charge Act 1977 on lambs, sheep, goats and buffalo exported from Australia. The charge is payable by the producer. The Primary Industries Levies and Charges Collection Act 1991 provides for the collection of the charge.
Proceeds raised by the charge are apportioned between the Meat Industry Council (MIC), the Australian Meat and Live-stock Corporation (AMLC), the Meat Research Corporation (MRC) and the Australian Animal Health Council Limited (AAHC).
The Live-stock Export Charge Act 1977 is being repealed by item 1 of Schedule 4 of the proposed Australian Meat and Live-stock Industry (Repeals and Consequential Provisions) Bill 1997.
This Bill forms part of a package of 17 Bills restructuring the regulatory framework of the Australian meat and live-stock industry. Under existing levy and charge arrangements, funds raised primarily go towards funding the MIC, AMLC and MRC. Under the proposed arrangements the government intends that industry contributions will be sourced on a statutory and non-statutory basis. The collection of statutory levies is intended to be based on the current system but with changes providing for a transaction levy on sheep, lambs and goats, replacing the current livestock slaughter levy, and a separate transaction levy on grain fed cattle.
The rationale given by the Minister in the Second Reading Speech to the Australian Meat and Live-stock Industry Bill 1997 for the transaction levy approach is:
The transaction levy approach for sheep, lambs and goats was adopted at the request of a clear majority of industry whose submission met all of the requirements of the government's levy principles. A similar request was also submitted by the grain fed cattle industry sector for a separate cattle transaction levy. Again this submission met each of the Government's levy principles.
The existing levy and charge imposition Acts have been modified to provide for clear sectoral ownership.(1)
In relation to non-statutory contributions, the government is setting the processor and exporter levies at zero. It should be noted that the Minister in the Second Reading Speech to the Bill issues a warning in respect of such contributions, that is:
Should the non-statutory contributions by processors and livestock exporters fail to meet agreed funding levels for joint industry functions, and as specifically agreed by these two sectors, the Government has their prior agreement to maintain levies at a required level to ensure there is adequate funding.(2)
Under the proposed arrangements, the Government intends that decisions on levels of levies and charges be the responsibility of the relevant peak industry council.
In respect to the buffalo industry it may be noted that the industry will not be contributing through the charge to the proposed marketing and research bodies, but rather to the Rural Industries Research and Development Corporation (RIRDC) and the National Cattle Disease Eradication Trust Account (NCDE), as per existing arrangements. The rationale given by the Minister in the Second Reading Speech to the Australian Meat and Live-stock Industry Bill 1997 for the proposed arrangements with respect to the buffalo industry is:
The particular requirements of the buffalo industry will be met by new buffalo export charge and slaughter levy acts. Separate levy acts are needed because the buffalo industry will retain slaughter levy and export charge arrangements. Contributions from the buffalo industry will continue to go to the RIRDC, the NRS [National Residue Survey] and the NCDE, as at present.(3)
The reader is also referred to the Digest for the Australian Meat and Live-stock Industry Bill 1997.
A charge will be imposed on buffaloes exported from Australia by clause 4.
Clause 5 provides that the regulations may provide that no amount of levy is payable by producers of buffaloes.
Clause 6 provides that the rate of charge on the export of each head of buffalo will be:
The charge will be payable by the producer of the buffaloes (clause 7).
Ian Ireland
4 November 1997
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.
ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library, 1997.
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Last updated: 12 November 1997