Commonwealth Numbered Regulations - Explanatory Statements

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DRIED FRUITS RESEARCH AND DEVELOPMENT REGULATIONS 1991 NO. 331

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 331

Issued by the Authority of the Minister of State for Primary Industries and Energy.

PRIMARY INDUSTRIES AND ENERGY RESEARCH AND DEVELOPMENT ACT 1989

DRIED FRUITS RESEARCH AND DEVELOPMENT REGULATIONS

The Primary Industries and Energy Research and Development Act 1989 (the Act) provides for the establishment of Research and Development (R&D) Corporations and Councils in respect of industries covered by the primary industries and energy portfolio. The main objective of the Act is to provide a corporate framework for the funding and administration of primary industries and energy R&D.

Research Councils established under the Rural Industries Research Act 1985, including the Dried Fruits Research Council, have the option of forming an independent R&D Corporation, joining with another Council to form a joint Corporation, or becoming an R&D Council attached to the Rural Industries Research and Development (RIRD) Corporation.

The BIRD Corporation provides a practical avenue for corporatisation of those R&D Councils which consider that their level of funding is insufficient to justify establishing a separate Corporation. The R&D Councils under the RIRD Corporation determine the research program to be funded and are directly accountable to their representative bodies. They have access, on a fee for service basis, to the full range of services provided by the Corporation itself, including fund administration.

Section 92 of the Act provides that regulations may establish a R&D Council in respect of a primary industry. Subsection 92(b) provides for the name of the R&D Council to be specified in the regulations.

Subsection 149(2) of the Act provides that before making regulations for the purposes of section 92, the GovernorGeneral shall take into consideration any relevant recommendation made to the Minister by any of the organisations that, in the Minister's opinion, represent that primary industry. The Australian Dried Fruits Association and the Australian Prune Industry Association are considered by the Minister to represent the industry in respect of R&D arrangements and they have requested that an R&D Council be established within the RIRD Corporation in respect of dried fruits.

Where an R&D Council is established under section 92 of the Act, section 107 provides for an R&D Fund to be established in respect of that Council. The proposed regulations prescribe the name of the Fund.

Subsection 5(1) of the Act provides that regulations may attach a levy to an R&D Fund. Paragraph 5(3)(a) provides that the regulations must declare the research component of the levy, while paragraph 5(3)(b) provides that the regulations must declare the primary industry to which the levy relates.

The industry contribution to the Dried Fruits R&D Fund is to be raised under the Dried Fruits Levy Act 1971. Subsection 110(1) of the Act limits the Commonwealth's matching payments to the Fund in a particular financial year to a maximum amount equal to 0.5% of the gross value of production of goods, as determined by the Minister, for that financial year. Subsection 110(2) of the Act provides for a statement in the regulations as to the manner in which the Minister is to determine the amount of the gross value of production of goods of the industry for a financial year.

Explanations of individual regulations are attached.

ATTACHMENT

DETAILS OF THE DRIED FRUITS RESEARCH AND DEVELOPMENT REGULATIONS

Reaulation 1 is a formal provision.

Regulation 2 provides that the Regulations commence on 1 January 1992.

Regulation 3 provides interpretations.

Regulation 4 establishes the Dried Fruits Research and Development Council in respect of the dried fruits industry.

Regulation 5 establishes the Dried Fruits Research and Development Fund in respect of the Council.

Regulation 6 attaches the levy imposed under the Dried Fruits Levy Act 1971 to the Dried Fruits Research and Development Fund.

Regulation 7 provides a formula to be used by the Minister in determining the gross value of production of dried fruits.


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