Details of the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulation 2016.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (table)

 

This item adds a new table item to Part 4 of Schedule 1AB that establishes legislative authority for government spending on an activity administered by the Department of Agriculture and Water Resources.

 

New table item 155 establishes legislative authority for the Government to fund the Farm Co-operatives and Collaboration Pilot Program which will provide, or arrange for the provision of, training and materials on co-operatives, collective bargaining and innovative business models to farmers and farmer groups. 

 

Funding of $13.8 million for this program forms part of the $25.2 million for Fairer Competition for Farm Produce announced in the Agricultural Competitiveness White Paper which was released by the former Prime Minister, the Hon Tony Abbott MP, and the Minister for Agriculture, the Hon Barnaby Joyce MP, on 4 July 2015.  The Farm Co-operatives and Collaboration Pilot Program seeks to counter-balance retailer and processor market power and achieve fairer farm gate prices.  The White Paper is available at www.agwhitepaper.agriculture.gov.au.

 

Operating as a two-year program from 2015-16, funds will be provided to a grantee to develop resource materials and deliver training workshops across the country.  Topics could include establishing co-operatives, negotiating with suppliers, attracting external investment and strengthening their position in national and international supply chains.  Farmers will have access to specialist advisers to assist them in implementing their plans.

 

Spending decisions will be made by the Minister for Agriculture and Water Resources.  Expenditure for this program will be made in accordance with the Public Governance, Performance and Accountability Act 2013, the Commonwealth Grants Rules and Guidelines (CGRGs) and related departmental guidelines.  Spending decisions will be made public as required by the CGRGs.

 

Decisions for funding will be made on a targeted basis to support program outcomes and objectives.  The department may initiate a competitive process with guidelines that target specific outcomes.  Where a competitive process is adopted, information including program guidelines will be published on the department's website.  Information on complaints review mechanisms and how they will be dealt with will form part of the guidelines.  All grants provided will be published on the Department of Agriculture and Water Resources' website (www.agriculture.gov.au).

 

This initiative will help strengthen the business orientation of farmers, increase the ability of farmers to control a larger volume of product, and enable farmers to operate at a larger scale, where appropriate.  As a pilot, the program is unsuitable for merits review as the program has limited funds and a two-year time frame.  A successful application for review would result in funding delays that would affect any grants under the program, affecting the successful and timely provision of support to farmers and farmer groups to enhance collaborative arrangements.

 

Funding for the program is described in the Mid-Year Economic and Fiscal Outlook 2015-16 in the measure 'Stronger Farmers, Stronger Economy -- a fairer go for farm businesses' at page 142.  The program comes under Programme 1.10: Agricultural Resources which is part of Outcome 1: More sustainable, productive, internationally competitive and profitable Australian agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance and improved access to international markets.  Details are set out in the Portfolio Additional Estimates Statements 2015-16, Agriculture and Water Resources Portfolio at pages 21 and 39. 

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the trade and commerce power (section 51(i)) of the Constitution.

 

 

 

 

 

Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulation 2016

 

This Regulation 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 Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013. 

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government on the Farm Co-operatives and Collaboration Pilot Program which will provide training and materials on co-operatives, collective bargaining and innovative business models to farmers and farmer groups. 

 

This program was included in the Agricultural Competitiveness White Paper, which was released by the former Prime Minister, the Hon Tony Abbott MP, and the Minister for Agriculture, the Hon Barnaby Joyce MP, on 4 July 2015.  The program will be administered by the Department of Agriculture and Water Resources.

 

The Minister for Agriculture and Water Resources has portfolio responsibility for this program.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance