FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 1) REGULATIONS 2019 (F2019L00169) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]


FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 1) REGULATIONS 2019 (F2019L00169)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance and the Public Service

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Agriculture and Water Resources Measures No. 1) Regulations 2019

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies. The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations). 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.

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

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

 

The Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulations 2019 (the Regulations) amend Schedule 1AB to the Principal Regulations to establish legislative authority for government spending on an activity that will be administered by the Department of Agriculture and Water Resources.

 

The 2018-19 Budget included funding of $6.3 million over two years from 2018-19 for the extension of the Improved Access to Agricultural and Veterinary Chemicals program for:

*         continued and expanded collaboration between farmers and chemical industries

*         the continuation of a grants scheme

*         funding for Australia's involvement in international chemical access activities.

 

Existing table item 66 in Part 4 of Schedule 1AB to the Principal Regulations establishes legislative authority for government spending on the Improved Access to Agricultural and Veterinary Chemicals program. 

 

The Regulations amend table item 66 to provide legislative authority for government spending relating to Australia's involvement in international activities to improve information about, and access to, agricultural and veterinary chemicals. Funding and support will be provided to entities and organisations outside Australia, including funding the establishment of an international foundation with foreign governments to lead and support global efforts to deliver improved chemical access for growers and market access for producers.

 

Funding of up to $50,000 per annum for two years for the international activities will come from the 2018-19 Budget allocation.

 

Details of the Regulations are set out at Attachment A. A Statement of Compatibility with Human Rights is at Attachment B.

 

The Regulations are a legislative instrument for the purposes of the Legislation Act 2003. The Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.

 

Consultation

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources.

 

A regulation impact statement is not required as the Regulations only apply to non-corporate Commonwealth entities and do not adversely affect the private sector.

 

 

 


Details of the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No.1) Regulations 2019

 

Section 1 - Name

 

This section provides that the title of the Regulations is the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulations 2019.

 

Section 2 - Commencement

 

This section provides that the Regulations commence on the day after the instrument is registered on the Federal Register of Legislation.

 

Section 3 - Authority

 

This section provides that the Regulations are 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 Schedule to the Regulations.

 

Schedule 1 - Amendments

 

Item 1 - Part 4 of Schedule 1AB (table item 66, column headed “Objective(s)")

Item 2 - Part 4 of Schedule 1AB (at the end of the cell at table item 66, column headed "Objective(s)")

 

Items 1 and 2 amend existing table item 66 in Part 4 of Schedule 1AB to the Financial Framework (Supplementary Powers) Regulations 1997

 

Table item 66 establishes legislative authority for government spending on the Improved Access to Agricultural and Veterinary Chemicals program (the program) that commenced in 2014. The program is administered by the Department of Agriculture and Water Resources (the department).

 

The program supports a range of activities aimed at improving farmers' access to agricultural and veterinary chemicals for pest problems in emerging industries or infrequent pests in major crops (collectively known as 'minor uses'). The program benefits farm businesses and farm productivity through supporting diversification and the development of emerging crops and strengthening farm business viability.

 

Funding from 2014-15 to 2018-19 has supported a range of activities, including:

*         work to develop and implement a collaborative forum to allow stakeholders to more effectively share their access needs with each other and chemical companies

*         a domestic assistance grants program to address some or all of the costs associated with undertaking trials necessary to support a chemical's lawful use in Australia.

 

The 2018-19 Budget included funding of $6.3 million over two years from 2018-19 for:

*         continued and expanded collaboration between farmers and chemical industries

*         the continuation of a grants scheme

*         funding for Australia's involvement in international chemical access activities.

 

The funding was included under the measure 'Australian Agriculture and Export Growth Plan - Improved Access to Agricultural and Veterinary Chemicals', with details in Budget 2018-19, Budget Measures, Budget Paper No. 2 2018-19 at page 71.

 

The extended program will:

*         continue until 30 June 2020

*         continue the existing domestic grants program (up to $2 million per year) supporting rural research and development corporations (RDCs) to develop sufficient scientific evidence or argument to support applications for chemical registrations/use to the Australian Pesticides and Veterinary Medicines Authority

*         expand the collaborative arrangements of grower groups, chemical manufacturers and RDCs to establish a prioritised list of chemical needs that will inform the ministerial decisions for the domestic grants program

*         support Australian involvement and influence in international initiatives to improve farmer access to chemicals needed for pest problems in minor uses such as herbs and spices, quinoa and dairy fodder crops.

 

Item 1 amends table item 66 to establish legislative authority for government spending on Australia's involvement in international initiatives to improve information about, and access to, agricultural and veterinary (agvet) chemicals.

 

Item 2 amends table item 66 to list the additional constitutional heads of power that are referenced in the table item as a consequence of the amendment at item 1.

 

The amendments would allow the Government to provide funding or support to entities and organisations outside Australia, including support for the establishment of a foundation with foreign governments.

 

The Government will help to establish a single international foundation comprising membership from foreign governments. The foundation will be established to lead and support global efforts to deliver improved chemical access for growers and market access for producers. While a foundation has not yet been established, and details of its structure and location are yet to be finalised, pending sufficient global commitment, it is anticipated that the foundation would be located outside Australia.

 

The purpose of the foundation will be to improve access to agvet chemicals for minor uses. Australian Government funding provided to the foundation will be spent on initiatives that may include grants for chemical trials, cross-border information sharing, and international travel of Australian Government or foreign government officials related to activities supported by the foundation.

 

It is expected that funding decisions relating to the foundation's activities would be made in consultation with a governing board or group. Whilst the mechanism for dispersing grants and the eligibility criteria are yet to be finalised, it is expected that funding decisions would involve a chemical needs assessment for minor use industries and an assessment of the potential benefits from funding. It is also expected that the governing board or group would consist of suitably experienced Australian and/or foreign government officials and representatives from agricultural non-government organisations. The structure and administrative arrangements for the foundation will be developed with international partners. It is expected that these will include financial transparency and public engagement opportunities.

 

Supporting international activities allows Australian farmers to have access to global chemical practices and to overseas markets for their chemically-treated commodities. Australia will seek a leadership role to ensure global activities (such as establishing global agricultural practices for the use of a chemical product or maximum residue limits in a commodity) will benefit Australian farmers.

 

A lack of access to agvet chemicals for minor uses is a barrier to growth and transformation in many Australian farm businesses. The small scale of these minor use industries limits returns to chemical producers as the market does not provide sufficient incentive for supply. The lack of chemical access limits Australia maintaining or establishing itself as a significant market player in these industries.

 

Funding of up to $50,000 per annum for two years will be provided to the foundation as non-competitive, targeted grants. Consistent with requirements of the Commonwealth Grants Rules and Guidelines 2017, grant guidelines will be developed that are proportional to the risks of this activity and reflect the simplicity of the arrangement (single eligible entity). The guidelines will specify the grant is to support activities, consistent with the foundation's charter or other establishment documents, that will materially contribute to the improved access to agricultural chemicals for minor use. For example, this may include the establishment of maximum residue limits for a chemical in treated produce, or establishing import tolerances in an export market. The guidelines will not be made public.  

 

The decision-maker for the grants to the foundation will be the Secretary of the department or their delegate. The grants will be determined following consideration by the Secretary of the department or their delegate of the foundation's goals and alignment with Australian chemical access needs and its decision-making processes. The international grants to the foundation will not be awarded on application.

 

The recipient of the grants will be required to enter into a grant agreement with the department and payments will be provided based on the delivery of milestones in accordance with the agreement. Details of the grants will be published on GrantConnect at www.grants.gov.au.

 

The support will also be reported, as for the domestic grants for the program, on the department's website and in annual reports and ministerial media releases.

 

A merits review process is not considered to be appropriate due to the non-competitive and targeted nature of the grants. This is consistent with sections 4.16 and 4.18 of the Administrative Review Council's guide 'What decisions should be subject to merit review?'. That is, the grants will be a non-competitive payment directly to the international foundation.

 


 

Funding for the program, including a payment of up to $50,000 per annum to an international foundation, will come from Program 1.10: Agricultural Resources, which is part of Outcome 1. Details are set out in the Portfolio Budget Statements 2018-19, Budget Related Paper No. 1.1, Agriculture and Water Resources Portfolio at pages 20 and 42.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the amendments of the objective of the item reference the following powers of the Constitution:

*         the external affairs powers (section 51(xxix))

*         the trade and commerce power (section 51(i))

*         the aliens power (section 51(xix)).

 

External affairs power

 

Section 51(xxix) of the Constitution empowers the Parliament to make laws with respect to 'external affairs'. The external affairs power supports legislation with respect to matters concerning Australia's relations with other nations and international persons and with respect to matters or things outside the geographical limits of Australia.

 

Measures enabled by amendments to the program will involve funding an international foundation that will provide grants and fund initiatives to undertake agricultural and veterinary chemical trials, and will facilitate international information access and sharing relating to minor uses of such chemicals.

 

Trade and commerce power

 

Section 51(i) of the Constitution empowers the Parliament to make laws with respect to 'trade and commerce with other countries, and among the States'.

 

Measures enabled by amendments to the program will improve international trade for Australian treated produce by facilitating international initiatives to improve access to minor uses of agricultural and veterinary chemicals.

 

Aliens power

 

Section 51(xix) of the Constitution empowers the Parliament to make laws with respect to 'naturalisation and aliens'.

 

Amendments to the program will facilitate travel by Canadian experts to Australia to deliver a presentation at an Australian Government supported multiday forum designed to coordinate the activities of government, industry and other stakeholders in respect of minor uses of agricultural and veterinary chemicals.

 

 


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) Regulations 2019

 

This disallowable legislative instrument 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 FF(SP) 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.

 

The Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 1) Regulations 2019 amend table item 66 in Part 4 of Schedule 1AB to the FF(SP) Regulations to establish legislative authority for government spending on an activity that will be administered by the Department of Agriculture and Water Resources.

 

The amendment will enable funding to be provided for the extension of the Improved Access to Agricultural and Veterinary Chemicals program (the program) to support Australia's involvement in international activities to improve information about, and access to, agricultural and veterinary chemicals. The program supports a range of activities aimed at improving farmers' access to agricultural and veterinary chemicals for pest problems in emerging industries or infrequent pests in major crops (collectively known as 'minor uses').

 

The extended program will support participation in international minor uses' initiatives including funding the establishment of an international foundation to lead and support global efforts to deliver improved chemical access for growers and market access for producers.

 

The Government will support the establishment of a single international foundation comprising membership from foreign governments. While a foundation has not yet been established, and details of its structure and location are yet to be finalised, pending sufficient global commitment, it is anticipated that the foundation would be located outside Australia.

 

Australian Government funding provided to the foundation will be spent on initiatives that may include grants for chemical trials, cross-border information sharing, and international travel of Australian Government or foreign government officials related to activities supported by the foundation.

 

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

 

Human rights implications

 

This instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

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

 

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance and the Public Service


AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback