Commonwealth Numbered Regulations - Explanatory Statements

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FISHERIES LEVY (TORRES STRAIT PRAWN FISHERY) AMENDMENT REGULATIONS 2009 (NO. 2) (SLI NO 346 OF 2009)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2009 No. 346

 

Issued by the Minister for Agriculture, Fisheries and Forestry

Fisheries Levy Act 1984

 

Fisheries Levy (Torres Strait Prawn Fishery) Amendment Regulations 2009 (No. 2)

 

The Fisheries Levy (Torres Strait Prawn Fishery) Amendment Regulations 2009 (No. 2) (the Regulations) are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Section 8 of the Fisheries Levy Act 1984 (Levy Act) provides that the Governor-General may make regulations for the purposes of sections 5 and 6 of the Levy Act. Section 5 of the Levy Act imposes a levy on, amongst other things, the grant or renewal of a licence and of the allocation and renewal of units of fishing capacity issued under the Torres Strait Fisheries Act 1984
(TSF Act). Section 6 of the Levy Act provides that the amount of levy imposed on the grant or renewal of a licence or on the allocation or renewal of units of fishing capacity is such an amount as is specified in the Regulations. Section 7 of the Levy Act provides that the levy is payable at the time of the grant, renewal or variation of the licence, and at the time of the allocation or renewal of units of fishing capacity.

 

The attributable costs of managing the Torres Strait Prawn Fishery (TSPF) are recovered from industry pursuant to a decision of the Protected Zone Joint Authority (PZJA). The PZJA agreed to split the costs to be recovered on the basis of fixed (per boat) and variable (per day – now per unit) components to provide an equitable division of expenses depending on operators’ investment in the fishery. The TSPF is the only Torres Strait fishery currently subject to cost recovery arrangements.

 

The Torres Strait Prawn Fishery Management Plan 2008 (the Plan) was determined on 6 February 2009. The Plan provides for the allocation of ‘units of fishing capacity’ to TSPF licence holders. The units of fishing capacity are then converted annually into a number of fishing days (annual use entitlement) depending on the total allowable effort for the fishery in a given season.

 

The levy costs for the TSPF are attributable to services provided by the Australian Fisheries Management Authority (AFMA) and Queensland Primary Industries and Fisheries (QPIF), which sits within the Queensland Government Department of Employment, Economic Development and Innovation. QPIF is responsible for administering the licensing component in management of the TSPF and distributing the annual levy invoices. AFMA is responsible for general management and consultation in relation to the fishery.

 

The Regulations amend the Fisheries Levy (Torres Strait Prawn Fishery) Regulations 1998. The levy Regulation reduces the 2010 levy for licences granted or renewed in the TSPF from $5,833.39 to $4,229.06 per licence (fixed component) and reduces the levy for each individual allocated fishing unit from $32.35 to $27.23 per unit (variable component).

 

The total cost recovered budget for 2009–10 is $502,040 compared with $561,618 for 2008–09. This is a reduction of $59,578 or 10.6 per cent compared to the 2008–09 budget. There has been an overall decrease in the amount recovered ($444,951) from industry in the 2009–10 financial year of $133,006 when compared to the 2008–09 financial year ($577,957). For more detailed information on the basis of the 2009–10 levy costs and comparisons between levies collected during 2008–09 and levies collected during 2009–10 see the Attachment.

 

The Office of Best Practice Regulation has been consulted in relation to these Regulations (OBPR ID 10636).

 

Consultation

 

The budgets on which the rates for the levy are based were prepared in consultation with the Torres Strait Prawn Management Advisory Committee (TSPMAC). The TSPMAC, made up of representatives from industry and government noted the 2009–10 fishery budget at a teleconference on 7 May 2009. The draft levy regulations were discussed and noted at a TSPMAC teleconference on 26 August 2009. The Torres Strait Protected Zone Joint Authority Standing Committee comprised of senior officers from AFMA, QPIF, the Department of Agriculture, Fisheries and Forestry (DAFF) and the Torres Strait Regional Authority recommended these levies on 16 September 2009. The Torres Strait Protected Zone Joint Authority agreed to these Regulations on DATE. AFMA has consulted with DAFF and QPIF about the Regulations and associated explanatory documents.

 

 


 

The Regulations

 

Details of the Regulations are set out below.

 

Regulation 1 provides for the instrument to be cited as the Fishery Levy (Torres Strait Prawn Fishery) Amendment Regulations 2009 (No. 2).

 

Regulation 2 provides that the instrument commences the day after it is registered.

 

Regulation 3 provides that Schedule 1 amends the Fisheries Levy (Torres Strait Prawn Fishery) Regulations 1998.

 

Schedule 1 substitutes regulation 4 as follows:

 

New subregulation 4(1) provides that for subsection 6(1) of the Fisheries Levy Act 1984, the fee payable for the granting of a licence mentioned in subregulations 3(1) and (2), is the fee set out in the item.

 

New subregulation 4(2) provides that for subsection 6(1) of the Fisheries Levy Act 1984, the fee payable for the renewal of a licence mentioned in subregulations 3(1) and (2), is the fee set out in the item.

 

New subregulation 4(3) provides that for subsection 6(1) of the Fisheries Levy Act 1984, the fee payable for the variation of a licence mentioned in subregulations 3(1) and (2), is the fee set out in the item.

 

New subregulation 4(4) provides that for subsection 6(1) of the Fisheries Levy Act 1984, the fee payable for the allocation of a unit of fishing capacity mentioned in subregulations 3(3), is the fee set out in the item.

 

New subregulation 4(5) provides that for subsection 6(1) of the Fisheries Levy Act 1984, the fee payable for the renewal of the allocation of a unit of fishing capacity mentioned in subregulations 3(3), is the fee set out in the item.
Attachment

Basis of the levy

Table 1. Levy Calculation, describes the basis for the levy for 2010, which in accordance with previous practice is based on the 2009–10 budget.

 

Cost recovered budget

2009–10

Carry forward

(Surplus)/ deficit

from 2008–09 budget

Amount to be recovered via 2010 levy (levy base)

 

a

b

a+b = c

AFMA logbook collection

19,700.00

(2,229.00)

17,471.00

AFMA logbook data entry

12,863.00

2,196.00

15,059.00

Queensland Boating and Fisheries Patrol (surveillance)

68,995.00

517.00

69,512.00

Administration/ other & licensing

 

400,482.00

(57,573.00)

342,909.00

TOTAL

 

502,040.00

(57,089.00)

444,951.00

 

Table 2. The levy costs for 2010, which are based on the 2009–10 budget, split between the licence and unit components.

 

License component 2010

Unit component 2010

Amount to be recovered via 2010 levy

 

a

b

a+b = c

AFMA logbook collection

17,471.00

0

17,471.00

AFMA logbook data entry

0

15,059.00

15,059.00

Queensland Boating and Fisheries Patrol (surveillance)

34,756.00

34,756.00

69,512.00

Administration/ other & licensing

 

205,745.40

137,163.60

342,909.00

TOTAL

 

257,972.40

186,978.60

444,951.00

 

The 2009–10 cost recovered budget is $502,040 compared with $561,618 for 2008–09, which is a decrease of $59,578 (10.6 per cent). This decrease is mainly due to a reduction in the overheads attributed to the budget and a reduction in the budgeted costs for indirect administration. As the 2008–09 budget was underspent by $57,089, this is applied to the 2010 levy base as a credit. Consequently, the amount to be cost recovered from industry through the levy base for 2010 is $444,951, which is calculated by subtracting the 2008-09 underspend ($57,089) from the 2009-10 budget ($502,040) and represents a 23 per cent decrease.

The $444,951 levy amount comprises $257,972.40 in ‘fixed’ licensing costs and $186,978.60 in ‘variable’ costs for the fishing unit component.

The levy cost per licence for 2010 is $4,229.06. This is derived by dividing the total ‘fixed’ licence component of $257,972.40 by the total number of licences in the fishery (61).

The levy cost per unit allocated for 2010 is $27.23. This is derived by dividing the total ‘variable’ unit component of $186,978.60 by the total number of units allocated to Australian licence holders in the fishery (6,867).

Decreases to the budget have occurred in the following areas;

·        Australian Fisheries Management Authority (AFMA) – general costs – the completion of the Torres Strait Prawn Fishery Management Plan 2008 eliminates the costs of hiring a legislative drafter which was included in the 2008–2009 budget. A decrease of $5,600 occurred;

·        AFMAtravel costs – due to budgeting for only two face-to-face Torres Strait Prawn Management Advisory Committee meetings rather than three as in past financial years there was a decrease of $8,142;

·        AFMAoverheads – decreases to general overheads of $34,107 occurred due to a decrease to the number of staff being allocated to the fishery;

·        AFMA – salaries and staff costs – although salaries increased in line with the certified agreement, the staff time allocated to the fishery decreased, resulting in a decrease of $6,467;

·        AFMA – general indirect administration costs – decreased by $23,199; and

·        AFMA – data management - $3,514 decrease due to the TSPF using less of the data management sections time.

Increases to the budget have occurred in the following areas;

·        AFMA – observer program – due to increased travel costs associated with the observer program there was a $8,283 increase;

·        AFMA – logbooks and data entry – due to using more of the logbook sections time than in the past there was a $4,356 increase; and

·        QLD Primary Industries & Fisheries management costs and licensing - due to salaries and associated costs in line with enterprise bargaining agreements there was an increase of $7,896; and

·        QLD Boating and Fisheries Patrol Surveillance and Compliance – although the AFMA surveillance component was removed from the budget there was still a net increase of $916 due to salaries and associated costs in line with enterprise bargaining agreements.

 

 

 

 


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