Commonwealth Numbered Regulations - Explanatory Statements

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FORESTRY MARKETING AND RESEARCH AND DEVELOPMENT SERVICES AMENDMENT REGULATION 2015 (SLI NO 220 OF 2015)

EXPLANATORY STATEMENT

SELECT LEGISLATIVE INSTRUMENT No. 220, 2015

Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture and Water Resources

Forestry Marketing and Research and Development Services Act 2007

Forestry Marketing and Research and Development Services Amendment Regulation 2015

Legislative Authority

Section 16 of the Forestry Marketing and Research and Development Services Act 2007 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary and convenient to be prescribed for carrying out or giving effect to the Act.

Purpose

The purpose of the Forestry Marketing and Research and Development Services Amendment Regulation 2015 (the Regulation) is to amend the Forestry Marketing and Research and Development Services Regulations 2008 (2008 Regulations) to facilitate the Commonwealth providing matching payments, up to a specified annual limit, for voluntary contributions made to Forest and Wood Products Australia (FWPA) for eligible Research and Development (R&D) activities.

The aim of providing additional appropriation for matching payments for voluntary contributions is to induce and facilitate socially valuable R&D in the Australian forest and wood products sector that would not otherwise be undertaken.

FWPA is the declared industry services body for the Australian forestry industry under the Act. The Act provides for the Commonwealth and the industry services body to enter into a funding contract. The funding contract enables FWPA to receive forestry service payments, which include levies imposed and received by the Commonwealth. FWPA also receives funds from other sources, such as contractual payments by State government entities. The funding contract also enables the Commonwealth to provide matching payments which must be spent by FWPA on R&D activities for the benefit of the Australian forestry industry and the Australian community generally.

The Act was amended in 2013 to enable the Commonwealth to match voluntary contributions made to FWPA by entities other than the Commonwealth. Specifically, subsection 9(3) of the Act was amended to allow regulations to prescribe additional amounts to be included in the overall limit on appropriations for matching payments. These additional amounts will ensure that there is an appropriation for the Commonwealth to make matching payments for voluntary contributions made to FWPA for eligible R&D activities.

The annual limits on the retention of matching payments to FWPA still apply and are set out in subsection 9(4) of the Act.

The accountability and public good requirements associated with this new funding will be addressed through a revision to the funding contract between the Commonwealth and FWPA. The current funding contract, Agreement 2012-17 between the Commonwealth of Australia and Forest and Wood Products Australia Limited for the purposes of the Forestry Marketing and Research and Development Services Act 2007, is available at www.fwpa.com.au.

Consultation

Relevant agencies were consulted during the process of gaining policy authority for the change to the regulations.

As the implementing entity, FWPA was consulted on the conditions that will apply to the Commonwealth matching voluntary contributions.

The Office of Best Practice Regulation (OBPR) was consulted and a Regulatory Impact Statement was completed (OBPR reference number 19064).

Details/Operation

Details of the Regulation are set out in Attachment A.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulation is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment B.

Attachment A

Details of the Forestry Marketing and Research and Development Services Amendment Regulation 2015

Section 1 - Name

This section provides that the name of the Regulation is the Forestry Marketing and Research and Development Services Amendment Regulation 2015.

Section 2 - Commencement

This section provides for the Regulation to commence on the day after registration.

Section 3 - Authority

This section provides that the Regulation is made under the Forestry Marketing and Research and Development Services Act 2007.

Section 4 - Schedules

This section provides that the Forestry Marketing and Research and Development Services Regulations 2008 are amended as set out in Schedule 1.

Schedule 1 - Amendments

Item 1 inserts:

4A  Amounts towards limit for matching payments

This section prescribes additional amounts based on financial year for the purposes of determining the total limit on the appropriation for matching payments in accordance with subsection 9(3) of the Act. This will facilitate the Commonwealth providing matching payments for voluntary contributions made to Forest and Wood Products Australia for eligible research and development activities.

Attachment B

Statement of Compatibility with Human Rights

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

Forestry Marketing and Research and Development Services Amendment Regulation 2015

This 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

The Regulation prescribes additional amounts to be included in the total limit on the appropriation for matching payments set out in subsection 9(3) of the Forestry Marketing and Research and Development Services Act 2007. This facilitates the Commonwealth providing matching payments, up to a specified annual limit, for voluntary contributions made to Forest and Wood Products Australia for eligible research and development activities, in order to induce and facilitate investment in socially valuable research and development activities that would not otherwise be undertaken.

Human rights implications

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

Conclusion

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

Senator the Hon. Anne Ruston

Parliamentary Secretary to the Minister for Agriculture and Water Resources

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