Commonwealth Numbered Regulations - Explanatory Statements

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HONEY LEVY (NO. 2) REGULATIONS (AMENDMENT) 1995 NO. 354

STATUTORY RULES 1995 No. 354

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

Honey Levy Act (No. 2) 1962

Honey Levy (No. 2) Regulations (Amendment)

Market research and promotion activities for the honey industry are administered at the national level by the Australian Horticultural Corporation (the AHC) which is established under the Australian Horticultural Corporation Act 1987 (the AHC Act). This arrangement has been in place since 1 January 1993.

The honey industry contributes to the AHC through levies imposed under the Honey Levy Act (No.1) 1962 and the Honey Levy Act (No.2) 1962. The Honey Levy (No.1) Regulations and the Honey Levy (No.2) Regulations prescribe the rate of levy for the purposes of paragraph 5(1)(a) of both Acts at 2.75 cents per kilogram.

Section 7 of the Honey Levy Act (No.2) 1962 (the Act) provides that the Governor-General may make regulations for the purposes of paragraph 5(1)(a) of the Act.

Subsection 5(2) of the Act provides that the Governor-General, before making any regulations for the purposes of subsection 5(1) of the Act, must take into consideration any relevant recommendation made to the minister by the producers, organisation. The producers' organisation, by virtue of subsection 5(2A) of the Act, must not make a recommendation to the Minister unless it has consulted with the ARC in relation to the recommendation.

The Federal Council of Australian Apiarists, Associations (the FCAAA), which is the prescribed producers, organisation for the purposes of the Act, has requested that the AHC component of the honey levy be reduced from 2.75 cents per kilogram to zero. The FCAAA has requested the change in levy rate to be effective from the end of 1995.

Implementation of this request effectively means that from 1 January 1996, there will be no statutory levy imposed on honey to fund marketing and promotion activities through the AHC. However, there will continue to be a levy on honey to fund research and development activities through the Honey Bee Research and Development Committee of the Rural Industries Research and Development Corporation.

The attached Regulations (Amendment) change the rate of levy on honey from 2.75 cents per kilogram to a zero rate of levy effective from 1 January 1996.