Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (NO. 3) 2004 NO. 103

EXPLANATORY STATEMENT

Statutory Rules 2004 No. 103

Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry

Primary Industries (Excise) Levies Act 1999
Primary Industries (Customs) Charges Act 1999
Primary Industries Levies and Charges Collection Act 1991

Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 2)
Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 3)
Primary Industries Levies and Charges Collection Amendment Regulations 2004 (No. 2)

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Levies Act), section 8 of the Primary Industries (Customs) Charges Act 1999 (the Charges Act) and section 30 of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act) provide that the Governor-General may make regulations prescribing matters required or permitted by those Acts to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to each Act.

The purpose of the regulations is to implement a marketing and research and development (R&D) levy and export charge scheme for the persimmon industry. The levy and export charge will be imposed on persimmons directed to domestic and export markets and payable at first point of sale. Currently, there are no Commonwealth levies or export charges on persimmons.

Horticulture Australia Limited (HAL) is the relevant industry services body for the administration of the persimmon industry levy and charge scheme and would be the body to manage moneys collected from the levies and export charges imposed on persimmon growers. HAL co-ordinates marketing and R&D programs for many horticultural industries. HAL is funded by statutory levies and export charges, voluntary contributions and Australian Government matching funding for eligible R&D expenditure. This matching funding is provided under the Horticultural Marketing and Research and Development Services Act 2000.

Primary Industries (Excise) Levies Regulations 1999

Subclause 4(1) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for marketing purposes.

Subclause 4(3) of Schedule 15 to the Levies Act provides that regulations may fix rates of levy for R&D purposes.

Subclause 6(4) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6(6) of Schedule 15 to the Levies Act provides that before the Governor-General makes regulations to fix rates of levy for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 6(7) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for marketing to the Minister.

Subclause 6(8) of Schedule 15 to the Levies Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy for R&D to the Minister.

Subclause 6(9) of Schedule 15 to the Levies Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.

The Regulations prescribe the Persimmon Industry Association Inc (PIAI) as the eligible industry body with which HAL must consult in relation to persimmons. HAL recommended the initial operative rates of levy to the Minister after consultation with the PIAI. The Regulations give effect to the recommendations of HAL, which are consistent with the persimmon industry's request.

Subclause 2(4) of Schedule 15 to the Levies Act provides that regulations may exempt certain horticultural products from levy.

Primary Industries (Customs) Charges Regulations 2000

Subclause 3(3) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for marketing purposes.

Subclause 3(5) of Schedule 10 to the Charges Act provides that regulations may fix rates of export charge for R&D purposes.

Subclause 5(3) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for marketing, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(5) of Schedule 10 to the Charges Act provides that before the Governor-General makes regulations to fix rates of export charge for R&D, the Minister must take into consideration any relevant recommendations made to the Minister by HAL.

Subclause 5(6) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export charge for marketing to the Minister.

Subclause 5(7) of Schedule 10 to the Charges Act requires HAL to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of export .charge for R&D to the Minister.

Subclause 5(8) of Schedule 10 to the Charges Act requires that a recommendation made by HAL to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.

The Regulations prescribe the Persimmon Industry Association Inc (PLO as the eligible industry body with which HAL must consult in relation to persimmons. HAL recommended the initial operative rates of export charge to the Minister after consultation with the PIAI. The Regulations give effect to the recommendations of HAL, which are consistent with the persimmon industry's request.

Primary Industries Levies and Charges Collection Regulations 1991

The Collection Act specifies no conditions that need to be met before the power to make Regulations may be exercised.

Schedule 22 to the Primary Industries Levies and Charges Collection Regulations 1991 sets out the details for payment of levy and export charge, provision of returns by liable persons and other collection matters for various leviable horticultural products.

The Regulations also:

•       impose a statutory marketing and R&D levy and export charge on persimmons directed for sale on the fresh domestic and fresh export markets;

•       set an initial operative marketing levy and export charge, each of 2.5 cents per kilogram (/kg on fresh persimmons; an initial operative R&D levy and export charge, each of 3.75 cents/kg on fresh persimmons; payable at first point of sale. The moneys raised would go to HAL to fund marketing and R&D. The Commonwealth will match eligible expenditure by HAL on R&D on a dollar for dollar basis;

•       exempt from levy persimmons sold by the producer by retail sale where the amount of levy payable on persimmons sold this way in a year would be less than $100; and

•       provide for the manner of payment of levy and export charge, the provision of returns by persons who become liable to pay the levy and export charge and the keeping of records.

The Persimmon industry levy and export charge scheme imposes levy totaling 6.25 cents/kg on all persimmons sold to the domestic market and export charge totaling 6.25 cents/kg on all persimmons sold to the export market.

Details of the regulations are set out in Attachment A.

The Office of Regulation Review was consulted in the preparation of the Regulations. A Regulation Impact Statement is attached, as Annex "A".

The regulations commenced on 1 July 2004.

0311165A
0311165B
0311165C

ATTACHMENT A

THE PRIMARY INDUSTRIES (EXCISE) LEVIES AMENDMENT REGULATIONS 2004 (No. 2)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Excise) Levies Amendment Regulations 2004 (No. 2).

Regulation 2 provides for the Regulations to commence on 1 July 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Excise) Levies Regulations 1999, (the Excise Levies Regulations).

Schedule 1

Item 1 inserts a new Part 24 about persimmons into Schedule 15 to the Excise Levies Regulations.

Clause 24.1 provides that persimmons are leviable horticultural products for the purposes of the definition in clause 1 of Schedule 15 to the Primary Industries (Excise) Levies Act 1999 (the Levies Act).

Clause 24.2 specifies that persimmons are exempt from levy where a producer sells persimmons by retail sale in a levy year and the total amount of levy that the producer would be liable to pay in a year on persimmons sold by retail sale would be less than $100.

•       Note 1 provides a cross-reference to the definition of retail sale.

•       Note 2 indicates that levy is not imposed by Schedule 15 to the Levies Act on leviable horticultural products that are exported from Australia.

Clause 24.3 sets an initial operative rate of marketing levy on persimmons of 2.5 cents/kg.

Clause 24.4 sets an initial operative rate of R&D levy on persimmons of 3.75 cents/kg.

Clause 24.5 provides that the Persimmon Industry Association Incorporated (ABN 68 001 472 008) is the eligible industry body for persimmons.

THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2004 (No. 3)

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2004 (No. 3).

Regulation 2 provides for the Regulations to commence on 1 July 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000, (the Customs Charges Regulations).

Schedule 1

Item 1 inserts a new Part 24 about persimmons into Schedule 10 to the Customs Charges Regulations.

Clause 24.1 provides that persimmons are chargeable horticultural products for the purposes of the definition in clause 1 of Schedule 10 to the Primary Industries (Customs) Charges Act 1999 (the Charges Act)

•       Note 1 advises that clause 24.2 is reserved for future use.

•       Note 2 indicates that charge is not imposed on persimmons that have had levy previously paid on them.

Clause 24.3 sets an initial operative rate of marketing charge on persimmons of 2.5 cents/kg.

Clause 24.4 sets an initial operative rate of R&D charge on persimmons of 3.75 cents/kg.

Clause 24.5 provides that the Persimmon Industry Association Incorporated (ABN 68 001 472 008) is the eligible industry body for persimmons.

THE PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION AMENDMENT REGULATIONS 2004 (No. 2)

Regulation 1 provides for the name of the Regulations to be the Primary Industries Levies and Charges Collection Amendment Regulations 2004 (No. 2).

Regulation 2 provides for the Regulations to commence on 1 July 2004.

Regulation 3 provides that Schedule 1 amends the Primary Industries Levies and Charges Collection Regulations 1991, (the Collection Regulations).

Schedule 1

Item 1 inserts a new Part 24 about persimmons into Schedule 22 to the Collection Regulations.

Clause 24.1 provides that the part applies to persimmons.

Clause 24.2 ,provides definitions for use in the part. The definitions are for "chargeable persimmons", "deal", "exporter", "leviable persimmons" and "retail sale".

•       Note 1 provides a cross-reference to persimmons being chargeable horticultural products.

•       Note 2 provides a cross-reference to persimmons being leviable horticultural products.

Clause 24.3 provides that a levy year for persimmons is a financial year.

Clause 24.4 prescribes persimmons for the definition of producer.

•       Note 1 clarifies that a producer can be the person who owns the product immediately after it is harvested (as defined in paragraph (b) of the definition of producer in the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act)).

•       Note 2 identifies the person who exports chargeable horticultural products, in this case persimmons, from Australia as a producer.

Clause 24.5 prescribes persimmons for the purpose of subsection 7(3) of the Collection Act in relation to the liability of exporting agents.

•       The Note indicates that exporting agents are liable to pay, on behalf of producers, unpaid charge and late payment penalty.

Clause 24.6 prescribes that for people who lodge quarterly returns, levy or charge is due for payment 28 days after the end of the quarter to which the levy or charge relates.

•       The Note indicates penalties can be imposed for late payment.

Clause 24.7 provides that the following persons who deal in leviable or chargeable persimmons in a quarter must lodge a return for a quarter:

A person who buys persimmons in the quarter;

A buying agent who buys persimmons in the quarter; A selling agent who sells persimmons in the quarter; An exporter who exports persimmons in the quarter; An exporting agent who exports persimmons in the quarter;

A producer who sells persimmons other than by retail sale in the quarter.

•       The Note indicates that offences may be applicable.

Clause 24.8 provides that a quarterly return must be lodged within 28 days of the end of the quarter to which it relates.

•       The Note indicates that offences may be applicable.

Clause 24.9 prescribes that for people who lodge annual returns, levy or charge is due for payment on 28 August in the following levy year.

•       The Note indicates that penalties can be imposed for late payment.

Clause 24.10 specifies that a producer who sells leviable persimmons by retail sale in a levy year must lodge an annual return.

•       The Note indicates that offences may be applicable.

Clause 24.11 prescribes that an annual return must be lodged by 28 August in the next levy year.

•       The Note indicates that offences may be applicable.

Clause 24.12 stipulates what must be included in a quarterly or annual return.

•       The Note indicates that offences may be applicable.

Clause 24.13 stipulates what records must be kept by producers. A penalty of 10 penalty units would apply to breaches of the Regulations. Section 4AA of the Crimes Act 1914 provides that a penalty unit equals $110. An offence under this clause would be an offence of strict liability.

•       The Note provides a cross-reference to offences in relation to how long records must be kept.

Clause 24.14 stipulates what records must be kept by first purchasers and buying agents. A penalty of 10 penalty units would apply to breaches of the Regulations. An offence under this clause would be an offence of strict liability.

•       The Note provides a cross-reference to offences in relation to how long records must be kept.

Clause 24.15 stipulates what records must be kept by exporters and exporting agents. A penalty of 10 penalty units would apply to breaches of the Regulations. An offence under this clause would be an offence of strict liability.

•       The Note provides a cross-reference to offences in relation to how long records must be kept.

Clause 24.16 stipulates what records must be kept by selling agents. A penalty of 10 penalty units would apply to breaches of the Regulations. An offence under this clause would be an offence of strict liability.

•       The Note provides a cross-reference to offences in relation to how long records must be kept.

Office of Regulation Review number: 2004-5987

REGULATION IMPACT STATEMENT

REGULATIONS FOR A PERSIMMON MARKETING AND PROMOTION AND RESEARCH AND DEVELOPMENT LEVY AND CHARGE

Background

The Australian persimmon industry has grown from a small number of growers in the early 1980s to an industry of around 250 growers. The major production regions are South-East Queensland, the Cobram/Shepparton and Mildura regions of Victoria, Renmark/Waikerie in South Australia and the South West of Western Australia. There are also growers scattered in most of the horticulture regions of Eastern and Southern Australia but no growers are known to be in Tasmania or the Northern Territory. The Persimmon Industry Association Inc. (PIAI) mailing list had a 35% representation from Queensland, 20% from Victoria, 18% from WA and around 13% each from NSW and SA.

Industry organisation has been most cohesive in Queensland through the activities of the Persimmon Group of the Sunshine Coast Sub-tropical Fruits Association and in South Australia and Victoria through the work of the Persimmon Industry Association. In 1997 the PIAI organised a series of grower meetings where it successfully gained endorsement as the primary organisation to represent Australian persimmon growers.

The Australian Persimmon Industry has grown rapidly over the 5 years to 2003, with up to 40% of the industry's 350,000 trees less than 5 years old.

1. Problem to be addressed

While the persimmon industry has been rapidly expanding over the last decade, it is still a relatively small industry producing a product not traditionally consumed by most Australians, with less than 10% of Australians having tried the fruit. The rapid expansion of persimmon production over the 5 years to 2003 has not been accompanied by any significant efforts in market development and research into fruit quality and orchard productivity. This has resulted in increased pressure on grower's returns as the industry encounters difficulty accessing new markets and expanding current markets to accommodate increased supply.

The industry has grown even though there is incomplete information available to persimmon consumers and producers. This under investment in industry marketing, research and development (R&D) and extension activities is because of market failure. This market failure is because the associated goods produced from investment in marketing and R&D are non-exclusive (people cannot be excluded from consuming the good) allowing persimmon producers to access the associated benefits of these activities without paying for them.

Market failure and the resulting under investment in marketing and R&D for persimmons has resulted in:

•       a domestic market focus and dependence;

•       variable supply adversely affecting market development, especially export markets which require large product volumes committed well before the harvest season;

•       inferior orchard management and supply chain handling practices leading to a high incidence of post harvest breakdown and fruit being rejected at the market or sold at prices below the cost of production;

•       low consumer confidence due to the variability in quality and shelf life of the product, leading to fluctuating market prices and declining industry profitability;

•       lack of consumer knowledge of persimmon quality characteristics and the associated health benefits of persimmon consumption;

•       less than optimal adoption of sustainable environmental management practices; and

•       low adoption rates of research and development.

The forecast increase in persimmon production means additional activities in marketing, R&D and extension will be required to maintain real returns to growers and produce a long-term viable and sustainable industry.

2. Objective of the Regulations

The objective of the proposed regulations is to increase R&D and marketing activities in the persimmon industry for the benefit of growers, consumers and the community. Currently there is little or no investment in these areas of the industry, due to the lack of return on investment obtained by those in a position to fund the various activities.

PIAI has identified the key issues confronting the persimmon industry and has formulated an industry strategic plan for 2003-08. The key issues and activities outlined in the PIAI industry strategic plan include:

•       increase grower uptake of best management practices;

•       overcome the current major soft fruit and quality problems;

•       provide a stable supply of quality fruit to existing markets;

•       expand the domestic market with more Australians consuming persimmons;

•       open new export markets and expand existing export markets.

•       improve industry communication and management;

•       access control options for all major pests and diseases by the 2004 season;

•       have available suitable methods of fruit treatment to overcome market access issues related to quarantine for the 2006 harvest season;

•       increase domestic persimmon consumption by 30% over four seasons from 2004 to 2007; and

•       expand persimmon exports from around 100,000 trays in 2003 to 200,000 trays by 2007.

3. Identification of options to achieve the objective

Queensland Levy

The option of a compulsory Queensland levy is not possible, since the Queensland Government repealed the relevant legislation in 1999 that resulted in the statutory levy for persimmons being removed in June 2003. The levy that was paid by Queensland persimmon growers from the mid 1990s up until June 2003 was also inequitable because persimmon growers in other states did not pay the levy.

Voluntary Levies

Voluntary contributions have not been recommended by the industry because of the potential for some growers to act as 'free-riders', failing to contribute while gaining the benefit of the marketing and R&D activities. The PIAI attempted a voluntary levy in the past with limited success, with the small levy contributions received insufficient to fund the marketing and R&D needs of the persimmon industry.

Industry Cooperatives/Marketing Groups

There is no single grower or group of growers of persimmons in Australia that dominate the industry. Therefore this option is not considered appropriate.

Private research providers

The marketing and research and development activities required for the persimmon industry as outlined in the PIAI strategic plan are not activities that have been able to provide a commercial return for private research providers. This is because of the public good nature of these activities, where persimmon producers and consumers can access the associated benefits of marketing and research without paying for them.

Proposed Compulsory National Levy

A national statutory levy and export charge is proposed for the Australian persimmon industry. The proposed levy would be compulsory Australia-wide and would enable the industry to fund essential marketing and R&D programs as outlined in the PIAI 2003-2008 Strategic Plan. The persimmon industry proposal is for a statutory marketing levy and export charge of 2.5 cents/kg and an R&D levy and export charge of 3.75 cents/kg on persimmons produced in Australia and sold on domestic and export markets.

A compulsory national levy and export charge would address the market failure in marketing and R&D applicable to the persimmon industry. This market failure in the persimmon industry could be corrected by R&D that is jointly funded by the persimmon industry and the Australian Government. This would ensure that all who benefit from the R&D will pay for it either as persimmon producers, persimmon consumers or taxpayers. The R&D component of the levy/charge would attract Australian Government matching of the R&D expenditure.

4. Impact analysis

Likely Costs

Persimmon producers would pay the proposed levy and export charge of 3.75 cents/kg (15 c/tray) for R&D and 2.5 c/kg (10 c/tray) for marketing for a total levy of 6.25/c/kg or 25 c/tray. Based on an Australian persimmon industry crop of 450,000 trays, the proposed levy and export charge is expected to raise around $112,500 annually. With an industry of around 250 growers the 'average' grower would produce 1800 persimmon trays and pay around $450/year. Total industry levy costs of $112,500 would represent around 1.6% of the persimmon industry's gross value of production of $7 million.

The cost to the Australian Government is estimated to be $40,000 annually in matching funds for R&D expenditure based on a crop of 450,000 trays or 1800 tonnes. This annual cost is expected to increase over the medium term as production increases. The Government does not match expenditure on marketing programs.

There will be no administrative costs for the Australian Government in collecting and remitting the levy and export charge as the Levies Revenue Service of the Australian Government Department of Agriculture, Fisheries and Forestry operates under full cost recovery.

It is not expected the imposition of the levy will have a significant impact on consumer prices. However the R&D, marketing and promotion programs that would be funded by the levies should lead to better quality produce becoming available and enhanced consumer demand for persimmons. This may result in higher prices for the better quality persimmons, although an increased supply of persimmons due to levy funded R&D is likely to keep a check on any price rises.

Likely Benefits

After deducting levy collection costs of 5 % and administrative fees of 15 % for Horticulture Australia Limited (HAL) it is expected there would be around $36,000 available for the marketing program and $86,000 available for the R&D program (including government matching funds). The financial commitment for government matching funds will be accounted for in the Australian Government Department of Agriculture, Fisheries and Forestry's forward estimates of Commonwealth expenditure.

The PIAI believes the levy and export charge will benefit all persimmon growers as well as consumers and the general community.

Persimmon producers will benefit through improvements in orchard and supply chain efficiency, which will also allow domestic and export markets to be further developed. The PIAI 2003-08 Strategic Plan estimates marketing and research programs could increase persimmon production by 20-30% over the next 5 years. Consumers will benefit from improved access to healthy food, improved product reliability, product quality and food safety. The broader Australian community would also benefit from improved natural resource management, environmental sustainability and worker safety.

Based on an industry gross value of $7 million and if on-farm costs were 30% of farm gate value, then a one percent reduction in costs nationally would generate a net benefit of $21,000/year, compared to an expected industry R&D levy cost of almost $70,000/year.

In the longer term the benefits of the proposed statutory national persimmon levy are likely to significantly exceed the costs. This scenario has occurred in other industries where a national statutory levy is in place.

For example, the benefit/cost ratio of promotional programs for fresh stone fruit has been in the range of 3:1 to more than 20:1. Also public relations work with food media undertaken by HAL of $35,000 per annum has consistently yielded media coverage estimated to be worth in excess of $750,000 per annum. Food media public relations activities undertaken by Queensland Fruit and Vegetable Growers have consistently yielded media coverage of greater than 20 times the dollar value invested.

The Australian Government sees R&D as one of the keys to achieving profitable, competitive and sustainable rural industries. This was confirmed when Senator the Hon Judith Troeth, Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, launched the 2002 edition of Innovating Rural Australia: Research and Development Corporation Outcomes on 27 March 2003.

The report highlights the important role R&D plays in improving the competitiveness and sustainability of agricultural industries and the benefits they provide to rural communities across regional Australia. In 2001-02 rural industries contributed $209 million to R&D with the Australian Government adding another $196 million.

On 27 March 2003 Senator Troeth also announced the Australian Government's rural research priorities, which come under the umbrella of the national research priorities, announced by the Prime Minister in December 2002. The new rural research priorities are:

•       sustainable natural resource management;

•       improving competitiveness through a whole-of-industry approach that emphasises efficient and effective supply chain management;

•       maintaining confidence in the integrity of Australia's food, fish and forestry products;

•       improving trade and market access;

•       making use of 'frontier' technologies;

•       protecting Australia from invasive diseases and pests; and

•       creating a culture of innovation, largely by investing in the sector's most important asset - its people.

The R&D programs to be funded from the national compulsory persimmon R&D levy and charge proposed by the PIAI will be compatible with the Australian Government's rural research priorities.

Competition Policy

The levy and export charge will be applied equitably to all persimmon growers and the marketing and R&D activities are designed to assist the industry as a whole. The proposed levy and export charge will therefore have no impact on competition within the industry. Continued funding for marketing and R&D is expected to enhance the industry's efficiency.

5. Consultation

The PIAI conducted a thorough consultation campaign with all known potential levy payers in line with the Australian Government's levy principles and guidelines. There has been widespread industry consultation over 18 months, during which time every effort has been made to ensure that all potential levy payers were aware of the proposed levy and that they were given the opportunity to contribute to the debate regarding the introduction of the levy. Publicity regarding the proposed persimmon levy was targeted at the major production regions through grower meetings and the general horticultural community was also made aware of the proposed levy.

In June 2003 ballot papers were forwarded to 205 persimmon growers with 67 formal ballots returned. The marketing and promotion levy/charge was supported by 76% of voters while the R&D levy/charge was supported by 70% of voters. In addition to this ballot, growers voted in favour of the introduction of a persimmon levy at four meetings held in the major production regions during 2002. These meetings were located within a reasonable distance of 80% of persimmon growers identified in the PIAI database.

The PIAI would appear to have a solid mandate for the proposed levy and export charge.

6. Conclusion and recommended option

The proposed compulsory national persimmon levy and charge is regarded as the only effective means of correcting market failure in funding marketing and R&D that exists in the industry.

The proposal for a national statutory levy and export charge for marketing and R&D for the persimmon industry:

•       conforms to the Australian Government's levy principles and guidelines;

•       does not restrict competition;

•       has limited financial impact on the Commonwealth; and

•       has clear potential to benefit the industry.

The recommended option is to implement a compulsory levy and export charge under the Primary Industries Levies and Charges Collection Act 1991, the Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 to fund persimmon marketing and R&D through HAL.

7. Implementation and review

The levy is to be implemented as soon as practicable, depending on the legislative process.

The PIAI does not expect to review the levy and export charge within a designated time frame. However, the compulsory annual levy payers meeting which is held for all the 22 existing horticultural industries with statutory levies in place and would also be obligatory for the persimmon industry once a statutory levy and charge has been enacted, provides growers with an annual forum in which levy matters can be raised and reviewed.

Horticulture Policy
Food and Agriculture
Australian Government Department of Agriculture, Fisheries and Forestry

February 2004


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