Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (APPLE AND PEAR)REGULATIONS (AMENDMENT) 1997 NO. 51

EXPLANATORY STATEMENT

STATUTORY RULES 1997 No. 51

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

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987

Primary Industries Levies and Charges Collection (Apple and Pear) Regulations (Amendment)

The Horticultural Levy Act 1987 (the Levy Act) and the Horticultural Export Charge Act 1987 (the Export Charge Act) provide for the imposition and collection of levy and export charge to fund the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC).

The Australian Horticultural Corporation (AHC) carries out marketing and promotion activities for many horticultural industries, mainly funded by statutory levies and export charges.

The Horticultural Research and Development Corporation (HRDC) co-ordinates research and development for many horticultural industries. The HRDC is funded by statutory levies and export charges, voluntary contributions and Commonwealth Government matching funding.

Subsection 14(1) of both the Levy and Export Charge Acts provide that the Governor-General may make regulations for the purposes of the Acts.

Section 8 of both the Levy and Export Charge Acts provide that the regulations may fix rates of levy and export charge destined for the AHC.

Subsection 14(3) of both the Levy and Export Charge Acts provide that the Governor-General, before making any regulations for the purposes of Section 8, shall consider any relevant recommendation made by the AHC to the Minister in relation to the levy rate.

Subsection 14(6) of both the Levy and Export Charge Acts require that before making a recommendation to the Minister, the AHC shall consult the eligible industry body, for the leviable horticultural product, which in the case of apples and pears is the Australian Apple and Pear Growers Association (AAPGA).

Subsection 14(8) of the Levy and Export Charge Acts require that recommendations made by the AHC to the Minister be accompanied by a written statement of the views of the industry body consulted in relation to the recommendation.

The Primary Industries Levies and Charges Collection (Apple and Pear) Regulations (Amendment) give effect to the AAPCA's decision to increase the apple and pear industry's contributions to the AHC. The AHC has recommended the proposed changes. No change is being made to the levy and export charge directed to the HRDC.

The purpose of the Regulations is to increase the amount of levy and export charge directed towards the AHC by 3 cents per box to 20 cents per box for fresh apples, 30 cents per tonne to $2.00 per tonne for juicing apples, 60 cents per tonne to $4.00 per tonne for processing apples, 3.5 cents per box to 22.5 cents per box for fresh pears, 35 cents per tonne to $2.25 per tonne for juicing pears and 70 cents per tonne to $4.50 per tonne for processing pears.

The changes are expected to result in an additional $550,000 being directed toward marketing and promotion activities undertaken by the AHC on behalf of the apple and pear industry.

The Regulations also correct an anomaly in the Regulations by amending the definition of a box. The capacity of a standard box, in the definition, will increase from 30 litres to 36 litres. The AAPGA has requested this change because the standard bushel box used by the industry is in fact 36 litres not 30 litres. As a result of the proposed change some apple and pear growers, particularly in Western Australia, will pay a slightly lower total levy. While it is not necessary under the Levy and Export Charge Acts for the AHC and HRDC to support this request both have indicated their support.

The Regulations commenced on 1 April 1997.


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