Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (BUFFALO, CATTLE AND LIVE-STOCK) AMENDMENT REGULATIONS 1999 (NO. 3) 1999 NO. 327

Statutory Rules 1999 No. 327

Subject:       Primary Industries Levies and Charges Collection (Buffalo, Cattle and Live-stock) Amendment Regulations 1999 (No. 3)

Section 8 of the "Primary Industries (Excise) Levies Act 1999" (the Excise Levies Act) provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Excise Levies Act. Section 8 Schedule 3 of the Primary Industries (Excise) Levies Act provides the basis for the collection of industry levies for the purposes of research and development, marketing, promotion or other purposes.

The regulation will alter the allocation of levy funds between research and development and marketing.

Through the application of a grain fed transaction levy, the Australian Lot Feeders' Association (ALFA) contributes to work undertaken by Meat and Livestock Australia in marketing and research and development.

In conjunction with Meat and Livestock Australia and the Cattle Council of Australia, ALFA has finalised a Corporate Plan and Budgets and a Business Plan for the three-year period commencing 1999/2000 incorporating programs and projects that strongly reflect the industry' strategic priorities. The development of these plans involved considerable consultation and negotiation with levy payers. The Business Plan was approved at the ALFA annual general meeting in September 1999.

ALFA, the industry peak body, has now recommended that the allocation of levy funds between marketing and research and development be altered to reflect this decision.

Currently the regulations provide for an amount of $1.66 to be allocated to marketing and $1.22 to research and development. It is proposed that these amounts be changed to $1.95 and $0.93 respectively. The total levy collected of for research and development and marketing will not be altered by this change.

The proposed Regulation will commence on 1 January 2000.