Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES (AVOCADO) REGULATIONS (AMENDMENT) 1992NO. 116

STATUTORY RULES 1992 No. 116

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

Primary Industries Levies and Charges Collection Act 1991

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987

Primary Industries Levies and Charges (Avocado) Regulations (Amendment)

The Australian Horticultural Corporation (AHC) was established in 1988 to provide market research and promotion activities for horticultural industries. Industries may pay for AHC services by way of fee for service arrangements or statutory levy.

Subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act), subsection 14(1) of the Horticultural Levy Act 1987 (the Levy Act), and subsection 14(1) of the Horticultural Export Charge Act 1987 (the Export Charge Act) provide that the Governor-General may make regulations for the purposes of these Acts.

Section 6 of the Levy Act provides for a levy to be imposed on leviable horticultural products produced in Australia and sold by the producer or used in the production of other goods. Section 6 of the Export Charge Act provides for an export charge to be imposed on chargeable horticultural products produced in Australia that are exported.

The proposed Regulations prescribe avocados as leviable and chargeable horticultural products for the purpose of providing an industry contribution to the AHC. Funds raised by the levies and charges would be directed to the AHC to support industry promotion. The funds raised will provide the means for the avocado industry to participate directly in the AHC through section 8 of each of the Levy and Export Charge Acts.

Section 8 of the Levy Act and Section 8 of the Export Charge Act provide that regulations may fix the rate of levy and export charge destined for the AHC for a class of leviable and chargeable products. The proposed Regulations set a levy and export charge rate of 15 cents per standard tray, or $25.00 per tonne of avocados.

Subsection 14(7) of the Levy Act and subsection 14(7) of the Export Charge Act require the AHC to consult with the eligible industry body for a leviable and chargeable horticultural product before making a recommendation to the Minister. The recommendation to the Minister must be accompanied by a written statement of the views of the industry body with which the AHC consulted. This ensures that the industry fully supports a levy and export charge prior to its implementation. The AHC must also consult with an eligible industry body on the rate of levy to be implemented and any exemptions which should apply. The Australian Avocado Growers Federation is the eligible industry body for the purposes of the proposed Regulations. The Federation's recommendation is at Attachment A.

Subsections 14(4) and 14(5) of the Levy and Export Charge Acts provide that, before making regulations to fix a rate of levy and export charge, or to exempt subclasses of horticultural product or classes of producers from levy or export charge, the Governor-General must take into consideration any relevant recommendation made to the Minister by the AHC. The proposed Regulations, AHC recommendation and industry view are consistent. The AHC recommendation is at Attachment B.

It should be noted that since a standard tray is defined as 6 kilograms for unpacked fruit, the recommendations by the Federation and the AHC for a levy and export charge rate of 15 cents per standard tray are equivalent to a bulk rate of $25 per tonne.

The existing Regulations also provide for the manner of payment of charge, the provision of returns by producers and intermediaries and the keeping of records.

Details of the proposed Regulations for avocados are given at Attachment C.

ATTACHMENT C

DETAILS OF THE PRIMARY INDUSTRIES LEVIES AND CHARGES (AVOCADO) REGULATIONS (AMENDMENT)

Regulation 1 sets a commencement date of 1 June 1992.

Regulation 2 is a formal provision.

Regulation 3 amends the previous Regulation 10 by replacing it with Regulations 10 and 10A. The new Regulation 10 prescribes that the rate of levy to be applied to avocados for the purposes of Section 8 of the Levy Act will be 15 cents per standard tray or $25.00 per tonne. Funds raised by the levy are directed to the AHC. Regulation 10A prescribes that the rate of levy to be applied to avocados will be 3 cents per standard tray or $5.00 per tonne. Funds raised by the levy are directed to the Horticultural Research and Development Corporation (HRDC). The provisions of Regulation 10A are exactly the same as those of the previous Regulation 10.

Regulation 4 amends the previous Regulation_11 by replacing it with Regulations 11 and 11A. The new Regulation 11 prescribes that the rate of export charge to be applied to avocados for the purposes of Section 8 of the Export Charge Act will be 15 cents per standard tray or $25.00 per tonne. Funds raised by the export charge are directed to the AHC. Regulation 11A prescribes that the rate of export charge to be applied to avocados will be 3 cents per standard tray or $5.00 per tonne. Funds raised by the export charge are directed to the HRDC. The provisions of Regulation 11A are exactly the same as those of the previous Regulation 11.

Regulation 5 corrects a drafting error in the previous Regulation 24 which referred to the non-existent Regulation 26 instead of the correct reference to Regulation 23.

Regulation 6 corrects a drafting error in the previous Regulation 25 which referred to the non-existent Paragraph 23(3)(a) instead of the correct reference to Paragraph 20(3)(a).