Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (VEGETABLE) REGULATIONS(AMENDMENT) 1997 NO. 18

STATUTORY RULES 1997 NO. 18

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 Collection (Vegetable) Regulations (Amendment)

The Horticultural Levy Act 1987 (the Levy Act), the Horticultural Export Charge Act 1987 (the Export Charge Act) and the Primary Industries Levies and Charges Collection Act 1991 (the Collection 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).

Subsection 14(1) of the Levy Act, subsection 14(1) of the Export Charge Act, and subsection 30(1) of the Collection Act empower the Governor-General to make regulations for the purposes of these Acts.

Subsection 5A(1) of the Levy Act and subsection 5A(1) of the Export Charge Act permit the Regulations to prescribe products for which a rate of levy and export charge can be applied.

Section 9 of the Levy Act and section 9 of the Export Charge Act permit the rate of levy and export charge, respectively, destined for the HRDC to be fixed by regulation.

Subsection 14(4) of the Levy Act and subsection 14(4) of the Export Charge Act require that before making regulations relating to section 9 of the Levy Act and section 9 of the Export Charge Act, respectively, the Governor-General shall take into account any relevant recommendation made to the Minister by the HRDC-1.

Subsection 14(7) of the Levy Act and subsection 14(7) of the Export Charge Act require that before making a recommendation to the Minister, the HRDC shall consult with the eligible industry body, for the leviable horticultural product, which in the case of vegetables is the Australian Vegetable and Potato Growers Federation - Vegetable Group (AUSVEG) -2-.

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

The Parliamentary Secretary to the Minister for Primary Industries and Energy, Senator the Hon David Brownhill, reviewed the consultation process which the vegetable industry undertook prior to the introduction of the vegetable levy on 1 March 1996. Senator Brownhill recommended the levy on herbs be removed due to the inadequate consultation with that industry. Persons who have paid a levy on herbs since 1 March 1996 will be offered a full refund of the amount paid. AUSVEG agreed with the recommendation and wrote to the HRDC on 22 August 1996 requesting the removal of herbs from the levy. The HRDC susbsequently wrote to the Minister for Primary Industries and Energy, the Hon John Anderson NT, on 18 September 1996 supporting the recommendation from the vegetable industry. Copies of the letters are at Attachment B.

The need to amend the Regulations for herbs also provided the opportunity to amend the definition of "vegetables" in the Regulations. The existing Regulations define vegetables as those products listed in the schedule to the regulations, which specifically identifies the botanical and common names of herbs and vegetables.

This approach has created difficulties for market agents and retailers who are obliged to collect the levy. As new vegetables are introduced on the market, further amendments will need to be made to the Regulations to add them to the Schedule (particularly relevant in the Asian vegetable market). Also, many Asian vegetables are known by three or more common names each in the industry (depending on the ethnic origin of the grower) and many of these alternative names are not listed.

The Regulations amend the approach taken to define vegetables from an "inclusive arrangement to an "exclusive" arrangement whereby vegetables not intended to be levied under these Regulations are specified.

Subsections 5.1, 6.1, 6.1 and 6.3 to remove herbs from the list of leviable products under the Regulations are proposed to commence on 1 March 1996. Growers who have paid levy on herbs since 1 March 1996 will be offered a full reimbursement of the amount paid. As the retrospective commencement of these subsections will confer a benefit to levy payers and no liabilities will be imposed, subsection 48(2) of the Acts Interpretation Act 1901 will not be contravened. The remaining Regulations are to commence on the date of gazettal.

Details of the Regulations are given at Attachment A.

ATTACHMENT A

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

Regulation 1 gives the date of commencement of Regulations 5.1, 6.1, 6.2 and 6.3 as 1 March 1996. The remaining Regulations are to commence on the date of gazettal.

Regulation 2 defines the Regulations to be amended as the Primary Industries Levies and Charges Collection (Vegetable) Regulations.

Regulation 3 removes the definition of "vegetable".

Regulation 4 specifies the products to which the vegetable levy does not apply.

Regulation 5 amends Regulation 21 by amending the full name of the eligible industry body to the "Australian Vegetable and Potato Growers' Federation (Inc.) - Vegetable Group"

Regulation 6 amends the Schedule to remove herbs from the list of leviable products and then to omit the remainder of the Schedule.

HORTICULTURAL RESEARCH & DEVELOPMENT CORPORATION

The Research Arm of the Australian Horticultural Industries

18 September, 1996

The Hon John Anderson MP

Minister for Primary Industries and Energy

Parliament House

CANBERRA ACT 2600

Dear Minister

The Horticultural Research and Development Corporation has received a request from the designated peak industry body under the Primary Industries Levies and Charges Collection (Vegetable) Regulations, the Australian Vegetable and Potato Growers' Federation (AUSVEG). that all culinary herbs currently listed in the Schedule to the Regulations, except parsley, and shallots, be exempted from the levy.

It is intended that the levy and export charge should continue to apply to all vegetables with the exception of tomatoes, potatoes, melons, asparagus, (hard) onions and garlic. The rates of levy and export charge should remain at the existing level.

Consequently, and pursuant to sections 14(4) of each of the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987, the Corporation recommends that the levy and export charges be amended in line with industry wishes.

1 would be grateful if you would arrange for the necessary amendments to the Regulations as soon as possible to reflect this decision of the vegetable industry . A copy of advice on this matter from AUSVEG is attached.

Yours sincerely

Dr Chris Rigney

Executive Director

cc. Senator the Hon David Brownhill

Australian Vegetable & Potato Growers Federation

22 August 1996

Dr Chris Rigney

Executive Director

Horticultural Research & Development Corporation

7 Merriwa Street

GORDON NSW 2072

Dear Dr Rigney

Re: Exemption of Culinary Herbs from Research & Development Levy

Following representations from herb industry organisations in Victoria and New South Wales and giving consideration to other anomalies that have been brought to our attention regarding the growing and sale of culinary herbs in pots, it is the considered opinion of this organisation, that culinary herbs, with the exception of parsley and shallots, should be exempted from the Vegetable Research and Development Levy.

This proposal was also endorsed by Senator David Brownhill in his recent review of the levy arrangements. Ausveg agreed with the senators findings in this matter.

Consequently, Ausveg requests that the HRDC take the necessary steps to have culinary herbs, with the exception of parsley and shallots, exempted from the Vegetable Research & Development Levy and that the government be requested to amend the regulations accordingly.

Yours sincerely

Brian Newman

Executive Director

RMB 5307, McCombe Road, Strathbogie, Vic. 3600 Australia

Telephone: 61 (057)905 247