Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES (NATIONAL RESIDUE SURVEY LEVIES) AMENDMENT REGULATIONS 2004 (NO. 1) 2004 NO. 139

Section 8 of the National Residue Survey (Excise) Levy Act 1998 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The National Residue Survey (NRS) implements chemical residue monitoring programmes and recovers the costs of the programmes from participating industries. These programmes form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination.

Statutory levies are the preferred mechanism by which primary industries choose to meet the cost of compulsory residue-monitoring programmes required for access to international and domestic markets. These levies are collected at the same time, and in the same manner, as other statutory levies such as marketing, research and development (R&D) and Animal Health Council levies in order to reduce collection costs for industries.

Clause 2 of Schedule 5 to the Act imposes NRS excise levy on the processing of game animals, while clause 3 of Schedule 5 sets the rate of levy for game pigs at 12 cents per carcase, or such other rate (not exceeding 40 cents per carcase) as may be prescribed by regulation. Clause 2 of Schedule 14 to the Act imposes NRS excise levy on the slaughter of ratites (emu and ostrich) for human consumption, while clause 3 of Schedule 14 sets the rate of levy at 75 cents per head, or such other rate (not exceeding $5 per head) as may be prescribed by regulation.

The NRS excise levy rate on game pigs has not been altered by regulation. The emu industry currently pays an NRS excise levy rate of $1.25 per head on the slaughter of emu for human consumption.

The purpose of the Regulations is to increase the rate of NRS excise levy on the processing of game pigs from 12 cents per carcase to 25 cents per carcase and to increase the rate of NRS excise levy on the slaughter of emu from $1.25 per head to $2.00 per head.

There is no R&D levy, Marketing levy or Animal Health Council levy imposed on the processing of game pigs or the slaughter of emu.

The Act does not specify conditions that need to be met before the power to make the proposed regulations may be exercised.

The Australian Game Meat Producers Association (AGMPA) is the peak industry body for the game pig industry. AGMPA has in place an NRS Testing Programme that underwrites market access requirements into export markets. Cost recovery for this program is by a statutory levy that has been in place since 1 July 1993.

Funds available for AGMPA to finance its NRS residue-monitoring programme have decreased in recent times because of the impact of the drought and decreased overseas demand for game pigs. Throughput numbers have slipped to 135,000 in 2003-2004, and are only expected to reach 150,000 in 2004-2005. The average throughput over the previous three years has been 199,449. AGMPA members agreed to the increase in the game pig excise levy after internal consultation of its five member organisations.

The drought, Newcastle Disease, Avian Influenza and the value of the Australian dollar are all currently impacting heavily on the emu industry. Throughput for the industry is expected to drop to around 3,900 slaughter birds in 2003-2004, from an average of around 7,700. The industry is only expecting a throughput of around 5,000 slaughter birds in 2004-2005.

Emu industry members agreed to the increase in the NRS excise levy at the Emu Industry Federation of Australia's annual general meeting held in Adelaide on 24 April 2004.

Details of the Regulations are in the Attachment.

The Regulations will commence on 1 July 2004.

0405666A-040520A

ATTACHMENT

DETAILS OF THE PROPOSED PRIMARY INDUSTRIES LEVIES AND CHARGES (NATIONAL RESIDUE SURVEY LEVIES) AMENDMENT REGULATIONS 2004 (No. 1)

Regulation 1 gives the name of the Regulations as the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2004 (No. 1).

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 (National Residue Survey Levies) Regulations 1998.

SCHEDULE 1        Amendments

Item 1 Omits the reference to game pigs, including the current rate of 12 cents per carcase, from the table under the Note to regulation 61. The item inserts a new subregulation 61 (1), setting an amount of levy of 25 cents per pig carcase for the purposes of subclause 3 (1) of Schedule 5 to the National Residue Survey (Excise) Levy Act 1998. The existing regulation 61, which sets the rate of levy for processing kangaroo, is re-made as new subregulation 61 (2).

Item 2 Omits the current rate of $1.25 per head on the slaughter of emu from existing regulation 229 and inserts an amount of levy of $2.00 per head on the slaughter of emu for the purposes of subclause 3 (1) of Schedule 14 to the National Residue Survey (Excise) Levy Act 1998.