Primary Industries and Energy Research and Development Amendment Act 1991 (Cth)

Primary Industries and Energy Research and Development Amendment Act 1991

No. 109 of 1991

An Act to amend the Primary Industries and Energy Research and Development Act 1989 to make provision in relation to the R & D Corporation in respect of the wool industry, and for other purposes

[Assented to 27 June 1991]

The Parliament of Australia enacts:

Short title etc.

1. This Act may be cited as the Primary Industries and Energy Research and Development Amendment Act 1991.

(2) In this Act, “Principal Act” means the Primary Industries and Energy Research and Development Act 19891.

Commencement

2. This Act commences on 1 July 1991.

Definitions

3. Section 4 of the Principal Act is amended:

(a) by omitting from subsection (1) the definitions of “eligible levy payer” and “nominated director” and substituting the following definitions:

“ ‘eligible levy payer’ means:

1. (a)

   in relation to the R & D Corporation in respect of the wool industry—a person (within the meaning of section 57) who is included in a register of wool-tax payers that is taken to have been prepared by the Corporation under subsection 57 (1a); or

1. •

•

(b)

in relation to any other R & D Corporation—a person (within the meaning of section 57) who is included in a list of levy payers prepared by the Corporation under subsection 57 (1);

‘nominated director’ means a director of an R & D Corporation, other than:

1. (a)

   a Chairperson, government director or Executive Director of the Corporation; and

1. •

•

(b)

in the case of the R & D Corporation in respect of the wool industry—the member of the Australian Wool Corporation;

(b) by inserting in subsection (1) the following definitions:

“ ‘Australian Wool Corporation’ means the Australian Wool Corporation established under the Australian Wool Corporation Act 1991;

‘Executive Director’ means:

1. (a)

   in relation to an R & D Corporation other than the R & D Corporation in respect of the wool industry—the Executive Director appointed under Division 9 of Part 2; or

1. •

•

(b)

in relation to the R & D Corporation in respect of the wool industry—the Managing Director appointed under that Division;

‘Wool Tax Act’ means the Wool Tax Act (No. 1) 1964, the Wool Tax Act (No. 2) 1964, the Wool Tax Act (No. 3) 1964, the Wool Tax Act (No. 4) 1964 or the Wool Tax Act (No. 5) 1964;”;

(c) by adding at the end the following subsection:

“(4) For the purposes of this Act, the sale value of any shorn wool is the amount that, under section 10 of the Administration

Act, is the sale value of that wool for the purposes of that Act.”.

Constitution

4. Section 16 of the Principal Act is amended:

1. •

(a)

by inserting in subsection (1) “other than the R & D Corporation in respect of the wool industry” after “Corporation” (first occurring);

1. (b)

   by inserting after subsection (1) the following subsection:

   “(1a) The R & D Corporation in respect of the wool industry consists of:

   1. (a)

      a Chairperson; and

   2. (b)

      a government director; and

   3. (c)

      the Managing Director of the Corporation; and

1. •

1. (d)

   the managing director, or any other member (other than the Chairperson), of the Australian Wool Corporation; and

1. •
2. •
3. (e)

   5 other directors.”.

Appointment of directors

5. Section 17 of the Principal Act is amended by omitting subsection (4) and substituting the following subsections:

“(4) In spite of subsection (3), the 5 persons who are first appointed as nominated directors of the R & D Corporation in respect of the wool industry will not be persons nominated by a Selection Committee under Part 4 but, in appointing them, the Minister may consult with such persons as the Minister thinks fit.

“(4a) In appointing persons to be directors of the R & D Corporation in respect of the wool industry, the Minister must ensure that 2 directors have substantial experience in wool growing.”.

Payments to R & D Corporations—general

6.

Section 30 of the Principal Act is amended by inserting in subsection (4) “(other than the R & D Corporation in respect of the wool industry)” after “Corporation”.

7.

Before section 31 of the Principal Act the following section is inserted:

Payments to R & D Corporation established in respect of the wool industry

“30b. (1) Where all the tax imposed by the Wool Tax Acts in a financial year on particular shorn wool (other than carpet wool) has been received by the Commonwealth, there is payable to the R & D

Corporation in respect of the wool industry an amount equal to such percentage of the sale value of that shorn wool as is applicable having regard to:

1. (a)

   if paragraph (b) does not apply—the percentage of the sale value of shorn wool (other than carpet wool) subject to tax specified in the recommendation made by the last annual general meeting of the Corporation in respect of that financial year; or

1. •

(b)

if the Minister has notified the Corporation under section 89a that, instead of the percentage of the sale value of shorn wool (other than carpet wool) subject to tax recommended by the annual general meeting, another percentage of that sale value was used in computing the rates of tax applicable in respect of shorn wool (other than carpet wool) under the Wool Tax Acts in respect of that financial year—that other percentage.

“(2) Where all the tax imposed by the Wool Tax Acts in a financial year on particular carpet wool has been received by the Commonwealth, there is payable to the R & D Corporation in respect of the wool industry an amount equal to such percentage of the sale value of that carpet wool as is applicable having regard to:

1. (a)

   if paragraph (b) does not apply—the percentage of the sale value of carpet wool subject to tax specified in the recommendation made by the last annual general meeting of the Corporation in respect of that financial year; or

1. •

(b)

if the Minister has notified the Corporation under section 89a that, instead of the percentage of the sale value of carpet wool subject to tax recommended by the annual general meeting, another percentage of that sale value was used in computing the rates of tax applicable in respect of carpet wool under the Wool Tax Acts in respect of that financial year—that other percentage.

“(3) In spite of subsections (1) and (2), where all the tax imposed by the Wool Tax Acts in the financial year commencing on 1 July 1991:

1. (a)

   on particular shorn wool (other than carpet wool); or

2. (b)

   on particular carpet wool;

has been received by the Commonwealth, there is payable to the R & D Corporation in respect of the wool industry an amount equal to such percentage of the sale value of that shorn wool (other than carpet wool) or of that carpet wool (as the case may be) as is applicable under the regulations.

“(4) There are also payable to the R & D Corporation in respect of the wool industry amounts equal to half of the amounts required to be spent by the Corporation under section 33 (other than paragraph 33 (1) (d)).

“(5) Amounts payable under this section are to be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.”.

8. Section 56 of the Principal Act is repealed and the following section is substituted:

Application of Division

“56. (1) This Division applies to the R & D Corporation in respect of the wool industry.

“(2) This Division applies also to an R & D Corporation other than the R & D Corporation in respect of the wool industry if:

1. (a)

   a levy is attached to the Corporation; and

1. •
   1. (b)

      the regulations declare that this Division applies to the Corporation.”.

List of levy payers etc.

9. Section 57 of the Principal Act is amended:

1. •

(a)

by inserting in subsection (1) “other than the R & D Corporation in respect of the wool industry” after “Corporation” (first occurring);

1. (b)

   by inserting after subsection (1) the following subsection:

1. •“(1a) The register of wool-tax payers prepared by the Australian Wool Corporation under section 40 of the Australian Wool Corporation Act 1991 for the purposes of general meetings to be held under Part 6 of that Act in a financial year is taken to be, for the purposes of this Division, a register of wool-tax payers prepared in respect of that financial year by the R & D Corporation in respect of the wool industry.”.

R & D Corporation to convene annual general meetings

10. Section 58 of the Principal Act is amended:

1. •

(a)

by inserting in subsection (1) “other than the R & D Corporation in respect of the wool industry” after “Corporation” (first occurring);

1. (b)

   by inserting after subsection (1) the following subsection:

1. •“(1a) The R & D Corporation in respect of the wool industry must cause an annual general meeting to be held in each financial year at a time and place determined by the Corporation.”.

Purpose of annual general meeting

11. Section 60 of the Principal Act is amended:

(a) by inserting in paragraph (d) “subject to subsection (2)” before “to debate”;

(b) by adding at the end the following subsections:

“(2) The motions that may be debated and voted upon at a annual general meeting of the R & D Corporation in respect of the wool industry are the following:

1. (a)

   any motion relating to a matter within the Corporation’s responsibilities;

•

(b)

any motion relating to a recommendation referred to in subsection (3) that is to be made to the Minister in relation to the rates of tax to be prescribed for the purposes of each of the Wool Tax Acts;

•

•

(c)

any motion of no confidence in the Chairperson or in the Corporation.

“(3) For the purposes of paragraph (2) (b), the recommendations are:

(a) a recommendation that:

(i) an amount equal to a specified percentage of the sale value of shorn wool (other than carpet wool) subject to tax be paid by the Commonwealth to the Corporation during the next financial year for research and the other purposes of the Corporation; and

(ii) accordingly, a specified rate of tax (expressed as a percentage of the sale value of shorn wool (other than carpet wool) subject to tax and being the percentage recommended under subparagraph (i)) be taken into account in computing the rate of tax that is to be prescribed in respect of shorn wool (other than carpet wool) for the purpose of the application of each of the Wool Tax Acts in respect of the next financial year; and

(b) a recommendation that:

(i) an amount equal to a specified percentage of the sale value of carpet wool subject to tax be paid by the Commonwealth to the Corporation during the next financial year for research and the other purposes of the Corporation; and

(ii) accordingly, a specified rate of tax (expressed as a percentage of the sale value of carpet wool subject to tax and being the percentage recommended under subparagraph (i)) be taken into account in computing the rate of tax that is to be prescribed in respect of carpet wool for the purpose of the application of each of the Wool Tax Acts in respect of the next financial year.”.

Notification of motions passed

12. Section 64 of the Principal Act is amended by adding at the end the following subsection:

“(2) The R & D Corporation in respect of the wool industry must also, within the same period, give to the Minister a copy of any motion of the kind referred to in paragraph 60 (2) (b) passed at the annual general meeting.”.

Heading to Division 9 of Part 2

13.

The heading to Division 9 of Part 2 is amended by adding at the end “and Managing Director”.

14.

Section 75 of the Principal Act is repealed and the following section is substituted:

Executive Director etc.

“75. (1) Each R & D Corporation other than the R & D Corporation in respect of the wool industry is to have an Executive Director.

“(2) The R & D Corporation in respect of the wool industry is to have a Managing Director.”.

Employees

15. Section 87 of the Principal Act is amended by adding at the end the following subsections:

“(4) If the R & D Corporation in respect of the wool industry is established on 1 July 1991, a transferred employee:

1. (a)

   may not be employed by that Corporation on terms and conditions less favourable than those applying to the person immediately before being so employed; and

1. •

•

(b)

is entitled to retain all benefits that, immediately before the person became so employed, had accrued to him or her in connection with his or her employment under the Wool Marketing Act 1987 and any subsequent employment, as if those benefits were benefits relating to the employment of the person by the R & D Corporation.

“(5) In subsection (4):

‘Commission’ means the body corporate that:

1. (a)

   existed under the Wool Marketing Act 1987 with the name Australian Wool Corporation; and

1. •

(b)

is continued in existence under the Australian Wool Realisation Commission Act 1991 with the name Australian Wool Realisation Commission;

‘transferred employee’ means a person who:

(a) is employed by the R & D Corporation in respect of the wool industry; and

1. (b)

   was immediately before 1 July 1991 a person employed under section 37 of the Wool Marketing Act 1987; and

1. •

(c)

has been, at all times on and after that day and before becoming employed or last becoming employed (as the case may be) by the R & D Corporation, an employee of the Commission, of the R & D Corporation or of the Australian Wool Corporation.”.

16. After section 89 of the Principal Act the following section is inserted:

Minister to notify R & D Corporation in respect of wool industry about variation in rate of tax recommended by general meeting

“89A. (1) In this section:

‘relevant rate of tax’ means the rate of tax prescribed in respect of shorn wool (other than carpet wool) or carpet wool for the purposes of the application of each of the Wool Tax Acts in respect of a financial year.

“(2) Where a percentage of the sale value of:

1. (a)

   shorn wool (other than carpet wool) subject to tax; or

2. (b)

   carpet wool subject to tax;

other than the percentage specified in a recommendation made by an annual general meeting of the R & D Corporation in respect of the wool industry in relation to the prescription of a relevant rate of tax, was used in computing the relevant rate of tax, the Minister must give written notice of that fact to the Corporation, specifying the percentage that was so used.”.

17. After section 147 of the Principal Act the following section is inserted:

Establishment of R & D Corporation in respect of wool industry—transitional provisions etc.

“147a. If the R & D Corporation in respect of the wool industry is established on 1 July 1991, the regulations may make such transitional and consequential provisions as are necessary because of:

1. (a)

   the repeal of the Wool Marketing Act 1987; and

1. •

1. (b)

   the enactment of the Australian Wool Realisation Commission Act 1991; and

1. •
2. (c)

   the establishment of the Corporation.”.

Further amendments

18. The Principal Act is further amended by omitting subsections 66 (3), 77 (5) and 78 (2).

NOTE

1. No. 17, 1990, as amended. For further amendments, see No. 134, 1990 and Nos. 26 and 31, 1991.

[Minister’s second reading speech made in—

House of Representatives on 31 May 1991 a.m.

Senate on 5 June 1991