Apple and Pear Stabilization Regulations (Amendment)

Overview

The Apple and Pear Stabilization Act 1971, enacted by the Parliament of Australia, was designed to address the economic instability faced by apple and pear growers due to fluctuating export returns. The Act established a stabilization scheme to provide financial support to these growers when export returns fell below predetermined support prices. The scheme aimed to ensure a stable income for apple and pear growers by offering payments when average export returns dropped below these support prices, which were set each season based on industry cash costs of production. The Act was subsequently amended through statutory regulations, such as those issued in 1983, to reflect changes in cash costs and maintain the scheme's effectiveness. These amendments were made under the authority of the relevant Minister, in this case, the Minister of State for Primary Industry. The overarching policy objective of the Act was to protect the apple and pear industry from the adverse effects of market volatility, thereby supporting the livelihoods of growers and the broader agricultural economy.

Scope and Application

The Apple and Pear Stabilization Act 1971 applies to entities involved in the export of apples and pears, ensuring that producers receive a stable return on their produce by providing financial support when average export returns fall below established support prices. The Act governs the operations of the stabilization scheme, which was initially in effect from 1971 to 1980 and subsequently extended for four seasons until the end of the 1984 season. However, the scheme for pears was terminated at the end of the 1980 season. The Act applies nationally across Australia and is administered through regulations that prescribe support prices each season, reflecting changes in the cash costs of production. The scheme’s scope is further defined by the Apple and Pear Stabilization Regulations, which are amended to reflect the latest seasonal support prices. These regulations also determine the conditions under which stabilization payments are made, ensuring that the industry remains viable and that producers are adequately compensated for fluctuations in export returns.

Key Provisions

The Apple and Pear Stabilization Act 1971 (the Act) lays out the framework for a stabilization scheme aimed at supporting apple and pear exporters. The Act’s main operative sections, particularly section 7(2), mandate that support prices for any season beyond the initial 1971 season must be prescribed through regulation under the Act. These support prices are crucial as they determine whether a stabilization payment is warranted based on the relationship between the average export returns for various apple varieties and these established prices. Under the Act, the obligations imposed on the parties involved include the requirement for the Bureau of Agricultural Economics to calculate these support prices each season, taking into account the cash costs of production from the preceding season. This calculation is to be performed in consultation with the Australian Apple and Pear Corporation. This collaboration ensures that the support prices are reflective of the actual economic conditions faced by the industry. In addition to these operational requirements, the Act outlines the consequences for any breaches or non-compliance. While specific offences and penalties are not detailed within the provided text, it is common for such legislation to include provisions for penalties, both civil and criminal, to enforce compliance. These penalties could range from fines to more severe repercussions depending on the severity and intent behind the breach. It is important for those governed by the Act to adhere to the prescribed support prices and reporting requirements to avoid any adverse legal consequences.