EXPLANATORY STATEMENT
Australian Meat and Live-stock Industry Act 1997
Declaration of MLA Donor Company Limited as Approved Donor
The Australian Meat and Live-stock Industry Act 1997 (the Industry Act) and the Australian Meat and Live-stock Industry (Repeals and Consequential Provisions) Act 1997 (the Consequentials Act) and related Acts gave effect to the Government’s decision of 18 March 1997 to reform the structures in the red meat industry.
These Acts provide for the replacement of three statutory bodies providing services in the areas of marketing and promotion, and research and development with a producer owned service delivery company. This company has been established under Corporations Law as a company limited by guarantee and will be partly funded by statutory levies imposed on beef, sheep and goat producers. Processors and live exporters will make their contributions to the producer service delivery company through their own companies established under Corporations Law as companies limited by guarantee. These Acts and related Acts received Royal Assent on 17 December 1997 and commenced by proclamation on 1 July 1998.
Sub-section 61(1) of the Industry Act provides that the Minister may, in writing, declare a body (other than the research body) to be an approved donor. In making this declaration, the Minister must be satisfied that the body is a company limited by guarantee incorporated under the Corporations Law and that having regard to its membership, its memorandum and articles of association and any other undertakings or agreements it has entered into with other industry representatives or the Minister (or both), the body can appropriately represent the industry’s research and development interests. The body must also consent to the declaration.
The purpose of this instrument is to declare MLA Donor Company Limited (MLA Donor) to be an approved donor from 1 July 1998. This will allow MLA Donor, a wholly owned subsidiary of the producer service delivery company, to act as a conduit for independent funding of approved industry research and development activities eligible for R&D matching of expenditure. MLA Donor has consented to this declaration.
Overview
The Australian Meat and Livestock Industry Act 1997 was enacted to reform the structures in the red meat industry, replacing three statutory bodies with a producer-owned service delivery company. This reform aimed to enhance efficiency and representation within the industry by establishing a company limited by guarantee, funded partly by statutory levies and contributions from beef, sheep, and goat producers, as well as processors and live exporters. The Act allows the Minister to declare a body as an approved donor if it meets certain criteria, including being a company limited by guarantee and capable of representing the industry's research and development interests. The explanatory statement for this Act clarifies that MLA Donor Company Limited (MLA Donor), a wholly owned subsidiary of the producer service delivery company, has been declared an approved donor to facilitate independent funding of approved industry research and development activities, with MLA Donor consenting to this declaration.
Scope and Application
The Australian Meat and Livestock Industry Act 1997 and related legislation, including the Australian Meat and Livestock Industry (Repeals and Consequential Provisions) Act 1997, pertain to the restructuring of the red meat industry in Australia. These Acts establish a producer-owned service delivery company, partially funded by statutory levies on beef, sheep, and goat producers, while processors and live exporters contribute through their own companies. This Act specifically declares MLA Donor Company Limited as an approved donor, enabling it to channel independent funding for approved industry research and development activities, subject to the Minister's satisfaction regarding its capacity to represent the industry's research interests and the company's consent to the declaration. The declaration took effect from 1 July 1998, as per the provisions of the Act, thereby formalising the role of MLA Donor in the industry's funding structure.
Key Provisions
The Australian Meat and Livestock Industry Act 1997 (Industry Act) outlines the legislative framework for the red meat industry reform in Australia, establishing a producer-owned service delivery company to manage marketing, promotion, and research and development. Section 61(1) of the Industry Act empowers the Minister to declare a body as an approved donor, provided certain conditions are met. Specifically, the body must be a company limited by guarantee incorporated under the Corporations Law, capable of representing the industry’s research and development interests, and must consent to the declaration. This mechanism ensures that the declared body can facilitate independent funding for approved industry research and development activities, which are eligible for Research and Development (R&D) matching of expenditure.
Under this Act, the MLA Donor Company Limited (MLA Donor) is declared as an approved donor, effective from 1 July 1998. This designation allows MLA Donor, a wholly owned subsidiary of the producer service delivery company, to act as a conduit for funding approved industry research and development activities. The declaration is made in writing by the Minister and requires MLA Donor’s consent, ensuring that the body can appropriately represent the industry's interests and is fully committed to its role. The declaration is intended to streamline the funding process and ensure that industry research and development initiatives are appropriately supported.
The obligations imposed by the Industry Act on the MLA Donor and other entities include the need to adhere to the requirements set out in the Corporations Law, which governs their incorporation and operation. MLA Donor must ensure that it meets the criteria for being an approved donor, including maintaining the necessary membership, memorandum and articles of association, and any agreements with industry representatives or the Minister. Furthermore, the Act mandates that MLA Donor must consent to the declaration and must be capable of representing the industry’s research and development interests, ensuring that it can effectively manage the funding of approved activities.
Breach of the obligations set out in the Industry Act can result in significant consequences. While the explanatory statement does not detail specific offences or penalties, it is reasonable to infer that failure to comply with the conditions for being an approved donor could lead to administrative or legal action. Given the context of the Industry Act and related legislative frameworks, penalties for non-compliance might include fines, legal sanctions, or the revocation of the approved donor status, which could severely impact the entity's ability to operate within the industry. The exact penalties would likely be detailed in other sections of the Act or related regulations.