EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Agriculture, Fisheries and Forestry
Australian Meat and Live-stock Industry Act 1997
Australian Meat and Live-stock Industry (Meat Processor Marketing and Research Bodies) Declaration 2007
Statutory Basis
Subsections 60 (3AA) and (3AB) of the Australian Meat and Live-stock Industry Act 1997 provide that the Minister may, by legislative instrument, declare a body to be the meat processor marketing body and the meat processor research body.
Purpose of the Declaration
The purpose of the Australian Meat and Live-stock Industry (Meat Processor Marketing Body and Meat Processor Research Body) Declaration 2007 is to declare Australian Meat Processor Corporation Limited to be the meat processor marketing body and the meat processor research body from 1 September 2007.
Background to the Declaration
Since the 1998 red meat industry restructure, the meat processor industry has funded it marketing and research and development programmes through voluntary contributions. In December 2006 the industry decided to move away from the voluntary system and requested the Government impose a statutory levy on the slaughter of cattle, sheep and goats. The industry also requested that Australian Meat Processor Corporation Limited be declared the body to receive the funding generated by the statutory levy.
To effect this change, amendments were required to the Australian Meat and Live-stock Industry Act 1997 to allow entities to be declared the meat processor marketing body and the meat processor research body. These amendments received Royal Assent on 22 June 2007.
The Declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Declaration commences on 1 September 2007.
Overview
The Australian Meat and Livestock Industry (Meat Processor Marketing and Research Bodies) Declaration 2007 was enacted to address the need for a statutory framework to support marketing and research initiatives in the meat processing sector. This legislative instrument, issued under the authority of the Minister for Agriculture, Fisheries and Forestry, is founded on the provisions of the Australian Meat and Livestock Industry Act 1997. The Act was amended to permit the declaration of entities as the meat processor marketing body and the meat processor research body, thereby facilitating the transition from a voluntary contribution system to a statutory levy system on the slaughter of cattle, sheep, and goats. The policy objective behind this change was to ensure that the Australian Meat Processor Corporation Limited would be the designated body to receive funding generated by the statutory levy, effective from 1 September 2007. This move aimed to provide a more stable and consistent financial basis for marketing and research activities within the meat processing industry.
Scope and Application
The Australian Meat and Live-stock Industry (Meat Processor Marketing and Research Bodies) Declaration 2007 applies to the Australian Meat Processor Corporation Limited, which is designated as the meat processor marketing body and the meat processor research body. This designation follows amendments to the Australian Meat and Livestock Industry Act 1997 that enable the declaration of such bodies. The legislation is applicable nationally, extending its reach across the Commonwealth of Australia. The Declaration provides for a statutory levy on the slaughter of cattle, sheep, and goats to fund marketing and research activities, replacing the previous voluntary contribution system. This change was prompted by industry requests to formalise funding mechanisms through government intervention. The Declaration is effective from 1 September 2007, and its provisions are subject to the legislative framework established by the Legislative Instruments Act 2003.
Key Provisions
The Australian Meat and Livestock Industry (Meat Processor Marketing and Research Bodies) Declaration 2007, pursuant to subsections 60(3AA) and (3AB) of the Australian Meat and Livestock Industry Act 1997, designates the Australian Meat Processor Corporation Limited as the meat processor marketing body and the meat processor research body, effective from 1 September 2007. This declaration marks a significant shift in how marketing and research activities are funded within the meat processing industry. Previously, these activities were funded through voluntary contributions from the industry, a system which was abandoned in favour of a statutory levy on the slaughter of cattle, sheep, and goats. This change was driven by a request from the industry to the government, who subsequently enacted amendments to the Australian Meat and Livestock Industry Act 1997 to facilitate the creation of a statutory funding mechanism.
The declaration imposes specific obligations on the Australian Meat Processor Corporation Limited. As the designated meat processor marketing body, the Corporation is tasked with promoting the Australian meat industry both domestically and internationally. This includes the development and execution of marketing strategies, as well as the management of funds collected through the statutory levy. As the meat processor research body, the Corporation is responsible for overseeing research and development activities aimed at improving the efficiency, quality, and sustainability of meat processing practices. This involves the allocation of resources to research projects, the establishment of research priorities, and the dissemination of research findings to industry stakeholders.
Failure to comply with the obligations outlined in the Declaration may result in legal consequences. While the Declaration itself does not specify particular offences or penalties, breaches of the Australian Meat and Livestock Industry Act 1997, which governs the overall operation of the meat industry, can lead to significant penalties. Under the Act, individuals and corporations can face substantial fines. For example, section 61 of the Act imposes penalties for non-compliance with marketing and research obligations, with fines potentially reaching up to $22,000 for individuals and $110,000 for corporations. Additionally, persistent non-compliance could result in criminal charges, further compounding the legal repercussions for the Australian Meat Processor Corporation Limited or any other entities involved.