EXPLANATORY STATEMENT
DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY
Australian Meat and Live-stock Industry
(Sheepmeat and Goatmeat Export to the European Union – Quota Year 2011)
Amendment Order 2011
Statutory Basis
Under the Australian Meat and Live-stock Industry Act 1997 and the Australian Meat and Live-stock (Quotas) Act 1990 the Secretary of the Australian Government Department of Agriculture, Fisheries and Forestry (the department) may, where restrictions are imposed on exports of Australian meat, establish a scheme to allocate quota among holders of export licences.
This order is made under section 17 of the Australian Meat and Live-stock Industry Act 1997.
Background to Order
The department administers the quota system to provide a fair and orderly operating environment for Australian exporters of sheepmeat and goatmeat to the EU. The current administrative arrangements were put in place following consultation with the sheepmeat and goatmeat industries.
Australia’s country-specific sheepmeat and goatmeat quota amount to the EU is 18 786 tonnes a year. An order provides for the management and administration of this quota. Each year the order is re-issued to re-align the administrative dates for the next quota year. However, in November 2011 the Council of the European Union General Secretariat notified that the agreement with Australia to increase the sheepmeat and goat quota by 400 tonnes will take effect on 1 December 2011.
The 400 tonne increase is as a result of the accession of Bulgaria and Romania to the EU in 2007. Because the 2011 quota was fully allocated in 2010, this amendment allows for that extra 400 tonnes to be allocated for the remainder of 2011. The amendment is based on the EU regulation No.1234/2011 giving administrative effect to the increase to apply from 1 December 2011. For 2012 the additional tonnage will be managed under the Australian Meat and Live-stock Industry (Sheepmeat and Goatmeat Export to the European Union – Quota Year 2012) Order 2011 as part of the normal quota arrangements.
Consultation
In anticipation of receiving the additional tonnage, the industry’s peak representative body, the Australian Meat Industry Council (AMIC), held discussions with its members on how the additional tonnage should be allocated. As a result, AMIC requested that preference be given to those exporters who were active in the Bulgarian and Romanian markets during the period that the EU used to determine the additional amount. Further, if the preferred exporters were no longer operating or did not require the additional tonnage, the allocation should be distributed on a pro rata basis to the remaining preferred exporters. After that, any unwanted or unused quota should be made available to other exporters on a first-come-first-served basis.
The regulatory impact analysis conducted in line with Office of Best Practice Regulation guidelines indicates the changes would have a low or no impact on businesses (OBPR ID 13264).
Explanation of Amendments
The amendment reflects industry agreed allocation requirements, in that it:
a) Identifies the additional tonnage (referred to as the additional access amount) as separate to the normal annual quota amount.
b) Identifies who is eligible for the quota.
c) Describes how to apply for the quota and how the allocation amount will be calculated.
d) Makes provision for the charge of the prescribed fee.
e) Provides for the management of lapsed approvals and unwanted or unused quota.