EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 246
Issued by the Authority of the Minister for Resources
BARLEY RESEARCH LEVY ACT 1980
BARLEY RESEARCH LEVY REGULATIONS (AMENDMENT)
Section 5 of the Barley Research Levy Act 1980 (the Act) imposes a levy on barley delivered by the grower to another person other than for storage on behalf of the grower.
Section 6 of the Act provides that the rate of levy shall not exceed 75 cents per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 9(3) of the Act provides that before making regulations for the purposes of section 6 the Governor-General shall take into consideration any relevant recommendation made
to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 September 1988 is 45 cents per tonne.
The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 7 cents to 52 cents per tonne commencing for the 1989-90 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.26% to 0.3% of the industry’s estimated GVP for 1989-90.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that barley levy money be paid into the Barley Research Trust Fund and subsection 9(2) of the Research Act provides that the Barley Research Committee in each mainland State may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the barley industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Barley Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1989-90 is $1.6 million. Increased funding to meet estimated Commonwealth matching obligations in 1989-90 resulting from the proposed increased levy is provided for in the 1989-90 Budget.
The proposed Barley Research Levy Regulations (Amendment) to increase the rate of levy to 52 cents per tonne is to apply from 1 October 1989.