EXPLANATORY STATEMENT
Statutory Rules 1986 No. 115
Issued by the Authority of the Minister of State for
Industry, Technology and Commerce
Section 7 of the Bounty (Penicillin) Act 1980 (the Act) provides the rate of bounty payable on penicillin G and penicillin V.
Section 8 of the Act provides for a limit on the amount of bounty payable on penicillin G and penicillin V.
The purpose of the regulations is to prescribe new factors to alter the rate, and limit the amount of bounty payable on penicillin.
The prescription of these factors stems from consideration by the Ministers for Industry, Technology and Commerce, Health and Finance of the report of the Fifth Annual Review of the penicillin bounty prepared by the Departments of Industry, Technology and Commerce and Health in consultation with the Department of Finance. That report covered the period 1 June 1985 to 31 May 1986 and, in line with established practice, determined the new factors retrospectively in the light of movements in overseas penicillin prices, production cost increases in Australia and the assessed level of domestic usage.
Details of the regulations are as follows:
Regulation 1
provides for the amending regulations to come into operation retrospectively from 1 June 1985.
Regulation 2
amends regulation 2A to substitute a new factor of 1.655172 which, when multiplied by the rate in sub-section 7(1) of the Act provides for an increase in the rate of bounty payable for penicillin G to $48 per kilogram from $44 per kilogram.
Regulation 3
amends regulation 2B to substitute a new factor of 1.763158 which, when multiplied by the rate in sub-section 7(1) of the Act provides for an increase in the rate of bounty payable for penicillin V to $67 per kilogram from $62 per kilogram.
Regulation 4
amends regulation 2D to substitute a new factor of 1.441538 which, when multiplied by the limit in sub-section 8(1) of the Act provides for an increase in the limit of bounty payable for penicillin V to $937,000 from $867,000.
The current factor in regulation 2C of 1.12 does not require amendment. The limit of boutny payable for penicillin 6 is to remain at $280,000 as Commonwealth Serum Laboratories are currently not producing any bountiable penicillin G.
Although the regulations are deemed to come into operation retrospectively on 1 June 1985, they are not prejudicial to parties other than the Commonwealth and therefore do not contravene section 4 of the Acts Interpretation Act 1901.
The Bounty (Penicillin) Act 1980, having been extended by Ministerial notice in Special Gazette S12 of 18 January 1985, is to expire on 31 May 1986.