EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO. 116
BOUNTY (PENICILLIN) REGULATIONS (AMENDMENT)
Issued by the Authority of the Minister of State for Industry and Commerce.
The purpose of the accompanying regulations is to amend the Bounty (Penicillin) Regulations to prescribe factors by which the rates of bounty specified in sub-section 7(1) of the Act are to be multiplied to effect an increase in those rates.
Section 7 of the Bounty (Penicillin) Act 1980 sets out the rates of bounty which are payable in respect of bountiable penicillin G and bountiable penicillin V and further provides that the regulations may prescribe factors by which those rates are to be multiplied.
The prescription of these factors to effect an increase in the rates of bounty stems from the Government’s consideration of the recommendations contained in the Industries Assistance Commission’s Report “Pharmaceutical and Veterinary Products”. Following that report it was decided that the penicillin bounty rates would be reviewed annually in the light of cost increases in Australia, movements in overseas penicillin prices and the assessed level of domestic usage.
The factors prescribed for the period 1 June 1981 to 31 May 1982 have been determined following consultation between the Ministers for Industry and Commerce, Health and Finance and are 1.138 for penicillin G and 1.184 for penicillin V.
The previous bounty rates of $29 per kilogram for penicillin G and $38 per kilogram for penicillin V have been increased to $33 and $45 respectively when multiplied by the prescribed factors.
Although the regulations are deemed to come into operation retrospectively on 1 June 1981, they are not prejudicial to parties other than the Commonwealth and therefore do not. contravene section 48 of the Acts Interpretation Act 1901.
Overview
The Bounty (Penicillin) Regulations (Amendment) Statutory Rules 1982 No. 116 were enacted to address the need for regular adjustments to the bounty rates for penicillin G and penicillin V, as recommended by the Industries Assistance Commission’s Report “Pharmaceutical and Veterinary Products”. This piece of legislation was introduced to ensure that the bounty rates could be reviewed and increased annually in response to changes in domestic costs, international penicillin prices, and domestic usage levels. Issued under the authority of the Minister of State for Industry and Commerce, the policy objective is to maintain a fair and competitive bounty system that supports the pharmaceutical industry in Australia. The regulations, which came into effect retrospectively from 1 June 1981, establish specific factors for multiplying the original bounty rates, resulting in an increase to $33 per kilogram for penicillin G and $45 per kilogram for penicillin V, without contravening section 48 of the Acts Interpretation Act 1901.
Scope and Application
The Bounty (Penicillin) Regulations (Amendment) aim to modify the Bounty (Penicillin) Regulations by prescribing factors to increase the rates of bounty payable for bountiable penicillin G and penicillin V. This adjustment aligns with the provisions of the Bounty (Penicillin) Act 1980, which allows the regulations to specify the factors for multiplying the bounty rates set out in section 7(1) of the Act. The regulatory changes are based on the government's evaluation of the Industries Assistance Commission's Report on "Pharmaceutical and Veterinary Products" and are intended to reflect annual cost increases in Australia, changes in overseas penicillin prices, and the domestic usage levels. The prescribed factors, 1.138 for penicillin G and 1.184 for penicillin V, have been determined through consultation between the relevant ministers and will increase the previous bounty rates of $29 and $38 per kilogram to $33 and $45 respectively. These regulations, which are effective from 1 June 1981, do not adversely affect any party other than the Commonwealth and thus comply with section 48 of the Acts Interpretation Act 1901.
Key Provisions
The Bounty (Penicillin) Regulations (Amendment) Statutory Rules 1982 No. 116, issued under the authority of the Minister of State for Industry and Commerce, primarily focus on amending the Bounty (Penicillin) Regulations to increase the rates of bounty payable for bountiable penicillin G and penicillin V (section 7). This amendment is achieved by prescribing specific factors that the existing bounty rates must be multiplied by. These factors, determined through consultation between the Ministers for Industry and Commerce, Health, and Finance, are set at 1.138 for penicillin G and 1.184 for penicillin V for the period from 1 June 1981 to 31 May 1982. As a result, the previous bounty rates of $29 per kilogram for penicillin G and $38 per kilogram for penicillin V are increased to $33 and $45 respectively.
The regulations impose certain obligations on parties involved in the production and supply of penicillin within Australia. These obligations include adhering to the newly prescribed factors for calculating bounty rates, which are based on factors such as cost increases in Australia, movements in overseas penicillin prices, and the assessed level of domestic usage. The obligation to comply with these factors is a direct consequence of the legislative framework established by the Bounty (Penicillin) Act 1980, which mandates that the rates of bounty be periodically reviewed and adjusted.
Failure to comply with the regulations, particularly the prescribed factors for calculating bounty rates, could lead to various consequences. However, the explanatory statement does not explicitly detail specific offences, penalties, or civil/criminal consequences for non-compliance. It is important to note, though, that any breach of statutory obligations under the Bounty (Penicillin) Act 1980 or its regulations could potentially lead to legal action, including fines or other penalties as prescribed by relevant laws. The precise nature and extent of these consequences would depend on the specific circumstances and any additional legislative provisions that might apply.