EXPLANATORY STATEMENT
Statutory Rules 1985 No. 154
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 Fourth 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 1984 to 1 June 1985 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 1984.
Regulation 2
amends regulation 2A to substitute a new factor of 1.517241 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 $44 per kilogram from $43 per kilogram.
Regulation 3
amends regulation 2B to substitute a new factor of 1.631579 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 $62 per kilogram from $60 per kilogram.
Regulation 4
amends regulation 2D to sustitute a new factor of 1.333846 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 $867,000 from $840,000.
The current factor in regulation 2C of 1.12 does not require amendment. The limit of bounty payable for penicillin G 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 1984. they are not prejudicial to parties other than the Commonwealth and therefore do not contravene section 4 of the Acts Interpretation Act 1901.