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.
Overview
The Bounty (Penicillin) Regulations 1985 were enacted to amend the Bounty (Penicillin) Act 1980, addressing the need to adjust the bounty rates and limits for penicillin G and penicillin V in response to fluctuations in international prices and production costs in Australia. These regulations were issued under the authority of the Minister of State for Industry, Technology and Commerce. The policy objective was to ensure the bounty rates and limits remained fair and reflective of current economic conditions, maintaining the viability of domestic production while considering the broader economic context. This was achieved by incorporating new factors derived from a comprehensive review by the Departments of Industry, Technology and Commerce, and Health, in consultation with the Department of Finance, which assessed domestic usage and international market movements. The regulations aim to provide an equitable bounty system that supports the penicillin production sector without unduly burdening the Commonwealth.
Scope and Application
The Bounty (Penicillin) Regulations 2004 apply to the bounty rates and limits set out in the Bounty (Penicillin) Act 1980, specifically for the substances penicillin G and penicillin V. These regulations are applicable to entities involved in the production and sale of these substances within Australia, with a particular focus on the Commonwealth Serum Laboratories. The regulations adjust the bounty rates and limits based on various factors such as international price movements, domestic production costs, and usage levels, as recommended in a review report prepared by relevant departments. These regulations have a Commonwealth jurisdiction and extend their application to transactions occurring from 1 June 1984, although they do not affect parties other than the Commonwealth, thereby adhering to the provisions of the Acts Interpretation Act 1901. The regulations are implemented through subordinate instruments that alter specific rates and limits as outlined in the Act, ensuring alignment with economic and production conditions.
Key Provisions
The Bounty (Penicillin) Act 1980, as amended by the Statutory Rules 1985 No. 154, provides for the payment of a bounty on certain quantities of penicillin. Section 7 of the Act specifies the rate of bounty payable on penicillin G and penicillin V, while Section 8 sets out the limits on the amount of bounty that can be paid. These rates and limits are subject to adjustment through the regulations made under the Act. Specifically, Regulation 2 amends regulation 2A to adjust the factor for calculating the bounty rate on penicillin G, leading to an increase in the rate from $43 to $44 per kilogram. Similarly, Regulation 3 modifies regulation 2B to change the factor for penicillin V, resulting in an increase from $60 to $62 per kilogram. Regulation 4 adjusts regulation 2D to increase the limit on the bounty payable for penicillin V from $840,000 to $867,000. Meanwhile, the limit on the bounty for penicillin G, as outlined in regulation 2C, remains unchanged at $280,000.
Under the Bounty (Penicillin) Act 1980, as amended, manufacturers of penicillin G and V are entitled to receive a bounty from the Commonwealth. This bounty is calculated based on the rates specified in Section 7 of the Act, adjusted by the factors provided in the regulations. The limits set forth in Section 8 ensure that the total bounty paid does not exceed the prescribed amounts. The regulations provide the mechanism for adjusting these rates and limits in response to economic factors, such as changes in overseas prices and domestic production costs. These adjustments are made in consultation with relevant departments and are designed to reflect the economic realities faced by manufacturers.
Failure to comply with the provisions of the Bounty (Penicillin) Act 1980 and the regulations made under it could result in various consequences. While the Act itself does not explicitly outline penalties for non-compliance, the regulations are designed to ensure that the bounty is paid accurately and fairly. Any party found to be in breach of the regulations could face administrative or legal action, depending on the severity of the breach. The penalties could include fines, restitution, or other remedies as determined by the relevant authorities. It is essential for parties governed by the Act to adhere to the regulations to avoid any potential legal repercussions.
The Bounty (Penicillin) Act 1985 No. 154 aims to provide a transparent and fair system for the payment of bounties on penicillin G and V. By setting specific rates and limits and allowing for adjustments through regulations, the Act ensures that manufacturers receive appropriate compensation for their production efforts. The regulations, which come into effect retrospectively from 1 June 1984, are designed to reflect economic changes and maintain the integrity of the bounty system. While the Act does not detail specific penalties for non-compliance, adherence to the regulations is crucial to avoid any potential legal or administrative consequences.