EXPLANATORY STATEMENT
STATUTORY RULES 1982 No. 73
BOUNTY (PENICILLIN) REGULATIONS (AMENDMENT)
Issued by the Authority of the Minister of State for Industry and Commerce.
The purpose of the regulations is to amend the Bounty (Penicillin) Regulations to prescribe factors by which
(i) the rates of bounty specified in section 7 of the Bounty (Penicillin) Act 1980; and
(ii) the amounts available for payment of bounty specified in section 8 of that Act;
are to be mutiplied to effect an increase in those rates.
The prescription of these factors to effect an increase in the rates and limits of bounty stems from the previous 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 and limits would be reviewed annually.
The second annual review report was prepared by the Departments of Industry and Commerce and Health and agreed to by the Department of Finance and the former Department of Administrative Services (which at that time was responsible for the Industries Assistance Commission). That report recommended that the bounty rates be adjusted to reflect local cost movements as reflected by the Consumer Price Index and changing world prices on the basis of price data supplied by the industry. The local cost movements and changing world prices are reflected in the new bounty rates and bounty limits.
The factors to be effective from 1 June 1982 have been determined following consultation between the Ministers for Industry and Commerce, Health and Finance.
The new factors for bounty rates are 1.379310 for penicillin G and 1.447368 for penicillin V.
The existing bounty rates for penicillin G and penicillin V will therefore be increased to $40 per kilogram and $55 per kilogram respectively when multiplied by the prescribed factors.
The new factors for amounts available for payment of bounty for penicillin G are 1.120000 and for penicillin V are 1.184615.
The existing amounts available for payment of bounty for penicillin G and for penicillin V will therefore be increased to $280,000 and $770,000 respectively when multiplied by the prescribed factors.
Although the proposed Regulations are deemed to come into operation retrospectively on 1 June 1982, they are not prejudicial to parties other than the Commonwealth and therefore do not contravene section 48 of the Acts Interpretation Act 1901.