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.
Overview
The Bounty (Penicillin) Regulations (Amendment) Statutory Rules 1982 No. 73, issued under the authority of the Minister of State for Industry and Commerce, were enacted to address the need for an annual review and adjustment of penicillin bounty rates and limits as recommended by the Industries Assistance Commission. The primary objective of these regulations is to reflect local cost movements and changing world prices, ensuring that the bounty rates and limits remain aligned with economic realities. This amendment was in response to the previous government's consideration of the Industries Assistance Commission’s Report “Pharmaceutical and Veterinary Products”, which suggested an annual review of the bounty rates and limits. The new bounty rates and limits, effective from 1 June 1982, were determined after consultations between the relevant Ministers, aiming to accurately reflect the Consumer Price Index and international price data.
Scope and Application
The Bounty (Penicillin) Regulations (Amendment) Statutory Rules 1982 No. 73 apply to the rates of bounty specified in section 7 and the amounts available for payment of bounty specified in section 8 of the Bounty (Penicillin) Act 1980. These regulations are applicable to entities within the pharmaceutical industry involved in the production of penicillin, specifically penicillin G and penicillin V, and are intended to effect an increase in the bounty rates and limits. This legislative amendment was prompted by the recommendations from the Industries Assistance Commission's Report "Pharmaceutical and Veterinary Products," which suggested an annual review of the bounty rates to align with local cost movements and changing world prices. The regulations are effective from 1 June 1982, and the bounty rates for penicillin G and penicillin V are increased to $40 and $55 per kilogram respectively, while the amounts available for payment of bounty for penicillin G and penicillin V are increased to $280,000 and $770,000 respectively. These changes reflect the new factors determined by the Ministers for Industry and Commerce, Health, and Finance, and do not prejudice any parties other than the Commonwealth.
Key Provisions
The Bounty (Penicillin) Regulations (Amendment) (SR 1982 No. 73) primarily concerns the adjustment of bounty rates and limits for penicillin G and penicillin V as per sections 7 and 8 of the Bounty (Penicillin) Act 1980. These regulations prescribe specific factors by which the existing bounty rates and available amounts for bounty payments are to be multiplied, thereby increasing them. Section 7(1) of the Act, as amended by these regulations, sets the new bounty rates, with penicillin G's bounty rate increasing to $40 per kilogram and penicillin V's to $55 per kilogram, following the multiplication by the specified factors of 1.379310 and 1.447368, respectively. Similarly, section 8(1) adjusts the amounts available for bounty payments, with penicillin G's available amount rising to $280,000 and penicillin V's to $770,000, after applying the new factors of 1.120000 and 1.184615.
The Bounty (Penicillin) Regulations (Amendment) impose several obligations on the relevant parties, particularly those involved in the production and supply of penicillin. These regulations necessitate the multiplication of the existing bounty rates and available amounts by the prescribed factors to determine the new bounty rates and limits. This process ensures that the bounty payments reflect the most recent local cost movements and changing world prices, as recommended by the Industries Assistance Commission’s Report “Pharmaceutical and Veterinary Products.” Additionally, the regulations require compliance with the specified factors from the effective date of 1 June 1982, which was determined through consultation between the Ministers for Industry and Commerce, Health, and Finance.
Under the Bounty (Penicillin) Regulations (Amendment), there are no explicit offences or penalties for non-compliance stated within the document. However, failure to adhere to the prescribed factors and subsequently calculate the new bounty rates and limits accurately could lead to potential administrative or legal consequences. The regulations are clear that they do not prejudice any party other than the Commonwealth, thereby not contravening section 48 of the Acts Interpretation Act 1901. This implies that while there may not be direct penalties outlined, the importance of compliance is underscored by the regulatory framework and its reliance on accurate calculations to ensure fair bounty payments.