EXPLANATORY STATEMENT
Statutory Rules 1986 No. 115
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 Fifth 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 1985 to 31 May 1986 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 1985.
Regulation 2
amends regulation 2A to substitute a new factor of 1.655172 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 $48 per kilogram from $44 per kilogram.
Regulation 3
amends regulation 2B to substitute a new factor of 1.763158 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 $67 per kilogram from $62 per kilogram.
Regulation 4
amends regulation 2D to substitute a new factor of 1.441538 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 $937,000 from $867,000.
The current factor in regulation 2C of 1.12 does not require amendment. The limit of boutny payable for penicillin 6 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 1985, they are not prejudicial to parties other than the Commonwealth and therefore do not contravene section 4 of the Acts Interpretation Act 1901.
The Bounty (Penicillin) Act 1980, having been extended by Ministerial notice in Special Gazette S12 of 18 January 1985, is to expire on 31 May 1986.
Overview
The Bounty (Penicillin) Regulations 1986 were enacted to amend the Bounty (Penicillin) Act 1980, with the aim of adjusting the bounty rates and limits payable for penicillin G and penicillin V. These regulations were issued by the Minister of State for Industry, Technology and Commerce, reflecting the collaborative efforts of the Ministers for Industry, Technology and Commerce, Health and Finance. The primary objective of these regulations was to account for fluctuations in international penicillin prices, production cost increases in Australia, and the assessed level of domestic usage, as recommended by the Departments of Industry, Technology and Commerce and Health in consultation with the Department of Finance. The changes proposed in these regulations were determined retrospectively for the period from 1 June 1985 to 31 May 1986, ensuring that the bounty rates and limits were reflective of the economic conditions during that period.
Scope and Application
The Bounty (Penicillin) Act 1980, which is subject to Commonwealth regulation, applies specifically to the determination and payment of bounties for certain types of penicillin, namely penicillin G and penicillin V. This Act, extended by Ministerial notice, sets out the rate and limit of bounty payable for these antibiotics, with the regulations detailing adjustments based on economic factors such as overseas prices and domestic production costs. The Act applies to entities involved in the production of these penicillins within Australia and is administered by the Ministers for Industry, Technology and Commerce, Health, and Finance. While the Act primarily concerns the economic aspects of penicillin production, its scope is limited to the period between 1 June 1985 and 31 May 1986, as indicated by the retrospective application of the amending regulations and the Act's expiration date. Notably, the Act does not prejudice any parties other than the Commonwealth, aligning with the stipulations of the Acts Interpretation Act 1901.
Key Provisions
The Bounty (Penicillin) Regulations 1986 (C2004L04051) detail new provisions to alter the rate and limit the amount of bounty payable on penicillin G and penicillin V, as outlined in the Bounty (Penicillin) Act 1980. Regulation 2 amends the existing factor in regulation 2A, substituting it with a new factor of 1.655172. This factor, when applied to the rate stipulated in sub-section 7(1) of the Act, increases the bounty payable for penicillin G from $44 to $48 per kilogram. Similarly, Regulation 3 modifies the factor in regulation 2B to 1.763158, resulting in the bounty payable for penicillin V rising from $62 to $67 per kilogram. Regulation 4 adjusts the factor in regulation 2D to 1.441538, raising the limit of bounty payable for penicillin V from $867,000 to $937,000. The limit for penicillin G, governed by regulation 2C, remains unchanged at a factor of 1.12, with the bounty limit set at $280,000, as Commonwealth Serum Laboratories are not currently producing any bounty-eligible penicillin G.
These regulations impose specific obligations on entities involved in the production and distribution of penicillin G and V. Manufacturers and producers must comply with the updated rates and limits for bounty payments as per the new factors introduced by the regulations. The changes require them to accurately calculate the bounty based on the new rates for their production and to ensure that their claims do not exceed the new limits. This obligation extends to ensuring all relevant documentation and records are updated to reflect the new factors and rates. The regulations also require that the updated bounty calculations be reported to the relevant authorities, ensuring transparency and compliance with the Act.
Failure to adhere to the provisions outlined in the Bounty (Penicillin) Regulations 1986 can lead to various civil and criminal consequences. While the explanatory statement does not explicitly detail the penalties for non-compliance, it is reasonable to infer that breaches could result in fines or other legal actions under the relevant sections of the Bounty (Penicillin) Act 1980. Given that the regulations aim to adjust bounty rates and limits, non-compliance could potentially undermine the integrity of the bounty system, leading to significant repercussions for the involved parties. The specifics of any penalties would depend on the severity and intent of the breach, as well as any additional provisions outlined in the main Act.