Dairy Industry Stabilization Levy Regulations (Amendment)

EXPLANATORY STATEMENT

STATUTORY RULES 1982 No. 330

Issued by the Authority of the Minister of State for Transport and Construction for and on behalf of the Minister for Primary Industry

DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS (AMENDMENT)

The Dairy Industry Stabilization Levy Act 1977, which forms an integral part of the marketing arrangements for the dairy industry, provides for levies to be imposed on the production of prescribed dairy products.

Section 11 of the Act provides that the Governor-General may make regulations, inter alia, for the purpose of:-

(a) prescribing a date from which levy is to be imposed with respect to each kind of dairy product under sub-section 6(1) and 6(2);

(b) fixing the operative rates of levy for each kind of dairy product under section 7.

Sub-section 11(3), however, requires the Governor-General to take into consideration any relevant recommendations made by the Australian Dairy Corporation, as provided for in sub-section 11(2).

The purpose of the levies is to protect the domestic price structure for prescribed dairy products and through their disbursement to provide each manufacturer with an equalised return from their domestic and export sales of such products.

The rate of levy for each prescribed product is based on the difference between the domestic bulk wholesale price and the assessed average export price for that product.

In accordance with sub-section 11(2) of the Dairy Industry Stabilization Levy Act 1977, the Australian Dairy Corporation, after consultation with the Australian Dairy Industry Advisory Committee, has made a recommendation for increases in levy rates.

The purpose of the proposed regulations is to impose from 1 December 1982, the following rates of levy:-

The rates of levy for processed butteroil and processed cheese are not varied from the current rate of $10 per tonne.

The rates of levy recommended provide for an increase in the domestic bulk wholesale price of $115 per tonne for butter; $110 per tonne for cheese; $90 per tonne for wholemilk powder; $55 per tonne for skimmilk powder, modified skimmilk powder, buttermilk powder and mixtures; $142 per tonne for butteroil; and $140 per tonne for casein.

In considering the rates of levy for prescribed dairy products, the Australian Dairy Corporation undertook a review of the current domestic bulk wholesale prices for the respective products. The Corporation’s recommendations were based on a consideration of costs of production, industry returns and market signals.