EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 347
Issued by the Authority of the Minister for Primary Industry
DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS (AMENDMENT)
To support the domestic price structure for dairy products the present compulsory dairy marketing arrangements involve a levy/disbursement system for prescribed dairy products. These arrangements are legislated for in the Dairy Industry Stabilization Act 1977 and the Dairy Industry Stabilization Levy Act 1977 (the Act). Paragraph 6(3)(c) of the Act provides for the levy to be refunded where manufacturers sell prescribed dairy products on the export market.
Amendments to the Act contained in section 4 of the Dairy Industry Stabilization Levy Amendment Act 1983 provide for levy to be refunded, under certain circumstances, on the leviable dairy product content of other products which are exported (e.g. stock feed mixes which are a mixture of tallow and milk powder). Before qualifying for a refund, however, a product must contain a minimum percentage of leviable dairy products and must form part of a consignment of a minimum weight. These limitations were included in the legislation in recognition of the fact that administrative costs might outweigh the benefits if refunds had to be provided on numerous small consignments.
“Minimum weight” is defined as 15 tonnes or such lesser weight as is prescribed. There is no proposal at present to vary this requirement. “Minimum percentage” is defined as such percentage (not exceeding 75 per cent) as is prescribed and these regulations strike a rate for the purposes of this definition.
Paragraph 11(2)(b) of the Act provides that any regulations being made under section 6 of the Act (the section into which the refund provision is being inserted) must be made taking into account any recommendations made to the Minister by the Australian Dairy Corporation after consultation with the Australian Dairy Industry Advisory Committee. The Australian Dairy Corporation has recommended that the “minimum percentage” be set at 25 per cent and the regulations reflect this recommendation.