EXPLANATORY STATEMENT
STATUTORY RULES 1982 No. 48
Issued by the Authority 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 Minister has approved the levy rates recommended by the Australian Dairy Corporation.
The purpose of the proposed regulations is to impose from 1 March 1982 the following rates of levy:-
| Rate |
| $ per tonne |
Buttermilk powder | 235 |
Cheese | 600 |
Modified skimmilk powder | 235 |
Skimmilk and buttermilk powder mixture | 235 |
Skimmilk powder | 235 |
Whole milk powder | 495 |
The rates of levy for butter, butteroil, processed butteroil, processed cheese and casein are not varied.
The rates of levy recommended provide for an increase in the domestic bulk wholesale prices of $110 per tonne for cheese; $75 per tonne for whole milk powder; and $35 per tonne for skimmilk powder, buttermilk powder, modified skimmilk powder and skimmilk and buttermilk powder mixture.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) was enacted in 1982 by the Minister for Primary Industry, pursuant to the authority granted by the Dairy Industry Stabilization Levy Act 1977. This piece of legislation was introduced to address the need for adjustments to the rates of levies imposed on various dairy products to better stabilise and protect the domestic price structure for these products. The amendments aim to achieve an equalised return for manufacturers from their domestic and export sales. The policy objective of these regulations is to ensure that the domestic dairy industry remains competitive and viable by adjusting the levy rates in response to market conditions and recommendations from the Australian Dairy Corporation.
The amendments set forth new levy rates for specific dairy products effective from 1 March 1982, reflecting the recommendations made by the Australian Dairy Corporation. The new rates are designed to increase the domestic bulk wholesale prices for certain products such as cheese, whole milk powder, and skimmilk powder. These changes are intended to better align the domestic market prices with the export prices, thereby maintaining a fair and stable pricing structure within the industry.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) concern the operation of the Dairy Industry Stabilization Levy Act 1977, which is integral to the marketing arrangements for the dairy industry in Australia. These regulations apply to entities involved in the production of prescribed dairy products, including but not limited to dairy farmers, processors, and manufacturers. The regulations are intended to impose and adjust the rates of levy on these products to stabilise domestic prices and ensure an equitable return for manufacturers from both domestic and export sales. The rates of levy are determined by the difference between the domestic bulk wholesale price and the assessed average export price of the dairy products. The regulations are made under the authority of the Minister for Primary Industry and are effective from 1 March 1982. The rates of levy are based on recommendations from the Australian Dairy Corporation, which must consult with the Australian Dairy Industry Advisory Committee before making such recommendations. The Governor-General must consider these recommendations before approving the levy rates, as stipulated in section 11 of the Act. The specified rates for the amended levies are set out in the regulations and affect products such as buttermilk powder, cheese, and milk powders, among others.
Key Provisions
The Dairy Industry Stabilization Levy Regulations (Amendment) provide specific rates for the levy imposed on certain dairy products, as authorised by Section 11 of the Dairy Industry Stabilization Levy Act 1977. These regulations specify new rates effective from 1 March 1982. For example, buttermilk powder is subject to a levy of $235 per tonne, cheese $600 per tonne, modified skimmilk powder $235 per tonne, skimmilk and buttermilk powder mixture $235 per tonne, and skimmilk powder $235 per tonne. Whole milk powder is subject to a levy of $495 per tonne. It is noteworthy that the levy rates for butter, butteroil, processed butteroil, processed cheese, and casein remain unchanged under these regulations.
The Dairy Industry Stabilization Levy Act 1977 and its accompanying regulations impose specific obligations on the parties involved in the production and sale of prescribed dairy products. These obligations include adhering to the prescribed levy rates and ensuring that the levies are paid in a timely manner. The Australian Dairy Corporation plays a pivotal role in recommending levy rates, which must be approved by the Minister. Additionally, producers and manufacturers must comply with the stipulated rates, which are based on the difference between domestic and export prices, to maintain the domestic price structure and ensure equitable returns from both domestic and export sales.
Failure to comply with the requirements of the Dairy Industry Stabilization Levy Regulations can result in significant legal consequences. Although the explanatory statement does not explicitly detail the specific offences or penalties for non-compliance, it is reasonable to infer that breaches of the regulations could lead to enforcement actions by regulatory authorities. Potential penalties might include fines or other sanctions that could be imposed under the broader legislative framework governing the dairy industry. The exact penalties would be aligned with those stipulated in the primary Act or other relevant legislation.
The regulations underscore the importance of maintaining a stable and fair pricing structure within the dairy industry. By imposing and adjusting levy rates, the Australian government aims to support both domestic and export markets, ensuring that manufacturers receive fair compensation. The interplay between the Australian Dairy Corporation, the Minister, and the industry stakeholders highlights a coordinated approach to regulating the dairy market, with the ultimate goal of supporting the industry's economic stability and growth.