EXPLANATORY STATEMENT
STATUTORY RULES 1984 No. 124
Issued by the Authority of the Minister of State for Primary Industry
DAIRY INDUSTRY STABILIZATION LEVY REGULATIONS (AMENDMENT)
The Dairy Industry Stabilization Levy Act 1977, which forms an integral part of the present marketing/stabilization 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) fixing the operative rates of levy for each kind of dairy product under section 7; and
(b) exempting from levy a minimum quantity of a specified kind of dairy product produced in a prescribed period.
Sub-section 11(3) of the Act requires the Governor-General, before making any such regulations, to take into consideration any relevant recommendations made by the Australian Dairy Corporation to the Minister for Primary Industry.
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 domestic and export sales of such products.
The rate of levy for each prescribed product is based on the difference between the domestic value for levy purposes and the assessed export price for that product. The assessed export price is fixed by the Minister for Primary Industry under sub-section 20AB(4) of the Dairy Produce Act 1924 and is the price that the Minister considers will be the average export price for the prescribed product during a particular season.
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, recommended to the Minister for Primary Industry levy rates to apply from 1 July 1984 which would have resulted in an increase in domestic values for levy purposes.
The Minister for Primary Industry, determined, however, that the domestic values for levy purposes should be maintained at their current levels from 1 July 1984. In making his decision on this matter, the Minister noted that an increase in domestic values for levy purposes would have been out of step with the realities of domestic and international dairy markets and would have given producers the wrong market signals.
Given that stabilization levies are equal to the difference between the domestic value for levy purposes (which will be unchanged as of 1 July 1984) and the assessed export price, the levy rates will need to change since the assessed export prices for prescribed dairy products during 1984/85 are lower than in 1983/84. In this regard, the Regulations provide for the following rates of stabilization levy to apply from 1 July 1984:
| Rate ($ per tonne) |
Butter | 1170 |
Buttermilk powder | 474 |
Butteroil | 1444 |
Casein | 1100 |
Cheese | 958 |
Modified skimmilk powder | 474 |
Processed butteroil | 10 |
Processed cheese | 10 |
Skimmilk and buttermilk powder mixture | 474 |
Skimmilk powder | 474 |
Whole milk powder | 710 |
The Regulations also provide for the continuation of the current exemption from levy under sub-sections 9(1) and (2) of processed butteroil, where production does not exceed 30,000 tonnes, and of processed cheese, where production does not exceed 60,000 tonnes, during the year commencing on 1 July 1984. The exemption ensures that levy is not paid twice on processed butteroil and processed cheese produced from butter and cheese respectively.
Overview
The Dairy Industry Stabilization Levy Regulations (Amendment) Statutory Rules 1984 No. 124, enacted by the Minister of State for Primary Industry, amends the Dairy Industry Stabilization Levy Regulations under the Dairy Industry Stabilization Levy Act 1977. This Act was introduced to address the need for a structured approach to stabilize the domestic dairy market by imposing levies on the production of prescribed dairy products, thereby protecting the domestic price structure and ensuring equitable returns for manufacturers from both domestic and export sales. The policy objective of these amendments is to adjust the levy rates to reflect changes in the assessed export prices for the 1984/85 season, while maintaining the domestic values for levy purposes as recommended by the Australian Dairy Corporation and approved by the Minister for Primary Industry. The Minister's decision to maintain the domestic values was based on the need to align with the current domestic and international dairy market conditions to avoid misinforming producers about market signals.
Scope and Application
The Dairy Industry Stabilization Levy Regulations (Amendment) apply to all entities involved in the production of prescribed dairy products within Australia, encompassing various industries and entities involved in the manufacture, production, and sale of these products. These regulations fall under the purview of the Commonwealth government, and they are designed to maintain the stability and fairness of the domestic dairy market by imposing and adjusting levies on specified dairy products. The regulations also consider recommendations from the Australian Dairy Corporation and the Australian Dairy Industry Advisory Committee to ensure they reflect the realities of both domestic and international dairy markets. Notably, the rates of levy are determined based on the difference between the domestic value for levy purposes and the assessed export price, which is set by the Minister for Primary Industry under the Dairy Produce Act 1924. The regulations include specific exemptions, such as those for processed butteroil and processed cheese, provided the production does not exceed certain thresholds within a financial year. The application of these regulations extends across all states and territories of Australia, ensuring a consistent approach to the regulation of the dairy industry.
Key Provisions
The Dairy Industry Stabilization Levy Regulations (Amendment) address the fixing of operative rates for levies on various dairy products, as outlined in Section 11(1)(a) of the Dairy Industry Stabilization Levy Act 1977. The primary focus of these regulations is to set the rates for each kind of dairy product under Section 7 of the Act. The rates are calculated based on the difference between the domestic value for levy purposes and the assessed export price. The assessed export price is determined by the Minister for Primary Industry under subsection 20AB(4) of the Dairy Produce Act 1924. For instance, for the 1984/85 season, the stabilisation levy rates are set at specific amounts per tonne for products such as butter, buttermilk powder, butteroil, casein, cheese, and various powders, among others.
These regulations impose specific obligations on the parties involved, particularly the Australian Dairy Corporation and the Minister for Primary Industry. The Australian Dairy Corporation is tasked with recommending levy rates after consulting with the Australian Dairy Industry Advisory Committee. However, the Minister for Primary Industry retains the authority to determine whether to accept these recommendations, as stated in subsection 11(3) of the Act. For the 1984/85 season, the Minister decided to maintain domestic values for levy purposes at their current levels despite the recommendations, to align with market realities and avoid misleading producers. The regulations also ensure that certain products, such as processed butteroil and processed cheese, remain exempt from levy if their annual production does not exceed specified limits.
The Dairy Industry Stabilization Levy Regulations (Amendment) do not explicitly outline offences or penalties for breaches within the text provided. However, under the broader framework of the Dairy Industry Stabilization Levy Act 1977, non-compliance with the specified regulations could potentially lead to civil or criminal consequences, depending on the nature and severity of the breach. Penalties might include fines or other enforcement actions as stipulated by the relevant sections of the Act. The specific penalties are not detailed in the provided text, but they are likely to be determined in accordance with other sections of the Act or related legislation.