Dairy Produce Amendment Act 1987

Overview

The Dairy Produce Amendment Act 1987 was enacted by the Parliament of Australia to address the need for regulation of the minimum price for the export of controlled dairy products, thereby ensuring fair and sustainable practices within the dairy industry. This Act amends the existing Dairy Produce Act 1986 by introducing provisions that mandate a minimum price for controlled dairy exports, known as the IDA minimum price, and imposing penalties for exporting below this price unless justified by exceptional circumstances. The policy objective is to maintain market stability and support for the dairy industry, aligning with international agreements such as the International Dairy Arrangement. The Act also introduces measures for the cancellation or suspension of export licences for breaches of the new pricing provisions, with specific procedures for reconsideration and review of such decisions. This legislative amendment reflects a commitment to balancing industry regulation with the flexibility necessary to respond to exceptional market conditions.

Scope and Application

The Dairy Produce Amendment Act 1987 is a Commonwealth Act that amends the Dairy Produce Act 1986, primarily concerning the regulation of dairy exports. The Act applies to entities and individuals licensed under the Dairy Produce Act 1986 who are involved in the export of controlled dairy exports, which include dairy produce subject to specific regulations. The Act operates within the jurisdictional reach of the Commonwealth of Australia. It introduces provisions for determining an IDA minimum price for controlled dairy exports and mandates that export contracts must not be made at prices below this minimum, with exceptions under certain circumstances. The Act also outlines penalties for non-compliance, including financial penalties and the potential cancellation or suspension of export licenses. The Act's application may be further defined or extended through regulations made under its authority, which may incorporate international arrangements such as the International Dairy Arrangement. The Act does not create new criminal offences but provides for administrative penalties and regulatory actions against non-compliant licensees.

Key Provisions

The Dairy Produce Amendment Act 1987, which amends the Dairy Produce Act 1986, introduces several significant changes to the regulation of dairy exports. Section 51A introduces the concept of an International Dairy Arrangement (IDA) minimum price for controlled dairy exports, meaning that any contract for the export of such products must not be at a price lower than this minimum. The regulations may determine the method for calculating this minimum price, and it may incorporate the International Dairy Arrangement done at Geneva on 12 April 1979. Licensees are prohibited from entering into contracts at prices below the IDA minimum price unless justified by exceptional circumstances, as determined by the Corporation. If a licensee breaches this provision, they must pay the Corporation the difference between the IDA minimum price and the export price within 60 days, unless the Corporation makes a determination under section 51A(5). This payment is for the purposes of the Market Support Fund. The Act imposes several obligations on parties involved in dairy exports. Licensees must ensure that their export contracts comply with the IDA minimum price as stipulated in section 51A. The Corporation has the authority to cancel or suspend a licensee's export licence if the licensee breaches certain provisions of section 51A. Specifically, the Corporation must provide written notice to the licensee either cancelling or suspending their export licence if the licensee contravenes subsection 51A(2) or (3). However, if the Corporation has made a determination under subsection 51A(5) in relation to the contract, they cannot cancel or suspend the licensee's export licence due to the contravention. The Corporation also has the discretion to cancel a previously suspended licence if the circumstances leading to the suspension persist. The Act does not explicitly outline criminal or civil penalties for breaches of the IDA minimum price requirement. However, it does stipulate that a contravention of section 51A does not constitute an offence against the Act. Instead, the primary consequence of non-compliance is the requirement to pay the difference between the IDA minimum price and the export price, as mentioned in section 51A(3). This payment mechanism serves as a financial disincentive for non-compliance, ensuring that the minimum price is respected. Additionally, the Corporation's power to cancel or suspend export licences provides a regulatory oversight mechanism to enforce compliance with the IDA minimum price.