EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Dairy Produce Act 1986
Dairy Produce (Closure of Dairy Adjustment Authority) Declaration 2008
Sub-section 55(2) of Schedule 2 of the Dairy Produce Act 1986 provides that the Minister may declare that the Dairy Adjustment Authority ceases to exist immediately after a specified date.
OUTLINE
The purpose of the declaration is to close the Dairy Adjustment Authority.
CONSULTATION
The Dairy Adjustment Authority (the authority) and Dairy Australia Limited, the dairy industry services body which provides administrative support to the authority, have been extensively consulted about the authority’s closure.
EXPLANATION
The authority was established in 2000 by Schedule 2 to the Dairy Produce Act 1986 as a statutory authority under the Agriculture, Fisheries and Forestry portfolio. The authority was created to make eligibility determinations and administer payments to farmers under the two largest components of the Dairy Industry Adjustment Program. The final scheduled quarterly payment to farmers under the Adjustment Program was made in April 2008.
The Dairy Adjustment Levy Termination Act 2008 amends the Dairy Produce Act 1986 to provide for the wind-up of the Adjustment Program, including closing down the authority. The authority has been actively preparing for its closure, including finalising a significant number of failed credits and completing its 2007-08 annual reporting requirements. The authority currently has three part-time contracted staff, all of whom will conclude their employment with the authority on 19 December 2008.
The Dairy Adjustment Levy Termination Act 2008 provides that the Secretary of the department will assume the powers and functions of the authority after it is closed. The authority and the department have made arrangements to ensure knowledge and records are transferred to the department prior to the authority’s closure.
The Office of Best Practice Regulation has advised a Regulation Impact Statement and Business Cost Calculator Report are not required for the declaration to close the authority (OBPR ID: 9972).