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).
Overview
The Dairy Produce (Closure of Dairy Adjustment Authority) Declaration 2008 was enacted to facilitate the closure of the Dairy Adjustment Authority, as stipulated under sub-section 55(2) of Schedule 2 of the Dairy Produce Act 1986. This authority was established in 2000 to manage eligibility determinations and administer payments to farmers under the Dairy Industry Adjustment Program. With the final payments under this program completed in April 2008, the need for the Authority diminished. The enactment of the Dairy Adjustment Levy Termination Act 2008 further supports the wind-up of the Adjustment Program and the subsequent closure of the Authority. Extensive consultations were held with the Authority and Dairy Australia Limited, which provides administrative support to the Authority, prior to this decision. The Minister for Agriculture, Fisheries and Forestry, under whose portfolio the Authority was established, issued this declaration to ensure a smooth transition of the Authority's functions to the relevant department.
Scope and Application
The Dairy Produce (Closure of Dairy Adjustment Authority) Declaration 2008 pertains to the cessation of the Dairy Adjustment Authority, a statutory body under the Agriculture, Fisheries and Forestry portfolio established by Schedule 2 of the Dairy Produce Act 1986. The declaration is pursuant to sub-section 55(2) of Schedule 2, which empowers the Minister to specify a date for the authority's closure. This closure follows the final scheduled payment under the Dairy Industry Adjustment Program in April 2008, marking the conclusion of its operations. The authority, which was tasked with determining eligibility and administering payments to farmers, has been in the process of winding down, completing necessary administrative tasks such as resolving failed credits and fulfilling annual reporting obligations. The Dairy Adjustment Levy Termination Act 2008 facilitates the authority's closure and provides for the transfer of its powers and functions to the Secretary of the relevant department. The authority, which employed three part-time contracted staff, will cease operations with the last staff members concluding their employment on 19 December 2008. The declaration does not extend to requiring a Regulation Impact Statement or a Business Cost Calculator Report, as advised by the Office of Best Practice Regulation.
Key Provisions
The primary sections of the Dairy Produce (Closure of Dairy Adjustment Authority) Declaration 2008 (sections 2 and 3) enable the Minister to declare the cessation of the Dairy Adjustment Authority (DAA), effective immediately after a specified date. This authority was established under the Dairy Produce Act 1986 to administer payments to farmers and determine eligibility for the Dairy Industry Adjustment Program. The declaration follows the final scheduled payment made in April 2008 and aligns with the Dairy Adjustment Levy Termination Act 2008, which provides for the wind-up of the Adjustment Program.
The Act imposes several obligations on the parties involved. The Minister, under section 55(2) of Schedule 2, is required to declare the cessation of the DAA. The DAA itself must complete its administrative duties, including finalising failed credits and fulfilling annual reporting requirements. The Department of Agriculture, Fisheries and Forestry must prepare to assume the powers and functions of the DAA, including the transfer of knowledge and records, to ensure continuity of service for affected stakeholders.
The legislation does not explicitly state any offences, penalties, or consequences for non-compliance. However, the obligation to transfer records and knowledge to the department prior to the DAA's closure is critical. Failure to complete these tasks could result in service disruptions or administrative gaps for farmers dependent on the Adjustment Program. The authority's closure is a formal process intended to ensure a smooth transition of responsibilities, with specific timelines and arrangements already in place to manage this change effectively.