EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 111
Issued by the authority of the Minister for Primary Industries and Energy
DAIRY PRODUCE LEVY (NO 1) ACT 1986
DAIRY PRODUCE LEVY REGULATIONS (AMENDMENT)
The Dairy Produce Levy (No 1) Act 1986 (the Act) provides for the Governor-General to make regulations for the purposes of financing aspects of the dairy industry arrangements which are implemented under the Dairy Produce Act 1986.
The Act finances the arrangement by imposing five levies on the milk fat content of relevant dairy produce (whole milk and whole milk products). The five milk fat levies and the purpose of each are:
• the market support levy - to provide the moneys for market support payments on exported dairy produce pursuant to the relevant provisions of the Dairy Produce Act 1986
• the Corporation levy - to cover the administrative costs of the Australian Dairy Corporation which is established by the Dairy Produce Act 1986
• the promotion levy - to fund Corporation activity in promoting dairy products
• the research levy - to fund dairy industry research
• the exotic animal disease control levy - to fund projects aimed at prevention and control of exotic animal diseases.
The purpose of the regulations is to set the operative rate of each of these levies.
The research levy is increased from 1.30 cents per kilogram of milk fat to 1.80 cents per kilogram of milk fat, and the market support levy is decreased from 45 cents per kilogram of milk fat to 43 cents per kilogram of milk fat by the proposed regulations.
The new rate for the market support levy will be set after the Governor-General has taken into consideration a recommendation made to the Minister by the Australian Dairy Corporation in accordance with Subsection 14(2) for the purposes of Subsection 7(1) (ie the rate of the levy).
The recommendation was made following a review by the Corporation of the industry’s assistance requirements.
The levy rate is below the permitted maximum rate laid down in Subsection 7(1) of the Act.
The new rate for the research levy will be set after the Governor-General has taken into consideration a recommendation made to the Minister by the Executive Council of the Australian Dairy Industry Conference in accordance with subsection 14(3) for the purposes of subsection 7(4) (ie the rate of levy). The recommendation was made following a review by the Australian Dairy Industry Conference of the industry’s research program.
The levy rate is below the permitted maximum rate laid down in subsection 7(4) of the Act.