EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO.132
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 Lew (No 1) Act 1986 (the Act) provides for the Governor-General to make regulations for the purposes of financing aspects of the new dairy industry arrangements which are implemented under the Dairy Produce Act 1986.
The Act finances the arrangement by imposing four levies on the milk fat content of relevant dairy produce (whole milk and whole milk products). The four 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 under 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 purpose of the Regulations is to set the operative rate of the market support levy imposed by the Dairy Produce Levy (No 1) Act 1986.
The Regulations set the market support levy at 45 cents per kilogram of milk fat, the Corporation levy to 1.05 cents per kilogram of milk fat and the promotion levy to 4.95 cents per kilogram of milk fat. The new rates are to apply from 1 July 1988.
The rates were set after the Governor-General had taken into consideration a recommendation with respect to the market support levy rate made to the Minister by the Australian Dairy Corporation in accordance with subsection 14(2) of the Act for the purposes of subsection 7(1) (ie the rate of market support levy); and after the Governor General had taken into consideration a recommendation with respect to the Corporation and promotion levy rates made to the Minister by the executive council of the Australian Dairy Industry Conference in accordance with subsection 14(3) of the Act for the purposes of subsection s 7(2) and 7(3) (ie the rate of the levies).
The rate increases are necessary to provide the Corporation with sufficient funds to make the market support payments anticipated for 1988/89, meet the Corporation’s operating expenses and fund the promotional activities planned for 1988/89.
The levy rates are at or below the permitted maximum rate laid down in section 7 of the Act.