Dairy Produce Regulations (Amendment) 1995 No. 310
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 310
Issued by the Authority of the Minister for Primary Industries and Energy
Dairy Produce Act 1986
Dairy Produce Regulations (Amendment)
The Dairy Produce Act 1986 (the Act) relates to the functions of the Australian Dairy Corporation, the marketing and export of dairy produce, and the operation of the dairy market support arrangements for manufacturing milk products.
Section 51A of the Act provides that regulations may prescribe a method for ascertaining the International Dairy Arrangement (IDA) minimum price to be complied with in relation to the export of dairy products.
Regulation 4 prescribes the International Dairy Arrangement with the purpose of making Australian traders exporting dairy products at prices below the IDA minimum subject to the penalty provisions prescribed under section 51A of the Act.
The former International Dairy Arrangement came into operation on 1 January 1980 as a result of the Tokyo Round of Multilateral Trade Negotiations, and was terminated with the entry into force on 1 January 1995 of the World Trade Organisation, and the. commencement of a new International Dairy Agreement (IDA) . Australia's membership of the former Arrangement expired at that time.
Careful consideration was given to the advantages and disadvantages of membership of the new Agreement. Following consultation with the peak dairy industry body, the Australian Dairy Industry Council (ADIC), and with the agreement of the Minister for Foreign Affairs and the Minister for Trade, the Government has decided that Australia will not join the new IDA.
As Australia is no longer a member of the IDA, there is no need for Australia to be bound by the IDA minimum price provisions. Australia's non membership of the IDA, however, does not of itself extinguish either the requirement for exporters to abide by IDA minimum prices, or the associated penalty provisions.
The purpose of these regulations is to remove the minimum price provisions in the regulations so that Australian traders exporting dairy products at prices below IDA minimum prices are no longer subject to the penalty provisions prescribed under section 51A of the Act.
Details of the Regulations are as follows:
Regulation 1 provides for the Dairy Produce Regulations to be amended.
Regulation 2 omits the definition of "controlled dairy produce" from subregulation 2(1).
Regulation 3 omits regulation 4 (Conditions of export of controlled dairy exports).
The Regulations commenced on gazettal.
Overview
The Dairy Produce Regulations (Amendment) 1995 No. 310, issued under the authority of the Minister for Primary Industries and Energy, amend the existing Dairy Produce Regulations 1995 to address the implications of Australia's decision not to join the new International Dairy Agreement (IDA). The Dairy Produce Act 1986, which governs the functions of the Australian Dairy Corporation, the marketing and export of dairy produce, and the operation of dairy market support arrangements, originally incorporated the IDA minimum price provisions. However, following Australia's decision to withdraw from the new IDA, there was a need to update the regulations to reflect this change. The policy objective of these amendments is to ensure that Australian dairy exporters are no longer subject to the IDA minimum price requirements and associated penalties, thus aligning the regulatory framework with Australia's current international trade stance. The amendments remove the minimum price provisions, effectively disengaging Australian traders from the IDA price stipulations.
Scope and Application
The Dairy Produce Regulations (Amendment) 1995 No. 310, issued under the authority of the Minister for Primary Industries and Energy, amends the Dairy Produce Act 1986. This Act governs the operations of the Australian Dairy Corporation, the marketing and export of dairy products, and the support arrangements for manufacturing milk products. The regulations specifically address the International Dairy Arrangement (IDA) minimum price provisions that were previously applicable to the export of dairy products. Given Australia's decision not to join the new IDA, these amendments aim to remove the minimum price requirements and associated penalties for exporters. The changes include omitting the definition of "controlled dairy produce" and regulation 4, which pertained to the conditions of export of controlled dairy products. These regulations commenced on gazettal, and their application extends to all entities and individuals involved in the export of dairy products from Australia.
Key Provisions
The Dairy Produce Regulations (Amendment) 1995 No. 310, issued under the authority of the Minister for Primary Industries and Energy, primarily serve to amend the Dairy Produce Regulations of 1986 in response to Australia's decision not to join the new International Dairy Agreement (IDA). Section 51A of the Act originally provided the basis for setting the IDA minimum price for dairy products exported from Australia. This legislative amendment effectively removes the requirement for Australian exporters to adhere to the IDA minimum price provisions, as outlined in Regulation 4 of the original regulations. Regulation 1 of the Amendment initiates the amendment process, while Regulation 2 removes the definition of "controlled dairy produce" from the original subregulation 2(1), and Regulation 3 omits regulation 4, which detailed the conditions for the export of controlled dairy produce.
The Act imposes certain obligations on parties involved in the marketing and export of dairy products. Under the original regulations, exporters were required to adhere to the IDA minimum price for the export of dairy products. This obligation stemmed from the international commitments Australia had under the former IDA. However, with the new Amendment, Australian exporters are no longer bound by the IDA minimum price provisions, thereby relieving them of the obligation to comply with these specific price requirements. Despite this change, the Act continues to regulate the broader marketing and export activities of dairy products, ensuring they are conducted within the legal framework established by the Dairy Produce Act.
In terms of consequences for non-compliance, the original provisions of the Dairy Produce Act stipulated penalties for exporters who failed to meet the IDA minimum price requirements. These penalties were outlined in section 51A of the Act. However, with the enactment of the Dairy Produce Regulations (Amendment), the penalty provisions linked to the IDA minimum price have been rendered inoperative. Australian traders exporting dairy products at prices below the IDA minimum are no longer subject to the previously stipulated penalties. The Amendment thus effectively removes the specific penalty provisions that were associated with non-compliance with the IDA minimum price requirements, although it does not affect other general compliance obligations under the Act.