EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 248
Issued by the Authority of the Minister for Primary Industry
DAIRYING INDUSTRY RESEARCH AND PROMOTION LEVY REGULATIONS (AMENDMENT)
Section 6 of the Dairying Industry Research and Promotion Levy Act 1972 imposes a levy on the production and sale of whole milk produced and sold in Australia. Section 10 of that Act imposes a levy on the production and sale of butter fat produced from whole milk which has been produced in Australia where the producer of the butter fat is also the producer of the whole milk and the butter fat is sold by that producer.
There are three separate elements of levy on whole milk and butter fat, the proceeds of which are used to finance research in relation to dairy products, to provide funds for use by the Australian Dairy Corporation in promoting the sale and consumption of dairy products on the domestic market and to pay the operational and administrative costs of the Australian Dairy Corporation.
Section 7 of the Act provides for a separate rate of levy per 100 litres of whole milk to be prescribed for each of the above purposes, subject to maxima specified for each rate. Section 11 of the Act makes similar provision per 100 kilograms
of butter fat. In particular, paragraphs 7(b) and 11(b), as amended by the Dairying Industry Research and Promotion Levy Amendment Act 1983, provide that the rates of levy which may be prescribed for the purposes of those paragraphs (i.e. domestic promotional expenditure) may not exceed, in the case of paragraph 7(b), 24 cents per 100 litres of whole milk and, in the case of paragraph 11(b), $6.00 per 100 kilograms of butter fat.
Section 13 of the Act provides, inter alia, that the Governor-General may make regulations for the purposes of:
(a) prescribing a rate per 100 litres of whole milk for the purposes of paragraph 7(b); and
(b) prescribing a rate per 100 kilograms of butter fat for the purposes of paragraph 11(b).
Sub-section 13(3) of the Act requires the Governor-General to take into consideration any recommendations made by the Australian Dairy Corporation to the Minister with respect to the rates of levy which should be prescribed for the purposes of paragraphs 7(b) or 11(b). Before the Australian Dairy Corporation makes any recommendations for these purposes it is required to consult with the Australian Dairy Farmers’ Federation.
The Australian Dairy Corporation has, after consultation with the Australian Dairy Farmers’ Federation, recommended an increase in the rate of levy to apply under paragraph 7(b) of the Act to 19 cents per 100 litres of milk and a consequent increase in the rate of levy to apply under paragraph 11(b) of the Act to $4.75 per 100 kilograms of butter fat. The current rates are 12 cents and $3.00 respectively.
The purpose of the Regulations is, therefore, to introduce, from 1 November 1983, an operative rate of levy of
(a) 19 cents per 100 litres of whole milk for the purposes of paragraph 7(b) of the Dairying Industry Research and Promotion Levy Act 1972; and
(b) $4.75 per 100 kilograms of butter fat for the purposes of paragraph 11(b) of the Dairying Industry Research and Promotion Levy Act 1972.