EXPLANATORY STATEMENT
STATUTORY RULES 1985 No. 152
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 the 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 (ADC) in promoting the sale and consumption of dairy products on the domestic market and to pay the operational and administrative costs of the ADC.
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 a maximum specified for each rate of 1.2 cents per 100 litres for research finance, 24 cents per 100 litres for domestic promotion of dairy products by the ADC and 6 cents per 100 litres for operational and administrative costs of the ADC. Section 11 of the Act makes similar provision per 100 kilograms of butter fat with in a maximum of 30 cents per 100 kilograms for research finance, $6.00 per 100 kilograms for domestic promotion of dairy products by the ADC and $1.50 per 100 kilograms for operational and administrative costs of the ADC.
The maximum rates of levy on wholemilk and butter fat which may be prescribed for the purposes of domestic promotional expenditure are provided by sub-sections 7(b) and 11(b) of the Act.
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 ADC 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 ADC makes any recommendations for these purposes it is required to consult with the Australian Dairy Farmers’ Federation.
The ADC has, after consultation with the Australian Dairy Farmers’ Federation, recommended to the Minister a decrease in the rate of levy to apply under paragraph 7(b) of the Act to 18 cents per 100 litres of milk and a consequent decrease in the rate of levy to apply under paragraph 11(b) of the Act to $4.50 per 100 kilograms of butter fat. The current rates are 19 cents and $4.75 respectively. The Minister agrees with the rate of levy proposed.
The purpose of the Regulations is, therefore, to introduce, from 1 July 1985, an operative rate of levy of
(a) 18 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) $4.50 per 100 kilograms of butter fat for the purposes of paragraph 11(b) of the Dairying Industry Research and Promotion Levy Act 1972.