Determination of the Commonwealth Fisheries Gross Value of Production (GVP) for 2017-18

Overview

The Primary Industries Research and Development Act 1989, enacted by the Australian Parliament, was introduced to facilitate research, development, and extension activities in primary industries, including fisheries. It established the Fisheries Research and Development Corporation to fund and oversee research efforts in the fishing industry. This Act, along with the Fisheries Research and Development Corporation Regulations 1991, sets out the framework for calculating the Commonwealth Gross Value of Production (GVP) of the fisheries sector. The policy objective is to ensure that the funding provided to the Fisheries Research and Development Corporation is reflective of the actual economic output of the fishing industry managed by, on behalf of, or paying levies directly to the Commonwealth. This ensures that the financial support for research and development in the sector is proportionate to the industry's production value.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the fisheries industry, specifically those parts of the industry managed by, on behalf of, or paying levies directly to the Commonwealth. The Act facilitates the funding of the Fisheries Research and Development Corporation (FRDC) based on the Gross Value of Production (GVP) of the Commonwealth fishing industry. This determination process involves averaging the GVP from the current financial year and the two preceding years. The determination made by the Minister for Agriculture and Water Resources under subsection 30A(2) of the Act and Regulation 4D of the Fisheries Research and Development Corporation Regulations 1991 sets the Commonwealth GVP for the 2017–18 financial year at $493,357,000, calculated from estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). This legislation has a national jurisdictional reach, affecting all entities involved in the Commonwealth-managed fisheries sector.

Key Provisions

The Primary Industries Research and Development Act 1989 (the Act) and the Fisheries Research and Development Corporation Regulations 1991 (the Regulations) establish the framework for the determination of the Commonwealth Gross Value of Production (GVP) for fisheries. Specifically, subsection 30A(2) of the Act mandates that the GVP for the financial year 2017–18, which pertains to the produce of the fishing industry managed by, on behalf of, or paying levies to the Commonwealth, is set at $493,357,000. This determination was made on 7 June 2018 by David Littleproud, the Minister for Agriculture and Water Resources, and is based on the average GVP over the three financial years 2015–16, 2016–17, and 2017–18. The Act and the Regulations impose several obligations on the parties involved. Firstly, under subsection 30A(2) and (3) of the Act, the funding to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund is directly tied to the GVP of the Commonwealth fishing industry. This means that the financial support for research and development in the fisheries sector is contingent on the economic output of the industry. Furthermore, subsection 30A(5) of the Act and Regulation 4D of the Regulations specify that the Commonwealth GVP for any given year is calculated as an average of the GVP for that year and the two preceding years. This ensures a more stable and reliable funding model, smoothing out any fluctuations in annual production values. Non-compliance with the provisions of the Act and the Regulations can lead to legal consequences. While the determination itself does not explicitly outline specific offences, breaches of related obligations could potentially lead to civil or criminal penalties under broader Australian legislative frameworks. The maximum penalties for such breaches are not detailed within the determination but would typically involve fines or imprisonment as prescribed under the specific Acts under which the offences are committed. The Act and Regulations are part of a larger framework, and therefore, penalties would be aligned with the severity of the breach and the provisions of the overarching legislation.