Overview

The Primary Industries Research and Development Act 1989, enacted by the Commonwealth Parliament, aims to establish a framework for research and development activities in primary industries, including fisheries. This Act, along with the Fisheries Research and Development Corporation Regulations 1991, seeks to ensure that funding for fisheries research and development is appropriately aligned with the economic output of the Commonwealth-managed fisheries sector. The policy objective of this legislative framework is to support sustainable growth and productivity in the fisheries industry through targeted research and development funding. In accordance with this legislative mandate, the determination of the Commonwealth Gross Value of Production (GVP) for the 2019–20 financial year was made to calculate the appropriate funding allocation to the Fisheries Research and Development Corporation. This determination process involved averaging the GVP estimates for the 2017–18, 2018–19, and 2019–20 financial years, resulting in a GVP of $490,638,000 for the 2019–20 financial year.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the determination of the Gross Value of Production (GVP) for the Commonwealth fishing industry, with specific provisions under subsection 30A(2) and (3) stipulating that the amount paid to the Fisheries Research and Development Corporation is based on this GVP. This Act is administered at the Commonwealth level, impacting the fishing industry, particularly those segments managed by, on behalf of, or paying levies to the Commonwealth. The determination of the Commonwealth GVP, as outlined in the Fisheries Research and Development Corporation Regulations 1991, is based on an average of the GVP from the relevant and two preceding financial years, as per subsection 30A(5) of the Act and Regulation 4D of the Regulations. This calculation has been delegated to the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division within the Department of Agriculture, Water and the Environment. The recent determination for the financial year 2019-20, based on estimates from the Australian Bureau of Agricultural and Resource Economics and Sciences, sets the Commonwealth GVP at $490,638,000.

Key Provisions

The Primary Industries Research and Development Act 1989, and specifically subsection 30A(4) of this Act, mandates the determination of the Commonwealth Gross Value of Production (GVP) for the fishing industry annually. This determination is based on the average GVP from the relevant financial year and the two preceding financial years, as stipulated in subsection 30A(5). The Fisheries Research and Development Corporation Regulations 1991, particularly Regulation 4D, further support this process by setting out the mechanism for this calculation. The authority to make this determination lies with the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division of the Department of Agriculture, Water and the Environment. The Act imposes specific obligations on the First Assistant Secretary and the Department. They must ensure that the GVP for the Commonwealth fishing industry is accurately calculated each year, using data provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The First Assistant Secretary must then determine the average GVP from the relevant and the two preceding financial years, rounding the result to the nearest thousand dollars. This process ensures that the funding allocated to the Fisheries Research and Development Corporation reflects the economic activity within the Commonwealth fishing sector accurately. The Act does not explicitly outline offences, penalties, or civil/criminal consequences for breaches related to the determination of the Commonwealth GVP. However, any failure to comply with the statutory requirements could potentially lead to disputes or legal challenges regarding the allocation of funds to the Fisheries Research and Development Corporation. Such breaches might also impact the integrity of the funding mechanism, thereby affecting the research and development activities supported by the Corporation. The consequences of non-compliance would likely be addressed through administrative or judicial review rather than direct penalties under the Act.