Determination of the Commonwealth Fisheries Gross Value of Production (GVP) for 2021–22

Overview

The Primary Industries Research and Development Act 1989, enacted by the Parliament of Australia, aimed to facilitate research and development within the primary industries sector, including fisheries. This Act, along with the Fisheries Research and Development Corporation Regulations 1991, establishes the framework for funding research through levies on the industry. A notable objective of this legislation is to ensure that funding for the Fisheries Research and Development Corporation is proportionate to the economic output of the Commonwealth fishing industry. Pursuant to this Act and the accompanying regulations, the Commonwealth Gross Value of Production (GVP) for the fishing industry is calculated to determine the financial contributions from the industry. For the financial year 2021–22, the GVP was determined to be $582,288,000, based on an average of the GVP from the relevant and two preceding financial years, as estimated by the Australian Bureau of Agricultural and Resource Economics and Sciences.

Scope and Application

The Primary Industries Research and Development Act 1989 and the Fisheries Research and Development Corporation Regulations 1991 collectively establish the legislative framework for determining the Commonwealth Gross Value of Production (GVP) of the fishing industry. This legislation applies to the Commonwealth fishing industry, specifically the part managed by, on behalf of, or paying levies directly to the Commonwealth. The Act mandates that the GVP, which serves as a basis for payments to the Fisheries Research and Development Corporation, is calculated as an average of the GVP for the relevant financial year and the two preceding years. The authority to make this determination 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. This determination applies nationally across Australia and is based on the estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The legislation does not specify any exclusions, exemptions, or thresholds for the application of these determinations, thereby applying uniformly to all relevant entities within the scope of the fishing industry under Commonwealth management.

Key Provisions

The Primary Industries Research and Development Act 1989, specifically subsections 30A(2) and (3), and the Fisheries Research and Development Corporation Regulations 1991, particularly Regulation 4D, set the framework for determining the Commonwealth Gross Value of Production (GVP) of the fishing industry. The GVP for the financial year 2021–22 has been determined to be $582,288,000, based on the average GVP of the relevant and the two preceding financial years, as outlined in the determination made under subsection 30A(4) of the Act and Regulation 4D of the Regulations. The First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division, as the authorised officer, made this determination on 29 June 2022. The obligations under these provisions require the Fisheries Research and Development Corporation to be funded based on the GVP of the Commonwealth fishing industry. This funding mechanism ensures that the Corporation has the necessary resources to carry out its functions as specified in the Act. The First Assistant Secretary, as delegated with the authority to determine the GVP, is responsible for ensuring that the GVP for the Commonwealth fishing industry is calculated accurately and that the determination is made in a timely manner. This involves reliance on data provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), which estimates the GVP to the nearest thousand dollars. Breaches of the obligations or inaccuracies in the determination of the GVP could lead to various consequences. While the legislation does not explicitly state penalties for such breaches, any inaccuracies in the GVP determination could impact the funding available to the Fisheries Research and Development Corporation. This, in turn, could affect the Corporation’s ability to fulfil its statutory responsibilities for research and development in the fishing industry. Consequently, there may be indirect impacts on the industry's ability to innovate and improve practices, as well as on the broader economic activities related to fishing. Ensuring the accuracy and timeliness of the GVP determination is thus crucial to maintaining the integrity of the funding mechanism established by the Act and Regulations.