Determination of the Commonwealth Fisheries Gross Value of Production (GVP) for 2022–23

Overview

The Primary Industries Research and Development Act 1989, enacted by the Commonwealth Parliament, was designed to establish the Fisheries Research and Development Corporation and to provide for its funding, among other purposes. This Act, through its provisions, aimed to support research, development, and extension activities in the primary industries sector, including fisheries. The Act was introduced to address the need for coordinated and targeted research and development efforts in Australia's primary industries, ensuring sustainable development and productivity growth. The policy objective was to foster innovation and efficiency within these industries, particularly through the allocation of funds based on the Gross Value of Production (GVP) of the fishing industry. Pursuant to this Act, the Fisheries Research and Development Corporation Regulations 1991 further detail the mechanisms for funding and governance of the Corporation. These regulations, among other things, establish the process for determining the Commonwealth GVP, which is integral to the funding formula for the Corporation.

Scope and Application

The Primary Industries Research and Development Act 1989, together with the Fisheries Research and Development Corporation Regulations 1991, applies to the management and funding of fisheries research and development activities in Australia. Specifically, the legislation governs the funding allocation to the Fisheries Research and Development Corporation (FRDC) based on the Gross Value of Production (GVP) of the Commonwealth managed fisheries. This legislation is applicable to the fishing industry, particularly those sectors that are managed by, on behalf of, or pay levies directly to the Commonwealth. The determination of the Commonwealth GVP is conducted by an authorised officer within the Department of Agriculture, Fisheries and Forestry, as delegated by the Minister for Agriculture. The determination process for the GVP takes into account the average of the GVP for the relevant year and the two preceding years, providing a balanced assessment of industry performance. The geographic reach of this Act is national, as it pertains to the entire Commonwealth managed fisheries sector across Australia. The act does not specify any exclusions or exemptions, and the threshold for GVP calculation is determined through a detailed estimation process by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Key Provisions

The Primary Industries Research and Development Act 1989, as referenced in the determination, contains specific provisions that govern how funds are allocated to the Fisheries Research and Development Corporation. Section 30A(2) and (3) of this Act stipulates that the payments to the Corporation from the Consolidated Revenue Fund are to be determined by the Gross Value of Production (GVP) of the Commonwealth fishing industry. This means that the financial support provided to the Corporation is directly tied to the economic output of the Commonwealth managed fisheries. Furthermore, Section 30A(4) and the Fisheries Research and Development Corporation Regulations 1991, specifically Regulation 4D, allow for the determination of the Commonwealth GVP to be based on an average of the GVP for the relevant financial year and the two preceding years. The determination of the Commonwealth GVP for the 2022–23 financial year is a critical function carried out by the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division, who is authorised under a delegation approved by the Minister for Agriculture. The determination process involves calculating an average of the GVP estimates for the 2020–21, 2021–22, and 2022–23 financial years, provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). These estimates are rounded to the nearest thousand dollars, and the average of the rounded figures results in the determination of the Commonwealth GVP for the year in question. In accordance with the legislation, the First Assistant Secretary, upon reviewing the ABARES estimates, determined that the Commonwealth GVP for the 2022–23 financial year is $587,803,000. This determination is pivotal as it directly influences the funding allocation to the Fisheries Research and Development Corporation for that financial year. It is essential that this determination process is conducted with precision and adherence to the statutory requirements to ensure the proper distribution of funds for research and development in the fisheries sector. The legislation does not explicitly outline specific offences, penalties, or consequences for non-compliance in the determination of the GVP. However, any failure to comply with the statutory requirements or to make an accurate determination could potentially lead to financial discrepancies in the funding allocated to the Fisheries Research and Development Corporation. Such discrepancies might result in legal scrutiny and require corrective actions to ensure that the intended funding levels are met. The consequences could include re-evaluations, audits, or other administrative actions to rectify any errors in the determination process.