Determination of the State/Territory Fisheries Gross Value of Production (GVP) for 2016-17

Overview

The Primary Industries Research and Development Act 1989 was enacted to address the need for coordinated and strategic research and development in Australia's primary industries, including fisheries. The Act established the Fisheries Research and Development Corporation (FRDC) to facilitate funding and research activities aimed at enhancing the productivity and sustainability of the fishing industry. Pursuant to the Act, the Fisheries Research and Development Corporation Regulations 1991 were made to provide further detail on the administration and operation of the FRDC, including the methodology for determining the Gross Value of Production (GVP) of fisheries for each state and territory. This determination is crucial for allocating funds to the FRDC based on the economic contribution of each jurisdiction's fishing industry. The policy objective is to ensure that research and development funding is proportional to the economic significance of the fishing industry in each state or territory, thereby supporting growth and sustainability within the sector.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the management and development of primary industries in Australia, with specific regulations outlined in the Fisheries Research and Development Corporation Regulations 1991. This legislation is instrumental in determining the Gross Value of Production (GVP) for fisheries across different states and territories, which in turn influences funding allocations for research and development initiatives. The Act specifically applies to entities and industries involved in the fishing sector, encompassing the produce of fisheries managed by state and territory governments or on their behalf, excluding Commonwealth-managed fisheries like the southern bluefin tuna fishery in the case of South Australia. The geographic reach of this legislation is national, as it pertains to all states and territories of Australia, with each jurisdiction's GVP for fisheries being calculated and applied accordingly. The calculation of the GVP for 2016–17, as determined under the authority granted by the Act and Regulations, provides a financial benchmark for funding allocations, with specific exclusions noted for certain fisheries not included in the totals for particular states. The Act allows for the extension of its application through subordinate instruments, such as the delegation of authority to the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division, to determine the GVP figures based on data from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Key Provisions

The Primary Industries Research and Development Act 1989, in conjunction with the Fisheries Research and Development Corporation Regulations 1991, lays out the framework for determining the Gross Value of Production (GVP) for each state and territory's fishing industry. The GVP for 2016–17 is determined under subsection 30A(2) of the Act, which mandates that the GVP figure should be based on the average of the GVP for the relevant year and the two preceding financial years. This calculation is specifically provided for in subsection 30A(5) of the Act and regulation 4E of the Regulations. The authority to determine these GVP figures is vested in the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division, as per the delegation approved on 22 July 2014. The obligations imposed by this legislation primarily involve the accurate estimation and determination of the GVP for each state and territory's fishing industry. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is responsible for estimating the GVP to the nearest thousand dollars for the financial years in question, which in this case are 2014–15, 2015–16, and 2016–17. The determination of the GVP for 2016–17, as per the Explanatory Statement, is based on these estimates, with any necessary adjustments made to ensure accuracy and relevance. For instance, the GVP for South Australia does not include input from the Commonwealth-managed southern bluefin tuna fishery. The determination of the GVP figures is crucial as it directly influences the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund, as stipulated in the Primary Industries Research and Development Act 1989. Failure to comply with the legislative requirements could result in inaccuracies in funding allocations, potentially impacting the research and development activities within the fisheries sector. There are no explicit offences, penalties, or civil/criminal consequences mentioned for breaches of these provisions; however, the accuracy and timely determination of GVP figures are critical to avoid any financial or operational disruptions. In summary, the legislation under consideration mandates the determination of the Gross Value of Production for each state and territory's fishing industry based on a three-year average, with specific figures provided for the financial year 2016–17. The authority to make these determinations is delegated to a specified official within the Department of Agriculture and Water Resources, and the estimates are sourced from ABARES. The obligations are primarily focused on ensuring accurate and timely estimation and determination of these figures to facilitate appropriate funding allocations to the Fisheries Research and Development Corporation.