Determination of the State/Territory Fisheries Gross Value of Production (GVP) FOR 2018–19

Overview

The Primary Industries Research and Development Act 1989 was enacted to foster research and development in Australia's primary industries, including fisheries. This Act aims to ensure sustainable growth and productivity within these sectors by providing funding based on the Gross Value of Production (GVP) of each state and territory's fishing industry. The policy objective is to facilitate the equitable distribution of research funding based on the economic contribution of the fishing industry. The determination of GVP figures for 2018-19 was made by Bridget McKenzie, the Minister for Agriculture, in accordance with subsection 30A(2) of the Act and Regulation 4E of the Fisheries Research and Development Corporation Regulations 1991. These figures were derived from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) estimates, which were averaged over the financial years 2016-17, 2017-18, and 2018-19. This determination ensures that funding allocations to the Fisheries Research and Development Corporation reflect the economic output of the respective state and territory fishing industries.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the determination of the Gross Value of Production (GVP) of the fishing industry for each Australian state and territory, which is crucial for funding allocations to the Fisheries Research and Development Corporation. This determination is made by the Minister for Agriculture under subsection 30A(2) and (3) of the Act, and Regulation 4E of the Fisheries Research and Development Corporation Regulations 1991. The GVP figures for 2018-19 are calculated as the average of the GVP figures for the financial years 2016-17, 2017-18, and 2018-19, as estimated by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Certain exclusions apply, such as the Commonwealth-managed southern bluefin tuna fishery not being included in the South Australia figures, and the farmed prawn sectors of New South Wales and Queensland not being included in their respective state GVP determinations, with those figures being included in the Commonwealth Fisheries GVP instead.

Key Provisions

The Primary Industries Research and Development Act 1989 (the Act) and the Fisheries Research and Development Corporation Regulations 1991 provide the framework for determining the Gross Value of Production (GVP) for state and territory fishing industries. Pursuant to these legislative instruments, the Minister for Agriculture has determined the GVP for the financial year 2018–19. Under subsection 30A(2) of the Act and Regulation 4E of the Regulations, the GVP is calculated as the average of the GVP for the relevant financial year and the two preceding financial years (subsections 30A(3) and 30A(5)). The GVP figures are determined based on the estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), rounded to the nearest thousand dollars. The obligations under the Act and the Regulations are primarily on the Minister for Agriculture, who is responsible for determining the GVP figures for each state and territory. This determination must be made based on the average of the GVP figures for the relevant financial year and the two preceding financial years, as calculated by ABARES. The Minister must also ensure that certain exclusions are considered, such as the exclusion of the Commonwealth-managed southern bluefin tuna fishery for South Australia and the exclusion of the farmed prawn sector for New South Wales and Queensland. These exclusions mean that the GVP figures for these sectors are not included in the state or territory figures but are instead included in the Commonwealth Fisheries GVP. Failure to comply with the requirements of the Act and the Regulations may result in civil or criminal consequences, although specific offences, penalties, or consequences are not detailed in the determination. The Act and Regulations set the framework for determining the GVP, and adherence to these provisions is necessary to ensure accurate funding allocations for fisheries research and development. The GVP figures determined by the Minister are critical for calculating the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund, as stipulated in subsection 30A(2) of the Act. The accurate and timely determination of these figures is essential to maintain the integrity of the funding mechanism for fisheries research and development across Australia.