Determination of the State/Territory Fisheries Gross Value of Production (GVP) for 2021–22

Overview

The Primary Industries Research and Development Act 1989 was enacted to establish a mechanism for funding research and development activities in the primary industries sector, including fisheries, to address gaps in knowledge and technology that hinder the sector's productivity and competitiveness. The policy objective of this Act, as outlined in its explanatory statement, is to enhance the efficiency, sustainability, and economic viability of Australia's primary industries through targeted research and development initiatives. Pursuant to this Act, the Fisheries Research and Development Corporation Regulations 1991 were also established to govern the operations of the Fisheries Research and Development Corporation, ensuring that funding is allocated based on the Gross Value of Production (GVP) of the fishing industry. This regulatory framework aims to provide a stable and predictable source of funding for fisheries research and development, thereby supporting the growth and innovation within the sector. The determination of the state or territory fisheries GVP for the financial year 2021–22, as outlined in the determination, is based on the average GVP of the relevant and the two preceding financial years, as mandated by the Act and Regulations, and reflects the latest estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the funding and regulation of research and development activities in Australia's primary industries, including fisheries. Specifically, this Act mandates the funding of the Fisheries Research and Development Corporation (FRDC) based on the Gross Value of Production (GVP) of the fishing industry in each state and territory. This Act therefore applies to entities involved in the fishing industry across Australia, including state and territory governments, fishing businesses, and industry associations. The GVP figures, which are determined by the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division, are used to calculate the funding allocation for the FRDC. The geographic reach of this legislation is national, applying to all states and territories in Australia. However, there are exclusions: the GVP figures for New South Wales and Queensland do not include their respective farmed prawn sectors, while the figure for South Australia does not account for the Commonwealth-managed southern bluefin tuna fishery. The determination of these figures is made pursuant to the Fisheries Research and Development Corporation Regulations 1991 and is based on estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). This legislative framework thus provides a structured approach to funding fisheries research and development in alignment with the economic contribution of the fishing industry to each jurisdiction.

Key Provisions

Pursuant to subsection 30A(4) of the Primary Industries Research and Development Act 1989 and Regulation 4E of the Fisheries Research and Development Corporation Regulations 1991, the Gross Value of Production (GVP) for the financial year 2021-22 for the fishing industries of the states and territories is determined by the First Assistant Secretary, AgVet Chemicals, Fisheries, Forestry and Engagement Division. The amounts for each state and territory are set out in the Schedule to the Determination. This determination process is based on the average GVP of the relevant financial year and the two preceding financial years, as calculated by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The Primary Industries Research and Development Act 1989 mandates that the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund should be proportionate to the GVP of each state or territory's fishing industry. This allocation is to be based on the GVP figures for each state and territory. Additionally, the Fisheries Research and Development Corporation Regulations 1991 stipulate that the GVP figures for each state and territory are to be the average of the GVP for the relevant and the two preceding financial years. The authority to determine these GVP figures has been delegated to the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division of the Department of Agriculture, Water and the Environment. There are no direct offences, penalties, or civil/criminal consequences outlined in the Primary Industries Research and Development Act 1989 or the Fisheries Research and Development Corporation Regulations 1991 regarding the determination of the GVP figures. However, the accuracy and integrity of the GVP determinations are critical for the equitable distribution of funds to the Fisheries Research and Development Corporation. Miscalculation or misreporting of GVP figures could potentially lead to improper allocation of funds and may be subject to review or correction by the relevant authorities. The determination process is designed to ensure that the GVP figures are based on accurate and reliable data provided by ABARES, thereby maintaining the integrity of the funding mechanism.