Overview

The Primary Industries Research and Development Act 1989 was enacted to facilitate the funding of research, development, and extension activities within Australia's primary industries, with a specific focus on enhancing productivity and sustainability. The Act empowers the establishment of the Fisheries Research and Development Corporation, which is tasked with funding research that supports the growth and sustainability of Australia's fishing industry. The legislation aims to ensure that the financial contributions to this corporation are proportionate to the industry's economic output, thereby aligning funding with the sector's needs. Pursuant to this Act, the Fisheries Research and Development Corporation Regulations 1991 were introduced to provide detailed governance and operational guidelines for the Corporation. These regulations include provisions for determining the Gross Value of Production (GVP) of the fishing industry, which is a critical metric for calculating the financial contributions to the Corporation from the Consolidated Revenue Fund. The policy objective of these legislative instruments is to foster research and development that enhances the efficiency and sustainability of Australia's fishing industry, ensuring its long-term viability and economic contribution.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the funding of research and development in Australia's primary industries, including the fishing industry. This legislation mandates that payments to the Fisheries Research and Development Corporation (FRDC) are calculated based on the Gross Value of Production (GVP) of the Australian fishing industry. The Act authorises the determination of the total GVP for the fishing industry, which in turn affects the funding allocation to the FRDC. The Fisheries Research and Development Corporation Regulations 1991 further regulate the operations and funding mechanisms of the FRDC, including how the GVP is used to calculate annual payments. The authority to determine the GVP is delegated to the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division. The Act applies to the entire fishing industry across Australia, regardless of whether the operations are managed by the Commonwealth, a state, or a territory. The determination of the GVP is based on estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) and involves averaging the GVP figures from the relevant year and the two preceding years. For the financial year 2015–16, the total GVP was determined to be $2,713,355,000, reflecting the economic output of the fishing industry during that period.

Key Provisions

The Primary Industries Research and Development Act 1989 (Act) and the Fisheries Research and Development Corporation Regulations 1991 (Regulations) provide the legislative framework for determining the Gross Value of Production (GVP) of the Australian fishing industry, which in turn dictates the amount of funding the Fisheries Research and Development Corporation (FRD Corporation) receives from the Consolidated Revenue Fund. Section 30A(2) of the Act mandates that the FRD Corporation's funding is to be based on the GVP of the fishing industry. Section 30A(5) of the Act and Regulation 4C further stipulate that the total GVP for a given financial year is to be the average of the GVP for that year and the two preceding financial years. This determination is carried out by the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division, as authorised by the instrument of delegation approved on 22 July 2014. The determination process involves calculating the GVP of the fishing industry for the relevant financial year and the two preceding years, then averaging these figures to arrive at the total GVP for the current year. In this case, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has estimated the GVP for the financial years 2013–14, 2014–15, and 2015–16. The GVP figures, rounded to the nearest thousand dollars, are $2,452,355,000 for 2013–14, $2,754,420,000 for 2014–15, and $2,933,289,000 for 2015–16. The average of these figures yields a total GVP of $2,713,355,000 for the 2015–16 financial year. The Act and Regulations impose certain obligations on the parties involved. The First Assistant Secretary is responsible for determining the GVP and making the determination publicly available. The ABARES, as part of the Department of Agriculture and Water Resources, must provide accurate and reliable estimates of the GVP for the fishing industry. The FRD Corporation must use the determined GVP to calculate its funding requirements from the Consolidated Revenue Fund. Additionally, all parties must comply with the legislative and regulatory requirements set out in the Act and Regulations. Breach of the requirements set out in the Act and Regulations can lead to civil or criminal consequences. While the specific penalties are not detailed in the determination, it is worth noting that the Act and Regulations generally provide for penalties for non-compliance with their provisions. These can include fines and, in some cases, criminal charges. The maximum penalties would depend on the specific provision breached and the circumstances of the breach. It is important for all parties to adhere to the legislative and regulatory requirements to avoid any potential legal repercussions.