Determination of the Total Fisheries Gross Value of Production (GVP) 2016-17

Overview

The Primary Industries Research and Development Act 1989 was enacted to facilitate research and development in primary industries, including fisheries, to ensure the sustainable growth and productivity of these sectors. The Act provides a legislative framework for the funding of research and development activities through the Fisheries Research and Development Corporation. This legislation was introduced to address the need for structured financial support for research and development in Australia's primary industries. The determination of the total Gross Value of Production (GVP) for the fishing industry, as specified in the Fisheries Research and Development Corporation Regulations 1991, is a critical component of this framework, as it underpins the funding allocation from the Consolidated Revenue Fund. The policy objective is to ensure that research and development activities are adequately funded based on the economic contribution of the fishing industry. The authority to determine the GVP for the Australian fishing industry has been delegated to the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division, who is responsible for ensuring the accuracy and reliability of these estimates.

Scope and Application

The Primary Industries Research and Development Act 1989, along with the Fisheries Research and Development Corporation Regulations 1991, applies to the Australian fishing industry, encompassing all parts of the industry managed by or on behalf of the Commonwealth, a state, or a territory. The Act and Regulations are instrumental in determining the Gross Value of Production (GVP) for the Australian fishing industry, which in turn influences the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund. The authority to determine the GVP is delegated to the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division within the Department of Agriculture and Water Resources, as seen in the recent determination for the 2016–17 financial year. The geographic reach of these legislative instruments is national, affecting all fishing activities across Australia. The Act and Regulations do not explicitly state exclusions or exemptions, but their application is contingent on the nature of the fishing activities and the involvement of the relevant entities within the industry. The application of these instruments may be extended or restricted through subordinate instruments, which allows for more detailed regulations and operational guidelines specific to the fishing industry's needs.

Key Provisions

The Primary Industries Research and Development Act 1989, in conjunction with the Fisheries Research and Development Corporation Regulations 1991, establishes the framework for determining the Gross Value of Production (GVP) of the Australian fishing industry, which is critical for funding allocations to the Fisheries Research and Development Corporation (FRDC) (subsections 30A(2), (3) and (5)). Specifically, subsection 30A(2) mandates that the funding to the FRDC is based on the GVP of the fishing industry, while subsection 30A(5) and regulation 4C specify that the total GVP for any given year is the average of the GVP for that year and the two preceding years. The determination of this figure for the financial year 2016-17 has been delegated to the First Assistant Secretary of the Sustainable Agriculture, Fisheries and Forestry Division. The Act and the accompanying regulations impose certain obligations on the relevant parties, particularly on the First Assistant Secretary, who is tasked with determining the GVP for the fishing industry. This determination is to be made using the estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), rounded to the nearest thousand dollars. For the financial year 2016-17, the GVP was determined by averaging the GVP estimates for the years 2014-15, 2015-16, and 2016-17, resulting in a total GVP of $2,900,719,000. The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches related to the determination of the GVP. However, it is implicit that any inaccuracies or non-compliance in the determination process could affect the financial allocations to the FRDC, potentially impacting research and development initiatives within the fishing industry. The determination process itself, being a formal administrative act, would be subject to review and correction if found to be erroneous, with appropriate measures taken to rectify any discrepancies.