Determination of the Total Fisheries Gross Value of Production (GVP) 2017–18

Overview

The Primary Industries Research and Development Act 1989 was enacted to support the research, development and extension of primary industries in Australia, with a focus on enhancing productivity and sustainability. This Act provides the legal framework for the establishment of the Fisheries Research and Development Corporation, which is tasked with investing in research and development activities to improve the efficiency and effectiveness of the fishing industry. One of the key provisions of the Act is the determination of the Gross Value of Production (GVP) for the fishing industry, which is used to calculate funding allocations from the Consolidated Revenue Fund. The Fisheries Research and Development Corporation Regulations 1991 further detail the processes for calculating the GVP, including the requirement to use the average GVP of the relevant and two preceding financial years. The determination of the GVP for the 2017-18 financial year, announced by the Minister for Agriculture and Water Resources, was based on these regulations and the 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 of research and development in Australia's primary industries, including fisheries, and is a Commonwealth Act with jurisdiction across the entire nation. The Fisheries Research and Development Corporation Regulations 1991 govern the administration and funding mechanisms of the Fisheries Research and Development Corporation, which is established under the Act. The Determination of the Total Fisheries Gross Value of Production (GVP) 2017–18 applies to the calculation and use of the GVP of the Australian fishing industry for the specified financial year. The GVP is determined by the Minister for Agriculture and Water Resources based on estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences, and it is used to calculate the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund. The Act and its regulations do not explicitly state exclusions or thresholds, but the application of GVP to funding allocation may implicitly exclude non-producing activities or entities not engaged in the production of goods from the fishing industry.

Key Provisions

The main sections of the legislation relevant to this determination include subsection 30A(2) of the Primary Industries Research and Development Act 1989, which stipulates that the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund is based on the Gross Value of Production (GVP) of the Australian fishing industry. Furthermore, subsection 30A(5) of the Act and Regulation 4C of the Fisheries Research and Development Corporation Regulations 1991 require that the total GVP of the fishing industry for a given year be calculated as the average of the GVP for that year and the two preceding financial years. This determination, made by the Minister for Agriculture and Water Resources, establishes the total GVP for the financial year 2017–18 as $3,028,112,000, following an average of the GVPs for 2015–16, 2016–17, and 2017–18, as estimated by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The Act imposes specific obligations on the relevant parties, requiring the Minister to determine the total GVP of the Australian fishing industry annually based on the average of the current year's GVP and the two preceding financial years' GVPs. This calculation must be performed in accordance with the estimates provided by ABARES and the provisions outlined in the Act and the Regulations. The determination must be made by the Minister, as evidenced by the signature and date on the document, ensuring transparency and accountability in the process. The Fisheries Research and Development Corporation must then use this determined GVP to calculate the funds it is to receive from the Consolidated Revenue Fund. The Act does not explicitly outline specific offences, penalties, or consequences for non-compliance in this determination. However, the failure to comply with the requirements set forth by the Act and the Regulations could potentially result in legal or administrative repercussions. These could include challenges to the validity of the GVP determination, affecting the allocation of funds to the Fisheries Research and Development Corporation. While the Act does not specify maximum penalties, breaches of legislative requirements can generally lead to legal actions or reviews to ensure adherence to the statutory obligations.