Overview

The Primary Industries Research and Development Act 1989 was enacted to facilitate and promote research, development, and extension activities in the primary industries sector, ensuring sustainable and efficient growth in the sector. This Act was brought into force by the Parliament of the Commonwealth of Australia with the aim of addressing gaps in the funding and coordination of research and development efforts across the primary industries. The Fisheries Research and Development Corporation Regulations 1991 were also introduced to complement the Act by specifically regulating the activities of the Fisheries Research and Development Corporation. Under these regulations, the determination of the Gross Value of Production (GVP) for the fishing industry is crucial as it underpins the funding formula for the Corporation. The policy objective is to ensure that the Corporation’s funding is aligned with the economic output of the industry, thereby supporting relevant research and development activities effectively.

Scope and Application

The Primary Industries Research and Development Act 1989, as amended, applies to the fishing industry within Australia, encompassing entities and individuals engaged in fishing activities, whether managed by or on behalf of the Commonwealth, a state, or a territory. The Act mandates the funding of the Fisheries Research and Development Corporation, which is contingent upon the Gross Value of Production (GVP) of the fishing industry. The Act’s jurisdiction is nationwide, covering all parts of the fishing industry across Australia. The authority to determine the GVP for the industry 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. This determination is based on the average GVP of the relevant financial year and the two preceding years, as stipulated in the Fisheries Research and Development Corporation Regulations 1991. The Act does not specify any exclusions or exemptions, nor does it mention any thresholds that need to be met for its application. However, the application of the Act can be extended or restricted through subordinate instruments such as the Fisheries Research and Development Corporation Regulations 1991.

Key Provisions

The Primary Industries Research and Development Act 1989, along with the Fisheries Research and Development Corporation Regulations 1991, provides a framework for the funding of fisheries research and development. Section 30A(2) and (3) of the Act establish that the funding provided to the Fisheries Research and Development Corporation is based on the Gross Value of Production (GVP) of the Australian fishing industry. This funding mechanism ensures that the corporation has a financial basis tied to the economic output of the industry it supports. The Act also mandates, through section 30A(4) and regulation 4C, that the total GVP for any given financial year is calculated as the average GVP of that year and the two preceding years. This averaging method is intended to smooth out any short-term fluctuations in the industry's economic output. The obligations imposed by the Act and Regulations on the relevant parties, particularly the Fisheries Research and Development Corporation, are significant. The Corporation must ensure that it is appropriately funded based on the GVP as determined by the authorised officer. This means that the Corporation must engage with the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) to obtain accurate estimates of the GVP for the required years. Furthermore, the Act delegates the authority to determine the GVP to the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division of the Department of Agriculture, Water and the Environment. This officer must review the estimates provided by ABARES and make the final determination, as demonstrated by the recent determination of the GVP for the financial year 2020–21 at $3,122,713,000. Failure to comply with the provisions of the Act and Regulations could result in various consequences, although the specific legal repercussions are not outlined in the provided text. Typically, non-compliance with legislative requirements can lead to civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties may include fines, restitution, or other corrective measures, while criminal penalties could involve imprisonment or substantial fines for individuals or entities found guilty of serious breaches. Although the exact penalties are not detailed here, they are likely to be significant given the importance of the funding mechanism to the sustainability and development of the fishing industry.