Determination of the Total Fisheries Gross Value of Production (GVP) 2021–22

Overview

The Primary Industries Research and Development Act 1989 was enacted to address the need for funding research and development in the primary industries sector, including fisheries. The Act provides a framework for funding the Fisheries Research and Development Corporation, which supports research and development activities to improve productivity, sustainability, and economic performance of the Australian fishing industry. The policy objective of the Act is to ensure that the fishing industry has access to the necessary research and development to remain competitive and sustainable. Under subsection 30A(2) and (3) of the Act, the funding provided to the Corporation is based on the Gross Value of Production (GVP) of the fishing industry. The Fisheries Research and Development Corporation Regulations 1991 provide for the calculation of the GVP and the determination of the total GVP for the industry. The DETERMINATION OF THE TOTAL FISHERIES GROSS VALUE OF PRODUCTION (GVP) 2021–22 was made under the authority of the Act and the Regulations by the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division of the Department of Agriculture, Water and the Environment.

Scope and Application

The Primary Industries Research and Development Act 1989 and the Fisheries Research and Development Corporation Regulations 1991 apply to the fishing industry in Australia, which includes all parts of the industry managed by or on behalf of the Commonwealth, a state, or a territory. These Acts provide for the determination of the Gross Value of Production (GVP) for the Australian fishing industry, which is used to calculate the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund. The authority to determine the GVP 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. The GVP for the financial year 2021-22 has been determined to be $3,232,954,000 based on the average GVP for the relevant and two preceding financial years, as estimated by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The determination of the GVP can be extended or restricted through subordinate instruments made under the authority of the relevant Acts.

Key Provisions

Pursuant to subsection 30A(4) of the Primary Industries Research and Development Act 1989 and Regulation 4C of the Fisheries Research and Development Corporation Regulations 1991, the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division, Emma Campbell, has determined that the total Gross Value of Production (GVP) for the financial year 2021–22 is $3,232,954,000. This figure represents the total value of goods produced by the fishing industry, managed by or on behalf of the Commonwealth, a state, or a territory. The calculation of this figure is based on the average GVP of the three most recent financial years, as estimated by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The Act and the Regulations impose certain obligations on the parties involved, particularly on the Fisheries Research and Development Corporation, which must use the GVP to determine the amount it receives from the Consolidated Revenue Fund. The determination of the GVP is an important step in this process, as it provides the basis for calculating the Corporation's funding. The First Assistant Secretary is responsible for making this determination, and has done so based on the estimates provided by ABARES. The Regulations also require that the GVP be determined on an annual basis, and that the process for doing so be transparent and based on reliable data. Failure to comply with the requirements of the Act and the Regulations may result in civil or criminal consequences, depending on the nature and severity of the breach. For example, providing false or misleading information in the calculation of the GVP could result in criminal charges, while failure to provide accurate data to ABARES could result in civil penalties. The maximum penalties for breaches of the Act and the Regulations vary depending on the specific offence, but can include fines of up to $22,000 for individuals and $110,000 for bodies corporate. In addition, courts may order the repayment of any funds received in breach of the Act or the Regulations, and may also impose other penalties such as disqualification from holding certain positions or engaging in certain activities.