Determination of the Total Fisheries Gross Value of Production (GVP) 2022–23

Overview

The Primary Industries Research and Development Act 1989 was enacted to facilitate investment in research, development, and extension activities in primary industries, including fisheries, by establishing mechanisms for funding through the Fisheries Research and Development Corporation. This Act addresses the need for coordinated and sustainable research funding to improve productivity and competitiveness in Australia's primary industries. The Fisheries Research and Development Corporation Regulations 1991 complement the Act by providing detailed provisions for the governance and operations of the Corporation, including the calculation and application of the Gross Value of Production (GVP) for the fishing industry. The problem or gap addressed by this legislation is the need for a reliable and consistent funding model for fisheries research and development that is responsive to industry needs and economic conditions. Pursuant to the authority granted under this Act and the Regulations, the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division of the Department of Agriculture, Fisheries and Forestry has determined the total GVP for the Australian fishing industry for the financial year 2022–23, which will be used to calculate the Corporation's funding allocation.

Scope and Application

The Primary Industries Research and Development Act 1989 applies to the fisheries industry in Australia, including all entities and persons involved in fishing activities, regardless of whether they are managed by or on behalf of the Commonwealth, a state, or a territory. Under this Act, the Gross Value of Production (GVP) of the fishing industry is a crucial metric for determining the amount paid to the Fisheries Research and Development Corporation from the Consolidated Revenue Fund. The Act is of national reach, applying throughout the entire Commonwealth of Australia. The Fisheries Research and Development Corporation Regulations 1991 further elaborate on the mechanisms for determining the GVP, including the requirement to average the GVP over the current and two preceding financial years. The determination of the GVP for the financial year 2022–23 was conducted by Emma Cully, the First Assistant Secretary of the AgVet Chemicals, Fisheries, Forestry and Engagement Division, acting under a delegation approved by the Minister for Agriculture on 1 February 2020. This determination, which is based on estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences, sets the total GVP for the Australian fishing industry at $3,315,983,000 for 2022–23.

Key Provisions

The legislation in question, the Primary Industries Research and Development Act 1989, sets out the framework for funding the Fisheries Research and Development Corporation (FRDC). Section 30A(2) and (3) of the Act stipulate that the payment to the FRDC from the Consolidated Revenue Fund is to be based on the Gross Value of Production (GVP) of the Australian fishing industry. This means that the financial support provided to the FRDC is directly linked to the economic output of the fishing sector, ensuring that funding is proportionate to industry contributions. Section 30A(4) further provides that the total GVP for any given financial year is determined as the average of the GVP for that year and the two preceding years. In addition to the Act, the Fisheries Research and Development Corporation Regulations 1991 complement these provisions, with Regulation 4C echoing the requirement to calculate the GVP as an average of the current year and the two preceding years. 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, Fisheries and Forestry. This delegation ensures that a qualified official, authorised by the Minister for Agriculture, makes the determination. In this instance, Emma Cully, the First Assistant Secretary, determined the total GVP for the financial year 2022–23 to be $3,315,983,000, based on estimates provided by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The obligations imposed by the Act and Regulations on the relevant parties include the provision of accurate and timely data on the GVP of the fishing industry. The ABARES must estimate the GVP to the nearest thousand dollars for the financial years in question, which are then used to calculate the average GVP as per the legislative requirements. The First Assistant Secretary, upon receiving the estimates, must make the determination of the total GVP and issue it formally, as done on 5 July 2023. This determination is crucial for the allocation of funds to the FRDC, ensuring that the research and development activities are adequately financed. There are no explicit offences or penalties detailed within the text regarding the determination of the GVP. However, the importance of the accuracy and timeliness of the GVP determination cannot be overstated, as it directly affects the funding available to the FRDC. Any failure to comply with the legislative requirements could potentially lead to underfunding of critical research and development initiatives in the fishing industry. The lack of specific penalties in the text suggests that the primary consequence of non-compliance would be the inadequacy of funding for the FRDC, thereby impacting the sector's ability to innovate and sustain its growth.