EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 268
Issued by the Authority of the Minister for Primary Industries and Energy.
DRIED FRUITS LEVY ACT 1971
DRIED FRUITS LEVY REGULATIONS (AMENDMENT)
Section 5 of the Dried Fruits Levy Act 1971 (the Act) imposes a levy on dried fruits of a season received for packing.
Section 6 of the Act provides that:
(1) The rate of the levy shall not exceed
(a) in the case of dried vine fruits - $5.00 per tonne; or
(b) in the case of dried tree fruits - $30.00 per tonne.
(2) Subject to the last preceding sub-section, the regulations may fix an amount per tonne as the rate of the levy in respect of a specified kind of dried fruits.
(3) Before making any regulations for the purposes of the last preceding sub-section, the Governor-General shall take into consideration any relevant recommendation with respect to a rate of levy made to the Minister by the Dried Fruits Research Council (DFRC).
Section 8 of the Act provides that the Governor-General may make regulations for the purposes of section 6 of the Act.
The DFRC has presented a recommendation to the Minister that the rates of levy be fixed at $3.50 per tonne for dried vine fruits, $8.00 per tonne for dried tree fruits other than dried plums and $10.00 per tonne for dried plums for the 1988 and subsequent seasons. The proposed rates compare with the operative rates of $2.50 per tonne for dried vine fruits, $7.00 per tonne for dried tree fruits other than dried plums and $10.00 per tonne for dried plums. The Australian Dried Fruits Association (ADFA), the organisation representing dried fruits producers, has been consulted and supports the levy rates proposed.
The DFRC’s recommendation to increase the levies accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s gross value of production (GVP). The increases in levy rates represent an increase from 0.18% to 0.24% of the industry’s estimated GVP for 1988-89.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that dried fruits levy money be paid into the Dried Fruits Research Trust Fund and sub-section 9(1) of the Research Act provides that the DFRC may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the dried fruits industry.
The Commonwealth Government matches contributions by industry for research expenditure recommended by the DFRC and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1988-89 is $325,000. Increased funding to meet estimated Commonwealth matching obligations in 1988-89 resulting from the proposed increased levies was announced in May 1988 following the Industry Development Review.
Dried Fruits Levy Regulations (Amendment) to fix the rates of levy on dried vine fruits at $3.50 per tonne and dried tree fruits other than dried plums at $8.00 per tonne are to apply to fruits received for packing during the 1988 and subsequent seasons.