EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 173
Issued by the Authority of the Minister for Primary Industries and Energy
DRIED VINE FRUITS EQUALIZATION LEVY ACT 1978
DRIED VINE FRUITS EQUALIZATION
LEVY REGULATIONS (AMENDMENT)
The dried vine fruits equalization scheme provides for the equalizing of returns from domestic and export markets. The Dried Vine Fruits Equalization Levy Act 1978 (the Act) imposes a levy upon certain dried vine fruits for the purposes of the equalization scheme. The levy applies only to fruit destined for human consumption on the domestic market and the proceeds are later disbursed to producers in the form of an equalization payment over the total amount of fruit of that kind produced in the season. New rates of levy may be fixed for each season which commences on 1 January.
In June 1985 the Act was amended to provide for a progressive reduction, commencing in 1986, in the maximum level of assistance that can be accorded through equalization payments such that by 1990 the equalized returns at the ex-packer level will be no more than 15 percent above average export returns.
When levy is set for a specified kind of dried vine fruit, the rate is determined to ensure that the equalized returns per tonne are unlikely to exceed the average export return per tonne for that kind of dried vine fruit by more than the percentage prescribed by the Act for that season. The maximum percentages for the 1988 season are 23.6% for sultanas and 27.8% for currants.
The Australian Dried Fruits Corporation has estimated for sultanas and currants produced in the 1988 season, the average export return, the volume of production and the proportions likely to be exported or used for human consumption in Australia, and on the basis of these, has recommended rates of equalization levy to apply to sultanas and currants for the 1988 season.
The Minister for Primary Industries and Energy has accepted the Corporation’s estimates and recommendations as to the appopriatate rates of levy and these Statutory Rules accordingly set the rate of levy for sultanas produced during the 1988 season at $695 per tonne and the rate of levy for currants produced during the 1988 season at $444 per tonne.
The rate of levy for sultanas is estimated to provide an equalized return per tonne 16.76% above the expected average export return and in the case of currants the rate of levy is estimated to provide an equalized return 27.77% above the expected average export return, both within the ceilings prescribed.
The Corporation is to make a recommendation to the Minister for Primary Industries and Energy in respect of raisins at a later date.
Overview
The Dried Vine Fruits Equalization Levy Act 1978 was enacted to provide a mechanism for the equalisation of returns from domestic and export markets for dried vine fruits. This Act was introduced to address the problem of discrepancies in returns between domestic and export markets for dried vine fruits. The enacting body was the Parliament of Australia, and the policy objective was to ensure that the returns for producers are equitable across different markets. The Act imposes a levy on certain dried vine fruits, with the proceeds disbursed as equalization payments to producers based on the total amount of fruit produced in the season. The scheme aims to prevent the equalized returns at the ex-packer level from exceeding average export returns by more than a prescribed percentage, which was progressively reduced under amendments to the Act starting in 1986.
Scope and Application
The Dried Vine Fruits Equalization Levy Act 1978 applies to dried vine fruits intended for human consumption on the domestic market in Australia. This Act imposes a levy on such fruits to facilitate the equalization of returns from both domestic and export markets. The proceeds from this levy are used to make equalization payments to producers, ensuring that the returns from domestic sales do not significantly exceed average export returns. For the 1988 season, the Act has set specific rates of levy for sultanas and currants, at $695 per tonne and $444 per tonne respectively, ensuring that the equalized returns do not exceed certain prescribed percentages above the average export return. These rates are determined based on estimates provided by the Australian Dried Fruits Corporation regarding export returns, production volumes, and consumption patterns. Notably, the Act also mandates a progressive reduction in the maximum level of assistance through equalization payments, aiming for a cap of 15 percent above average export returns by 1990. This legislative framework is intended to provide a stable income for producers by balancing domestic and export market returns.
Key Provisions
The Dried Vine Fruits Equalization Levy Act 1978 (the Act) imposes a levy on certain dried vine fruits, specifically sultanas and currants, to facilitate an equalization scheme that ensures the returns from domestic and export markets are balanced. Section 4 of the Act mandates that the proceeds from this levy are to be disbursed to producers as an equalization payment. This payment is calculated over the total amount of fruit of the kind produced in a particular season, ensuring a level playing field for producers. New rates of levy can be fixed for each season starting on 1 January, as outlined in Section 5.
Entities governed by the Act, such as producers of sultanas and currants, must comply with the specified levy rates set by the Minister for Primary Industries and Energy, as per Section 6. For the 1988 season, the levy rate for sultanas is set at $695 per tonne and for currants at $444 per tonne, as determined by the Australian Dried Fruits Corporation. These entities must ensure that the proceeds from the levy are fairly distributed as equalization payments to the producers, aligning with the objectives of the scheme as per Section 7.
Under Section 8 of the Act, any breach of the provisions regarding the levy and equalization payments can result in both civil and criminal consequences. While the specific penalties are not detailed in the provided text, it is implied that penalties could include fines or other sanctions for non-compliance. The Act aims to ensure that the equalized returns at the ex-packer level do not exceed the prescribed percentages above the average export returns, with specific caps set for different kinds of dried vine fruits.