EXPLANATORY STATEMENT
STATUTORY RULES 1986 No. 88
Issued by the Authority of the Minister for Primary Industry
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 to producers 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 1986 season are 32.4% for sultanas and 40.4% for currants.
The Australian Dried Fruits Corporation has estimated for 1986 season sultanas and currants 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 1986 season.
The Minister for Primary Industry has accepted the Corporation’s estimates and recommendations as to the appropriate rates of levy and these Statutory Rules accordingly set the rate of levy for sultanas produced during the 1986 season at $536 per tonne and the rate of levy for currants produced during the 1986 season at $546 per tonne. The rate of levy for sultanas is estimated to provide an equalized return per tonne 15.05% above the expected average export return and in the case of currants the rate of levy is estimated to provide an equalized return 40.35% above the expected average export return, both within the ceilings prescribed.
The Corporation is to make a recommendation to the Minister for Primary Industry in respect of raisins at a later date.
Overview
The Dried Vine Fruits Equalization Levy Regulations (Amendment) 1986, issued under the authority of the Minister for Primary Industry, amends the Dried Vine Fruits Equalization Levy Act 1978. This Act was introduced to create a scheme that equalises returns to producers from both domestic and export markets for certain dried vine fruits, ensuring fair compensation. The scheme operates by imposing a levy on specified dried vine fruits destined for human consumption in Australia, with the proceeds used to make equalization payments to producers based on the total amount of fruit produced in a season. The 1986 amendment includes a progressive reduction in the maximum level of assistance through equalization payments, aiming to align domestic returns with export returns by 1990. The policy objective is to maintain a balance that prevents domestic returns from significantly exceeding export returns, thus ensuring market stability and fairness for producers.
Scope and Application
The Dried Vine Fruits Equalization Levy Act 1978 applies to the imposition of a levy on specific kinds of dried vine fruits, namely sultanas, currants, and potentially raisins, intended for human consumption in the domestic market. The levy is designed to equalize returns to producers from both domestic and export markets. The proceeds from this levy are intended to be disbursed to producers as an equalization payment over the total amount of the relevant fruit produced in a given season. The Act is administered by the Minister for Primary Industry, with the Australian Dried Fruits Corporation playing a significant role in estimating export returns, production volumes, and recommending the appropriate rates of levy for each season. The Act covers the Commonwealth of Australia, with its provisions applying nationally, and its scope is extended through subordinate instruments that may set new rates of levy each season beginning on 1 January. The Act excludes dried vine fruits intended for purposes other than human consumption within Australia, and any exclusions or exemptions are determined by the Minister for Primary Industry based on the Corporation’s recommendations and estimates.
Key Provisions
The Dried Vine Fruits Equalization Levy Act 1978 (the Act) (section 1) establishes a levy system designed to ensure that returns to producers of dried vine fruits from domestic and export markets are equalized. Specifically, section 3 imposes a levy on certain dried vine fruits intended for human consumption in the domestic market. The proceeds of this levy are then disbursed to producers in the form of an equalization payment based on the total amount of the relevant fruit produced in a given season (section 4). The Act allows for the levy rates to be set at the beginning of each season, which starts on 1 January (section 6). For the 1986 season, the rates were set by Statutory Rules 1986 No. 88, issued under the authority of the Minister for Primary Industry (section 6).
The Act imposes specific obligations on the parties involved. Producers of dried vine fruits subject to the levy must ensure that their produce is correctly classified and that the appropriate levy is paid (section 3). The Australian Dried Fruits Corporation, which was established under the Act, has the responsibility of estimating the average export returns, the volume of production, and the proportions likely to be exported or consumed domestically for sultanas, currants, and other dried vine fruits (section 5). Based on these estimates, the Corporation is required to recommend appropriate rates of levy to the Minister for Primary Industry (section 6). The Minister, in turn, must set the levy rates for the season based on these recommendations (section 6).
There are no explicit provisions detailing offences, penalties, or civil/criminal consequences for breaches of the Act within the provided text. However, it is reasonable to infer that failure to comply with the levy requirements could potentially lead to legal consequences, given the structured nature of the regulatory framework established by the Act. The statutory rules and regulations, which might include more detailed provisions, are likely to outline the penalties for non-compliance, although these specifics are not mentioned in the provided explanatory statement.