EXPLANATORY STATEMENT

Issued by the authority of the Minister for Agriculture, Fisheries and Forestry

Export Control Act 1982

Export Control (Fees) Amendment Orders 2005 (No. 3)

Sub-section 25(1) of the Export Control Act 1982 (“the Act”) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for the carrying out or giving effect to the Act.

Paragraph 25(2)(d) of the Act allows regulations to be made for the imposition of fees in connection with the performance of services by authorised officers and the remission of fees so imposed. Paragraph 25(2)(g) of the Act provides that the Governor-General may make regulations empowering the Minister to make orders, not inconsistent with the regulations, with respect to any matter for or in relation to which provision may be made by the regulations.

Regulation 3 of the Export Control (Orders) Regulations 1982 provides that the Minister may, by instrument in writing, make orders, not inconsistent with regulations made under the Act, with respect to any matter for or in relation to which provision may be made by regulations made under the Act.

The Export Control (Fees) Orders 2001 (“the Principal Orders”) impose fees in connection with the performance of services by authorised officers.

The purpose of the Export Control (Fees) Amendment Orders 2005 (No. 3) (“the Amendment Orders”) is to make certain minor technical amendments as a result of misdescriptions in an earlier amendment and to make changes to the fees for certain activities undertaken by the Meat Export Program (“the MEP”) of the Australian Quarantine and Inspection Service (“AQIS”).  The MEP administers the regulatory scheme under the Act for the export of meat, game, poultry and rabbit meat.  In particular, the Amendment Orders increase fees for inspections of meat, game, poultry and rabbit meat, increase the fees payable for the issue of a document in relation to the export of meat, game, poultry and rabbit meat and create a new fee establishing an hourly rate for an officer of the Verification Unit (“the VU”).

The fees relating to the activities of the MEP were last reviewed in 2000.  Overall expenditure for the MEP has increased by approximately 17.75% between the financial years 2000/2001 and 2005/2006.  The increase in expenditure by the MEP is primarily attributed to salary increases set by various Meat Inspector and Departmental Certified Agreements (CA) and Australian Workplace Agreements (AWA).

The VU is a new unit within the Australian Quarantine and Inspection Service (“AQIS”).  It has been established to verify that the regulatory scheme for the export of meat is effective in underpinning the integrity of the certification that AQIS provides to importing countries.  The VU recommends improvements to the system based on internationally recognized quality assurance concepts.  The work of the authorized officers in the VU complements other audits by authorized officers which focus on whether an individual export establishment complies with the system.

Consultation on the fee changes in the Amendment Orders has occurred with the peak bodies representing the industries affected by the changes. In particular, consultation has occurred with the Export Meat Industry Advisory Council (“EMIAC”) and the Export Wild Game Meat Industry Consultative Committee (“EWGMICC”).

EMIAC is the principal advisory forum for AQIS and the meat export industry to consult on all issues arising from the management of Australia’s export strategies for meat and meat products.

The membership of EMIAC comprises representatives from key industry sectors for the export of meat and meat products including:

• Australian Meat Council
• National Meat Association of Australia
• Food Science Australia
• Australian Chamber of Shipping
• Refrigerated Warehouse and Transport Association of Australia
• Meat and Livestock Australia
• Australian Meat Technology
• Australian Food Council Processed Meat Industry Forum

Specific consultation on the changes to the fees has been undertaken through the EMIAC Charging Sub-Committee.  The sub-committee findings have been presented to the EMIAC and AQIS has obtained endorsement and support for the proposed increase in fees amendments to the charging structure from its members.

The EWGMICC is the advisory forum for AQIS and the game meat export industry to consult on all issues arising from the management of Australia’s export strategies for game meat products.  The membership of the EWGMICC consists of the Kangaroo Industry Association of Australia and the Australian Game Meat Producers Association.

In response to EWGMICC concerns about the fee increases, the increase in the daily, weekly, four-weekly and annual rates for an authorized officer who is a veterinarian is occurring in two stages to minimise the impact on the industry.  The first stage of the increase occurs on 11 November 2005 and the second stage of the increase occurs on 1 July 2006.    

Details of Amendment Orders are as follows:

Order 1 provides that the name of the Amendment Orders is the Export Control (Fees) Amendment Orders 2005 (No. 3).

Order 2 provides that the Amendment Orders commence on the day after they are registered.

Order 3 provides that Schedule 1 amends the Principal Orders.

Schedule 1 - Amendments

Item 1 amends suborder 4(1) of the Principal Orders by replacing a reference to the repealed Grain, Plants and Plant Products Orders with a reference to the current set of orders, that is, the Export Control (Plants and Plant Products) Orders 2005.  This item repeats (with the necessary correction) an amendment that was proposed to be made by item 2 of Schedule 1 of the Export Control (Fees) Amendment Orders 2005 (No. 1).  The proposed amendment did not take effect, however, because it misdescribed the Grain, Plants and Plant Products Orders.

Item 2 amends suborder 4(1) of the Principal Orders by inserting a definition for the expression “Verification Unit”.  This expression is used in the amendment described in item 9 below.  

Item 3 amends the tables 1-6 in order 6 of the Principal Orders to increase the amounts specified in those tables.  The shift loading, overtime loading and minimum charges for overtime if services are provided non-continuously with ordinary duty for meat inspectors in tables 1, 3 and 5 respectively are increased by approximately 6% to reflect the increased costs of delivering these services.  The increase in fees for meat inspectors is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000.  The shift loading, overtime loading and minimum charges for overtime if services are provided non-continuously with ordinary duty for veterinary officers in tables 2, 4 and 6 respectively are increased by approximately 14% to reflect the increased costs of delivering these services.  The increase in fees for veterinary officers is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000.

Item 4 amends the heading to order 39 of the Principal Orders.  The item repeats (with the necessary correction) an amendment that was proposed to be made by item 27 of Schedule 1 of the Export Control (Fees) Amendment Orders 2005 (No. 1).  The proposed amendment did not take effect, however, because it misdescribed the part of the heading to be replaced.

Item 5 amends item 1 of Schedule 1 of the Principal Orders. The item increases the hourly rate for the inspection of meat, game, poultry and rabbit meat by an authorized officer who is not a veterinarian. The increase in this rate is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000.

Item 6 amends item 1 of Schedule 1 of the Principal Orders. The item increases the hourly rate for an authorized officer who is a veterinarian and who is an employee of the Australian Public Service (“the APS”) under the Public Service Act 1999 (“the PS Act”).  The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution.

Item 7 amends item 1 of Schedule 1 of the Principal Orders. It increases the hourly rate for an authorized officer who is a veterinarian and who is not an APS employee.   The increase in this rate is due to an increase in the cost to AQIS from Veterinarians providing their services under contract.

Item 8 amends item 1 of Schedule 1 of the Principal Orders. It replaces two descriptions which are now out-of-date and the accompanying rates with a new description and rate.  The item increases the hourly rate for an Area Technical Manager for services performed at an establishment from $120 to $158.  This increase has occurred due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000.

Item 9 amends item 1 of Schedule 1 of the Principal Orders by inserting a new hourly rate for the services of an authorized officer who is a member of the VU.  The rate is based on total expenditure for authorized officers in the VU undertaking audits assessed against expected activity in forward years.  This rate is higher than the hourly rate for the Area Technical Managers (see item 8 above) because audits are conducted over two days and attract additional travel costs.

Item 10 amends item 2 of Schedule 1 of the Principal Orders. The item increases the daily rate for an authorized officer who is not a veterinarian from $328.25 to $363.00.  The increase in this rate is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000.

Item 11 amends item 2 of Schedule 1 of the Principal Orders increases the daily rate for an authorized officer who is a veterinarian from $439.20 to $535.00 on and from the 11 November 2005 and to $579.00 on and from 1 July 2006.   The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution.  The increase in these rates is occurring in two stages in response to concerns by the game meat industry about the size of the increase.

Item 12 amends item 2 of Schedule 1 of the Principal Orders. The item increases the daily rate for an Area Technical Manager for services performed at an establishment from $780.00 to $1,028.00.  The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution. 

Item 13 amends item 2 of Schedule 1 of the Principal Orders increases the weekly rate for an authorized officer who is not a veterinarian from $1,313.00 to $1,453.00.  The increase in this rate is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000. 

Item 14 amends item 2 of Schedule 1 of the Principal Orders increases the weekly rate for an authorized officer who is a veterinarian from $1757.40 to $2, 141.40 on and from 11 November 2005 and to $2,317.00 on and from 1 July 2006.  The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution.

Item 15 amends item 2 of Schedule 1 of the Principal Orders.  The item increases the four-weekly rate for an authorized officer who is not a veterinarian from $3,939.00 to $4,361.00.  The increase in this rate is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000. 

Item 16 amends item 2 of Schedule 1 of the Principal Orders. The item increases the four-weekly rate for an authorized officer who is a veterinarian from $5,258.40 to $6,424 on and from 11 November 2005 and to $6,954.00 on and from 1 July 2006.  The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution..

Item 17 amends item 2 of Schedule 1 of the Principal Orders. The item increases the annual rate for an authorized officer who is not a veterinarian from $46,611.50 to $51,589.00.  The increase in this rate is due to salary increases delivered under the various Meat Inspector Certified Agreements since the last review of fees in 2000.

Item 18 amends item 2 of Schedule 1 of the Principal Orders. The item increases the annual rate for an authorized officer who is a veterinarian from $63,630.00 to $76,000 on and from 11 November 2005 and to $82,260.00 on and from 1 July 2006.  The increase in this rate is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000 and a more consistent application of the Government’s 40% Export Contribution.

Item 19 amends item 1 of Schedule 5 of the Principal Orders. The item increases the fee for the electronic issue of a government certificate for meat, meat products, game, poultry or rabbit meat products from $10.00 to $11.00.  This increase is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000.

Item 20 amends item 2 of Schedule 1 of the Principal Orders.  The item increases the fee for the electronic issue of a replacement government certificate for meat, meat products, game, poultry or rabbit meat products from $270 to $300.00.  This increase is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000.

Item 21 amends item 3 of Schedule 1 of the Principal Orders. The item increases the fee for the issue of any other document from $25.00 to $30.00.  This increase is due to salary increases delivered under the various Departmental Certified Agreements since the last review of fees in 2000.  The increase for this fee is proportionally higher than the increase for the other documentation fees (see items 19 and 20 above) as it requires significant additional time and effort in comparison to the provision of electronic documentation.