EXPLANATORY STATEMENT

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

Export Control (Orders) Regulations 1982

Export Control (Fees) Amendment Orders 2006 (No. 1)

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 2006 (No. 1) (‘the Amendment Orders’) is to:

• amend the current fees for the delivery of certification and inspection services for the Meat Export Program;
• create a new fee for the provision of electronic certificates for the export of Wool, Skins and Hides (non-prescribed goods); and
• repeal the fee-for-service for an officer of the Verification Unit for services, other than routine audits, performed at an establishment.

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 Meat Industry Advisory Committee (EMIAC) and the Export Wild Game Meat Industry Consultative Committee (EWGMICC).

The Amendment Orders are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Details of Amendment Orders are as follows:

Order 1 provides that the name of the Amendment Orders is the Export Control (Fees) Amendment Orders 2006 (No.1).

Order 2 provides that the Amendment Orders commence on the day after they are registered on the Federal Register of Legislative Instruments.

Order 3 provides that Schedule 1 amends the Principal Orders.

Schedule 1 - Amendments

Item 1

Item 1 omits Tables 1-6 and replaces them with new Tables 1 – 6.

Table 1

Table 1 increases the rate of shift loading per quarter hour for meat inspectors.  These new shift rates are a result of increased hourly rates for meat inspectors undertaking overtime due to a pay increase linked to the current Meat Program Agreement 2004-2007.

Table 2

Table 2 increases the rate of shift loading per quarter hour for veterinary officers.  These new shift rates are based on increased hourly rates for veterinary officers overtime charges as a result of a pay increase as specified in the Department of Agriculture Fisheries and Forestry Collective Agreement 2006-2009 (DAFF Collective Agreement 2006-2009).

Table 3

Table 3 increases the rate of overtime loadings for meat inspectors.  Revenue analysis resulting from expected activity in 2006/2007 financial year projected an under-recovery of costs if current fees were maintained.  Program expenditure for Meat Inspector Overtime Services will increase by 4 per cent in the 2006/2007 financial year.  This increase is a result of a 4 per cent salary increase for Meat Inspection staff as specified in the Meat Program Agreement 2004-2007.

Table 4

Table 4 increases the rate of overtime loadings for veterinary officers.  Revenue analysis resulting from expected activity in 2006/2007 financial year projected an under-recovery of costs if current fees were maintained.  Program expenditure for On-Plant Veterinary Officer Overtime Services will increase by 4 per cent in the 2006-2007 financial year.  This increase is a result of a 4 per cent salary increase for On-Plant Veterinary Officers as specified in the DAFF Collective Agreement 2006-2009.

Table 5

Table 5 increases the rate of overtime if services are provided non-continuously with ordinary duty for meat inspectors.  Revenue analysis resulting from expected activity in 2006/2007 financial year projected an under-recovery of costs if current fees were maintained.  Program expenditure for Meat Inspector Overtime Services will increase by 4 per cent in the 2006/2007 financial year.  This increase is a result of a 4 per cent salary increase for Meat Inspection staff as specified in the Meat Program Agreement 2004-2007.

Table 6

Table 6 increases the rate of overtime if services are provided non-continuously with ordinary duty for veterinary officers.  Revenue analysis resulting from expected activity in 2006/2007 financial year projected an under-recovery of costs if current fees were maintained.  Program expenditure for On-Plant Veterinary Officer Overtime Services will increase by 4 per cent in the 2006-2007 financial year.  This increase is a result of a 4 per cent salary increase for On-Plant Veterinary Officers as specified in the DAFF Collective Agreement 2006-2009.

Item 2

Item 2 amends Schedule 1 of the Principal Orders.  It omits Schedule 1 and replaces it with a new Schedule 1.

Item 1 of the new Schedule 1 increases the hourly rates for:

(a)      an authorised officer who is not a veterinarian from $62.00 to $63.00;

(b)      an authorised officer who is a veterinarian and an APS employee within the meaning of the Public Service Act 1999 from $79.00 to $80.00;

(c)      an authorised officer who is a veterinarian and a non-APS employee within the meaning for section 72 of the Public Service Act 1999 from $62.00 to $63.00;

(d)      an Area Technical Manager for services performed at an establishment from $158.00 to $182.00.

Analysis of expected activity in 2006/2007 financial year projected an under-recovery of costs if charges remained at current rates. 

The increases referred to in (a) to (d) above are a result of increased program expenditure for the provision of Meat Inspection Field Services and Veterinary Inspection Field Services. 

The increase referred to in (a) above is a result of:

• an increase in fixed costs, specifically a 4 per cent salary increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;
• a 4 per cent increase for Meat Inspectors as specified in the Meat Program Agreement 2004-2007;
• an anticipated 4 per cent increase in supplier costs associated with the delivery of Meat Inspection services; and
• an increase in the departmental information technology (IT) outsourcing costs passed through the program.

The increase referred to in (b) above is a result of:

• an increase in fixed costs, specifically a 4 per cent increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;
• a 4 per cent increase for On Plant Veterinary Officers as specified in the DAFF Collective Agreement 2006-2009;
• an anticipated 4 per cent increase in supplier costs associated with the delivery of Veterinary Inspection Services; and
• an increase in the departmental information technology (IT) outsourcing costs through to the program.

The increase referred to in (c) above is a result of:

• an increase rate paid to contractors for their services since the last review of fees in 2005/2006.  The contract rates for Veterinary Inspectors are set to increase by 4 per cent in 2006/2007.

The increase referred to in (d) above is a result of:

• an increase in fixed costs, specifically a 4 per cent increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;
• a 4 per cent salary increase for Veterinary Officers and Meat Inspectors undertaking Area Technical Manager duties as specified in the DAFF Collective Agreement 2006-2009 and the Meat Program Agreement 2004-2007;
• an increase in the departmental information technology (IT) outsourcing costs through to the program; and
• an increase in expenditure associated with industry supported training activities.

These increased fees will allow for the costs of these services to be recovered.

The hourly rate for an officer of the Verification Unit for services, other than routine audits, performed at an establishment has been removed.  The primary function of the Verification Unit is to collect information to give the program an indication of the effectiveness and integrity of its routine audit and inspection systems.  This information underpins broader program policy regarding inspection and audit activity and thus provides a benefit to the whole of industry.  Accordingly, the decision has been made to treat the verification activity as a fixed cost rather than a recoverable fee-for-service item.

Item 2 of the new Schedule 1 increases the:

(a)      daily rate for an authorised officer who is not a veterinarian from $363.00 to $378.00;

(b)      daily rate for an authorised officer who is a veterinarian from $579.00 to $584.00;

(c)      daily rate for an Area Technical Manager for services performed at an establishment from $1028.00 to $1184.00;

(d)      weekly rate for an authorised officer who is not a veterinarian from $1453.00 to $1510.00;

(e)      weekly rate for an authorised officer who is a veterinarian from $2317.00 to $2338.00;

(f)      four-weekly rate for an authorised officer who is not a veterinarian from $4361.00 to $4532.00;

(g)      four-weekly rate for an authorised officer who is a veterinarian from $6954.00 to $7016.00;

(h)      annual rate for an authorised officer who is not a veterinarian from $51,589.00 to $53,609.00; and

(i)      annual rate for an authorised officer who is a veterinarian from $82,260.00 to $82,977.00.

Analysis of expected activity in 2006/2007 financial year projected an under-recovery of costs if charges remained at current rates. 

The increases referred to in (a) to (i) above are a result of increased program expenditure for the provision of Meat Inspection Field Services and Veterinary Inspection Field Services.

The increases referred to in (a), (d), (f) and (h) above are a result of:

• an increase in fixed costs, specifically a 4 per cent salary increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;
• a 4 per cent increase for Meat Inspectors as specified in the Meat Program Agreement 2004-2007;
• an anticipated 4 per cent increase in supplier costs associated with the delivery of Meat Inspection services; and
• an increase in the departmental information technology (IT) outsourcing costs passed through the program.

The increase referred to in (c) above is a result of:

• an increase in fixed costs, specifically a 4 per cent salary increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;

• a 4 per cent salary increase for Veterinary Officers and Meat Inspectors undertaking Area Technical Manager duties as specified in the DAFF Collective Agreement 2006-2009 and the Meat Program Agreement 2004-2007;
• an increase in the departmental information technology (IT) outsourcing costs through to the program; and

• an increase in expenditure associated with industry supported training activities.

The increases referred to in (b), (e), (g) and (i) above are a result of:

• an increase in fixed costs, specifically a  4 per cent increase for administrative and support staff as specified in the DAFF Collective Agreement 2006-2009;
• a 4 per cent increase for On Plant Veterinary Officers as specified in the DAFF Collective Agreement 2006-2009;
• an anticipated 4 per cent increase in supplier costs associated with the delivery of Veterinary Inspection Services; and
• an increase in the departmental information technology (IT) outsourcing costs through to the program.

These increased fees will allow for the costs of these services to be recovered.

Item 3

Item 3 amends Schedule 5 of the Principal Orders.  Item 3 repeals Items 1, 2 and 3 from Schedule 5 and replaces them with new Items 1, 2 and 3.  The effect of this is:

• Item 1 increases the fee payable for an electronic government certificate from $11.00 to $12.00;
• Item 2 increases the fee payable for a replacement government certificate from $300.00 to $305.00; and
• Item 3 increases the fee payable for any other document from $30.00 to $31.00.

Analysis of expected activity in 2006/2007 financial year projected an under-recovery of costs if charges remained at current rates.  Program expenditure for the provision of Export documentation services will increase in the 2006/2007 financial year due to:

• a 4 per cent salary increase for administrative and support staff providing documentation services as specified in the DAFF Collective Agreement 2006-2009;
• an anticipated 4 per cent increase in supplier costs associated with the delivery of export documentation services;
• an increase in departmental information technology (IT) outsourcing costs passed through to the program.

These increased fees will allow for the costs of these services to be recovered.

Item 4

Item 4 amends Schedule 5 of the Principal Orders by repealing Item 39 and replacing it with new Items 39 and 40.  New Item 39 has the effect of introducing a fee for the issuing of a certificate for wool, skins and hides in respect of which an application under order 8.05 of the Export Control (Prescribed Goods – General) Orders 2005 has been made.  This fee is set at $16.00. 

At the time of implementation of electronic certificates for wool skins and hides, AQIS agreed with this sector of the industry to maintain a lower rate to assist with the uptake and the transition to the use of electronic systems

Item 40 maintains the fee previously set in old Item 39 for certificates for all other goods that are not prescribed goods in respect of which an application under order 8.05 of the Export Control (Prescribed Goods – General) Orders 2005 has been made at $30.00.