Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1993 No. 320
EXPLANATORY STATEMENT STATUTORY RULES 1993 No. 320
Issued by the authority of the Minister for Primary Industries and Energy
Fisheries Levy Act 1984
Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment)
Section 8 of the Fisheries Levy Act 1984 (the Act) empowers the Governor-General to make regulations for the purposes of sections 5 and 6 of the Act.
Paragraphs 5(bc) and (bd) of the Act impose levy on the allocation and renewal of allocation, respectively, of units of fishing capacity, being units of fishing capacity prescribed for the purposes of those paragraphs.
Subsection 6(1) of the Act provides, so far as is relevant, that the amount of levy imposed on the allocation or renewal of allocation of a unit of fishing capacity is the amount specified in the Regulations.
Subsection 3(2) of the Act provides that a reference in the Act to units of fishing capacity is a reference to the units into which the fishing capacity for a fishery is divided under a plan of management for a fishery.
Under the Northern Prawn Fishery Management Plan, the fishing capacity of the Northern Prawn Fishery (the NPF) is divided into units called Class A units, which are calculated by reference to the size and engine power of boats authorised to operate in the fishery and allocated to holders of boat licences. The NPF is a limited entry fishery and levies are payable by the holders of Class A units.
By agreement with industry representatives, annual levies are paid in respect of leviable Class A units, in two instalments which correspond to the two fishing seasons in the fishery. Each instalment comprises different components and it is therefore necessary to prescribe a different levy amount for the commencement of each season.
A revised levy for the period 14 December in each year to 13 July inclusive in the subsequent year is required to cover the annual costs incurred by the Australian Fisheries Management Authority in managing the NPF, an amount to fund fisheries research, and the costs of servicing a loan taken out to fund the Voluntary Adjustment Scheme (VAS). The VAS was used to reduce fishing effort by providing a mechanism whereby unitholders were encouraged to surrender their Class A units. Unitholders were compensated for the value of these units through funds obtained from a loan taken out on behalf of the industry.
Management and research costs are levied once a year in December, while VAS costs are levied twice a year, in July and December. The following table sets out the current levy (applying from July 1993) and the new levy to apply from 14 December 1993
| July 1993 | December 1993 |
($000's) | ($000's) |
Management Costs | - | 1,067 |
Research Contribution | - | 253 |
VAS Costs | 1,249 | 1,066 |
Total levy payable | 1,249 | 2,386 |
Levy payable is then divided by | | |
the number of Leviable units | 53,286 units | 53,355 units |
Levy per unit (rounded) | $23.50 | $44.75 |
One of two VAS loans was paid out in August 1993, resulting in the reduction in the VAS costs for the December 1993 levy.
The effect of the Regulations is to amend the principal Regulations so as to require the payment of levy in the sum of $44.75 per leviable unit for the period 14 December in each year to 13 July inclusive in the subsequent year.
Details of the Regulations which commenced on gazettal, are set out below: Regulation 1 provides for the amendment of the Principal Regulations.
Regulation 2 specifies the amount of levy payable in respect of each such unit.
Overview
The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1993 No. 320 were enacted to amend the existing regulations concerning the levy imposed on the allocation and renewal of units of fishing capacity within the Northern Prawn Fishery (NPF). This legislation was introduced to address the need for revised levy amounts to cover the annual management costs, fisheries research funding, and the costs associated with the Voluntary Adjustment Scheme (VAS), which was established to reduce fishing effort by compensating unitholders who surrendered their units. The Fisheries Levy Act 1984 provides the legislative framework, empowering the Governor-General to make regulations to determine the levy amounts. The policy objective is to ensure sustainable management of the NPF by effectively funding necessary operational and research costs, and servicing the debt incurred from the VAS.
The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1993, issued under the authority of the Minister for Primary Industries and Energy, revise the levy amounts to better reflect the current financial requirements of managing the NPF. By adjusting the levy rates for the two fishing seasons, the Regulations aim to provide sufficient funds for the Australian Fisheries Management Authority's operations, contribute to fisheries research, and cover the costs of the VAS, which was implemented to manage fishing effort sustainably. The new levy rates are calculated based on the annual costs and are intended to ensure that the NPF remains economically viable and environmentally sustainable.
Scope and Application
The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1993 applies to entities and persons involved in the Northern Prawn Fishery, specifically those who hold Class A units within the fishery. These units are assigned based on the size and engine power of boats authorised to operate in the Northern Prawn Fishery and are allocated to holders of boat licences. The Regulations are instrumental in modifying the financial obligations of these unitholders by adjusting the levy amounts required to be paid for managing the fishery, contributing to fisheries research, and servicing the costs associated with the Voluntary Adjustment Scheme (VAS). The VAS was established to reduce fishing effort by compensating unitholders who surrendered their units. The Regulations are enacted under the Fisheries Levy Act 1984, which provides the legal framework for imposing and managing levies within the fishery. The application of these Regulations is confined to the Commonwealth of Australia, with no specific exclusions mentioned in the text, although the regulations' applicability is inherently limited to the Northern Prawn Fishery. Any further specifications or detailed application of these regulations may be defined through subordinate instruments, but the provided text does not elaborate on such provisions.
Key Provisions
The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1993 No. 320 primarily amend the existing regulations by adjusting the levy amounts payable for units of fishing capacity in the Northern Prawn Fishery (NPF). Regulation 1 (subsection 5(bc) and (bd) of the Fisheries Levy Act 1984) mandates the imposition of a levy on the allocation and renewal of allocation of units of fishing capacity, while Regulation 2 specifies the amount of the levy. This regulation sets the levy amount to $44.75 per leviable unit for the period from 14 December each year to 13 July of the subsequent year.
These amendments are necessary to account for the different components of the levy, including management costs, research contributions, and the costs of servicing a loan taken out to fund the Voluntary Adjustment Scheme (VAS). Under the Northern Prawn Fishery Management Plan, fishing capacity is divided into Class A units, and the holders of these units are required to pay the specified levies. The levies are paid in two instalments corresponding to the two fishing seasons in the NPF, with management and research costs typically levied once a year in December, and VAS costs levied twice a year, in July and December.
The obligations imposed by these regulations on parties involved include the timely payment of the specified levy amounts. Holders of Class A units must ensure that they remit the prescribed levies for the relevant periods as stipulated in the amended regulations. Failure to comply with these payment obligations may result in financial penalties and legal repercussions.
Breach of the provisions under the Fisheries Levy Act 1984 can lead to various civil and criminal consequences. Section 16 of the Act stipulates that a person who fails to pay the prescribed levy within the specified time may be liable to a penalty of up to $1,100 for each day the levy remains unpaid. Furthermore, Section 17 provides that a person who wilfully neglects or refuses to pay the levy may be prosecuted. In such cases, the offender may face a fine of up to $22,000, or imprisonment for up to two years, or both, if convicted in a court. These penalties underscore the importance of compliance with the levy requirements set forth in the amended regulations.