EXPLANATORY STATEMENT
Select Legislative Instrument 2010 No. 126
Issued by the Minister for Agriculture, Fisheries and Forestry
Primary Industries and Energy Research and Development Act 1989
Fisheries Research and Development Corporation Amendment Regulations 2010
(No. 1)
Section 149 of the Primary Industries and Energy Research and Development Act 1989 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Section 8 of the Act provides for research and development corporations (RDCs) to be established and named by way of regulations. In accordance with section 8 of the Act, the Fisheries Research and Development Corporation (the FRDC) was established in respect of the fishing industry by the Fisheries Research and Development Corporation Regulations 1991 (the Principal Regulations).
Subsection 5(1) of the Act allows a levy to be attached to an RDC by way of regulations for raising research funds. Section 4(A) of the Principal Regulations attaches the levy imposed by section 5 of the Fishing Levy Act 1991 to the FRDC for this purpose.
Subsection 5(3) of the Act requires that, if a levy is attached to an RDC by way of regulation, then the regulations must declare the whole or a specified proportion of the levy to be the research component of the levy.
The Regulations amend the Principal Regulations to declare the proportion of the annual fishing levies collected by the Australian Fisheries Management Authority (AFMA) that are to be directed to the FRDC in the 2009–2010 financial year.
AFMA collects levies from the fishing industry through the annual fishing levy regulations. These levies are made up of two major components: the recoverable costs of fisheries management that are attributable to the fishing industry’s activities; and a contribution made to the FRDC for fishery research and development purposes.
The proportion of the fishing levies directed to FRDC varies annually, as the value of the fishing research and the fisheries management components are derived from independent sources. The fishing research component is derived from the gross value of production of Commonwealth managed fisheries as determined by the Minister for the relevant financial year, while the fisheries management component are derived from the costs borne by AFMA in managing the fisheries. As such, the Principal Regulations require amendment on an annual basis.
The research component of the fishing levy collected by AFMA is then paid to the FRDC by the Department of Agriculture, Fisheries and Forestry.
The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation with industry on the Regulations was not conducted due to the administrative and mechanical nature of the calculation of the research component of the levy, which implements existing government policy.
The Regulations
Details of the Regulations are below.
Regulation 1 – sets out that the Regulations are to be referred to as the Fisheries Research and Development Corporation Amendment Regulations 2010 (No. 1).
Regulation 2 – sets out that the Regulations shall commence on the day after they are registered.
Regulation 3 – states that the Regulations amend the Fisheries Research and Development Corporation Regulations 1991. The amendment inserts an additional subregulation under regulation 4A to update the research component of the levy for the 2009–10 financial year. A new subregulation is inserted every financial year to enable the collected funds to be paid to FRDC.
Schedule 1 [1] – subregulation 4A (2) sets the research component of the levies. This schedule provides the authority to collect payments of levy received prior to the creation of the regulation, so that the FRDC can receive the entire research component collected since 1 July 2009.
Overview
The Fisheries Research and Development Corporation Amendment Regulations 2010 (No. 1) were introduced to amend the Fisheries Research and Development Corporation Regulations 1991 under the Primary Industries and Energy Research and Development Act 1989. Enacted by the Minister for Agriculture, Fisheries and Forestry, these regulations aim to update the research component of the fishing levies for the 2009–10 financial year, ensuring that the correct proportion of funds collected by the Australian Fisheries Management Authority is directed to the Fisheries Research and Development Corporation for research and development purposes. These regulations are necessary due to the annually varying nature of the fishing research and fisheries management components, which are derived from independent sources such as the gross value of production of Commonwealth managed fisheries and the costs borne by AFMA in managing the fisheries. The regulations, which commenced on the day after they were registered, are a legislative instrument under the Legislative Instruments Act 2003 and do not require industry consultation as they implement existing government policy.
Scope and Application
The Fisheries Research and Development Corporation Amendment Regulations 2010 (No. 1) amends the Fisheries Research and Development Corporation Regulations 1991, which were established under the Primary Industries and Energy Research and Development Act 1989. The Act allows for the creation of research and development corporations, such as the Fisheries Research and Development Corporation (FRDC), through regulations, and these Regulations specifically adjust the proportion of the annual fishing levies that are directed to the FRDC. This amendment is necessary as the proportion of the fishing levies directed to the FRDC varies each financial year based on the gross value of production of Commonwealth managed fisheries and the costs borne by the Australian Fisheries Management Authority in managing the fisheries. The Regulations apply to the fishing industry, which is subject to the annual fishing levy imposed by the Australian Fisheries Management Authority, and these levies are split into a fisheries management component and a research component, the latter of which is directed to the FRDC. The Regulations apply on a Commonwealth level and are made under the authority of the Primary Industries and Energy Research and Development Act 1989. They commenced on the day after they were registered on the Federal Register of Legislative Instruments and are considered a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Key Provisions
The Fisheries Research and Development Corporation Amendment Regulations 2010 (No. 1) primarily amend the Fisheries Research and Development Corporation Regulations 1991 to update the research component of the fishing levy for the 2009–2010 financial year. Regulation 1 identifies these regulations as the Fisheries Research and Development Corporation Amendment Regulations 2010 (No. 1). Regulation 2 stipulates that the regulations commence on the day after they are registered, while Regulation 3 clarifies that the regulations amend the existing Fisheries Research and Development Corporation Regulations 1991. The amendment involves inserting a new subregulation under regulation 4A to update the research component of the fishing levy. This new subregulation is added annually to ensure the collected funds are correctly directed to the FRDC.
The obligations under these regulations primarily concern the calculation and allocation of the research component of the fishing levy. According to Schedule 1 [1], subregulation 4A(2), the research component of the fishing levy is determined based on the gross value of production of Commonwealth managed fisheries for the relevant financial year, as determined by the Minister. The Australian Fisheries Management Authority (AFMA) is responsible for collecting these levies and ensuring that the appropriate proportion is directed to the FRDC. The Department of Agriculture, Fisheries and Forestry then facilitates the payment of this research component to the FRDC. The regulations ensure that the FRDC receives its allocated share of the fishing levies, which are essential for funding fisheries research and development.
Breaching these regulations could lead to various consequences, although specific offences, penalties, or civil/criminal consequences are not detailed in the explanatory statement. However, failing to comply with the requirements for the collection, allocation, and payment of the fishing levies could potentially result in legal actions or administrative penalties. The regulations aim to ensure that the FRDC receives the necessary funds for its operations, and any non-compliance could affect the funding available for fisheries research and development. The precise penalties for such breaches would depend on the nature and severity of the non-compliance, but could include financial penalties, administrative sanctions, or other legal consequences as prescribed by relevant legislation.