EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 71
Issued by the Parliamentary Secretary for Agriculture, Fisheries and Forestry
Primary Industries and Energy Research and Development Act 1989
Fisheries Research and Development Corporation Amendment Regulations 2011
(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 to be established and named by way of regulations. In accordance with section 8 of the Act, the Fisheries Research and Development Corporation (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 research and development corporations 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 a research and development corporation 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 2010–2011 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 the 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 is 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 2011 (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 2010–11 financial year. A new subregulation is inserted every financial year to enable the collected funds to be paid to the Fisheries Research and Development Corporation.
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 Fisheries Research and Development Corporation can receive the entire research component collected since 1 July 2010.
Overview
The Fisheries Research and Development Corporation Amendment Regulations 2011 (No. 1) were introduced to address the annual variation in the proportion of the annual fishing levies directed to the Fisheries Research and Development Corporation (FRDC). Enacted by the Governor-General, these Regulations amend the Fisheries Research and Development Corporation Regulations 1991 to specify the research component of the fishing levy for the 2010–11 financial year. This annual amendment is necessary because the research component is derived from the gross value of production of Commonwealth managed fisheries, while the fisheries management component is derived from the costs borne by the Australian Fisheries Management Authority in managing the fisheries. The primary objective of these Regulations is to ensure that the FRDC receives its designated share of the fishing levies, thereby supporting research and development activities in the fishing industry as mandated by the Primary Industries and Energy Research and Development Act 1989.
Scope and Application
The Fisheries Research and Development Corporation Amendment Regulations 2011 (No. 1) amends the Fisheries Research and Development Corporation Regulations 1991, which were established under section 8 of the Primary Industries and Energy Research and Development Act 1989. These regulations apply to the Fisheries Research and Development Corporation (FRDC), an entity established to manage research and development activities within Australia’s fishing industry. The amendment specifically updates the research component of the fishing levies for the 2010–2011 financial year, ensuring that a proportion of the annual fishing levies collected by the Australian Fisheries Management Authority (AFMA) is directed towards the FRDC for funding fisheries research and development. The research component is calculated based on the gross value of production of Commonwealth managed fisheries as determined by the Minister for the relevant financial year. The Regulations are a legislative instrument under the Legislative Instruments Act 2003, and they commenced on the day after they were registered on the Federal Register of Legislative Instruments. These regulations are necessary for the ongoing funding of the FRDC and the continuous support of research and development in the fishing industry.
Key Provisions
The Fisheries Research and Development Corporation Amendment Regulations 2011 (No. 1) introduce amendments to the Fisheries Research and Development Corporation Regulations 1991. Specifically, Regulation 3 amends the Principal Regulations to update the research component of the fishing levy for the 2010–11 financial year. Regulation 1 names the Regulations as the Fisheries Research and Development Corporation Amendment Regulations 2011 (No. 1), while Regulation 2 specifies that these Regulations commence on the day following their registration. The key amendment, detailed in Schedule 1, involves subregulation 4A (2), which updates the research component of the fishing levies. This amendment ensures that the research component of the fishing levies collected since 1 July 2010 is correctly directed to the Fisheries Research and Development Corporation.
The obligations imposed by these Regulations primarily involve the calculation and collection of fishing levies and the subsequent distribution of the research component to the Fisheries Research and Development Corporation. The Australian Fisheries Management Authority (AFMA) is tasked with collecting these levies, which comprise both recoverable costs attributable to fisheries management and a contribution for fishery research and development purposes. The research component is derived from the gross value of production of Commonwealth managed fisheries, as determined by the Minister for the relevant financial year, and is therefore subject to annual variation. The Department of Agriculture, Fisheries and Forestry then ensures that the research component of the fishing levy is paid to the Fisheries Research and Development Corporation. These Regulations ensure that the funds collected are accurately allocated and that the Fisheries Research and Development Corporation receives the appropriate proportion of the fishing levies.
There are no explicit offences, penalties, or consequences for breach outlined in these Regulations. However, the accuracy and timely distribution of the research component of the fishing levies are crucial for the proper functioning of the Fisheries Research and Development Corporation. Any failure to correctly calculate or distribute the research component could potentially impact the funding available for fisheries research and development, thereby affecting the Corporation's ability to fulfil its mandate. The administrative and mechanical nature of the calculation of the research component, which implements existing government policy, suggests that the primary focus is on ensuring compliance with established procedures and policy directives rather than imposing penalties for non-compliance.
These Regulations are a legislative instrument under the Legislative Instruments Act 2003 and were not subject to industry consultation due to the nature of the calculation of the research component of the levy. This calculation is based on predetermined government policy, making it an administrative adjustment rather than a policy change that would necessitate broader consultation. The Regulations' purpose is to ensure that the Fisheries Research and Development Corporation receives the correct proportion of the fishing levies for the specified financial year, thereby supporting fisheries research and development activities.