EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 243
Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries and Energy Research and Development Act 1989
Forest and Wood Products Research and Development Corporation (Repeal) Regulations 2007
Subsection 1 and 9(1) of the Primary Industries and Energy Research and Development Act 1989 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, in carrying out or giving effect to the Act.
The purpose of the Regulations is to repeal the Forest and Wood Products Research and Development Corporation Regulations 1993 (the Principal Regulations) which established the Forest and Wood Products Research and Development Corporation. The Forestry Marketing and Research and Development Act 2007 provides for a new industry services body to replace the Forest and Wood Products Research and Development Corporation. The Principal Regulations will therefore become inoperative on a specified date after a company has been declared as the industry services body for the Australian forest industries. The Principal Regulations are expected to become inoperative on 3 September 2007 and the industry services body is expected to be declared on or before 31 August 2007.
The repeal is consequential to the Forestry Marketing and Research and Development Act 2007, which removes the need for Forest and Wood Product Research and Development Corporation. Section 4 of the Forest and Wood Products Research and Development Corporation Regulations 1993 provides for Forest and Wood Products Research and Development Corporation to be declared the Research and Development Corporation in respect of the forest and wood product industry. Section 8 of the Primary Industries and Energy Research and Development Act 1989 provides for the establishment of a Research and Development Corporation.
The changes were an initiative of the Australian forestry industry to introduce an industry services body that is able to undertake generic marketing and promotion activities, along with research and development.
A full consultation process, involving a ballot of each affected industry member was conducted during March and April 2006. Of the 434 who exercised a vote in the ballot, 310 voted in favour of the establishment of a new industry services body. Of the 77 sawmillers who exercised a vote in the ballot, 54 voted against the increase. However, of the seven largest hardwood sawmillers, who are defined as those who process over 50,000 cubic metres of hardwood sawlogs per year, five voted in support of the increase. These five votes represent over 70 per cent of the hardwood sawlogs produced in Australia. Following the ballot, the hardwood sector representative body, NAFI, publicly announced its support to the levy increase on behalf of the sector.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations will commence on 3 September 2007.
Overview
The Forest and Wood Products Research and Development Corporation (Repeal) Regulations 2007 were enacted to repeal the Forest and Wood Products Research and Development Corporation Regulations 1993, as provided by subsections 1 and 9(1) of the Primary Industries and Energy Research and Development Act 1989. These regulations were introduced to address the need to dissolve the Forest and Wood Products Research and Development Corporation and replace it with a new industry services body, as stipulated by the Forestry Marketing and Research and Development Act 2007. This transition was initiated by the Australian forestry industry, aiming to establish an industry services body capable of undertaking generic marketing and promotion activities, alongside research and development. A comprehensive consultation process involving a ballot of industry members resulted in significant support for the establishment of the new body, with 310 out of 434 voters in favour. The repeal of the original regulations is effective from 3 September 2007, aligning with the declaration of the new industry services body.
Scope and Application
The Forest and Wood Products Research and Development Corporation (Repeal) Regulations 2007, made under the Primary Industries and Energy Research and Development Act 1989, serve to repeal the Forest and Wood Products Research and Development Corporation Regulations 1993. This repeal is necessitated by the introduction of the Forestry Marketing and Research and Development Act 2007, which establishes a new industry services body to replace the former Corporation. These regulations are designed to render the Principal Regulations inoperative following the declaration of a company as the new industry services body for the Australian forest industries, expected to occur by 31 August 2007. The regulations are expected to take effect on 3 September 2007, ensuring a seamless transition from the old regulatory framework to the new system.
These regulations apply to the entities and persons involved in the forest and wood product industry in Australia. They concern the conduct and transactions related to research and development within the industry. Geographically, the application of these regulations is within the Commonwealth of Australia, as they are federal regulations. There are no specific exclusions or exemptions detailed in the text, but the repeal and subsequent establishment of the new industry services body is a direct response to industry needs, indicating a targeted application to the forest and wood product sector. The regulations are comprehensive in their scope, effectively nullifying the previous regulatory framework and setting the stage for the new industry services body's operations.
Key Provisions
The Forest and Wood Products Research and Development Corporation (Repeal) Regulations 2007 (F2007L02632) serve to repeal the Forest and Wood Products Research and Development Corporation Regulations 1993, as stipulated in section 1 and 9(1) of the Primary Industries and Energy Research and Development Act 1989. This repeal is necessary as a result of the Forestry Marketing and Research and Development Act 2007, which established a new industry services body to replace the Forest and Wood Products Research and Development Corporation. The repeal is effective from 3 September 2007, the same date on which the new industry services body is expected to be declared. This date is consequential to the establishment of the new body and follows a comprehensive consultation process conducted in March and April 2006, where the majority of affected industry members voted in favour of the change.
The repealed regulations, particularly section 4 of the Forest and Wood Products Research and Development Corporation Regulations 1993, previously designated the Corporation as the Research and Development Corporation for the forest and wood product industry, in accordance with section 8 of the Primary Industries and Energy Research and Development Act 1989. The new regime under the Forestry Marketing and Research and Development Act 2007 aims to introduce an industry services body capable of undertaking broader marketing and promotion activities alongside research and development, thereby aligning the industry’s service structure with its evolving needs. The transition is marked by the support of significant stakeholders, including the hardwood sector representative body, NAFI, which endorsed the levy increase on behalf of the sector.
Entities governed by these regulations must ensure compliance with the new legislative framework established by the Forestry Marketing and Research and Development Act 2007. This includes transitioning their operations, if necessary, to align with the new industry services body. The repealed regulations no longer apply from the commencement date of 3 September 2007, and all relevant activities must now be conducted under the new legal provisions. Additionally, industry members and stakeholders must familiarize themselves with the new obligations and structures set forth by the Forestry Marketing and Research and Development Act 2007 to ensure compliance and continuity in their operations.
There are no specific offences, penalties, or consequences outlined in the explanatory statement for non-compliance with the repealed regulations. However, failure to adhere to the new provisions under the Forestry Marketing and Research and Development Act 2007 may result in legal repercussions. As with most legislative instruments, non-compliance could lead to administrative, civil, or criminal penalties, depending on the nature and severity of the breach. The exact penalties would be determined by the relevant authorities and would be in accordance with the provisions of the Forestry Marketing and Research and Development Act 2007.