EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 247
Issued by the Authority of the Minister for Resources
GRAIN LEGUMES LEVY ACT 1985
GRAIN LEGUMES RESEARCH LEVY REGULATIONS (AMENDMENT)
Section 6 of the Grain Legumes Levy Act 1985 (the Act) imposes a levy on leviable grain legumes either delivered by the grower to another person other than for storage on behalf of the grower or processed by the grower.
Section 7 of the Act provides that the rate of levy shall not exceed $2.60 per tonne.
Section 10 of 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 carrying out or giving effect to the Act.
Subsection 10(2) of the Act provides that before making regulations for the purposes of section 7 the Governor-General
shall take into consideration any relevant recommendation made to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 October 1988 is $1.00 per tonne. The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 25 cents to $1.25 per tonne commencing for the 1989-90 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.36% to 0.45% of the industry’s estimated GVP for 1989-90.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that grain legumes levy money be paid into the Grain Legumes Research Trust Fund and subsection 9(1) of the Research Act provides that the Grain Legumes Research Council may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the grain legumes industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Grain Legumes Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% GVP. Estimated Commonwealth expenditure for 1989-90 is $1.232 million. Increased funding to meet estimated Commonwealth matching obligations in 1989-90 resulting from the proposed increased levy is provided for in the 1989-90 Budget.
The proposed Grain Legumes Research Levy Regulations to increase the rate of levy to $1.25 per tonne is to apply from 1 October 1989.