EXPLANATORY STATEMENT
STATUTORY RULES 1989 No. 227
Issued by the Authority of the
Minister for Primary Industries and Energy
HONEY LEVY (NO 2) REGULATIONS (AMENDMENT)
Section 7 of the Honey Levy Act (No 2) 1962 (the Levy Act) provides that the Governor-General may make regulations for the purposes of carrying out or giving effect to the Levy Act.
The Levy Act imposes a levy on honey used in the manufacture of other goods. The levy has two components. The component referred to in paragraph 5(1)(a) of the Act is, by virtue of the Honev Marketing Act 1988, designated for funding of the Australian Honey Board (AHB).
Under paragraph 5(1)(a) of the Levy Act, the rate of levy for AHB purposes may be varied, by regulation, from 1.80 cents up to a maximum of 5.0 cents per kilogram of honey. The present prescribed rate is 2.20 cents.
Paragraph 5(2) of the Levy Act provides that before making regulations for the purposes of paragraph 5(1)(a) the Governor-General shall take into consideration any recommendation made to the Minister by the Board.
The Board is required under paragraph 5(2A) to consult with the producers’ organisation (Federal Council of Australian Apiarists’ Associations - FCAAA) and packers’ organisation (Honey Packers Association of Australia - HPAA) before making a recommendation and the producers’ organisation must agree to a new rate being prescribed. Subsection 5(2B) restricts the AHB to recommending a rate no higher than that agreed to by the producers’ organisation.
FCAAA has agreed to proposals by the AHB for an increase in the rate of levy for Board funding from 2.20 to 2.75 cents per kilogram of honey.
The purpose of the proposed Regulations is to increase the rate of levy, for AHB funding, to 2.75 cents per kilogram of honey. The increase is to come into effect from 1 September 1989.