Honey Levy (No. 2) Regulations (Amendment) 1995 No. 354
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 354
Issued by the Authority of the Minister for Primary Industries and Energy
Honey Levy Act (No. 2) 1962
Honey Levy (No. 2) Regulations (Amendment)
Market research and promotion activities for the honey industry are administered at the national level by the Australian Horticultural Corporation (the AHC) which is established under the Australian Horticultural Corporation Act 1987 (the AHC Act). This arrangement has been in place since 1 January 1993.
The honey industry contributes to the AHC through levies imposed under the Honey Levy Act (No.1) 1962 and the Honey Levy Act (No.2) 1962. The Honey Levy (No.1) Regulations and the Honey Levy (No.2) Regulations prescribe the rate of levy for the purposes of paragraph 5(1)(a) of both Acts at 2.75 cents per kilogram.
Section 7 of the Honey Levy Act (No.2) 1962 (the Act) provides that the Governor-General may make regulations for the purposes of paragraph 5(1)(a) of the Act.
Subsection 5(2) of the Act provides that the Governor-General, before making any regulations for the purposes of subsection 5(1) of the Act, must take into consideration any relevant recommendation made to the minister by the producers, organisation. The producers' organisation, by virtue of subsection 5(2A) of the Act, must not make a recommendation to the Minister unless it has consulted with the ARC in relation to the recommendation.
The Federal Council of Australian Apiarists, Associations (the FCAAA), which is the prescribed producers, organisation for the purposes of the Act, has requested that the AHC component of the honey levy be reduced from 2.75 cents per kilogram to zero. The FCAAA has requested the change in levy rate to be effective from the end of 1995.
Implementation of this request effectively means that from 1 January 1996, there will be no statutory levy imposed on honey to fund marketing and promotion activities through the AHC. However, there will continue to be a levy on honey to fund research and development activities through the Honey Bee Research and Development Committee of the Rural Industries Research and Development Corporation.
The attached Regulations (Amendment) change the rate of levy on honey from 2.75 cents per kilogram to a zero rate of levy effective from 1 January 1996.
Overview
The Honey Levy (No. 2) Regulations (Amendment) 1995 No. 354 was enacted to amend the Honey Levy (No. 2) Regulations, which are subsidiary legislation under the Honey Levy Act (No. 2) 1962. The primary problem this amendment addresses is the need to adjust the levy rate for honey imposed under the Honey Levy Acts to fund national market research and promotion activities for the honey industry, administered by the Australian Horticultural Corporation. The amendment was introduced in response to a request from the Federal Council of Australian Apiarists, Associations, the prescribed producers' organisation, to reduce the AHC component of the honey levy to zero, effective from the end of 1995. The enacting authority for these regulations is the Minister for Primary Industries and Energy, acting on behalf of the Governor-General, in accordance with the legislative framework provided by the Honey Levy Act (No. 2) 1962. The policy objective is to align the statutory levy with the industry's needs and feedback from relevant stakeholders.
Scope and Application
The Honey Levy (No. 2) Act 1962 applies to the honey industry across Australia, with the administration of market research and promotion activities managed by the Australian Horticultural Corporation (AHC) under the Australian Horticultural Corporation Act 1987. The Act imposes a levy on honey producers to fund these activities, with the current rate set at 2.75 cents per kilogram as prescribed by the Honey Levy (No.2) Regulations. The Act is triggered by recommendations from the prescribed producers' organisation, the Federal Council of Australian Apiarists, Associations (FCAAA), which must consult with the Australian Honey Council (ARC) before making any recommendations to the Minister. The recent amendment to the regulations reduces the AHC component of the honey levy to zero from 1 January 1996, while continuing to fund research and development activities through the Honey Bee Research and Development Committee of the Rural Industries Research and Development Corporation. The change in levy rate is effective from the end of 1995 and is implemented in response to a request from the FCAAA.
Key Provisions
The primary operative sections of the Honey Levy (No. 2) Regulations (Amendment) 1995 No. 354 include Section 7, which grants the Governor-General the authority to make regulations for the purposes of subsection 5(1)(a) of the Honey Levy Act (No. 2) 1962, and subsection 5(2), which mandates that the Governor-General must consider any relevant recommendations made by the producers' organisation before making these regulations. The amendment to the regulations reduces the rate of the honey levy from 2.75 cents per kilogram to zero, effective from 1 January 1996. This change aligns with the request from the Federal Council of Australian Apiarists, Associations, which is the prescribed producers' organisation under the Act. This amendment ensures that from 1 January 1996, there will be no levy imposed on honey to fund marketing and promotion activities through the Australian Horticultural Corporation, though a separate levy will continue to support research and development activities through the Honey Bee Research and Development Committee.
The obligations imposed by the Act on the parties involved include the requirement for the producers' organisation, the Federal Council of Australian Apiarists, Associations, to consult with the Australian Research Council before making any recommendations to the Minister regarding the rate of the honey levy. This ensures that any recommendations are well-informed and considered from multiple perspectives. Additionally, the Act requires the Governor-General to take into account these recommendations when making regulations under Section 7. This legislative process ensures that the interests of honey producers and the broader industry are represented in the decision-making process regarding the honey levy.
Failure to comply with the provisions of the Honey Levy Act (No. 2) 1962 and the amended regulations could result in civil or criminal consequences. However, the explanatory statement does not specify particular offences, penalties, or maximum penalties. In general, breaches of regulations under Australian legislation may result in fines or other penalties as prescribed by the relevant legislation, depending on the nature and severity of the breach. For specific penalties, reference to the primary Act and any relevant enforcement guidelines or case law would be necessary. It is important for parties subject to these regulations to adhere to the amended rates to avoid any potential legal repercussions.