EXPLANATORY STATEMENT
Issued by Authority of the Minister for Agriculture
Horticulture Marketing and Research and Development Services Act 2000
Horticulture Marketing and Research and Development Services (Cessation of Industry Services Body and Industry Export Control Body) Declaration 2014
Legislative Authority
Section 10 of the Horticulture Marketing and Research and Development Services Act 2000 (the Horticulture Act), provides for the Minister to declare that the body declared to be the industry services or industry export control body ceases to be the industry services or industry export control body.
Purpose
The purpose of the declaration is to cease the declaration of Horticulture Australia Limited (HAL) as the industry services body and industry export control body from the end of 3 November 2014 in accordance with section 10 of the Horticulture Act.
Background
HAL is a company limited by guarantee under the Corporations Law. HAL was formed in 2001 and was the declared industry services body and export control body under Section 9 of the Horticulture Act.
HAL’s purpose was to make research and development and marketing investment decisions, in partnership with industry, which build the value of Australian horticulture and maximise benefits to levy payers, members, government and the Australian public. HAL’s funding was derived from a combination of statutory industry levies (from growers for research and development and marketing), Commonwealth matching funds for eligible research and development activities, voluntary contributions (from grower associations, commercial enterprises, researchers and individuals), and other sources such as royalties and investments.
An independent performance review of HAL was finalised in May 2014 and recommended significant change to the industry services delivery model for horticulture, including the establishment of a new company to be declared as the industry services body.
Impact and Effect
The declaration will cease HAL’s declaration as the industry services and industry export control body and allow for a new body to be declared the industry services and industry export control body in accordance with the horticulture industry’s request.
Consultation
The need to cease HAL as the industry services body resulted from recommendations arising from an independent performance review conducted as part of HAL’s funding agreement with the Commonwealth. The review involved an extensive program of stakeholder consultation, including targeted meetings, public forums in 11 locations around Australia, an on-line survey and the receipt of 52 submissions.
The review was finalised and the findings publicly released in May 2014. The review found that conflicts of interest are constitutionally and operationally embedded in HAL, creating weaknesses in its governance, planning and performance. This is not appropriate for a body performing the function of an industry services body. The review made nine recommendations, the most important of which was that a new grower levy-payer horticulture industry owned company be formed to replace HAL, which is currently owned by horticulture industry representative bodies. HAL’s members supported this recommendation at an Extraordinary General Meeting in June 2014. At the meeting, members voted overwhelmingly to support the transition to a new company and empowered the HAL Board to do all things reasonable to facilitate this transition.
The Office of Best Practice Regulation was consulted in the preparation of the associated regulation (Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Regulation 2014) that operates in conjunction with this declaration (ID 16955).
Details of the Declaration
The declaration is compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
The declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The declaration commences on the last instance of 3 November 2014.
Attachment A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Horticultural Marketing and Research and Development Services (Cessation of Industry Services Body and Industry Export Control Body) Declaration 2014
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the declaration is to cease the declaration of Horticulture Australia Limited as the industry services body and industry export control body for the Australian horticulture industry in accordance with section 10 of the Horticulture Marketing and Research and Development Services Act 2000.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
The Hon. Barnaby Joyce MP
Minister for Agriculture