Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014

Administered by Department of Agriculture, Fisheries and Forestry

Legislation au F2014L01416 Not in force Legislative Instrument

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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 (Transfer of Industry Assets and Liabilities) Declaration 2014

 

Section 11 of the Horticulture Marketing and Research and Development Services Act 2000 (the Horticulture Act), provides for the Minister to make a declaration for the industry assets and liabilities of a body that was previously an industry services or industry export control body be transferred (under regulations) to a body that the Minister has declared (or proposes to declare) to be the next industry services body under Section 9 or, in the case of statutory records of the previous body, the Commonwealth. 

 

Purpose

The purpose of the declaration is to declare that the industry assets and liabilities from Horticulture Australia Limited (HAL) are to transfer to a new industry services body on 4 November 2014 in accordance with section 11 of the Horticulture Act.

 

Background

HAL was formed in 2001 and was the declared industry services body and export control body under Section 9 of the Horticulture Act.  As the declared industry services body and/or export control body, HAL is a company limited by guarantee under the Corporations Law. 

 

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 minimise the disruption of industry services to the horticulture industry by allowing current industry assets and liabilities to be transferred to a new industry services body once HAL has ceased to be the declared industry services body.

 

Consultation

The need to declare a new 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 flaws in its governance, planning and performance.  It 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

Details of the declaration are set out in Attachment A.

 

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 B.

 

The declaration is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 


 

Attachment A

 

Details of the Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014

 

Section 1 – Name of Declaration

 

This section provides for the title of the declaration to be the Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014

 

Section 2 – Commencement

 

This section provides for the declaration to commence on the day that it is made.

 

Section 3 – Authority

 

This section provides for the Horticulture Marketing and Research and Development Services Act 2000 to be the authority for making this declaration.

 

Section 4 – Definitions

 

This section provides for definitions of terms used in the declaration. Notes are provided on each definition below: 

 

Act

This definition means the Horticulture Marketing and Research and Development Services Act 2000.

 

Horticulture Australia Limited (ABN 19 095 566 108) means the body that was the industry services body and the industry export control body under the Act immediately before 4 November 2014.

 

next industry services body means the body that the Minister has declared, or proposes to declare, under section 9 of the Act, to be the next industry services body after Horticulture Australia Limited ceases to be the industry services body under the Act.

 

Note: See paragraph 11(1)(a) of the Act.

 

Section 5 – Transfer of industry assets and liabilities of Horticulture Australia Limited

 

Section 5 subsection (1) provides for the declaration to specify that the industry assets and liabilities in relation to Horticulture Australia Limited immediately before 4 November 2014 are to be transferred in accordance with the Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Regulation 2014.

 

Section 5 subsection (2) declares that the industry assets and liabilities (other than statutory records) in relation to Horticulture Australia Limited are to be transferred to the next industry services body.

 

Section 5 subsection (3) declares that the statutory records of Horticulture Australia Limited are to be transferred to the Commonwealth.

 

Section 5 subsection (4) declares that the day on which the industry assets and liabilities and statutory records are to transfer is 4 November 2014. 


Attachment B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) 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 declare that the industry assets and liabilities from Horticulture Australia Limited are to transfer to a new industry services body in accordance with section 11 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

 

Overview

The Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014 was enacted to address the structural deficiencies identified in Horticulture Australia Limited (HAL), which had been established in 2001 as the industry services and export control body under the Horticulture Marketing and Research and Development Services Act 2000. The declaration was made by the Minister for Agriculture under the authority granted by Section 11 of the Act, and its purpose is to facilitate the transfer of industry assets and liabilities from HAL to a new industry services body, effective from 4 November 2014. This transition was recommended following an independent performance review that highlighted governance and operational issues within HAL. The declaration ensures a smooth transfer of assets and liabilities to the new body, thereby minimising disruption to industry services. This legislative instrument was prepared in consultation with stakeholders and is compatible with human rights as it does not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014 applies specifically to the transfer of industry assets and liabilities from Horticulture Australia Limited (HAL) to a new industry services body, as mandated by Section 11 of the Horticulture Marketing and Research and Development Services Act 2000. The declaration outlines the process for transferring assets and liabilities from HAL, which was the declared industry services and export control body, to a new entity following its cessation as such on 4 November 2014. The declaration also specifies that statutory records from HAL will be transferred to the Commonwealth. This legislative instrument is applicable nationally, as it is issued under the authority of the Commonwealth of Australia and pertains to the horticultural industry across the country. The declaration is intended to ensure a smooth transition and continuity of services for the horticulture industry, thereby minimising any disruption that might otherwise arise from the change in the industry services body. The regulation, which operates in conjunction with this declaration, provides further details on the process and conditions of the transfer.

Key Provisions

The Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Declaration 2014 (the Declaration) is a legislative instrument made under section 11 of the Horticulture Marketing and Research and Development Services Act 2000 (the Horticulture Act). This declaration is instrumental in facilitating the transfer of industry assets and liabilities from Horticulture Australia Limited (HAL) to a new industry services body, effective from 4 November 2014. The transfer includes all industry assets and liabilities of HAL except for statutory records, which are to be transferred to the Commonwealth. This is specified in Section 5(1) and (2) of the Declaration, while Section 5(3) addresses the transfer of statutory records. The Declaration imposes several obligations on the parties involved. Firstly, it mandates the transfer of industry assets and liabilities from HAL to the new industry services body, as outlined in Section 5(2). This transition is intended to minimise disruption to the horticulture industry services. Secondly, it requires the transfer of statutory records to the Commonwealth, as stipulated in Section 5(3). The Declaration also ensures that the transfer occurs on the specified date, 4 November 2014, as declared in Section 5(4). Additionally, it aligns with the human rights and freedoms recognised under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2001, as confirmed in the Statement of Compatibility attached to the Declaration. Failure to comply with the provisions of the Horticulture Act and the Declaration may result in various consequences. The Horticulture Act itself does not specify detailed penalties for breaches, but breaches of related regulations and other legislative requirements could lead to civil or criminal penalties. The Horticulture Marketing and Research and Development Services (Transfer of Industry Assets and Liabilities) Regulation 2014, which operates in conjunction with this Declaration, might outline specific penalties for non-compliance. These could include fines or other sanctions as stipulated in the regulations. Additionally, failure to properly transfer assets and liabilities could disrupt the continuity of services and potentially lead to financial and operational liabilities for the involved parties.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.