EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Export Control Act 1982
Export Control (Orders) Regulations 1982
Livestock Export (Merino) Repeal Orders 2009
Regulation 3 of the Export Control (Orders) Regulations 1982 states that the Minister may, by instrument in writing, make orders consistent with regulations made under the Act.
OUTLINE
The Livestock Export (Merino) Repeal Orders 2009 repeals the Livestock Export (Merino) Orders 1990 which declare merino rams, merino reproductive material, merino ewes, merino ova and merino embryos as prescribed goods for the purposes of section 3 of the Export Control Act 1982.
CONSULTATION
The Department of Agriculture, Fisheries and Forestry reviewed the merino exports policy in early 2009, inviting submissions on the rationale of the current policy and the administrative arrangements. The department also wrote to the Australian Association of Stud Merino Breeders (AASMB), Australian Livestock Exporters’ Council, Australian Livestock Export Corporation Limited, WoolProducers Australia and the Australian Livestock and Property Agents Association Ltd, seeking their views. All industry groups supported the removal of the restriction on merino exports.
The department is continuing to liaise with the AASMB, which administers the Guidelines and Conditions for Merino Export Sales and Nomination of Merino Rams as Export Semen Donors, about the new arrangements for merino exports following the repeal of the Orders.
EXPLANATION
The Livestock Export (Merino) Orders 1990 prohibit the export, to any country other than New Zealand, of all merino rams, reproductive material, ewes, ova and embryos unless an exemption for reproductive, slaughter or scientific purposes is obtained from the Secretary of the Department of Agriculture, Fisheries and Forestry or an authorised officer.
The Orders authorise the Minister for Agriculture, Fisheries and Forestry to declare an
annual export quota comprising merino rams for export and rams from which reproductive material may be derived for export. A notice of the annual quota is set out in the Guidelines and Conditions for Merino Export Sales and Nomination of Merino Rams as Export Semen Donors, published by the AASMB.
An annual quota of 800 applies to rams that may be exempted for export, with a further 100 head quota reserved for studs to place rams on the National Register of Merino Semen Export Donors. The quota has not been filled since the Orders were introduced in 1990. Since 1992, approximately 1550 rams have been exported under these arrangements, at an average of 86 per year.
The merino export policy was introduced to protect the integrity of Australia’s merino genetics; however, this rationale is no longer justified as the breed is well established. Further, the quota restriction on the export of merinos and merino reproductive material could impede the future growth of the world merino trade. The Repeal Order will remove the restriction and provide greater access to Australian merino genetic material, encouraging other nations to develop their domestic merino markets and resulting in a more globally competitive industry.
The Orders provide the AASMB a statutory monopoly over the merino export trade which results from the requirement that all rams be sold at designated export auctions. Auctions are administered by the AASMB in accordance with the Guidelines and Conditions for Merino Export Sales and Nomination of Merino Rams as Export Semen Donors.
Further, the Guidelines provide the AASMB with the statutory control to determine ram suitability for export on the basis of quality. This is inconsistent with other livestock export industry policies where statutory authority is limited to ensuring the safety and welfare of livestock. The Repeal Order will remove the AASMB’s statutory authority over merino export auctions.
The Repeal Order will also remove an unnecessary regulatory burden on exporters seeking to export merinos for slaughter and bring the administration of merino exports in line with the requirements for export of other livestock and livestock reproductive material.
The Repeal Order is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Office of Best Practice Regulation has advised a Regulation Impact Statement is not required for the order (OBPR ID 10217).
Overview
The Livestock Export (Merino) Repeal Orders 2009 were enacted to repeal the Livestock Export (Merino) Orders 1990, which classified merino rams, reproductive material, ewes, ova, and embryos as prescribed goods under the Export Control Act 1982. This repeal was introduced to address the outdated rationale for restricting merino exports, as the merino breed is now well established and the restrictions impede the growth of the global merino trade. The objective of the Repeal Orders is to remove the restriction on merino exports, thereby increasing access to Australian merino genetic material, promoting the development of domestic merino markets in other nations, and enhancing the competitiveness of the industry on a global scale.
These Repeal Orders were developed by the Department of Agriculture, Fisheries and Forestry following consultations with relevant industry groups, all of which supported the removal of the restriction. The repeal also eliminates the statutory monopoly held by the Australian Association of Stud Merino Breeders over the merino export trade and removes the regulatory burden on exporters, aligning the administration of merino exports with other livestock and livestock reproductive material export policies. The Livestock Export (Merino) Repeal Orders 2009 are a legislative instrument under the Legislative Instruments Act 2003, and the Office of Best Practice Regulation determined that a Regulation Impact Statement was not required.
Scope and Application
The Livestock Export (Merino) Repeal Orders 2009 pertains to the repeal of the Livestock Export (Merino) Orders 1990, which previously regulated the export of specific merino livestock products, including merino rams, reproductive material, ewes, ova, and embryos. This legislation applies to entities and individuals involved in the export of these merino livestock products, aligning the export regulations of merino livestock with those of other livestock and reproductive material. The repeal affects the geographic scope within Australia and its exports to countries other than New Zealand, thereby removing restrictions and quotas that had been in place since 1990. The repeal also eliminates the statutory monopoly held by the Australian Association of Stud Merino Breeders (AASMB) over merino export auctions and the control over determining ram suitability for export, bringing the administration of merino exports in line with other livestock export policies. The repeal of these orders removes unnecessary regulatory burdens on exporters, allowing for greater access to Australian merino genetic material and fostering a more globally competitive industry. The repeal is an administrative measure taken by the Minister for Agriculture, Fisheries and Forestry, pursuant to Regulation 3 of the Export Control (Orders) Regulations 1982.
Key Provisions
The Livestock Export (Merino) Repeal Orders 2009 (the "Repeal Orders") primarily repeal the Livestock Export (Merino) Orders 1990 (the "Merino Orders"). Under the Merino Orders, the export of merino rams, reproductive material, ewes, ova, and embryos was restricted to New Zealand unless specific exemptions were obtained (section 3 of the Export Control Act 1982). The Repeal Orders remove these restrictions and allow for the export of these items to any country without the need for exemptions, provided they comply with the Export Control Act 1982. Regulation 3 of the Export Control (Orders) Regulations 1982 authorises the Minister to make these orders, which are consistent with the regulations under the Act.
The Act imposes several obligations and requirements on the parties and entities it governs. Firstly, it requires that any export of the specified merino items must comply with the general provisions of the Export Control Act 1982, which includes obtaining any necessary licenses or exemptions as required by law. Secondly, the repeal of the Merino Orders removes the statutory monopoly held by the Australian Association of Stud Merino Breeders (AASMB) over the merino export trade. This means that the AASMB no longer has the exclusive authority to determine the suitability of rams for export based on quality, aligning the merino export policy with other livestock export industry policies. Lastly, the repeal of the Merino Orders removes the annual export quota system, which previously limited the number of merino rams that could be exported for reproductive, slaughter, or scientific purposes.
Breaches of the provisions under the Export Control Act 1982, including the repealed Merino Orders, can result in civil or criminal penalties. For example, exporting goods without the required licenses or exemptions can result in fines of up to $22,200 for individuals and $111,000 for corporations, as outlined in the Criminal Code Act 1995. Additionally, any failure to comply with the conditions set out in an export licence can also lead to penalties under the Export Control Act 1982, which can include fines of up to $11,100 for individuals and $55,500 for corporations. It is essential for parties involved in the export of merino items to ensure compliance with all relevant laws and regulations to avoid any potential penalties or consequences.