EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 63
Issued by the Authority of the Minister of State for Primary Industries and Energy.
PRIMARY INDUSTRIES AND ENERGY RESEARCH
AND DEVELOPMENT ACT 1989
PIG RESEARCH AND DEVELOPMENT CORPORATION REGULATIONS
The proposed Regulations provide for the establishment of the Pig Research and Development Corporation.
Section 8 of the Primary Industries and Energy Research and Development Act 1989 (the Act) provides for the establishment by regulation of a Research and Development Corporation in respect of a primary industry or class of primary industries and for the Corporation to be known by the name specified in the regulations.
Section 5 of the Act provides for a declaration by the regulations as to the levy to be attached to the Corporation. The whole of the research levy imposed by paragraph 6(1)a of the Pig Slaughter Lew Act 1971 is attached by the regulations to the Corporation under this provision.
Subsection 32(2) of the Act provides for a statement in the regulations as to the manner in which the Minister is to determine the amount of the gross value of production of goods that are the produce of the industry to which the levy relates, for a financial year. This is important in that subsection 32(1) of the Act limits the Commonwealth’s matching payments to the Corporation in a particular financial year to a maximum amount equal to 0.5% of the gross value of production of goods, as determined by the Minister, for that financial year.
Subsection 135(1) of the Act allows the Minister to appoint a Presiding Member of a Corporation Selection Committee if the Regulations have been made but are not yet in force. Appointment of a Presiding Member initiates the process of selecting persons suitable for appointment as Directors of the Corporation and it is important that this process be completed before the Corporation is established. It is therefore necessary that the Regulations be made well in advance of their commencement date.
The regulations will commence on 2 July 1990.
Overview
The Primary Industries and Energy Research and Development Act 1989 was enacted to address the need for coordinated and sustained research and development in Australia's primary industries. This legislation empowers the establishment of research and development corporations through regulation, aiming to enhance productivity, sustainability, and competitiveness within these sectors. The Act was passed by the Australian Parliament and its primary objective is to facilitate the creation of bodies dedicated to fostering innovation and improvement within primary industries. The Pig Research and Development Corporation Regulations 1990, issued under the authority of the Minister for Primary Industries and Energy, are an example of how this Act is implemented to target specific industries, such as the pig industry, by establishing a corporation to manage research and development activities and levy contributions. The regulations ensure the proper administration of research initiatives by detailing the levy structure, governance, and funding mechanisms.
Scope and Application
The Pig Research and Development Corporation Regulations, made under the authority of the Minister of State for Primary Industries and Energy, establish the Pig Research and Development Corporation as specified in Section 8 of the Primary Industries and Energy Research and Development Act 1989. This legislation applies to entities within the pig industry, encompassing businesses, producers, and other stakeholders involved in pig farming and related activities. The Corporation is intended to enhance research and development efforts within this sector. The regulations also stipulate that the entire research levy imposed by the Pig Slaughter Levy Act 1971 is to be attached to the Corporation, as detailed in Section 5 of the Act. This levy serves as a financial mechanism to support the Corporation’s initiatives. Furthermore, the Act mandates that the Minister determine the gross value of production of goods related to the pig industry for a financial year, which is crucial in limiting the Commonwealth’s matching payments to the Corporation to a maximum of 0.5% of this gross value, as outlined in Section 32 of the Act. The regulations also provide for the appointment of a Presiding Member of a Corporation Selection Committee, enabling the selection of suitable Directors before the Corporation’s formal establishment. These regulations are set to commence on 2 July 1990, ensuring that the necessary administrative and governance structures are in place prior to the Corporation’s operational commencement.
Key Provisions
The Pig Research and Development Corporation Regulations, issued under the Primary Industries and Energy Research and Development Act 1989 (the Act), establish the Pig Research and Development Corporation (Section 8). These regulations mandate the name of the Corporation and the specific levy attached to it, which is the whole of the research levy imposed by paragraph 6(1)(a) of the Pig Slaughter Levy Act 1971 (Section 5). Furthermore, the regulations detail the procedure for determining the gross value of production of goods for the pig industry, which is crucial as it limits the Commonwealth’s matching payments to the Corporation to a maximum of 0.5% of this value for each financial year (Section 32(2)). Additionally, the regulations permit the Minister to appoint a Presiding Member of a Corporation Selection Committee before the regulations come into force to facilitate the selection of suitable directors (Section 135(1)).
Under these regulations, the Pig Research and Development Corporation must adhere to the provisions outlined in the Act. The Corporation is responsible for managing the attached levy and ensuring that funds are directed towards research and development activities within the pig industry. The regulations require the Corporation to report on its activities and financial management to the Minister. The Minister, in turn, must determine the gross value of production of pig goods annually, which affects the level of Commonwealth funding the Corporation receives. The selection of directors must be completed before the regulations come into effect, ensuring that the Corporation has a governing body in place to manage its operations.
Breaches of the regulations or failure to comply with the Act may result in legal consequences. For instance, if the Corporation does not adhere to its reporting obligations, it may face civil penalties. The Act does not specify maximum penalties for breaches but indicates that legal action may be taken in cases of non-compliance. Additionally, failure to manage the levy correctly or misallocate funds could lead to financial penalties or recovery of improperly allocated funds. The Act and the regulations are designed to ensure that the Corporation operates within the legal framework and serves its intended purpose effectively.
The regulations provide a structured approach to establishing and managing the Pig Research and Development Corporation. By clearly defining the Corporation’s role, levy management, and reporting requirements, the Act and its regulations aim to ensure that the Corporation can effectively contribute to the research and development needs of the pig industry. The appointment of directors before the regulations come into force ensures continuity and preparedness in the Corporation’s governance. These provisions collectively support the Corporation’s objectives while maintaining oversight and accountability through the Minister.