EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 244
Issued by the Authority of the Minister for Primary Industry
PIG SLAUGHTER LEVY REGULATIONS (AMENDMENT)
The Pig Slaughter Levy Act 1971 (the Act) provides for levies to be imposed on the slaughter of pigs at an abbatoir for sale for human consumption.
The Act imposes two levies, one for promotion and one for financing research. The proposed levy change concerns only the financing of industry research.
Section 8 of the Act provides that the Governor-General may make regulations for the purpose of section 6(1)(a) of the Act, which prescribes a maximum rate of levy of 20 cents per pig slaughtered.
Sub-section 6(2) requires that before making such regulations, the Governor-General shall take into consideration any relevant recommendation made by the Australian Pig Industry Research Committee and that regulations prescribing a rate of levy higher than that recommended by the Committee shall not be made.
In accordance with section 6 of the Act, the Australian Pig Industry Research Committee, supported by the
the Australian Pork Producers Federation, has recommended to the Minister an increase in the rate of levy for research purposes from 15 cents to 20 cents per pig slaughtered. The Minister has accepted the recommendation of the Committee.
The increase in levy of 5 cents per pig slaughtered by the Committee accords with the Government’s objective of encouraging rural industries to increase their contributions for research, within the next five years, to 0.5% of the industry’s gross value of production. The Government has undertaken to match the contributions of the individual industries to the same percentage level within the same time frame. The increased levy rate represents an increase from 0.13% to 0.17% of the industry’s gross value of production at present levels.
The purpose of the proposed regulations is to apply, from 1 November 1985, an operative levy for research purposes of 20 cents per pig slaughtered.
Currently the operative rate is 15 cents per pig slaughtered.
Overview
The Pig Slaughter Levy Regulations (Amendment) Statutory Rules 1985 No. 244 were enacted to amend the Pig Slaughter Levy Act 1971. The original Act was introduced to address the need for financial resources to support the promotion and research activities within the pig industry. The amendment, introduced by the authority of the Minister for Primary Industry, seeks to adjust the rate of the levy imposed on the slaughter of pigs at abattoirs for human consumption, specifically targeting the financing of industry research. The policy objective behind this amendment is to increase the industry's contribution towards research, aligning with the government's broader goal of encouraging rural industries to raise their research funding levels to 0.5% of their gross value of production over the next five years. The proposed amendment raises the levy for research purposes from 15 cents to 20 cents per pig slaughtered, effective from 1 November 1985.
Scope and Application
The Pig Slaughter Levy Act 1971 applies to entities involved in the slaughter of pigs at an abattoir for sale for human consumption in Australia. This Act imposes two distinct levies: one for the promotion of the pig industry and another for financing research within the industry. The amendments in question specifically concern the levy for financing research. The Act allows the Governor-General to establish regulations for the levy rate, which is capped at 20 cents per pig slaughtered, in accordance with recommendations from the Australian Pig Industry Research Committee. The regulations ensure that the rate of levy does not exceed the committee's recommendations. The amendment, increasing the levy from 15 cents to 20 cents per pig slaughtered, aligns with the government's policy to encourage rural industries to increase their contributions to research, aiming for 0.5% of the industry's gross value of production over the next five years. This amendment, effective from 1 November 1985, is a direct response to the committee's proposal and the government's commitment to match industry contributions.
Key Provisions
The Pig Slaughter Levy Regulations (Amendment) (C2004L00388) primarily modify the rate of the levy imposed on the slaughter of pigs for human consumption, specifically for financing research within the industry. Section 8 of the Pig Slaughter Levy Act 1971 provides the framework for the Governor-General to make regulations that align with section 6(1)(a) of the Act, which sets a maximum levy rate of 20 cents per pig. The amendment increases the levy from 15 cents to 20 cents per pig, as recommended by the Australian Pig Industry Research Committee and approved by the Minister, to support the industry's research funding goals.
The obligations under the amended regulations are primarily directed at those involved in the pig slaughter industry. This includes ensuring compliance with the new levy rate, which now stands at 20 cents per pig, and the proper accounting and reporting of these levies. The Australian Pig Industry Research Committee's role is to make recommendations to the Minister regarding the levy rate, and the industry must adhere to these recommendations. Additionally, the Act mandates that any regulations prescribing a rate higher than recommended by the Committee cannot be made, reinforcing the importance of the Committee's advice.
The regulations also outline the potential consequences for non-compliance. While specific penalties are not detailed in the explanatory statement, it is implied that breaches of the Act could lead to legal repercussions. The Act generally imposes fines or other penalties for non-compliance, but the exact penalties are not specified in the explanatory statement. It is important for industry participants to understand that failure to comply with the new levy rate could result in legal action, including potential fines or other civil penalties as stipulated in the Act. These penalties serve as a deterrent to ensure adherence to the legislative requirements and to support the industry's research objectives.