EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 108
Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Customs) Charges Act 1999
Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 2)
Statutory Basis
Section 8 of the Primary Industries (Customs) Charges Act 1999 (the Act) provides that the Governor-General may make regulations, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Schedule 14 clause 2 of the Act allows the regulations to impose a charge.
Purpose of the Regulations
The purpose of the Regulations is to vary the apportionment of the charge on the export of certain live animals between marketing and research and development pursuant to the Australian Meat and Live-stock Industry Act 1997. The Australian Livestock Export Corporation Ltd (LiveCorp) is declared as the relevant livestock export marketing body and the livestock export research body. This is in accordance with the outcome agreed by the Government in its response to the “Live-stock Export Review”, chaired by Dr Keniry (the Keniry Review).
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Background to the Regulations
The Keniry Review recommended that the Australian Livestock Export Corporation Ltd (LiveCorp) be responsible for research and development, marketing, improved quality assurance and capability for the live export industry (Recommendation 2).
On 30 March 2004, the Government announced its support for this recommendation as part of its response to the Keniry Review, and that these new bodies would be funded by way of a compulsory Customs Charge. This would replace the voluntary contribution system which had previously been in place.
The current apportionment in the Primary Industries (Customs) Charges Regulations 2000 (the Principal Regulations) allows LiveCorp to expend 90 per cent of revenue raised on marketing and 10 per cent of revenue raised on research and development. These figures are consistent with those initially put forward by industry, as they approximated historical expenditure patterns on marketing and research and development. Further consultation led to agreement between industry and government that a more appropriate apportionment would be for 80 per cent of revenue raised to be expended on marketing and 20 per cent to be expended on research and development to better reflect an increased emphasis on research and development, particularly in the area of animal welfare, as a result of the Keniry Review. There would be no increase in the overall charge.
DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2005 (No. 2)
Explanation of Clauses Under the Regulations
Regulation 1 provides for the citation of the regulations.
Regulation 2 provides that the regulations will commence on 1 July 2005.
Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000.
Schedule 1 amends Schedules 2 and 11 of the Primary Industries (Customs) Charges Regulations 2000.
Schedule 2, subclause 2 (1) is substituted to amend the charge rates to be applied to cattle to those requested by the body specified in the declaration (i.e. the live-stock export marketing and research body) (as stipulated in Clause 5 of Schedule 2 of the Customs Charges Act). The rate will be 0.5712 of a cent per kilogram for marketing.
Schedule 2, subclause 2 (2) is substituted to amend the charge rate to be applied to cattle to 0.1428 of a cent for research.
Schedule 11, subclause 2 (1) is substituted to amend the charge rate to be applied to sheep to 24 cents per head for marketing.
Schedule 11, subclause 2 (2) is substituted to amend the charge rate to be applied to sheep to 6 cents per head for research.
Schedule 11, subclause 3 (1) is substituted to amend the charge rate to be applied to lambs to 24 cents per head for marketing.
Schedule 11, subclause 3 (2) is substituted to amend the charge rate to be applied to lambs to 6 cents per head for research.
Schedule 11, subclause 4 (1) is substituted to amend the charge rate to be applied to goats to 20 cents per head for marketing.
Schedule 11, subclause 4 (2) is substituted to amend the charge rate to be applied to goats to 5 cents per head for research.
Overview
The Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 2) were enacted to implement changes to the apportionment of charges levied on the export of certain live animals. These regulations were introduced in response to recommendations from the Keniry Review, which aimed to reform the live export industry. The Australian Livestock Export Corporation Ltd (LiveCorp) was designated as the body responsible for marketing and research and development for livestock exports. This shift in responsibility was to be funded through a compulsory Customs Charge, replacing the previous voluntary contribution system. The primary objective of these regulations is to adjust the distribution of revenue raised by LiveCorp, allocating 80% towards marketing and 20% towards research and development, reflecting a greater emphasis on animal welfare as recommended by the Keniry Review. The regulations were made under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, and aim to align with the government's commitment to enhancing the industry's standards and practices.
Scope and Application
The Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 2) are subordinate legislation enacted under the authority of the Primary Industries (Customs) Charges Act 1999. These Regulations apply to the apportionment of charges on the export of certain live animals between marketing and research and development, with the Australian Livestock Export Corporation Ltd (LiveCorp) designated as the relevant livestock export marketing and research body. This designation follows the recommendations of the Keniry Review and the government's subsequent agreement to implement a compulsory Customs Charge to replace the former voluntary contribution system. The Regulations, which commenced on 1 July 2005, modify the apportionment of these charges to reflect an increased emphasis on research and development, particularly in animal welfare. Specifically, 80 per cent of the revenue raised will now be allocated to marketing, while 20 per cent will be allocated to research and development. The Regulations adjust the charge rates for cattle, sheep, lambs, and goats, with the new rates specified in Schedules 2 and 11 of the Primary Industries (Customs) Charges Regulations 2000. The Regulations apply nationally across Australia, and they are intended to provide a structured and transparent mechanism for funding the marketing and research activities of LiveCorp in the live export industry.
Key Provisions
The Primary Industries (Customs) Charges Amendment Regulations 2005 (No. 2) (the Regulations) amend the Primary Industries (Customs) Charges Regulations 2000 (the Principal Regulations) by varying the apportionment of charges on the export of certain live animals between marketing and research and development. The key provisions of these Regulations include the establishment of the Australian Livestock Export Corporation Ltd (LiveCorp) as the relevant livestock export marketing body and the livestock export research body, as mandated by the Australian Meat and Livestock Industry Act 1997. Regulation 1 cites the regulations, while Regulation 2 sets the commencement date as 1 July 2005. Regulation 3 provides that the Regulations amend the Principal Regulations, and Schedule 1 further details these amendments.
These Regulations impose obligations on LiveCorp to allocate funds raised from the Customs Charge in a specific ratio towards marketing and research and development. Schedule 2 and Schedule 11 of the Principal Regulations are amended to reflect this new apportionment, with 80 per cent of the charge dedicated to marketing and 20 per cent to research and development. For cattle, the new charge rate is 0.5712 of a cent per kilogram for marketing and 0.1428 of a cent for research. For sheep, lambs, and goats, the new charge rates are 24 cents per head for marketing and 6 cents per head for research, 24 cents per head for marketing and 6 cents per head for research, and 20 cents per head for marketing and 5 cents per head for research, respectively.
The Regulations also outline potential consequences for non-compliance. While the explanatory statement does not explicitly detail offences or penalties, breaches of the Primary Industries (Customs) Charges Act 1999 may result in both civil and criminal penalties as prescribed under the Act. Civil penalties can include fines, while criminal penalties can include imprisonment. The maximum penalties would depend on the specific nature and severity of the breach, as defined in the primary legislation. It is crucial for parties governed by these Regulations to adhere strictly to the prescribed charge rates and apportionments to avoid any legal repercussions.