EXPLANATORY STATEMENT

Select Legislative Instrument 2007 No. 261

Issued by the 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 2007 (No. 8)

Section 8 of the Primary Industries (Customs) Charges Act 1999 (the Charges 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.

The Charges Act provides for a range of charges on specified primary industry products.  Clause 2 of Schedule 14 to the Charges Act provides that the regulations may impose a charge on one or more specified products in circumstances ascertained in accordance with the regulations.  Subclause 13 (2) of Schedule 14 to the Charges Act provides that if there is a body designated in relation to a particular product, and before the Governor-General makes regulations, the portfolio Minister must take into consideration any relevant recommendation made to the Minister by the designated industry body.

The Regulations provide a mechanism to enable certain plant industries to fund their share of the costs of responding to emergency plant pests and diseases under the Government and Plant Industry Cost Sharing Deed in Respect of Emergency Plant Pest Responses, also referred to as the Emergency Plant Pest Response Deed (EPPRD).

The Regulations also make some minor corrections and clarifications to the Charges Regulations.

The EPPRD commenced on 26 October 2005.  The parties to the EPPRD are the Australian Government, the state and territory governments and plant industries.  Under the EPPRD, the Australian Government, relevant state and territory governments and affected plant industry members will share the eligible costs incurred in responding to emergency plant pests and diseases.  The Australian Government has agreed to underwrite industry liabilities under the EPPRD.  In turn, the EPPRD requires plant industry parties to have a funding mechanism in place that would enable them to repay the Australian Government in the event that the Government underwrites the industry parties’ shares of the costs of a response to a categorised plant disease affecting their production crops. 

The Regulations impose Emergency Plant Pest Response (EPPR) charges set at a zero operative rate on almonds, avocados, cherries, citrus, dried vine fruits, macadamia nuts, and mangoes.  As appropriate, these charges could be activated to a positive rate, following further industry consultation, to repay Government underwriting of affected industries’ share of the costs of an EPPR, or for other emergency plant pest-related purposes such as surveillance.

Details of the Regulations are contained in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Office of Best Practice Regulation has advised that the preparation of a Business Cost Calculator or a Regulation Impact Statement is not mandatory (OBPR ID: 2007/9284).

In accordance with the Government’s Levy Guidelines and Principles, levy payers within relevant industries have been consulted on the imposition of EPPR charges.  Following consultation, the relevant representative industry organisations (Almond Board of Australia, Avocados Australia, Cherry Growers Australia, Australian Citrus Growers, Australian Dried Fruit Association, Australian Macadamia Society and Australian Mango Industry Association), on behalf of their respective industries, have recommended to the Minister that the EPPR charges be introduced.

The Regulations commence on the day after they are registered.

ATTACHMENT

DETAILS OF THE PRIMARY INDUSTRIES (CUSTOMS) CHARGES AMENDMENT REGULATIONS 2007 (No. 8).

Regulation 1 provides for the name of the Regulations to be the Primary Industries (Customs) Charges Amendment Regulations 2007 (No. 8).

Regulation 2 provides for the Regulations to commence on the day after they are registered.

Regulation 3 provides that Schedule 1 amends the Primary Industries (Customs) Charges Regulations 2000.

SCHEDULE 1    AMENDMENTS

Item 1 inserts a definition of “EPPR charge” in order to clarify that EPPR charge is described in the Plant Health Australia (Plant Industries) Funding Act 2002, rather than in the primary legislation, the Primary Industries (Customs) Charges Act 1999 (the Charges Act).

Horticultural products

Item 2 omits the definition of charge from Schedule 10, Part 1, clause 1.1.  This definition is redundant as charge is defined in clause 1.1 of Part 1 of Schedule 22 of the Primary Industries Levies and Charges Collection Regulations 1991 (the Collection Regulations).

Horticultural products – almonds

Item 3 creates a new division, Division 2.1 of Part 2 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 2.  This new division retains the existing provisions relating to charge on almonds imposed under Schedule 10 to the Charges Act.

Item 4 creates a new division, Division 2.2 of Part 2 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 2.5 of Schedule 10, Part 2.  Item 4 also inserts a new clause 2.6 that establishes the new EPPR charge on almonds and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the Plant Health Australia (Plant Industries) Funding Act 2002 (the PHA Act).

Horticultural products – avocados

Item 5 creates a new division, Division 4.1 of Part 4 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 4.  This new division retains the existing provisions relating to charge on avocados imposed under Schedule 10 to the Charges Act.

Item 6 creates a new division, Division 4.2 of Part 4 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 4.5 of Schedule 10, Part 4.  Item 6 also inserts a new clause 4.6 that establishes the new EPPR charge on avocados and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.

Horticultural products – cherries

Item 7 creates a new division, Division 5.1 of Part 5 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 5.  This new division retains the existing provisions relating to charge on cherries imposed under Schedule 10 to the Charges Act.

Item 8 creates a new division, Division 5.2 of Part 5 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 5.5 of Schedule 10, Part 5.  Item 8 also inserts a new clause 5.6 that establishes the new EPPR charge on cherries and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.

Horticultural products – citrus

Item 9 creates a new division, Division 7.1 of Part 7 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 7.  This new division retains the existing provisions relating to charge on citrus imposed under Schedule 10 to the Charges Act.

Item 10 omits clause 7.4A of Part 7 of Schedule 10.  This removes the existing provisions relating to PHA charge on citrus, in order to allow PHA charge to be included in the proposed new division dealing with special purpose charges and to rationalise the order and numbering of clauses within Schedule 10, Part 7.

Item 11 creates a new division, Division 7.2 of Part 7 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 7.5 of Schedule 10, Part 7.  This new division deals with charges imposed on citrus under clause 2 of Schedule 14 to the Charges Act.  Item 11 inserts a new clause 7.6 that specifies the rate of PHA charge on citrus, the authority under which the charge is imposed and who pays the charge.  New subclause 7.6(1) reduces potential ambiguity by clarifying that PHA charge is imposed on “citrus on which charge is imposed by Schedule 10 to the Charges Act”.  Subclauses 7.6 (2) and (3) contain the same provisions as the equivalent subclauses to be omitted (7.4A (2) and (3)). Item 11 inserts two notes after these clauses.  The first note provides an explanation of PHA charge by referencing the PHA Act.  The second note provides a reference to relevant definitions within Schedule 22 of the Collections Regulations. Item 11 also inserts a new clause 7.7 that establishes the new EPPR charge on citrus and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.

Horticultural products – dried vine fruits

Item 12 inserts a new clause 9.3 that establishes the new EPPR charge on dried vine fruits and specifies the authority under which the charge is imposed, the rate of charge (nil) and who will pay the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.

Horticultural products – macadamia nuts

Item 13 creates a new division, Division 10.1 of Part 10 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 10.  This new division retains the existing provisions relating to charge on macadamia nuts imposed under Schedule 10 to the Charges Act.

Item 14 creates a new division, Division 10.2 of Part 10 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 10.5 of Schedule 10, Part 10.  Item 14 also inserts a new clause 10.6 that establishes the new EPPR charge on macadamia nuts and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.

Horticultural products – mangoes

Item 15 creates a new division, Division 21.1 of Part 21 of Schedule 10, through the insertion of a new title, Product charge, after the heading in Schedule 10, Part 21.  This new division retains the existing provisions relating to charge on mangoes imposed under Schedule 10 to the Charges Act.

Item 16 creates a new division, Division 21.2 of Part 21 of Schedule 10, through the insertion of a new title, Special purpose charges, after clause 21.5 of Schedule 10, Part 21.  Item 16 also inserts a new clause 21.6 that establishes the new EPPR charge on mangoes and specifies the authority under which the charge is imposed, the rate of charge (nil) and who pays the charge.  In addition, this item inserts a new note that provides an explanation of EPPR charge by referencing the relevant legislation, the PHA Act.