EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 136
Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
Primary Industries (Excise) Levies Act 1999
Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 3)
Section 8 of the Primary Industries (Excise) Levies 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.
The Act provides for a range of levies on specified primary industry products. Clause 2 of Schedule 27 to the Act provides that the regulations may impose a levy on one or more specified products in circumstances ascertained in accordance with the regulations. Clause 6 of Schedule 27 to the Act provides that the rate of levy is ascertained in accordance with the regulations. Schedule 16 to the Act provides for a levy on laying chickens.
The Newcastle disease outbreaks in May and October 2002 at Meredith in Victoria and Horsley Park in NSW respectively were the first disease outbreaks to be dealt with under the provisions of the Emergency Animal Disease Response Agreement (EADRA). The EADRA, approved by the Government in March 2002, provides for Commonwealth underwriting of the industry share of the costs of dealing with an emergency animal disease outbreak where industries cannot pay for those costs immediately. These costs are the costs associated with eradicating the disease outbreak, such as animal destruction and fumigation of premises. On 1 April 2003 new levy arrangements were inserted into the Primary Industries (Excise) Levies Regulations 1999 to allow the livestock industries (including the chicken meat and chicken egg industries) to fund their obligations under the EADRA.
Initially the Emergency Animal Disease Response (EADR) levies were set at zero, with the exception of the honey-bee industry. In 2004, operative rates were set for the EADR levy in respect of the chicken meat and egg industries, as follows:
- EADR levy for chicken meat: 0.033 cents per meat chicken; and
- EADR levy for chicken eggs: 1.5 cents per laying chicken.
These were intended allow the chicken meat and egg industries to repay the debt to the Commonwealth, incurred during the Newcastle disease outbreaks at Meredith, Victoria and Horsley Park, NSW, over a five (5) and two (2) year period respectively.
The Regulations return the EADR levy for laying chickens to zero, as the egg industry’s share of the costs of dealing with the emergency disease outbreaks has now been fully repaid.
Subclause 14 (2) of Schedule 27 to the Act provides that if there is a body designated in relation to a particular product, then before the Governor-General makes regulations in relation to that product, the Minister must take into consideration any relevant recommendation made to the Minister by the designated industry body. The designated body for the egg industry is the Australian Egg Corporation Limited (formerly the Australian Egg Industry Association Inc.).
In accordance with these provisions, the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry has considered the recommendation of the Australian Egg Corporation Limited that the existing EADR levy be reduced to nil.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on 1 July 2006.
Overview
The Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 3) were enacted to address the issue of funding for the costs associated with emergency animal disease outbreaks, specifically the Newcastle disease outbreaks in 2002. These regulations amend the Primary Industries (Excise) Levies Regulations 1999 to adjust the levies on laying chickens under the Emergency Animal Disease Response (EADR) framework, which was established to allow the livestock industries, including the chicken meat and egg industries, to fund their obligations under the EADRA. The EADR levies were initially set to help the chicken meat and egg industries repay the debt incurred during the 2002 outbreaks over a set period. The 2006 amendment, issued by the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, considers a recommendation from the Australian Egg Corporation Limited to reduce the EADR levy for laying chickens to zero, reflecting that the egg industry’s share of the costs has been fully repaid. The regulations are a legislative instrument under the Legislative Instruments Act 2003 and came into effect on 1 July 2006.
Scope and Application
The Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 3) applies to the chicken egg industry, specifically targeting entities and individuals involved in the production and sale of laying chickens in Australia. These regulations are a subset of the broader Primary Industries (Excise) Levies Act 1999, which governs various levies on specified primary industry products. The regulations are designed to implement the Emergency Animal Disease Response (EADR) levies, which were initially introduced to assist the chicken meat and egg industries in repaying the debt incurred due to the Newcastle disease outbreaks in 2002. The EADR levies, as amended by these regulations, were set to allow the industries to fund their obligations under the Emergency Animal Disease Response Agreement (EADRA) over a specified period. The regulations also outline the process for setting the rates of these levies and require consultation with designated industry bodies, such as the Australian Egg Corporation Limited, before any changes are made. Effective from 1 July 2006, these amendments return the EADR levy for laying chickens to zero, reflecting the completion of the egg industry's repayment of the debt associated with the emergency disease outbreaks.
Key Provisions
The Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 3) modify the Primary Industries (Excise) Levies Act 1999, specifically targeting the Emergency Animal Disease Response (EADR) levies for the chicken meat and egg industries. According to section 8 of the Act, these regulations are permissible because they prescribe matters necessary for implementing the Act. Schedule 16 of the Act deals with levies on laying chickens, and the new regulations amend these provisions. The amendments respond to the recommendation by the Australian Egg Corporation Limited, the designated body for the egg industry, to reduce the EADR levy to zero, which has been taken into consideration by the Minister as per subclause 14(2) of Schedule 27 to the Act. Consequently, the EADR levy for laying chickens has been returned to zero, reflecting the full repayment of the industry's debt related to the Newcastle disease outbreaks.
These regulations impose obligations on the egg industry to ensure compliance with the new levy rates set forth. They require that the industry adhere to the new zero-rate EADR levy for laying chickens, which takes effect from 1 July 2006. The regulations mandate that industry bodies like the Australian Egg Corporation Limited provide recommendations to the Minister concerning the EADR levies, as stipulated by subclause 14(2) of Schedule 27 to the Act. The Minister must consider these recommendations before making any new regulations. This ensures that industry input is factored into the legislative process, thereby promoting fairness and industry-specific understanding of the financial implications.
The Act and accompanying regulations also outline consequences for non-compliance. While the specific offences and penalties are not detailed in the provided excerpt, the general legislative framework under which these regulations operate implies potential penalties for failure to comply with the EADR levies. These penalties could include fines or other civil and criminal sanctions, which are typically commensurate with the severity and intent behind the non-compliance. The exact nature and severity of these penalties would be further defined within the broader scope of the Primary Industries (Excise) Levies Act 1999 and any subsidiary legislation. The overarching goal of these provisions is to ensure that the industry can meet its financial obligations without undue hardship, while also safeguarding the public interest in disease control and industry stability.