Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1993 No. 315
EXPLANATORY STATEMENT
STATUTORY RULES 1993 No. 315
Issued by the Authority of the Minister for Primary Industries and Energy
HORTICULTURAL LEVY ACT 1987
HORTICULTURAL EXPORT CHARGE ACT 1987
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION ACT 1991
PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (NASHI) REGULATIONS (AMENDMENT)
Section 6 of the Horticultural Levy Act 1987 (the Levy Act) imposes levy on leviable horticultural products which are produced in Australia and sold or used in the production of other goods. Section 6 of the Horticultural Export Charge Act 1987 (the Charge Act) imposes export charge on chargeable horticultural products which are produced in Australia and exported. Levies and export charges imposed under the arrangements fund industry marketing and research activity through the Australian Horticultural Corporation and the Horticultural Research and Development Corporation (the Corporations).
Sections 8 and 9 of the Levy and Charge Acts provide for rates of levy and charge to be fixed for each of the Corporations by regulation. Under subsections 14(1) of the Levy and Charge Acts, the Governor-General may make regulations to give effect to the Acts. The Governor-General may also make regulations under subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 to put in place collection arrangements.
A levy and export charge under the arrangements has been in place on nashi fruit for a number of years, most recently under the Primary Industries Levies and Charges Collection (Nashi) Regulations. Production increases have led to reductions in nashi fruit prices, which have in turn meant that the levy is an increased proportional charge on growers. When supply of nashi fruit is heavy, the rate of levy/charge may be more than 5 per cent of the unit gross value of nashi fruit. Subsections 7(2) of the Levy and Charge Acts, require that the rate of levy and charge should not exceed 5 per cent of the average annual unit gross value.
In response to the increasing burden of the levy/charge, and the requirement of subsections 7(2) of the Levy and Charge Acts, an Annual General Meeting of the Australian Nashi Growers Association decided to reduce the rates of levy and export charge on fresh nashi, with effect from the commencement of the 1993 marketing season. The retrospective reduction in the rates of levy and charge will benefit the persons paying the levy or charge.
The proposed Regulations reduce the existing total rate of levy and export charge under sections 8 and 9 of the Levy and Export Charge Acts from 40 cents to 20 cents per single layer tray of fresh nashi fruit, and change the apportionment of the levy between the two Corporations. The Regulations give effect to the recommendations of the Corporations, which are consistent with the. industry request. Copies of the recommendations and a statement from the industry in support of the levy and export charge rate reduction are attached.
Subsections 14(3) and 14(4) of the Levy and Charge Acts require the Governor-General to take into account any recommendation to the Minister from the Corporations before making regulations for the purposes of fixing the rate of levy under sections 8 and 9 of the Levy and Charge Acts. Subsections 14(6) and 14(7) of the Levy and Charge Acts require the Corporations to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy to the Minister. The Australian Nashi Growers Association is the eligible industry body for nashi fruit.
Regulation 1 backdates the new rate for the levy and export charge to 1 January 1993. The retrospective reduction in the rates will benefit the persons paying the levy or charge.
Regulation 2 provides that the regulations amend the Primary Industries Levies and Charges Collection (Nashi) Regulations.
Regulation 3 replaces the levy rate schedule with a new schedule which reduces the rate of levy on fresh nashi fruit for marketing and promotion, through the Australian Horticultural Corporation, from 36 cents to 17 cents per single layer tray, and for research and development, through the Horticultural Research and Development Corporation, from 4 to 3 cents per single layer tray. The rates of levy on nashi used for juicing and processing are not altered.
Regulation 4 replaces the nashi export charge rate schedule with a new schedule which makes the same reductions to the rate of export charge as have been made to the rates of levy in regulation 3.
Overview
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1993 No. 315, issued under the authority of the Minister for Primary Industries and Energy, address the problem of the increasing financial burden on nashi fruit growers due to rising production and falling prices, which resulted in the rate of levy and export charge exceeding the statutory limit of 5 per cent of the unit gross value of nashi fruit. This legislative amendment responds to the recommendations of the Australian Nashi Growers Association and the Horticultural Corporations to reduce the levy and export charge rates for fresh nashi fruit to alleviate the financial strain on growers. The amendment, effective from the 1993 marketing season, aims to ensure compliance with the statutory cap while maintaining support for industry marketing and research.
Scope and Application
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1993 No. 315 pertains to the collection of levies and charges on nashi fruit produced in Australia, whether for domestic sale or export. The Act applies to growers and producers of nashi fruit who are responsible for paying the levy or export charge on their produce. The amendments introduced by these regulations affect the rates of the levy and export charge, aiming to alleviate the financial burden on growers as a result of declining prices due to increased production. The regulations modify the rates by reducing the total rate of levy and export charge from 40 cents to 20 cents per single layer tray of fresh nashi fruit, with changes to the apportionment between the Australian Horticultural Corporation and the Horticultural Research and Development Corporation. These changes are intended to comply with the requirement that the levy and export charge should not exceed 5 per cent of the unit gross value of nashi fruit. The amendments are effective from 1 January 1993, providing retroactive benefits to those who have paid the levy or export charge since that date. The regulations are made under the authority granted by the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987, and they ensure that the rates are consistent with recommendations from the relevant corporations after consultation with the Australian Nashi Growers Association.
Key Provisions
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1993 No. 315 introduces significant changes to the rates and apportionment of levies and export charges on nashi fruit, effective from 1 January 1993. These amendments are made under the authority of the Minister for Primary Industries and Energy and are in response to the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987. Regulation 1 specifically backdates the new rates for the levy and export charge to the start of the 1993 marketing season, providing a retrospective benefit to those paying the levy or charge. Regulation 2 formally amends the existing Primary Industries Levies and Charges Collection (Nashi) Regulations. Regulation 3 reduces the levy rate on fresh nashi fruit, decreasing the levy for marketing and promotion from 36 cents to 17 cents per single layer tray and for research and development from 4 cents to 3 cents per single layer tray. The rates for nashi fruit used for juicing and processing remain unchanged. Regulation 4 similarly reduces the export charge on nashi fruit, aligning it with the new levy rates.
These regulations impose specific obligations on the Australian Nashi Growers Association, the Australian Horticultural Corporation, and the Horticultural Research and Development Corporation. The Australian Nashi Growers Association is required to consult with the industry before recommending rates of levy to the Minister, as stipulated in subsections 14(6) and 14(7) of the Levy and Charge Acts. The Governor-General must consider recommendations from the Corporations before making regulations to fix the rate of levy, as outlined in subsections 14(3) and 14(4) of the Levy and Charge Acts. The Corporations, in turn, are responsible for implementing the new rates and ensuring they are consistent with industry requests and legislative requirements.
Breach of the regulations or failure to comply with the amended rates could potentially lead to legal consequences. Although the Explanatory Statement does not detail specific penalties, non-compliance with provisions under the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987 could result in fines or other penalties as prescribed by the Acts. The levy and export charge are fundamental to funding industry marketing and research activities, and any failure to accurately apply the new rates could disrupt these funding mechanisms and potentially lead to enforcement actions by the relevant authorities.