Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1994 No. 424
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 424
Issued by the Authority of the Minister for Primary Industries and Energy
Primary Industries Levies and Charges Collection Act 1991
Horticultural Levy Act 1987
Horticultural Export Charge Act 1987
Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment)
Sections 30, 14 and 14 respectively of the Primary Industries Levies and Charges Collection Act 1991, the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987 provide that the Governor-General may make regulations for the purposes of the Acts.
The Horticultural Research and Development Corporation (HRDC) co-ordinates research and development for many horticultural industries. Most of these industries contribute funds to this process by way of statutory levies and export charges, whilst some others contribute in an ad hoc manner through voluntary contributions.
Similarly, the Australian Horticultural Corporation (AHC) carries out marketing and promotion activities for many horticultural industries, in the main funded by statutory levies and export charges.
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) (the Regulations), alter the funding arrangements for the nashi industry's participation in the AHC. The Australian Nashi Growers Association requested, and the AHC and HRDC recommended, that the nashi industry's funding formulae for the AHC and HRDC be altered to reflect the more general needs of the industry. The nashi industry has decided to cease in-store promotion by the AHC and to seek assistance from the HRDC with technology acquisition by the industry to meet the quality assurance and disinfestation protocol requirements of new markets.
The Regulations will increase funding for the HRDC but result in a commensurate decrease in funding for the AHC. They will decrease funding for the AHC, by way of levy and export charge, from 17 cents per tray to 12 cents per tray for fresh fruit, from $1.53 per tonne to $1.08 per tonne for juicing nashi and from $3.06 per tonne to $2.16 per tonne for processing fruit. Simultaneously funding for the HRDC by way of levy and export charge will increase from 3 cents per tray to 8 cents per tray for fresh fruit, 27 cents per tonne to 72 cents per tonne for juicing nashi and 54 cents per tonne to $1.44 per tonne for processing fruit.
The Regulations also include some other minor amendments. These include a change from the use of penalties being expressed in dollar values to being expressed as penalty units, a penalty unit currently being one hundred dollars. This will allow, over time, omnibus changes to penalties expressed in Commonwealth Acts and Regulations to more easily be amended to reflect inflation.
Another minor amendment requests that where companies are the providers of information for the purpose of the Regulations, they must also provide their Australian Company Number (ACN).
The Regulations also removes all references to "minor first purchaser". Under the previous Regulations "minor first purchasers" were exempt from paying levy if they purchased less than 500 boxes of nashi and they were exempt from providing monthly returns. These exemptions were introduced into the Regulations to exclude people who, through their businesses, were first purchasers of leviable produce but were not substantially involved in the selling or processing of horticultural products. This unintentionally included large supermarket chains, from whom industry wanted to collect levy. Therefore the exemptions for "minor first purchasers" have been deleted by the Regulations.
The Regulations commenced on 1 January 1995.
Overview
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1994 No. 424 was enacted to address the funding and levy arrangements for the nashi industry within the Australian Horticultural Corporation and the Horticultural Research and Development Corporation. This regulation was issued under the authority of the Minister for Primary Industries and Energy and amended the Primary Industries Levies and Charges Collection Act 1991, the Horticultural Levy Act 1987, and the Horticultural Export Charge Act 1987. The key objective of these amendments was to better align the funding formulae with the industry's needs, particularly in response to the nashi industry's decision to cease in-store promotion by the AHC and to seek assistance from the HRDC for technology acquisition to meet new market requirements. The Regulations reduced the funding for the AHC by lowering the levy and export charge for fresh fruit, juicing nashi, and processing fruit, while increasing the funding for the HRDC accordingly. Additionally, the Regulations introduced minor changes such as expressing penalties in penalty units instead of dollar values, and requiring companies to provide their Australian Company Number when submitting information. These amendments came into effect on 1 January 1995.
Scope and Application
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) pertains to the nashi industry within Australia, specifically targeting entities and individuals involved in the production, sale, and processing of nashi fruit. This legislation amends the funding mechanisms and levies applicable to the nashi industry for both the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). The nashi industry, as represented by the Australian Nashi Growers Association, has requested these amendments to better align the funding structure with the industry's evolving needs, including a shift towards technology acquisition and quality assurance to meet international market standards. The regulations effectively redistribute funds from the AHC to the HRDC, reducing the levy and export charge for AHC from 17 cents per tray to 12 cents per tray for fresh fruit, and similarly adjusting levies for juicing and processing categories. Simultaneously, the levy and export charge for HRDC increases for all categories, reflecting the industry's strategic shift. These changes aim to better support the nashi industry's transition to new markets and technology enhancements. The regulations also include minor amendments such as the conversion of penalty units from dollar values to penalty units to facilitate easier adjustments for inflation and a requirement for companies to provide their Australian Company Number (ACN) when supplying information. Additionally, the amendment removes exemptions for "minor first purchasers," ensuring that all entities purchasing nashi fruit are subject to the levy and reporting requirements, thereby aligning the regulatory framework more accurately with industry needs. The regulations commenced on 1 January 1995 and apply across the Commonwealth of Australia.
Key Provisions
The Primary Industries Levies and Charges Collection (Nashi) Regulations (Amendment) 1994 No. 424 introduces key changes to the funding arrangements for the nashi industry's participation in the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). According to sections 30, 14 and 14 of the Primary Industries Levies and Charges Collection Act 1991, the Horticultural Levy Act 1987 and the Horticultural Export Charge Act 1987 respectively, these Regulations are designed to align the nashi industry's funding contributions with its current needs and market demands. The key changes include a reduction in the nashi industry's funding contribution to the AHC, and an increase in its funding contribution to the HRDC. Specifically, the levy and export charge for fresh fruit will decrease from 17 cents per tray to 12 cents per tray, while it will increase from 3 cents per tray to 8 cents per tray for the HRDC. For juicing nashi, the levy and export charge will decrease from $1.53 per tonne to $1.08 per tonne for the AHC, and increase from 27 cents per tonne to 72 cents per tonne for the HRDC. For processing fruit, the levy and export charge will decrease from $3.06 per tonne to $2.16 per tonne for the AHC, and increase from 54 cents per tonne to $1.44 per tonne for the HRDC.
The Regulations impose specific obligations and requirements on the parties governed by the Acts. Firstly, the Regulations require that the funding contributions of the nashi industry to the AHC and HRDC be adjusted as outlined above. This means that nashi growers, processors, and exporters must ensure their contributions are aligned with the new funding formulae. Furthermore, the Regulations require that penalties for non-compliance are expressed in penalty units rather than dollar values, which allows for easier adjustments in line with inflation. Another requirement is that companies providing information for the purpose of these Regulations must also provide their Australian Company Number (ACN).
Additionally, the Regulations impose consequences for breaches, although specific offences and penalties are not detailed in the explanatory statement. The change from using dollar values to penalty units is intended to streamline future adjustments to penalties, ensuring they reflect inflation. The removal of exemptions for "minor first purchasers" who previously did not have to pay levies or provide returns if they purchased less than 500 boxes of nashi is also significant. This change aims to ensure that all substantial first purchasers contribute appropriately to the funding of the AHC and HRDC.
The Regulations, which came into effect on 1 January 1995, thus establish a new framework for the nashi industry's contributions to the AHC and HRDC, ensuring that the funding structure more accurately reflects the industry's current needs and market requirements. By making these adjustments, the Regulations aim to support the industry's efforts in meeting quality assurance and disinfestation protocol requirements of new markets, as well as enhancing research and development activities.