Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2000 (No. 3) 2000 No. 285
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 285
Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry
National Residue Survey (Excise) Levy Act 1998
Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2000 (No. 3)
Section 8 of the National Residue Survey (Excise) Levy Act 1998 provides that the Governor-General may make regulations prescribing matters required or permitted to be prescribed by the Act, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The purpose of the regulations is to increase the National Residue Survey Levy on horses slaughtered for human consumption from $2.50 per head to $4.20 per head.
The National Residue Survey implements chemical residue monitoring programs and recovers the costs of the programs from participating industries. These programs form the basis for documentation that enables the Australian Government to certify that raw food products bound for export and domestic consumption are free from significant chemical contamination.
The horse meat for human consumption program's finances have been directly affected by a drop in throughput numbers and the inclusion of testing for a banned growth promotant (Trenbolone) in the monitoring program.
There are only two companies involved in the slaughter of horses for human consumption and both service the niche horsemeat for human consumption markets in the European Union, mainly in France and Belgium.
Industry sources advise that throughput numbers are unlikely to rise in the short to medium term due to the lower prices being offered for surplus domestic horses and the prohibitive costs now involved in the capture and transport of feral horses under new animal welfare requirements.
The regulations to increase the horse slaughter levy rate will commence on 1 November 2000. The levy is the preferred mechanism by which the horse meat industry chooses to meet the cost of its compulsory residue monitoring program that gives horse meat access to international markets.
Overview
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2000 (No. 3), enacted in 2000, were introduced by the Australian government to address the financial constraints faced by the horse meat industry, particularly concerning chemical residue monitoring programs. The regulations were made under the authority of the National Residue Survey (Excise) Levy Act 1998, which allows for the imposition of levies to recover the costs of these monitoring programs. The key issue addressed by these regulations was the significant drop in horse slaughter numbers, compounded by the additional costs of testing for banned growth promotants, impacting the industry's ability to fund its residue monitoring program. Consequently, the regulations increased the National Residue Survey Levy on horses slaughtered for human consumption from $2.50 to $4.20 per head to ensure the financial sustainability of the monitoring programs, thereby maintaining the industry's capacity to export and supply horsemeat to international markets.
Scope and Application
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2000 (No. 3) amends the National Residue Survey (Excise) Levy Act 1998 to increase the excise levy on horses slaughtered for human consumption. The Act applies to the two entities involved in the slaughter of horses for human consumption, servicing niche markets in the European Union. The geographic reach of this amendment is national, as it pertains to the Australian horse meat industry, with the aim of ensuring that exported and domestically consumed horse meat is certified free from significant chemical contamination. The stated purpose of the amendment is to address financial shortfalls in the horsemeat residue monitoring program, exacerbated by a drop in throughput numbers and the inclusion of testing for a banned growth promotant in the program. The increase in the National Residue Survey Levy from $2.50 per head to $4.20 per head will take effect on 1 November 2000, as a measure to support the sustainability of the horsemeat residue monitoring program and maintain the industry's access to international markets. The regulations do not specify any exclusions, exemptions, or thresholds within the scope of the amendment.
Key Provisions
The primary operative sections of the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2000 (No. 3) concern the amendment of the National Residue Survey Levy on horses slaughtered for human consumption, as specified in section 8 of the National Residue Survey (Excise) Levy Act 1998. Section 2 of the Regulations increases the levy from $2.50 per head to $4.20 per head, reflecting the need to cover the costs of chemical residue monitoring programs and their impact on the industry (section 2). These regulations aim to ensure that the monitoring programs remain financially viable despite the reduced throughput numbers and additional testing requirements.
The Act imposes certain obligations and requirements on the parties it governs. Specifically, the horse meat industry, which includes the two companies involved in the slaughter of horses for human consumption, is mandated to pay the increased levy to support the National Residue Survey. This levy is crucial for the implementation of chemical residue monitoring programs that are necessary for certifying the safety of horse meat for both domestic consumption and export, particularly to markets in the European Union (section 2). The regulations ensure that the industry meets its financial obligations to maintain the integrity of the monitoring programs.
Breaches of the provisions outlined in the Act and the accompanying regulations may result in civil or criminal consequences. Although the specific penalties are not detailed in the explanatory statement, under the National Residue Survey (Excise) Levy Act 1998, penalties for non-compliance could include fines and other legal actions. The exact penalties would be determined by the relevant authorities and would be in line with the penalties prescribed under the primary Act. The failure to pay the increased levy could potentially impact the industry's ability to certify horse meat as safe, thereby affecting its access to both domestic and international markets.