Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2002 (No. 1) 2002 No. 50
EXPLANATORY STATEMENT
STATUTORY RULES 2002 No. 50
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 2002 (No. 1)
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 $4.20 per head to $5.00 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 levy is the preferred mechanism by which the horsemeat industry chooses to meet the cost of its compulsory residue-monitoring program that gives horsemeat access to international markets.
The horsemeat for human consumption program's finances have been affected by a drop in throughput numbers. 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 will commence on 1 April 2002.
Overview
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2002 (No. 1), issued under the authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry, aim to address a financial shortfall in the National Residue Survey (NRS) program for horses destined for human consumption. Enacted in response to declining numbers of horses being slaughtered for consumption, these regulations were necessitated by the National Residue Survey (Excise) Levy Act 1998, which allows for the establishment of levies to fund chemical residue monitoring programs. The policy objective of these regulations is to increase the NRS levy from $4.20 to $5.00 per head of horse slaughtered, thereby ensuring the financial sustainability of the residue-monitoring program and maintaining the industry's ability to export horsemeat to international markets. This adjustment aims to compensate for the reduced throughput and ensure that the program remains effective in certifying the safety of exported and domestically consumed raw food products.
Scope and Application
The Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2002 (No. 1) apply to the horsemeat industry in Australia, specifically to the entities involved in the slaughter of horses for human consumption. This regulation falls under the National Residue Survey (Excise) Levy Act 1998, which allows for the imposition of levies to fund chemical residue monitoring programs. The primary objective of these programs is to ensure that Australian raw food products, including horsemeat, are free from significant chemical contamination, thereby facilitating both domestic and international trade. Given the limited number of entities in the horsemeat industry and the niche markets they service, primarily in the European Union, the impact of these regulations is relatively contained. The amendments increase the levy from $4.20 to $5.00 per head, reflecting the financial pressures faced by the industry due to lower throughput numbers and increased operational costs. The regulations will come into effect on 1 April 2002, providing a timely adjustment to support the industry amidst these challenges.
Key Provisions
The primary operative sections of the Primary Industries Levies and Charges (National Residue Survey Levies) Amendment Regulations 2002 (No. 1) pertain to changes in the National Residue Survey (Excise) Levy for horses slaughtered for human consumption. Specifically, Section 1 of the regulations increases the levy from $4.20 per head to $5.00 per head (Section 3). This amendment is made under the authority granted by Section 8 of the National Residue Survey (Excise) Levy Act 1998, which allows the Governor-General to make regulations necessary or convenient for carrying out or giving effect to the Act. These regulations are designed to adjust the financial burden on the horsemeat industry to ensure the sustainability of the residue monitoring program, which is crucial for maintaining the integrity of food exports and domestic consumption.
The Act imposes several obligations and requirements on the entities it governs. Most significantly, it mandates that the horsemeat industry, including the two companies involved in the slaughter of horses for human consumption, adhere to the new levy rate. This levy is intended to cover the costs associated with the compulsory residue-monitoring program. The industry must ensure that all horses processed for human consumption are subject to the monitoring required by the National Residue Survey. This includes compliance with the residue monitoring protocols and contributing to the levy as specified by the amended regulations. The National Residue Survey itself is an integral part of the food safety framework, ensuring that raw food products are free from significant chemical contamination.
In terms of consequences for non-compliance, the regulations do not explicitly outline specific offences or penalties within the explanatory statement. However, given the regulatory framework under the National Residue Survey (Excise) Levy Act 1998, failure to comply with the provisions of the Act or the amended regulations could potentially lead to enforcement actions. Such actions might include administrative penalties or legal proceedings aimed at ensuring compliance with the mandated levies and monitoring requirements. Although the exact penalties are not detailed in the explanatory statement, the seriousness of the monitoring program and the potential impact on food safety suggest that penalties could be significant. This could encompass both civil and criminal liabilities, depending on the nature and extent of the non-compliance.