EXPLANATORY STATEMENT
Public Lending Right Act 1985
Public Lending Right Scheme 1997 (Modification No 1 of 2005)
Issued by the authority of the Minister for the Arts and Sport
The Public Lending Right Act 1985 (the Act) provides the legislative framework for a Public Lending Right (PLR) scheme to, amongst other things, recognise the loss of income by Australian creators and publishers of books held in public lending libraries. Subsection 5(1) of the Act allows the Minister, by notice published in the Gazette to: (a) approve a scheme for and in relation to making of payments to persons in respect of books; and (b) modify the scheme so approved.
The Public Lending Right Scheme 1997 (the Scheme) was approved by the then Minister for Communications and the Arts, Senator the Hon Richard Alston, on 10 June 1997. The Scheme was published in Special Gazette No. S 213 on Thursday 12 June 1997.
The annual rates of payments to eligible creators and publishers are adjusted each year usually in line with wage cost index adjustments. A modification to the Scheme to modify the rates of payments to creators and publishers from the previous year to the current year rates are published in a Gazette.
The Public Lending Right Committee was consulted about the new PLR rates of payment at a recent Committee meeting held on 18 March 2005. The Committee consists of a Chairman, 2 members to represent Australian authors, a member to represent Australian publishers, a member to represent Australian libraries, a member from the National Library of Australia and a member from the Attorney-General’s Department. The Chairman,
Mr John Shipp, wrote to the Minister on 18 March 2005 recommending the new PLR rates of payment for creators and publishers for his consideration and approval.
In 2004-05 the PLR creator rate of payment was recommended to increase from $1.37 to $1.40 while the publisher rate of payment was recommended to increase from 34.35 cents to 35 cents.
On 16 March 2004 the Office of Regulation Review (ORR) advised that a RIS (Regulation Impact Statement) is not required for the published Gazette notice of the new PLR rates of payments for creators and publishers. ORR confirmed such changes are minor or machinery of government in nature.
Consultation was considered impractical because of the large number of creators and publishers involved and unnecessary as the changes are minor in nature.
Overview
The Public Lending Right Act 1985 was enacted to address the issue of loss of income experienced by Australian creators and publishers of books held in public lending libraries. This legislation provides the framework for a Public Lending Right (PLR) scheme, which aims to recognise and compensate for these losses. The Act empowers the Minister for the Arts and Sport to approve and modify the scheme via a notice published in the Gazette, with the overarching policy objective being to support and sustain the literary sector by ensuring fair compensation for the use of books in public libraries. The Public Lending Right Scheme 1997, approved by the Minister, sets the parameters for these payments, which are adjusted annually to reflect changes in economic conditions, specifically the wage cost index. This approach ensures that the compensation remains relevant and reflective of the economic environment, thereby maintaining the viability of the scheme.
Scope and Application
The Public Lending Right Act 1985 serves as the legislative foundation for the Public Lending Right (PLR) scheme, which is designed to compensate Australian creators and publishers of books for income lost due to the lending of their works in public libraries. This Act applies to eligible creators and publishers of books, providing them with payments to mitigate the impact of such lending. The Act's jurisdiction is nationwide, covering the entire Commonwealth of Australia. The Minister for the Arts and Sport has the authority to approve and modify the PLR scheme through notices published in the Gazette, ensuring the scheme's provisions are periodically updated in line with economic indicators such as wage cost index adjustments. The Public Lending Right Committee, which includes representatives from various stakeholders such as authors, publishers, and libraries, advises the Minister on matters pertaining to the scheme, including recommended payment rates. The application of the Act is not restricted by geographic boundaries but extends to all creators and publishers of books within the Australian jurisdiction. The Act does not specify exclusions, but the scope of the scheme is inherently limited to those who meet the eligibility criteria set forth within the approved scheme.
Key Provisions
The Public Lending Right Act 1985 (section 5(1)) establishes a legislative framework to recognise the income loss for Australian creators and publishers due to the public lending of their books. This Act allows the Minister, via a notice in the Gazette, to approve a scheme for payments to these individuals and to modify the approved scheme as necessary. The Public Lending Right Scheme 1997 was approved by the Minister on 10 June 1997 and subsequently published in Special Gazette No. S 213 on 12 June 1997. Each year, the annual rates of payments are adjusted in line with wage cost index adjustments, with modifications published in the Gazette.
The Act imposes obligations on the Minister to approve and, if necessary, modify the scheme. It also imposes responsibilities on the Public Lending Right Committee, which consults on and recommends new PLR rates of payment to the Minister. This committee comprises a Chairman, two members representing Australian authors, one member each representing Australian publishers, Australian libraries, the National Library of Australia, and the Attorney-General’s Department. In 2004-05, the Committee recommended increasing the creator rate of payment from $1.37 to $1.40 and the publisher rate from 34.35 cents to 35 cents.
The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, the Act’s purpose is to ensure fair compensation for creators and publishers, and non-compliance with the approved scheme could potentially lead to disputes or legal actions. The Office of Regulation Review has confirmed that a Regulation Impact Statement is not required for the notice of new PLR rates of payment, as these changes are considered minor or of a machinery of government nature. Furthermore, consultation with all stakeholders is deemed impractical and unnecessary due to the minor nature of the changes.