EXPLANATORY STATEMENT
Public Lending Right Act 1985
Public Lending Right Scheme 1997 (Modification No. 1 of 2007)
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 provides advice to the Minister for the Arts and Sport on the rates of payment for eligible creators and publishers. The Committee consists of a Chairman, two 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 Committee met on 16 March 2007 and the Chairman, Mr John Shipp, wrote to the Minister recommending the new PLR rates of payment for creators and publishers for his consideration and approval.
In 2006-07 the PLR creator rate of payment is recommended to increase from $1.43 to $1.47 while the publisher rate of payment is recommended to increase from 35.75 cents to 36.75 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.
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 income loss for Australian creators and publishers of books held in public lending libraries. This legislation provides the framework for a Public Lending Right (PLR) scheme that compensates eligible creators and publishers for the use of their works in libraries. The Act empowers the Minister for the Arts and Sport to approve and modify the scheme, ensuring it remains aligned with economic adjustments. The Public Lending Right Scheme 1997, approved by the then Minister for Communications and the Arts, has since been periodically updated to reflect changes in the rates of payments, typically in line with wage cost index adjustments, ensuring the scheme's relevance and effectiveness in supporting the literary community.
Scope and Application
The Public Lending Right Act 1985, supported by the Public Lending Right Scheme 1997, establishes a legislative framework aimed at recognising the financial losses incurred by Australian creators and publishers of books held in public lending libraries. This Act applies to individuals and entities involved in the creation and publication of books that are subject to public lending. The geographic reach of this legislation is national, operating within the framework of Commonwealth law. The Act allows the Minister for the Arts and Sport to approve and modify the PLR scheme through notices published in the Gazette, ensuring that annual payments to eligible creators and publishers are adjusted in line with economic indicators such as the wage cost index. The Public Lending Right Committee advises the Minister on payment rates, comprising representatives from various sectors including authors, publishers, libraries, and legal departments. This framework ensures that any modifications to payment rates are formally considered and published, maintaining transparency and fairness in the compensation process.
Key Provisions
The Public Lending Right Act 1985 (the Act) (s.5(1)) allows the Minister to approve a scheme that makes payments to eligible persons in respect of books held in public lending libraries. The Act further allows the Minister to modify this scheme by publishing a notice in the Gazette. The Public Lending Right Scheme 1997 (the Scheme), approved by the Minister for Communications and the Arts, sets out the framework for these payments. The rates of payment are adjusted annually, typically in line with wage cost index adjustments, and any modifications to these rates are published in a Gazette.
Under the Act, the Public Lending Right Committee is tasked with advising the Minister on the rates of payment for eligible creators and publishers. The Committee comprises a Chairman, two representatives for Australian authors, one each for Australian publishers and Australian libraries, a member from the National Library of Australia, and a member from the Attorney-General’s Department. The Committee convenes to recommend new payment rates, which are then considered by the Minister for approval. For example, in 2006-07, the Committee recommended increasing the creator rate of payment from $1.43 to $1.47 and the publisher rate from 35.75 cents to 36.75 cents.
The obligations imposed by the Act and the Scheme include ensuring that eligible creators and publishers receive payments in accordance with the approved rates. The Public Lending Right Committee must meet and provide recommendations to the Minister based on the current economic conditions and adjustments to the wage cost index. The Minister, in turn, is responsible for approving any modifications to the payment rates and publishing these in the Gazette. The Committee’s advice is crucial in maintaining the integrity and relevance of the payment system.
Failure to comply with the provisions of the Act or the Scheme may result in legal consequences. However, the Explanatory Statement does not explicitly detail specific offences, penalties, or consequences for breaches. Typically, breaches of legislative requirements can lead to civil or criminal liabilities, depending on the nature and severity of the non-compliance. The maximum penalties, if any, would be outlined in the relevant sections of the Act or related legislation. The absence of such details in this particular Explanatory Statement suggests that the focus is on the procedural aspects of the Scheme rather than punitive measures.