EXPLANATORY STATEMENT
Public Lending Right Act 1985
Public Lending Right Scheme 1997 (Modification No. 1 of 2009)
Issued by the authority of the Minister for the Environment, Heritage and the Arts.
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. In
2007-08, payments totalling $7.64 million were made to 8,938 claimants.
The Public Lending Right Scheme 1997 (the Scheme) provides for the annual rates of payment to eligible creators and publishers, which are adjusted each year by modifying the Scheme. The Minister can make modifications to the Scheme pursuant to paragraph 5(1)(b) of the Act.
The Public Lending Right Committee (the Committee), established under the Act, provides advice to the Minister on the rates of payment for eligible creators and publishers. Taking into account the advice of the Committee, the Minister has determined to modify the rates of payment.
The Public Lending Right Scheme 1997 (Modification No. 1 of 2009) increases the 2008-09 creator rate of payment from $1.57 to $1.61 and the publisher rate of payment from 39.25 cents to 40.25 cents.
The modification is a legislative instrument within the meaning of the Legislative Instruments Act 2003. The gazettal requirement in subsection 5(1) of the Act is taken to be satisfied if the instrument is registered in the Federal Register of Legislative Instruments (subsection 56(1) of the Legislative Instruments Act 2003).
On 16 March 2004 the former Office of Regulation Review (now the Office for Best Practice Regulation) advised that a Regulation Impact Statement is not required for the determination of new PLR rates of payment 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 experienced by Australian creators and publishers of books held in public lending libraries. This legislation provides the framework for the Public Lending Right (PLR) scheme, which aims to recognise and compensate for this loss. In the 2007-08 financial year, payments totalling $7.64 million were distributed to 8,938 claimants. The Public Lending Right Scheme 1997, which is modified through legislative instruments, outlines the annual rates of payment to eligible creators and publishers. The Parliament of Australia authorised the Minister for the Environment, Heritage and the Arts to make modifications to the scheme, with the objective of ensuring fair compensation for creators and publishers. The Public Lending Right Committee, established under the Act, advises the Minister on appropriate rates of payment, leading to the recent modification that increased the creator rate of payment from $1.57 to $1.61 and the publisher rate from 39.25 cents to 40.25 cents for the 2008-09 financial year.
Scope and Application
The Public Lending Right Act 1985 applies to Australian creators and publishers of books held in public lending libraries, aiming to recognise and compensate for the loss of income due to public lending. The Act provides a legislative framework for the Public Lending Right (PLR) scheme, which includes annual payments to eligible creators and publishers. The scheme operates nationally, with payments adjusted annually by modifying the Public Lending Right Scheme 1997 through legislative instruments, as authorised by the Act. The Minister for the Environment, Heritage and the Arts is responsible for making modifications to the Scheme, with advice from the Public Lending Right Committee. The 2009 modification increased the rates of payment for creators and publishers, reflecting the ongoing need to compensate for income lost to public lending. The Act’s scope is limited to those directly involved in the creation and publishing of books that are subject to public lending, with no specific exclusions noted beyond the scope of the scheme itself.
Key Provisions
The Public Lending Right Act 1985 (section 5) allows the Minister for the Environment, Heritage and the Arts to make modifications to the Public Lending Right Scheme 1997. These modifications include adjusting the annual rates of payment to eligible creators and publishers, which are intended to compensate for the loss of income due to the public lending of their books. The recent modification, Public Lending Right Scheme 1997 (Modification No. 1 of 2009), has increased the 2008-09 creator rate from $1.57 to $1.61 and the publisher rate from 39.25 cents to 40.25 cents. The Public Lending Right Committee, established under the Act, advises the Minister on the appropriate rates of payment, taking into account various factors relevant to the creators and publishers.
Under the Public Lending Right Act 1985 (section 5(1)(b)), the Minister is obligated to consider the advice of the Public Lending Right Committee when determining the rates of payment for eligible creators and publishers. The Committee provides expert advice on the appropriate rates, ensuring that the payments are fair and reflective of the current economic conditions and the impact of public lending on the income of creators and publishers. The Minister is required to make modifications to the Scheme annually, adjusting the rates as necessary to maintain the scheme's effectiveness and fairness.
Breach of the provisions of the Public Lending Right Act 1985 or the Public Lending Right Scheme 1997 (Modification No. 1 of 2009) could result in legal consequences. However, the explanatory statement does not detail specific offences or penalties for non-compliance with the Act or the Scheme. It is important to note that the legislative instrument is registered in the Federal Register of Legislative Instruments, fulfilling the gazettal requirement under the Legislative Instruments Act 2003. The Office for Best Practice Regulation has advised that a Regulation Impact Statement is not required for the determination of new PLR rates of payment due to the impracticality of consultation with the large number of creators and publishers involved and the minor nature of the changes.