EXPLANATORY STATEMENT
Public Lending Right Act 1985
Public Lending Right Scheme 1997 (Modification No. 2 of 2011)
Issued by the authority of the Minister for 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
2009-10, payments totalling $8.324 million were made to 8998 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. 2 of 2011) increases the 2010-11 creator rate of payment from $1.66 to $1.76 and the publisher rate of payment from 41.5 cents to 44 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 26 March 2010 the Office for Best Practice Regulation advised that a Regulatory Impact Statement is not required for the determination of new PLR rates of payment to creators and publishers. This confirmed the advice previously received in March 2004 from the former Office of Regulation Review (now the Office for Best Practice Regulation).
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 establish a legislative framework for a Public Lending Right (PLR) scheme. This scheme aims to recognise and compensate Australian creators and publishers for the loss of income resulting from the lending of their books in public libraries. In the 2009-10 financial year, payments totalling $8.324 million were distributed to 8998 claimants under this Act. The Public Lending Right Scheme 1997, which is subject to annual modifications, specifies the rates of payment to eligible creators and publishers. The Minister for the Arts, acting under the authority of the Act, has the power to modify these rates as necessary. The Public Lending Right Committee advises the Minister on appropriate payment rates, and the most recent modification, the Public Lending Right Scheme 1997 (Modification No. 2 of 2011), increased the creator rate from $1.66 to $1.76 and the publisher rate from 41.5 cents to 44 cents for the 2010-11 period. This modification is a legislative instrument registered under the Legislative Instruments Act 2003, and it was determined that a Regulatory Impact Statement was not required for these changes due to their minor nature and the impracticality of consulting the large number of creators and publishers involved.
Scope and Application
The Public Lending Right Act 1985 establishes the legislative framework for the Public Lending Right (PLR) scheme, which aims to compensate Australian creators and publishers of books for income lost due to their works being held in public lending libraries. This Act applies to eligible creators and publishers of books within Australia, providing them with a financial recognition of their contribution to the cultural and educational resources available through public libraries. The Public Lending Right Scheme 1997, modified by instruments such as the 2011 modification, sets the annual rates of payment for these eligible creators and publishers. The Minister for the Arts has the authority to adjust these rates, with advice from the Public Lending Right Committee, ensuring that the scheme remains effective and relevant. The geographic reach of this Act is national, encompassing all Australian creators and publishers who meet the eligibility criteria under the scheme. There are no specific exclusions or exemptions stated within the text, but the application of the Act is contingent on the eligibility of the creators and publishers as defined by the scheme's criteria. The legislative instrument, being a modification of the scheme, extends the application of the Act by updating the rates of payment.
Key Provisions
The Public Lending Right Act 1985 (the Act) and the Public Lending Right Scheme 1997 (the Scheme) together create a framework designed to compensate Australian creators and publishers for the income they lose when their books are borrowed from public lending libraries. The Act establishes the legislative basis for the Public Lending Right (PLR) scheme, which aims to recognise the financial impact on creators and publishers due to the public lending of their works. This compensation is intended to support the literary industry and ensure that creators and publishers continue to produce and publish books. Under the Act, the Public Lending Right Committee (the Committee) advises the Minister on the rates of payment to be made to eligible creators and publishers. These rates are adjusted annually through modifications to the Scheme. The Act allows the Minister to make these modifications in response to the advice provided by the Committee.
The obligations imposed by the Act and the Scheme on the parties involved are primarily directed at ensuring the smooth operation of the PLR scheme. The Minister, under the authority granted by the Act, has the responsibility to modify the rates of payment for creators and publishers in consultation with the Committee. The Committee, in turn, is tasked with providing expert advice on the appropriate rates based on a range of factors affecting the literary industry. Additionally, the Act requires that any modifications to the Scheme be registered in the Federal Register of Legislative Instruments, as stipulated by the Legislative Instruments Act 2003. This ensures that the changes are properly documented and legally enforceable.
Failure to comply with the provisions of the Act or the Scheme can result in legal consequences. While specific offences and penalties are not detailed in the Explanatory Statement, it is reasonable to infer that breaches of the Act or the Scheme could lead to civil or criminal liability, depending on the nature and severity of the breach. For instance, non-compliance with the registration requirements could be subject to the penalties outlined in the Legislative Instruments Act 2003. Additionally, any misuse of the PLR payments or failure to properly account for them could potentially lead to further legal repercussions, although exact penalties are not specified in the provided text.