EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO 199
Issued by the Authority of the Minister of State for Primary Industries and Energy.
PRIMARY INDUSTRIES AND ENERGY RESEARCH AND DEVELOPMENT ACT 1989
RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION REGULATIONS (AMENDMENT)
Section 9 of the Primary Industries and Energy Research and Development Act 1989 (the Act) establishes the Rural Industries Research and Development Corporation and provides that the regulations may specify the primary industries or class of primary industries in respect of which the Corporation is established.
Section 5 of the Act provides for a declaration by the regulations as to the levies to be attached to the Corporation. The whole of the levies imposed by section 5 of the Triticale Levy Act 1988, section 6 of the Pasture Seed Levy Act 1989 and section 5 of the Goat Fibre Levy Act 1989 is attached by the regulations under this provision.
Section 40 of the Act provides that the regulations may require a Research and Development Corporation to keep separate accounting records in relation to specified classes of research and development activities, specify the amounts to be credited and debited in the accounting records and the manner in which the amounts are to be calculated. Subsection 40(2) of the Act provides that the regulations may make provision in relation to the expenditure of monies to which the accounting records relate.
The regulations require the Rural Industries Research and Development Corporation to keep separate accounting records for each of the triticale, pasture seeds and goat fibre industries, specifies the amounts to be credited and debited to these accounts and restricts expenditure from these accounts to research and development activities and associated administrative expenses in respect of the primary industry to which the accounts relate.
Subsection 32(2) of the Act provides for a statement in the regulations as to the manner in which the Minister is to determine the amount of the gross value of production of the
goods that are the produce of the industry to which a levy relates for a financial year. This is important in that subsection 32(1) of the Act limits the Commonwealth’s matching payments to the Corporation in a particular financial year to a maximum amount equal to 0.5% of the gross value of production, as determined by the Minister, for that financial year.
The regulations will commence on 1 July 1990.
SR No. 187/90.
Overview
The Primary Industries and Energy Research and Development Act 1989 was enacted by the Parliament of Australia to address the need for coordinated and strategic investment in research and development within primary industries. The Act established the Rural Industries Research and Development Corporation to facilitate this investment and ensure that research and development efforts are aligned with industry needs. The policy objective is to enhance productivity, sustainability, and competitiveness in primary industries through targeted research and development activities. The Rural Industries Research and Development Corporation Regulations (Amendment) Statutory Rules 1990, issued under the authority of the Minister of State for Primary Industries and Energy, further refine the operation of the Corporation by specifying the industries to which levies are attached, detailing the accounting requirements, and setting the parameters for Commonwealth matching payments based on the gross value of production. These regulations ensure that funds are efficiently managed and directed towards relevant research and development activities.
Scope and Application
The Primary Industries and Energy Research and Development Act 1989 applies to the establishment and regulation of the Rural Industries Research and Development Corporation, which is tasked with managing research and development activities for specified primary industries. These industries include triticale, pasture seeds, and goat fibre, as outlined in the related levy acts. The Act’s regulations mandate that the Corporation maintain distinct accounting records for each of these industries, detailing specific amounts to be credited and debited and outlining the permissible use of these funds, limited to research and development activities and associated administrative expenses. The Act’s geographic reach is national, as it pertains to industries across Australia. The regulations also specify how the Minister determines the gross value of production, which is crucial for calculating the Commonwealth’s matching payments to the Corporation, capped at 0.5% of the gross value of production for a financial year. These regulations came into effect on 1 July 1990.
Key Provisions
The main provisions of the Rural Industries Research and Development Corporation Regulations (Amendment) Statutory Rules 1990 No. 199 are found in sections 9, 5, 40, and 32 of the Primary Industries and Energy Research and Development Act 1989. Section 9 of the Act establishes the Rural Industries Research and Development Corporation, and the regulations specify the primary industries—triticale, pasture seeds, and goat fibre—for which the Corporation is established. Section 5 of the Act allows for the attachment of levies, which, according to these regulations, includes the entire levies imposed by the Triticale Levy Act 1988, the Pasture Seed Levy Act 1989, and the Goat Fibre Levy Act 1989. These levies are to be collected and managed by the Corporation. Section 40 of the Act permits the regulations to require the Corporation to keep separate accounting records for specified classes of research and development activities. The regulations specify that the Corporation must maintain separate records for the triticale, pasture seeds, and goat fibre industries, detailing the amounts to be credited and debited, and the manner in which these amounts are calculated. Additionally, these regulations restrict the use of funds in these accounts to research and development activities and associated administrative expenses for the relevant primary industry.
The obligations imposed by these regulations on the Rural Industries Research and Development Corporation are primarily administrative and financial in nature. The Corporation is required to keep meticulous and separate accounting records for each of the specified industries. This involves detailed record-keeping of all transactions related to the triticale, pasture seeds, and goat fibre industries, ensuring that credits and debits are accurately recorded and calculated. The funds derived from the attached levies must be used strictly for research and development activities and related administrative expenses within the respective industries. Moreover, the Corporation must ensure that these activities align with the overarching objectives of the Primary Industries and Energy Research and Development Act 1989, which seeks to promote and support research and development in primary industries.
Breach of these regulations can result in civil and criminal consequences. Under subsection 32(1) of the Act, the Commonwealth’s matching payments to the Corporation are limited to 0.5% of the gross value of production, as determined by the Minister. Any mismanagement of funds or failure to comply with the regulations regarding the use and recording of these funds could lead to financial penalties or the withholding of government matching payments. Furthermore, if the Corporation fails to maintain accurate accounting records or misappropriates funds, it could face legal action, including fines and potential criminal charges. The exact penalties are not specified in the regulations but are likely to be substantial, considering the financial and administrative obligations placed on the Corporation.