EXPLANATORY STATEMENT
STATUTORY RULES 1986 No 143
Issued by the Authority of the Minister for Finance for and on behalf of the Minister for Primary Industry.
RURAL INDUSTRIES RESEARCH REGULATIONS
The Rural Industries Research Act 1985 is concerned with the organisation and administrative arrangements under which Government and industry monies are allocated to rural industry research. Funds are allocated by Research Councils or State Research Committees representing each of the industries for which research levies are collected under Commonwealth legislation. The objects of this legislation are to ensure expenditure on rural industry research increases the commercial returns to producers and to improve accountability for expenditure on rural research and development.
Section 62 of the Rural Industries Research Act 1985 (the RIR Act) provides that the Governor-General may make regulations prescribing all matters necessary or convenient to be prescribed for giving effect to the RIR Act.
The RIR Act provides for a Research Fund and Research Council to be established for Barley, Chicken Meat, Cotton, Dairy, Dried Fruits, Honey, Oilseeds, Pigs, Poultry, Tobacco and Wheat.
Sub-sections 6(3) and (4) and 11(3) and 4 of the RIR Act provide for the establishment of a Research Trust Fund and a Research Council for commodities other than those listed above.
When the RIR Act received Royal Assent on 3 October 1985, there were no statutory research arrangements in place for grapes and wine. Legislative research arrangements for grapes and wine (the Grape Research Levy Act 1986 and the Wine Grapes Levy Act 1979) have received passage, to operate from 1 July 1986. Regulations have now been made to prescribe levy imposed by Section 6 of the Grape Research Levy Act 1986 and levy imposed by Section 5 of the Wine Grapes Levy Act 1979 and referred to in sub-paragraph 6(1)(i)(ii) and 6(1)(b)(ii). Simultaneously, the Regulations established a Grape and Wine Research Trust Fund and a Grape and Wine Research Council.
Amounts equal to the respective levies collected under the Grape Research Levy Act and the research amount under the Wine Grapes Levy Act will be paid into a Research Trust Fund established under the RIR Act. The Commonwealth will match expenditure of industry monies from the Fund on a dollar for dollar basis up to a maximum level equal to 0.5% of the average gross value of production of wine.
The prescription of the ‘research amount’ of the Wine Grapes levy under the RIR Act will ensure continuity of funding of wine research for 1986/87.
Grape Research will not begin until 1987/88 when the level of funds should be sufficient to finance a research programme. The actual level of expenditure on both grape and wine research will be determined by the Grape and Wine Research Council which will be selected and appointed as soon as possible after 1 July 1986.
S.R. No. 174/86
Overview
The Rural Industries Research Regulations, 1986, were enacted to provide the administrative framework for the Rural Industries Research Act 1985. This Act was introduced to address the need for a structured system for allocating government and industry funds towards research in rural industries, ensuring that the research conducted contributes to increased commercial returns for producers and enhances accountability for research expenditure. The Regulations were issued under the authority of the Minister for Finance on behalf of the Minister for Primary Industry, and they aim to facilitate the establishment of Research Councils and Trust Funds for various rural industries, including the newly established funds for grape and wine research. This regulatory framework supports the policy objective of fostering research and development that benefits the agricultural sector by improving productivity and commercial outcomes for producers.
The Rural Industries Research Regulations 1986 provide the necessary details to implement the Rural Industries Research Act 1985, ensuring that research funds are appropriately managed and allocated. The establishment of Research Councils and Trust Funds for specific industries, as mandated by the Act, aims to enhance the effectiveness of research funding and its impact on commercial returns for producers. The Regulations also address the specific needs of emerging industries such as grapes and wine by prescribing the research levies and setting up dedicated funds and councils. This regulatory approach ensures that research activities are aligned with industry needs and contribute to the overall goal of improving the rural industry sector's productivity and profitability.
Scope and Application
The Rural Industries Research Regulations 1986, issued under the authority of the Minister for Finance and on behalf of the Minister for Primary Industry, pertain to the Rural Industries Research Act 1985. This legislation focuses on the organisation and administrative arrangements for the allocation of government and industry funds towards rural industry research. These funds are directed by Research Councils or State Research Committees representing industries for which research levies are collected under Commonwealth legislation. The aim of this legislative framework is to enhance commercial returns for producers and to improve accountability for expenditures on rural research and development. The Regulations apply to specific rural industries such as barley, chicken meat, cotton, dairy, dried fruits, honey, oilseeds, pigs, poultry, tobacco, and wheat, with additional provisions for commodities not explicitly listed through the establishment of a Research Trust Fund and Research Council. For commodities such as grapes and wine, the Regulations establish a Grape and Wine Research Trust Fund and Council, ensuring that industry levies collected are matched by the Commonwealth up to a specified limit. These regulations extend to the entire Commonwealth of Australia, ensuring a uniform approach to research funding across all states and territories.
The scope of these Regulations includes the prescription of the levies imposed by the Grape Research Levy Act 1986 and the Wine Grapes Levy Act 1979, integrating these levies into the Research Trust Fund under the Rural Industries Research Act. The establishment of these funds and councils ensures that research initiatives are well-funded and aligned with industry needs, thereby supporting the broader objectives of the Act. The Regulations also allow for the extension or restriction of application through subordinate instruments, providing flexibility in implementation. Any exclusions or exemptions within the Regulations are directly tied to the specific provisions of the Rural Industries Research Act 1985 and the related levy acts, ensuring a comprehensive yet targeted approach to research funding in the rural industry sector.
Key Provisions
The Rural Industries Research Regulations, issued under Section 62 of the Rural Industries Research Act 1985 (RIR Act), detail the establishment and administration of Research Funds and Councils for various agricultural industries, including Barley, Chicken Meat, Cotton, Dairy, Dried Fruits, Honey, Oilseeds, Pigs, Poultry, Tobacco, and Wheat. The regulations also establish a Grape and Wine Research Trust Fund and Research Council, following the enactment of the Grape Research Levy Act 1986 and the Wine Grapes Levy Act 1979. These funds are intended to pool industry and government monies to enhance research that increases commercial returns to producers and to improve accountability for research and development expenditure (s. 6).
The regulations require the establishment of a Research Trust Fund and Research Council for commodities not already covered by the RIR Act, such as grapes and wine. They prescribe the manner in which levies are to be collected and allocated, ensuring that industry monies collected under the Grape Research Levy Act 1986 and the Wine Grapes Levy Act 1979 are deposited into the Research Trust Fund. The Commonwealth is obligated to match industry funds on a dollar-for-dollar basis, up to a maximum of 0.5% of the average gross value of wine production. The Research Council for Grape and Wine is tasked with determining the actual level of expenditure on research activities.
The RIR Act imposes obligations on various parties, including the Research Councils and Committees, to ensure the efficient and effective allocation of research funds. These entities are required to establish transparent and accountable processes for the collection of levies, the allocation of funds, and the oversight of research activities. The Research Councils must also ensure that research projects are aligned with the objectives of increasing commercial returns to producers and improving the efficiency and effectiveness of research and development efforts.
Breaches of the RIR Act or the regulations can result in various civil and criminal consequences. The Act provides for penalties for non-compliance with the regulations, including fines and, in some cases, imprisonment. The specific penalties for breaches vary depending on the nature and severity of the breach, with maximum penalties outlined in the Act. The regulations also include provisions for the recovery of funds and the imposition of administrative penalties for failure to comply with the prescribed requirements. These measures are designed to ensure that the funds are used appropriately and that the objectives of the RIR Act are achieved.