EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO 134
Issued by the Authority of the Minister for Primary Industry.
RURAL INDUSTRIES RESEARCH REGULATIONS
Section 62 of the Rural Industries Research Act 1985 (the Act) provides that the Governor-General may make regulations prescribing all matters necessary or convenient to be prescribed for giving effect to the Act.
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.
Sections 5, 6 and 11 of the Act provide for regulations to declare a levy and to establish a Research Council and Trust Fund in respect of a particular commodity. To date, research arrangements are in place for a range of commodities including barley, wheat, cotton, oilseeds, pigs and poultry.
Sugar cane is not a listed commodity. However, legislation to establish a research levy for sugar cane received Royal Assent on 26 May 1987. The Sugar Cane Levy Act 1987 and the Sugar Cane Levy Collection Act 1987 provide that all sugar cane accepted for milling by a sugar mill on and after 1 June 1987 is leviable at the rate of 5 cents per tonne for the purposes of sugar research pursuant to the provisions of the Act.
Consequently, an amendment to the Rural Industries Research Regulations has been made to formally add sugar cane to the commodities covered by the Act. Specifically, the amendment confirms that the whole of the levy is to be used for sugar research. It also establishes a Sugar Research Council and a Sugar Research Trust Fund to provide the machinery for operating the research scheme.
Amounts equal to levy collected will be paid into the Trust Fund. 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 sugar.
The Sugar Research Council will be selected and appointed as soon as possible after 1 July 1987. It will then begin developing an appropriate sugar research program. The actual level of expenditure on sugar research will be determined by the Council but it is expected that annual programs in the vicinity of $2 million could commence from 1988/89.
Overview
The Rural Industries Research Regulations, 1987, were introduced to amend the Rural Industries Research Regulations to include sugar cane as a commodity under the Rural Industries Research Act 1985. This legislative change was necessary to formally incorporate sugar cane into the framework for allocating government and industry funds to rural industry research. The Rural Industries Research Act 1985 was enacted by the Parliament of Australia to establish a system for the allocation of funds for research into various rural industries, ensuring that research expenditure enhances commercial returns for producers and improves accountability. The regulations were issued under the authority of the Minister for Primary Industry to align with the objectives of the Act and to address the need for a structured approach to funding sugar cane research. The policy objective of these regulations is to ensure that research funds are effectively managed and utilised to benefit the sugar industry, thereby supporting the growth and development of the sector.
Scope and Application
The Rural Industries Research Act 1985 governs the allocation of government and industry funds for rural industry research, with a focus on enhancing commercial returns for producers and improving accountability for research expenditure. The Act applies to entities involved in rural industries, including Research Councils and State Research Committees which represent industries for which research levies are collected. These regulations pertain to various commodities such as barley, wheat, cotton, oilseeds, pigs, and poultry. Notably, the Act has been amended to include sugar cane, which is now subject to a levy for funding sugar research, as per the Sugar Cane Levy Act 1987 and the Sugar Cane Levy Collection Act 1987. The amendment establishes a Sugar Research Council and a Sugar Research Trust Fund, ensuring that the levy collected is entirely allocated to sugar research. The Commonwealth will match industry contributions up to 0.5% of the average gross value of sugar production, with anticipated annual research expenditures around $2 million starting from 1988/89.
Key Provisions
The Rural Industries Research Regulations, established under Section 62 of the Rural Industries Research Act 1985, lay out the framework for how government and industry funds are allocated to rural industry research. These regulations are designed to ensure that research activities increase commercial returns to producers and improve the accountability of expenditures on rural research and development. They include specific provisions for declaring a levy, establishing a Research Council, and setting up a Trust Fund for various commodities (Sections 5, 6, and 11). Currently, research arrangements are in place for a variety of commodities such as barley, wheat, cotton, oilseeds, pigs, and poultry.
The regulations have been amended to formally include sugar cane as a covered commodity. This amendment ensures that the entire levy collected from sugar cane will be directed towards sugar research. It also establishes a Sugar Research Council and a Sugar Research Trust Fund to manage the research scheme. The Commonwealth has committed to matching industry funds from the Trust Fund on a dollar-for-dollar basis, up to a maximum of 0.5% of the average gross value of sugar production. The Sugar Research Council is to be appointed as soon as possible after 1 July 1987 and will be responsible for developing an appropriate research program. It is anticipated that annual research expenditures could reach around $2 million starting from the 1988/89 financial year.
Parties governed by these regulations have specific obligations and requirements. Firstly, they must ensure that all sugar cane accepted for milling by a sugar mill on and after 1 June 1987 is subject to the specified levy of 5 cents per tonne. Secondly, the collected levy must be deposited into the Sugar Research Trust Fund. The Sugar Research Council, once appointed, must develop and implement a research program that aligns with the objectives of the Act. They are also responsible for determining the actual level of expenditure on sugar research. Additionally, the Commonwealth is obligated to match industry funds from the Trust Fund on a dollar-for-dollar basis, up to the specified maximum level.
Failure to comply with the provisions of these regulations may result in various penalties and consequences. Although the exact nature of the penalties is not specified within the explanatory statement, it is clear that breaches could lead to civil or criminal liabilities under the Rural Industries Research Act 1985. The potential penalties may include fines, legal action, and other administrative consequences. The specific details and maximum penalties would typically be outlined in the main body of the Act or in further subsidiary legislation.