EXPLANATORY STATEMENT
STATUTORY RULES 1986 No. 2
Issued by the Authority 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 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 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.
When the Act received Royal Assent on 3 October 1985, the Grain Legumes research arrangements were not in place. Sections 6(3) and 11(3) of the Act provide for the establishment of a Research Trust Fund and a Research Council for commodities other than those listed above.
The new Grain Legumes research arrangements provide for the Grain Legumes Levy Act 1985 and the Grain Legumes Levy Collection Act 1985 to operate from 1 November 1985. Funds raised by the levy will be used to finance research into grain legumes pursuant to the Act. The Levy Acts provide for an initial levy rate of 75 cents per tonne of Grain Legumes processed or delivered. Amounts equal to the levy collected will be paid into a Research Trust Fund established under the 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 leviable Grain Legumes.
Research under the scheme will begin in 1986/87 when the level of funds should be sufficient to finance a research programme. The actual level of expenditure on research will be determined by the Grain Legumes Research Council which will be selected and appointed by 1 February 1986.
Overview
The Rural Industries Research Act 1985 was enacted to establish a framework for the organisation and administration of funds allocated for rural industry research, ensuring that expenditure on such research enhances the commercial returns for producers and improves accountability. This Act, passed by the Australian Parliament, seeks to address the need for structured and effective management of research funds contributed by both the government and industry stakeholders. It facilitates the creation of a Research Fund and a Research Council for specified rural industries, ensuring that research initiatives are aligned with the commercial needs of producers.
To further this objective, the Rural Industries Research Regulations 1986 were introduced, enabling the Governor-General to make necessary regulations to implement the Act. These regulations support the establishment of a Research Trust Fund and a Research Council for commodities not initially covered by the 1985 Act, such as Grain Legumes. The accompanying Grain Legumes Levy Acts of 1985 introduced a levy mechanism to fund research into grain legumes, with the Commonwealth matching industry contributions from the Research Trust Fund. This legislative framework aims to ensure that research activities are adequately funded and aligned with the commercial interests of the producers.
Scope and Application
The Rural Industries Research Act 1985 applies to a range of specified rural industries, including Barley, Chicken Meat, Cotton, Dairy, Dried Fruits, Honey, Oilseeds, Pigs, Poultry, Tobacco, and Wheat. The Act establishes a framework for the allocation of government and industry funds to research initiatives within these sectors, overseen by Research Councils or State Research Committees. The Act’s scope extends to the establishment of a Research Fund and a Research Council for any additional commodities not initially included at the time of the Act's enactment, as specified in sections 6(3) and 11(3). This allows for the incorporation of Grain Legumes research through the Grain Legumes Levy Act 1985 and the Grain Legumes Levy Collection Act 1985, which commenced operation from 1 November 1985. The Act ensures that funds raised from levies are directed towards research aimed at enhancing commercial returns to producers and improving accountability in research and development expenditure. The Act operates nationally, with its provisions applicable across Australia, reflecting the federal nature of agricultural research funding and oversight. The regulations made under section 62 of the Act further detail the operational mechanisms and administrative arrangements necessary to implement the Act’s objectives.
Key Provisions
The Rural Industries Research Regulations (2004) primarily establish the framework for the administration of funds allocated for rural industry research under the Rural Industries Research Act 1985. The regulations, issued under section 62 of the Act, provide for the establishment of Research Funds and Research Councils for specified commodities (s. 2). These funds and councils are designed to manage the allocation of government and industry monies to research initiatives that enhance commercial returns for producers and improve accountability in research spending (s. 3). The Act mandates that the funds be used to finance research activities that are directly beneficial to the respective industries, ensuring that the research aligns with industry needs and objectives.
The obligations imposed by the Act on the parties involved include the establishment and management of the Research Funds and Research Councils. The Research Councils are responsible for the allocation of funds within their respective industries, ensuring that the funds are directed towards research projects that have the potential to improve productivity, quality, and market access for the commodities they represent (s. 4). Additionally, the councils must report on the expenditure and outcomes of research projects to maintain transparency and accountability (s. 5). The Research Trust Funds, established under sections 6(3) and 11(3) of the Act, are managed by the councils to ensure that the funds are used in accordance with the Act’s objectives.
Breaches of the regulations can result in civil and criminal consequences. While the specific offences and penalties are not detailed in the regulations themselves, breaches of the Rural Industries Research Act 1985 can result in penalties that include fines and, in some cases, imprisonment. The maximum penalties are determined by the severity of the breach and are stipulated in the relevant sections of the Act. It is important for entities governed by these regulations to adhere strictly to the prescribed procedures to avoid facing legal repercussions.