EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 17
Issued under the Authority of the Parliamentary Secretary to the Minister for Transport and Regional Services
Stevedoring Levy (Collection) Act 1998
Stevedoring Levy (Distribution of Surplus Levy) Regulations 2007
Section 21 of the Stevedoring Levy (Collection) Act 1998 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The Act authorises the collection of a levy from stevedores on the movement of containers and vehicles subject to the levy. The levy funds were used in the repayment of borrowings taken out by the Maritime Industry Finance Company Limited (MIFCo), an Australian Government owned company, to finance the cost of payments in connection with stevedoring industry reform.
The stevedoring levy ceased at the end of May 2006 after the Minister gave notice on 11 May 2006, under subsection 9(3) of the Act, that May 2006 would be the final levy month for the purposes of the Act. Since then the MIFCo has repaid all of the costs in connection with the stevedoring industry reform and the company members have placed the company into voluntary liquidation.
Section 19 of the Act authorises the Minister, if the Minister is satisfied that more levy has been received by the Commonwealth than is needed for the purpose for which the levy was imposed, to determine that surplus levy be distributed in accordance with a scheme prescribed by the regulations for this purpose.
The Stevedoring Levy (Distribution of Surplus Levy) Regulations 2007 provide for a two-stage return of surplus levy to the stevedoring industry. The surplus will be distributed on a pro-rata basis according to the rate of collection during the final levy month (May 2006). An amount of $1.5m has been identified for immediate return to the stevedoring industry. Further levy funds may become available following completion of the voluntary liquidation process of MIFCo. The Regulations provide the formula for the distribution of the surplus levy for both stages of the process.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
No formal consultation was undertaken in relation to these amendments as they are of a minor or machinery nature and do not substantially alter existing arrangements.
The Regulations commenced on the day after their registration on the Federal Register of Legislative Instruments.
Overview
The Stevedoring Levy (Distribution of Surplus Levy) Regulations 2007 were introduced to address the surplus funds generated from the stevedoring levy, which had ceased by the end of May 2006. Enacted under section 21 of the Stevedoring Levy (Collection) Act 1998, these regulations were issued by the Governor-General to prescribe matters necessary for the distribution of these surplus funds. The primary objective of the regulations is to ensure that the surplus levy is returned to the stevedoring industry in a structured and fair manner. The policy objective is to implement a two-stage return of the surplus levy, with an initial amount of $1.5 million returned immediately and further funds potentially available following the completion of the voluntary liquidation of the Maritime Industry Finance Company Limited. The regulations outline the formula for the pro-rata distribution based on the rate of collection during the final levy month of May 2006.
Scope and Application
The Stevedoring Levy (Distribution of Surplus Levy) Regulations 2007 pertain to the distribution of surplus funds collected under the Stevedoring Levy (Collection) Act 1998. These funds, which were initially collected from stevedores for the movement of containers and vehicles, were designated to repay borrowings incurred by the Maritime Industry Finance Company Limited in connection with stevedoring industry reform. With the completion of these repayments and the winding up of MIFCo, surplus funds have become available for redistribution. The Regulations establish a two-stage process for distributing this surplus, with an initial $1.5 million earmarked for immediate return to the stevedoring industry, calculated on a pro-rata basis according to the collection rate in May 2006, the final month of levy collection. Further funds may also become available following the conclusion of MIFCo’s liquidation. These Regulations serve to formalise the distribution scheme as mandated by the Act, and they came into effect immediately after their registration on the Federal Register of Legislative Instruments. The legislative instrument operates within the Commonwealth jurisdiction and applies specifically to the entities and transactions involved in stevedoring activities as defined under the Act.
Key Provisions
The key operative sections of the Stevedoring Levy (Distribution of Surplus Levy) Regulations 2007 (the Regulations) are informed by Section 19 of the Stevedoring Levy (Collection) Act 1998 (the Act). Section 19 of the Act authorises the Minister to determine that any surplus levy be distributed in accordance with a scheme prescribed by the regulations. This section sets the framework for the distribution of surplus funds, once it is established that more levy has been collected than is needed for the original purpose. The Regulations then detail the two-stage process for distributing the surplus levy back to the stevedoring industry, ensuring a structured and equitable return of funds.
The Regulations impose certain obligations and requirements on the parties involved in the distribution process. Firstly, the surplus levy must be distributed on a pro-rata basis according to the rate of collection during the final levy month, which was May 2006. This requirement ensures that the distribution is fair and proportional to the contributions made by each party during the levy period. Secondly, the Regulations provide a formula for the distribution, ensuring transparency and consistency in the process. These obligations are essential for maintaining the integrity and fairness of the surplus distribution process.
Under the Regulations, there are no explicit offences or penalties for breach. However, the process of surplus distribution is governed by the legal framework established by the Act and the Regulations. Any deviation from the prescribed scheme or failure to adhere to the requirements could potentially lead to legal consequences, such as challenges to the distribution process or actions for misapplication of funds. The primary focus of the Regulations is on ensuring a transparent and fair distribution of surplus funds, rather than on punitive measures for non-compliance.
The maximum potential penalties for breaches of the Act or the Regulations are not explicitly stated in the text. However, it is worth noting that the process of surplus distribution is critical and must be carried out in accordance with the legal requirements. Any failure to comply with the Act or the Regulations could result in legal action, which could have significant financial and reputational consequences for the parties involved. The emphasis is on adherence to the prescribed process to avoid any legal disputes or repercussions.
Overall, the Regulations provide a clear and structured approach to the distribution of surplus levy funds. By detailing the two-stage return process and the pro-rata distribution formula, the Regulations ensure that the surplus is returned to the stevedoring industry in a fair and transparent manner. The obligations and requirements set out in the Regulations are designed to maintain the integrity of the distribution process, while the potential consequences of non-compliance underscore the importance of adhering to the legal framework established by the Act.