EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 233
Issued by the Authority of the Minister for Primary Industries
and Energy
SUGAR CANE LEVY ACT 1987
SUGAR CANE LEVY REGULATIONS
Section 6 of the Sugar Cane Levy Act 1987 (the Act) imposes a levy on sugar cane delivered by the grower to another person other than for storage on behalf of the grower.
Section 7 of the Act provides that the rate of levy shall not exceed $0.10 per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all 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.
Subsection 9(2) of the Act provides that before making regulations for the purposes of section 7 the Governor-General shall take into consideration any relevant recommendation made to the Minister by the industry organisations, the Australian Cane Growers’ Council (ACGC), the Australian Sugar Milling Council Pty Ltd (ASMC) and the Australian Cane Farmers’ Association Ltd (ACFA).
The currently prescribed rate of levy operative since 1 July 1987 is $0.05 per tonne.
The Queensland Cane Growers’ Council (QCGC) and the New South Wales Cane Growers’ Association (NSWCGA) representing the ACGC, together with the ASMC and the ACFA have, through the Chairman of the Sugar Research Council, presented a submission to the Minister requesting that the rate of levy be increased by $0.01 to $0.06 per tonne commencing at the start of the 1990-91 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.15% to 0.17% of the industry’s estimated GVP for 1990-91.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that sugar cane levy money be paid into the Sugar Research Trust Fund and subsection 9(1) of the Research Act provides that the Sugar Research Committee may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the sugar industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Sugar Reseach Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1990-91 is $1.7 million Increased funding to meet estimated Commonwealth matching obligations in 1990-91 resulting from the proposed levy is provided for in the 1990-91 Budget.
The proposed Sugar Cane Levy Regulations to increase the rate of levy to $0.06 per tonne are to apply from 1 August 1990.