EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry.
Dairy Produce Act 1986
Supplementary Dairy Assistance Scheme 2001 Variation (No. 8)
Clause 37B of Schedule 2 of the Dairy Produce Act 1986 requires the Minister formulate a scheme - the Supplementary Dairy Assistance Scheme - to grant payment rights to eligible entities.
Subsection 13 (1A) of the Supplementary Dairy Assistance Scheme 2001 allows the Minister for Agriculture, Fisheries and Forestry to make eligibility determinations for discretionary payment rights to eligible entities at any time after 1 January 2003.
Section 37Y of Schedule 2 of the Dairy Produce Act 1986 allows the Supplementary Dairy Assistance Scheme to be varied.
OUTLINE
The purpose of the Variation is to remove the Minister’s authority to make eligibility determinations for discretionary payment rights under the Supplementary Dairy Assistance Scheme 2001. The Variation is required to formally close the Dairy Industry Adjustment Program.
CONSULTATION
Dairy Australia Limited has been consulted about this Variation. Dairy Australia is the dairy industry services body and trustee of the Dairy Structural Adjustment Fund into which receipts from the Dairy Adjustment Levy were appropriated and used for Supplementary Dairy Assistance Scheme 2001 payments.
EXPLANATION
The Supplementary Dairy Assistance Scheme 2001 formed part of the Dairy Industry Adjustment Program, which was introduced in 2000 to assist dairy farmers, their families and dairy dependant communities to adjust to deregulation.
The Dairy Industry Adjustment Program was funded by the Dairy Adjustment Levy which was applied to retail sales of drinking milk from 8 July 2000 until 22 February 2009. Levy receipts were held in the Dairy Structural Adjustment Fund.
The Supplementary Dairy Assistance Scheme 2001 allowed for additional quarterly payments to dairy farmers who were most heavily impacted by deregulation. Three types of payment rights were offered:
- basic milk payment rights;
- additional market milk payment rights; and
- discretionary payment rights (which allowed the Minister for Agriculture, Fisheries and Forestry to make payments to farmers affected by a significant event, crisis or anomalous circumstances).
The application period for the basic market milk and additional market milk payment rights has closed and no further payments can be made. There is no time limit on the Minister’s authority to grant discretionary payment rights to eligible entities.
Final payments under the Dairy Industry Adjustment Program were made to farmers in April 2008 and the Dairy Adjustment Levy was terminated from 23 February 2009. The Dairy Structural Adjustment Fund is expected to be closed by 30 June 2009.
The Office of Best Practice Regulation has advised a Regulation Impact Statement is not required for the declaration (OBPR ID: 9790).
The Variation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Details of the Variation are as follows:
Section 1 provides the name of the Variation to be Supplementary Dairy Assistance Scheme 2001 Variation (No.8).
Section 2 provides that the Variation commences on the day after it is registered.
Section 3 provides that the Variation varies the Supplementary Dairy Assistance Scheme 2001.
Schedule 1 – Amendments
Item 1 provides that subsection13 (1A) applies only until this variation commences. Section 13 (1A) sets out the requirements for the Minister to determine whether a discretionary grant under the Supplementary Dairy Assistance Scheme can be made.
Item 2 provides that the Minister can no longer make discretionary grants under the Supplementary Dairy Assistance Scheme 2001 after this variation comes into effect.
Overview
The Supplementary Dairy Assistance Scheme 2001 Variation (No. 8), enacted in 2009, aims to amend the Supplementary Dairy Assistance Scheme under the Dairy Produce Act 1986 by removing the Minister for Agriculture, Fisheries and Forestry's authority to make discretionary payment rights to eligible entities. This change was necessary to formally close the Dairy Industry Adjustment Program, which was introduced to help dairy farmers and communities adjust to industry deregulation. The Variation was formulated to ensure that no further discretionary grants can be made after its implementation, thereby bringing the Supplementary Dairy Assistance Scheme into alignment with the termination of the Dairy Adjustment Levy and the closure of the Dairy Structural Adjustment Fund. This legislative action was taken in consultation with Dairy Australia Limited, the industry services body and trustee of the fund from which payments were made.
Scope and Application
The Supplementary Dairy Assistance Scheme 2001 Variation (No. 8) applies to the Supplementary Dairy Assistance Scheme 2001 under the Dairy Produce Act 1986, specifically targeting the discretionary payment rights that the Minister for Agriculture, Fisheries and Forestry could grant to eligible entities. This Variation operates within the Commonwealth jurisdiction and is designed to formally close the Dairy Industry Adjustment Program, which was introduced to support dairy farmers, their families, and dairy-dependent communities during the period of deregulation. The Variation removes the Minister's authority to make discretionary payment rights under the Scheme, effective from the day after the Variation is registered. The scheme, which was funded by the Dairy Adjustment Levy applied to retail sales of drinking milk from 2000 until 2009, provided various payment rights including basic, additional market, and discretionary payments to dairy farmers significantly affected by deregulation, crisis, or anomalous circumstances. The final payments under the Dairy Industry Adjustment Program were made in April 2008, and the Dairy Adjustment Levy ceased on 23 February 2009. This legislative instrument does not require a Regulation Impact Statement and operates in accordance with the Legislative Instruments Act 2003.
Key Provisions
The Supplementary Dairy Assistance Scheme 2001 Variation (No. 8) modifies the Supplementary Dairy Assistance Scheme 2001, as outlined in Clause 37B of Schedule 2 of the Dairy Produce Act 1986, which allowed the Minister for Agriculture, Fisheries and Forestry to grant discretionary payments to eligible entities under specific conditions. This variation, detailed in Section 37Y of Schedule 2, removes the Minister's authority to make such discretionary eligibility determinations after the variation comes into effect. This change is crucial for formally closing the Dairy Industry Adjustment Program, which was established to support dairy farmers and their communities through the deregulation period.
Under the original Supplementary Dairy Assistance Scheme 2001, three types of payment rights were available: basic milk payment rights, additional market milk payment rights, and discretionary payment rights. The latter allowed the Minister to respond to significant events, crises, or anomalous circumstances affecting dairy farmers. However, with the introduction of this variation, the Minister can no longer make discretionary grants under the scheme after the variation takes effect, as stipulated in Item 2 of Schedule 1.
The variation imposes specific obligations on the Minister and eligible entities. The Minister must adhere to the new conditions set forth in the variation, effectively ceasing the ability to grant discretionary payments after the variation's commencement. Eligible entities that were previously under the Supplementary Dairy Assistance Scheme must comply with the new rules and understand that discretionary payments will no longer be an option. The variation serves to formally close the program by ensuring no further discretionary grants can be made.
Failure to comply with the provisions of the variation may result in legal consequences. Although the document does not specify exact penalties, breaches of the Dairy Produce Act 1986 and its associated schemes can lead to civil or criminal penalties, depending on the severity of the breach. The maximum penalties for breaches of related provisions in the Dairy Produce Act 1986 can include fines, imprisonment, or both. The exact penalties would be determined in accordance with the relevant sections of the Act and any additional legislative provisions.