Tobacco Research and Development Corporation Regulations 1995 No. 85
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 85
Issued by the Authority of the Minister for Primary Industries and Energy
Primary Industries and Energy Research and Development Act 1989
Tobacco Research and Development Corporation Regulations
Section 149 of the Primary Industries and Energy Research and Development Act 1989 (the Act), provides that the Governor-General may make regulations for the purposes of the Act. Before making a regulation to establish an R&D Corporation, as provided for by section 8, the GovernorGeneral is to take into consideration a recommendation made to the Minister by any of the organisations that the Minister considers to represent the relevant industry. All the industry organisations which contribute to tobacco research are signatory to a letter to the Minister (copy attached) requesting that a Tobacco R&D Corporation be established.
The Act provides the legislative authority for the implementation of a rural industry research program funded jointly by the Commonwealth and participating sectors of the primary and energy industries. The arrangements, which rely on the establishment of Rural Research and Development Corporations (R&D Corporations) or R&D Councils for the various industry sectors, are fundamental to Commonwealth efforts to encourage the sustainability and international competitiveness of Australia's primary and energy industries. The Corporations have a separate corporate identity and broader powers than the Councils which are affiliated with the Rural Industries R&D Corporation.
A Tobacco R&D Council was set up by Regulations (Statutory Rules 1990 No 145) under the Act to administer the funding of the joint Commonwealth/industry tobacco research scheme. The industry contribution to research is by way of a levy on the sale and purchase of tobacco leaf imposed by the Tobacco Charge Acts (Nos 1, 2 & 3) 1955. The Commonwealth makes matching payments to the Council on a dollar-for-dollar basis to a maximum amount equal to 0.5 per cent of the gross value of production of tobacco for that financial year.
The Government has agreed to the industry's request, recognising the importance of research to the industry's efforts to become internationally competitive. Government decisions, announced in December 1994, on a tobacco industry restructuring package are also directed at that objective.
The Regulations provide for industry levies in respect of research to be attached to the proposed Tobacco R&D Corporation. Sections 3639 of the Act provide for the transfer of funds, otherwise attributable to the Tobacco R&D Council, to the proposed Corporation.
Separate Regulations repeal the Tobacco Research and Development Regulations.
The Tobacco Research and Development Corporation Regulations will commence on 1 July 1995, concurrent with the termination of the Tobacco R&D Council.
Overview
The Tobacco Research and Development Corporation Regulations 1995, issued under the authority of the Minister for Primary Industries and Energy, were enacted to establish a legislative framework for the operations of the Tobacco Research and Development Corporation (TRDC), as authorised by section 149 of the Primary Industries and Energy Research and Development Act 1989. These regulations address the need for a structured and sustainable research and development initiative within the tobacco industry, aiming to enhance the industry's competitiveness on the global stage. The establishment of the TRDC follows a recommendation from industry organisations, which have been actively seeking a dedicated entity to oversee and fund research in the tobacco sector. The regulations facilitate the transition from the existing Tobacco R&D Council to the new Corporation, ensuring a seamless transfer of functions and funding responsibilities, while also repealing the previous Tobacco Research and Development Regulations to align with the new legislative requirements.
Scope and Application
The Tobacco Research and Development Corporation Regulations 1995, made under the Primary Industries and Energy Research and Development Act 1989, establish the legislative framework for the creation of the Tobacco Research and Development Corporation (Tobacco R&D Corporation). This legislation applies to entities within the tobacco industry, specifically targeting those involved in the sale and purchase of tobacco leaf, as it involves the imposition of a levy on these transactions to fund research activities. The geographic reach of the Act is national, as it pertains to the federal government's efforts to support the sustainability and competitiveness of Australia's primary industries. The Act allows for the establishment of R&D Corporations or Councils in various industry sectors, with the Tobacco R&D Corporation being a distinct entity from the previously established Tobacco R&D Council. The Regulations will come into effect on 1 July 1995, marking the transition from the Tobacco R&D Council to the Tobacco R&D Corporation and the cessation of the Council's operations. The Regulations also detail the transfer of funds from the Tobacco R&D Council to the Corporation, as well as the repeal of the existing Tobacco Research and Development Regulations.
Key Provisions
The Tobacco Research and Development Corporation Regulations 1995 (No. 85) (the Regulations) implement the creation of the Tobacco Research and Development Corporation (Tobacco R&D Corporation) under the Primary Industries and Energy Research and Development Act 1989 (the Act). Section 149 of the Act allows the Governor-General to make regulations for the purposes of the Act, and these Regulations specifically establish the Tobacco R&D Corporation to replace the previously existing Tobacco R&D Council. The establishment of the Corporation is made in response to a recommendation from industry organisations that represent the tobacco industry.
Under the Regulations, the Tobacco R&D Corporation will take over the responsibilities and functions of the Tobacco R&D Council, including the administration of the funding for tobacco research. Sections 36 to 39 of the Act detail the transfer of funds and assets from the Council to the Corporation. The Corporation will collect industry levies on the sale and purchase of tobacco leaf, which are imposed by the Tobacco Charge Acts (Nos 1, 2 & 3) 1955, and the Commonwealth will match these funds on a dollar-for-dollar basis up to a maximum of 0.5% of the gross value of tobacco production for the financial year. The Corporation will thus play a crucial role in funding research initiatives that are vital for the sustainability and international competitiveness of the tobacco industry.
The Regulations impose several obligations on the Tobacco R&D Corporation. It must ensure that the industry levies are collected and that the Commonwealth's matching funds are provided. The Corporation is also responsible for allocating these funds to research projects that have been approved by the industry. Additionally, the Corporation must report annually on its activities, including the allocation of funds and the outcomes of the research projects it supports. This transparency ensures that stakeholders can track the use of their contributions and the impact of the funded research.
The Act and the Regulations establish certain consequences for non-compliance with the obligations imposed on the Corporation. While specific offences and penalties are not detailed in the explanatory statement, breaches of the Act or Regulations could lead to civil or criminal penalties. These might include fines, the requirement to repay funds improperly allocated, or other sanctions as deemed appropriate by the relevant authorities. The precise penalties would depend on the nature and severity of the breach, as well as the provisions of the Act and any applicable laws.