Wheat Marketing Regulations (Amendment) 1994 No. 458
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 458
Issued by Authority of the Minister for Primary Industries and Energy
Wheat Marketing Act 1989
Wheat Marketing Regulations (Amendment)
Subsection 94(1) of the Wheat Marketing Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
The definition of "grain" in subsection 3(1) of the Act, was amended by the Primary Industries and Energy Legislation Amendment Act (No. 2) 1994, which received Royal Assent on 21 October 1994, to provide that:
(i) the Australian Wheat Board (AWB) can conduct the limited functions of research, seed testing and seed certification (value-adding activities) on pasture seeds, horticultural seeds and tree seeds, or any other seeds declared by the regulations (paragraphs (a) and (b) in the definition); and
(ii) the AWB can undertake all its functions on the products specified in the definition (all the common cereals, oilseeds and grain legumes, as well as rice, millet and canary seed), and on any products of the soil declared by the regulations to be "grain" for the purposes of the Act (paragraph (c) of the definition). This allows the AWB to undertake trade, value-adding activities, research and other functions conferred by the Act and complementary State legislation, in respect of these grains and their products.
Since the Act was amended no other seeds or products of the soil have been prescribed under paragraphs (a) and (b), or (c) of the definition respectively.
The main purpose of the Regulations is to expand the definition of "grain" under paragraph (c), to declare canola and cottonseed to be "grain" for all purposes of the Act. These changes were requested by the AWB to allow it to trade in these grains. Canola is a particular type of rapeseed used to produce edible oil. The AWB can already trade in rapeseed, but since the Act was originally drafted in 1989, canola, which is separately identified by the industry because of its properties, has taken over as the predominate type of rapeseed produced. Cottonseed is a by-product of cotton used to produce both an edible oil and a stockfeed. Its addition to the definition of "grain" will give the AWB coverage of all the major oilseeds and enable it to offer a wider range of stockfeed products to its customers. Furthermore, cotton production is, in some cases, undertaken as part of a grain cropping program by wheat farmers and the inclusion of cottonseed is therefore consistent with the AWB's objective to provide Australian graingrowers with a choice of marketing options, by participating in the grain market. The changes are also consistent with the AWB's corporate planning objectives of broadening its business base to other grain and value-adding activities, as a means of increasing grower returns.
The Regulations will repeal a previous amendment to the Wheat Marketing Regulations which expanded the definition of "grain" in the Act, as it was prior to the above-mentioned amendment to the Act, to include pasture seeds, tree seeds and horticultural seeds.
The prior definition of "grain" reflected the current provisions in paragraph (c), and pasture seeds, tree seeds and horticultural seeds were prescribed under that definition to allow the AWB to test a full range of seeds, following the takeover of the Victorian Department of Agriculture's seed testing laboratory by the AWB's Academy of Grain Technology. Although the consequence of making those regulations was to enable the AWB to undertake other functions, including trade, in respect of those seeds, the AWB did not seek to do that. There was no scope under the Act at the time to allow some of the AWB's functions to be applied to only some of the products included in the definition of "grain".
Details of the Regulations are set out below:
Regulation 1 - Provides for amendment of the Wheat Marketing Regulations.
Regulation 2 - Omits Regulation 2A which prescribed pasture seeds, tree seeds and horticultural seeds as "grain" under the prior definition of "grain" in the Act.
A new Regulation 2A extends the definition of "grain" for the purposes of the Act, to include canola and cottonseed.
The Regulations commenced on Gazettal.
Overview
The Wheat Marketing Regulations (Amendment) 1994 No. 458 was issued by the Minister for Primary Industries and Energy under the authority of the Wheat Marketing Act 1989. The main objective of the Regulations is to amend the definition of "grain" to include canola and cottonseed, thereby allowing the Australian Wheat Board (AWB) to trade in these grains. This change responds to the evolving nature of the grain industry, where canola has become the predominant type of rapeseed produced and cottonseed is often produced as part of grain cropping programs. The policy objective is to provide Australian graingrowers with a wider range of marketing options and to support the AWB's broader business objectives of increasing grower returns by expanding into other grain and value-adding activities. The Regulations also repeal previous amendments that had expanded the definition of "grain" to include pasture, tree, and horticultural seeds, which the AWB did not seek to trade in. The Regulations came into effect upon gazette.
Scope and Application
The Wheat Marketing Regulations (Amendment) 1994 No. 458 applies to the Wheat Marketing Act 1989 and amends the Wheat Marketing Regulations to expand the definition of "grain" to include canola and cottonseed, which are both significant in the Australian agricultural sector. This amendment enables the Australian Wheat Board (AWB) to trade in these grains, broadening its market options and supporting its business diversification objectives. The amendment reflects the industry's shift towards canola, which has become the predominant type of rapeseed produced since the original Act was drafted in 1989. Cottonseed, a by-product of cotton, is included to allow the AWB to offer a wider range of stockfeed products and support integrated grain cropping programs. The changes are designed to align with the AWB's goals of enhancing marketing options for graingrowers and increasing grower returns. The Regulations repeal previous amendments that included pasture seeds, tree seeds, and horticultural seeds in the definition of "grain", as these were not pursued by the AWB for trading purposes. The amendments commenced upon gazette and are applicable nationally, reflecting the federal oversight of wheat marketing in Australia.
Key Provisions
The Wheat Marketing Regulations (Amendment) 1994 No. 458 (the Regulations) amends the Wheat Marketing Regulations to expand the definition of "grain" under the Wheat Marketing Act 1989 (the Act). Regulation 1 outlines the amendment of the Wheat Marketing Regulations, and Regulation 2 specifically removes the previous prescription of pasture seeds, tree seeds, and horticultural seeds as "grain" under the prior definition of "grain" in the Act. The new Regulation 2A extends the definition of "grain" to include canola and cottonseed.
Under the amended Wheat Marketing Act, the Australian Wheat Board (AWB) is permitted to conduct research, seed testing, and seed certification activities on certain seeds, including pasture seeds, horticultural seeds, and tree seeds, as well as any other seeds declared by regulation (section 3(1)(a) and (b)). The AWB can also undertake all its functions on products specified in the definition of "grain" (section 3(1)(c)), which includes common cereals, oilseeds, grain legumes, rice, millet, and canary seed, as well as any products of the soil declared by regulation to be "grain" for the purposes of the Act.
The Regulations impose obligations on the AWB to ensure compliance with the amended definition of "grain" as set out in Regulation 2A. The AWB must now include canola and cottonseed in its trading activities, research, and other functions conferred by the Act and complementary state legislation. This includes offering a wider range of stockfeed products to its customers and participating in the grain market.
There are no specific offences, penalties, or civil/criminal consequences outlined in the Explanatory Statement for breach of the Wheat Marketing Regulations (Amendment) 1994 No. 458. However, failure to comply with the Wheat Marketing Act 1989 or the Wheat Marketing Regulations may result in penalties, fines, or other legal consequences as prescribed by the Act or relevant state legislation. The maximum penalties for contraventions of the Wheat Marketing Act may vary depending on the specific provision breached and the circumstances of the offence. It is essential for the AWB and other parties governed by the Act to adhere to the requirements and obligations set out in the Wheat Marketing Act and the Wheat Marketing Regulations to avoid potential legal repercussions.