EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 212
Issued by the Authority of the Minister for Primary Industries and Energy
WOOL MARKETING ACT 1987
Wool Marketing Regulations (Amendment)
Section 127 of the Wool Marketing Act 1987 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters necessary or convenient to be prescribed for carrying out or giving effect to the Act and prescribing penalties not exceeding $5000 for offences against the regulations. Section 127 also provides for regulations to be made in relation to the registration and inspection of wool test houses (laboratories) and sampling sites; the powers of the Australian Wool Corporation under subsection 74(1) and the prohibition of export of wool sold in contravention of the regulations.
The Act has recently been amended to provide a regulation making power for the registration and inspection of wool display areas and sample security areas under section 127.
Under the export auction system, samples of wool are physically separated from the bulk of the wool with one part of each sample being displayed for potential buyers to examine prior to purchase, and the other part being sent to laboratories to be tested for standard wool measurements. In some instances a single bale of wool is considered to be a representative display sample of the bulk of the wool, in which case a sample is also sent to laboratories for testing. The integrity and security of these processes plays an important role in maintaining local and international confidence in the wool marketing system.
In 1988 all sections of the wool industry agreed to introduce more effective surveillance and control arrangements for wool sampling, testing and showing. A key element of the new arrangements is the Australian Wool Surveillance Authority (AWSA) which has been established within the existing laboratory accreditation and inspection body known as the National Association of Testing Authorities, Australia (NATA). AWSA commenced operations in March 1989 and is responsible for the routine surveillance of wool sampling sites, wool display and sample security areas (known as showfloors) and wool testing laboratories.
The Wool Marketing Regulations (the principal regulations) establish procedures for the registration and inspection of wool sampling sites and laboratories by the Secretary of the Department of Primary Industries and Energy. Sampling sites and laboratories which meet the criteria for registration set down by AWSA and have been inspected by AWSA will be registered by the Secretary. Where the Secretary is not satisfied that a
sampling site or laboratory meets the criteria for registration, the Secretary may appoint inspectors to independently inspect the sampling site or laboratory and related documentation which may be held either by the sampling site or laboratory or by AWSA. The Secretary then makes a decision on the application for registration. The Secretary may refuse to register a sampling site or laboratory and suspend or cancel registration if a sampling site or laboratory fails to continue to meet its terms of registration. The principal regulations also provide for the operator of a sampling site or laboratory to apply to the Administrative Appeals Tribunal for a review of a decision by the Secretary.
Subsection 74(1) of the Act empowers the Australian Wool Corporation to prohibit the offering for sale for export, or order the withdrawal from sale for export, of any wool which does not meet industry standards or terms set under paragraphs 63(1)(b) and (c) of the Act. The principal regulations provide for the exercise of such powers by the Corporation in regard to wool which does not meet industry standards or industry terms relating to pesticide residues and wool sampling and testing.
The proposed regulations provide for registration and inspection of showfloors by the Secretary under the procedures already operating for sampling sites and laboratories stated in the principal regulations. The proposed regulations therefore primarily insert the term “showfloor” or “registered showfloor”, as required, in the principal regulations.
The proposed regulations also provide for the Corporation to use its powers concerning wool which does not meet industry standards or industry terms in regard to the display of wool on showfloors (as well as sampling and testing) and concerning wool which has not been classed by a woolclasser who is registered by the Corporation. Provision is made for penalties for offences. In addition, penalties in the principal regulations for offences concerning wool which does not comply with industry standards or terms in relation to pesticide residues or sampling and testing are amended.
Details of the proposed regulations are set out in the attachment.
The proposed regulations commence on gazettal.
ATTACHMENT
WOOL MARKETING REGULATIONS (AMENDMENT)
Regulation 1 defines the principal regulations.
Regulation 2 amends Regulation 25F of the principal regulations by inserting a provision which prohibits the offering for sale for export of greasy wool that does not meet industry standards or industry terms in relation to the showfloors at which samples or bales of greasy wool are to be displayed and the operation of such showfloors.
Regulation 3 amends Regulation 25G of the principal regulations by inserting a provision which prohibits a person from selling wool for export which the Corporation has ordered withdrawn from sale and which does not meet industry standards or industry terms in relation to the showfloors at which samples or bales of the wool are to be displayed and the operation of such showfloors.
Regulation 4 amends subregulation 25H(2) of the principal regulations by replacing “the sale” with “its sale”.
Regulation 5 inserts new Regulations which provide for the Corporation to prohibit
- the offering for sale for export of wool that has not been classed by a registered woolclasser;
- a person from selling wool for export that has not been classed by a registered woolclasser; and
- a person from knowingly exporting wool that has been sold in contravention of these provisions, unless the wool has subsequently been classed by a registered woolclasser.
The proposed regulations also prescribe a penalty of $2000 for offences against these regulations. The application of subsection 4B(3) of the Crimes Act 1914 will enable the imposition of a penalty of $10000 for corporate bodies on the basis of the present ratio of 5:1 for bodies corporate and natural persons.
Regulation 6 amends Regulation 26 of the principal regulations by
- adding to the definition of ‘examinable document’
•• a subparagraph that an examinable document also means a document relevant to an allegation that samples or bales of greasy wool displayed at a registered showfloor were not displayed in accordance with the showfloor’s terms of registration.
•• a paragraph that an examinable document also means a document relevant to the display of samples or bales of greasy wool at a registered showfloor.
- adding a definition of showfloor.
Regulation 7 amends Regulation 28 of the principal regulations by inserting a provision for the Secretary to register a showfloor in accordance with the terms on which it is registered by NATA.
Regulation 8 amends Regulation 29 of the principal regulations by inserting in subregulations (1), (2) and (3) “showfloor” after “site” wherever occurring.
Regulation 9 amends Regulation 31 of the principal regulations by inserting “showfloor” after “site” wherever occurring.
Regulation 10 amends Regulation 33 of the principal regulations by adding provision for an authorised inspector to enter and inspect a showfloor which is registered, or proposed to be registered, for the purposes of ascertaining whether it is carrying out procedures in accordance with its terms of registration. The amendment also enables an authorised inspector to enter NATA premises for the purpose of auditing the performance of NATA in relation to the inspection of registered showfloors.
Regulation 11 repeals Regulations 34, 35 and 36 of the principal regulations which are no longer required.
Regulation 12 amends Regulation 37 of the principal regulations by providing for the Secretary to require the authorised representative of a showfloor to inform the Secretary of the days on which an operator of the showfloor intends to display samples or bales of greasy wool. A penalty of $1000 applies for failure to comply.
Regulation 13 amends Regulation 39 of the principal regulations by providing for the Secretary to suspend or cancel registration of a showfloor carrying out procedures not in accordance with its terms of registration.
Regulation 14 amends the principal regulations by inserting two Schedules detailing amendments to various provisions of the principal regulations.
Schedule 1 amends the penalties in the specified principal regulations from $5000 to $2000 for offences concerning wool for export which does not comply with industry standards or terms in relation to pesticide residues or sampling and testing. The application of subsection 4B(3) of the Crimes Act 1914 will enable the imposition of a penalty of $10000 for corporate bodies on the basis of the present ratio of 5:1 for bodies corporate and natural persons. The Schedule also inserts references to showfloors or registered showfloors in specified subregulations or paragraphs to enable showfloors to be registered and inspected in the same manner as already applies to sampling sites and laboratories under the principal regulations.
Schedule 2 inserts references to showfloors in specified subregulations, paragraphs and subparagraphs to enable showfloors to be registered and inspected in the same manner as already applies to sampling sites and laboratories under the principal regulations.