Wool Marketing Regulations (Amendment) 1991 No. 105

EXPLANATORY STATEMENT STATUTORY RULES 1991 No. 105

Issued by Authority of the Minister of State for Primary Industries and Energy Australian Meat & Live-stock Corporation Act 1977

Australian Meat & Live-stock Corporation Regulations (Amendment) Dairy Produce Levy (No. 1) Act 1986

Dairy Produce Levy Regulations (Amendment) Laying Chicken Levy Act 1988

Laying Chicken Levy Regulations (Amendment) Live-stock Slaughter Levy Act 1964

Live-stock Slaughter Levy Regulations (Amendment) Meat Chicken Levy Act 1969

Meat Chicken Levy Regulations (Amendment) Pig Slaughter Levy Act 1971

Pig Slaughter Levy Regulations (Amendment) Wool Marketing Act 1987

Wool Marketing Regulations (Amendment)

Relevant sections of the above Acts provide that the Governor-General may make regulations for the purposes of the Acts and, in particular, provide for a levy (or payment in the case of cattle and wool) for exotic disease purposes and also (in the case of pigs) for the financing of the Pig Research and Development Corporation and the Australian Pork Corporation. Relevant sections are as follows:

section 52 of the Australian Meat & Live-stock Corporation Act 1977

section 14 of the Dairy Produce Levy (No. 1) Act 1986

section 9 of the Laying Chicken Levy Act 1988

section 8 of the Live-stock Slaughter Levy Act 1964

section 11 of the Meat Chicken Levy Act 1969

section 8 of the Pig Slaughter Levy Act 1971

section 127 of the Wool Marketing Act 1987.

The Exotic Animal Disease Control Act 1989 establishes the Exotic Animal Disease Preparedness Consultative Council (EXANDIS) and provides financial assistance for purposes related to the control and eradication of exotic animal diseases.

The financial assistance is provided through a trust account which receives annual industry contributions of approximately $750,000 with expenditure of industry contributions from the account being matched on a dollar-for-dollar basis up to a maximum of $750,000 by the Commonwealth.

It is necessary to prescribe by regulation the operative exotic disease levy rates for 1991-92. The Acts provide that before making regulations prescribing such rates, the Governor-General shall take into consideration any recommendations made to the Minister by those members of EXANDIS nominated by the National Farmers' Federation (NFF) and regulations shall not be made prescribing a rate that is greater than the rate last recommended.

The attached table shows the section of each Act relevant to exotic disease levy, the amount of each proposed levy/payment as recommended by the NFF members and the maximum rates as specified in the relevant levy Acts.

With regard to the Laying Chicken Levy Regulations (Amendment), this is the first year of operation of the proposed exotic disease levy for laying chickens. As a result, it is necessary to prescribe 5.75 cents (paragraph 7(a) of the relevant Act) for research and development purposes which is unchanged from the previous year and 0.0025 cent for exotic disease purposes (paragraph 7(b)).

With regard to the Pig Slaughter Levy Regulations (Amendment) certain proposed changes for the purposes of paragraphs 6(1)(a) and 6(1)(b) of the relevant Act are purely to clarify the drafting style.

The Pig Slaughter Levy Act 1971 (the Levy Act) provides that the rate of levy per pig slaughtered shall be the aggregate of:

(a)              an amount prescribed for the purpose of financing the Pig Research and Development Corporation (PRDC), not exceeding $1.00;

(b)              an amount prescribed for the purpose of financing the Australian Pork Corporation, not exceeding $2.50;

(c)              an amount prescribed for the purpose of financing exotic animal disease control and eradication, not exceeding 1.5 cents.

Subsection 6(2) of the Levy Act requires the Governor-General, before making regulations prescribing an amount for the purposes of paragraph 6(1)(a), to take Into

consideration any recommendation made to the Minister for Primary Industries and Energy by the PRDC. Subsection 6(2) also provides that regulations shall not be made prescribing an amount for the purposes of paragraph 6(1)(a) that is greater than the amount last recommended by the PRDC to the minister for Primary Industries and Energy.

The PRDC recommended to the Minister for Primary Industries and Energy that the rate of pig slaughter levy for the purposes of paragraph 6(1)(a) of the Levy Act be increased from 40 cents to 55 cents, commencing 1 July 1991 (see Attachment). The PRDC is seeking the rate increase in the pig slaughter levy to fund its Research and Development Plan and Annual Operational Plan for 1991-92. The recommended rate meets the requirements of section 6 of the Levy Act.

All of the proposed Regulations, which would implement the recommended levy rates, are to commence on 1 July 1991.

91R141DOC

91R142DOC

91R143DOC

91R144DOC

91R145DOC

91R146DOC

91R147DOC

ATTACHMENT

EXANDIS - PROPOSED CONTRIBUTION RATES 1991-92

LEGISLATION

Dairy Produce Levy (No. 1) Act 1986

(sub-section 7(4A))

Laying Chicken Levy Act 1988 (paragraph 7(b))

Live-stock Slaughter Levy Act 1964 (section 6)

Meat Chicken Levy Act 1969

(paragraph 7(1)(b))

Pig Slaughter Levy Act 1971

(paragraph 6(1)(c))

LEVY PROPOSED ($)

0.03438(cent/kg milk fat)

0.0025(cent/laying chicken)

Buffaloes 2.9649 (cent/head) Sheep 0.1727 ( " ) Lambs 0.1727  ( " )

Goats 0.075 ( " ) 0.013706(cent per head)

1.433(cent/head)

SPECIFIED MAXIMUM

0.066

0.0025

Nil

0.05

1.5

LEGISLATION

Australian Meat & Live-stock Corporation Act 1977 (subsection 34A(1))

Wool Marketing Act 1987 (subsection 53A(1))
COMMODITY

Cattle/calves Wool

PAYMENT

$ 270,355

329,625

PRDC - PROPOSED OPERATIVE LEVY RATE

LEGISLATION

Pig Slaughter Levy Act 1971

(paragraph 6(1)(a))

LEVY

55(cents/head)

SPECIFIED MAXIMUM

$1.00