EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 110
Issued by the Authority of the Minister for Primary Industries and Energy
WOOL MARKETING ACT 1987
Wool Marketing Regulations (Amendment)
Subsection 127(1) of the Wool Marketing Act 1987 (the Act) provides that the Governor-General may make Regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed for carrying out or giving effect to the Act.
The Wool Marketing Regulations (the principal regulations) provide for certain administrative matters including the administrative procedures to be followed in making refunds to woolgrowers from the Market Support Fund (MSF) and the minimum amount of the aggregate refund to be made. Under these regulations, the Australian Wool Corporation (AWC) distributes the refunds to the Registered Persons (wool brokers - dealers) who originally collected from growers the wool tax which was paid into the MSF. The Registered Persons are responsible for on-forwarding the refunds to growers. The minimum aggregate refund is currently $10.
The Wool Council of Australia (WCA) has formally requested that the principal regulations be amended to permit the AWC to commence distributing MSF refunds directly to woolgrowers from 1 July 1989, rather than via Registered Persons. This will enable growers to obtain quicker refunds and will substantially reduce the administrative costs incurred in making MSF refunds. The WCA has also requested that the minimum aggregate refund be raised to $25.
The principal regulations also provide for procedures for registration and inspection of wool sampling sites and laboratories by the Secretary and a minor amendment is to be made to procedures for inspection.
Details of the proposed regulations are as follows:
Regulation 1 defines the principal regulations.
Regulation 2 amends Regulation 6 of the principal regulations, under which refunds are payable to dissolved partnerships by the AWC or, with the approval of the AWC, by a Registered Person, to enable refunds to be payable to such partnerships only direct from the AWC.
Regulation 3 amends Subregulations 9(4) and (5) of the principal regulations to provide for an increase in the minimum aggregate refund payable from the MSF in any declared refund year from $10 to $25.
Regulation 4 amends Regulation 10 of the principal regulations to delete reference to refunds being payable by Registered Persons and to provide for refunds to be made by the AWC. Subregulations 10(2) to 10(10) of the principal regulations which set out the circumstances under which Registered Persons are liable for the payment of refunds, are also omitted.
Regulation 5 amends Subregulation 11(3) of the principal regulations by shortening from three (3) months to two (2) months the period available to the AWC to make refund payments under the direct payment method and by omitting reference to the authorisation by the AWC for Registered Persons to make refunds on the AWC’s behalf.
Regulation 6 repeals Regulation 12 of the principal regulations, as the AWC will no longer authorise Registered Persons to make refund payments. However, Subregulation 12(4) has been saved as it covers payments already authorised by the AWC in past refund periods, which may not have been made by a Registered Person on the date the proposed regulations come into effect.
Regulation 7 amends Subregulation 13(1) of the principal regulations by deleting reference to Registered Persons from the process of a grower claiming a refund. Subregulation 13(2) is repealed, thereby removing the six month time period in which a claim for a refund must be made and making the period unlimited.
Regulation 8 amends Subregulation 14(2) of the principal regulations by omitting reference to Registered Persons in relation to the manner of payment of refunds.
Regulation 9 repeals Regulations 15 and 16 of the principal regulations, as they relate to monies held in trust by Registered Persons, and interest on those monies.
Regulation 10 repeals Subregulation 17(2) of the principal regulations, as it relates to payments of wool tax to Registered Persons.
Regulation 11 amends Subregulation 20(1) of the principal regulations by deleting provision for remuneration to be paid to Registered Persons for costs incurred in payment of refunds as they will no longer be involved in that process. However, Registered Persons will still receive remuneration for providing prescribed information under Subregulation 21(2).
Regulation 12 amends Subregulation 21(2) of the principal regulations to include in the prescribed information required annually from Registered Persons, additional details on trading companies, partnerships and wool resold by private dealers and agents.
Regulation 13 repeals Regulation 22 of the principal regulations which requires Registered Persons to be accountable to the AWC for money which has been paid to a Registered Person for refund to the grower. However, Regulation 22 is saved in respect of a Registered Person’s involvement in refunds before the commencement of the proposed regulations.
Regulation 14 amends Regulation 31 of the principal regulations, which provides for the Secretary to decline to deal further with an application for registration of a sampling site or laboratory until it has been inspected, by inserting a requirement for the Secretary to cause the site or laboratory to be inspected within a reasonable time.
There are other references to Registered Persons in the principal regulations viz Subregulations 12(2), 18 and 22. However, these references are to be maintained to ensure that the AWC has the necessary power to verify the stewardship of the refunds by Registered Persons, to perform the audit functions and to take any ensuing recovery or legal action required beyond 1 July 1989.
The proposed regulations will commence on gazettal.