EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 14
Issued by the Authority of the Minister for Primary Industries and Energy.
WOOL MARKETING ACT 1987
Wool Marketing Regulations (Amendment)
The Wool Marketing Act 1987 (the Act) has been amended to provide for inspection of wool test houses (laboratories) under section 127 and to extend the quality control provisions under section 74 to cover all wool sold for export, including wool sold outside the auction system.
Section 127 of 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 and sampling sites; fees payable in respect of registration and inspection of sampling sites; fees payable in respect of registration and inspection of wool test houses; the powers of the Australian Wool Corporation (the Corporation) under subsection 74(1) and to prohibit the export of wool sold in contravention of the regulations.
Under the Wool Marketing Regulations (the Principal Regulations) responsibility for the registration and inspection of wool sampling sites rests with the Secretary of the Department of Primary Industries and Energy (DPIE). There is no provision in the existing Regulations for registration or inspection of wool testing laboratories.
Under the export auction system, samples of wool are physically separated from wool bales and sent to wool test houses (laboratories) to be tested for standard wool measurements. The integrity of the sampling and testing processes plays an important role in maintaining local and international confidence in the wool marketing system.
Events during the last two years have highlighted the need to introduce more effective surveillance and control arrangements for wool sampling and testing. All sectors of the wool industry have agreed to the proposed arrangements.
Central to these arrangements is the establishment of a new body, the Australian Wool Surveillance Authority (AWSA), within the existing laboratory accreditation and inspection body known as the National Association of Testing Authorities, Australia (NATA). AWSA will be responsible for the routine surveillance of wool sampling sites and wool testing laboratories.
The Wool Marketing Regulations (Amendment) (the proposed regulations) establish procedures for the registration of wool sampling sites and laboratories by the Secretary. 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 proposed regulations provide for the operator of a sampling site or laboratory to apply to the Administrative Appeals Tribunal for a review decision by the Secretary.
Paragraph 63(1)(b) of the Act empowers the Corporation to formulate, secure observance of and implement standards of preparation of wool. Paragraph 63(1)(c) empowers the Corporation to formulate, and secure the adoption of, terms and conditions governing the acceptance for sale, and the sale, of wool at auction or otherwise. Quality assurance powers under subsection 74(1) of the Act allow the 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.
The proposed regulations amend the Wool Marketing Regulations,’ which empower the Corporation to prevent the sale of wool which does not meet industry standards or terms in relation to pesticide residue, so as to cover all wool sold for export, including that sold outside the auction system. The proposed regulations also make provision to prevent the sale for export of wool not complying with industry standards or terms in relation to sampling and testing.
The proposed regulations will commence on gazettal.