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.
Overview
The Wool Marketing Act 1987, enacted to regulate the marketing of wool in Australia, was amended through the Wool Marketing Regulations (Amendment) Statutory Rules 1989. These amendments were introduced to address deficiencies in the existing regulatory framework concerning the inspection and quality control of wool test houses (laboratories) and the quality assurance provisions for wool sold for export. The regulations were issued under the authority of the Minister for Primary Industries and Energy and were designed to enhance the integrity and reliability of wool sampling and testing processes, which are crucial for maintaining confidence in the wool industry both locally and internationally. The policy objective of these amendments is to ensure that all wool, including that sold outside the auction system, meets industry standards and terms, thereby protecting the interests of all stakeholders in the wool supply chain.
Scope and Application
The Wool Marketing Act 1987 applies to the regulation and quality control of wool production and sales within Australia. Specifically, the Act and its amendments extend to the Australian Wool Corporation, which has the authority to implement standards for wool preparation and sale, and to enforce quality control measures. This includes prohibiting the sale of wool that does not meet industry standards, particularly for export sales. The amendments extend these quality control provisions to all wool sold for export, encompassing wool sold outside the auction system. The geographic reach of the Act is national, governing the entire Australian wool industry. The Act also allows for the registration and inspection of wool sampling sites and test houses, overseen by the Secretary of the Department of Primary Industries and Energy. The new Australian Wool Surveillance Authority, operating within the National Association of Testing Authorities, Australia, will conduct routine surveillance of these sites and laboratories. The regulations provide penalties for offences against the Act, with fines not exceeding $5000. The proposed amendments to the Wool Marketing Regulations will come into effect upon gazettal, enhancing the oversight and quality assurance mechanisms for the Australian wool industry.
Key Provisions
The main operative sections of these amendments to the Wool Marketing Regulations include provisions for the registration and inspection of wool sampling sites and laboratories (reg 4). Section 127 of the Act allows for regulations to be made for the registration and inspection of these facilities. The regulations establish procedures for the Australian Wool Surveillance Authority (AWSA) to accredit and inspect wool sampling sites and laboratories within the National Association of Testing Authorities, Australia (NATA). The Secretary of the Department of Primary Industries and Energy is responsible for registering sampling sites and laboratories that meet the criteria set by AWSA. The Secretary may also appoint inspectors to independently inspect facilities and related documentation if there are concerns about compliance. Furthermore, the regulations allow for the refusal, suspension, or cancellation of registration if a facility fails to meet its terms of registration (reg 6). Operators of a sampling site or laboratory can apply to the Administrative Appeals Tribunal for a review decision by the Secretary (reg 8).
The obligations imposed by the regulations on parties and entities include ensuring that wool sampling sites and laboratories meet the registration criteria set by AWSA (reg 4). Operators must submit applications for registration and cooperate with inspections by AWSA or appointed inspectors (reg 5). They must also maintain records of sampling and testing activities, which may be subject to inspection by the Secretary or inspectors (reg 7). The Australian Wool Corporation is empowered to formulate and secure observance of standards of preparation and acceptance for sale of wool, including quality assurance measures to prevent the export of non-compliant wool (reg 9). The regulations require 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, including those related to pesticide residue, sampling, and testing (reg 10).
The regulations also establish offences, penalties, and consequences for breach. The maximum penalty for offences against the regulations is $5000 (s 127). The Secretary may refuse to register a sampling site or laboratory and suspend or cancel registration if a facility fails to meet its terms of registration (reg 6). Operators of non-compliant facilities may be subject to enforcement action, including fines and other penalties (reg 11). The Australian Wool Corporation has the power to prohibit the export of non-compliant wool, which may result in significant financial and reputational consequences for wool producers and exporters (reg 10). The regulations emphasise the importance of maintaining the integrity of the wool marketing system and protecting the interests of all stakeholders.