EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Wool Services Privatisation Act 2000
Subsection 30(1) of the Wool Services Privatisation Act 2000 (the Act) provides that the Minister may declare a body as the ‘research body’ for certain purposes of the Act. Under subsection 31(1) of the Act, the Commonwealth may enter into a funding contract with a declared research body. A funding contract enables the research body to receive wool grower levies and matching Commonwealth funding to invest in research and development and promotion activities on behalf of the Australian wool industry.
OUTLINE
The purpose of the declaration is to declare Australian Wool Innovation Limited (AWI) to be the research body under subsection 30(1) of the Act.
AWI was originally declared as the research body under subsection 30(1) of the Act on 19 December 2000. As a result of an administrative error, the declaration was deemed to be repealed on 1 October 2006 according to the Legislative Instruments Act 2003.
This declaration seeks to rectify that administrative error.
CONSULTATION
No consultation was considered necessary in the drafting of this declaration.
IMPACT/EFFECT
There will be no change to circumstances for the industry resulting from this declaration. AWI was originally declared as the research body on 19 December 2000. The earlier declaration was repealed by default under the Legislative Instruments Act 2003 only due to an administrative error.
AWI has continued to meet all its responsibilities under a contract with the Government to receive funding and provide research and development services to Industry, on the basis that AWI remains the declared research body.
The Office of Best Practice Regulation (OBPR) has advised that a Regulation Impact Statement is not required for this legislative instrument; the OBPR ID number for this matter is 9554.
RETROSPECTIVENESS
The declaration has retrospective effect from 1 October 2006. The declaration is not considered to disadvantage any person or impose any liability in respect of anything done (or omitted to be done) before the date of registration of the declaration. Accordingly, its retrospectivity is not considered to be precluded by subsection 12(2) of the Legislative Instruments Act 2003.
Overview
The Wool Services Privatisation Act 2000 was enacted to facilitate the transition of wool industry services from government control to private sector management, addressing the need for efficient and industry-focused research, development, and promotion activities. This legislative shift aimed to ensure that the wool industry could benefit from targeted research initiatives driven by industry needs rather than government mandates. The Act provides a framework for the Commonwealth to contract with a designated research body to manage wool grower levies and corresponding government funding. The Wool Services Privatisation Amendment Instrument 2008 (F2008L02725) was introduced to correct an administrative oversight that inadvertently repealed the original declaration of Australian Wool Innovation Limited as the research body. This legislative instrument seeks to reinstate AWI's status, ensuring continuity in the funding and research activities that support the wool industry, without any adverse impact on the industry stakeholders.
Scope and Application
The Wool Services Privatisation Act 2000 outlines the framework for the privatisation of wool services in Australia, including the establishment and funding of a research body to invest in research and development activities for the wool industry. This Act applies to the Australian wool industry, specifically targeting entities responsible for conducting research and development on behalf of wool growers. The geographic reach of the Act is national, given that it is a Commonwealth Act, and it impacts entities across Australia. The Act allows the Commonwealth to enter into funding contracts with a declared research body, enabling the body to receive wool grower levies and matching Commonwealth funding for its activities. The legislation extends its application through subordinate instruments, which facilitate the detailed administration and enforcement of the Act’s provisions. This specific declaration rectifies an administrative error that previously deemed the declaration of Australian Wool Innovation Limited as the research body to be repealed, thereby restoring its status and ensuring continuity in the funding and research activities essential for the industry. The retrospective effect of the declaration means it applies from 1 October 2006, without imposing any liabilities or disadvantages on individuals or entities due to the prior administrative oversight.
Key Provisions
The Wool Services Privatisation Act 2000 (the Act) is primarily concerned with the establishment and operations of a research body for the Australian wool industry. Under section 30(1), the Minister for Agriculture, Fisheries and Forestry has the authority to declare a body as the 'research body' for the purposes outlined in the Act. In this instance, the Act seeks to rectify an administrative oversight by reaffirming Australian Wool Innovation Limited (AWI) as the research body, a designation originally made on 19 December 2000, but subsequently deemed repealed due to an administrative error on 1 October 2006. This re-declaration seeks to ensure that AWI continues to operate as the research body without any interruption in its activities.
The Act, through section 31(1), allows the Commonwealth to enter into a funding contract with the declared research body. Such a contract facilitates the flow of wool grower levies and matching Commonwealth funding to the research body. This funding is intended to support research and development and promotional activities on behalf of the Australian wool industry. By entering into this contract, AWI is entrusted with the responsibility to invest in initiatives that will benefit the industry, ensuring continued growth and innovation in the sector.
The obligations imposed by the Act on AWI are significant. As the declared research body, AWI must meet all the contractual obligations stipulated in its agreement with the Commonwealth. This includes utilising the funding received for the specified purposes of research and development and promotion activities. AWI is also required to report on its activities and the outcomes of its research initiatives to ensure transparency and accountability. Furthermore, AWI must maintain its status as a body dedicated to the advancement of the wool industry, ensuring that its operations align with the goals and objectives set out in the funding contract.
In the event of non-compliance with the Act, there are potential consequences for AWI. Although the explanatory statement does not explicitly detail offences or penalties, it is reasonable to infer that breaches of the funding contract or failure to meet the obligations as the research body could lead to legal action. The severity of penalties would depend on the nature and extent of the breach, but could include financial penalties, termination of the funding contract, or other civil or criminal consequences as determined by the relevant authorities. The Act provides a framework for ensuring that AWI adheres to its obligations, thereby safeguarding the interests of the wool industry.