Commonwealth Numbered Regulations - Explanatory Statements

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AUSTRALIAN HORTICULTURAL CORPORATION (AUSTRALIAN DRIED FRUITS BOARD) REGULATIONS 1991 NO. 214

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 214

Issued by the Authority of the Minister of State for Primary Industries and Energy.

AUSTRALIAN HORTICULTURAL CORPORATION ACT 1987

AUSTRALIAN HORTICULTURAL CORPORATION (AUSTRALIAN DRIED FRUITS BOARD) REGULATIONS

The Australian Horticultural Corporation (AHC) carries out marketing and promotion activities for the apple, pear, citrus, nursery products and nashi fruit industries. Dried fruit export marketing and promotion is currently conducted by the Australian Dried Fruits Corporation (ADFC). However, on 1 July 1991 the ADFC is to become a Product Board operating within the umbrella of the AHC. The Australian Dried Fruits Corporation Act 1978 will be repealed on that date. Under section 25 of the Australian Horticultural Corporation Amendment Act 1991 (the Amendment Act) the ADFC will continue in existence but under the name of the Australian Dried Fruits Board (ADFB).

Provision for the establishment of Product Boards within the AHC was made in the Amendment Act. Product Boards are to have functions and powers that largely mirror those of the AHC. They will be corporate entities and will be able to operate with substantial autonomy under the broad oversight of the AHC.

The Commonwealth currently collects then disburses to the ADFC, an export charge imposed on dried fruits exports to fund the operations of the ADFC. This arrangement will continue with the establishment of the ADFB since that body will be funded in the same way, through an industry export charge. However, of the funds raised, a portion will be paid to the parent Corporation, the AHC, to meet the dried fruits industry share of the administrative costs of the AHC. The proposed regulations provide for the manner in which the funds are disbursed to the two bodies.

Subsection 102(1) of the Act describes the functions of Product Boards, while subsection 102(2) provides that the regulations may exclude from the functions of a Board any of the functions listed in subsection (1). As the ADFB will not have a domestic promotion and marketing role, the proposed regulations provide for the exclusion of domestic functions for the ADFB.

The proposed regulations also provide for the liability of the ADFB for pay-roll tax and prescribe the Australian Dried Fruits Association as an "eligible industry body" for the purpose of a number of provisions in the Act.

Explanations of individual regulations are attached.

ATTACHMENT

DETAILS OF THE AUSTRALIAN HORTICULTURAL CORPORATION (AUSTRALIAN DRIED FRUITS BOARD) REGULATIONS

Regulation 1 is a formal provision.

Regulation 2 provides that the Regulations commence on 1 July 1991.

Regulation 3 provides interpretations.

Regulation 4 provides that the Australian Dried Fruits Association is an "eligible industry body" for the purposes of certain provisions of the Act.

Regulation 5 provides that the Australian Dried Fruits Board is liable for State or Territory pay-roll tax in respect of salaries or wages paid by the Board.

Regulation 6 provides that the Australian Dried Fruits Board is excluded from entering into domestic promotional or marketing functions in relation to the Board products.

Regulation 7 provides that after a prescribed period of one month and 21 days after the end of the month in which the dried fruits were exported, the commonwealth shall pay export charge revenues to the Board.

Regulation 8 provides that the prescribed amount to be paid out of export charge revenues to the AHC for the 12 month period commencing 1 July 1991 is to be $52,780.


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