Commonwealth Numbered Regulations - Explanatory Statements

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BOUNTY (CITRIC ACID) REGULATIONS 1991 NO. 87

STATUTORY RULES 1991 No. 87

BOUNTY (CITRIC ACID) ACT 1991

BOUNTY (CITRIC ACID) REGULATIONS

ISSUED BY THE AUTHORITY OF THE MINISTER OF STATE FOR SMALL BUSINESS AND CUSTOMS

Section 31 of the Bounty (Citric Acid) Act (the Act) provides that:

"The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters:

a)       permitted by this Act to be prescribed; or

b)       necessary or convenient to be prescribed for carrying out or giving effect to this Act".

Background

The Government announced in the March Industry Statement its decision to introduce legislation into the Parliament to provide bounty assistance on the production of citric acid via a special high technology production process which involves the fermentation of carbohydrates in air lift fermenters. That legislation (the Bounty (Citric Acid) Act 1991) was passed on 17 April 1991, and the Act received the Royal Assent in the week ending 26 April 1991.

Under the new Act, bounty is payable to the producer of bountiable citric acid (defined as citric acid produced via the fermentation process above) on the production of such acid provided that the production is carried out in Australia during the bounty period and that the producer is, at the time of production, a registered person.

Registration of persons is dealt with under Section 15 of the Act.

Subsections 15(5) and 15(7) of the Act provide that the regulations may prescribe conditions to be met by an applicant for registration (subsection 15(5)) and that the regulations may further prescribe conditions to be complied with by a person registered under section 15 (subsection 15(7)).

Regulation 1: provides that the Regulations may be cited as the Bounty (Citric Acid) Regulations.

Regulation 2: provides that in the regulations, "the Act" means the Bounty (Citric Acid) Act 1991.

a)       that the applicant will continue to research, develop and apply the fermentation technology the subject of the bounty to the commercialisation of citric acid in Australia;

b)       that the applicant will contribute to research in new product development arising from or associated with the fermentation technology the subject of the bounty, with a view to the commercialisation of those new products in Australia;

c)       that the applicant will explore international market opportunities for the fermentation technology and the product (ie. bountiable citric acid); and

d)       that the applicant will take all reasonable steps to ensure maximum advantage is taken from the expertise and know-how associated with the development of the fermentation technology and the production of bountiable citric acid and other new products in Australia by suitable licensing, franchise or other arrangements.

Subregulation 3(2): provides that a registered person must comply with the following conditions:

a)       that the registered person will continue to research, develop and apply the fermentation technology the subject of the bounty to the commercialisation of citric acid in Australia;

b)       that the registered person will contribute to research in new product development arising from or associated with the fermentation technology the subject of the bounty, with a view to the commercialisation of those new products in Australia;

c)       that the registered person will explore international market opportunities for the fermentation technology and the product (ie. bountiable citric acid) and

d)       that the registered person will take all reasonable steps to ensure maximum advantage is taken from the expertise and knowhow associated with the development of the fermentation technology and the production of bountiable citric acid and other new products in Australia by suitable licensing, franchise or other arrangements.