Commonwealth Numbered Regulations - Explanatory Statements

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DAIRY PRODUCE REGULATIONS (AMENDMENT) 1995 NO. 209

EXPLANATORY STATEMENT

STATUTORY RULES 1995 No. 209

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

Dairy Produce Act 1986

Dairy Produce Regulations (Amendment)

The Dairy Produce Act 1986 (the Act) relates to the functions of the Australian Dairy Corporation, the marketing and export of dairy produce, and the operation of the dairy market support arrangements for manufacturing milk products. The Act works in conjunction with the Dairy Produce Levy (No. 1) Act 1986, the Dairy Produce Levy (No. 2) Act 1986, and the Primary Industries Levies and Charges Collection Act 1991.

A new domestic market support scheme for the dairy industry commenced on 1 July 1995 and ends on 30 June 2000. The implementation of these new dairy market support arrangements were necessitated by Australia's commitments under the Uruguay Round of Trade Negotiations. 'Die impact of the new scheme is to deliver the same level of support to manufacturing milk producers as that which would have been provided under the current scheme, had it continued until its original termination on 30 June 2000.

Support for manufacturing milk producers is be obtained through an inter-sectoral transfer from market milk producers via the market milk levy and through a financial transfer from domestic consumers via the levy paid by manufacturers. Manufacturers can recoup the levy, through the price to domestic consumers or through an export rebate.

The new dairy market support arrangements, including levy impositions and payments of rebates, are based on the milk fat and protein content of milk. This is consistent with the basis of payments for milk supplied by producers.

Section 111A of the Act provides for the milk fat content and protein content of dairy produce to be prescribed where it is not known, for the purposes of levy imposition and collection and payment of export rebates under the relevant provisions of the above Acts.

The specified fat and Protein contents of dairy produce have been provided by the Australian Dairy Corporation following consultation with the dairy industry.

Details of the Regulations are as follows.

Regulation 1 the Regulations commenced on 1 July 1995.

Regulation 2 provides for the Dairy Produce Regulations to be amended.

Regulation 3 amends Regulation 8 (Authorised Agent) by changing the reference to the Schedule to the Schedule to Schedule 1.

Regulation 4 repeals Regulation 13 as there no longer exists a scheme for providing special rates of market support payments for underwritten dairy products.

Regulation 5 repeals Regulation 14 as the scheme for underwritten dairy products no longer exists.

Regulation 6 repeals Regulation 15 as the scheme for underwritten dairy products no longer exists.

Regulation 7 inserts a new Part IV - Miscellaneous, which prescribes the milk fat and protein contents of a kind of dairy produce in Schedule 2 as percentages of the total content of the kind of dairy produce, and which prescribes the milk fat and protein contents of a class of dairy produce as a percentage of the total content of the elms of dairy produce in Schedule 3.

Regulation 8 provides that the heading "Schedule" to be replaced with the heading "Schedule 1".

Regulation 2 provides for the insertion of Schedules 2 and 3. Schedule 2 prescribes the kinds of dairy produce and their milk fat and protein content percentages. Schedule 3 prescribes the milk fat and protein content percentages for dairy produce classes.


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