FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 3) REGULATION 2016 (F2016L01576) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FINANCIAL FRAMEWORK (SUPPLEMENTARY POWERS) AMENDMENT (AGRICULTURE AND WATER RESOURCES MEASURES NO. 3) REGULATION 2016 (F2016L01576)

EXPLANATORY STATEMENT

 

Issued by the Authority of the Minister for Finance

 

Financial Framework (Supplementary Powers) Act 1997

 

Financial Framework (Supplementary Powers) Amendment

(Agriculture and Water Resources Measures No. 3) Regulation 2016

 

The Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) confers on the Commonwealth, in certain circumstances, powers to make arrangements under which money can be spent; or to make grants of financial assistance; and to form, or otherwise be involved in, companies.  The arrangements, grants, programs and companies (or classes of arrangements or grants in relation to which the powers are conferred) are specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the Principal Regulations).  The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

Section 65 of the FF(SP) Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

 

Section 32B of the FF(SP) Act authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Principal Regulations.  Section 32B also authorises the Commonwealth to make, vary and administer arrangements for the purposes of programs specified in the Principal Regulations.  Schedule 1AA and Schedule 1AB to the Principal Regulations specify the arrangements, grants and programs. 

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government on two activities which are administered by the Department of Agriculture and Water Resources.

 

Funding will be provided for:

*         the Sustainable Rural Water Use and Infrastructure Program, a national program that funds investment in rural water use, management and efficiency, including improved water knowledge and water purchase for the environment; and

*         a one-off payment to Dairy Australia Limited (Dairy Australia) to assist Dairy Australia to expand delivery of its existing Tactics for Tight Times (TFTT) program which provides one-on-one sessions with farmers to assess their financial situation as well as providing information, services and activities to assist dairy farmers in dealing with challenging conditions in the dairy market.

 

Grant funding of $900,000 for the TFTT program was announced jointly on 25 May 2016 by the Deputy Prime Minister and Minister for Agriculture and Water Resources, the Hon Barnaby Joyce MP, and the Minister for Human Services, the Hon Alan Tudge MP, as part of the Government's Dairy Support Package.

 


 

Details of the Regulation are set out at Attachment A.  A Statement of Compatibility with Human Rights is at Attachment B

 

The Regulation is a legislative instrument for the purposes of the Legislation Act 2003.  The Regulation commences on the day after registration on the Federal Register of Legislation. 

 

Consultation

 

In accordance with section 17 of the Legislation Act 2003, consultation has taken place with the Department of Agriculture and Water Resources.

 

A regulation impact statement is not required as the Regulation only applies to non-corporate Commonwealth entities and does not adversely affect the private sector. 


Details of the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 3) Regulation 2016

 

Section 1 - Name

 

This section provides that the title of the Regulation is the Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 3) Regulation 2016.

 

Section 2 - Commencement

 

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislation. 

 

Section 3 - Authority

 

This section provides that the Regulation is made under the Financial Framework (Supplementary Powers) Act 1997.

 

Section 4 - Schedules

 

This section provides that the Financial Framework (Supplementary Powers) Regulations 1997 are amended as set out in the Schedules to the Regulation.

 

Schedule 1 - Amendments

 

Item 1 - In the appropriate position in Part 4 of Schedule 1AB (table)

 

This item adds two new table items to Part 4 of Schedule 1AB to establish legislative authority for government spending for certain activities administered by the Department of Agriculture and Water Resources.

 

New table item 171 establishes legislative authority for the Government to fund certain activities of the Sustainable Rural Water Use and Infrastructure Program (SRWUIP), a national program that funds investment in rural water use, management and efficiency, including improved water knowledge and water purchase for the environment. 

 

The Water Act 2007 and the Basin Plan 2012 provide for the determination of a Baseline Diversion Limit (BDL) - which, in simple terms, is the amount of water taken from the Murray-Darling Basin (the Basin) for consumptive use as at 30 June 2009 - and the long-term average Sustainable Diversion Limit (SDL), being the amount that can be sustainably taken from the Basin for consumptive use without causing environmental damage.  There is a gap between the BDL and the SDL of about 2,750 gigalitres per year.  The Basin Plan SDL will come into effect on 1 July 2019.

 

The SRWUIP is the key mechanism to deliver the Commonwealth's commitment to 'bridge the gap' to the SDL under the Basin Plan, and has three main components: irrigation infrastructure projects (or 'efficiency measures'); projects to achieve equivalent environmental measures with less water (or 'supply measures'); and water entitlement purchases.

 

The Water Recovery Strategy for the Murray-Darling Basin (June 2014) sets out the Commonwealth's strategy for water recovery to bridge the gap between the Basin Plan BDL and the SDL. 

 

There are over 50 activities under the SRWUIP (some of which have concluded), including the On-farm Irrigation Efficiency Program, the Victorian Farm Modernisation Project and a range of State Priority Projects.  A full list of activities and further information in relation to SWRUIP can be found at: http://www.agriculture.gov.au/water/mdb/programmes/basin-wide/srwuip.

 

The majority of the SRWUIP infrastructure funds are committed to projects in the Murray-Darling Basin for improving the operation of off-farm delivery systems and helping irrigators improve on-farm water use efficiency.  The purchase of water entitlements by the Commonwealth in the Basin is undertaken under the Restoring the Balance in the Basin program.  From 2013-14, this program has been funded through the SRWUIP, and is now an activity within the SRWUIP.

 

Funding for the SRWUIP comes from Programme 3.1: Water Reform, which is part of Outcome 3: Improve the health of rivers and freshwater ecosystems and water use efficiency through implementing water reforms, and ensuring enhanced sustainability, efficiency and productivity in the management and use of water resources.  Details are set out in the Portfolio Budget Statements 2016-17, Budget Related Paper No. 1.1, Agriculture and Water Resources Portfolio at page 49.

 

The table item specifies that the objective of the item also has the effect it would have if it were limited to funding activities done to give effect to Australia's obligations under the international treaties referred to in the definition of relevant international agreement in subsection 4(1) of the Water Act 2007.  The international treaties are:

*         the Convention on Wetlands of International Importance especially as Waterfowl Habitat, opened for signature 2 February 1971, ATS 1975 No.0048 (entered into force 21 December 1975), Articles 3 and 4;

*         the Convention on Biological Diversity, opened for signature 5 June 1992, ATS 1993 No. 0032 (entered into force 29 December 1993), Articles 6, 7, 8, 10 and 14(1);

*         the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa, opened for signature 17 June 1994, ATS 2000 No. 0018 (entered into force 13 August 2000), Articles 2, 3, 4 and 5;

*         the Convention on the Conservation of Migratory Species of Wild Animals, opened for signature 23 June 1979, ATS 1991 No. 0032 (entered into force 1 September 1991), Articles 2 and 3(4);

*         the Agreement between the Government of Australia and the Government of the People's Republic of China for the Protection of Migratory Birds and their Environment, opened for signature 20 October 1986, ATS 1988 No. 0022 (entered into force 1 September 1988), Articles 3(3) and 4;

*         the Agreement between the Government of Australia and the Government of Japan for the Protection of Migratory Birds and Birds in Danger of Extinction and their Environment, opened for signature 6 February 1974, ATS 1981 No. 0006 (entered into force 30 April 1981), Articles 3(1), 4(3), 5, 6 and 7;

*         the Agreement with the Government of the Republic of Korea on the Protection of Migratory Birds, opened for signature 6 December 2006, ATS 2007 No. 0024 (entered into force 13 July 2007), Articles 3(3), 4 and 5; and

*         the United Nations Framework Convention on Climate Change, opened for signature 9 May 1992, ATS 1994 No. 0002 (entered into force 21 March 1994), Article 4.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the external affairs power (section 51(xxix));

*         the census and statistics power (section 51(xi));

*         the power to make grants of financial assistance to the States (section 96); and

*         the Territories power (section 122).

 

The following 16 activities of the SRWUIP will be covered by this table item in Schedule 1AB.

 

New South Wales (NSW) Metering Project (including start up and pilot)

 

Funding of $55 million has been allocated to this activity from 2009-10 to 2016-17.

 

This activity will improve the measurement of water extracted from groundwater, regulated and unregulated rivers throughout the NSW Murray-Darling Basin, and see the installation of high accuracy, tamper proof and low-maintenance meters across the NSW Murray-Darling Basin.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the NSW Government.  Implementation of the project and awarding of funding is undertaken by the NSW Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to NSW.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

New South Wales Basin Pipes Project (including start up)

 

Funding of $137 million has been allocated to this activity from 2009-10 to 2017-18.

 

This activity provides funding for cost-effective measures to improve water delivery systems such as new pumps, pipes, tanks, troughs and associated infrastructure in exchange for stock and domestic water savings.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the NSW Government.  Implementation of the activity and awarding of funding is undertaken by the NSW Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to NSW.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

New South Wales Irrigated Farm Modernisation Project (including start up and pilot)

 

Funding of $119 million has been allocated to this activity from 2008-09 to 2017-18.

 

This activity aims to improve the long-term sustainability of regional communities by subsidising activities that enable irrigators to maintain or improve productivity and adapt to the Murray-Darling Basin Plan.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the NSW government.  Implementation of the activity and awarding of funding is undertaken by the NSW Government.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to NSW, not to individual applicants.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

New South Wales Healthy Floodplains Project (including start up)

 

Funding of $50 million has been allocated to this activity from 2009-10 to 2017-18.

 

This activity aims to reform water management in the northern basin floodplains of NSW. The management of floodplain extractions will be done by implementing the 2013 NSW Floodplain Harvesting Policy which will license water extractions from the designated floodplain, in line with the new Floodplain Management Plans.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the NSW government.  Implementation of the activity and awarding of funding is undertaken by the NSW Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to NSW.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

New South Wales Nimmie-Caira Enhanced Environmental Outcomes project

 

Funding of $180 million has been allocated to this activity from 2012-13 to 2017-18.

 

This activity aims to protect the environmental and Aboriginal cultural heritage values of the Nimmie-Caira area.  The activity will balance environmental and Aboriginal cultural heritage protection with commercial use so as to create an asset for the local community and the Murray-Darling Basin. Activity outcomes include: land and water purchase, water savings, an environmental watering plan, a long-term management plan and a reconfiguration of water delivery infrastructure.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the NSW government.  Implementation of the activity and awarding of funding is undertaken by the NSW Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to NSW.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

Australian Capital Territory (ACT) Catchment Management project (including start up)

 

Funding of $85 million has been allocated to this activity from 2009-10 to 2018-19.

 

This activity aims to improve long-term water quality in the ACT's lakes and waterways, and the overall environmental health of the Murrumbidgee River system through water monitoring, development of a water quality management plan and investment in infrastructure and technical solutions to reduce the impact of stormwater, sediment and other pollutants on ACT waterways.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the ACT government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to the ACT.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to the ACT.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to the ACT.

 

Queensland Healthy Headwaters Water Use and Efficiency Project

 

Funding of $155 million has been allocated to this activity from 2008-09 to 2018-19.

 

This activity aims to help irrigators, communities and the environment in the Queensland Murray-Darling Basin by funding irrigation infrastructure upgrades and supporting projects.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the Queensland Government.  Implementation of the activity and awarding of funding is undertaken by the Queensland Government.  Applications for funding and guidelines are available at https://www.dnrm.qld.gov.au/water/catchments-planning/healthy-headwaters/water-use-efficiency-project/infrastructure-funding.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to Queensland, not to individual applicants.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

Victoria Goulburn-Murray Water Connections Project Stage 2 (including start up and early works)

 

Funding of $956 million has been allocated to this activity from 2009-10 to 2018-19.

 

This activity involves the modernisation of channels, replacement or removal of meter outlets, and creation of new direct connections for customers currently connected to distribution and spur channels.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement and a Heads of Agreement with the Victorian Government.  Implementation of the activity and awarding of funding is undertaken by the Victorian Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to Victoria.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 


 

Victoria Sunraysia Modernisation Project (including start up)

 

Funding of $103 million has been allocated to this activity from 2012-13 to 2016-17.

 

This activity provides a more efficient irrigation network in the Mildura, Merbein and Red Cliffs districts, providing 365 days per year water delivery to irrigators, improved water quality and improved irrigation application rates for as many customers as possible.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the Victorian Government.  Implementation of the activity and awarding of funding is undertaken by the Victorian Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to Victoria.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

South Australia Riverine Recovery Project (including start up)

 

Funding of $89 million has been allocated to this activity from 2008-09 to 2017-18.

 

This activity aims to implement an improved riverine management regime for the River Murray from the South Australian/Victorian border to Wellington in South Australia and deliver water savings for transfer to the Commonwealth for environmental purposes.  The activity reflects a landscape-scale approach to addressing the problems of the River Murray and is expected to provide for a more effective, efficient and flexible management of environmental water.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the South Australian Government.  Implementation of the activity and awarding of funding is undertaken by the South Australian Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to South Australia.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 


 

South Australia Coorong, Lower Lakes and Murray Mouth (CLLMM) Project (including feasibility study, early works and other smaller completed projects)

 

Funding of $160 million has been allocated to this activity from 2008-09 to 2016-17.

 

This activity aims to assist the South Australian Government in managing the site for ecological health and to support the implementation and objectives of the CLLMM Long-Term Plan.  The objectives of the Long-Term Plan are to provide a clear direction for the future management of the CLLMM region as a healthy, productive and resilient Wetland of International Importance.

 

This activity is contracted through a Project Schedule under a Water Management Partnership Agreement with the South Australian Government.  Implementation of the activity and awarding of funding is undertaken by the South Australian Government.

 

Guidelines are not applicable to this activity as it is a payment by the Commonwealth directly to a State.

 

The relevant decision-maker for spending decisions is the Commonwealth Minister for Agriculture and Water Resources.  The Minister only makes decisions regarding payments to South Australia.

 

A merits review process is not applicable to this activity because this is a payment by the Commonwealth directly to a State.

 

Private Irrigation Infrastructure Program for South Australia

 

Funding of $14 million has been allocated to this activity from 2009-10 to 2016-17.

 

This activity funds irrigation infrastructure efficiency improvements for Murray-Darling Basin operators in South Australia, with a share of the water savings achieved from those projects to be used for environmental water purposes.

 

This is a State Priority Project grant program led by the Commonwealth.  Whilst applications for funding are no longer open, funding is still being paid out under this activity.  The then Minister for the Environment and Energy was the relevant decision-maker for the awarding of grants to applicants.

 

Should a problem or complaint have been identified as part of the application process, the complaint would have been dealt with in line with the Department of the Environment and Energy's Service Charter, http://www.environment.gov.au/about-us/publications/service-charter.

 

No further merits review arrangements apply.

 


 

New South Wales Private Irrigation Infrastructure Operators

 

Funding of $892 million has been allocated to this activity from 2010-11 to 2018-19.

 

This activity aims to improve the efficiency and productivity of water use and management of private irrigation networks in NSW and deliver water savings for the environment.  Water entitlements resulting from water savings generated from eligible activities, both off and on-farm, will help to secure a sustainable future for irrigation communities.  This is a State Priority Project grant program led by the Commonwealth.  Whilst applications for funding are no longer open, funding is still being paid out under this activity.  The Commonwealth Minister for Agriculture and Water Resources is the relevant decision-maker for the awarding of grants to applicants.

 

There is provision for an appeals process, whereby appeals will be considered against administrative process issues.  The appeals process is designed to ensure that the applicant has been treated fairly and consistently in the context of the selection procedures.

 

Appeals needed to have been lodged through the PIIOP Round Three Assessment Committee and received within 28 days of the date of the letter notifying the outcomes of applications.  The appeal needed to have stated the grounds for appeal and be signed by the appellant.  The Chair, PIIOP Round Three Assessment Committee, managed the appeals process.

 

No further merits review arrangements apply.

 

On-Farm Irrigation Efficiency Program

 

Funding of $579 million has been allocated to this activity from 2010-11 to 2018-19.

 

This activity is assisting irrigators within the southern connected system of the Murray-Darling Basin to modernise their on-farm irrigation infrastructure while returning water savings to the environment.  The southern connected system for the program encompasses the New South Wales Murray, Victorian Murray, South Australian Murray, Campaspe, Murrumbidgee, Goulburn, Broken, Loddon and the Lower Darling (south of Menindee Lakes) river catchments.

 

This program is led by the Commonwealth.  Whilst applications for funding are no longer open, funding is still being paid out under this activity.

 

The Commonwealth Minister for Agriculture and Water Resources is the relevant decision-maker for the awarding of grants to applicants.

 

All unsuccessful applicants were entitled to receive a verbal debrief as part of the applicant assessment process.  The line area responsible for administering this activity is committed to best practice in relation to resolving disputes and/or complaints.  Where a problem or complaint had been identified, the complaint would have been dealt with in line with the Department of the Environment and Energy's Service Charter, http://www.environment.gov.au/about-us/publications/service-charter.

 

No further merits review arrangements apply.

 

Restoring the Balance in the Murray-Darling Basin

 

Funding of $3.1 billion has been allocated to this activity from 2007-08 to 2018-19.

 

This aim of this program is to purchase water entitlements so that the water allocated to those entitlements can be used for the environment.  This will improve the health of the Basin's rivers, wetlands and floodplains.

 

Strategic purchases will be pursued under future tender rounds or through unsolicited offers made to the department, subject to approval from the Commonwealth Minister for Agriculture and Water Resources.  The purchase strategy is targeted toward bridging the gap to the Sustainable Diversion Limits specified in the Murray-Darling Basin Plan.

 

Information on past, current and future tenders is made available at: http://www.agriculture.gov.au/water/markets/commonwealth-water-mdb

 

A merits review process is in place. Complaints can be made in writing by emailing waterpurchasing@agriculture.gov.au or by letter to 'Client Services Officer, Department of Agriculture and Water Resources, GPO Box 858, Canberra, ACT 2601'.

 

Complaints will be investigated by the Divisional Complaints Officer and the Department Client Services Officer.  If grounds exist for the complaint, it will be escalated for further investigation by an independent senior executive of the department.  A response to complainants will be provided within 20 days.

 

Quarterly reports containing Market price information for Murray-Darling Basin Water Entitlements

 

Funding of up to $230,000 per annum has been allocated to this activity.

 

The department commissions water entitlement market reports to inform applicants (irrigators, infrastructure operators, farming cooperatives, state government partners) to Water Division infrastructure programs of current market prices for irrigation water.  The reports also provide market intelligence and pricing for the Water Division.  The reports will move from quarterly to monthly reporting from October 2016.

 

This is not a grant program and is implemented via a procurement process in line with the Commonwealth Procurement Rules.  This spending was approved by an Assistant Secretary at the Department of the Environment and Energy as part of a tender process carried out through a departmental procurement panel.

 

A merits review process is in place. Complaints can be made in writing by emailing waterpurchasing@agriculture.gov.au or by letter to 'Client Services Officer, Department of Agriculture and Water Resources, GPO Box 858, Canberra, ACT 2601'.

 

Complaints will be investigated by the Divisional Complaints Officer and the Department Client Services Officer.  If grounds exist for the complaint, it will be escalated for further investigation by an independent senior executive of the department.  A response to complainants will be provided within 20 days.

 

New table item 172 establishes legislative authority for the Government to provide a one-off payment to Dairy Australia Limited (Dairy Australia) to assist Dairy Australia to expand delivery of its existing Tactics for Tight Times (TFTT) program. 

 

Grant funding of $900,000 for the TFTT program was announced jointly on 25 May 2016 by the Deputy Prime Minister and Minister for Agriculture and Water Resources, the Hon Barnaby Joyce MP, and the Minister for Human Services, the Hon Alan Tudge MP, as part of the Government's Dairy Support Package.

 

The TFTT program provides one-on-one sessions with farmers to assess their financial situation as well as providing information, services and activities to assist dairy farmers in dealing with challenging conditions in the dairy market.

 

The overarching objective of Dairy Australia's TFTT program is to support dairy farmers to confidently manage current market and seasonal conditions and enhance their capacity to confront the challenges of the future.  The TFTT program aims to increase farmer resilience and business management capabilities by providing appropriate tools and expert advice, targeted to the circumstances of each farming enterprise/business.

 

The TFTT program assists to strengthen the industry through: equipping individual dairy farmers with specific agronomic and business advice; technical extension advice; and appropriate management strategies to allow them to investigate all the options available in order to make sustainable business decisions based on an assessment of their circumstance for 2016-17 and future years.

 

The TFTT program is delivered by Dairy Australia and its Regional Development Programs.  Provision of a one-off grant to Dairy Australia to supplement the TFTT program will allow up to an additional 900 dairy farmers affected by the drop in farm gate milk prices to access specialist one-on-one advice through the 'Taking Stock' element of the TFTT program.  The cost of providing this specialist business advice is approximately $1,000 per dairy farmer.  The service is provided at no charge to dairy farmers.

 

Further information about the TFTT program is available through the Dairy Australia website at www.dairyaustralia.com.au.

 

Funding will be provided to Dairy Australia as a one-off grant on a non-competitive basis.  The Minister for Agriculture and Water Resources will make the decision in relation to the $900,000 grant to Dairy Australia.  The grant will be made in accordance with the Commonwealth Grants Rules and Guidelines.  A funding deed will be signed with Dairy Australia, setting out the milestone and reporting requirements for the payment.

 

Information about the grant can be found on the department's website at http://www.agriculture.gov.au/about/assistance-grants-tenders.

 

The payment has been identified by industry and the department as the most efficient way of providing essential one-on-one advice to dairy farmers affected by the drop in farm gate milk price, to analyse their businesses and undertake future planning.  This approach is consistent with the Government's policy on reducing red tape and duplication of services.

 

Merits review is not applicable to this grant due to the targeted, non-competitive nature of the funding.

 

Funding for this item will come from Program 1.8: Dairy Industry, which is part of Outcome 1: More sustainable, productive, internationally competitive and profitable Australian Agricultural, food and fibre industries through policies and initiatives that promote better resource management practices, innovation, self-reliance and improved access to international markets.  Details will be set out in the Portfolio Additional Estimates Statements 2016-17, Agriculture and Water Resources Portfolio.

 

Noting that it is not a comprehensive statement of relevant constitutional considerations, the objective of the item references the following powers of the Constitution:

*         the trade and commerce power (section 51(i));

*         the external affairs power (section 51(xxix));

*         the communications power (section 51(v));

*         the Commonwealth executive power (section 61); and

*         the territories power (section 122).

 

 

 

 

 

 

 


Statement of Compatibility with Human Rights

 

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Financial Framework (Supplementary Powers) Amendment (Agriculture and Water Resources Measures No. 3) Regulation 2016

 

This Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

 

Section 32B of the Financial Framework (Supplementary Powers) Act 1997 (the FF(SP) Act) authorises the Commonwealth to make, vary and administer arrangements and grants specified in the Financial Framework (Supplementary Powers) Regulations 1997 (the FF(SP) Regulations) and to make, vary and administer arrangements and grants for the purposes of programs specified in the Regulations.  Schedule 1AA and Schedule 1AB to the FF(SP) Regulations specify the arrangements, grants and programs. 

 

The FF(SP) Act applies to Ministers and the accountable authorities of non-corporate Commonwealth entities, as defined under section 12 of the Public Governance, Performance and Accountability Act 2013

 

Schedule 1 to the Regulation amends the Principal Regulations to establish legislative authority in Schedule 1AB for spending by the Government on two activities which are administered by the Department of Agriculture and Water Resources.  

 

Funding will be provided for:

*         the Sustainable Rural Water Use and Infrastructure Program, a national program that funds investment in rural water use, management and efficiency, including improved water knowledge and water purchase for the environment; and

*         a one-off payment of $900,000 to Dairy Australia Limited (Dairy Australia) to assist Dairy Australia to expand delivery of its existing Tactics for Tight Times (TFTT) program which provides one-on-one sessions with farmers to assess their financial situation as well as providing information, services and activities to assist dairy farmers in dealing with challenging conditions in the dairy market.

 

The Minister for Agriculture and Water Resources has portfolio responsibility for these programs.

 

Human rights implications

 

The Regulation does not engage any of the applicable rights or freedoms.

 


 

Conclusion

 

This Regulation is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

Senator the Hon Mathias Cormann

Minister for Finance

 


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