Commonwealth Numbered Regulations - Explanatory Statements

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FISHERIES LEVY (NORTHERN PRAWN FISHERY) REGULATIONS (AMENDMENT) 1993 NO. 320

EXPLANATORY STATEMENT

STATUTORY RULES 1993 No. 320

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

Fisheries Levy Act 1984

Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment)

Section 8 of the Fisheries Levy Act 1984 (the Act) empowers the Governor-General to make regulations for the purposes of sections 5 and 6 of the Act.

Paragraphs 5(bc) and (bd) of the Act impose levy on the allocation and renewal of allocation, respectively, of units of fishing capacity, being units of fishing capacity prescribed for the purposes of those paragraphs.

Subsection 6(1) of the Act provides, so far as is relevant, that the amount of levy imposed on the allocation or renewal of allocation of a unit of fishing capacity is the amount specified in the Regulations.

Subsection 3(2) of the Act provides that a reference in the Act to units of fishing capacity is a reference to the units into which the fishing capacity for a fishery is divided under a plan of management for a fishery.

Under the Northern Prawn Fishery Management Plan, the fishing capacity of the Northern Prawn Fishery (the NPF) is divided into units called Class A units, which are calculated by reference to the size and engine power of boats authorised to operate in the fishery and allocated to holders of boat licences. The NPF is a limited entry fishery and levies are payable by the holders of Class A units.

By agreement with industry representatives, annual levies are paid in respect of leviable Class A units, in two instalments which correspond to the two fishing seasons in the fishery. Each instalment comprises different components and it is therefore necessary to prescribe a different levy amount for the commencement of each season.

A revised levy for the period 14 December in each year to 13 July inclusive in the subsequent year is required to cover the annual costs incurred by the Australian Fisheries Management Authority in managing the NPF, an amount to fund fisheries research, and the costs of servicing a loan taken out to fund the Voluntary Adjustment Scheme (VAS). The VAS was used to reduce fishing effort by providing a mechanism whereby unitholders were encouraged to surrender their Class A units. Unitholders were compensated for the value of these units through funds obtained from a loan taken out on behalf of the industry.

Management and research costs are levied once a year in December, while VAS costs are levied twice a year, in July and December. The following table sets out the current levy (applying from July 1993) and the new levy to apply from 14 December 1993



Management Costs
Research Contribution
VAS Costs
Total levy payable
Levy payable is then divided by        
the number of Leviable units
Levy per unit (rounded)

July 1993
($000's)
-
-
1,249
1,249

53,286 units
$23.50

      







December 1993
($000's)
1,067
253
1,066
2,386

53,355 units
$44.75

One of two VAS loans was paid out in August 1993, resulting in the reduction in the VAS costs for the December 1993 levy.

The effect of the Regulations is to amend the principal Regulations so as to require the payment of levy in the sum of $44.75 per leviable unit for the period 14 December in each year to 13 July inclusive in the subsequent year.

Details of the Regulations which commenced on gazettal, are set out below:

Regulation 1 provides for the amendment of the Principal Regulations.

Regulation 2 specifies the amount of levy payable in respect of each such unit.


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