Commonwealth Numbered Regulations - Explanatory Statements

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FISHERIES LEVY (NORTHERN PRAWN FISHERY) REGULATIONS (AMENDMENT) 1994 NO. 235

EXPLANATORY STATEMENT

STATUTORY RULES 1994 No. 235

Issued by the authority of the Minister for Resources

Fisheries Levy Act 1984

Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment)

Section 8 of the Fisheries Levy Act 1984 (the Levy 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 Levy 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 Levy 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 Levy Act provides that a reference in the Levy 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 determined under the Fisheries Act 1952 (the Fisheries Act).

The Fisheries Act was repealed by subsection 3(2) of the Fisheries Legislation (Consequential Provision Act 1991 (the Consequential Provisions Act) and regulation of Commonwealth fisheries came under the Fisheries Management Act 1991 (the Management Act). As a transitional arrangement, Part IVA of the Fisheries Act has been perpetuated under the Consequential Provisions Act for a further 3 years and will expire on 3 February 1995. The result is that the fisheries (or parts of fisheries) which are the subject of agreements between the States and the Commonwealth made under Part IVA continue to be managed under the Fisheries Act, instead of being managed under the Management Act, until the sunset provisions of subsection 7(3) of the Consequential Provisions Act take effect. Fisheries that continue to be managed, or partly managed, under the Fisheries Act in this manner are known as "Part IVA fisheries" and include the Northern Prawn Fishery (the fishery).

The fishery is a limited entry fishery. Fishing takes place in the fishery during two seasons each year.

The Northern Prawn Fishery Management Plan (the Plan), determined under the Fisheries Act, provides that the fishing capacity of the fishery is divided into units of fishing capacity. These units comprise 2 classes, Class A units and Class B units. These units are allocated on a seasonal basis to persons who hold licences under the Fisheries Act and who also held units in the previous season. A person is entitled to operate a boat in the fishery during a season if a Class B unit and a particular number of Class A units (as prescribed by the Plan) are allocated to that or another person for that season and those persons then assign those units to the boat.

The Class A units are classified under the Plan as active, surplus or suspense, depending on their history and whether or not they are presently assigned to a boat. An Active Class A unit is a Class A unit currently assigned to a boat under the Plan. A surplus Class A unit is a Class A unit that is not currently assigned to a boat. A suspense Class A unit is a Class A unit that (among other requirements set out in the Plan) has never been assigned to a boat.

The Fisheries Levy (Northern Prawn Fishery) Regulations (the principal Regulations) prescribe that allocations of active Class A units and surplus Class A units under the Plan and the renewal of those allocations are matters in respect of which an amount of levy is specified and also specify the amount of levy. The principal Regulations previously prescribed the levy at a rate of $44.75 per unit for the period 14 December each year to 13 July inclusive in the subsequent year.

The Regulations amend the principal Regulations so as to require the payment of levy in the reduced sum of $34.40 per unit for the period 14 July 1994 to 13 December 1994 inclusive.

The levy paid on the leviable Class A units is paid once in each season, at the time that allocations of units and their renewals take place. Each payment comprises different components. It is therefore necessary to prescribe a different levy amount for the commencement of each season.

Levy payable for the fishing season covered by the Regulations (14 July in a year to 13 December inclusive in the same year) has one component, namely the cost of the next instalment payable on a loan taken out to fund the Voluntary Adjustment Scheme (VAS). The VAS was implemented under the Plan. The VAS reduced fishing effort by encouraging unit holders to surrender their Class A units in return for being paid a set value for their units. These values were paid from the proceeds of a loan taken out on behalf of the unit holders. A Commonwealth subsidy was granted to assist the unit holders to repay the loan.

Levy payable for the other fishing season (14 December each year to 13 July inclusive in the subsequent year), previously covered by the Principal Regulations, was set to cover the annual costs incurred by the Australian Fisheries Management Authority in managing the NPF, an amount to fund fisheries research, and the VAS.

A comparative calculation of the levy rates in the principal Regulations and the Regulations is set out in the following Table:

Table

Item

previous rate

new rate


($000's)

($000's)

Management Costs

1,067

nil

Research Contribution

253

nil

VAS Costs

1.066

1.840

Total levy payable ($000's)

2386

1,840

Levy payable is then divided by the number of leviable units

53,355 units

53,496 units

Levy per unit ($ - rounded)

$44.75

$34.40

The Commonwealth subsidy granted to assist the industry to repay the VAS loan has now been used up, resulting in an increase in the VAS component of the levy.

Under section 7 of the Levy Act, the amount of levy continues to be due and payable on the allocation of a unit and the renewal of the allocation of a unit.

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 new amount of levy payable in respect of the allocation and renewal of allocation of units of fishing capacity in the fishery.


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