FISHERIES RESEARCH AND DEVELOPMENT CORPORATION AMENDMENT REGULATIONS 2001 (NO. 1) 2001 NO. 232

Commonwealth Numbered Regulations - Explanatory Statements

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FISHERIES RESEARCH AND DEVELOPMENT CORPORATION AMENDMENT REGULATIONS 2001 (NO. 1) 2001 NO. 232

EXPLANATORY STATEMENT

STATUTORY RULES 2001 No. 232

Issued by the Authority of the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry

Primary Industries and Energy Research and Development Act 1989

Fisheries Research and Development Corporation Amendment Regulations 2001 (No. 1)

Section 149 of the Primary Industries and Energy Research and Development Act 1989 (the PIERD 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.

The purpose of these regulations is, together with separate regulations under the Primary Industries (Excise) Levies Act 1999, Primary Industries (Customs) Charges Act 1999 and the Primary Industries Levies and Charges Collection Act 1991, to implement a scheme for the imposition, collection and disbursement of a new research and development levy scheme for the fanned prawn industry.

The format of the new levy on fanned prawns follows a similar pattern to other rural levies. The levy is to be imposed on fanned prawns produced in Australia and either delivered to a person other than for storage, sold, or used in the production of other goods. An export charge will apply on farmed prawns exported from Australia, provided that levy was not previously paid on them. The levy will be paid by the producer and the export charge by the exporter. The scheme is expected to raise $100,000 per year for research and development (R&D). The Commonwealth will match eligible expenditure. The moneys raised will be managed under the aegis of the Fisheries Research and Development Corporation (FRDC).

The Regulations declare:

• the whole of the fanned prawn levy and export charge (that are imposed under the Primary Industries (Excise) Levies Act 1999 and the Primary Industries (Customs) Charges Act 1999 respectively) to be the research component; and

• the levy and export charge are being attached to the FRDC; and

• "The fishing industry" to be the primary industry to which the levy and export charge relate.

"The fishing industry" is the broad term used to encompass all of the sectors making up the primary industry relating to fishing. The farmed prawn sector is just one segment. The term fishing industry is defined in the Fisheries Research and Development Corporation Regulations 1991.

This allows funds raised from the levy and export charge to be distributed to FRDC under the Act. FRDC will manage these funds and administer the R&D program in co-operation with the industry.

Additionally, the Regulations also update the style used in the equations for calculating gross value of production (GVP) as well as changing the name of the Department to Department of Agriculture, Fisheries and Forestry.

Subject to section 30A of the Act, which deals with payments to R&D Corporations, FRDC will also receive amounts for Commonwealth matching contributions based on half their eligible expenditure for R&D purposes, up to a limit of 1/2% GVP. GVP is calculated as a moving 3-year average, based on figures supplied by the Department. There are variations in the approach used depending on whether the Commonwealth, a State or a Territory manages the fishery concerned, or whether a total GYP figure is required.

Separate regulations have been prepared to facilitate the imposition and collection of the levy and export charge.

The Office of Regulation Review was consulted in the process of preparing the regulations. A detailed Regulation Impact Statement is included with the separate package of regulations prepared under the Primary Industries (Excise) Levies Act 1999, Primary Industries (Customs) Charges Act 1999 and the Primary Industries Levies and Charges Collection Act 1991, to impose and collect the levy and export charge.

Details of the Fisheries Research and Development Corporation Amendment Regulations 2001 (No. 1) are at Attachment 1.

The Regulations commence on 1 October 2001.

ATTACHMENT 1

FISHERIES RESEARCH AND DEVELOPMENT CORPORATION AMENDMENT REGULATIONS 2001 (No. 1).

Regulation 1 provides for the name of these regulations to be the Fisheries Research and Development Corporation Amendment Regulations 2001 (No. 1).

Regulation 2 provides that the regulations will commence on 1 October 2001.

Regulation 3 provides for Schedule 1 to amend the Fisheries Research and Development Corporation Regulations.

SCHEDULE 1 AMENDMENTS

Item 1 inserts a replacement definition for "Act". "Act" means the Primary Industries and Energy Research and Development Act 1989.

Item 2 removes the definition of "the Act". It was replaced by the definition in item 1.

Item 3 substitutes the heading in regulation 4A. This facilitates the insertion of a new regulation to attach the farmed prawn levies to the Corporation and the subsequent renumbering of later regulations.

Item 4 substitutes the existing regulations 4B, 4C, and 4D.

• The new regulation 4B attaches the farmed prawn levies to the Corporation.

Subregulation 4B(1) provides that for the purpose of paragraph 5 (1) of the Primary Industries and Energy Research and Development Act 1989, the Act, both the levy and export charge (imposed under clause 3.2 of part 3 of Schedule 27 to the Primary Industries (Excise) Levies Act 1999 and clause 3.2 of part 2 of Schedule 14 to the Primary Industries (Customs) Charges Act 1999 respectively) are attached to the Fisheries Research and Development Corporation;

Subregulation 4B(2) provides that for the purpose of paragraph 5(3) (a) of the Act, the whole of the farmed prawn levy and export charge, mentioned in subregulation 4B(1), is to be the research component; and

Subregulation 4B(3) provides that for the purpose of paragraph 5(3) (b) of the Act, the fishing industry is the primary industry to which the levy and charge relate.

• The new regulation 4C provides an update in the style used in the equation used for the calculation of GVP for the fishing industry, whether managed by or on behalf of the Commonwealth, a State, or a Territory. That is, total GVP. The name of the Department has been updated to Department of Agriculture, Fisheries and Forestry.

• The new regulation 4D provides an update in the style used in the equation used for the calculation of GVP for the fishing industry managed by or on behalf of the Commonwealth. That is, Commonwealth GVP. The name of the Department has been updated to Department of Agriculture, Fisheries and Forestry.

• The new regulation 4E provides an update in the style used in the equation used for the calculation of GVP for the fishing industry, whether managed by or on behalf of a State, or a Territory. That is, State or Territory M. The name of the Department has been updated to Department of Agriculture, Fisheries and Forestry.