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INDUSTRIAL CHEMICALS (NOTIFICATION AND ASSESSMENT) AMENDMENT REGULATIONS 2007 (NO. 1) (SLI NO 146 OF 2007)
Explanatory STATEMENT
Select Legislative Instrument 2007 No. 146
Subject - Industrial Chemicals (Notification and Assessment) Act 1989
Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1)
Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) provides in part that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The object of the Act provides for a national system of notification and assessment of industrial chemicals for the purposes of aiding in the protection of the Australian people and the environment; providing information and making recommendations about industrial chemicals to Commonwealth, State and Territory bodies; giving effect to Australia’s obligations under international agreements; and collecting statistics in relation to these chemicals.
Subsection 110(1) of the Act provides that the regulations may prescribe fees for specified services. Subsections 110(2) to 110(6) set out details for when fees are due, the payment schedules and other arrangements. The fees for services defined in section 110 are prescribed in the Industrial Chemicals (Notification and Assessment) Regulations 1990.
The purpose of the Regulations is to:
·
increase all fees and charges for the National Industrial
Chemicals
Notification and Assessment Scheme (NICNAS) for 2007-08;
· correct fees for self assessment applications where rounding from several years’ fee increases have created a one dollar misalignment ;
· correct errors in existing fees for applications for standard and limited assessment categories under an approved foreign scheme ; and
· introduce a new fee under an approved foreign scheme for the polymer of low concern (PLC).
NICNAS operates on a fee for service basis for the assessment of new chemicals and applies a levy (NICNAS Registration) across the broader base of industry to fund all other programs such as compliance activities and the assessment of existing chemicals. Without sufficient funding including adequate operational reserves, NICNAS will be unable to satisfactorily discharge its mandatory obligations under the Act. In addition, new chemical assessment activity will not meet the Government’s cost recovery policy. The increase in fees and charges will result in a reserve balance position that meets the agreed operational reserve target.
Existing NICNAS fees and charges will be increased by the Consumer Price Index/Wage Cost Index indexation of 3.83% (rounded to the nearest dollar) commencing 1 July 2007. The last increases to NICNAS fees and charges were made on 1 July 2006.
Current fees for self assessment applications require amendment to correct a one dollar misalignment arising from rounding from several years’ fee increases. Self-assessment charges are to be 60% of the full application fee for the particular assessment category. Correction is also required to existing fees for applications for standard and limited assessment categories under an approved foreign scheme in order to align the fees for notifications under the foreign scheme provisions to be 60% of the normal fee, which currently operates on a rebate basis and is agreed with stakeholders.
Section 43 of the Act provides that the Minister may approve a specified foreign scheme for the purposes of the Act and that a report of a specified kind that is made under the foreign scheme is to be the approved report in relation to the chemical. Paragraph 110(1)(p) of the Act provides that the regulations may prescribe fees for a new industrial chemical notified and assessed under an approved foreign scheme. No fees are currently prescribed for polymers of low concern under approved foreign schemes and the Regulations introduce such a fee, enabling industry access to a wider range of assessment options.
The fee increase was arrived at by agreement with the NICNAS’s Industry Government Consultative Committee (IGCC).
Details of the Regulations are set out in the Attachment.
The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.
The Regulations is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commence on 1 July 2007.
ATTACHMENT
Details of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1)
Regulation 1 provides for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1).
Regulation 2 provides for the Regulations to commence on 1 July 2007.
Regulation 3 provides for Schedule 1 to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).
Item [1]
This item amends subregulation 11AB(1) to increase the fee by 3.83% (rounded to the nearest dollar). There are three Tiers for NICNAS registration. The fee relates to the registration charge amount for Tier 2 annual registration.
This item amends subregulation 11AB(2) to increase the fee by 3.83% (rounded to the nearest dollar). The fee relates to the registration charge amount for Tier 3 annual registration.
This item also corrects a consequential one dollar misalignment in paragraphs 13(2A)(a) and 13(2A)(b) arising from rounding from several years’ fee increases.
This item also increases the fees specified in paragraphs 13(3)(a) and 13(3)(b) to correct existing fees for applications for standard and limited assessment categories under an approved foreign scheme in order to align the fees for notifications under the foreign scheme provisions to be 60% of the normal fee.
This item introduce a new fee at paragraph 13(3)(c) for polymer of low concern notifications lodged under an approved foreign scheme. The new fee will be 60% of the normal fee for polymers of low concern.