Commonwealth Numbered Regulations - Explanatory Statements

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MEAT AND LIVE-STOCK INDUSTRY REGULATIONS 1995 NO. 203

EXPLANATORY STATEMENT

Statutory Rules 1995 No. 203

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

Meat and Live-stock Industry Act 1995

Meat and Live-stock Industry Regulations

Subsection 226(1) of the Meat and Live-stock Industry Act 1995 (the Act) provides that the GovernorGeneral may make regulations for the purposes of the Act.

The purpose of the Act is to provide for the establishment of the Meat Industry Council (MIC), its functions, powers, membership and related matters. It is also to clearly define the new relationship between the Australian Meat and Live-stock Corporation (AMLC), the Meat Research Corporation (MRC), the Meat Industry Council and a meat industry selection committee (which will be activated as necessary), and to confine the roles of AMLC and MRC to program delivery. In general, the Meat Industry Council will be responsible for developing strategic industry policy, which will then provide the framework under which AMLC and MRC will develop their corporate and operational plans.

The Act forms the major component of the Meat and Live-stock Industry Review package, a legislative package which is to establish industry arrangements intended to give the industry a greater role and responsibility in deciding its own affairs and move it to a less regulated environment. The Act is transitional and eventually the three statutory industry authorities covered by it will revert to a nonstatutory status, but having provided a framework within which the industry can effectively operate over the longer term. It will also enable industry to identify its problems and devise commercial responses to them, while ensuring an industry-wide commitment to, and consensus in, this process.

The purpose of the regulations are to:

-       prescribe procedural matters related to the holding of industry conferences;

-        prescribe procedural matters related to the holding of industry general meetings;

-       prescribe matters relating to the Australian Meat and Live-stock Corporation's (AMLC) maintenance of industry registers;

-        prescribe schemes which AMLC may operate with others and that market goods other than meat and live-stock;

-        prescribe bodies and organisations, with regard to consultation funding and exclusion of their president or chairperson from membership of AMLC and the Meat Research Corporation (MRC), respectively;

-        require the Meal Industry Council, AMLC and MRC to pay State and Territory pay-roll tax by removing pay-roll exemptions;

Conferences

These regulations cover industry conferences. Conferences are intended to provide the major annual meeting of the industry and allow industry to consider matters which concern it, promote a better understanding of the problems in industry and foster a consensus on the policies to be instituted. The purpose of the regulations relating to conferences is to permit people entitled to attend to receive adequate notification of an upcoming conference and thereby allow the smooth operation of these industry meetings.

These regulations provide for procedural matters related to the holding of industry conferences, including:

•       the time period required between notice to be published in a newspaper circulating throughout Australia and the holding of a conference. The Meat Industry Council (MIC) is to have published in a newspaper circulating throughout Australia a notice of the industry conference no later than 70 days before the conference;

•       notification to registered persons of days, times and place and other matters relevant to the conduct of a conference. The MIC is to send the notice out to registered persons at least 42 days prior to the date of the conference; and

•       documents relating to a conference sent to registered persons or other people entitled to attend. The MIC is to send documents out to registered persons at least 42 days prior to the date of the conference.

The period of notice to be given is designed to provide all meat and livestock industry levy and charge payers adequate time to arrange their attendance at the conference or to appoint a proxy to attend, as appropriate.

Given the size of the Act, it has been decided that these provisions are to be in the Regulations. The periods prescribed by these regulations are the same as contained in Part 3A of the Australian Meat and Live-stock Corporation Act 1977, which has dealt with the holding of Annual General Meetings of the industry prior to 1 July 1995.

General Meetings

These regulations cover annual general meetings (which generally mirror those for conferences) and special general meetings.

The purpose of an annual general meeting is to provide a formal and regular accountability mechanism for industry levypayers. These regulations prescribe the time period required between publication of the notice and the holding of an annual general meeting. As for conferences, the notice is to be published in a newspaper circulating throughout Australia no later than 70 days before the actual general meeting is held.

These regulations also provide for procedural matters, including:

•       notification to registered persons of days, times and place and other matters relevant to the conduct of an annual general meeting. The MIC is to send this out to registered persons at least 42 days prior to the date of an annual general meeting;

•       documents relating to an annual general meeting sent to registered persons or other people entitled to attend. The MIC is to send this out to registered persons at least 42 days prior to the date of the annual general meeting;

•       notification to MIC of the terms of any motion to be moved at an annual general meeting. The terms of a motion to be moved at an annual general meeting is to be furnished to the MIC at least 56 days prior to the date of that meeting;

•       appointment of people to act as proxies;

•       method/s voting to be conducted at an annual general meeting, including the calculating number of votes;

•       the means by which the number of votes by a registered person or their proxy may be cut at an annual general muting; and

•       the nature of majority votes required to resolve a question arising at an annual general meeting.

Special general meetings are only to occur under exceptional circumstances and provide for industry consideration of levy/charge rate change motions. These regulations prescribe the time period required between publication of the notice and the holding of a special general meeting. Unlike for conferences and annual general meetings, the notice is to be published in a newspaper circulating throughout Australia no later than 42 days before the special general Meeting is held.

These regulations also cover procedural matters for special general meetings, including:

•       notification to registered persons of days, times and place and other matters relevant to the conduct of an special general meeting. The MIC is to send this out to registered persons at least 42 days prior to the date of the special general meeting

•       documents relating to a special general meeting sent to registered persons or other people entitled to attend. The MIC is to send this out to registered persons at least 42 days prior to the date of the special general meeting;

•       appointment of people to act as proxies;

•       method/s voting to be conducted at a special general meeting, including the calculating number of votes;

•       the means by which the number of votes by a registered person or their proxy may be cast at a special general meeting; and

•       nature of majority votes required to resolve a question arising at a special general meeting.

Registers

These regulations cover AMLC's maintenance of registers for the industry. The AMLC is to maintain three registers of industry levy and charge payers to determine eligibility to attend conferences and general meetings, and voting rights at general meetings.

These regulations provide prescribed matters relating to the holding of registers by the AMLC including:

•       manner of maintaining the three registers;

•       classes of persons to be entered on live-stock producers register, on cattle producers register and on meat processors and meat or live-stock exporters register;

•       closure of a register for purposes of a conference or general meeting;

•       documentary evidence of entitlement to be entered on a register and/or to remain on a register;

•       timing for returns to be furnished by persons entered on registers;

•       particulars to be entered on registers (information of live-stock or cattle owned by registered person); and

•       the circumstances in which persons entered on a register become ineligible to remain on that register.

Prescribed Schemes

This regulation prescribes the AUS-MEAT and the Computer Assisted Live-stock Marketing (CALM) program, as schemes in which AMLC, in cooperation with others, can facilitate the marketing of goods other than meat and live-stock as defined by the Act. This allows other species to participate in AUS-MEAT, a product description and quality assurance program, and to allow AMLC to introduce private equity into the Computer Assisted Live-stock Marketing (CALM) program.

While the intention is to have CALM eventually as a fully privatised entity, it is possible that this could take some time or the negotiations for it to become an unincorporated joint venture shortly after 1 July 1995 may not proceed as planned. For this reason the regulations have prescribed CALM in such a way as to cover both the present arrangement under AMLC (as a committee) and as a joint venture.

Prescribed Bodies and Organisations

These regulations prescribe:

•       industry bodies representing different sectors of the meat and livestock industry with which AMLC or MRC can consult and which can receive reimbursement for the costs incurred in this consultation process; and

•       industry organisations from which the chairperson or president are specifically excluded from appointment as a member of AMLC and MRC.

Liability to Taxation

Subsections 222(1), (2) and (4) provide that the Meat Industry Council, the Australian Meat and Livestock Corporation and the Meat Research Corporation are subject to taxation (other than income tax) under the laws of the Commonwealth but not subject to State or Territory taxation laws (other than stamp duty). However, subsection 222(3) provides that the Meat Industry Council, the Australian Meat and Live-stock Corporation and the Meat Research Corporation may be subject to taxation under a specified law of a State or Territory if it is provided for in the regulations.

The purpose of the regulations relating to pay-roll tax is to remove the exemption of the Meat Industry Council, the Australian Meat and Live-stock Corporation and the Meat Research Corporation from State and Territory taxation laws where these laws relate to pay-roll tax so these statutory authorities are required to pay pay-roll tax in the States and Territories. Removing the exemption of State and Territory pay-roll taxes for statutory authorities is in line with established Commonwealth Government policy on this matter. In addition, such regulations will also mean that these statutory authorities will not possess (artificial) advantages not enjoyed by the private sector. This is in line with the Commonwealth's policy of competitive neutrality for all government agencies, espoused under the Hilmer Report and agreed to on an inter-governmental basis.

The regulations relating to pay-roll tax prescribe the relevant State and Territory pay-roll taxes which the Meat Industry Council, the Australian Meat and Live-stock Corporation and the Meat Research Corporation will be subject to for this purpose and will have effect from 1 July 1995.

PART 1 - PRELIMINARY

Regulation 1 - Citation

This regulation provides for the Regulations to be called the Meat and Live-stock Industry Regulations.

Regulation 2 - Commencement

This regulation provides for the Regulations to commence at the same time as the principal Act on 1 July 1995.

Regulation 3 - Interpretation

This regulation provides various definitions that will assist in the interpretation of the Regulations.

PART 2 - CONFERENCES

Regulation 4 - Publication of notice of industry conference

This regulation prescribes that MIC is to publish a notice of an industry conference at least 70 days prior to the date which that conference is held.

Regulation 5 - Notice to registered persons

This regulation prescribes that MIC notify each registered person at least 42 days prior to the date on which an industry conference is to begin, providing the days, times and place of the conference and any associated annual general meeting.

PART 3 - GENERAL MEETINGS

Regulation 6 - Notice to registered persons of meeting and motions - annual general meetings

This regulation prescribes that MIC notify each registered person at least 42 days prior to the date on which an industry annual general meeting is to be hold, providing the day, time and place of that meeting, terms of any relevant motions put forward. an approved proxy form, and a copy of the latest AMLC, MRC and MIC annual reports.

Regulation 7 - Publication of notice of special general meeting

This regulation prescribes that MIC is to publish a notice of an industry special general meeting at least 42 days prior to the date which that meeting is hold. Notice must include advice on which date that the registers will close for the purposes of that meeting.

Regulation 8 - Notice to registered persons of meeting and motions - special general meetings

This regulation prescribes that MIC notify each registered person at least 42 days prior to the date on which an industry special general meeting is to be held, providing the day, time and place of that meeting, terms of any motions put forward by the MIC Chairperson (or the Chair's appointee), and an approved proxy form.

Regulation 9 - Notice of motion of no confidence

This regulation prescribes that any mover of a no confidence motion provide at least 56 days written notice of the terms of that motion to MIC. The notice is to be no more than 1,000 words in length and provide evidence of required support by other registered persons.

Regulation 10 - Voting at annual general meetings

This regulation permits cattle and live-stock registered persons to vote on all motions at annual general meetings except those relating to making regulations on levy and charge rates for species for which they do not qualify to be on the register. Persons on the exporter and processor register may vote on all motions at annual general meetings, but only are entitled to one vote each.

The regulation also prescribes how many votes are required to pass specific motions and provides for when a show of hands can be called for.

Regulation 11 - Voting at special general meetings

This regulation permits cattle and live-stock registered persons to vote on all motions at special general meetings except those relating to making regulations on levy mid charge rates for species for which they do not qualify to be on the register. Persons on the exporter and processor register may vote on all motions at special general meetings, but only are entitled to one vote each.

The regulation also prescribes how many votes are required to pass specific motions.

Regulation 12 - Calculation of number of votes

This regulation provides the number of votes that each registered cattle producer and non-bovine live-stock producer are entitled to, based upon their respective holdings of cattle and non-bovine livestock.

Regulation 13 - Proxies

This regulation provides for the appointment of a proxy by a registered person.

Regulation 14 - Partnerships and trustees

This regulation provides for the representation of a partnership or a trustee (of a trust estate) at a general meeting by a single person or proxy.

PART 4 - REGISTERS

Regulation 15 - Persons entitled to be registered non-bovine live-stock producers

This regulation provides the class of persons entitled to be entered on the non-bovine live-stock producers register.

Regulation 16 - Persons entitled to be registered cattle producers

This regulation provides the class of persons entitled to be entered on the cattle producers register.

Regulation 17 - Persons entitled to be registered exports and processors

This regulation provides the class of persons entitled to be entered on the exporters and processors register.

Regulation 18 - Maintaining registers

This regulation provides that particulars collected in relation to each of the three industry registers and each prescribed annual general meeting be kept separate, and provides that this information be entered on the relevant register as soon as practicable.

Regulation 19 - Particulars to be entered on registers

This regulation prescribes information to be provided to AMLC in applications for registration.

Regulation 20 - Application for entry on register

This regulation provides that an application for registration by cattle producers or non-bovine producers is to be made on a form as set out in Form 1 in the Schedule, and for exporters and processors he made on a form as set out in Form 2 in the Schedule. Evidence must also be provided to AMLC where a person is authorised under a law to slaughter live-stock for human consumption.

Regulation 21 - Returns

This regulation prescribes 77 days as the minimum period before an annual general meeting which AMLC may seek prescribed information from a registered person, in the form of a return, establishing that person's entitlement to remain listed on that register. For registered cattle producers and non-bovine livestock producers the return is to be filled out on a form as set out in Form 3 in the Schedule, and for registered exporters and processors the return is to be filled out on a form as set out in Form 4 in the Schedule.

Regulation 22 - Partnerships and trustees

This regulation provides that a partnership which is varied in certain ways continues to be taken to be the same person as is on the relevant register.

Regulation 25 - Closure of registers

This regulation prescribes that the registers are to close 49 days prior to an industry conference commencing or a general meeting is to be held.

PART- 5 - PRESCRIBED SCHEMES

Regulation 24 - Prescribed schemes

This regulation prescribes the AUS-MEAT, a product description and quality assurance program, and the Computer Assisted Live-stock Marketing (CALM) program, thereby allowing AMLC, in cooperation with another person, to facilitate the marketing of goods other than meat and live-stock as defined by the principal Act.

The purpose of this is to allow other species to participate in AUS-MEAT and to allow AMLC to introduce private equity into CALM. It is intended that CALM will eventually be fully privatised, but this provision ensures its commercially viable in the transitional stage.

PART 6 - PRESCRIBED BODIES AND ORGANISATIONS

Regulation 25 - Eligible industry bodies

This regulation prescribes industry bodies representing different sectors of the meat and livestock industry with which AMLC or MRC can consult and which can receive reimbursement for the costs incurred in this consultation process. The bodies prescribed are the Australian Livestock Exporters' Association, the Australian Lotfeaders Association and the Goat Industry Council of Australia.

Regulation 26 - Prescribed organisations

This regulation prescribes industry organisations from which the chairperson or president are specifically excluded from appointment as a member of AMLC and MRC. The organisations prescribed are the Australian Livestock Exporters' Association, the Australian Lotfeeders Association, the Australian Meat Council, the Meat and Allied Trades Federation of Australia, the Cattle Council of Australia, and the Sheepmeat Council of Australia.

PART 7 - LIABILITY TO TAXATION

Regulation 27 - Specified laws

This regulation prescribes that subsection 222(3) of the Act which provides the exemption for the Meat Industry Council, the Australian Meat and Live-stock Corporation and the Meat Research Corporation from State and Territory taxes, does not apply in relation to taxation under any of the following laws:

Pay-Roll Tax Act 19 71 of New South Wales;

Pay-Roll Tax Act 19 71 of Victoria;

Pay-Roll Tax Act 19 71 of Queensland;

Pay-Roll Tax Act 1971 of Western Australia;

Pay-Roll Tax Act 1971 of South Australia;

Pay-Roll Tax Act 1971 of Tasmania;

Pay-Roll Tax Act 19 71 of the Northern Territory; and

Pay-Roll Tax Act 1971 of the Australian Capital Territory.

The proposed regulations are to commence in conjunction with the Act on 1 July 1995.


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