Commonwealth Numbered Regulations - Explanatory Statements

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PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (MACADAMIA NUT) REGULATIONS1992 NO. 50

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 50

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

Primary Industries Levies and Charges Collection Act 1991

Horticultural Levy Act 1987

Horticultural Export Charge Act 1987

Primary Industries Levies and Charges Collection (Macadamia Nut) Regulations

The Governor-General may make regulations to impose levies and export charges on classes of horticultural products under Subsections 30(1) of the Primary Industries Levies and Charges Collection Act 1991 (the Collection Act), 14(1) of the Horticultural Levy Act 1987 (the Levy Act), and 14(1) of the Horticultural Export Charge Act 1987 (the Export Charge Act). The proposed regulations impose a statutory levy and export charge on the macadamia nut industry, at the industry's request.

Section 6 of the Levy Act provides for a levy to be imposed on horticultural products produced in Australia and sold by the producer or used in the production of other goods. Section 6 of the Export Charge Act provides for an export charge to be imposed on products produced in Australia and exported. Funds raised under the arrangements would be directed to the Australian Horticultural Corporation (AHC) and the Horticultural Research and Development Corporation (HRDC). The Australian Horticultural Corporation carries out domestic and export market promotion for horticultural industries.

The Horticultural Research and Development Corporation carries out joint industry/government funded research and development (R&D) for horticultural industries.

Sections 8 and 9 of the Levy and Export Charge Acts provide that regulations may fix the rate of levy and export charge destined for the AHC and the HRDC for a class of leviable and chargeable product. The Regulations set rates of 2 cents per kilogram nut-in-shell to be directed to the AHC for marketing and of 1 cent per kilogram nut-in-shell to be directed to the HRDC for R&D.

Subsections 7 (1), (2) and (3) of the Collection Act provide that, for better securing the payment of levy and export charge, intermediaries may be declared liable to pay levy and export charge on behalf of the producer. The Regulations prescribe macadamia nuts for collection by intermediaries consisting of processors who process nuts, first purchasers who purchase nuts, buying and selling agents who trade in macadamia nuts and exporting agents who export nuts. Section 8 of the Collection Act allows the intermediaries to deduct amounts paid from proceeds due to the producer.

Subsection 13(2) of the Levy Act and section 13 of the Export Charge Act provide that regulations may exempt from levy and export charge subclasses of leviable or chargeable products or specified classes of producers. The Regulations exempt from levy and export charge macadamia nuts sold by producers by retail sale, or exported, where the quantity sold is too small to allow viable collection. There is also a maximum liability for any one grower in recognition that the very large growers already undertake considerable marketing and R&D activity to the benefit of the industry as a whole.

Subsection 14(7) of the Levy and Export Charge Acts require the Corporations to consult with the eligible industry body for the horticultural product before making a recommendation to the Minister on the rate of levy and exemptions to apply. The Regulations prescribe the Australian Macadamia Society Ltd as the eligible industry body with which the Corporations must consult. The recommendation to the Minister must be accompanied by a written statement of the views of the industry body to ensure that industry supports the arrangements.

Subsections 14(4) and 14(5) of the Levy and Export Charge Acts provide that, before making regulations to fix a rate of levy and export charge, or to exempt subclasses of horticultural product or classes of producers from levy or export charge, the Governor-General must take into consideration any relevant recommendation made to the Minister by the Corporations. The Regulations, recommendations of the Corporations and industry view are consistent. Copies of the recommendations and a statement from the Society in support of the levy and export charge are at Attachment A.

The Regulations also provide for the date of commencement, manner of payment of charge, the provision of returns by producers and intermediaries and the keeping of records. Details of the proposed Regulations are given at Attachment B.


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