EXPLANATORY STATEMENT

 

Select Legislative Instrument 2006 No. 136

 

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

 

Primary Industries (Excise) Levies Act 1999

 

Primary Industries (Excise) Levies Amendment Regulations 2006 (No. 3)

 

 

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Act), provides that the Governor-General may make regulations 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 Act provides for a range of levies on specified primary industry products.  Clause 2 of Schedule 27 to the Act provides that the regulations may impose a levy on one or more specified products in circumstances ascertained in accordance with the regulations.  Clause 6 of Schedule 27 to the Act provides that the rate of levy is ascertained in accordance with the regulations.  Schedule 16 to the Act provides for a levy on laying chickens. 

 

The Newcastle disease outbreaks in May and October 2002 at Meredith in Victoria and Horsley Park in NSW respectively were the first disease outbreaks to be dealt with under the provisions of the Emergency Animal Disease Response Agreement (EADRA).  The EADRA, approved by the Government in March 2002, provides for Commonwealth underwriting of the industry share of the costs of dealing with an emergency animal disease outbreak where industries cannot pay for those costs immediately.  These costs are the costs associated with eradicating the disease outbreak, such as animal destruction and fumigation of premises.  On 1 April 2003 new levy arrangements were inserted into the Primary Industries (Excise) Levies Regulations 1999 to allow the livestock industries (including the chicken meat and chicken egg industries) to fund their obligations under the EADRA. 

 

Initially the Emergency Animal Disease Response (EADR) levies were set at zero, with the exception of the honey-bee industry.  In 2004, operative rates were set for the EADR levy in respect of the chicken meat and egg industries, as follows:

-        EADR levy for chicken meat:   0.033 cents per meat chicken; and

          -        EADR levy for chicken eggs:          1.5 cents per laying chicken.

 

These were intended allow the chicken meat and egg industries to repay the debt to the Commonwealth, incurred during the Newcastle disease outbreaks at Meredith, Victoria and Horsley Park, NSW, over a five (5) and two (2) year period respectively.

 

The Regulations return the EADR levy for laying chickens to zero, as the egg industry's share of the costs of dealing with the emergency disease outbreaks has now been fully repaid.

 

Subclause 14 (2) of Schedule 27 to the Act provides that if there is a body designated in relation to a particular product, then before the Governor-General makes regulations in relation to that product, the Minister must take into consideration any relevant recommendation made to the Minister by the designated industry body.  The designated body for the egg industry is the Australian Egg Corporation Limited (formerly the Australian Egg Industry Association Inc.).

In accordance with these provisions, the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry has considered the recommendation of the Australian Egg Corporation Limited that the existing EADR levy be reduced to nil.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Regulations commence on 1 July 2006.