EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 208

 

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 2007 (No. 7)

Section 8 of the Primary Industries (Excise) Levies Act 1999 (the Excise Act) provides that the Governor-General may make regulations, not inconsistent with this Act, prescribing matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act.

The purpose of the Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 7) (the Excise Amendment Regulations) is to effect a change from voluntary contributions to statutory levies and reflect new levy rates on the slaughter of cattle, sheep, lambs and goats.

Background

Since the 1998 red meat industry restructure, the red meat processor industry has paid voluntary contributions to a private sector company – the Australian Meat Processor Corporation Ltd (AMPC) – to fund its marketing and research and development programmes.

The red meat processor industry has requested that funding arrangements for AMPC be changed from a voluntary contributions system to a statutory based one. The voluntary contribution system was failing due to highly competitive industries and the emergence of “free riders” – processors who weren’t contributing but still benefiting from the sector’s marketing and R&D activities. Under the voluntary system, contributions raised approximately $14 million a year; in comparison the statutory levy system will raise approximately $16 million a year, with the funds to be managed by AMPC. Following this request, amendments have been made to the Australian Meat and Live-stock Industries Act 1997 (AMLI Act) and the Excise Act through the Agriculture, Fisheries and Forestry Legislation Amendment (2007 Measures No 1) Act 2007.

 

The Primary Industries (Excise) Levies Regulations 1999 had previously set the meat processor sector’s operating levy rates at zero to accommodate the operation of the voluntary contributions system, which meant no statutory levies were collected under this provision. Subsequent clauses in both these schedules allowed for a “default” statutory levy system to be invoked should AMPC fail to meet its obligations under the red meat industry Memorandum of Understanding. In effect, the Excise Amendment Regulations invoke the statutory system, but with new levy rates as determined by industry and with the money being directed to AMPC rather than to another service company.

Details of the Regulations are provided in the Attachment.

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

The Regulations commence on 1 September 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT

Details of the Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 7)

Regulation 1 - Name of Regulations

This regulation provides that the title of the Regulations is the Primary Industries (Excise) Levies Amendment Regulations 2007 (No. 7)

Regulation 2 - Commencement

This regulation provides for the Regulations to commence on 1 September 2007.

Regulation 3 - Amendment of Primary Industries (Excise) Levies Regulations 1999

This regulation provides that the Primary Industries (Excise) Levies Regulations 1999 are amended as set out in the Schedule.

Schedule - Amendments

Item [1]

Schedule 1, clause 1. This item provides that clause 1 of Schedule 1 to the Primary Industries (Excise) Levies Regulations 1999 is repealed. Clause 1 is redundant because the voluntary contributions system no longer operates now that statutory levies are imposed.

Item [2]

Schedule 1, subclause 2 (1). This item allows for the levy rate on the slaughter of cattle to change from 0.74 of a cent per kilogram to 0.2 of a cent per kilogram, to be destined for the meat processor marketing body.

Schedule 1, subclause 2 (2). This item allows for the levy rate on the slaughter of cattle to change from 0.247 of a cent per kilogram to 0.4 of a cent per kilogram, to be destined for the meat processor research body.

Item [3]

Schedule 17, clause 1. This item provides that clause 1 of Schedule 17 to the Primary Industries (Excise) Levies Regulations 1999 is repealed. Clause 1 is redundant because the voluntary contributions system no longer operates now that statutory levies are imposed.

Item [4]

Schedule 17, subclause 2 (1). This item allows for the levy rate on the slaughter of sheep to change from 7.75 cents per head to 6 cents per head, to be destined for the meat processor marketing body.

Schedule 17, subclause 2 (2). This item allows for the levy rate on the slaughter of sheep to change from 3.125 cents per head to 9 cents per head, to be destined for the meat processor research body.

Item [5]

Schedule 17, subclause 3 (1). This item allows for the levy rate on the slaughter of lambs to change from 18.25 cents per head to 7 cents per head, to be destined for the meat processor marketing body.

Schedule 17, subclause 3 (2). This item allows for the levy rate on the slaughter of lambs to change from 3.125 cents per head to 9 cents per head, to be destined for the meat processor research body.

Item [6]

Schedule 17, subclause 4 (1). This item allows for the levy rate on the slaughter of goats to change from 5.425 cents per head to 3 cents per head, to be destined for the meat processor marketing body.

Schedule 17, subclause 4 (2). This item allows for the levy rate on the slaughter of goats to change from 3.125 cents per head to 7 cents per head, to be destined for the meat processor research body.