Commonwealth Numbered Regulations - Explanatory Statements

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SUGAR CANE LEVY REGULATIONS (AMENDMENT) 1992 NO. 300

STATUTORY RULES 1992 No. 300

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

Sugar Cane Levy Act 1987

Sugar Cane Levy Regulations (Amendment)

Subsection 9(1) of the Sugar Cane Levy Act 1987 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Section 6 of the Act imposes a levy on sugar cane delivered by the grower to another person other than for storage on behalf of the grower.

Section 7 of the Act provides that the rate of levy may be prescribed but shall not exceed $0.15 per tonne.

Subsection 9(2) of the Act provides that before making regulations for the purposes of section 7, the Governor-General shall take into consideration any relevant recommendation arising out of consultations between the Minister and the sugar industry organisations.

Currently the prescribed rate of levy under Regulation 3 of the Sugar Cane Levy Regulations is $0.10 per tonne.

Consultations with the Australian Cane Growers' Council Ltd (ACGC) represented by Canegrowers, together with the Australian Sugar Milling Council Pty Ltd (ASMC) and the Australian Cane Farmers Association Ltd (ACFA), resulted in a submission to the Minister requesting that the rate of levy be increased to $0.14 per tonne, commencing in the 1992-93 season.

Section 30 of the Primary Industries and Energy Research and Development Act 1990 (the PIERD Act) provides for research levy money to be paid to Research and Development Corporations. The sugar cane research levy has been attached to the Sugar Research and Development Corporation (SRDC) with effect from 1 October 1990.

The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the SRDC and approved by the Minister. In any one financial year the Commonwealth contribution is limited to 0.5 per cent of the gross value of production (GVP). Estimated Commonwealth expenditure for 1992-93 is $3.25 million. Increased funding to meet the estimated Commonwealth matching obligation in 1992-93 resulting from the proposed increased levy has been provided for in the Forward Estimates process.

As the industry's request to increase the levy accords with the Government's objective of encouraging rural industries to increase their contribution for research to 0.5 per cent of the industry's GVP, the Minister agrees with the recommendations of Canegrowers on behalf of the ACGC, the ASMC and the ACFA. The increase in the prescribed rate of levy represents an increase from 0.39 per cent to 0.65 per cent of the industry's estimated GVP for 1992-93.

Details of the proposed regulations are set out below:

Subregulation 1.1 provides that the Regulations shall commence on 1 October 1992.

Subregulation 2.1 provides for the existing regulations to be amended.

Subregulation 3.1 provides for Regulation 3 (Prescribed rate of levy) of the existing regulations, to be amended to increase the rate of levy applicable to leviable sugar cane to $0.14 per tonne.