Commonwealth Numbered Regulations - Explanatory Statements

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TOBACCO RESEARCH AND DEVELOPMENT CORPORATION REGULATIONS 1995 NO. 85

STATUTORY RULES 1995 No. 85

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

Primary Industries and Energy Research and Development Act 1989

Tobacco Research and Development Corporation Regulations

Section 149 of the Primary Industries and Energy Research and Development Act 1989 (the Act), provides that the Governor-General may make regulations for the purposes of the Act. Before making a regulation to establish an R&D Corporation, as provided for by section 8, the GovernorGeneral is to take into consideration a recommendation made to the Minister by any of the organisations that the Minister considers to represent the relevant industry. All the industry organisations which contribute to tobacco research are signatory to a letter to the Minister (copy attached) requesting that a Tobacco R&D Corporation be established.

The Act provides the legislative authority for the implementation of a rural industry research program funded jointly by the Commonwealth and participating sectors of the primary and energy industries. The arrangements, which rely on the establishment of Rural Research and Development Corporations (R&D Corporations) or R&D Councils for the various industry sectors, are fundamental to Commonwealth efforts to encourage the sustainability and international competitiveness of Australia's primary and energy industries. The Corporations have a separate corporate identity and broader powers than the Councils which are affiliated with the Rural Industries R&D Corporation.

A Tobacco R&D Council was set up by Regulations (Statutory Rules 1990 No 145) under the Act to administer the funding of the joint Commonwealth/industry tobacco research scheme. The industry contribution to research is by way of a levy on the sale and purchase of tobacco leaf imposed by the Tobacco Charge Acts (Nos 1, 2 & 3) 1955. The Commonwealth makes matching payments to the Council on a dollar-for-dollar basis to a maximum amount equal to 0.5 per cent of the gross value of production of tobacco for that financial year.

The Government has agreed to the industry's request, recognising the importance of research to the industry's efforts to become internationally competitive. Government decisions, announced in December 1994, on a tobacco industry restructuring package are also directed at that objective.

The Regulations provide for industry levies in respect of research to be attached to the proposed Tobacco R&D Corporation. Sections 3639 of the Act provide for the transfer of funds, otherwise attributable to the Tobacco R&D Council, to the proposed Corporation.

Separate Regulations repeal the Tobacco Research and Development Regulations.

The Tobacco Research and Development Corporation Regulations will commence on 1 July 1995, concurrent with the termination of the Tobacco R&D Council.