Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2004-2005-2006-2007
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
AGRICULTURE, FISHERIES AND FORESTRY
LEGISLATION AMENDMENT (2007 MEASURES No 1) BILL 2007
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture, Fisheries and Forestry,
the Hon Peter McGauran MP)
AGRICULTURE, FISHERIES AND FORESTRY LEGISLATION
AMENDMENT (2007 MEASURES No 1) BILL 2007
GENERAL OUTLINE
The Australian Meat and Live-stock Industry Act 1997 (the AMLI Act) provides the legislative
framework for the structural and funding arrangements of the red meat industry and its marketing
and research and development activities. The purpose of this bill is to give effect to the meat
processor sector's request to introduce statutory levies on the slaughter of cattle, sheep and goats
and for the levy funds to be directed to its existing services body.
Since the 1998 red meat industry restructure, the meat processor sector has funded its marketing
and research commitments through a voluntary contributions system. This system will cease to
operate on 1 July 2007. The Government supports the red meat industry's view that collective
funding for marketing and research and development is necessary for the sustained productivity of
the meat processor sector. Consequently, the Government has agreed to put in place a statutory
levy to enable the sector to continue its whole-of-industry commitment to undertake marketing and
research and development (R&D) programmes. All sectors of the red meat industry have
supported directing the funding to the existing services company, Australian Meat Processor
Corporation Ltd (AMPC) and the Government does not object to this approach.
The current AMLI Act constrains the disbursement of levies and charges, collected under
complementary legislation, to declared bodies. The AMLI Act also only allows for meat processor
industry funding to be directed to the industry marketing and industry research body (currently
Meat & Livestock Australia Ltd (MLA)) in the event a statutory levy is imposed. The amendment
bill will provide the flexibility to allow a body to be declared by the Minister as being eligible to
receive the meat processor levies and to direct funding to that body.
AMPC conducts marketing and R&D on behalf of the processing sector or directs these funds to
MLA to carry out agreed projects as required under the red meat industry's Memorandum of
Understanding. The amendment bill will not affect the existing arrangements for Commonwealth
matching funds because meat processor industry research activities will continue to be directed to
the body determined to be the industry research body, which is currently MLA.
The Primary Industries (Excise) Levies Act 1999 (the Excise Act) and its subordinate legislation
provide for the levy to be imposed and identifies the bodies pursuant to the AMLI Act that are
destined to receive the revenue. This revenue is to be used by these bodies for marketing and R&D
purposes, with eligible research expenditure being matched by the Commonwealth under
conditions prescribed in the AMLI Act.
The current Excise Act's subordinate legislation sets the meat processor sector's operating levy
rates at zero to accommodate the operation of the voluntary contributions system. Amendment to
the relevant regulations will remove the zero rate and allow for a new rate, as determined by
industry and agreed to by the Government, to be imposed.
There is no legislation that allows disaggregated levy payer information to be passed to the red
meat industry. In anticipation of amendment to other legislation to allow the information to be
disseminated to the red meat industry, the Government believes this amendment bill should
provide the legislative opportunity for appropriate controls over who has access to that information
and for what purpose. The provisions closely mirror those that apply to the dairy industry.
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FINANCIAL IMPACT STATEMENT
The bill will require no additional Commonwealth expenditure. The process where the
Commonwealth may have to introduce a compulsory levy to fund meat processor or livestock
exporter initiatives was considered when the 1998 red meat industry restructure was implemented
and legislation was prepared for such an event. The levy amount was set at zero and in lieu
processors and livestock exporters paid a voluntary contribution to their service companies to fund
their sector's marketing activities and research projects and to offset operating costs. This
arrangement gave control over levy expenditure to the meat processor and livestock exporter
sectors.
This arrangement also included for contributions, whether from voluntary or statutory sources, to
be matched by the Commonwealth for agreed research projects that were managed by MLA. The
levels of levy funds directed to MLA by the meat processor research body for research activities
will be similar to those made under the voluntary contribution arrangements and will be well
within the matching fund limit of 0.5% of the annual Gross Value of Production for the red meat
industry. The 0.5% limit, as set under section 66(3) of the AMLI Act, will not change.
A regulatory impact statement is not required. A Cost Recovery Impact Statement has been
prepared and existing industry and Commonwealth structures will be used to collect and disburse
the funds. Associated administrative costs to the Commonwealth will be met from the levies on a
fee-for-service basis.
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AGRICULTURE, FISHERIES AND FORESTRY AMENDMENT BILL (No. 1) 2007
NOTES ON CLAUSES
Clause 1 - Short Title
1. Clause 1 is a formal provision specifying that the Act may be cited as the Agriculture,
Fisheries and Forestry (2007 Measures No 1) Act 2007.
Clause 2 - Commencement
2. Clause 2 sets out the commencement date for the Act.
Clause 3 - Schedule
3. Clause 3 provides that the amendment of each Act specified in the Schedule to the bill and
any other item in the Schedule will have effect according to its terms.
SCHEDULE 1 - AMENDMENTS
Australian Meat and Live-stock Industry Act 1997
Item 1
4. This item inserts a definition for a "meat processor marketing body" in section 58 of the
Australian Meat and Live-stock Industry Act 1997.
Item 2
5. This item inserts a definition for a "meat processor research body" in section 58 of the
Australian Meat and Live-stock Industry Act 1997.
Item 3
6. This item deletes the redundant term "in writing" in section 60 and substitutes "by
legislative instrument". This item also amends the heading of section 60 to make it more
streamlined.
Item 4
7. This item inserts additional subsections to section 60, which provides the Minister with the
power to declare a body to be the meat processor marketing body and a body to be the meat
processor research body to distinguish these bodies from other marketing and research
bodies.
Item 5
8. This item amends the introductory sentence at subsection 60(3B) to refer to more than two
combinations of marketing and research bodies so that meat processor body, as the third
body, can be included.
Item 6
9. This item provides the Minister with the power at subsection 60(3B) to declare the
same body to be both the meat processor marketing body and the meat processor
research body.
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Item 7
10. This item, subsection 60(3B), ensures the Minister cannot declare bodies to represent
sectors in the red meat industry other than their own.
Item 8
11. This item, subsection 60(3B), ensures the Minister cannot declare two or more marketing or
two or more research bodies to represent an industry sector at the same time.
Item 9
12. This item removes the redundant term "memorandum and articles of association" in section
60 and substitutes "constitution" to reflect the term used in the Corporations Act 2001.
Item 10
13. This item repeals subsection 60(6), a provision on disallowable instruments, which has
been superseded by the Legislative Instruments Act 2003. The new subsection 60(6) extends
section 60 to include the meat processor body when describing the conditions that must
satisfy the Minister before he may declare a body to be a marketing body or a research body.
Item 11
14. This item deletes the redundant term "in writing" in section 61(1) and substitutes "by
legislative instrument".
Item 12
15. This item removes the redundant term "memorandum and articles of association" in section
61(2)(b) and substitutes "constitution" to reflect the term used in the Corporations Act 2001.
Item 13
16. This item repeals subsection 61(3), a provision on disallowable instruments, which has
been superseded by the Legislative Instruments Act 2003.
Item 14
17. This item alters the heading of section 62 to more accurately reflect the contents due to the
substitution of the term "constitution" for "memoranda and articles of association". It also
inserts a reference to the meat processor marketing and meat processor research body as a
body that must inform the Minister of changes to its constitution.
Item 15
18. This item removes the redundant term "memorandum and articles of association" in section
62 and substitutes "constitution" to reflect the term used in the Corporations Act 2001.
Items 16 and 17
19. These items remove the paragraphs in sections 63 and 64 that require slaughter levies to be
paid to the industry marketing body and the industry research body. The removed paragraphs
have been placed in another area of section 64 (see Item 18) to allow for slaughter levy
payments to be paid to the meat processor marketing body and meat processor research body.
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Item 18
20. This item is an extension to Items 16 and 17. It inserts a new section 64C, which identifies
the payments to be made to the meat processor marketing body under Schedule 1 and
Schedule 17 of the Primary Industries (Excise) Levies Act 1999. This item also inserts a new
section 64D, which identifies the payments to be made to the meat processor research body
under Schedule 1 and Schedule 17 of the Primary Industries (Excise) Levies Act 1999.
Standing appropriations for the meat processor levies already exist in the Australian Meat
and Live-stock Industry Act 1997 (sections 63 and 64). The amendment will remove these
levies from the list of payments to the industry marketing and research body and use a
standing appropriation to redirect them to the meat processor marketing body and meat
processor research body. There is no financial impact to the Commonwealth from this
change.
Items 19, 20 and 21
21. These items update subsection 65(1) by removing references of slaughter levies to the
industry marketing body and industry research body and inserting references of slaughter
levies to the meat processor marketing body and the meat processor research body.
Item 22
22. This item repeals subsection 67(3)(a), a provision on disallowable instruments, which has
been superseded by the Legislative Instruments Act 2003.
Item 23
23. This item inserts new subsections to section 67 that limits the meat processor marketing
body and the meat processor research body in spending levy funds to industry marketing and
research and development activities and enables the Commonwealth to recover costs
associated with the levy collection and administration.
Item 24
24. This item repeals subsection 67(4), a provision on disallowable instruments, which has
been superseded by the Legislative Instruments Act 2003.
Item 25
25. This item amends section 68 to include the meat processor marketing body and the meat
processor research body as a body that is cross-referenced to the appropriate sections that
refer to reimbursements to the Commonwealth.
Item 26
26. This item inserts a new division (Division 5 - Use of Information) pursuant to section
27 of the Primary Industries Levies and Charges Collection Act 1991 to provide for the
control of the dissemination of disaggregated levy payer information to declared red
meat industry bodies. The provisions ensure the use of the information is limited and
mirror the restrictions that apply to the dairy industry.
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Item 27
27. This item adds the meat processor marketing body and the meat processor research
body to those bodies identified in subsection 69(8) as prescribed bodies under Part 3 of
the Australian Meat and Live-stock Industry Act 1997. This amendment falls within the
scope of the offence provision at subsection 69(2) but does not alter the offence
provision itself.
Primary Industries (Excise) Levies Act 1999
Items 28 and 29
28. These items repeal the definition of "industry marketing body" and "industry research
body" in clause 1 of Schedule 1. The definition of "meat processor marketing body" and
"meat processor research body is covered under the Australian Meat and Live-stock Industry
Act 1997.
Item 30
29. This item deletes "industry marketing body" and substitutes "body declared under section
60 of that Act to be the meat processor marketing body" in note 1 of subclause 3(1) of
Schedule 1. The effect is to allow for the levy funding to be directed to the meat processor
marketing body and not to the industry marketing body.
Item 31
30. This item deletes "industry research body" and substitutes "body declared under section 60
of that Act to be the meat processor research body" in note 2 of subclause 3(1) of Schedule 1.
The effect is to allow for the levy funding to be directed to the meat processor research body
and not to the industry research body.
Item 32
31. This item repeals clauses 6 and 7 in Schedule 1, which relate to transitional provisions that
refer to an Act that has been superseded by the Primary Industries (Excise) Levies Act 1999.
Items 33 and 34
32. These items repeal the definition of "industry marketing body" and "industry research
body" in clause 1 of Schedule 17. The definition of "meat processor marketing body" and
"meat processor research body" is covered under the Australian Meat and Live-stock Industry
Act.
Item 35
33. This item deletes "industry marketing body" and substitutes "body declared under section
60 of that Act to be the meat processor marketing body" in note 1 of subclause 3(1) of
Schedule 17. The effect is to allow for the levy funding to be directed to the meat processor
marketing body and not to the industry marketing body.
Item 36
34. This item deletes "industry research body" and substitutes "body declared under section 60
of that Act to be the meat processor research body" in note 2 of subclause 3(1) of Schedule
17. The effect is to allow for the levy funding to be directed to the meat processor research
body and not to the industry research body.
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Item 37
35. This item deletes "industry marketing body" and substitutes "body declared under section
60 of that Act to be the meat processor marketing body" in note 1 of subclause 3(2) of
Schedule 17. The effect is to allow for the levy funding to be directed to the meat processor
marketing body and not to the industry marketing body.
Item 38
36. This item deletes "industry research body" and substitutes "body declared under section 60
of that Act to be the meat processor research body" in note 2 of subclause 3(2) of Schedule
17. The effect is to allow for the levy funding to be directed to the meat processor research
body and not to the industry research body.
Item 39
37. This item deletes "industry marketing body" and substitutes "body declared under section
60 of that Act to be the meat processor marketing body" in note 1 of subclause 3(3) of
Schedule 17. The effect is to allow for the levy funding to be directed to the meat processor
marketing body and not to the industry marketing body.
Item 40
38. This item deletes "industry research body" and substitutes "body declared under section 60
of that Act to be the meat processor research body" in note 2 of subclause 3(3) of Schedule
17. The effect is to allow for the levy funding to be directed to the meat processor research
body and not to the industry research body.
Item 41
39. This item repeals clauses 6 and 7 in Schedule 17, which related to transitional provisions
that refer to an Act that has been superseded by the Primary Industries (Excise) Levies Act
1999.
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