Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
1998-1999-2000-2001
THE PARLIAMENT OF THE
COMMONWEALTH OF AUSTRALIA
HOUSE OF
REPRESENTATIVES
PRIMARY INDUSTRIES AND ENERGY
RESEARCH AND DEVELOPMENT AMENDMENT BILL
2001
EXPLANATORY
MEMORANDUM
(Circulated
by authority of the Minister for Forestry and Conservation, The Hon Wilson
Tuckey MP)
ISBN: 0642 465843
PRIMARY INDUSTRIES AND ENERGY RESEARCH AND
DEVELOPMENT AMENDMENT BILL 2001
OUTLINE
The purpose of
the Primary Industries and Energy Research and Development Amendment Bill 2001
is to increase the Commonwealth contribution to the Forest and Wood Products
Research and Development Corporation (FWPRDC) to match industry’s R&D
levy contribution, dollar for dollar up to 0.5% of gross value for production.
When the FWPRDC was established in 1994, the funding arrangement
specified by amendment to the Primary Industries and Energy Research and
Development Act 1989 (PIERD Act) was $1 from the Commonwealth for
every $2 from industry. This differed from all other R&D Corporations
under the PIERD Act to which a levy was attached. For such R&D
Corporations, the Government provides $1 for every $1 from industry.
Financial impact statement
The Bill provides for the
Commonwealth to match industry levy contributions to forest R&D dollar for
dollar. The actual level will vary according to the industry's volume of
production on which levy is paid and the rate of levy applied to that
production. Based on levy contributions over recent years, this will involve
additional Commonwealth expenditure of about $1.6 million per annum.
NOTES ON CLAUSES
This clause provides for the Act to be called the Primary Industries
and Energy Research and Development Amendment Act 2001.
This clause provides for the Act to commence on 1 July 2001. In
conjunction with items 3 and 6 of the Schedule, it provides that dollar for
dollar Commonwealth matching of industry contributions will commence on 1 July
2001.
Clause 3: Schedule(s)
This clause provides for the
items in the Schedule to have effect.
Item 1: Subsection 31(1)
This item deletes a reference to
subsection 31(4).
Item 2: Subsection 31(4)
This item
repeals subsection 31(4), with the result that the Government matching payments
to the FWPRDC will be at the same rate as that provided to other R&D
Corporations under Subsection 31(1), that is, dollar for dollar.
This item ensures that the repeal of subsection 31(4) does not have the
effect of extending dollar for dollar matching payments of levies and charges
collected and paid to the FWPRDC before 1 July 2001.
Item 4:
Subsection 32(1)
This item deletes a reference to subsection
32(4)
Item 5: Subsection 32(4)
This item repeals subsection
32(4), removing the ceiling for Government payments to the FWPRDC of 0.25% of
the gross value of production. This results in the FWPRDC having the same
ceiling as other R&D Corporations under subsection 32(1), that is, 0.5% of
the gross value of production.
This item provides for the new ceiling provided by the repeal of
subsection 32(4) to apply from the financial year commencing 1 July 2001.