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1998
THE
PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
AUSTRALIAN WOOL RESEARCH
AND PROMOTION ORGANISATION AMENDMENT BILL
1998
EXPLANATORY
MEMORANDUM
(Circulated
by the authority of the Minister for Agriculture, Fisheries and Forestry, the
Hon Mark Vaile MP)
ISBN: 0642 377162
AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION AMENDMENT BILL
1998
GENERAL OUTLINE
1. The amendments to
the Australian Wool Research and Promotion Organisation Act 1993 will
allow levy payers more involvement in setting strategic policy directions of the
Australian Wool Research and Promotion Organisation, and a greater opportunity
to express their views on the future strategies of the Organisation. The
changes will not cede control of the Organisation to political activity, as the
Board will remain an independent and professional body, with appropriate skills,
but with better avenues of communication with the industry it serves and, hence,
greater accountability. These amendments demonstrate a
further step towards curtailing unnecessary government involvement in the
wool industry, and the desire of the industry to take on the leading role in
setting its future directions.
2. This Bill amends the Australian
Wool Research and Promotion Organisation Act 1993 to allow for an increase
in the Organisation's Board from 9 to 11 members, specifically to allow the
appointment of 4 wool grower members. This addition will ensure greater access
by the Board to the valuable expertise and insight wool growers have on the
workings of the wool industry and beyond. It will also assist in communication
back to wool growers of developments in technology and the market promotion
activities of the Organisation.
3. The prior knowledge and experience
required of the Chairman of the Australian Wool Research and Promotion
Organisation is clarified to assist the Minister in the selection of the Chair.
The Chairman is to have a more clearly defined role in the selection of new
Board members, having unique knowledge of the Organisation’s needs.
4. Additionally, the role of wool growers in the selection of Board
members is to be increased, by adding an additional nomination from the peak
grower bodies to the selection committee.
5. The current legislation
for the Annual General Meeting greatly restricts the extent to which growers can
participate in the meeting. These amendments are designed to allow grower
initiated motions to be debated at the Annual General Meeting, and ease the
restrictions on eligibility to register for the meeting.
6. Many growers
feel that the current format for the ballot on the level of wool-tax does not
allow growers to indicate possible preference to alternative recommendations for
the levy, and places too many restrictions on eligibility. These amendments are
designed to expand the flexibility and options available to the Organisation
when conducting a wool-tax ballot.
7. The enhanced consultation with
the peak councils during development of the Corporate Plan allows the
Organisation to draw more fully upon industry expertise, and allows wool growers
more say in the strategies and future direction of the Organisation. Proper
corporate governance will be maintained by ensuring this consultation is at the
strategic, rather than operational, level.
8. The amendments to the Act
are designed to enhance the ability of the Organisation to communicate with wool
growers by empowering the Organisation to set up a voluntary register of wool
growers.
9. The amendments also provide for clarification of some of
the sections in the Act, including aligning the calculation of wool gross value
of production, which is used in calculating the Commonwealth contribution to
research and development, with the Primary Industries and Energy Research and
Development Act 1989.
10. In line with the increased
commercialisation of the services offered by the Australian Wool Research and
Promotion Organisation and its subsidiaries, these amendments ensure the
Organisation is able to charge reasonable fees for its technical services and
market information. The Organisation will also be able to create licensing
arrangements that increase the opportunities for promotion, thereby reducing
dependence on the wool grower levy for funds.
FINANCIAL IMPACT
STATEMENT
11. The amendments to the Australian Wool Research
and Promotion Organisation Act 1993 will not impose any additional costs on
the Commonwealth.
NOTES ON CLAUSES
Clause 1 -
Short Title
12. Provides for the Act to be called the Australian
Wool Research and Promotion Organisation Amendment Act
1998.
Clause 2 (1)- Commencement
13. Provides that the
amendments to the Australian Wool Research and Promotion Organisation Act
1993 will come into effect on Royal Assent, unless otherwise determined in
Clause 2 (2) or 2 (3).
Clause 2 (2) -
Commencement
14. Provides that the amendments to the Australian
Wool Research and Promotion Organisation Act 1993 will come into effect on a
specified day if required.
Clause 2 (3) -
Commencement
15. Provides that amendments to the Australian Wool
Research and Promotion Organisation Act 1993 which are specified to commence
on a certain date as in 2 (2), which do not commence within six months must
commence on the day immediately after the six month period.
Clause 3
- Schedule(s)
16. Provides for the implementation of amendments to
the Australian Wool Research and Promotion Organisation Act 1993 as set
out in Schedule 1 of the Act.
SCHEDULE 1 - AMENDMENT OF THE
AUSTRALIAN WOOL RESEARCH AND PROMOTION ORGANISATION ACT
1993
Item 1 Subsection 4(1)
17. This item provides
the definition of the Australian Interior Textile and Carpet Wool
Council.
Item 2 Subsection 4(1) (paragraph (b) of the definition of
generic promotion)
18. This item makes clear that the
Australian Wool Research and Promotion Organisation may provide technical
services to textile processors, including but not limited to those currently
operating in the wool textile pipeline, for the purpose of increasing demand for
wool; and that the Organisation may provide market information relating to the
wool trade.
19. When taken with Item 5 of this Schedule and Section 58
of the Act, which allows the Organisation to charge fair and reasonable fees for
its services, this amendment makes clear that the Organisation is able to
develop alternative sources of revenue to the wool-tax levy.
Item 3
Subsection 4(1)
20. This item provides the definition of the Wool
Council of Australia.
Item 4 Subsection 4(1) (definition of a wool-tax
payer)
21. This item amends the definition of a wool-tax payer from
one who has paid wool-tax in the preceding financial year to one who has paid
wool-tax in at least one of the preceding two financial years. This is designed
to prevent the exclusion of those wool growers who, for financial or managerial
reasons, may have held wool for more than one financial year, from participation
in the Annual General Meeting. This will also apply to eligibility to
participate in any ballots conducted by the Australian Wool Research and
Promotion Organisation.
Item 5 After subsection
7(2)(a)
22. This item makes clear that the Organisation has the power
to collect fees for its market information and other services, including licence
fees for the Woolmark, and other brands and trademarks.
Item 6
Section 11 - Consultation in relation to Corporate Plans
23. This
item requires the Australian Wool Research and Promotion Organisation to consult
with the peak grower councils, the Wool Council of Australia and the Australian
Interior textile and Carpet Wool Council, during the development of the
Corporate Plan. The existing legislation only requires consultation with the
peak councils prior to submission of the Corporate Plan to the
Minister.
Item 7 After paragraph 23(2)(a)
24. This item
will allow wool grower initiated motions at the Annual General Meeting on any
relevant matter. The procedures for lodging a motion to be considered at the
Annual General Meeting will be specified in relevant Regulations.
Item 8 At the end of section 23
25. This item specifies
that the results of a motion that a matter be considered by the Organisation do
not bind the Board of the Organisation to any particular course of action.
However, it is intended that the relevant Regulations will require the
Organisation to provide evidence of their consideration of the matter, and if
action is not taken, the reasons for not doing so.
Item 9 Paragraph
28(1)(d)
26. This item increases the size of the Board from 9 to 11
members to provide for an increase in the number of Board members who are wool
growers.
Item 10 After subsection 28(1)
27. This
amendment requires the Chairman to have a broad experience relevant to the
position, in particular involvement in wool production.
Item 11
Subsection 28(2)
28. This item will allow the Act to specify
qualifications for certain members as defined in Subsection
28(2A).
Item 12 After subsection 28(2)
29. This item
increases the number of wool grower members to be included on the Board, but
recognises that for the Board to function effectively, these wool grower members
should also have experience in areas beyond the farm gate. The need for
knowledge on the Board of non apparel wool production is also recognised. The
breadth of the skill base on the Board is enhanced by this amendment.
Item 13 Subsection 37(2)
30. This item will modify the
Selection Committee to improve its performance, and allow increased involvement
of wool growers in the selection of prospective Board members. The Selection
Committee will be increased from 4 to 5 members.
31. The Chairman of the
Organisation is recognised as having the greatest awareness of the skills
required to maintain an effective Board, and thus is to be included in the
Selection Committee. Wool growers, through the peak councils, will now nominate
two Selection Committee members, rather than one as specified in the current
legislation.
Item 14 Paragraph 51(7)(a)
32. This item makes
clear that more than one recommendation can be put to wool growers in a wool-tax
ballot, and that the Organisation may put recommendations proposed by other
persons or organisations.
Item 15 Paragraphs 51(7)(g) and
(h)
33. This item allows the regulations to set methods and
procedures reflecting the greater flexibility provided under item 14.
Item 16 After subsection 51(7)
34. These amendments will
provide for further flexibility in the conduct of future wool-tax ballots by
making clear that separate recommendations can be made for research and
development and promotion, and separate recommendations can be made for apparel
and non-apparel wool, as provided for under the Wool-tax Acts 1964.
35. The amendment (7B) mandates the involvement of wool growers, through
the peak councils, in the development of recommendations to be included in
future wool-tax ballots.
Item 17 Subsection 51(11)
36. This
subsection is no longer required as consultation with the Wool Council of
Australia on the recommendations to be included in the wool-tax ballot will
already be included in subsection 51(7B).
Item 18 Subsection
55(2A)
37. This amendment is to make the calculation of the
Commonwealth matching payments for research and development consistent with that
in the Primary Industries and Energy Research and Development Act 1989.
Item 19 Subsection 55(4)
38. This amendment is to make the
calculation of the wool gross value of production consistent with that in the
Primary Industries and Energy Research and Development Act 1989.
Item 20 Saving provision
39. This provision makes clear
that the wool gross value of production may be calculated using a three year
rolling average, which is consistent with the Primary Industries and Energy
Research and Development Act 1989. Sub item (2) is provided to make clear
that any matching grant based on an averaging system for a past financial year
would be retained by the fund.
Item 21 After section 69 - 69(A) The
voluntary register of wool-tax payers
40. This section provides for
the Organisation to maintain a voluntary register of wool-tax payers to allow
for improved dissemination of information, and to allow for better participation
of wool growers in meetings, ballots and other activities undertaken by the
Organisation.