PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (CHERRY) REGULATIONS 1993 NO. 281

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (CHERRY) REGULATIONS 1993 NO. 281

STATUTORY RULES 1993 No. 281

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

HORTICULTURAL LEVY ACT 1987

HORTICULTURAL EXPORT CHARGE ACT 1987

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION ACT 1991

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (CHERRY) REGULATIONS

Section 6 of the Horticultural Levy Act 1987 (the Levy Act) imposes levy on leviable horticultural products which are produced in Australia and sold or used in the production of other goods. Section 6 of the Horticultural Export Charge Act 1987 (the Charge Act) imposes export charge on chargeable horticultural products which are produced in Australia and exported. Levies and export charges imposed under the arrangements fund industry marketing and research activity through the Australian Horticultural Corporation (the AHC) and the Horticultural Research and Development Corporation (the ERDC).

Under subsection 14(1) of each of the Levy and Charge Acts, the Governor-General may make regulations to give effect to the Acts. The Governor-General may also make regulations under subsection 30(1) of the Primary Industries Levies and Charges Collection Act 1991 to put in place a mechanism for the collection of the levy and charge. The Regulations impose a statutory levy and export charge on the cherry industry, at the industry's request, under section 6 of each of the Levy and the Charge Acts. Funds raised under the arrangements will be directed to the HRDC to be matched by the Government and used to support jointly funded research and development (R&D). Section 9 of each of the Levy and Charge Acts provide that regulations may fix a rate of levy and charge in respect of the HRDC. The Regulations set a rate of one cent per kilogram on cherries sold on the fresh and export markets for R&D. Subsection 13(2) of the Levy Act and section 13 of the Charge Act provide that regulations may exempt from levy and export charge subclasses of leviable or chargeable products. The Regulations target the fresh and export markets by exempting from levy and export charge cherries for processing. This provision recognises that sales of cherries for processing provide significantly lower returns to the grower.

Subsection 14(4) of each of the Levy and Charge Acts require the Governor-General to take into account recommendations to the Minister from the HRDC before making regulations for the purposes of sections 9 of the Levy and Charge Acts. Subsection 14(7) of each of the Levy and Charge Acts require the HRDC to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of, and exemptions from, levy and charge to the Minister. The HRDC recommended the rate and exemptions to the Minister after consultation with the Australian Cherry Growers' Federation. The Regulations prescribe the Australian Cherry Growers' Federation as the eligible industry body with which the HRDC must consult in relation to cherries.

The proposed Regulations give effect to the recommendations of the HRDC, which are consistent with the industry request. Copies of the recommendations and a statement from the industry in support of the levy and export charge are attached.

The Regulations also provide for the manner of payment of charge, the provision of returns by producers and the keeping of records. The Regulations will commence on 15 November 1993, for the 1993-94 marketing season.

Details of the Regulations introducing the levy and export charge on cherries are at Attachment B.