PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (NASHI) REGULATIONS (AMENDMENT) 1993 NO. 315

PRIMARY INDUSTRIES LEVIES AND CHARGES COLLECTION (NASHI) REGULATIONS (AMENDMENT) 1993 NO. 315

STATUTORY RULES 1993 No. 315

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 (NASHI) REGULATIONS (AMENDMENT)

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 and the Horticultural Research and Development Corporation (the Corporations).

Sections 8 and 9 of the Levy and Charge Acts provide for rates of levy and charge to be fixed for each of the Corporations by regulation. Under subsections 14(1) 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 collection arrangements.

A levy and export charge under the arrangements has been in place on nashi fruit for a number of years, most recently under the Primary Industries Levies and Charges Collection (Nashi) Regulations. Production increases have led to reductions in nashi fruit prices, which have in turn meant that the levy is an increased proportional charge on growers. When supply of nashi fruit is heavy, the rate of levy/charge may be more than 5 per cent of the unit gross value of nashi fruit. Subsections 7(2) of the Levy and Charge Acts, require that the rate of levy and charge should not exceed 5 per cent of the average annual unit gross value.

In response to the increasing burden of the levy/charge, and the requirement of subsections 7(2) of the Levy and Charge Acts, an Annual General Meeting of the Australian Nashi Growers Association decided to reduce the rates of levy and export charge on fresh nashi, with effect from the commencement of the 1993 marketing season. The retrospective reduction in the rates of levy and charge will benefit the persons paying the levy or charge.

The proposed Regulations reduce the existing total rate of levy and export charge under sections 8 and 9 of the Levy and Export Charge Acts from 40 cents to 20 cents per single layer tray of fresh nashi fruit, and change the apportionment of the levy between the two Corporations. The Regulations give effect to the recommendations of the Corporations, 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 rate reduction are attached.

Subsections 14(3) and 14(4) of the Levy and Charge Acts require the Governor-General to take into account any recommendation to the Minister from the Corporations before making regulations for the purposes of fixing the rate of levy under sections 8 and 9 of the Levy and Charge Acts. Subsections 14(6) and 14(7) of the Levy and Charge Acts require the Corporations to consult with the body that is the eligible industry body for the relevant horticultural product before recommending rates of levy to the Minister. The Australian Nashi Growers Association is the eligible industry body for nashi fruit.

Regulation 1 backdates the new rate for the levy and export charge to 1 January 1993. The retrospective reduction in the rates will benefit the persons paying the levy or charge.

Regulation 2 provides that the regulations amend the Primary Industries Levies and Charges Collection (Nashi) Regulations.

Regulation 3 replaces the levy rate schedule with a new schedule which reduces the rate of levy on fresh nashi fruit for marketing and promotion, through the Australian Horticultural Corporation, from 36 cents to 17 cents per single layer tray, and for research and development, through the Horticultural Research and Development Corporation, from 4 to 3 cents per single layer tray. The rates of levy on nashi used for juicing and processing are not altered.

Regulation 4 replaces the nashi export charge rate schedule with a new schedule which makes the same reductions to the rate of export charge as have been made to the rates of levy in regulation 3.