Bills Digest No. 81 1997-98
Beef Production Levy Amendment Bill 1997
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have any
official legal status. Other sources should be consulted to determine the
subsequent official status of the Bill.
CONTENTS
Beef Production Levy Amendment Bill 1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: On the same day as Part 3 of the proposed Australian
Meat and Live- stock Industry Act 1997, that is, on Proclamation
or nine months and one day after Royal Assent, whichever is first.
This Bill forms part of a package of 17 Bills restructuring the regulatory
framework of the Australian meat and live-stock industry. The major provisions
of this Bill:
- replace the Meat Industry Council (MIC), Australian Meat and Live-stock
Corporation (AMLC) and Meat Research Corporation (MRC) with the proposed
industry marketing and research bodies as levy recipient bodies; and
- allow the levy rate to be set at zero.
Under existing law a levy is imposed by the Beef Production Levy
Act 1990 (the Principal Act) on the slaughter at an abattoir of cattle
for human consumption. The levy is payable by the person who owns the
carcase immediately after its hot carcase weight is determined. The term
'cattle' is defined in the Principal Act as bovine animals other than
buffalo. The term 'hot carcase weight' is defined in the Principal Act
as the weight of a carcase weighed within two hours of slaughter.
The Primary Industries Levies and Charges Collection Act 1991
provides for the collection of the levy. Proceeds raised by the levy are
disbursed between the MIC, AMLC and the MRC.
This Bill forms part of a package of 17 Bills restructuring the regulatory
framework of the Australian meat and live-stock industry. Under existing
levy and charge arrangements, funds raised primarily go towards funding
the MIC, AMLC and MRC. Under the proposed arrangements the government
intends that industry contributions will be sourced on a statutory and
non-statutory basis. The collection of statutory levies is intended to
be based on the current system but with changes providing for a transaction
levy on sheep, lambs and goats, replacing the current livestock slaughter
levy, and a separate transaction levy on grain fed cattle.
The rationale given by the Minister in the Second Reading Speech to
the Australian Meat and Live-stock Industry Bill 1997 for the transaction
levy approach is:
- The transaction levy approach for sheep, lambs and goats was adopted
at the request of a clear majority of industry whose submission met
all of the requirements of the government's levy principles. A similar
request was also submitted by the grain fed cattle industry sector for
a separate cattle transaction levy. Again this submission met each of
the Government's levy principles.
- The existing levy and charge imposition Acts have been modified to
provide for clear sectoral ownership.i
In relation to non-statutory contributions, the government is setting
the processor and exporter levies at zero. It should be noted that the
Minister in the Second Reading Speech to the Bill issues a warning in
respect of such contributions, that is:
- Should the non-statutory contributions by processors and livestock
exporters fail to meet agreed funding levels for joint industry functions,
and as specifically agreed by these two sectors, the Government has
their prior agreement to maintain levies at a required level to ensure
there is adequate funding.ii
Under the proposed arrangements, the government intends that decisions
on levels of levies and charges be the responsibility of peak industry
council.
The reader is also referred to the Digest for the Australian Meat and
Live-stock Industry Bill 1997.
Items 1-5 of Schedule 1 of the Bill repeal the definitions of
the Australian Meat and Live-stock Corporation (AMLC), Meat Industry Council
(MIC), Meat Research Corporation (MRC) and insert new definitions of marketing
body and research body. The latter two bodies are replacing the MIC, AMLC
and MRC as levy recipient bodies. Clause 60 of the Australian Meat and
Live-stock Industry Bill 1997 provides the Minister with power to declare
a body to either the industry marketing body, industry research body,
or both a marketing and research body.
Section 5 of the Principal Act imposes a levy on the slaughter at an
abattoir of cattle for human consumption. A new section 5A is inserted
in the Principal Act by item 6 of Schedule 1 of the Bill which
provides that the regulations may provide that no amount of levy is payable
by cattle owners under the Principal Act.
Section 6 of the Principal Act sets out the rate of levy imposed on
the slaughter at an abattoir of cattle for human consumption. Item
7 of Schedule 1 of the Bill repeals paragraphs 6(1)(a)-(c) of the
Principal Act which assign a portion of the levy to the MIC, AMLC and
MRC and inserts new paragraphs 6(1)(a)-(b) which assigns a portion of
the levy to the proposed marketing body (a prescribed amount not exceeding
6 cents per kilogram), and proposed research body (a prescribed amount
not exceeding 1 cent per kilogram).
- Second Reading Speech, Australian Meat and Live-stock Industry Bill
1997: 10
- Ibid: 11
Ian Ireland
4 November 1997
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library, 1997.
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Last updated: 12 November 1997
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