Bills Digest No. 83 1997-98
Buffalo Export Charge 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
Buffalo Export Charge 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.
To impose a charge on buffaloes exported from Australia. The charge
will be payable by the producer of the buffaloes.
Under existing law a charge is imposed by the Live-stock Export Charge
Act 1977 on lambs, sheep, goats and buffalo exported from Australia.
The charge is payable by the producer. The Primary Industries Levies
and Charges Collection Act 1991 provides for the collection of the
charge.
Proceeds raised by the charge are apportioned between the Meat Industry
Council (MIC), the Australian Meat and Live-stock Corporation (AMLC),
the Meat Research Corporation (MRC) and the Australian Animal Health Council
Limited (AAHC).
The Live-stock Export Charge Act 1977 is being repealed by item
1 of Schedule 4 of the proposed Australian Meat and Live-stock
Industry (Repeals and Consequential Provisions) Bill 1997.
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.(1)
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.(2)
Under the proposed arrangements, the Government intends that decisions
on levels of levies and charges be the responsibility of the relevant
peak industry council.
In respect to the buffalo industry it may be noted that the industry
will not be contributing through the charge to the proposed marketing
and research bodies, but rather to the Rural Industries Research and Development
Corporation (RIRDC) and the National Cattle Disease Eradication Trust
Account (NCDE), as per existing arrangements. The rationale given by the
Minister in the Second Reading Speech to the Australian Meat and Live-stock
Industry Bill 1997 for the proposed arrangements with respect to the buffalo
industry is:
The particular requirements of the buffalo industry will be met by
new buffalo export charge and slaughter levy acts. Separate levy acts
are needed because the buffalo industry will retain slaughter levy and
export charge arrangements. Contributions from the buffalo industry
will continue to go to the RIRDC, the NRS [National Residue Survey]
and the NCDE, as at present.(3)
The reader is also referred to the Digest for the Australian Meat and
Live-stock Industry Bill 1997.
A charge will be imposed on buffaloes exported from Australia by clause
4.
Clause 5 provides that the regulations may provide that no amount
of levy is payable by producers of buffaloes.
Clause 6 provides that the rate of charge on the export of each
head of buffalo will be:
- $4.60, or a prescribed amount up to $18.00, for payment to the RIRDC;
and
- 73 cents, or a prescribed amount up to $4.00, for payment to the NCDE.
The charge will be payable by the producer of the buffaloes (clause
7).
- Second Reading Speech, Australian Meat and Live-stock Industry Bill
1997: 10
- Ibid: 11
- Ibid: 15
Ian Ireland
4 November 1997
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Last updated: 12 November 1997
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