Bills Digest no. 127 2007–08
Wheat Export Marketing (Repeal and Consequential Amendments)
Bill 2008
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
Passage history
Purpose
Background
Financial implications
Main provisions
Contact officer & copyright details
Passage history
Wheat Export Marketing (Repeal
and Consequential Amendments) Bill 2008
Date introduced: 29
May 2008
House: House
of Representatives
Portfolio: Agriculture,
Fisheries and Forestry
Commencement: Schedules
1 and 2, and items 2-6 and 9-11 of Schedule 3 at the same time as section
4 of the Wheat Export Marketing Act 2008 commences; items 1, 7
and 8 of Schedule 3 at the same time as section 1 of the Wheat Export
Marketing Act 2008 commences; all other provisions on the date on
which the Royal Assent is given.
Links: The relevant
links to the Bill, Explanatory Memorandum and second reading speech
can be accessed via BillsNet, which is at http://www.aph.gov.au/bills/. When Bills
have been passed they can be found at ComLaw, which is at http://www.comlaw.gov.au/.
The purpose of the Bill is to deal with consequential
matters arising from the enactment of the Wheat Export Marketing Bill
2008 and repeal the Wheat Marketing Act 1989.
The agricultural policy landscape at both State and Federal level was
once well populated by statutory trading monopolies and other legislated
arrangements for the marketing of farm products. However, reforms in
both agricultural policy and the broader economic agenda over the last
couple of decades have transformed agricultural marketing in Australia
to the point where the monopoly over wheat exports is the only remaining
such arrangement effective at the national level.
Currently the Australian domestic and export wheat markets operate very
differently. The Australian domestic wheat market was completely
deregulated in 1989, and has operated free of specific government regulation
since that time. Growers are able to directly sell their wheat to domestic
traders and consumers, or to deliver their wheat into ‘pools’.
The Australian export wheat market is directed through a single
exporter of bulk wheat – Australian Wheat Board International Limited
(AWB International). This is known as the ‘single desk’. The statutory
regulator, the Export Wheat Commission, manages the export of non-bulk
wheat (that is, bagged or container wheat).
This Bills Digest should be read in conjunction with the Bills Digest
for the Wheat Export Marketing Bill 2008.
There are no financial implications.[1]
Item 1 of Schedule 1
repeals the whole of the Wheat Marketing Act 1989.
Items 1 to 5 of Schedule 2 amend the Criminal Code Act 1995
to include a reference to an application for accreditation under the wheat
export accreditation scheme. The effect of the amendment is that section
136.1 will provide that a person is guilty of an offence if they make
a statement (either orally or in writing) in relation to an application
for accreditation under the wheat export accreditation scheme, knowing
that the statement is false or misleading. The maximum penalty for such
an offence is 12 months imprisonment.
Items 6 to 8 of Schedule 2 amend the Customs (Prohibited Exports)
Regulations 1958 (the Customs (Prohibited Exports) Regulations).
Item 6 repeals existing subregulation 5(4) which permits the export
of wheat by AWB (International) under the Wheat Marketing Act 1989.
Item 7 inserts proposed regulation 9AAA which provides
that exportation of bulk wheat from Australia is prohibited unless the
wheat is exported by an accredited wheat exporter. Proposed subregulation
9AAA(3) provides an exception for AWB (International) which will be
permitted to export wheat up to and including 30 September 2008.
In line with the terms of clause 7 of the Wheat Export Marketing Bill,
the proposed amendments to the Customs (Prohibited Exports) Regulations
reflect that wheat which is exported in a bag or container that is
capable of holding not more than 50 tonnes of wheat is not affected by
the legislative scheme.
Item 8 repeals the reference to wheat (other than wheat in bags
or containers) from existing Schedule 3 of the Customs (Prohibited Exports)
Regulations. Schedule 3 lists those goods which cannot be exported without
the approval of the Minister.
Items 9 and 10 of Schedule 2 amend the Financial Management
and Accountability Regulations 1997 (the Financial Management and
Accountability Regulations).
Part 1 of Schedule 1 of the Financial Management and Accountability Regulations
contains a table listing prescribed agencies that do not handle money
other than public money. Item 9 repeals existing table item 122C
which contains a reference to the Export Wheat Commission. Item 10
inserts proposed table item 145A which, instead, contains a reference
to Wheat Exports Australia.
Item 11 of Schedule 2 amends the Freedom of Information Act
1982 (FOI Act) to omit the reference to Wheat Marketing Act 1989
from Part III of Schedule 2 of the FOI Act. Part III lists the legislation
relating to agencies exempt in respect of documents in relation to their
commercial activities. No replacement reference to the Wheat Export
Marketing Act 2008 is proposed in this Bill. This means that Wheat
Exports Australia will be subject to the provisions of the FOI Act.
Items 12 to 14 of Schedule 2 amend the Primary Industries and
Energy Research and Development Act 1989 by inserting the word ‘repealed’
before each existing reference to the Wheat Marketing Act 1989.
Item 15 of Schedule 2 amends the Primary Industries Levies
and Charges Collection Act 1991 by inserting the word ‘repealed’ before
the existing reference to the Wheat Marketing Act 1989.
Schedule 3 of the Bill contains transitional provisions.
Item 1 of Schedule 3 contains relevant definitions including:
- ‘EWC’ means Export Wheat Commission
- ‘transition time’ means the commencement of section 4 of the
Wheat Export Marketing Act 2008
- ‘WEA’ means Wheat Export Australia.
Item 2 of Schedule 3 provides that for the purposes of any Act
appropriating money for expenditure out of the Consolidated Revenue Fund,
after the transition time, all references to EWC are to be read as WEA.
This is in accordance with clause 35 of the Wheat Export Marketing Bill
2008.
Item 3 of Schedule 3 provides that a person who is a member of
the EWC at the transition time will cease to be a member of EWC. There
is no provision of this Bill or the Wheat Export Marketing Bill 2008 which
would prevent a member of EWC of becoming a member of WEA.
Under item 4 of Schedule 3 the Export Wheat Commission Special
Account is abolished and the balance transferred to the Wheat Exports
Australia Special Account which is set up in accordance with clause 58
of the Wheat Export Marketing Bill 2008.
Item 5 of Schedule 3 requires EWC to provide a report to the Minister
about its operations in the nine month period from 1 October 2007. The
Minister is to table the report in each House of the Parliament within
15 sitting days of the day on which the Minister receives the report.
Item 6 of Schedule 3 preserves the confidentiality of information
provided to EWC despite the repeal of the Wheat Marketing Act 1989.
According to the Explanatory Memorandum, the information referred to was
provided by AWB (International) to EWC on the basis that it was ‘commercial
in confidence’ and any release could reasonably be expected to cause financial
loss or detriment to AWB (International).[2]
Item 7 of Schedule 3 empowers EWC to formulate the terms of the
wheat export accreditation scheme before the transition time. Any instrument
made by EWC has effect, after the transition time, as if it were made
by WEA. If the wheat export accreditation scheme is formulated before
the transition time, then item 8 of Schedule 3 further empowers
EWC to approve forms under the wheat export accreditation scheme. Where
that occurs, any form approved by EWC before the transition time is taken
to have been approved by WEA.
Item 9 of Schedule 3 allows AWB (International) to export bulk
wheat up to 1 October 2008 without being an accredited exporter. According
to the Explanatory Memorandum, this is to ensure that there are no delays
in finalising the 2007-08 National Pool, or executing export consents,
while the companies are having their accreditation applications assessed
by WEA.[3]
Item 10 of Schedule 3 imposes strict reporting requirements on
WEA. In particular it must report to the Minister about AWB (International)’s
performance within six months of the final distribution of payments to
participants in the 2007-08 National Pool.
Item 11 of Schedule 3 provides that where EWC has commenced an
investigation prior to I July 2008, WEA must complete the investigation
and relevant report.
Paula Pyburne
10 June 2008
Bills Digest Service
Parliamentary Library
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