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
Dairy Produce Levy (No. 1) Amendment Bill
1997
Date Introduced: 5 March 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: As specified in the 'Main
Provisions' section of this Digest
To impose a levy on milk producers to fund the dairy industry's
contribution to the Australian Animal Health Council Ltd. The Bill
also doubles the maximum research levy rate which may be
prescribed.
The major amendments proposed by the Bill are aimed at directing
funds to the Australian Animal Health Council Ltd.
Australian Animal Health Council Ltd
Australian Animal Health Council Limited (AAHC Ltd) is an
unlisted public company limited by guarantee. AAHC Ltd was
established following agreement on 18 August 1995 by the
Agriculture and Resource Management Council of Australia and New
Zealand (ARMCANZ).
The objects of AAHC Ltd, as specified in its Memorandum of
Association, include to:
- assist the Australian animal health service system in
maintaining acceptable national animal health standards aimed at
meeting consumer needs and market requirements at home and
overseas;
- advise and advocate action to industry and government on:
(i) strategic national animal health priorities;
(ii) animal health system delivery arrangements and
resources;
(iii) nationally consistent animal health policy;
- establish and manage a national animal health information
system;
- develop, manage and evaluate national animal health
programs;
- have an involvement in residue related issues as they relate to
animal health and impact on commercial performances;
- have international status as the national animal health policy
and advisory body;
- undertake commissioned animal health service projects; and
- arrange for, or to assist in, research and development into
matters pertaining to animal health.
The Articles of Association of AAHC Ltd provide that there are
three different groups of members of the company, each with equal
status. These are the Commonwealth, the State and Territories and
industry organisations. Industry organisations include the
Australian Chicken Meat Federation, Australian Egg Industry
Association, Australian Dairy Farmers' Federation, Australian
Veterinary Association Limited, Cattle Council of Australia, Pork
Council of Australia Limited, Sheepmeat Council of Australia,
Australian Horse Council and Wool Council of Australia.
With respect to funding of AAHC Ltd activities, funding
comprises three broad groupings. Administration and Operation of
AAHC along with Key National Animal Health Programs will be covered
by core funding and other National Animal Health Programs will have
alternate funding arrangements to be determined on a case by case
basis. Administration and Operations will be funded to an amount of
$840,000 with a sharing of this amount on a one third each basis by
the Commonwealth, States, Territories and industry.
The Key National Animal Health Programs, which are intended to
address the national information system and national preparedness
with respect to animal diseases, will be financed to an amount of
$900,000 for 1995-96 on the same shared basis as for administration
and operations. The Key National Animal Health Programs are
intended to be the basis for implementing AAHC policy and strategy
and addressing relevant national issues. They are intended to each
have specific objectives, time frames, performance targets, funding
and fund sharing arrangements.
Exotic Animal Disease Preparedness Consultative Council
The functions of the Exotic Animal Diseases Preparedness
Consultative Council (EXANDIS) were subsumed into the Australian
Animal Health Council. All provisions of the Exotic Animal
Disease Control Act 1989, which established EXANDIS, ceased to
have effect on 31 December 1995. The statutory functions of EXANDIS
included to inquire into, assess, and report to the Minister
on:
- the adequacy of the strategies and procedures provided in any
approved veterinary emergency plan, particularly in relation to
planning, implementation, training, plant and equipment; and
- the social and economic effects of exotic animal disease
outbreaks, and principles concerning rehabilitation and
compensation.
EXANDIS was funded by the EXANDIS component of levies on laying
chickens, live-stock, chicken meat, pig meat, goat meat, milk and
wool. The Commonwealth matched industry contributions on a
dollar-for-dollar basis.
EXANDIS Recommendations To AAHC Ltd
In its final Annual Report EXANDIS urged government and industry
to maintain through AAHC Limited a high level of continued activity
aimed at protecting Australia against exotic animal diseases and
preparing for any outbreaks. EXANDIS considered that the greatest
exotic animal disease threats to Australia are foot and mouth
disease, Newcastle disease, bluetongue and classical swine
fever.
EXANDIS made a number of recommendations to AAHC Ltd,
including.
- AAHC Ltd should define the field and laboratory services needed
to detect an exotic animal disease and respond quickly and
effectively to an outbreak;
- AAHC Ltd should define the mix of public and private services,
the role of industry in managing disease outbreaks and how these
should be audited and reviewed to ensure they comply with domestic
and international standards;
- AAHC Ltd continue the national disease watch hotline to
facilitate reporting and investigation of any unusual animal
incidents and all States and Territories ensure resources are made
available to enable this service to continue;
- AAHC Ltd and Commonwealth and State governments recognise the
current deficiency of epidemiological data needed for an effective
disease surveillance system;
- AAHC Ltd include in future national animal health policy
development, the development of management and funding options to
enable formation of national animal health emergency task forces
which can be put in place and used very quickly for a range of
animal health and veterinary public health emergencies; and
- AAHC Ltd recommend that training of Aboriginal people and
Torres Strait Islanders in exotic animal disease awareness be
incorporated into other training programs being conducted by the
Department of Employment, Education and Training and the Department
of Health.
Research Levy
The Bill proposes to double the maximum research levy rate which
may be prescribed. The rationale given by the Minister in the
Second Reading Speech to the Bill for the doubling is that:
... the current operational research levy rate, which partially
funds the activities of dairy research and development corporation,
is very close to the legislated maximum rate. The present situation
provides very little scope for further increases and may
significantly curtail the ability of the Dairy Research and
Development Corporation to respond to the needs of the industry in
the near future.
According to the Government, the doubling of the levy rate has
the support of the Australian Dairy Industry Council. The author of
this Digest has been unable to find any evidence to refute this
assertion.
The term 'Federation' is defined by item 1 of
Schedule 1 of the Bill to mean the Australian Dairy Farmers'
Federation Ltd.
A levy to be known as the Australian Animal Health Council levy
is imposed on whole milk and whole milk products produced from 1
July 1997 by item 2 of Schedule 1 of the Bill.
Item 2 will only apply if the Bill receives Royal
Assent before 1 July 1997.
A levy to be known as the Australian Animal Health Council levy
is imposed on whole milk and whole milk products produced from 1
July 1998 by item 3 of Schedule 1 of the Bill.
Item 3 will only apply if the Bill receives Royal
Assent after 1 July 1997.
Items 5 and 7 of Schedule 1 of the Bill double
the maximum rate of levy which may be prescribed for dairy
research.
Items 6 and 8 of Schedule 1 of the Bill set the
maximum rate of Australian Animal Health Council levy which may be
prescribed. The rate of levy comprises two elements, the milk fat
rate and protein rate. The maximum rate which may be prescribed in
respect of the milk fat rate is 0.058 cents per kilogram of milk
fat, and 0.13850 cents per kilogram of protein in respect of the
protein rate.
The effect of item 9 of Schedule 1 of the Bill
is to make the producer of whole milk and whole milk products
liable to pay the Australian Animal Health Council levy.
A new subsection 14(2A) is inserted in the Dairy Produce
Levy (No. 1) Act 1986by item 11 of Schedule 1
which requires the Governor-General before setting rates for the
Australian Animal Health Council levy to consider any report
relating to the rates made to the Minister by the executive of the
Federation.
Ian Ireland
5 May 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other
sources should be consulted to determine whether the Bill has been
enacted and, if so, whether the subsequent Act reflects further
amendments.
IRS staff are available to discuss the paper's contents
with Senators and Members and their staff but not with members of
the public.
ISSN 1328-8091
Commonwealth of Australia 1997
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Published by the Department of the Parliamentary Library,
1997.
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Commonwealth of Australia
Last updated: 9 May 1997
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