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
Purpose
Background
Main Provisions
Amendments to the Agricultural and Veterinary
Chemicals (Administration) Act 1992
Amendments to the Australian Horticultural
Corporation Act 1987
Amendments to the Australian Wine and Brandy
Corporation Act 1980
Amendments to the Australian Wool Research and
Promotion Organisation Act 1993
Amendments to the Dairy Produce Act
1986
Amendments to the Farm Household Support Act
1992
Amendments to the Fisheries Administration Act
1991
Amendments to the Horticultural Research and
Development Corporation Act 1987
Amendments to the Pig Industry Act
1986
Amendments to the Primary Industries and Energy
Research and Development Act 1989
Amendments to the Wheat Marketing Act
1989
Contact Officer and Copyright Details
Date Introduced: 3 December 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: Royal Assent
The major amendment proposed by the Bill is to
convert Farm Household Support loans to grants. The Bill also makes
a number of amendments relating to the administration of statutory
marketing authorities and research and development corporations.
The major amendment removes the requirement for the Minister to
approve the terms and conditions of employment of the managing
director.
As there is no central theme to the amendments
proposed by the Bill, a brief background to each major amendment is
outlined in the 'Main Provisions' sections of this Digest.
Amendments to the Agricultural and
Veterinary Chemicals (Administration) Act 1992
Item 1 of Schedule 1 of the
Bill increases the number of directors which must be appointed to
the National Registration Authority for Agricultural and Veterinary
Chemicals from 7 to 8.
Item 2 of Schedule
1 of the Bill repeals paragraph 14(2)(e) of the
Agricultural and Veterinary Chemicals (Administration) Act
1992, which requires that one of the directors of the National
Registration Authority for Agricultural and Veterinary Chemicals
have experience in occupational health and safety as on officer or
employee of an organisation of employees, with a requirement
that:
-
- one director have experience in occupational health and safety;
and
-
- one director have experience in the development or
administration of Commonwealth policy, or operation or management,
as an officer or employee, of a statutory authority established
under Commonwealth law.
Note: The rationale given by the
Government in the Explanatory Memorandum for the proposed amendment
to section 14 of the Agricultural and Veterinary Chemicals
(Administration) Act 1992 is that it will provide a wider
scope from which applicants with relevant experience can be
considered for appointment as a director with experience in
occupation health and safety.
It should be recognised that experience in
occupational health and safety as an officer or employee of an
organisation of employees generally means experience in
occupational health and safety as an officer or employee of a
union.
Amendments to the Australian Horticultural
Corporation Act 1987
Item 3 of Schedule 1 of the Bill repeals section
10 of the Australian Horticultural Corporation Act 1987
which provides the Australian Horticultural Corporation (AHC) with
export trading powers.
Note: The rationale given by the
Government in the Explanatory Memorandum for the repeal of the
AHC's export trading powers is that it gives effect to the
recommendations of a 1993 Industry Commission review of the
horticultural industry, 1994 Horticultural Task Force review, and
exporter organisation views.
Item 4-6 of Schedule
1 of the Bill removes the requirement that the
Minister:
-
- approve the terms and conditions of appointment of the Managing
Director of the AHC;
-
- approve a grant of leave of absence of the Managing Director of
the AHC; and
-
- approve the terms and conditions of employment of a person
appointed to act as Managing Director of the AHC.
Note: Neither the Explanatory Memorandum
or Second Reading Speech indicate what positive outcome will
eventuate from the proposed amendments. However, it may logically
be assumed that the proposed amendments will result in less work
for the Minister and administrative savings for the AHC.
Item 7 of Schedule
1 of the Bill prevents the AHC from delegating its power
to determine the terms and conditions of appointment and grant a
leave of absence of the Managing Director of the AHC.
Item 8 of Schedule
1 of the Bill reduces the number of 'other members' on the
AHC Selection Committee from 7 to 3, 4 or 5.
Note: The function of the Corporation
Selection Committee is to nominate, at the request of the Minister,
persons to the Minister for appointment as nominated members of the
Corporation. The rationale given by the Government in the
Explanatory Memorandum to the Bill for the proposed amendment is
that '[I]n view of earlier amendments to the AHC Act to reduce the
size of the AHC Board from nine to seven and the need to minimise
costs, the industries participating in the AHC have requested the
number of "other members" on the AHC Selection Committee be
reduced. ... This would provide flexibility in the future in
relation to the numbers on the AHC Selection Committee.'
The effect of the amendment proposed by
item 10 of Schedule 1 is that a
General Manager of a Product Board will not be able to be able to
be employed by the AHC on terms and conditions more favourable than
those applying to the Managing Director of the AHC.
Note: The subsection being amended
currently provides that the AHC may not employ a General Manager of
a Product Board on terms and conditions more favourable than those
applying to the Managing Director of the AHC without Ministerial
approval.
Item 11 of Schedule
1 prevents a Product Board from delegating its power to
determine the terms and conditions of appointment and grant a leave
of absence of a Managing Director.
Amendments to the Australian Wine and
Brandy Corporation Act 1980
Item 12 of Schedule 1 of the Bill removes the
requirement that the Minister approve the terms and conditions of
appointment of the principal employee (eg. the Managing Director)
of the Australian Wine and Brandy Corporation (AWBC).
Sections 40D and 40F of the Australian Wine
and Brandy Corporation Act 1980 specify when the description
and presentation of wine is false or misleading. The effect of
items 13 and 14 of the Bill is to
allow the making of regulations relating to when the description
and presentation of wine is false or misleading.
Item 16 of Schedule
1 prevents the AWBC from delegating its power to determine
the terms and conditions of appointment of the principal
employee.
Amendments to the Australian Wool Research
and Promotion Organisation Act 1993
Item 17 of Schedule 1 of the Bill removes the
requirement that the Minister approve the terms and conditions of
appointment of the Managing Director of the Australian Wool
Research and Promotion Organisation (AWRPO).
Items 18 and 19 remove the
requirement that the Minister approve the terms and conditions of
appointment of the Managing Director of AWRPO and that persons not
be employed on terms and conditions more favourable than those
applying to the Managing Director.
Item 20 of Schedule 1 prevents
AWRPO from delegating its power to determine the terms and
conditions of appointment of the Managing Director.
Amendments to the Dairy Produce Act
1986
Item 21 of Schedule 1 will
allow persons aged sixty-five and over to be appointed as a member
or a government member of the Board of the Australian Dairy
Corporation (ADC).
Item 22 of Schedule 1 removes
the requirement that the Minister approve the terms and conditions
of appointment of the Managing Director of the ADC.
The repeal of subsection 50(4) of the Dairy
Produce Act 1986 proposed by item 24 of
Schedule 1, allows the ADC to determine the terms
and conditions of employment of ADC staff without the current
restriction that terms and conditions not be more favourable than
those applicable to the Managing Director without Ministerial
approval.
Amendments to the Farm Household Support
Act 1992
The Farm Household Support Scheme came into
operation in March 1993. It was intended to support those farm
families who were unable to access commercial finance by providing
income support for day-to-day living expenses. Since October 1993
demand for Farm Household Support (FHS) fell so that, by the end of
1995-96, the number of families being supported was less than
fifty. In 1995-96 a total of $959, 000 was spent on FHS. The FHS
was terminated in May 1997 by the Farm Household Support
Amendment Act 1997.
As part of the Agriculture - Advancing
Australia package of September 1997, the Government announced
that it would not be seeking repayment of loans incurred under the
FHS, that all outstanding loans would be converted to grants, and
those farmers who have repaid their debts will be reimbursed.
The Government states in the Explanatory
Memorandum to the Bill that:
There is approximately $5.1 million in
outstanding FHS debts. Annulling these debts will be a loss to
Budget. Two FHS recipients had repaid their FHS debts and these
people will be reimbursed.
Neither the Second Reading Speech to the Bill or
the Explanatory Memorandum provide a rationale for the annulment of
debts to the Commonwealth under the former FHS.
A new section 26 is substituted in the Farm
Household Support Act 1992 by item 27 of
Schedule 1 which provides that FHS is to be paid
by way of grant. The previous section 26 provided that payment of
FHS was to be made by way of loan.
The principal effect of new section 54, which is
inserted in the Farm Household Support Act 1992 of
item 32 of Schedule
1 of the Bill, is to provide for the conversion of FHS
loans to grants.
Amendments to the Fisheries Administration
Act 1991
Item 33 of Schedule 1 of the
Bill removes the requirement that the Minister approve the terms
and conditions of appointment of the Managing Director of
Australian Fisheries Management Authority (AFMA)
The effect of item 34 of
Schedule 1 of the Bill is to allow, without the
Ministers approval, the Chairperson of the AFMA to grant leave of
absence to the Managing Director on such terms and conditions as
determined by the AFMA.
Item 35 of Schedule
1 prevents the AFMA from delegating its power to determine
the terms and conditions of appointment of the Managing
Director.
Amendments to the Horticultural Research
and Development Corporation Act 1987
Item 36 of Schedule 1 of the
Bill removes the requirement that the Minister approve the terms
and conditions of appointment of the Executive Director of the
Horticultural Research and Development Corporation (HRDC).
Item 37 of Schedule
1 of the Bill allows, without ministerial approval, the
Chairperson of the HRDC to grant leave of absence to the Executive
Director of the HRDC on such terms and conditions as determined by
the HRDC.
Item 38 of Schedule
1 of the Bill removes the requirement that the Minister
approve the terms of appointment of persons appointed to act as
Executive Director of the HRDC.
Item 39 of Schedule
1 of the Bill prevents the HRDC from delegating its power
to determine the terms and conditions of appointment of the
Executive Director.
Amendments to the Pig Industry Act
1986
Item 42 of Schedule 1 of the
Bill removes the requirement that the Minister approve the terms
and conditions of appointment of the principal employee of the
Australian Pork Corporation (APC).
The effect of item 43 of
Schedule 1 of the Bill is to prevent the APC from
delegating its power to determine the terms and conditions of
appointment of the principal employee.
Amendments to the Primary Industries and
Energy Research and Development Act 1989
A new subsection 30A(2A) is inserted in the
Primary Industries and Energy Research and Development Act
1989 by item 45 of Schedule
1 which reduces by $3.612 million the Commonwealth's
research and development contribution to the Fisheries Research and
Development Corporation for the 1997-98 financial year. The
rationale given by the Government in the Explanatory Memorandum to
the Bill for the reduction is that:
[T]he saving is made possible because the
Corporation's sound financial management has left it with
substantial reserves. It is also considered that the saving will
leave the Corporation with sufficient funds to continue operations
and will not affect research priorities in the long term.
Item 46 of Schedule
1 of the Bill removes the requirement that the Minister
approve the terms and conditions of appointment of Executive
Directors appointed to the various research and development
corporations established under the Primary Industries and
Energy Research and Development Act 1989.
Item 47 of Schedule
1 of the Bill removes the requirement that the Minister
approve the terms of appointment of persons appointed to act as
Executive Directors of the various research and development
corporations established under the Primary Industries and
Energy Research and Development Act 1989.
The principal effect of item 48
of Schedule 1 of the Bill is to prevent the
various research and development corporations from delegating there
power to determine the terms and conditions of appointment of
Executive Directors.
Amendments to the Wheat Marketing Act
1989
The principal effect of item 50
of Schedule 1 of the Bill is to prevent the
Australian Wheat Board (AWB) from delegating its power to determine
the terms and conditions of appointment of the Managing Director of
the AWB.
The repeal of subsection 44(4) of the Wheat
Marketing Act 1989, proposed by item 52 of
Schedule 1 of the Bill, allows the AWB to
determine the terms and conditions of employment of AWB staff
without the current restriction that terms and conditions not be
more favourable than those applicable to the Managing Director
without Ministerial approval.
Item 53 of Schedule
1 of the Bill removes the requirement that the Minister
approve the terms and conditions of appointment of the Managing
Director of the AWB.
Ian Ireland
9 March 1998
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 1997
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