Bills Digest No. 3 2005–06
National Residue Survey (Excise) Levy Amendment
Bill 2005
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
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Passage History
National
Residue Survey (Excise) Levy Amendment Bill
2005
Date
Introduced: 23 June
2005
House: House of Representatives
Portfolio: Agriculture, Fisheries and
Forestry
Commencement:
On Royal
Assent.
To allow the funds for monitoring
the levels of chemical and other residues in several categories of
apples and pears to be increased, by increasing the maximum levy
rates and the operative levy rates contained in the National
Residue Survey (Excise) Levy Act 1998 (the Act).
The National
Residue Survey (NRS) is a system of monitoring chemical and
other residues in a range of food and other products.(1)
The Department of Agriculture, Fisheries and Forestry, which
administers the NRS, describes its purposes as:
-
to meet the needs of participating industries in maintaining
access to key markets
-
to maintain consumer confidence in Australian food commodities
covered by NRS projects
-
to underpin quality-assurance projects
-
to assist in resolving residue-related trade incidents, and
-
to establish a bank of objective and scientifically valid
data.
Monitoring of the levels of chemical residues in apples and
pears began in 1999.
The NRS s objectives are to underpin export and domestic
marketing initiatives of participating industries and thus to
enhance the value of Australian agricultural industries, and to
maintain consumer confidence by providing:
-
independent, authoritative and scientifically based evidence
supporting the chemical residue and contaminant status of the
products covered by NRS residue monitoring activities, and
-
scientific advice on residues and contaminants and contributing
to the management of residue-related issues.
The NRS is thus important for Australia s food exports. Indeed,
some export markets, such as the United States and the European
Community, require a government chemical residue monitoring program
as a condition of entry for certain products.
The NRS was established in the 1960s as the Commonwealth s
response to concerns about pesticide residues in key meat export
markets. The NRS was subsequently expanded to other food items. The
items covered are set out in the 16 Schedules to the Act.
Administration of funds collected is through the National
Residue Survey Administration Act 1992. This Act
also prescribes the purposes for which funds collected can be used
and the products and activities on which liability to pay levies
arises.(2)
Funding of the NRS is provided from five sources (the main
source is the levies that participating industries pay). The
sources are:
-
direct funding by fees recovered through statutory collection
mechanisms
-
direct payments by other means (for example, for projects
undertaken under contract)
-
interest earned on short-term investments of funds held in
reserve
-
payments for proficiency testing, sale of services and from fees
charged for the supply of information, and
-
appropriation funding from the Australian Government
for NRS government business activities under community service
obligations.
Payments and receipts under the National Residue Survey
Administration Act are through a special account. In 2005 06,
estimated account receipts are $10 million and payments are $10.8
million.(3) The Budget appropriation for 2005 06 under
the National Residue Survey Administration Act is $5.8 million. The
appropriation is made under Output 5 product integrity, animal
(including aquatic animal) and plant health of the Department of
Agriculture, Fisheries and Forestry.(4)
The Minister s second reading speech states:
The amendments are part of a package of strategies
being put in place on behalf of the Apple and Pear Industry and the
increase in the maximum allowable levy rate will allow the Industry
further scope to expand its operative rate of levy by subordinate
legislation where access to further funding for residue monitoring
programs may be required at short notice.
In 2002, the industry developed the
Apple and Pear Industry Strategic Plan 2002 2007.
Apple and Pear Australia
Limited (APAL), which represents the industry, reviewed
the plan to determine investment priorities for 2005 06.
In March 2005, the former Minister for Agriculture, Fisheries
and Forestry, the Hon. Warren Truss, and APAL announced a
project between the Australian Government and APAL. The project
aims to boost industry profitability, sustainability and
competitiveness. The project:
will receive $440,000 this financial year from the
Coalition Government's $4.7 million, Pilot Industry Partnerships
Program, which is part of the Agriculture - Advancing Australia
(AAA) package.
The $440,000 will be matched by the apple and pear
industry with in-kind and other support .
The program reflects the importance the
Howard/Anderson Government places on partnerships with industry.
The Coalition made an election commitment to extend this initial
program by three years from 1 July 2005 at the cost of a further
$15 million.
"The apple and pear industry will use the funding
to evaluate its strengths and weaknesses, and develop strategies to
help it compete successfully in the international and domestic
marketplace over the next five to 10 years," Mr Truss
said.(5)
Schedule
9 of the Act contains the levy rates on horticultural
products.
Subclause 5(1) of Schedule 9 of the Act, which deals with
apples, provides:
The rate of National Residue Survey Levy imposed
by this Schedule on apples (other than juicing apples or processing
apples) is 0.06 cents per kilogram or, if another rate (not
exceeding 0.06 cents per kilogram) is prescribed by the
regulations, the other rate.
Subclause 5(1) thus contains provision for an operative rate and
a maximum rate; in this particular case, the rates are
identical.
Item 1 of Schedule 1 of the
Bill replaces 0.06 cents per kilogram where it first appears in
subclause 5(1) with 0.075 of a cent per kilogram.
Item 2 of Schedule 1 replaces not exceeding
0.06 cents per kilogram with not exceeding 0.1 of a cent per
kilogram .
Subclause 5(2) of Schedule 9 of the Act, which deals with pears,
provides:
The rate of National Residue Survey Levy imposed
by this Schedule on pears (other than juicing pears or processing
pears) is 0.06 cents per kilogram or, if another rate (not
exceeding 0.06 cents per kilogram) is prescribed by the
regulations, the other rate.
Item 3 of Schedule 1 replaces 0.06 cents per
kilogram (where it first appears), with 0.075 of a cent per
kilogram.
Item 4 of Schedule 1 replaces not exceeding
0.06 cents per kilogram with not exceeding 0.1 of a cent per
kilogram .
Subclauses 5(3), 5(4), 5(5) and 5(6) of Schedule 9 of the Act
deal respectively with juicing apples, juicing pears, processing
apples and processing pears. All subclauses contain a section which
refers to another rate (not exceeding 60 cents per tonne) .
Item 5 replaces this amount with $1.00 per
tonne.
Concluding Comments
The apple and pear industry is an important agricultural
industry.
Annual production is about half-a-million tonnes, gross production
value is about $400 million, and exports are worth about $60
million.(6) Confidence in and acceptability of the
industry s product depends, among other things, on the residues
that it contains. The industry is experiencing competition from
imported product and is seeking to improve its competitive
position. The changes in this Bill seem to be part of the industry
s strategy to meet competition by allowing for increased funding of
residue testing.
-
Maximum residue limits, for chemicals registered for use in
Australia, have been established for apples and pears.
-
The regulations governing the collection of the levies are at:
http://frli.law.gov.au/s97.vts?VdkVgwKey=1997B02852&ViewTemplate=frliview.hts&action=View
(accessed 18 July 2005)
-
Department of Agriculture, Fisheries and Forestry, Portfolio
Budget Statements 2005 06, p. 23.
-
Department of Agriculture, Fisheries and Forestry, Portfolio
Budget Statements 2005 06, p. 22.
-
Hon. W Truss (Minister for Agriculture, Fisheries and Forestry)
and Mr J Durham, Managing Director (Apple and Pear Australia
Limited), She ll be apples - Australian Government and the
apple and pear industry to join forces, media
release, 29 March 2005.
-
Hon. R. Colbeck (Parliamentary Secretary to the Minister for
Agriculture, Fisheries and Forestry), Pink lady
tm apples tickle UK s palate,
media
release, 2 December 2004.
Richard Webb
25 July 2005
Bills Digest Service
Information and Research Services
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Australian Parliament using information available at the time of
production. The views expressed do not reflect an official position
of the Information and Research Service, nor do they constitute
professional legal opinion.
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ISSN 1328-8091
© Commonwealth of Australia 2005
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Published by the Parliamentary Library, 2005.
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