Bills Digest no. 102,
2015–16
PDF version [562KB]
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.
Robert Dolamore
Economics Section
23
March 2016
Contents
Purpose of the Bill
Background
Safeguards
Committee consideration
Selection of Bills Committee
Senate Standing Committee for the
Scrutiny of Bills
Policy position of non-government
parties/independents
Australian Labor Party
Other parties/independents
Position of major interest groups
Financial implications
Statement of Compatibility with Human
Rights
Parliamentary Joint Committee on
Human Rights
Key issues and provisions
Other provisions
Date introduced: 3
March 2016
House: House of
Representatives
Portfolio: Agriculture
and Water Resources
Commencement: The
formal provisions of the Bill commence on the day of Royal Assent. The
operative provisions of the Bill commence the day after the Bill receives
Royal Assent.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the Bill’s
home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent,
they become Acts, which can be found at the Federal Register of Legislation
website.
All hyperlinks in this Bills Digest are correct as
at March 2016.
Purpose of
the Bill
The purpose of the Primary Industries Levies and Charges
Collection Amendment Bill 2016 (the Bill) is to amend the Primary Industries
Levies and Charges Collection Act 1991 (the Act) to allow the Department of
Agriculture and Water Resources (DAWR) to provide levy payer information to
rural research and development corporations (RDCs) and the Australian Bureau of
Statistics (ABS). The provision of this information is primarily intended to
facilitate RDCs developing levy payer registers with a view to pursuing
engagement strategies which would give primary producers a greater say in how
the levies they pay are used.
Background
There are 15 RDCs—five Commonwealth statutory bodies and
10 industry‑owned companies—through which the Australian Government and
primary producers co-invest in rural research and development (R&D).[1]
Currently DAWR, which is responsible for administering, collecting and
disbursing the levies paid by primary producers, can only pass levy payer
information to two of the RDCs, namely Australian Wool Innovation Limited and
Dairy Australia Limited.[2]
The Bill removes the legislative impediment to DAWR similarly passing on levy
payer information to the remaining 13 RDCs subject to certain specified safeguards.
The National Farmers’ Federation (NFF) is of the view that
developing levy payer databases could underpin a range of engagement
strategies, which have the potential to improve the accountability of RDCs to levy
payers in the investment of their levy contributions.[3]
It would also enhance and strengthen Australia’s rural R&D system, including
by facilitating better alignment of ‘research investments to industry
priorities—improving returns to primary producers and contributing to a more
profitable, competitive and sustainable agricultural sector.’[4]
The Bill does not make it mandatory for RDCs to develop
levy payer registers, rather, it leaves this decision with the RDCs. In his
second reading speech the Deputy Prime Minister and Minister for Agriculture
and Water Resources outlined:
The bill removes the legislative impediment to the
development of levy payer registers. However, recognising that a ‘one size fits
all’ approach would not be appropriate given the diversity of Australian
agricultural industries, the Bill allows for the distribution of levy payer
information to an RDC to occur only where an RDC, in consultation with
industry, requests it, and that request is approved by the minister. The
department would then work with the RDC on the administrative design and
development of a register. This is consistent with the government’s approach to
the broader R&D levy system, which is centred on industry support.[5]
Enabling the distribution of levy payer information to
RDCs was recommended in a report by the Senate Rural and Regional Affairs and
Transport References Committee (the Committee) following its inquiry into Industry Structures and Systems Governing the Imposition
and Disbursement of Marketing and Research and Development (R&D) Levies in
the Agriculture Sector.[6]
The Committee was of the view:
As the levy system is extremely
complex and opaque for many levy payers, the provision of information on levy
payers would enable industry bodies (including relevant RDCs) to target and
tailor the information they provide to levy payers. The committee takes the
view that if used appropriately, information gleamed vis-à-vis the database
will provide for voting entitlements of levy payers and enable levy recipients
to demonstrate to levy payers where and how their levies are invested.
The committee further considers the collection of such data
would assist relevant authorities and industry to communicate timely
information to levy payers in the event of biosecurity emergencies, and assist
authorities in better identifying risks in such emergencies.[7]
The Committee made six further recommendations to improve
the flexibility and responsiveness of the levy system. These matters are not
dealt with in this Bill.
The Bill also permits DAWR to pass levy payer information
to the Australian Bureau of Statistics (ABS). In relation to this, the Deputy
Prime Minister and Minister for Agriculture and Water Resources noted in his
second reading speech:
This is consistent with the government’s public data policy statement,
which commits to securely share data between Australian Government entities to
improve efficiencies, and inform policy development and decision‑making.[8]
A copy of the Australian Government’s Public Data
Policy Statement is available here.[9]
Safeguards
The Bill includes a number of measures to safeguard the
integrity of levy payer information:
- DAWR
can only release levy payer information to the RDCs and ABS[10]
- RDCs
will only be allowed to use the levy payer information for certain specified
purposes including: maintaining a levy payer register, publishing statistical
de-identified information and determining eligibility to be a member or
shareholder of the RDC[11]
and
- the
Bill prohibits secondary disclosure of levy payer information by an RDC except
in limited circumstances and subject to the approval, in writing, of the
Secretary of DAWR.[12]
In cases where such approval is granted, the information may only be used for
R&D related activities, marketing activities, biosecurity purposes or
National Residue Survey purposes.[13]
Committee
consideration
Selection
of Bills Committee
The Bill has been referred to the Rural and Regional Affairs
and Transport Legislation Committee for inquiry and report by
12 May 2016.[14]
Details of the inquiry are available here.[15]
Senate
Standing Committee for the Scrutiny of Bills
The Senate Standing Committee for the Scrutiny of Bills had
no comment on the Bill.[16]
Policy
position of non-government parties/independents
Australian
Labor Party
During the second reading debate the Shadow Minister for
Agriculture, Fisheries and Forestry, Joel Fitzgibbon, indicated the Opposition
supports the Bill but is seeking greater clarity about the protection of levy
payer information and how the proposed protections will work in practice. He
stated:
We need to be sure that all the intentions of these changes
are as stated and that there will not be an opportunity for levy payments to be
misused, deliberately or otherwise, especially by peak industry bodies or
councils, which might see an opportunity in using the information to promote
their own views about the industry or to canvas other people's views or to run
a political campaign. This information would be very powerful in the hands of a
peak body, as it is something that has not been available to them before. It
could dramatically change the dynamic of any particular sector and it might
allow a peak body to advocate increases in levy charges directly to levy
payers. These are legitimate questions and we will be seeking to have them
answered in the Senate. I am sure that the secretary of the department will be
able to help us out in that regard.[17]
Other
parties/independents
At the time of writing, the policy positions of other
non-government parties and independents were not yet known.
However, the Senate Rural and Regional Affairs and
Transport References Committee’s inquiry report Industry Structures and Systems
Governing the Imposition and Disbursement of Marketing and Research and Development
(R&D) Levies in the Agriculture Sector was endorsed by all the members
of the Committee. This included the recommendation that the Act be amended to
enable the collection and distribution of levy payer information for the
purposes of allowing the creation of levy payer databases for all agricultural
industries that pay agricultural levies.[18]
In additional comments to the Committee’s report,
Senator David Leyonhjelm, who supports RDCs being more accountable to levy
payers, observed:
Once the identities of levy payers and the amount of levies
paid are known, it would be a relatively simple matter to consult levy payers
on a regular basis as to the level of levies to be paid and their preferences
as to how the revenue is spent.[19]
Position of
major interest groups
A number of organisations representing the views of
primary producers have indicated they support DAWR being able to pass on levy
payer information to RDCs for the purposes of developing levy payer registers:
- the
Cattle Council of Australia (CCA) argues the proposed changes will have
multiple benefits including greater transparency of industry voting systems,
improved disease management and prevention, improved extension services and
more targeted communication with levy payers[20]
- NSW
Farmers has a short statement on its website noting that the legislation will
empower RDCs to allocate levy payers with voting rights and develop more
accountability to primary producers.[21]
NSW Farmers supports the creation of levy payer registers[22]
- the
Sheepmeat Council of Australia (SCA) has stated that the amendments will allow
it to have better engagement with levy payers and therefore provide for more
effective oversight of levy expenditure.[23]
The SCA also indicated that it supports the proposed safeguards for levy payer
information.
Financial
implications
The Explanatory Memorandum states that this Bill has no
financial impact.[24]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011 (Cth), the Government has assessed the Bill’s
compatibility with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of that Act. The Government
considers that the Bill is compatible.[25]
Parliamentary
Joint Committee on Human Rights
The Parliamentary Joint Committee on Human Rights considers
that the Bill does not raise human rights concerns.[26]
Key issues
and provisions
Parliament is being asked to approve amendments to the Act
that remove a legislative impediment to DAWR providing levy payer information
to all the current RDCs and the ABS, with a view to the RDCs developing levy
payer registers.
The key provisions of the Bill are:
- Item
2 repeals subsections 27(3), (3A) and (4) of the Act. Subsections
27(3) and (3A) provide the legislative authority for DAWR to provide
the wool and dairy industry bodies with levy payer information. These bodies will
now receive this information by virtue of proposed section 27A. The
repeal of subsection 27(4) removed definitions that are no longer needed
or are replaced by new definitions in item 3
- Item
3 inserts two new sections, 27A and 27B after section 27.
Proposed subsection 27A(1) sets out what information DAWR may
provide an eligible recipient about a levy payer, the levies and charges the
person has paid and production or processing information of a product subject
to a levy (determined by instrument under proposed subsection 27A(3)).
Proposed subsection 27A(2) defines eligible recipient as all
current RDCs and the ABS. Proposed subsection 27A(4) defines
Australian Business Number (ABN), which may be released under proposed paragraph 27A(1)(a),
as having the meaning given by section 41 of the A New Tax
System (Australian Business Number) Act 1999
- Proposed
subsection 27B(1) sets out the purposes for which an RDC may use levy
payer information, namely to: maintain a levy payer or charge payer register;
maintain a register of those eligible to vote in any poll conducted by the RDC;
publish statistical de-identified information; and perform any of its functions
under a Commonwealth law or a contract between itself and the Commonwealth. Proposed
subsection 27B(2) allows the RDC to use levy payer information to
determine whether a person is, or remains eligible to be, a member or
shareholder of the body. Proposed subsection 27B(3) allows the ABS
to use levy payer information to perform any of its functions. Subsection 27B(4)
prohibits RDCs from providing the levy payer information they receive from DAWR
to any other person or body except with the approval, in writing, of the
Secretary of DAWR. Subsection 27B(6) restricts the use of
information released under subsection 27B(4) to: an R&D
activity; marketing activities; biosecurity purposes or National Residue Survey
purposes
- Item 5
inserts proposed subsection 29(1A) which allows the Secretary of
DAWR to delegate, in writing, to a Senior Executive Service employee in the
Department (who is at or acting at Band 1 or 2 level) the power to authorise an
RDC to release levy payer information to another person or body under subsection 27B(4).
Other provisions
The Bill makes a number of consequential amendments to the
Australian Meat and Live-stock Industry Act 1997, the Dairy Produce
Act 1986 and the National Residue Survey Administration Act 1992.
Members, Senators and Parliamentary staff can obtain
further information from the Parliamentary Library on (02) 6277 2500.
[3]. National
Farmers’ Federation, Submission
to the Senate Rural and Regional Affairs and Transport References Committee, Industry
structures and systems governing the imposition and disbursement of marketing
and research and development (R&D) levies in the agriculture sector,
December 2014, p. 28.
[10]. Primary
Industries Levies and Charges Collection Act, proposed subsection 27A(2)
inserted by item 3 of the Bill.
[11]. Ibid.,
proposed subsections 27B(1) and (2) inserted by item 3 of
the Bill.
[12]. Ibid.,
proposed subsection 27B(4) inserted by item 3 of the Bill.
[13]. Ibid.,
proposed subsection 27B(6) inserted by item 3 of the Bill.
The National Residue Survey (NRS) is part of Australia’s system for managing
the risk of chemical residues and environmental contaminants in Australian food
products. It was established by the Australian Government in the early 1960s
and since 1992 has been an industry-funded activity. The NRS is primarily
focused on facilitating the testing of animal and plant products for pesticide
and veterinary medicine residues, and environmental contaminants. More
information about the NRS is available on DAWR’s website.
[14]. Selection
of Bills Committee, Report,
4, 2016, The Senate, Canberra, 17 March 2016.
[16]. Senate
Standing Committee for the Scrutiny of Bills, Alert
digest, 4, 2016, 17 March 2016, p. 8.
[25]. The
Statement of Compatibility with Human Rights can be found at page 5 of the
Explanatory Memorandum to the Bill.
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