Bills Digest no. 6, 2016–17
PDF version [569KB]
Robert Dolamore and Rob Dossor
Economics Section
8
September 2016
This Bills Digest updates an earlier
version dated 23 March 2016.
Contents
History of the Bill
Purpose of the Bill
Background
Safeguards
Committee consideration
Selection of Bills Committee
Senate Standing Committee for the
Scrutiny of Bills
Rural and Regional Affairs and
Transport Legislation Committee
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: 31
August 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 September 2016.
History of
the Bill
An almost identical version of this Bill was introduced
into the 44th Parliament on 3 March 2016.[1]
That Bill had passed the House of Representatives and was before the Senate
when Parliament was prorogued on 15 April 2016. The Bill lapsed on prorogation
of Parliament.
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).[2]
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.[3]
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.[4]
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.’[5]
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.[6]
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.[7]
The inquiry had been established partly as a result of the effort of Senator
David Leyonhjelm who had been critical of the levy system, including how levies
are set and spent.[8]
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.[9]
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.[10]
A copy of the Australian Government’s public data policy statement is available on the Parliament
of Australia website.[11]
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[12]
- 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[13]
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.[14]
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.[15]
Committee
consideration
Selection
of Bills Committee
At its meeting of 1 September 2016, the Senate Selection of
Bills Committee deferred consideration of the Bill until its next meeting. The earlier
version of the Bill was referred to the Rural and Regional Affairs and
Transport Legislation Committee for inquiry, which reported on 22 April 2016.[16]
Details of the inquiry are available on the Committee
webpage.[17]
Senate
Standing Committee for the Scrutiny of Bills
The Senate Standing Committee for the Scrutiny of Bills had
no comment on the earlier version of the Bill.[18]
Rural and
Regional Affairs and Transport Legislation Committee
On 17 March 2016 the earlier version of the Bill was
referred to the Rural and Regional Affairs and Transport Legislation Committee
for inquiry and report by 12 May 2016.[19]
The Committee recommended that the Senate pass the Bill and that the Department
of Agriculture and Water Resources continue to consult with RDCs and
representatives of the agricultural industry as it implements the Bill’s
measures.[20]
It also recommended that the Minister for Agriculture and Water Resources table
a response to the Inquiry into the industry
structures and systems governing the imposition and disbursement of marketing
and research and development levies in the agriculture sector.[21]
Policy
position of non-government parties/independents
Australian
Labor Party
During the second reading debate on the earlier version of
the Bill, the Shadow Minister for Agriculture, Fisheries and Forestry, Joel Fitzgibbon,
indicated the Opposition supported the Bill but was 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.[22]
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.[23]
In additional comments to the Committee’s report,
Senator 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.[24]
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[25]
- 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.[26]
NSW Farmers supports the creation of levy payer registers[27]
- 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.[28]
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.[29]
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.[30]
Parliamentary
Joint Committee on Human Rights
The Parliamentary Joint Committee on Human Rights considered
that the previous version of the Bill did not raise human rights concerns.[31]
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. If the
information released under subsection 27(4) was disclosed by an RDC, the
information may also be used in connection with activities carried out by the
RDC for the benefit of industry (proposed paragraph 27B(6)(e), which was
not in the original Bill).
- 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.
[1]. Parliament
of Australia, ‘Primary
Industries Levies and Charges Collection Amendment Bill 2016’, Australian
Parliament website.
[2]. Department
of Agriculture and Water Resources (DAWR), ‘Rural
research and development corporations’, DAWR website, last reviewed
23 September 2015.
[3]. Primary Industries
Levies and Charges Collection Act 1991, subsections 27(3) and (3A).
[4]. National
Farmers’ Federation, Submission
143 to the Senate Standing Committee on Rural and Regional Affairs and
Transport, 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.
[5]. B
Joyce, ‘Second
reading speech: Primary Industries Levies and Charges Collection Amendment Bill
2016’, House of Representatives, Debates, 3 March 2016,
p. 2931.
[6]. Ibid.,
p. 1.
[7]. 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,
The Senate, Canberra, June 2015.
[8]. Australia,
Senate, Journals,
50, 2013–14, 2 September 2014, p. 1389 and Senate Rural and Regional Affairs
and Transport Standing Committee, Industry
structures and systems governing the imposition of and disbursement of
marketing and research and development (R&D) levies in the agricultural
sector, ‘Additional Comments by Senator David Leyonhjelm’,The Senate,
Canberra, 2015, p. 79.
[9]. Ibid.,
p. 74.
[10]. B
Joyce, ‘Second
reading speech: Primary Industries Levies and Charges Collection Amendment Bill
2016’, op. cit., p. 1.
[11]. M
Turnbull (Prime Minister), Australian
Government public data policy statement, policy statement, Department
of Prime Minister and Cabinet, 7 December 2015.
[12]. Primary
Industries Levies and Charges Collection Act, proposed subsection 27A(2)
inserted by item 3 of the Bill.
[13]. Ibid.,
proposed subsections 27B(1) and (2) inserted by item 3 of
the Bill.
[14]. Ibid.,
proposed subsection 27B(4) inserted by item 3 of the Bill.
[15]. 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.
[16]. Senate
Standing Committee for Selection of Bills, Report,
4, 2016, The Senate, Canberra, 17 March 2016.
[17]. Senate
Rural and Regional Affairs and Transport Legislation Committee, ‘Primary
Industries Levies and Charges Collection Amendment Bill 2016’, Australian
Parliament website.
[18]. Senate
Standing Committee for the Scrutiny of Bills, Alert
digest, 4, 2016, The Senate, 17 March 2016, p. 8.
[19]. Senate
Rural and Regional Affairs and Transport Legislation Committee, Primary
Industries Levies and Charges Collection Amendment Bill 2016 [Provisions],
The Senate, Canberra, 2016, p. 1.
[20]. Ibid.,
p. vii.
[21]. Ibid.
[22]. J
Fitzgibbon, ‘Second
reading speech: Primary Industries Levies and Charges Collection Amendment Bill
2016’, House of Representatives, Debates, 16 March 2016, p. 88.
[23]. 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,
op. cit., p. 74.
[24]. Ibid.,
p. 80.
[25]. Cattle
Council of Australia (CCA), CCA closer to
direct membership with levy expenditure legislation, media release, 3
March 2016.
[26]. NSW
Farmers, ‘Legislation
to create levy payer database introduced’, NSW Farmers website.
[27]. Ibid.
[28]. Sheepmeat
Council of Australia (SCA), Sheep
meat industry welcomes levy payer register legislation, media release,
3 March 2016.
[29]. Explanatory
Memorandum, Primary Industries Levies and Charges Collection Amendment Bill
2016, p. 4.
[30]. The
Statement of Compatibility with Human Rights can be found at page 4 of the
Explanatory Memorandum to the Bill.
[31]. Parliamentary
Joint Committee on Human Rights, Thirty-sixth
Report of the 44th Parliament, 16 March 2016, p. 1.
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