Bills Digest No. 84 1997-98
Cattle (Exporters) Export Charge Bill 1997
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
Cattle (Exporters) Export Charge Bill 1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Primary Industries and Energy
Commencement: On the same day as Part 3 of the proposed Australian
Meat and Live- stock Industry Act 1997, that is, on Proclamation
or nine months and one day after Royal Assent, whichever is first.
To impose a charge, payable by the exporter, on cattle, other than dairy
cattle, exported from Australia.
Under existing law section 5 of the Cattle Export Charge Act 1990
imposes a charge on:
- cattle, other than dairy cattle, exported from Australia;
- cattle, other than dairy cattle, exported from Australia on or after
1 February 1991 if the levy imposed by the Cattle Transaction Levy
Act 1995 has not been paid, and is not payable in respect of an
act or transaction relating to the cattle; or
- cattle, other than dairy cattle, exported from Australia on or after
1 July 1995 where: the cattle were bought by the exporter, and the period
between the date of purchase and export is longer than 60 days, or the
period for which the cattle are required to be held in quarantine.
The charge is payable by the exporter of the cattle.
The Primary Industries Levies and Charges Collection Act 1991
provides for the collection of the charge. Proceeds raised by the charge
are disbursed between the Meat Industry Council (MIC), Australian Meat
and Live-stock Corporation (AMLC), Meat Research Corporation (MRC), National
Cattle Disease Eradication Trust Account (NCDE) and the Australian Animal
Health Council Limited (AAHC).
The Cattle Export Charges Act 1990 is being repealed by item
1 of Schedule 4 of the Australian Meat and Live-stock Industry (Repeals
and Consequential Provisions) Bill 1997.
This Bill forms part of a package of 17 Bills restructuring the regulatory
framework of the Australian meat and live-stock industry. Under existing
levy and charge arrangements, funds raised primarily go towards funding
the MIC, AMLC and MRC. Under the proposed arrangements the government
intends that industry contributions will be sourced on a statutory and
non-statutory basis. The collection of statutory levies is intended to
be based on the current system but with changes providing for a transaction
levy on sheep, lambs and goats, replacing the current livestock slaughter
levy, and a separate transaction levy on grain fed cattle.
The rationale given by the Minister in the Second Reading Speech to
the Australian Meat and Live-stock Industry Bill 1997 for the transaction
levy approach is:
The transaction levy approach for sheep, lambs and goats was adopted
at the request of a clear majority of industry whose submission met
all of the requirements of the government's levy principles. A similar
request was also submitted by the grain fed cattle industry sector for
a separate cattle transaction levy. Again this submission met each of
the Government's levy principles.
The existing levy and charge imposition Acts have been modified to
provide for clear sectoral ownership.(1)
In relation to non-statutory contributions, the government is setting
the processor and exporter levies at zero. It should be noted that the
Minister in the Second Reading Speech to the Bill issues a warning in
respect of such contributions, that is:
Should the non-statutory contributions by processors and livestock
exporters fail to meet agreed funding levels for joint industry functions,
and as specifically agreed by these two sectors, the Government has
their prior agreement to maintain levies at a required level to ensure
there is adequate funding.(2)
Under the proposed arrangements, the Government intends that decisions
on levels of levies and charges be the responsibility of peak industry
councils.
In respect to this Bill and the Cattle (Producers) Export Charges Bill
1997, the Minister in the Second Reading Speech to the Australian Meat
and Live-stock Industry Bill 1997 provides a rationale for the repeal
of the Cattle Export Charges Act 1990 and the proposed separate
producer/exporter charge arrangements, that is:
This allows for subsequent reduction of the export sector levy components
to zero, when that sector deliver on its funding commitments under the
new partnership arrangements.(3)
A charge is imposed on cattle, other than dairy cattle, exported from
Australia by clause 4.
Clause 5 provides that the regulations may provide that no amount
of charge is payable by exporters of cattle.
Clause 6 provides that the rate of charge on the export of cattle
will be:
- a prescribed amount per kilogram up to a maximum of 3 cents for payment
to the marketing body (see clauses 60-66 of the Australian Meat
and Live-stock Industry Bill 1997); and
- a prescribed amount per kilogram up to a maximum of 0.5 cents for
payment to the research body (see clauses 60-66 of the Australian
Meat and Live-stock Industry Bill 1997).
The charge will be payable by the exporter of the cattle (clause
7).
- Second Reading Speech, Australian Meat and Live-stock Industry Bill
1997: 10
- Ibid: 11
- Ibid: 15
Ian Ireland
4 November 1997
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ISSN 1328-8091
© Commonwealth of Australia 1997
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Last updated: 12 November 1997
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