Bills Digest no. 60,
2016–17
PDF version [679KB]
Rob Dossor
Economics Section
Michele Brennan
Law and Bills Digest Section
10
February 2017
Contents
Purpose of the Bill
Commencement
Structure of the Bill
Background
Committee consideration
Selection of Bills Committee
Senate Standing Committee for the
Scrutiny of Bills
Policy position of non-government
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
Agriculture and Water Resources
Legislation Amendment Bill 2016
Replicated provisions
Location in Legislation Amendment
Bill
Location in Spring Repeal Bill
Key issues relating to replicated
provisions
Abolition of the National Rural
Advisory Council
Abolition of the APVMA Advisory Board
Key issues relating to new provisions
Farm Household Support – Delegation
of rule-making power
Abolition of the Statutory Fishing
Rights Allocation Review Panel
Tabling of certain documents in
parliament
Dairy Produce Act
Forestry Marketing and Research
and Development Services Act
Sugar Research and Development
Services Act
Repeal of various Acts
Excise Levies Legislation
Amendment (Honey) Bill 2016
Concluding comments
Date introduced: 1
December 2016
House: House of
Representatives
Portfolio: Agriculture
and Water Resources
Commencement: Commencement
dates for each section are outlined body of this Digest.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the
Bill’s homepages for the Agriculture
and Water Resources Legislation Amendment Bill 2016 and the Excise
Levies Legislation Amendment (Honey) Bill 2016, 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 February 2017.
Purpose of
the Bill
The main purpose of the Agriculture and Water Resources
Legislation Amendment Bill 2016 (Legislation Amendment Bill) is to repeal spent
and redundant provisions in various Acts, abolish bodies considered to be
obsolete and remove regulatory requirements in a range of portfolio areas that
have been judged unnecessary. The Bill would also remove tabling requirements relating
to Commonwealth funding agreements with industry‑owned rural research and
development corporations. Much of what is contained in the Legislation
Amendment Bill was also in the Omnibus Repeal Day (Spring 2015) Bill 2015 (Spring
2015 Repeal Bill) which lapsed on the prorogation of Parliament in April 2016.[1]
The purpose of the Excise Levies Legislation Amendment
(Honey) Bill 2016 (the Honey Bill) is to amend the Primary Industries
(Excise) Levies Act 1999 to remove the requirement for purchasers of honey (who
intend on exporting it) to provide the seller with a certificate of their
intention to export the honey.[2]
It also makes similar amendments to the National Residue Survey (Excise)
Levy Act 1998.[3]
Commencement
Sections 1 to 3 of the Legislation Amendment Bill commence
the day the Act receives Royal Assent. Items 1 to 52 and 55 to 57 of Schedule 1,
and Schedule 2 commence the day after Royal Assent.
Items 53 and 54 of Schedule 1 of the Legislation Amendment
Bill commence either immediately after the commencement of items 1 to 52 or immediately
after the commencement of Schedule 9 of the Regulatory Powers
(Standardisation Reform) Act 2016 (whichever is later).[4]
However, items 53 and 54 do not commence at all if Schedule 9 of the Regulatory
Powers (Standardisation Reform) Act 2016 does not commence.
The Honey Bill commences the day after the Act receives Royal
Assent.
Structure
of the Bill
The Legislation Amendment Bill has two schedules. Schedule
1 makes amendments to the following Acts:
Schedule 2 repeals a number of Acts including the:
Schedule 2 also makes consequential amendments to
the Natural
Heritage Trust of Australia Act 1997.
The Honey Bill has one schedule which amends the Primary
Industries (Excise) Levies Act 1999 and the National Residue Survey
(Excise) Levy Act 1998.
Background
Omnibus repeal Bills previously formed an important part
of the Government’s cutting red tape policy. In 2014, for example, the Omnibus
Repeal Day (Autumn 2014) Bill 2014 (along with other specific repeal Bills) was
said to repeal more than 10,000 pieces of legislation and reduce compliance
costs across the economy by $700 million.[5]
At the time the Government committed to remove at least $3 billion in
compliance costs across the country within three years. The Government went on
to introduce a further three Omnibus Repeal Day Bills in the Spring 2014,
Autumn 2015 and Spring 2015 sitting periods.[6]
Only the Autumn 2014 and Autumn 2015 repeal Bills passed.
The most recent repeal Bill—the Omnibus Repeal Day (Spring
2015) Bill 2015 (the Spring 2015 Repeal Bill)—contained a number of provisions that
are also included in the Legislation Amendment Bill, including those which
would disband three statutory bodies: the Agricultural Pesticides and
Veterinary Medicines Authority (APVMA) Advisory Board, the Fishing Industry
Policy Council and the National Rural Advisory Council.[7]
Both the Spring 2015 Repeal Bill and the Legislation Amendment Bill also
contain amendments to the Natural Heritage Trust of Australia Act 1997; and
provisions to repeal a number of Acts, such as the Rural Adjustment Act 1992
and the Wool International Act 1993. The overlap between the Bills is
outlined in more detail in the ‘key issues’ section later in this Digest.
Dr Peter Hendy, in his capacity as Assistant Minister for
Productivity, wrote an opinion piece in The Australian in February 2016
that outlined the Government’s new regulatory reform agenda.[8]
As part of this agenda, repeal days were to be replaced with annual reports
which would assess the Government’s performance in repealing legislation and
outline a course for reform over the coming year.[9]
Dr Hendy noted that while ‘the present approach of biannual repeal days has
been useful ... its effectiveness in repealing legislation into the future will
be limited as [the Government has] now done the major work to clean up the statute
books’.[10]
With the failure to pass the Spring 2015 Repeal Bill, the
Government was not able to disband the statutory bodies as intended, despite
the fact that some had already, effectively, ceased to function. The National
Rural Advisory Council, for example, has already been merged with the
Agricultural Industry Advisory Council.[11]
According to the Department of Agriculture and Water Resources, it ceased
operating on 30 June 2015.[12]
Committee
consideration
Selection
of Bills Committee
At its meeting of 30 November 2016, the Selection of Bills
Committee deferred consideration of the Bills to its next meeting.[13]
The Spring 2015 Repeal Bill (in which a number of the
matters in the Legislation Amendment Bill were originally proposed) was examined
by the Senate Finance and Public Administration Legislation.[14]
The Committee recommended that the Spring 2015 Repeal Bill be passed.[15]
Labor senators on the Committee provided additional comments outlining their
opposition to the amendments relating to the abolition of the National Rural
Advisory Council and recommend that these amendments be removed from the Bill.[16]
Senate
Standing Committee for the Scrutiny of Bills
At the time of writing this Bills Digest, the Senate
Standing Committee for the Scrutiny of Bills had not published any comments
about the Bills. When the Scrutiny Committee examined the Spring 2015 Repeal
Bill, it had no comments on the amendments that are included in the Legislation
Amendment Bill.[17]
Policy
position of non-government parties/independents
As set out above, a number of the measures in the
Legislation Amendment Bill were included in the Spring 2015 Repeal Bill. In
second reading speeches and other statements, Labor raised concerns about a
number of aspects of the Spring 2015 Repeal Bill.[18]
Relevantly to the current Bill, Labor was concerned about the repeal of the Rural
Adjustment Act 1992, which will result in the abolition of the National
Rural Advisory Council (NRAC) and the decision to abolish the APVMA Advisory
Board.[19]
Other non-government parties and the independents do not
appear to have announced any policy position in relation to the Bills.
Position of
major interest groups
Apart from a media report indicating that Animal Medicines
Australia supports the abolition of the APVMA Advisory Board (see further
discussion below), interest groups do not appear to have made comments on the
Legislation Amendment Bill.[20]
The Explanatory Memorandum to the Honey Bill states that the Australian Honey
Bee Industry Council supports the amendments in that Bill.[21]
Financial
implications
According to the Explanatory Memoranda, the Bills have no
financial impacts on the Australian Government.[22]
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 Bills’
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 Bills are compatible.[23]
Parliamentary
Joint Committee on Human Rights
The Parliamentary Joint Committee on Human Rights has not
yet reported on the Bills. When the Committee examined the Spring 2015 Repeal
Bill, it had no comments on the amendments that are included in the Legislation
Amendment Bill.[24]
Key issues
and provisions
Agriculture
and Water Resources Legislation Amendment Bill 2016
The Legislation Amendment Bill replicates a number of
provisions from the Spring 2015 Repeal Bill. These replicated provisions
include:
- the
repeal of the Rural Adjustment Act 1992, Wool International Act 1993
and the Wool International Privatisation Act 1999 (Schedule 2 items
10, 11 and 12 respectively)
- limiting
the information that the Australian Pesticides and Veterinary Medicines
Authority (APVMA) is required to provide to Food Standards Australia New
Zealand in determining whether the Maximum Residue Limits Standard is required
to be changed (Schedule 1 items 11 and 13)
- abolishing
the APVMA Advisory Board and the Fishing Industry Policy Council (Schedule 1
items 4 to 10 and 29 to 32 respectively)
- removing
provisions from the Australian Meat and Live-stock Industry Act 1997 that
require a licence to be obtained in order to export meat by-products (Schedule
1 items 16 to 22) and
- abolishing
the National Rural Advisory Council (Schedule 2 item 10).
The table below outlines the location of the replicated
provisions in both the Legislation Amendment Bill and the Spring Repeal Bill.
Table 1: replicated provisions
Location
in Legislation Amendment Bill |
Location
in Spring Repeal Bill |
Amendments to Agricultural and Veterinary Chemicals
(Administration) Act 1992 |
Schedule 1 items 1 to 10 |
Schedule 1 items 12 to 21 |
Amendments to Agricultural and Veterinary Chemicals Code
Act 1994 |
Schedule 1 items 11 and 13 |
Schedule 1 items 10 and 11 |
Amendments to Australian Meat and Live-Stock Industry
Act 1997 |
Schedule 1 items 16 to 22 |
Schedule 1 items 26 to 32 |
Amendments to Fisheries Administration Act 1991 |
Items 29 to 32 |
Schedule 1 items 22 to 25 |
Rural Adjustment Act 1992 |
Schedule 2 item 10 |
Schedule 1 item 1 |
Wool International Act 1993 |
Schedule 2 item 11 |
Schedule 1 item 3 |
Wool International Privatisation Act 1999 |
Schedule 2 item 12 |
Schedule 1 item 4 |
Amendments to Natural Heritage Trust of Australia Act
1997 |
Schedule 2 items 13 to 17 |
Schedule 1 items 5 to 9 |
Source: Parliament of Australia, ‘Agriculture
and Water Resources Legislation Amendment Bill 2016 homepage’, Australian
Parliament website; and Parliament of Australia, ‘Omnibus
Repeal Day (Spring 2015) Bill 2015 homepage’, Australian Parliament website.
Key issues
relating to replicated provisions
The measures to cease the National
Rural Advisory Council and the APMVA Advisory Board were discussed in the Bills
Digest for the Spring 2015 Repeal Bill.[25]
That discussion is reproduced here for ease of reference.
Abolition
of the National Rural Advisory Council
Under the Rural Adjustment Act 1992, the National
Rural Advisory Council (NRAC) ‘was established as a statutory body in December
1999 as a skills-based independent advisory council’.[26]
The role of the NRAC is to provide the Agriculture Minister with advice and
information on matters including rural adjustment, regional issues, and
training.[27]
The NRAC may consist of up to eight members which must include:
- a
chairperson
- an
officer of the Department of Agriculture, to represent the Commonwealth
- a
state or territory representative
- a
National Farmers’ Federation (NFF) representative
- members
with expertise in economics, financial administration, banking, sustainable
agriculture, regional adjustment, regional development, farm management or
training.[28]
In March 2014, the National Commission of Audit released
Phase 2 of its report, which contained a recommendation that the NRAC (along
with a number of other bodies within the Agriculture portfolio) be merged into
the Department of Agriculture.[29]
Following on from the 2014–15 Mid‑Year Economic and Fiscal Outlook as
part of the Government’s Smaller Government Reform Agenda it was
announced that the NRAC would be merged into the Agriculture Industry Advisory
Council [AIAC][30]
and ‘the positions of NRAC members were allowed to lapse or were revoked on 30
June 2015’.[31]
The Explanatory Memorandum explains that ‘information,
advice and recommendations on issues affecting Australia’s agricultural,
fishing, forestry and water sectors can now be fulfilled by the AIAC’.[32]
The AIAC was established in January 2014 and 10 members were appointed (which
has increased to 12 members), with the Minister of Agriculture chairing the
council.[33]
During the debate on the Bill in the House of Representatives the Member for
Hunter, Mr Joel Fitzgibbon, argued that the AIAC was a poor substitute for the
NRAC as it was not a statutory authority with reporting requirements and lacked
an independent chair.[34]
In its submission to the Senate Finance and Public Administration Committee,
the Department of Agriculture and Water Resources asserted that ‘the merging of
the NRAC and the AIAC reduces duplication yet maintains the quality of
information and advice provided to the Minister...on issues affecting the
portfolio’.[35]
Abolition of the APVMA Advisory Board
Section 14 of the Agricultural and
Veterinary Chemicals (Administration) Act 1992 established the APVMA
Advisory Board, whose role is:
...to provide advice and make
recommendations to the CEO in relation to the performance of a function or the
exercise of a power of the APVMA. The advisory board does not have
decision-making power, but assists to inform the CEO on strategic matters and
provides an expert consultative mechanism. The CEO is responsible for the
governance and management of the authority, including the performance of its
functions and the exercise of its powers.[36]
The APVMA Advisory Board may
consist of up to nine part-time members. When appointing members the Minister
of Agriculture must ensure that:
- two Board members have experience in the regulation, under state or
territory law, of chemical products
- one Board member has experience in the agricultural chemical industry
- one Board member has experience in the veterinary chemical industry
- one Board member has experience in primary production
- one Board member has experience in environmental toxicology, including
knowledge of the effect of chemicals in ecosystems
- one Board member has experience in protecting consumer interests
- one Board member has experience in public health and occupational
health and safety and
- if the Minister considers it necessary—one Board member has experience
in a field relevant to the APVMA’s functions.[37]
As part of its goal to rationalise government bodies, the
National Commission of Audit recommended that the APVMA Advisory Board be
abolished.[38]
The Government agreed with this recommendation, arguing that other consultative
mechanisms available under the APVMA’s legislation would be ‘more responsive
and cost-effective’ than the continuation of the Advisory Board.[39]
The Explanatory Memorandum notes that the APVMA will still ‘have a range of
communication mechanisms in place that allow stakeholders to present their
views on matters of chemical regulation’.[40]
Mr Fitzgibbon reportedly criticised the decision to
abolish the Board, describing it as ‘another blow to Australia’s effort to
protect its reputation as a provider of clean, green, safe and high quality
food’.[41]
However, the Chief Executive of Animal Medicines Australia, Duncan Bremner has
argued that the APVMA Advisory Board ‘had been redundant since its governance
role was transferred to the minister several years ago’ and that government
funding was better spent ‘employing direct expert engagement when required’.[42]
Key issues
relating to new provisions
Farm Household
Support – Delegation of rule-making power
Item 28 in Part 1 of Schedule 1 amends the Farm Household
Support Act 2014 to remove the ability for the Secretary to delegate the
power to make Secretary’s Rules under section 106 of that Act. This will means
that only the Secretary will be able to exercise the power to set the
Secretary’s Rules. This responds to concerns raised by the Senate Standing
Committee on Regulations and Ordinances in September 2014.[43]
Abolition
of the Statutory Fishing Rights Allocation Review Panel
Items 33 to 52 of Schedule 1 amend the Fisheries
Management Act 1991 (Fisheries Act). Relevantly item 47 abolishes
the Statutory Fishing Rights Allocation Review Panel (the Panel).
Section 124 of the Fisheries Act established the
independent Panel, whose role is to review decisions made by the Australian
Fisheries Management Authority (AFMA) or a Joint Commonwealth-state fisheries Authority
relating to the provisional allocation of statutory fishing rights (SFR) under
a plan of management (except when the rights have been allocated as a result of
an auction or tender).[44]
According to the Explanatory Memorandum, the Panel was
established to review the merits of the administrative decisions under the Fisheries
Act during a period of significant reform, including the allocation of SFR.[45]
The Panel’s role in reviewing the allocation of SFR has diminished with most
SFR grant processes now complete.[46]
The Panel was scheduled to be abolished in the 2015–16
Budget.[47]
The Explanatory Memorandum of the Legislation Amendment Bill notes that the review
functions of the Panel will be transferred to the Administrative Appeals
Tribunal.[48]
In addition, in the first instance, requests may be made to AFMA to reconsider
decisions relating to the allocation of statutory fishing rights.[49]
Tabling of
certain documents in parliament
Part 2 of Schedule 1 removes the requirement that certain
documents, such as funding contracts, financial and other reports, be tabled in
Parliament from the Australian
Meat and Live-stock Industry Act 1997, Dairy Produce Act
1986, Forestry
Marketing and Research and Development Services Act 2007 and Sugar Research and
Development Services Act 2013.
Tabling of live export funding
agreements and annual report
Item 58 of Schedule 1 to the Legislation Amendment
Bill repeals Division 4 of Part 3 of the Australian Meat and Live-stock
Industry Act. That Division contains four provisions—sections 68A to
68D—and applies if the Minister enters into a funding agreement with the Australian
Livestock Export Corporation Limited (LiveCorp)[50]
to pay that body amounts received by the Commonwealth under the Primary Industries
(Customs) Charges Act 1999 from exporters of cattle, sheep and goats.[51]
If such an agreement is entered into, the Agriculture Minister is required to
table a copy of the agreement, and any variations to the agreement, in both
Houses of Parliament within 14 sitting days of the agreement being entered into
or varied (section 68B).[52]
As soon as practicable after the end of each financial
year, the Minister is also required to table a report in both Houses of
Parliament that provides details of the amount of funding provided to LiveCorp
under the funding agreement and advises whether the Minister is satisfied that
the expenditure of those funds by LiveCorp complies with the terms of the
funding agreement (section 68C).[53]
The Minister is also required to table annual reports
provided by LiveCorp as soon as practicable after that report is received by
the Minister (section 68D).[54]
Sections 68A to 68D were inserted into the Australian
Meat and Live-stock Industry Act in 2004, in response to recommendations of
the Senate Rural and Regional Affairs and Transport Legislation Committee.[55]
The recommendations aimed ‘to tighten the accountability arrangements for the
livestock export industry’.[56]
The Committee stated:
Finally, the Committee notes the evidence recommending that
LiveCorp be open and accountable for their activities. The Committee shares the
view that the industry’s transparency and accountability will be critical to
any future improvement of the industry’s image in the wake of the Cormo
Express incident and the Keniry review ...
While the Committee acknowledges that the terms of the draft
Statutory Funding Agreement make provision for the Minister to receive a
comprehensive annual report, there is no requirement for the Minister to table
the report in parliament. The Committee is of the view that for the industry to
be properly accountable to the parliament and the Australian people there
should not only be a requirement to table the annual report but also a
requirement for the Minister to provide a statement to the parliament outlining
LiveCorp’s compliance with the provisions of the statutory funding agreement on
an annual basis.[57]
Item 58 will remove sections 68A to 68D from the Australian
Meat and Live-stock Industry Act. If this amendment is made, the Act will
not impose any reporting requirements on LiveCorp. As a company limited by
guarantee, LiveCorp is required to prepare annual financial reports under item
3 of the table in section 285A of the Corporations Act
2001.
Those requirements are:
- to
prepare a financial report
- to
prepare a directors report—although it is less detailed than that required of
other companies
- to
have the financial report audited and
- to
give reports to any member who elects to receive them.
In addition, it is required to hold an annual general
meeting.
The current funding agreement between the Government and LiveCorp
requires LiveCorp to provide the Minister with Annual Reports for tabling in
Parliament at the same time that the Corporations Act requires an annual
report to be given to members.[58]
That agreement, which continues to apply to LiveCorp, was intended to operate
from 2010 to 2014.[59]
The Department advises that negotiations on a new funding agreement will
commence in 2016–17.[60]
If the amendments in item 58 are made, LiveCorp will have
a statutory duty under the Corporations Act to provide annual financial
reports to its members. It is not known whether the requirement in the
current funding agreement to provide this report to the Minister will be replicated
in the new agreement. It appears that LiveCorp would not be under a legislative
obligation to make its annual financial report or funding agreement (or
variations to it) public. In addition, there would be no requirement to bring
these documents to the attention of the Parliament through tabling, which is
one of the principal means by which the Parliament informs itself in relation
to public affairs.[61]
Dairy
Produce Act
Items 59 to 64 of Schedule 1 to the Legislation
Amendment Bill amend reporting requirements in the Dairy Produce Act.
Section 5 of the Dairy Produce Act allows the Agriculture
Minister to enter into a funding contract with Dairy Australia (the industry
services body declared under section 7) to provide funding received by the
Commonwealth in relation to dairy products under the Primary Industries
(Excise) Levies Act 1999 and ‘matching payments’ determined under the Dairy
Produce Act. If such a funding contract is entered into, the Minister is
currently required to table a copy of the contract, and any variations to the
contract, in both Houses of Parliament (subsections 5(6) and (7) of the Dairy
Produce Act). These tabling requirements would be removed by item 59
of Schedule 1 to the Bill.
As with LiveCorp, Dairy Australia is an industry-owned
company limited by guarantee and is therefore required to comply with reporting
requirements under the Corporations Act.[62]
This includes a requirement to prepare an annual financial report.[63]
Currently, Dairy Australia is required to provide this report to the Minister who
is then required to table it in each House of Parliament within 14 sitting days
(section 13 of the Dairy Produce Act). Item 61 of Schedule 1
to the Legislation Amendment Bill would remove the requirement for the Minister
to table the report in Parliament.
Section 14 of the Dairy Produce Act requires the
Minister to table reports covering each financial year. Each report is required
to set out the amount of the levy collected by the Commonwealth in relation to
dairy products under the Primary Industries (Excise) Levies Act and a
statement by the Minister as to whether he or she is satisfied that Dairy
Australia has spent the money received from the Commonwealth in accordance with
the funding contract. Section 14 will be removed from the Dairy Produce Act
by item 62 of Schedule 1 to the Legislation Amendment Bill.
Schedule 2 of the Dairy Produce Act provides a
framework for the Dairy Industry Adjustment Program (DAIP), which aimed to
assist the dairy industry and dairy communities adjust to deregulation.[64]
It established the Dairy Structural Adjustment Fund (DSAF), to be administered
by Dairy Australia.[65]
Clause 79C of Schedule 2 to the Dairy Produce Act requires Dairy
Australia to give the Minister a report on the administration of the DSAF for
each financial year and requires the Minister to table that report in
Parliament within 15 sitting days of receiving it. Item 64 of Schedule 1
to the Legislation Amendment Bill will remove the requirement for the Minister
to table this report in Parliament. The Explanatory Memorandum to the Bill
states that ‘the report is no longer produced as the DSAF wound up in July
2009’ and any administrative matters relating to the DSAF are now handled by
the Department’.[66]
If this is the case, it is not clear why the requirement for the report to be
provided to the Minister is not being removed from the Dairy Produce Act,
along with the requirement to table the report.
If the amendments proposed in items 59 to 64 are made, Dairy
Australia will have a statutory duty under the Corporations Act to
provide annual financial reports to its members and an obligation under the Dairy
Produce Act to provide that report to the Minister. It appears that Dairy
Australia would not be under a legislative obligation to make its annual
financial report or funding agreement (or variations to it) public or bring
these documents to the attention of the Parliament through tabling.
Forestry
Marketing and Research and Development Services Act
Section 8 of the Forestry Marketing and Research and
Development Services Act (Forestry Act) allows the Agriculture
Minister to enter into a funding contract with Forest and Wood Products
Australia (FWPA, which is the industry services body declared under section 11)
to provide funding received by the Commonwealth, primarily from levies and
charges relating to forestry collected under the Primary Industries (Customs)
Charges Act and the Primary Industries (Excise) Levies Act and
‘matching payments’ determined under the Forestry Act. If such a funding
contract is entered into, the Minister is currently required to table a copy of
the contract, and any variations to the contract, in both Houses of Parliament
(subsections 8(6) and (7) of the Forestry Act). These requirements would
be removed by item 65 of Schedule 1 to the Bill.
As with LiveCorp and Dairy Australia, FWPA is an industry-owned
company limited by guarantee and is therefore required to comply with reporting
requirements under the Corporations Act.[67]
There are no requirements in the Corporations Act that would compel FWPA
to make funding agreements with the Commonwealth public or to table these
documents in Parliament.
Sugar
Research and Development Services Act
Section 6 of the Sugar Research and Development
Services Act (Sugar Act) allows the Agriculture Minister to enter into a
funding contract with Sugar Research Australia Limited (SRA, which is the
industry services body declared under section 9) to provide funding received by
the Commonwealth as levies relating to sugar cane collected under the Primary
Industries (Excise) Levies Act and the Primary Industries
Levies and Charges Collection Act 1991, as well as ‘matching payments’
determined under the Sugar Act. If such a funding contract is entered
into, the Minister is currently required to table a copy of the contract, and
any variations to the contract, in both Houses of Parliament (subsections 6(6)
and (7) of the Sugar Act). These tabling requirements would be removed
by item 66 of Schedule 1 to the Bill.
As with LiveCorp, Dairy Australia and FWPA, SRA is an
industry-owned company limited by guarantee and is therefore required to comply
with reporting requirements under the Corporations Act.[68]
There are no requirements in the Corporations Act that would compel SRA
to make funding agreements with the Commonwealth public or to table these
documents in Parliament.
Repeal of various
Acts
In addition to the Acts that were proposed to be repealed
by the Spring 2015 Repeal Bill (outlined above), Part 1 of Schedule 2 repeals a
number of other Acts that are suggested to be redundant or spent. The Quarantine
(Validation of Fees) Act 1985, for example (repealed by item 9 of
Schedule 2 to the Legislation Amendment Bill), relates to the Quarantine Act
1908, which is no longer in force. Similarly, the Export Inspection
Charges Collection Act 1985, Export Inspection (Establishment
Registration Charges) Act 1985, Export Inspection (Quantity Charge) Act
1985 and Export Inspection (Service Charge) Act 1985 (repealed by items
3 to 6 of Schedule 2) have been superseded by the Export Charges
(Collection) Act 2015, Export Charges (Imposition—General) Act 2015,
Export Charges (Imposition—Excise) Act 2015 and Export Charges
(Imposition—Customs) Act 2015.
Excise
Levies Legislation Amendment (Honey) Bill 2016
The National Residue Survey Levy and a honey levy must be
paid on the sale of honey in Australia.[69]
However, neither levy is payable if the buyer gives the seller a certificate indicating
that the buyer intends to export the honey.[70]
According to the Explanatory Memorandum to the Honey Bill, participants in the
honey industry no longer issue, receive or rely upon these certificates.[71]
Items 2 and 4 of the Honey Bill will remove the requirement for such a
certificate to be provided by the buyer under both the National Residue
Survey (Excise) Levy Act 1998 and the Primary Industries
(Excise) Levies Act 1999. Items 1 and 3 make consequential
amendments.
Concluding comments
The Legislation Amendment Bill replicates controversial
provisions from the Spring 2015 Repeal Bill to abolish the National Rural
Advisory Council and the APMVA Advisory Board. It also removes reporting and
tabling requirements relating to Commonwealth funding agreements with industry-owned
rural research and development corporations, including the live export research
and marketing body, LiveCorp. Given the political sensitivity of live export
and concerns with the industry’s transparency and accountability, it could be
expected that some members of the public and politicians might be uneasy with
reduced reporting and tabling requirements. As mentioned above, the Department
of Agriculture and Water Resources is currently negotiating a new funding
agreement with LiveCorp. There will be no requirement to make this funding
agreement public if the amendments proposed in Part 2 of Schedule 1 to the Bill
are enacted.
[1]. Parliament
of Australia, ‘Omnibus
Repeal Day (Spring 2015) Bill 2015 homepage’, Australian Parliament
website.
[2]. Primary Industries
(Excise) Levies Act 1999.
[3]. National Residue
Survey (Excise) Levy Act 1998.
[4]. Parliament
of Australia, ‘Regulatory
Powers (Standardisation Reform) Bill 2016 homepage’, Australian Parliament
website. For the Bills digest to the Regulatory Powers (Standardisation Reform)
Bill 2016 see C Raymond, Regulatory
Powers (Standardisation Reform) Bill 2016, Bills digest, 42, 2016–17,
Parliamentary Library, Canberra, 2016.
[5]. Parliament
of Australia, ‘Omnibus
Repeal Day (Autumn 2014) Bill 2014 homepage’, Australian Parliament
website. The other two Bills were the Amending
Acts 1901 to 1969 Repeal Bill 2014 and the Statute
Law Review Bill (No. 1) 2014 Bill; Australian Government, ‘2014
Autumn repeal day’, Cutting Red Tape website.
[6]. Parliament
of Australia, ‘Omnibus
Repeal Day (Spring 2014) Bill 2014 homepage’, Australian Parliament
website; Parliament of Australia, ‘Omnibus
Repeal Day (Autumn 2015) Bill 2015 homepage’, Australian Parliament
website; and Parliament of Australia, ‘Omnibus
Repeal Day (Spring 2015) Bill 2015 homepage’, Australian Parliament
website.
[7]. L
Ferris, Omnibus
Repeal Day (Spring 2015) Bill 2015, Bills digest, 81, 2015–16,
Parliamentary Library, Canberra, 2016. Some of the information in this Digest
is taken from Ms Ferris’s Digest on the Omnibus Repeal Day Bill.
[8]. P
Hendy, ‘Spent
rules have no place in an innovation nation’, The Australian, 4
February 2016, p. 12.
[9]. Ibid.
[10]. Ibid.
[11]. Department
of Agriculture and Water Resources (DAWR), ‘National Rural
Advisory Council’, DAWR website, last reviewed 2 November 2016.
[12]. Ibid.
[13]. Senate
Standing Committee for Selection of Bills, Report,
10, 2016, The Senate, 1 December 2016.
[14]. Senate
Finance and Public Administration Legislation Committee, Omnibus
Repeal Day (Spring 2015) Bill 2015, Parliament of Australia website.
[15]. Senate
Finance and Public Administration Legislation Committee, Omnibus
Repeal Day (Spring 2015) Bill 2015 [Provisions], The Senate, Canberra,
2016, p. 6.
[16]. Ibid.,
p. 7.
[17]. Senate
Standing Committee for the Scrutiny of Bills, Alert
digest, 13, 2015, The Senate, 25 November 2015, pp. 30–32.
[18]. M
Dreyfus, ‘Second
reading speech: Omnibus Repeal Day (Spring 2015) Bill 2015’, House of
Representatives, Debates, 1 December 2015, p. 14373.
[19]. Ibid.
See also J Fitzgibbon, ‘Second
reading speech: Omnibus Repeal Day (Spring 2015) Bill 2015’, House of
Representatives, Debates, 2 December 2015, pp. 14472–14473;
and A Vidot, ‘Animal
Medicines Australia unconcerned by decision to scrap chemical regulator
advisory board’, ABC Rural, (online edition), 29 September 2015.
Further information is available at Ferris, Omnibus Repeal Day (Spring 2015)
Bill 2015, Bills digest, op. cit.
[20]. A
Vidot, ‘Animal
Medicines Australia unconcerned by decision to scrap chemical regulator advisory
board’, op. cit.
[21]. Explanatory
Memorandum, Excise Levies Legislation Amendment (Honey) Bill 2016 (the
Honey Bill), p. 2.
[22]. Ibid.,
p. 3; Explanatory
Memorandum Agriculture and Water Resources Legislation Amendment Bill 2016
(the Legislation Amendment Bill), p. 4.
[23]. The
Statements of Compatibility with Human Rights can be found at pages 27–32 of
the Explanatory Memorandum to the Legislation Amendment Bill and pages 5–6 of
the Explanatory Memorandum to the Honey Bill.
[24]. Parliamentary
Joint Committee on Human Rights, Thirty-first
Report of the 44th Parliament, The Senate, Canberra, 24 November 2015,
pp. 4–11.
[25]. Ferris,
Omnibus Repeal Day (Spring 2015) Bill 2015, Bills digest, op. cit.
[26]. Explanatory
Memorandum, Legislation Amendment Bill, op. cit., p. 24.
[27]. National
Rural Advisory Council (NRAC), Annual
report 2014–15, NRAC, Canberra, 30 June 2015, p. 2.
[28]. Ibid.
[29]. National
Commission of Audit (NCoA), Towards
responsible government—phase 2 of the report of the National Commission of
Audit, NCoA, Canberra, 2014, p. 90.
[30]. M
Cormann (Minister for Finance), Smaller
government—towards a sustainable future, Ministerial paper, Minister
for Finance, Canberra, December 2014, p. 9.
[31]. Explanatory
Memorandum, Legislation Amendment Bill, op. cit., p. 24.
[32]. Ibid.
[33]. Department of Finance
(DoF), ‘Agricultural Industry
Advisory Council’, DoF website, 8 February 2017.
[34]. J
Fitzgibbon, ‘Second
reading speech: Omnibus Repeal Day (Spring 2015) Bill 2015’, op. cit., p.
14473.
[35]. Department
of Agriculture and Water Resources, Submission
to the Senate Finance and Public Administration Legislation Committee, Inquiry
into the Omnibus Repeal Day (Spring 2015) Bill 2015, 16 December 2015, p.
2.
[36]. Australian
Pesticides and Veterinary Medicine Authority (APVMA), ‘Advisory
Board’, APVMA website, 6 November 2015.
[37]. Subsection
17(2) of the Agricultural
and Veterinary Chemicals (Administration) Act 1992.
[38]. National
Commission of Audit (NCoA), Towards
responsible government—phase 2 of the report of the National Commission of
Audit, op. cit., p. 90.
[39]. PM&C,
The
Australian Government Spring Repeal Day November 2015, op. cit., p. 26.
[40]. More
information on these mechanisms is set out at page 6 of the Explanatory Memorandum
to the Legislation Amendment Bill.
[41]. A
Vidot, ‘Animal
Medicines Australia unconcerned by decision to scrap chemical regulator
advisory board’, op. cit.
[42]. Ibid.
[43]. Senate
Standing Committee on Regulations and Ordinances, Report
on the work of the committee in 2014–15, 120, July 2014–June
2015, The Senate, 2016, p.31.
[44]. DAWR,
‘Statutory Fishing
Rights Allocation Review Panel (SFRARP)’, DAWR website, last reviewed 2
November 2015.
[45]. Explanatory
Memorandum, Legislation Amendment Bill, op. cit., p. 13.
[46]. Ibid.
[47]. Australian
Government, Budget
measures: budget paper no. 2: 2015–16, p. 56; and M Cormann (Minister
for Finance), Smaller
government—transforming the public sector, media release, 11 May 2015,
p. 4.
[48]. Explanatory
Memorandum, Legislation Amendment Bill, op. cit., p. 13.
[49]. Ibid.,
p. 14. See also items 38 and 48 of the Bill, which amend sections 23 and
165 of the Fisheries Management Act 1991.
[50]. LiveCorp
is the declared livestock export marketing body and the declared livestock
export research body under subsections 60(3) and (3A) of the Australian Meat
and Live-stock Industry Act. See Australian Meat and
Live-stock Industry (Live-stock Export Marketing Body and Live-stock Export
Research Body) Declaration 2004.
[51]. See
sections 64A and 64B of the Australian Meat and
Live-stock Industry Act 1997 and clause 3 of Schedule 2 and clauses 3
to 5 of Schedule 11 to the Primary Industries
(Customs) Charges Act 1999.
[52]. The
current funding agreement with LiveCorp was tabled in both Houses on 12
September 2011. See: Australia,
House of Representatives, Votes
and proceedings, 64, 12 September 2011, p. 864; and Australia,
Senate, Journals,
49, 12 September 2011, p. 1415.
[53]. The
latest report tabled relates to the 2014–15 financial year. It was tabled in
both Houses on 2 February 2016. See: Australia, House of Representatives, Votes
and proceedings, 167, 2 February 2016, p. 1829; and Australia, Senate, Journals,
135, 2 February 2016, p. 3632.
[54]. The
latest LiveCorp Annual Report tabled in Parliament was the 2014-15 report,
which was tabled on 2 February 2016. See: Australia, House of Representatives, Votes
and proceedings, 167, 2 February 2016, p. 1829; and Australia, Senate, Journals,
135, 2 February 2016, p. 3632. The 2015–16 report is available on
LiveCorp’s website, but has not yet been tabled. See: Australian Livestock
Export Corporation Limited, Annual
report 2015–16, North Sydney, 2016.
[55]. Senate
Rural and Regional Affairs and Transport Legislation Committee, Agriculture,
Fisheries and Forestry Legislation Amendment Bill (No. 2) 2004, The
Senate, Canberra, September 2004, p. 18. The provisions were inserted by the Agriculture,
Fisheries and Forestry Legislation Amendment Act (No. 2) 2004.
[56]. W
Truss, ‘Second
reading speech: Agriculture, Fisheries and Forestry Legislation Amendment Bill
(No. 2) 2004’, House of Representatives, Debates, 17 November 2004, p.
12.
[57]. Senate
Rural and Regional Affairs and Transport Legislation Committee, Agriculture,
Fisheries and Forestry Legislation Amendment Bill (No. 2) 2004, The
Senate, Canberra, September 2004, pp. 17–18.
[58]. Department
of Agriculture, Fisheries and Forestry, Funding
agreement 2010–2014 between the Commonwealth of Australia represented by the
Commonwealth Department of Agriculture, Fisheries and Forestry and Australian
Livestock Export Corporation Limited, 2010.
[59]. Ibid.,
clause 2. See also: Australian Livestock Export Corporation Limited (LiveCorp), Strategic
plan 2016–2020, North Sydney, 2016, p. 28.
[60]. Australian
Livestock Export Corporation Limited, Annual
report 2015–16, op. cit., p.28.
[61]. H
Evans, Odgers'
Australian Senate Practice, 14th edn, The Senate, Canberra, 2016, p.
577.
[62]. Dairy
Australia, Annual
report 2015–16, Dairy Australia website, Melbourne, 2016, p. 60.
[63]. Section
292 of the Corporations
Act 2001 (Cth).
[64]. Clause
1 of Schedule 2 to the Dairy Produce Act.
[65]. Clause
77 of Schedule 2 to the Dairy Produce Act.
[66]. Explanatory
Memorandum, Legislation Amendment Bill, op. cit., p. 20.
[67]. Forest
and Wood Products Australia (FWPA), Annual
report 2015–16, FWPA website, Melbourne, 2016, p. 8.
[68]. Sugar
Research Australia (SRA), Annual
report 2015–16, SRA website, Brisbane, 2016, p. 4.
[69]. The
National Residue Survey tests ‘animal and plant products for pesticide and
veterinary medicine residues, and environmental contaminants’: Department of
Agriculture and Water Resources (DAWR), ‘National Residue
Survey’, DAWR website, 15 November 2016. Participating industries fund the
Survey through statutory levies.
[70]. Clause
2 of Schedule 7 to the National Residue
Survey (Excise) Levy Act 1998 and clause 2 of Schedule 14 to the Primary Industries
(Excise) Levies Act 1999.
[71]. Explanatory
Memorandum, Honey Bill, op. cit., p. 2.
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