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Thursday, 11 October 1984
Page: 1655


Senator WALSH (Minister for Resources and Energy)(3.13) —I move:

That the Bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows-

DAIRY PRODUCTS (EXPORT INSPECTION CHARGE) AMENDMENT BILL 1984

The purpose of this Bill is to amend charging procedures for export inspection to reflect changes to export inspection practices for dairy products that are to be introduced towards the end of this year or early in 1985. Establishments and goods prescribed under orders made under the Export Control Act 1982 will be categorised on the basis of product out-turn and the inspection intensity varied accordingly.

The new inspection procedures will replace on-line inspection during manufacture with a monitoring system involving sampling of the final product. One effect of these new inspection practices will be that a large quantity of dairy products will be exported without physical examination by the export inspection service being necessary. In particular, this will apply to goods produced at registered establishments with a record of good quality control performance. Another effect of the new practices will be that inspection effort should decrease as the new system is progressively developed. It is expected that this will be reflected in reduced costs of inspection services.

In summary, it is proposed to introduce substantial changes to export inspection that are designed to make better use of resources more closely attuned to industry needs. These new procedures have been developed in close association with the dairy industry.

The Dairy Products (Export Inspection Charge) Act 1982 and the associated collection Act need to be amended in light of these proposed changes to inspection practices. The Acts at this time provide that a charge is applied only to the product that is physically inspected. This Bill will amend the charge Act so that the dairy products in relation to which liability for the charge will arise will instead be those in respect of which an export permit is issued.

I now turn to the financial impact of the proposed legislation. The changes proposed are necessary to continue the recovery of 50 per cent of the costs of export inspection for dairy products following the introduction of orders made under the export control Act that will vary the method of inspection of dairy products. The changes will also allow charges to be set which reflect the differential inspection effort for each category of export establishment.

Without these amendments, there would be an expected loss in revenue to the Commonwealth, during the remainder of 1984-85, of approximately $260,000. This arises because costs of inspection could otherwise only be recouped in respect of the proportion of dairy products that was physically inspected and examined prior to export. I commend the Bill to honourable senators.

DAIRY PRODUCTS (EXPORT INSPECTION CHARGE) COLLECTION AMENDMENT BILL 1984

The purpose of this Bill is to amend export inspection charge collection procedures for dairy products to reflect changes to export inspection practices that are to be introduced towards the end of this year or early in 1985. The amendments contained in this Bill are complementary to those that have been proposed to the Dairy Products (Export Inspection Charge) Act 1982. The effect of this Bill will be to amend the Dairy Products (Export Inspection Charge) Collection Act 1982 so that not all dairy products being exported will have to be physically inspected and examined by an authorised officer for the purposes of the Act. The products for which the charge will be collected will instead be those for which an export permit is issued. I commend the Bill to honourable senators.

Debate (on motion by Senator Collard) adjourned.