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Prawn Export Promotion Bill 1994 [and] Prawn Export Charge Bill 1994 [and] Prawn Boat Levy Bill 1994
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BILLS DIGEST
Nos. 25 - 27. 1995
Prawn Export Promotion Bill 1994 Prawn Export Charge Bill 1994 Prawn Boat Levy Bill 1994
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subsequent amendments.
Prawn Export Promotion Bill 1994
Bill Introduced: 7 December 1994 House: House of Representatives Portfolio: Primary Industries and Energy Commencement: On the day on which the Prawn Boat Levy Act 1994 commences. That Act will commence on a date fixed by Proclamation, but no later than 1 July 1995.
Purpose To provide for the collection and distribution of funds collected under the Prawn Boat Levy Act 1994 and the Prawn Export Charge Act 1994..
Background
(1) Overview ofAustralian Fisheries Production and Trade
While Australia's fishing zone is the world's third largest it ranks only fiftieth in terms of world fisheries production .' Australian fisheries production in 1993-94 is estimated to total 203.4 kilotonnes, 29 kilotonnes less than for 1992-93 and 43.3 kilotonnes less than for 1991-92.2 The gross value of Australian fisheries
production in 1993-94 is estimated to have been $1606 million, representing a 7% increase in value over the previous year. 3 Western Australian fisheries provided approximately one-third o£lhe total value of fisheries production ($497.825 million), principally through rock lobster and pearl production.4 Rock lobster was the largest revenue earner, contributing approximately 26% ($421
million) of the total value of fisheries production.'
The value offisheries exports in 1993-94 is estimated to total $1.24 billion, approximately 14% higher than for 1992-93.6 Rock lobster was the highest export earner ($468 million), followed by prawns ($197 million) and abalone ($187 million)7 Japan is the main export market for Australian fisheries
products, with total sales valued at $496 million (approximately 45% of total exports) in 1993-94.'
Imports of fisheries products were valued at approximately $586 million in 1993 94, representing an 11% increase over the previous year.9 Imports of prawns was the major seafood import. Approximately 12 870 tonnes of prawns, valued at $101 million, were imported in 1993-94. 10 Thailand was the largest supplier of fisheries products to Australia. In 1993-94, approximately 22 959 tonnes of fisheries products, valued at $130.156 million, were imported from Thailand. H
(2) Overview of Australian Prawn Industry
There are 13 species of prawn fished commercially in Australia. These species are the royal red prawn, greasyback prawn, blue endeavour prawn, red endeavour prawn, school prawn, brown tiger prawn, grooved tiger prawn, white banana prawn, red·legged banana prawn, western king prawn, red spot king prawn, eastern king prawn and giant tiger prawn.
The gross value of Australian prawn production is estimated to total $278.107 million (20 251 tonnes) in 1993-94, compared to $282.403 million (24 440 tonnes) in 1992-93. 12 Statistics on estimated Australian prawn production for 1993·94 by jurisdiction are set out below.I'
Value ($m) Quantity (tonnes)
NSW $14.264
1301
VIC $11.000
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QLD $88.505
6219
WA $40.255
3497
SA $24.132
1919
TAS NT C'WLTH $110.940
7308
It can be seen from the above statistics that fisheries within Commonwealth jurisdiction produce the largest quantity of prawns. The Northern Prawn Fishery (NPF) is the principal prawn producing fishery under Commonwealth jurisdiction. The NPF extends from the Cape York Peninsula, QLD, in the east
to Cape Londonderry, WA, in the west. The NPF covers approximately 1 million square kilometres. The NPF produced an estimated catch of 5789 tonnes (valued at $98.812 million) in 1993-94, compared to a catch of7781 tonnes (valued at $100.354 million) in 1992-93. 14 There are nine species of prawn caught in the NPF, however, three species (the banana, tiger and endeavour prawn) account for approximately 80% of the fisheries catch.
Management policies in the NPF were first introduced in the 1970s. The current management scheme incorporates various regulations, including:
⢠seasonal closures; ⢠daylight trawling bans; ⢠boat replacement rules; ⢠gear restrictions; and
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⢠a compulsory pro·rata surrender of certain licenses to reduce the number of boats operating in the fishery. 15
In respect of the compulsory surrender of fishing licenses in the NPF, the Bureau of Resource Sciences (BRS), in its Fishery Status Reports 1993, reported that to improve the economic and biological viability of the NPF the fishery underwent a restructuring intended to reduce fishing capacity by approximately
40% from the 1990 level. A total of 127 vessels fished for prawns in the NPF in 1993, compared to a total of 200 vessels in 1990. 16 The BRS, in its Fishery Status Reports 1993, reported that the NPF is commercially fully exploited.
The other major prawn fishery under Commonwealth jurisdiction is the Torres Strait Prawn Fishery (TSPF). The Torres Strait is located between the tip of Cape York, Qld, and Papua New Guinea. The TSPF produced an estimated catch of 1023 tonnes (valued at $9.860 million) in 1993-94, compared to a catch of 1622
(valued at $13.168 million) in 1992-93."
Aquaculture production of prawns-has increased markedly in recent years. Approximately 1403 tonnes of prawns (valued at $21.106 million) were produced in 1993-94. 18 This compares with 1128 tonnes (valued at $14.769 million) for 1992-93 and 907 tonnes (valued at $10.760 million) for 1991-92."
(3) Prawn Promotion - Legislative Package
This Bill, together with the Prawn Boat Levy Bill 1994 and the Prawn Export Charge Bill 1994 gives effect to an announcement of 13 July 1994 by the Minister for Resources, Hon. David Beddall, establishing arrangements for the funding of a strategy for the promotion of sea·caught prawns.20
The rationale given by the Government in the Explanatory Memorandum for the proposed arrangements is an erosion of the Australian prawn industry's market share and earnings through direct competition in overseas markets £rom aquacultured prawns. 21 The aims of the proposed arrangements are to facilitate the opening up of new niche markets and the consolidation of existing ones 22
The legislative arrangements proposed by this Bill, the Prawn Boat Levy Bill 1994 and Prawn Export Charge Bill 1994 follow the standard format for primary industries levies and charges legislation, that is, an administrative Act an imposition Actis and a collection Act.
The levy and charge provided for by the Prawn Boat Levy Bill 1994 and Prawn Export Charge Bill 1994 are being imposed by the Commonwealth at the request of the Australian Prawn Promotion Association. 23
Levies and charges cannot be consolidated into one Act because of section 55 of the Constitution, which provides:
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Laws imposing taxalum sludl deal only with the impositionoftaxation, and any provision dealing with any other matter shall be ofno effect.
Laws imposing taxation, except laws imposingduties ofcuswms or ofexcise, shall deal with one su.bject of taxation only; but laws imposing duties ofcustoms shall deal with duties ofcustoms only, and laws imposing du.ties ofexcise shall deal with duties ofexcise only.
Main Provisions
Clause 5 confers on the Fisheries Research and Development Corporation (FRDC) 24 the function of providing funds for approved prawn export promotion activities. An activity is only an approved prawn export promotion activity in the following circumstances:
⢠ifit relates to the promotion of the export of sea·caught prawns, parts of sea caught prawns, or sea·caught prawn products; ⢠ifit is consistent with FRDC research and development plans; and .⢠ifit has been approved by the relevant prescribed industry organisation.
The term "prescribed industry organisation" is defined by clause 6 to mean the Australian Prawn Promotion Association Limited, or a prescribed organisation by the regulations.
Clause 8 provides that amounts received by the Commonwealth under the PrawnBoat Leuy Act 1994 and Prawn Export Charge Act 1994 and as penalty payments under clause 17 are appropriated out of the Consolidated Revenue Fund to the FRDC.
The principal effect of clause 9 is to specify how levy/charge money may be used by the FRDC. Levy/charge money may be used by the FRDC only for the following purposes:
⢠approved prawn export promotion activities; ⢠meeting costs incurred by the Commonwealth in the collection and recovery of levy/charge money; ⢠meeting costs incurred by the FRDC in performing its prawn export promotion
function; and ⢠meeting the costs incurred by the prescribed industry organisation in doing anything for the purposes of this Act.
Clause 9 also provides that levy/charge money is not to be used by the FRDC in performing its prawn export promotion functions without the approval of the prescribed industry organisation.
Clause 10 provides that subject to subclause 10(3), levy/charge is due for payment as prescribed by the regulations. Subclause 10(3) provides that the charge imposed by the Prawn Export ChargeAct 1994 does not become due for
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payment unless the total net weight of the sea-caught prawns, parts and products exported during a year exceeds 5000 kilograms.
The principal effects of clause 15 are:
⢠to exempt exporters of sea-caught prawns, parts and products from liability to pay the charge under the Prawn Export Charge Act 1994if the total net weight of prawns, parts and products exported during a year is less than 5000 kilograms; and ⢠that the charge does not become due for payment unless the total net weight
exported is less than 5000 kilograms.
Clause 15 also provides that the above exemption will not apply where the total net weight exported exceeds 5000 kilograms.
Clause 16 prohibits the Commonwealth, when entering collection agreements with the States (the term "State" is defined to include the Northern Territory and Norfolk Island), from discriminating between States or parts of States, within the meaning of paragraph 51(ii) of the Constitution,2:'> or giving preference to one State or any part of a State over another State or part, within the meaning of section 99 of the Constitution.26
Clauses 17-20 are standard administrative provisions providing for a penalty for late payment of levy/charge, remission of penalty, recovery of levy/charge and refunding of overpaid amounts of levy/charge.
Under clause 26 a person dissatisfied with a relevant decision (i.e. a decision by the :Minister or authorised person refusing to remit the whole or part of a penalty) may ask the Minister to reconsider the decision. A request must be made within 28 days of the decision first coming to the notice of the person
making the request and include reasons for making the request. The Minister must, within 45 days of receiving the request, reconsider the decision and make a decision in substitution, whether in the same terms or not, or revoking the decision. The person requesting the review must be informed of the Minister's
decision, be provided with reasons for it, and informed that the decision is reviewable by the Administrative Appeals Tribunal.
Clause 28 provides that the Governor-General may make certain regulations, including regulations:
⢠in relation to the payment of levy/charge or amounts on account of levy/charge; ⢠requiring owners of commercial prawn boats, exporters of sea-caught prawns, parts or products, or any other prescribed persons, to make and keep accounts
and other records in respect of their boats, prawns, parts or products; and ⢠prescribing penalties, not exceeding 10 penalty units (currently $1000).
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Clause 29 provides that the regulations, subject to certain limitations, may empower the Minister to make orders with respect to any matter for which regulations have been. The limitations on the Minister's order making power include:
⢠a prohibition on making an order prescribing a penalty; ⢠orders are subject to disallowance by Parliament; and. ⢠subject to review by the Administrative Appeals Tribunal.
Endnotes
1. Bureau of Resource Sciences, Fishery Status Reports 1993, p. 1. 2. Australian Bureau of Agricultural and Resource Economics, Australian Commodities, Vol. I, No.3, September 1994, p. 403. 3. Australian Bureau of Agricultural and Resource Economics, Australian
Fisheries Statistics 1994, p. 4. 4. Ibid.
5. Ibid, p. 10
6. Ibid, p. 4.
7. Ibid., p. 5.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid., p. 46.
12. Ibid., pp. 9 and 10.
13. Ibid., p. 10.
14. Ibid., p. 18.
15. Australian Bureau of Agricultural and Resource Economics, Fisheries Surveys Report 1993, p. 11. 16. Bureau of Resource Sciences, Fishery Status Reports 1993, p. 11. 17. Australian Bureau of Agricultural and Resource Economics, Australian
Fisheries Statistics 1994, p. 18. 18. Ibid., p. 22.
19. Ibid., pp. 20 and 21. 20. Minister for Resources, Media Release, 13 July 1994. 21. Prawn Export Promotion Bill 1994, ExplanatoryMemorandum,p. 2. 22. Minister for Resources, Media Release, 13 July 1994.
23. Minister for Resources, Media Release, 8 December 1994. 24. The FRDC was established in 1991 under the Primary Industries and EnergyResearchand DevelopmentAct 1989. The objects of the FRDC are to provide for the funding and administration of research and
development with a view to:
⢠increasing the economic, environmental or social benefits to members of the Australian Fishing Industry and to the community generally by
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improving the production, processing, storage, transport or marketing offish and fishproducts; ⢠achieving the sustainable use and sustainable management of the Australian fish resource; ⢠making more effective use of the resources and skills available in the
community in general, and in the scientific community in particular; and ⢠improving accountability for expenditure on fisheries research and development.
The functions of the FRDC include to: ⢠investigate and evaluate the requirements for fisheries research and development and, on that basis, prepare a five-year research and development plan and review and revise that plan if required; ⢠prepare an annual operational plan for each financial year; ⢠co-ordinate or fund the carrying out of research and development
activities that are consistent with the annual operational; and ⢠facilitate the dissemination, adoption and commercialisation of the results of fisheries research and development.
25. Section 5l(ii) of the Constitution provides that 'The Parliament shall ... have power to make laws ... with respect to Taxation; but not as to discriminate between States or parts of States'. 26. Section 99 of the Constitution provides that 'The Commonwealth shall
not, by any law or regulation of trade, commerce, or revenue, give preference to one State or any part thereof over another State or any part thereof'.
Ian Ireland Bills Digest Service Parliamentary Research Service
5 January 1994
This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
© Commonwealth of Australia, 1995
Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.
Published by the Department of the Parliamentary Library, 1995.
7
Warning: This Digest is prepared for debate. It reflects the legislation as introduced and does not canvass
subsequent amendments.
Prawn Export Charge Bill 1994
Bill Introduced: 7 December 1994 House: House of Representatives Portfolio: Primary Industries and Energy Commencement: On the day on which the Prawn Boat Levy Act 1994 commences. That Act will commence on a date fixed by Proclamation, but no later than 1 July 1995.
Purpose To impose a charge on exports of sea-caught prawns and products to finance prawn export promotion activities.
Background The reader is referred to the Digest for the Prawn Export Promotion Bill 1994.
Main Provisions
Clause 4 imposes a charge on:
⢠sea-caught prawns; ⢠parts of sea-caught prawns; and ⢠sea-caught prawn products_
The rate of charge is a prescribed amount, not exceeding $0.10 per kilogram of the net weight of exported sea-caught prawns, parts of sea-caught prawns or sea caught prawn products (clause 5).
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The charge is payable by the exporter (clause 6).
CIause 7 provides that the Governor·Genel'al may make regulations prescribing matters required or allowed to be prescribed by this proposed Act. The Governor General may not prescribe a rate of charge unless he/she has taken into consideration any recommendations made to the :Minister by the prescribed industry organisation (Le. the Australian Prawn Promotion Association Limited,
or another prescribed organisation). In addition, a prescribed industry organisation is not to make a recommendation to the Minister relating to the rate of charge unless the recommendation was approved at the last AGM ofthat organisation.
Ian Ireland Bills Digest Service Parliamentary Research Service
19 December 1994
This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
© Commonwealth of Australia 1995
Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including infonnation storage and retrieval systems, without the prior written consent of the Parliamentary Library. other than by Members of the Australian Parliament in the course of their official duties_
Published by the Department of the Parliamentary Library, 1995.
2
Warning: This Digest is prepared for debate. It reflects the legislation as introduced and does not canvass
subsequent amendments.
Prawn Boat Levy Bill 1994
Bill Introduced: 7 December 1994 House: House of Representatives Portfolio: Primary Industries and Energy Commencement: On a date fixed by Proclamation, but no later than 1 July 1995
Purpose
To impose a levy on commercial prawn boats to finance prawn export promotion activities.
Background
The reader is referred to the Digest for the Prawn Export Promotion Bill 1994.
Main Provisions
The principal effect of clause 4 is to impose a levy on commercial prawn boats.
This levy is imposed in respect of a levy period (clause 5). The term "levy period" is defined by clause 5 to mean:
⢠if this proposed Act commences before 1 July 1995, the period starting at the commencement of this proposed Act and ending on 30 June 1995, and ⢠each financial year from 1 July 1995
Clause 6 deals with the amount oflevy. The amount of levy payable by a commercial prawn boat is a prescribed amount not exceeding:
⢠$75, in the case of a ship less than ten metres in length;
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⢠$150, in the case of a ship between ten and fifteen metres in length; ⢠$300, in the case of a ship between fifteen and eighteen metres; and ⢠$750, in the case of a ship over eighteen metres.
The levy is payable by the owner of the ship (clanse 7).
Clause 9 provides that the Governor·General may make regulations prescribing matters required or allowed to be prescribed by this proposed Act.
The Governor-General may not prescribe a rate of levy unless he/she has taken into consideration any recommendations made to the Minister by the prescribed industry organisation (i.e. the Australian Prawn Promotion Association Limited, or another prescribed organisation). In addition, a prescribed industry
organisation is not to make a recommendation to the Minister relating to the rate oflevy unless the recommendation was approved at the last AGM of that organisation.
Ian Ireland Bills Digest Service Parliamentary Research Service
20 December 1994
This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.
© Commonwealth of Australia, 1995
Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the
Australian Parliament in the course of their official duties.
Published by the Department of the Parliamentary Library, 1995.
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