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Primary Industries and Energy Research and Development Amendment Bill 2001

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1998-1999-2000-2001

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

HOUSE OF REPRESENTATIVE S

 

 

 

PRIMARY INDUSTRIES AND ENERGY RESEARCH AND DEVELOPMENT AMENDMENT BILL 2001

 

 

 

 

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of the Minister for Forestry and Conservation , The Hon Wilson Tuckey MP )



 

PRIMARY INDUSTRIES AND ENERGY RESEARCH AND DEVELOPMENT AMENDMENT BILL 2001

 

OUTLINE

 

The purpose of the Primary Industries and Energy Research and Development Amendment Bill 2001 is to increase the Commonwealth contribution to the Forest and Wood Products Research and Development Corporation (FWPRDC) to match industry’s R&D levy contribution, dollar for dollar up to 0.5% of gross value for production.  

 

When the FWPRDC was established in 1994, the funding arrangement specified by amendment to the Primary Industries and Energy Research and Development Act 1989 (PIERD Act) was $1 from the Commonwealth for every $2 from industry.   This differed from all other R&D Corporations under the PIERD Act to which a levy was attached.  For such R&D Corporations, the Government provides $1 for every $1 from industry.

 

Financial impact statement

 

T he Bill provides for the Commonwealth to match industry levy contributions to forest R&D dollar for dollar.  The actual level will vary according to the industry's volume of production on which levy is paid and the rate of levy applied to that production.  Based on levy contributions over recent years, this will involve additional Commonwealth expenditure of about $1.6 million per annum.

Regulation Impact Statement

 

Not required, as the measure increases the Commonwealth contribution to an existing industry contribution.  The effect of the Bill is to increase R&D, innovation and competitiveness in the forest sector and reduce funding pressure on industry.



NOTES ON CLAUSES

 

Clause 1: Short Title

 

This clause provides for the Act to be called the Primary Industries and Energy Research and Development Amendment Act 2001 .

 

Clause 2: Commencement

 

This clause provides for the Act to commence on 1 July 2001.  In conjunction with items 3 and 6 of the Schedule, it provides that dollar for dollar Commonwealth matching of industry contributions will commence on 1 July 2001.

 

Clause 3: Schedule(s)

 

This clause provides for the items in the Schedule to have effect.

 

Schedule 1: Primary Industries and Energy Research and Development Act 1989

 

Item 1: Subsection 31(1)

 

This item deletes a reference to subsection 31(4).

 

Item 2: Subsection 31(4)

 

This item repeals subsection 31(4), with the result that the Government matching payments to the FWPRDC will be at the same rate as that provided to other R&D Corporations under Subsection 31(1), that is, dollar for dollar.

 

Item 3: Saving

 

This item ensures that the repeal of subsection 31(4) does not have the effect of extending dollar for dollar matching payments of levies and charges collected and paid to the FWPRDC before 1 July 2001.

 

Item 4: Subsection 32(1)

 

This item deletes a reference to subsection 32(4)

 

Item 5: Subsection 32(4)

 

This item repeals subsection 32(4), removing the ceiling for Government payments to the FWPRDC of 0.25% of the gross value of production.  This results in the FWPRDC having the same ceiling as other R&D Corporations under subsection 32(1), that is, 0.5% of the gross value of production.

 

Item 6: Application

 

This item provides for the new ceiling provided by the repeal of subsection 32(4) to apply from the financial year commencing 1 July 2001.