1998-1999-2000

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

 

DAIRY INDUSTRY ADJUSTMENT BILL 2000

 

 

 

 

 

SUPPLEMENTARY EXPLANATORY MEMORANDUM

 

 

 

Amendments to be Moved on Behalf of the Government

 

 

 

 

 

 

 

 

 

 

 

 

(Circulated by Authority of the Minister for Agriculture, Fisheries and Forestry,

the Hon Warren Truss MP)

 

 

AMENDMENTS TO THE DAIRY INDUSTRY ADJUSTMENT BILL 2000

 

GENERAL OUTLINE

 

1.              The amendments to the Dairy Industry Adjustment Bill 2000 provide for the recognition of ownership of livestock of a partnership in relation to determination of essential capital contribution for the purposes of assessing claims for payment from the premium component.

 

2.              The amendments also provide for the adjustment of eligibility for payment rights where there were abnormal market milk pool distributions during the financial year 1998/99.

 

FINANCIAL IMPACT STATEMENT

 

3.         The proposed amendments to the Dairy Industry Adjustment Bill 2000 do not involve any additional expenditure by the Commonwealth or additional revenue to the Commonwealth.

 

NOTES ON CLAUSES

 

Amendment 1 Schedule 1, Item 17, page 9

 

4.              This clause inserts an additional explanatory note at the end of the definition of overall enterprise amount referring to the additional clause 30A.

 

Amendment 2 Schedule 1, Item 17, page 9

 

5.              This clause inserts an additional explanatory note at the end of the definition of premium component referring to the additional clause 30A.

 

Amendment 3 Schedule 1, Item 17, page 17

 

6.              This clause amends section 13 of the Bill to allow for an entity or entities who may form part of a partnership to be taken to own the entire proportion of the livestock for the purposes of determining a significant proportion of the livestock .  This will ensure partnerships are not disadvantaged by having to own significantly more of the livestock than the intended 25% or more.

 

Amendment 4 30A Adjustment of eligibility for payment rights - abnormal market milk pool distributions

 

7.              This amendment provides for the adjustment of eligibility for payment rights to recognise abnormal distribution of market milk pool distributions in 1998/99 to producers delivering milk through pooling systems.  Pooling is intended to ensure all producers receive an equal proportionate share of market milk payments.  Where this did not happen in 1998/99, the DSAP Scheme may make provision to adjust payment rights as if an equal proportionate share of market milk payments were made during that year.