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DAIRY LEGISLATION AMENDMENT BILL 1985 DAIRY PRODUCE MARKET SUPPORT BILL 1985DAIRY INDUSTRY STABILIZATION LEVY AMENDMENT BILL 1985

The Senate, according to Order, resolved itself into Committee for the consideration of Messages Nos 135 to 137 of the House of Representatives.

In the Committee

Messages read. DAIRY LEGISLATION AMENDMENT BILL 1985-

SCHEDULE OF THE AMENDMENTS MADE BY THE SENATE TO WHICH THE HOUSE OF REPRESENTATIVES HAS DISAGREED

Page 5, clause 13, line 30, leave out ''20AA and 20AB''.

Page 5, after clause 13, insert the following new clause: ''13A. Sections 20AA and 20AB of the Principal Act are repealed and the following sections substituted:

Export of certain dairy products prohibited unless exporter party to arrangement '20AA. (1) A person, other than the Corporation, shall not export, or cause to be exported, dairy products as specified in section 20AB from Australia unless the person is a party to an arrangement with the Corporation entered into under section 20AB that relates to those dairy products. Penalty: $1,000.

'(2) The regulations may provide that this section does not apply in relation to dairy products of a prescribed class.

Export sales pooling arrangements '20AB. (1) In this section- ''exporter'', for the purposes of this section, means a person, a partnership or a body corporate, accepted by the Corporation as being engaged in the sale of dairy products to overseas markets;

''principal markets'' means markets or groups of markets prescribed for the purposes of this section by the regulations;

''pool'' means a separate account set up and maintained by the Corporation in respect of the dairy products, and for the periods, specified in sub-section (2).

'(2) The Corporation shall establish and maintain pools for the purpose of this section as follows- (a) butter and the commercial butter equivalent of butter oil exported between 1 July 1985 and 30 June 1986 but manufactured after 30 June 1985;

(b) cheddar cheese and the natural equivalent of processed cheddar exported between 1 July 1985 and 30 June 1986 but manufactured after 30 June 1985;

(c) butter and the commercial butter equivalent of butter oil exported between 1 July 1986 and 30 June 1987 but manufactured after 30 June 1985;

(d) cheddar cheese and the natural equivalent of processed cheddar exported between 1 July 1986 and 30 June 1987 but manufactured after 30 June 1985.

'(3) The Corporation shall, from time to time, for the purposes of this section, fix an average price for each of the dairy products in respect of which a pool is maintained by the Corporation under sub-section (2), being a price that the Corporation considers will be the average export price for those dairy products.

'(4) The Corporation may, from time to time, for the purposes of this section, fix assessed export prices for each principal market for each of the dairy products in respect of which a pool is maintained by the Corporation under sub-section (2), being prices that the Corporation considers appropriate at the time and in the circumstances.

'(5) The Corporation may, with the approval of the Minister, make to persons engaged in the production, storage, distribution, sale, export or promotion of dairy products payments to meet expenses incurred in the storage, distribution, sale, export or promotion of dairy products to which this section applies and, where any such payment is made, the amount of the payment shall be debited to the appropriate pool.

'(6) Where an exporter makes sales of dairy products, in respect of which a pool is maintained by the Corporation under sub-section (2), to a principal market and the assessed price for the relevant principal market at the time of a sale is greater than the average price for the product determined under sub-section (3), the exporter shall be required to pay to the Corporation for the purposes of the relevant pool the difference between the average price for the product and the assessed price for the product in the relevant principal market.

'(7) Where an exporter makes sales of dairy products, in respect of which a pool is maintained by the Corporation under sub-section (2), to a principal market and the assessed price for the relevant principal market at the time of a sale is less than the average price for the product determined under sub-section (3), the Corporation shall pay to the exporter from the funds available for the purposes of the relevant pool the difference between the average price for the product and the assessed price for the product in the relevant principal market.

'(8) Where, at the end of each financial year, the Corporation is satisfied that no more amounts will be credited or debited to any of the pools established pursuant to sub-section (2), the Corporation may- (a) if the funds in the relevant pool are in credit, divide the amount of the credit amongst exporters who have contributed funds to the pool in accordance with sub-section (6) in the year in question, in proportion to their respective contributions to the pool; or

(b) if the funds in the relevant pool are in deficit, transfer an amount equal to the deficit from the Supplementary Market Support Trust Fund established under section 28 of the Dairy Market Support Act 1985.

'(9) Where the Corporation engages in the export of dairy products of the kinds specified and during the periods specified in sub-section (2) it shall, for the purposes of sub-sections (6), (7) and (8) be considered to be an exporter.'.''.

Reasons of the House of Representatives for disagreeing to the amendments of the Senate The Senate amendments are not acceptable because- The amendments, which would have the effect of extending export pooling for butter and cheese for two years, are counter to the basic thrust and purpose of the Government's new marketing arrangements for the dairy industry. As export pooling is a major cause of the industry's present problems (including overproduction) it should be terminated as soon as possible.

The Government does not accept that the temporary continuation of export pooling is a necessary transitional arrangement as possible transitional difficulties associated with the termination of export pooling are covered by other Government decisions.

The amendments are not acceptable to the Government. It is the wish of the Government that clause 13 of the original Bill be restored.

DAIRY PRODUCE MARKET SUPPORT BILL 1985-

SCHEDULE OF THE AMENDMENTS MADE BY THE SENATE TO WHICH THE HOUSE OF REPRESENTATIVES HAS DISAGREED

Page 9, sub-clause 19 (1), lines 2 to 11, leave out the sub-clause, insert the following sub-clauses: ''(1) Where dairy produce that is exported from Australia was, at the commencement of the marketing year during which it is so exported, dairy produce of a kind that was, in accordance with the provisions of sub-sections (1A) and (1B), prescribed dairy produce for the purposes of this Act, the rate at which market support payments are payable in respect of dairy produce of that kind is the amount per unit of that dairy produce that is equal to the difference between the export target price in relation to each such unit of dairy produce of that kind in respect of that marketing year and the estimated average price in force in relation to each such unit of dairy produce of that kind that is so exported during that marketing year at the time when that unit of dairy produce is so exported.

''(1A) For the purposes of this section, and notwithstanding anything contained elsewhere in this Act, 'prescribed dairy produce', unless otherwise determined in accordance with the provisions of sub-section (1B), means butter, cheddar cheese, skimmed milk powder and casein.

''(1B) The definition of 'prescribed dairy produce' for the purposes of this section provided in sub-section (1A) may only be varied by instrument in writing signed by the Minister.

''(1C) The Minister shall not sign an instrument under the provisions of sub-section (1B) unless it is fully in accordance with a recommendation, in writing, of the Corporation.

''(1D) The Corporation shall not make a recommendation under sub-section (1C) to the Minister unless it has consulted with the conference on the matter.''.

Page 11, sub-clause 19 (6), line 19, leave out ''declared by the regulations'', insert ''determined in accordance with sub-sections (1A) and (1B)''.

Pages 11 and 12, clause 20, line 39 (page 11) to line 3 (page 12), leave out the clause, insert the following clause: ''20. Where dairy produce that is exported from Australia was not, at the commencement of the marketing year during which it is so exported, dairy produce of a kind that was prescribed dairy produce for the purposes of section 19, the rate at which market support payments are payable in respect of dairy produce of that kind is such amount per unit of dairy produce of that kind as the Corporation determines in writing, from time to time, to be appropriate having regard to the rates of market support payments that are applicable to dairy produce of kinds that were, at the commencement of that marketing year, so declared to be prescribed dairy produce.''.

Page 16, after paragraph 29 (2) (e), insert the following new paragraph: ''(ea) money repaid to the Supplementary Fund, being money that was lent out of the Supplementary Fund to the Corporation for the purposes of the operation of the pools established pursuant to sub-section 20AB (2) of the Dairy Produce Act 1924;''.

Page 18, after paragraph 32 (d), insert the following new paragraph: ''(da) in making loans out of the Supplementary Fund to the Corporation for the purposes of the operation of the pools established pursuant to sub-section 20AB (2) of the Dairy Produce Act 1924;''.

Reasons of the House of Representatives for disagreeing to the amendments of the Senate The Senate amendments are not acceptable because- The amendments seek to alter the basis on which market support payments for dairy produce will be paid under the legislation.

The Government considers that its mechanism for determining market support payments is preferable to that proposed by the amendments in that it takes into account market price relativities.

The amendments are not acceptable to the Government. It is the wish of the Government that clauses 19 and 20 of the original Bill be restored.

DAIRY INDUSTRY STABILIZATION LEVY AMENDMENT BILL 1985-

SCHEDULE OF THE REQUEST BY THE SENATE FOR AN AMENDMENT

Pages 3 and 4, clause 7, proposed sub-sections 7 (2) to 7 (10), line 1 (page 3) to line 13 (page 4), leave out the proposed sub-sections, insert the following sub-sections: '' '(2) The rate at which levy is imposed on dairy products of a particular kind being dairy products that are produced on or after 1 July 1985 and sold during the year commencing 1 July 1986 is equal to the rate determined by the Minister for the purpose on the day before the commencement of that year.

'(3) The rate at which levy is imposed on dairy products of a particular kind, being dairy products that are produced on or after 1 July 1985 and sold during the year commencing on 1 July 1987, is a rate that is calculated on a day determined by the Minister for the purpose, being a day occurring before the commencement of that year, by multiplying the rate of levy applicable to dairy products of that kind that are sold in the year ending 30 June 1987 by .75.

'(4) The rate at which levy is imposed on dairy products of a particular kind, being dairy products that are produced on or after 1 July 1985 and sold during the year commencing on 1 July 1988, is a rate that is calculated on a day determined by the Minister for the purpose, being a day occurring before the commencement of that year, by multiplying the rate of levy applicable to dairy products of that kind that are sold in the year ending 30 June 1987 by .5.

'(5) The rate at which levy is imposed on dairy products of a particular kind, being dairy products that are produced on or after 1 July 1985 and sold during the year commencing on 1 July 1989, is a rate that is calculated on a day determined by the Minister for the purpose, being a day occurring before the commencement of that year, by multiplying the rate of levy applicable to dairy products of that kind that are sold in the year ending 30 June 1987 by .25.

'(6) No levy under this section shall be payable in respect of dairy products that are produced after 30 June 1990.'.''.

The Minister for Finance (Senator Walsh) moved-That the Committee- (a) does not insist on the Amendments made by the Senate in the Dairy Legislation Amendment Bill 1985 and the Dairy Produce Market Support Bill 1985 to which the House of Representatives has disagreed; and

(b) that the Senate's request for an amendment to the Dairy Industry Stabilization Levy Amendment Bill 1985 be not pressed.

Debate ensued.

Question-That the motion be agreed to-put.

The Committee divided-

AYES, 29

Senators- Aulich Black Button Childs Coates Colston Cook Cooney Crowley Devlin Elstob Evans, Gareth Foreman Georges Gietzelt Giles Hearn McIntosh (Teller) McKiernan Maguire Primmer Ray, Robert Reynolds Richardson Robertson Ryan Sibraa Walsh Zakharov

NOES, 36

Senators- Archer Baume Bjelke-Petersen Boswell Brownhill Chaney Chipp Collard Crichton-Browne Durack Evans, Jack Haines Hamer Harradine Hill Jessop Kilgariff Knowles Lajovic Lewis MacGibbon Macklin Mason Missen Parer Rae, Peter Reid (Teller) Scott Sheil Teague Townley Vanstone Vigor Walters Watson Withers

And so it was negatived.

Amendments to be insisted upon accordingly.

Request to be pressed accordingly.

Resolution to be reported.

The Acting Deputy-President (Senator MacGibbon) resumed the Chair; and the Chairman of Committees (Senator Hamer) reported that the Committee had considered- (a) Messages Nos 135 and 136 of the House of Representatives with reference to the Dairy Legislation Amendment Bill 1985 and the Dairy Produce Market Support Bill 1985, and had resolved to insist on the Amendments of the Senate to which the House of Representatives had disagreed; and

(b) Message No. 137 of the House of Representatives with reference to the Senate's request on the Dairy Industry Stabilization Levy Amendment Bill 1985, and had resolved to press the request.

Senator Walsh moved-That the Report from the Committee be adopted.

Senator Macklin moved an amendment, viz: At end of motion, add '', and that the Message to the House of Representatives be despatched forthwith so that that House may consider the Message at its meeting this day''.

Debate ensued.

Question-That the words proposed to be added be added-put.

The Senate divided

AYES, 36

Senators- Archer Baume Bjelke-Petersen Boswell Brownhill Chaney Chipp Collard Crichton-Browne Durack Evans, Jack Haines Hamer Harradine Hill Jessop Kilgariff Knowles Lajovic Lewis MacGibbon Macklin Mason Missen Parer Rae, Peter Reid (Teller) Scott Sheil Teague Townley Vanstone Vigor Walters Watson Withers

NOES, 30

Senators- Aulich Black Bolkus Button Childs Coates Colston Cook Cooney Crowley Devlin Elstob Evans, Gareth Foreman Georges Gietzelt Giles Hearn McIntosh (Teller) McKiernan Maguire Primmer Ray, Robert Reynolds Richardson Robertson Ryan Sibraa Walsh Zakharov

And so it was resolved in the affirmative. Main Question, as amended-put and passed.