Jane Hume (Victoria, Liberal Party) Share this | Hansard source

I rise tonight to speak on the Primary Industries Levies and Charges Collection Amendment Bill 2016. Australia's rural industries are among the most innovative and productive in the world. Continued investment in rural research and development, or R&D, is vital to ensure the ongoing growth of and improvement in the profitability and competitiveness of Australia's agriculture, fisheries, forestry and food sectors. In recognition of this, the Australian government works with industry to coinvest in research through our world-leading rural R&D system. Much of this work is delivered through the 15 rural research and development corporations, the RDCs, of which we have heard much this evening. The RDCs provide a mechanism for industry to come together and invest collectively in research and development.

The government assists by establishing and collecting a levy on behalf of an industry, if an industry requests this. The government also matches an RDC's eligible R&D spending, up to a legislated cap. It is estimated that, for every dollar that the government invests in rural R&D, farmers generate a $12 return over 10 years. Feedback from primary producers is an integral part of how RDCs work. RDCs are required to consult with industry on their activities and to give those who fund the research via levies an opportunity to provide input into the strategic direction of the corporation. Agriculture levies and charges are imposed on primary producers by government, at the request of industry, to collectively fund R&D, marketing, biosecurity and residue testing programs. The levy system enables agricultural sectors to respond to industry needs and to help maintain and strengthen their position in highly competitive world markets through resource-sharing and cooperation.

This bill allows for the distribution of levy payer information to rural research and development corporations, or RDCs, for the development of levy payers' registers. As it stands, the legislation at the moment only permits the distribution of levy payer information to RDCs in the wool and dairy industries. This bill remedies this by allowing the government to provide levy payer information for the purpose of a levy payers register to the 13 other RDCs. Consistent with the application of the broader R&D levy system, the establishment of levy payer registers will occur, but only when an RDC requests it.

This bill also provides for levy payer information to be distributed to the Australian Bureau of Statistics, the ABS, and to be used by it to perform any of its other functions, and this is consistent with the government's Public Data Policy Statement which commits to securely share data between Australian government entities, to improve efficiencies and inform policy development and decision making. Secondary disclosure of levy payer information by an RDC and the ABS will be limited. The secretary of the Department of Agriculture and Water Resources can approve its disclosure in some circumstances, including, for example, disclosure by an RDC to an industry representative or to an industry representative body for the purpose of consulting on R&D activities conducted by the RDC.

This bill makes it possible for the rural research and development corporations to identify with the primary producers who fund their work and connect directly to them. A number of reviews and inquiries have identified improved consultation with levy payers as vital to the ongoing strength of Australia's rural R&D system. Several of these inquiries have recommended the establishment of a levy payer register as a way for RDCs to consult more effectively with those primary producers that fund them.

The government agrees that the levy payers should have more of a say in how their levy funds are spent. RDCs should know exactly who their levy payers are. Levy payer registers will provide RDCs with the ability to identify and consult directly with those who pay those levies on research priorities and levy expenditure and, then, to accurately and efficiently allocate voting entitlements where useful. As it currently stands, the legislation does not allow for levy payer information to be distributed by the department to the RDCs where this information is collected, except in two industries: the wool and dairy industries.

The bill addresses this by making it possible for this information to be provided to the other 13 RDCs. The bill amends the Primary Industries Levies and Charges Collection Act 1991 to allow the Department of Agriculture and Water Resources to distribute levy and charge payer information to all of the rural RDCs should they choose to fund the development of a levy payer register. This information includes the names, addresses and contact details as well as the ABN of levy and charge payers and the amount of levy or charge paid. The bill allows levy paid payer information to be used by the ABS in performing its functions. This is consistent, as I said, with the Australian government's public data policy statement, which commits to securely sharing data between Australian government entities to improve efficiencies and inform policy development and decision making.

The bill also allows the secretary of the Department of Agriculture and Water Resources to approve the disclosure of information by an RDC, under limited circumstances, to a third party. The bill in and of itself does not create levy payer registers. That is up to the RDC itself. The distribution of levy payer information to an RDC for a levy payer register will only occur when the RDC makes that decision, in consultation with industry, to fund the development of a register and requests the minister to improve its development.

The department has already started consulting with RDCs as well as industry representative bodies and levy collection agents on their requirements. These might include IT systems that would allow the data to be appropriately collected and distributed. Once these systems are known there will be subsequent amendments to the regulations under this bill that will formally mandate the collection of data.

Most RDCs do not currently have a database of their levy payers or access to their contact details. A comprehensive list of levy payers will provide RDCs with the ability to identify and consult directly with those levy payers on the strategic direction of research activities and other elements of the RDC's functions. Through greater levy payer engagement, those RDCs will be able to better align the research investments they make to industry priorities. This bill allows levy payer information to be used by the ABS in performing its functions and to inform policy development in decision making.

The government is committed to upholding the highest standards of security and privacy for individual and commercial confidentiality. This bill provides for levy payer information to be disclosed and used not just by the RDC or the ABS. The use of personal information, however, is subject to the relevant privacy information, including Australian privacy principles. The bill also limits the purposes for which the levy payer information can be used to maintain levy payer registers, to maintain a register of eligible voters for polls conducted by an RDC, to publish statistical and de-identified information, to fulfil an RDC's function under its funding agreement with the Commonwealth or to fulfil functions of the ABS.

Further, the bill does not allow for disclosure of levy payer information by an RDC or the ABS to a third party, except where approved by the secretary of the Department of Agriculture and Water Resources in writing. This is to protect the integrity and security of levy and charge payers' personal information. Where an RDC is permitted to disclose levy payer information to a third party, that person or body may only use the information for activities relating to R&D, marketing, biosecurity, the National Residue Survey or other activities of the RDC that benefit producers.

Levy payer registers will only be established where an RDC, in consultation with industry, chooses to fund the development of a levy payer register and puts a request to the minister and that request is then approved. There are a number of steps in the process and it is expected to take some time for each levy payer register to be established. Levy payer data is not currently collected by the department, except in the wool and dairy industries. A number of RDCs have expressed an interest in establishing a levy payer register already. It will not be possible for the department to build them all at the same time and, therefore, we will need a staggered approach.

The department has been and continues to liaise with RDCs, industry representative bodies and levy collection agents on the design and implementation of levy payer registers and the collection of data. The department welcomes early engagement and participating in the design. Developing a fit-for-purpose, cost-effective system to deliver levy payer information to RDCs is a complex process and work has commenced to capture relevant stakeholder requirements. Once the system requirements are known there will be subsequent amendments to the regulations under this bill that will formally mandate the collection of that data. Importantly, this bill has no financial implications at all.

The bill allows the Department of Agriculture and Water Resources to provide levy payer information to an RDC to establish a levy payer register. This will only go ahead, as I have said, where the RDC, in consultation with industry, chooses to fund the development and requests a levy payer register itself and that request is approved by the Minister for Agriculture and Water Resources. Therefore, it is a matter for each RDC, in consultation with industry, to decide to fund the development of a levy payer register itself. In line with the department's existing approach to the administration, collection and disbursement of levies, this would include cost-recovery arrangements.

The wool and dairy industries, as I have said, already have levy payer registers. This bill does not alter existing arrangements for the collection and distribution of levy payer information to those two industries. The bill amends the Dairy Produce Act 1986 to remove repetition between it and this bill, but it will have no practicable effect on the industries. The department will consult with RDCs and industry representative bodies on the administrative arrangements through which third parties can access levy payer information and assure that any administrative burden is therefore minimised.

This bill also allows for the secretary of the Department of Agriculture and Water Resources to approve the disclosure of levy payer information by an RDC to a third party such as an industry representative body. The department is developing the appropriate guidance that will allow for levy payer information to be made available to third parties in some situations. The department will consult with industry on these arrangements to ensure that they are not overly burdensome but, at the same time, provide for appropriate security, privacy and use of the information.

The government is committed to upholding the highest standards of security and privacy for individual and commercial confidentiality reasons. In some cases, levy payer information will be personal information and it will be governed by the relevant privacy legislation. Levy payer information may also include commercial information which would be subject to common law obligations. The appropriate guidance being developed by the Department of Agriculture and Water Resources will also set out the expectations for the appropriate use of this data. The department will consult with industry on these arrangements to ensure that they are not overly burdensome but provide for the appropriate security, privacy and use of the information.

Extensive consultation on the agricultural levy system was undertaken by the Senate Rural and Regional Affairs and Transport References Committee in its inquiry into these levies. In conducting its inquiry, the committee received 151 submissions and held seven public hearings across the country—in Canberra, in Sydney, in Melbourne and in Perth. In addition, the Senate Rural and Regional Affairs and Transport Legislation Committee received 35 public submissions on its inquiry into this bill when it was referred to the committee during the previous parliament. The Department of Agriculture and Water Resources has been liaising, and continues to liaise, with RDCs on the design and implementation of levy payer registers.

In conclusion, the passage of this bill is the first key step in allowing for the development of levy payer registers, making it possible for RDCs to identify and connect directly with those who fund their work. Through greater levy payer engagement with the R&D system, RDCs will be able to better align research investments to industry priorities, improving returns to primary producers and contributing to a more profitable, competitive and sustainable agricultural sector. We will now work with the RDCs and industry to make this happen. The government is committed to an Australian R&D system that remains transparent, consultative and delivers tangible benefits to Australia's agricultural industries in the future.