Mr ADERMANN (Fisher) (Minister for Primary Industry) . - by leave - I move -
That the bill be now read a second time.
This bill and the two wool tax bills to follow it are complementary. Their purpose is to amend the existing wool tax legislation so as to extend the present rate of levy paid by wool-growers to finance wool promotion activities for a further period of twelve months, that is from 1st July, 1962, to 30th June, 1963. At a joint meeting on 4th April between the Australian Wool Bureau and the two federal organizations of wool-growers represented on the bureau, namely the Australian Woolgrowers and Graziers Council and the Australian Wool and Meat Producers Federation, it was agreed by the three bodies to recommend that the current wool promotion levy of 10s. a bale on all shorn wool produced in Australia be continued for another year. The Government is, therefore, now acting in accordance with the wishes of the wool-growing industry.
Honorable members will recall that in August last year, at the request of wool-growers, legislation was passed to increase the wool promotion levy from 5s. a bale to 10s. a bale. The industry then requested that the higher rate of levy operate only until 30th June, 1962. At that time it was expected by the industry organizations that the findings of the Wool Marketing Committee of Enquiry would be available for consideration by the industry somewhat earlier than has been the case.
The report of the Wool Marketing Committee of Enquiry which I tabled in this House on the 7th March, supported the case for the provision of increased woolgrower funds for wool promotion purposes. The Committee of Enquiry drew attention to the important influence of factors affecting demand on the level of wool prices and stated, inter aiia - . . promotion is the most promising means open to growers whereby world demand for wool can be stimulated.
I think it is fair to say that over the years most Australian wool-growers have been fully conscious of the need to provide funds for wool promotion. This industry appreciation of the value of promotion is reflected in the fact that the rates of levy for this purpose have increased progressively from the original 6d. a bale in 1936 to 2s. in 1945, 4s. in 1952, 5s. in 1960 and 10s. in 1961.
It has been necessary to maintain Australia's share of the increased funds required by the International Wool Secretariat to pursue its intensified programme of wool promotion in many countries. In addition, increased funds are required to finance the higher level of wool promotional activities within Australia.
As I think honorable members generally are aware, the International Wool Secretariat comprises representatives of the Australian Wool Bureau and the Wool Boards of New Zealand and South Africa. Following a reconstitution in 1960, the secretariat is now governed by a board consisting of the seven members of the Australian Wool Bureau and three representatives each of the Wool Boards of New Zealand and South Africa, a total of thirteen members in all. Australia's majority representation on the International Wool Secretariat is a recognition of the size of the contribution by the Australian wool growing industry to the cost of maintaining the secretariat. Australia actually contributes 62 per cent, of the total funds of the secretariat compared with 24 per cent, by New Zealand and 14 per cent, by South Africa.
Total expenditure by the International Wool Secretariat in 1961 from contributions by Australia, New Zealand and South Africa was in the region of £A.3, 100,000 whilst substantially increased expenditure is envisaged in 1962 and later years. In addition, about £A. 1,000,000 was contributed by sections of the wool textile industry in various countries for joint promotional activities with the secretariat.
The proceeds of the existing 10s. a bale levy in Australia, based on a wool clip of approximately 5,000,000 bales, amount to about £A.2,500,000 per annum. In recognition of the heavy commitments facing Australia for funds to finance increased wool promotion, both in Australia and overseas, the Australian Wool Bureau had previously conveyed to me its recommendation that the existing rate of levy for wool promotion of 10s. a bale, with proportionate charges for smaller parcels of wool, should operate for a further year following 30th June, 1962. As I have already stated the wool bureau's recommendation has now been supported by the two major federal woolgrower organizations. It is essential that this legislation be passed in the current session of Parliament, since the industry wishes the present rate of. levy of 10s. per bale to continue uninterruptedly until 30th June, 1963; otherwise, the levy would revert automatically to 5s. a bale as from 1st July, 1962, which I am sure would be generally regarded as a retrograde step.
The Wool Tax Assessment Bill repeals such sections of the principal act as are now redundant because they applied only to the furnishing of special returns covering wool sold up to 28th August, 1961. I explained that position in my second-reading speech on the bills before the House last week. The bill also calls for a modification to the normal quarterly return which will be submitted by wool-selling brokers for the quarter ending 30th June, 1963, so that the 10s. per bale rate will apply only to wool sold on or before that date. This is a similar provision to that originally made in respect of the return for the quarter ending 30th June, 1962, under the existing legislation.
At a later stage, I propose to introduce a resolution on the rates of levy and subsequently to introduce Wool Tax Bill (No. 1) and Wool Tax Bill (No. 2). I think it may he appropriate at this point to say for the information of honorable members that these measures are complementary, and that the need for two separate bills arises from a constitutional requirement. This bill and the complementary wool tax bills accord with the wishes of the two major wool-grower industry organizations and the Australian Wool Bureau to assist in the task of stimulating the demand for Australian wool at home and abroad through intensified promotion work. I commend the bill to honorable members.
Debate (on motion by Mr. Pollard) adjourned.
WOOL TAX BILLS (Nos. 1 and 2) 1962.
In Committee of Ways and Means:
Mr ADERMANN (Fisher) (Minister for Primary Industry) . - I move -
1. That, notwithstanding section seven of the Wool Tax Act (No. 1) 1957-1961 and any regulations made under that section, the rates set out in the Third Schedule to that Act be deemed to have been and be the rates prescribed for the purposes of paragraph (a) of sub-section (1.) of section six of that Act in relation to -
(a) wool received by a wool-broker (not being wool previously received by a woolbroker or dealer) on or after the twentyeighth day of August, One thousand nine hundred and sixty-one, and before the first day of July, One thousand nine hundred and sixty-three, other than wool that-
(i) is received after the thirty-first day of March, One thousand nine hundred and sixty-three; and
(ii) is not sold by the wool-broker before the first day of July, One thousand nine hundred and sixtythree; and
(b) wool received by a dealer (not being wool previously received by a wool-broker or dealer) on or after the twenty-eighth day of August, One thousand nine hundred and sixty-one, and before the first day of July, One thousand nine hundred and sixty-three.
2. That, notwithstanding section seven of the Wool Tax Act (No. 2) 1957-1961 and any regulations made under that section, the rates set out in Third Schedule to that Act be deemed to have been and be the rates prescribed for the purposes of paragraph (a) of sub-section (1.) of section six of that Act in respect of wool to which that Act applies exported from Australia on or after the twenty-eighth day of August, One thousand nine hundred and sixty-one, and before the first day of July, One thousand nine hundred and sixty-three.
Question resolved in the affirmative. Resolution reported.
Standing Orders suspended; resolution adopted.
Ordered -
That Mr. Adermann and Mr. Davidson do prepare and bring in bills to carry out the foregoing resolution.
