Dairy Industry (Levy Process) Regulations 2021

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2021/108

Coat of Arms of New Zealand

Dairy Industry (Levy Process) Regulations 2021

Patsy Reddy, Governor-General

Order in Council

At Wellington this 17th day of May 2021

Present:
Her Excellency the Governor-General in Council

These regulations are made under section 134 of the Dairy Industry Restructuring Act 2001

(a)

on the advice and with the consent of the Executive Council; and

(b)

on the recommendation of the Minister of Agriculture made after meeting the requirements in that section.

Regulations

1 Title

These regulations are the Dairy Industry (Levy Process) Regulations 2021.

2 Commencement

These regulations come into force on 30 June 2021.

3 Interpretation

In these regulations, unless the context otherwise requires,—

financial year means a period of 12 months starting on 1 July and ending on the close of 30 June.

4 Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

5 Method of calculating and ascertaining amount of levy

(1)

For each financial year, the Minister must publish a notice in the Gazette

(a)

specifying the amount of the levy for that year; and

(b)

requiring new co-op to pay the levy to the Minister.

(2)

The Minister may provide for more than 1 financial year in the notice.

(3)

Before publishing the notice, the Minister must consult with the Commerce Commission and new co-op on the amount of the levy, which must—

(a)

fully cover the Commission’s costs associated with the leviable activities specified in section 134(4) of the Act during that financial year; and

(b)

include any under-recovery or over-recovery of actual costs from the previous financial year.

(4)

New co-op must pay the levy within 60 days after the notice is published.

(5)

This regulation is subject to clause 1 of Schedule 1.

Schedule 1 Transitional, savings, and related provisions

r 4

Part 1 Provision relating to these regulations as made

1 Levy for 2021/2022 financial year

(1)

The Minister must publish a notice in the Gazette, within a reasonable period before the end of the 2021/2022 financial year, setting an amount of the levy for that financial year approximately equal to the Commission’s costs before the end of that financial year.

(2)

The amount must include any under-recovery of actual costs from the 2020/2021 financial year.

(3)

The Minister must consult with the Commission and new co-op about the amount of the levy payment for the 2021/2022 financial year.

(4)

New co-op must pay the amount before the end of the 2021/2022 financial year.

(5)

When setting the final levy amount for that financial year, the Minister must deduct from the amount to be paid—

(a)

the amount already paid; and

(b)

any remaining over-recovery of actual costs from the 2020/2021 financial year.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 30 June 2021, are made under section 134 of the Dairy Industry Restructuring Act 2001. That section was replaced, on 1 June 2021, by section 32 of the Dairy Industry Restructuring Amendment Act 2020.

As replaced, section 134 empowers the making of regulations specifying the method of calculating or ascertaining the amount of the levy payable by new co-op, or the amount of the levy. Section 134 also specifies which costs must be met fully out of the levy and which costs must be excluded.

Transitional provisions are included in these regulations to ensure that new co-op pays a levy in the 2021/2022 financial year: section 134(1) requires it to pay a levy in each financial year. The transitional provisions are also required to reconcile the estimated and actual costs of the first year of the new levy process.

Regulatory impact statement

The Ministry for Primary Industries produced a regulatory impact statement on 28 February 2021 to help inform the decisions taken by the Government relating to the contents of this instrument.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 20 May 2021.

These regulations are administered by the Ministry for Primary Industries.