Research
and Development (R&D) Levy
In 2004/05, $2.9 million dollars were invested in citrus research
and development (R&D) projects.
These projects are funded through the national citrus R&D levy
which is matched by the Australian Government in a 50/50 agreement
with Horticulture
Australia Limited (HAL).
Commercial citrus growers pay the citrus R&D levy at a rate
of $1.97 per tonne.
The funds are used to invest in R&D projects to find solutions
for problems and develop innovative approaches to help Australian
citrus remain competitive in a rapidly changing marketplace.
The R&D technical advisory panel assists the citrus industry
advisory committee (IAC) in technical R&D matters.
Marketing Levy (oranges only)
In 2004/05, approximately $760,000 was invested in marketing projects,
which support domestic and export sales of fresh oranges.
Commercial orange growers pay the citrus marketing levy at a rate
of $0.75 per tonne (oranges only).
The marketing levy is not matched by the Australian Government.
The domestic oranges marketing program is directed by the Domestic
Oranges Promotion Committee, that has representation from Australian
Citrus Growers (Citrus Australia) and the three state statutory citrus boards.
The export orange marketing program is directed by the Export Marketing
Advisory Panel, comprising of exporters and Citrus Australia.
Plant Health Australia
Commercial citrus growers pay the Plant
Health Australia levy at a rate of $0.03 per tonne.
This levy contributes to the membership of Plant Health Australia
(PHA), who coordinates and develops initiatives at a national level
that benefit members by increasing the future viability and sustainability
of all plant industries. As PHA members include most major agricultural
industries, the Australian Government and all state/territory governments,
PHA provides plant industry with value by providing a unique, effective
and coordinated means of contributing to policy making and direction
setting on major plant health issues.
How the levy is collected and managed
The citrus R&D and marketing levies are collected at the first
point of sale by the packer, agent or processor.
All collectors are legally required to pass on the levy to the Levies
& Revenue Service of the Australian Government Department
of Agriculture, Fisheries & Forestry (DAFF). A levy collection
charge is applied on an industry-by-industry basis.
The Levies & Revenue Service then forwards the levy money to
HAL who manage the citrus R&D and marketing programs in consultation
with the Australian Citrus Growers (Citrus Australia), the citrus industry advisory
committee (IAC) and two expert panels.
Ross Skinner, HAL Industry Services Manager, is the primary contact
for citrus in HAL, a number of Professional Services people manage
individual projects.
The HAL
Board is ultimately responsible for approving expenditure from
both the levy and Australian Government-matched funding and ensures
that projects meet the priorities of both the industry and Government.
How the funding is used
Levies collected in one year are used to fund R&D and marketing
projects in the following financial year so that the industry knows
exactly how much is available to invest.
Investment is guided by the citrus IAC Strategic Investment Plan.
This plan allows coordination in planning for both investment in
R&D and marketing, although the two levies remain separate.
HAL charges all industries a program management fee of 10% of the
levy collected. The program management fee funds the employment
of the Industry Services Manager and Professional Services people,
and operating costs involved in managing the programs.
How are projects selected?
The funding process is open to both public and private providers.
Projects are considered by the IAC on merit and according to industry
priorities. More information regarding the funding process can be
found on the HAL website, click
here.
There are two main methods by which projects are funded.
1. Approval of proposals from research organizations
An annual industry call is advertised by HAL for national citrus
levy funding and industry endorsed voluntary contribution (VC) funds
(for further information regarding VC funding see below) projects.
Applicants are required to fill out a Concept Development Proposal,
which is then reviewed by the HAL Professional Services, IAC and
expert panels.
The reviewers make recommendations to HAL as to which projects should
be supported, and which need supplementary detail.
Those projects which are approved by the IAC are submitted to HAL
for final approval, and then included into the Annual Investment
Plan.
2. Commissioning of projects by the IAC
Where the normal submission process does not adequately meet
industry priorities, the IAC may request HAL to commission specific
projects, setting out the objectives and outcomes of the work
to be undertaken. This process ensures that all R&D and marketing
priorities can be addressed.
How do levy payers find out about project
results?
Throughout the life of the project, project teams are required
to report back to HAL through milestone reports.
Project teams are also required to report back to industry to
explain the progress and outcomes. This may be done in a variety
of ways and is commonly done through articles in Australian
Citrus News, Citrus
Insight and other publications, factsheets and posters, information
uploaded to websites such as www.citrusaustralia.com.au,
presentations at Citrus Australia
annual conferences, CITTgroups
Australia meetings, field days, workshops and at other industry
forums.
It is important that levy payers make the most of these opportunities
to hear first-hand about the latest R&D and marketing activities.
To maximize return on investment, growers should be the first
to use the outcomes and respond to new information.
Voluntary Contributions (VCs)
Non-levy payers within the industry, such as processors and marketing
boards, can submit a proposal for funding. In this case the project
applicant must supply half the funds for matching by the Australian
Government.
Levy money is not used for VC projects. Local grower groups can
also use this mechanism to part fund activities such as R&D
into local issues, study tours or utilising experts.
For more details click
here.
Across Industry Program
All industries involved with HAL have agreed to a system for sharing
the costs of projects of general horticultural importance. HAL
manages the Across Industry Program; where industries share contributions
to the program costs.
The Across Industry Program is very important for the citrus industry,
recent projects include fruit fly control, market access, strategic
health initiatives, water initiatives, and pesticide regulation.
For the latest report on the Across Industry Program, click
here.
Biosecurity Levy
The citrus biosecurity, levy proposed by Citrus Australia, was approved by
the citrus industry in September 2005. Initially to be set at
zero ($0), the levy is to be activated in the event of an exotic
outbreak to which an eradication response is considered appropriate.
Plant health Australia (PHA) has developed an Emergency Plant
Pest Response Deed (EPPRD) which delegates responsibilities and
activities in the event of an incursion. Under the EPPRD, the
biosecurity levy will provide a funding mechanism to cover the
citrus industry's share of any exotic pest or disease eradication
program, including reimbursement costs for citrus trees/crops
destroyed.
Biosecurity
Levy: Protection for the Australian citrus industry - (PDF brochure
440kb)
Plant
Health Australia - Emergency Plant Pest Response Deed information
Citrus Australia Membership Fee and Voluntary Contribution
Regional grower organisations provide a membership fee to Citrus Australia.
Citrus Australia members' contributions are made either as a voluntary contribution
per tonne or an agreed fee for service.
These contributions fund the services
Citrus Australia provides to industry.
|
