2010–2011

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

CONSTITUTIONAL CORPORATIONS (FARM GATE TO PLATE) BILL 2011

EXPLANATORY MEMORANDUM

(Circulated by authority of Senator N Xenophon)

Constitutional Corporations (Farm Gate to Plate) Bill 2011

Explanatory Memorandum

Clause1 – Short Title

This clause is a formal provision and specifies the short title of the bill, once enacted, as the Constitutional Corporations (Farm Gate to Plate) Act 2011.

Clause 2 – Commencement

This clause provides for the commencement of sections 1 and 2 of the Act on the day this Act receives Royal Assent, and for the commencement of sections 3 to 14 on the 28th day after this Act receives Royal Assent.

Clause 3 – Object

The object of this Act is to enable consumer to understand the pricing practices of grocery retailers in relation to fresh produce.

Clause 4 –Constitutional basis for Act

This clause outlines the constitutional basis for this Act as:

a)      the Commonwealth's legislative powers under paragraphs 51(i), (v), (xv) and (xx) of the Constitution; and

b)      any implied legislative powers of the Commonwealth.

Clause 5 – Application to external Territories

This clause states that this Act extends to all the external Territories.

Clause 6 – Relationship with State and Territory laws

This clause states that this Act is intended to apply to the exclusion of a State or Territory law that is prescribed by the regulations, but is not intended to exclude or limit the concurrent operation of any other State or Territory unless there is a contrary intention in this Act.

Clause 7 – Interpretation

This clause defines the following terms for the purpose of the bill:

1)      constitutional corporation

2)      farm gate

3)      farm gate price

4)      floor space

5)      food-based grocery item

6)      grocery retailer

7)      produce

8)      producer price

9)      retail premises

10)   selling price.

Clause 8 – Application

This clause states that Part 2 of this bill applies to any constitutional corporation that is a grocery retailer, as defined in the bill.

Clause 9 – Requirements on constitutional corporation to display and to publish producer prices for produce

Subclause (1) of this clause states that any constitutional corporation to which this Part applies must display the producer price (defined as the average farm gate price received by farmers for a specific type of produce within a 12 month period) for all fruit and vegetable produce sold.

Subclause (2) of this clause outlines how the producer price must be displayed by the constitutional corporation.

Subclause (3) of this clause states that a constitutional corporation to which this Part applies must also publish on its website all producer prices for all produce sold by the constitutional corporation.

Clause 10 – Contravention of subsection 9(1), (2) or (3)

This clause states that a constitutional corporation must not contravene the above subsections.

Clause 11 – Subsections 9(1), (2) and (3) deemed to be infringement notice provisions

This clause deems that the above subsections are infringement notice provisions for the purposes of Division 5 of Part XI of the Competition and Consumer Act 2010, which outlines the provisions applying to infringement notices issued by the Australian Competition and Consumer Commission, and how these notices may be issued. These provisions apply subject to clauses 12 and 13.

Clause 12 – Enforcement

This clause states that, if the Commission has reasonable grounds to suspect that a constitutional corporation has contravened subsection 9(1), (2) or (3), it may either issue an infringement notice to the corporation, or apply to the Federal Court for such orders as the Commission finds appropriate.

Clause 13 – Amount of penalty specified in infringement notice for contravention of subsection 9(1), (2) or (3)

This clause states that the penalty to be specified in an infringement notice issued to a constitutional corporation by the Commission for the contravention of these subsections is 600 penalty points.

Clause 14 – Regulations

This clause provides for the making of regulations required or necessary to give effect to the bill, once enacted.