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Commodity Levies Act 1990

Levy orders

5: Restrictions on making of orders

You could also call this:

"Rules for Ministers to make levy orders"

Illustration for Commodity Levies Act 1990

When a Minister is thinking about making a levy order, you need to know they can't do it unless certain things happen. The organisation that will get the levy money must ask the Minister to make the order and give them a plan for how they will spend the money. The Minister must be satisfied that the organisation has held a support referendum, which is like a vote, to see if people want the levy. This referendum must have been held in the last 12 or 18 months. The Minister also needs to know that the organisation has told people about the referendum and that people had a chance to vote. The Minister must consider all the views about the levy and make sure the people who will pay it will benefit from the spending of the levy money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM227327.

Topics:
Government and voting > Government departmentsBusiness > Industry rules
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4: Governor-General may impose levy, or

"The Governor-General can make a rule to charge a fee on certain goods or products."

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6: Matters to be specified in orders, or

"What a levy order must include, like who pays and how the money is used"

Part 1Levy orders

5Restrictions on making of orders

  1. No Minister shall recommend the making of a levy order, unless the body corporate to which the levy is to be payable (in subsection (2) referred to as an applicant organisation) has—

  2. asked the Minister to do so; and
    1. given the Minister a written plan showing how the levy collected in the first full year of collection would be spent.

      1. No Minister shall recommend the making of a levy order imposing on any commodity a levy payable to an applicant organisation, unless the Minister is satisfied, on the basis of information and evidence satisfactory to the Minister,—

      2. that—the organisation has held a support referendum in relation to a proposal that the levy, payable to the organisation, should be imposed on the commodity; and
        1. within the previous 12 months; or
          1. within the previous 18 months, and before the commencement of the Commodity Levies Amendment Act 1993,—
          2. that the support referendum was competently devised; and
            1. that the ballot paper described the proposal clearly, specifying in relation to it all the matters required by section 6(1) to be specified in a levy order, and (in particular) indicated that the imposition of the levy was proposed to be on the basis of one of the following:
              1. production of the commodity:
                1. the value of the commodity produced:
                  1. the area of land devoted to the production of the commodity:
                    1. the number, quantity, or capacity, of a thing or things of a specified kind used in connection with the production of the commodity, for example,—
                      1. the number of breeding stock, chicks, embryos, hives, or trees; or
                        1. the quantity of electricity; or
                          1. the capacity of plant or buildings; and
                        2. that the support referendum was so publicised that potential levy payers had a reasonable opportunity to be adequately informed about its holding, nature, and possible consequences; and
                          1. that the support referendum was so held that potential levy payers were given a reasonable opportunity to participate in it; and
                            1. that the voting in the support referendum was conducted on the basis of one of the matters specified in subparagraphs (i) to (iv) of paragraph (ac) (but not necessarily the matter that the ballot paper indicated was the proposed basis of the levy's imposition); and
                              1. that more than half of the participants in the support referendum were supporters; and
                                1. where voting in the support referendum was conducted on the basis of production of the commodity, that during the 12 months before the support referendum was held the total amount of the commodity produced by supporters was more than half of the total amount of the commodity produced of all participants; and
                                  1. where voting in the support referendum was conducted on the basis of the value of the commodity, that during the 12 months before the support referendum was held the value of the total amount of the commodity produced by supporters was more than half of the value of the total amount of the commodity produced of all participants; and
                                    1. where voting in the support referendum was conducted on the basis of the area of land devoted to the production of the commodity, that during the 12 months before the support referendum was held the total area of land devoted to the production of the commodity by supporters was more than half of the total area of land devoted to the production of the commodity by all participants; and
                                      1. where voting in the support referendum was conducted on the basis of the number, quantity, or capacity, or a thing or things of a specified kind used in connection with the production of the commodity, that during the 12 months before the support referendum was held the total number of those things, quantity of that thing, or capacity of those things, used in connection with the production of the commodity by supporters was more than half of the total number, quantity, or capacity of that thing or those things so used by all participants; and
                                        1. where the basis on which voting in the support referendum was conducted was not the proposed basis of the levy's imposition, that the impact of imposing the levy on that proposed basis will be substantially similar to the impact of imposing it on the basis on which voting was conducted; and
                                          1. that the matters specified in the order pursuant to section 6(1) do not differ in any material way from those specified in the ballot paper pursuant to paragraph (ac); and
                                            1. that the organisation has consulted adequately persons (other than persons entitled to participate in the support referendum) likely to be affected by the payment or collection of the levy; and
                                                        1. that—have had a reasonable opportunity to put their views to the Minister; and
                                                          1. persons opposing the levy's imposition on the commodity; and
                                                            1. other organisations (if any) representing or purporting to represent the interests of the persons who are to be primarily responsible for paying the levy, or any of them,—
                                                            2. that the Minister has had due regard to all views put to the Minister about the proposed imposition of the levy on the commodity; and
                                                              1. that the uses to which the levy will be put will be closely related to the interests of the persons who will be primarily responsible for paying it; and
                                                                1. that overall, the benefits to the persons who will be primarily responsible for paying the levy of the spending for the purposes specified in the order of the amount of levy likely to be raised will outweigh the disadvantages to them of the imposition, collection, and payment of the levy on the commodity; and
                                                                  1. if the levy is imposed on quantities of the commodity imported into New Zealand that—
                                                                    1. the importers will benefit from the spending of the levy; and
                                                                      1. the organisation will have regard to the importers' views on the spending of the levy; and
                                                                        1. the imposition of the levy on imported commodity will not be contrary to New Zealand's international legal obligations; and
                                                                        2. that the organisation, by virtue of its membership and structure, represents adequately the views and interests of the persons who will be primarily responsible for paying the levy; and
                                                                          1. either—
                                                                            1. that it would be impossible or impracticable to finance the doing out of voluntary levies of the things for which the levy is to be spent; or
                                                                              1. that if the doing of the things for which the levy is to be spent were paid for out of voluntary levies, persons who chose not to pay those levies would derive unearned benefits from the doing of those things; and
                                                                              2. that the organisation has or will have in place adequate systems for accounting to persons who will be primarily responsible for paying the levy of its receipt and expenditure (including, in particular, the uses to which it will be put); and
                                                                                1. that all other relevant matters known to the Minister have been properly considered.

                                                                                  Notes
                                                                                  • Section 5(2)(aa): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ab): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ac): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ad): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ae): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(af): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ag): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ah): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ai): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(aj): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(ak): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(al): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(am): inserted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(a): substituted, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(b): repealed, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(c): repealed, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(d): repealed, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(e): repealed, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).
                                                                                  • Section 5(2)(f): repealed, on , by section 2(1) of the Commodity Levies Amendment Act 1993 (1993 No 151).