Ministry of Agriculture and Lands
Industry Development Councils (Farming and Fishing Industries Development Act)
The purpose of the FFIDA is to allow commodity groups to establish a self-levy system to fund market promotion, market development, research and other development. Commodity groups interested in a levy under the Act prepare a development plan for their commodity outlining:
- a profile of their sector
- proposed uses for the proposed levy funding
- administration of the levy
- amount of the levy
- method of collection of the levy
- whether or not the levy is refundable.
The plan must also outline the composition of the industry development council and its proposed governance, a plan to make commodity producers aware of the proposed levy, and a method for determining the industry support for the levy (e.g., plebiscite). Upon acceptance of the plan by the minister and evidence of support by industry, the Council and the Industry Development Fund are established and a regulation under the FFIDA is put in place.
The legal mechanism to support the levy collection is established through a separate regulation for each council. The regulation also outlines the management, use and accountability for the funds by the council. The regulation describes the commodity, whether the levy system is refundable or non-refundable, the amount of the levy and the collection system that is to be used.
The legislation is not designed to fund commodity associations, although industry organizations and associations may receive funding from councils. For example, a council could approve the granting of funds to an organization for work done legitimately on behalf of the council. This work might be in the nature of a developmental project or administrative services needed to support such projects. This use of council funds must reflect the priorities of the entire sector and must meet all requirements of the FFIDA.
