THE state's livestock producers will soon have greater transparency into where their industry levies are spent with a new delivery model to be implemented before the end of the year.
The SA Sheep Advisory Group and SA Cattle Advisory Group, which are made up of sheep and cattle producers who advise Primary Industries Minister Tim Whetstone on the spending of the SA sheep and cattle industry funds, will be replaced by a Cattle Industry Fund Board and Sheep Industry Fund Board.
These boards, made up of levypayers, will operate as sub-committees of Livestock SA, rather than being run by the state government.
They will make recommendations on industry expenditure that the peak industry council will submit to Mr Whetstone for approval.
The monies will then flow to Livestock SA for it to disburse to successful projects.
Mr Whetstone said the livestock industry had driven a proposal to change management of the fund to gain greater benefit for the sector.
"SASAG and SACAG have served both industry and government well in providing advice on expenditure of farmers' funds, but it is now appropriate for the democratic farmer-run Livestock SA to take on this role," he said.
"This new arrangement will benefit all sheep and cattle industry fund contributors as it places more responsibility directly with the industry body who represents sheep and cattle producers and will ensure greater accountability as to how industry funds are spent.
"This new process will open the door for greater industry investment in the state's $4.3 billion livestock industry, and brings the process in line with industry funds management in other sectors."
Livestock SA chief executive officer Andrew Curtis said it was a positive step in improving accountability and transparency of levy spending.
"There will also be more opportunity for industry levy monies to be leveraged, it will not look to other funders like it is government money," he said.
The Sheep Industry Fund generates about $3.5 million a year from a 55 cent a head transaction levy, which is spent on various projects including animal health and industry advocacy, but this figure is likely to be well down due to the drought.
The Cattle Industry Fund is a smaller pool of about $750,000, raised from a $1.50 levy on National Livestock Identification System tags.
Mr Curtis said the first step would be to establish a selection committee, with elections if necessary, and they would then appoint eight individuals to each board based on their skill set.
"We recognise within the industry there is a vast range of skills and good industry knowledge, as well as legal and financial acumen, but there is also the provision to appoint up to two people from outside industry if necessary," he said.
Mr Curtis said Livestock SA would work closely with the SA Dairyfarmers' Association to ensure all cattle producers were represented as part of the CIF.
The change brings livestock in line with other sectors collecting levies under the Primary Industry Funding Schemes Act 1998, with Grain Producers SA administering two levies and Pork SA controlling its own levy.
Any future increases in the either the SIF or CIF contribution rate will still need to be approved by the Ag Minister and then forrnally approved by Cabinet.
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