The FRDC’s principal revenue base

As stipulated in the PIERD Act, and as shown in figure 16, the FRDC’s primary revenue source is based on:

• the Australian Government providing unmatched funds equivalent to 0.5 per cent of the average gross value of Australian fisheries production for the three preceding years (AGVP);
• fishers and aquaculturists providing contributions of at least 0.25 per cent of AGVP; and
• the Australian Government matching contributions by fishers and aquaculturists up to a maximum of 0.25 per cent of AGVP.

There is no legislative impediment to fishers and aquaculturists contributing to the FRDC above the maximum level at which the Australian Government will provide a matching contribution.

Industry contributions for the past financial year and trends for the past five years.

Details of all FRDC revenue (including investments, royalties, and sales of products, information and services) are in the financial statements.

Rationale for the FRDC’s revenue base

The high component of public good in the operating environment of wild-catch fishing has significance for the FRDC’s revenue base. The Australian Government’s contribution of 0.5 per cent of AGVP is made on the grounds that the Australian Government exercises a stewardship role in relation to fisheries resources on behalf of the Australian community.

The industry makes its contributions to the FRDC recognising that fisheries R&D will be oriented to its needs and will deliver economic and social benefits to it. In turn, the Australian Government’s matching of the industry contributions is in line with policy principles that:

• beneficiaries from research should pay roughly in proportion to the benefits received; and
• the greater the spill-over benefits, the greater the proportion the Australian Government should contribute.