To receive woolgrower levies and matching Federal Government funds for eligible research, development and extension, AWI must negotiate a three-year Statutory Funding Agreement with the Federal Government.

The Department of Agriculture, Fisheries and Forestry (DAFF) manages the Statutory Funding Agreement on behalf of the Federal Government.

The Statutory Funding Agreement prescribes the following:

• The functions and role of AWI
• How AWI is to operate
• The management and expenditure of levies and funds
• Research and development activities eligible to attract matching government funding
• Sanctions the government can impose should AWI breach the Statutory Funding Agreement
• Activities AWI is prohibited from being involved in
• How, when and to whom AWI must report and consult

The Statutory Funding Agreement also requires AWI to undertake a poll of levy payers every three years to determine the rate of levy to be collected – known as WoolPoll.

Before WoolPoll, AWI must commission an independent Review of Performance every three years to provide woolgrowers with an objective assessment of the company’s performance.

The levy rate and investment ratio determined by woolgrowers at WoolPoll form the basis of the new Statutory Funding Agreement. In negotiating the Statutory Funding Agreement, both AWI and the Federal Government also consider the outcomes of the independent Review of Performance to ensure ongoing improvements to the company’s operations.

The next Statutory Funding Agreement is due to be negotiated by 1 July 2013.

To view the current agreement, click here (PDF 273Kb).

GOVERNMENT REPORTING AND CONSULTATION

In providing funds for eligible research, development and extension activities through the Statutory Funding Agreement, the Federal Government is AWI’s largest single shareholder.

The Statutory Funding Agreement requires AWI to meet with the Department of Agriculture, Fisheries and Forestry (DAFF) every quarter to report on company developments, performance, compliance against the Statutory Funding Agreement and other matters related to that agreement.

As one of 15 rural Research and Development Corporations, AWI also formally engages the Federal Government through joint activities including the National Research, Development and Extension Framework.

In addition to these formal requirements, AWI maintains close consultation with government representatives at the federal, state and international level, to ensure they are updated on the company’s research, development and marketing activities, and other matters of interest.