WORKING TOGETHER TO PROTECT OUR FUTURE FROM EXOTIC PESTS AND DISEASES

Transcription

1 WORKING TOGETHER TO PROTECT OUR FUTURE FROM EXOTIC PESTS AND DISEASES Proposal to sign the Government Industry Agreement Deed (GIA) and to fund GIA readiness and response commitments using a new Sheepmeat and Beef Producer Biosecurity Levy

2 Biosecurity: It s Our Business Farmers consistently tell us that biosecurity risks are among the biggest issues we face as an industry. Through your Beef + Lamb New Zealand (B+LNZ) sheep and beef levies, we already invest in managing this risk in several ways, for example: We work with the Ministry for Primary Industries (MPI) to develop response plans for foot-and-mouth disease (FMD). We provide industry resources and training for incursion responses, such as the recent Mycoplasma bovis (M. bovis) outbreak. Together with Deer Industry New Zealand (DINZ), we have prepared on-farm biosecurity guidelines to help farmers manage the risk to their farms. Currently, when decisions are being made about how New Zealand prepares to respond to an exotic pest or disease incursion and, more importantly, what to do during an actual response, we are in the room and consulted, but it is the Government that makes all the final decisions. That is why we re seeking your support for us to join other primary sector groups in signing the Government Industry Agreement for Biosecurity Readiness and Response Deed (the GIA). Signing the GIA would give sheep and beef farmers, through B+LNZ, a seat at the biosecurity decision-making table. Alongside other GIA Signatories, we would have more direct influence on biosecurity preparedness and response decision-making. Government policy is that those who benefit from biosecurity responses must pay so there would be some costs associated with signing the GIA. Contributions to biosecurity readiness and response costs would depend on the significance of the pest or disease to our sector and a funding limit we could choose to set as part of a GIA Operational Agreement. We are confident that the benefits of signing the GIA, with increased certainty and control over our own biosecurity destiny, justifies potential costs. We would be betterprepared, have a pre-agreed set of minimum readiness and response commitments between industry and government, and agreed limits on our industry s potential cost-share for readiness and response activities. If we don t sign the GIA, we would be unlikely to improve our influence over the decisions that affect our sector. The Government has also indicated it intends to use powers under the Biosecurity Act 1993 to recover costs from industries that benefit from readiness and response activities if they have not signed the GIA. That would be a poor outcome for our sector and we would lose the opportunity to work together with government and other industries under the GIA to manage fundamental risks to all livestock farmers. If we proceed with our GIA application, we need to show the Minister for Primary Industries that we have your support. Therefore, regardless of what B+LNZ thinks, it is what you think that matters. So, we encourage you to have a say on this significant choice for our sector. This brochure sets out the specifics of B+LNZ s proposal to sign the GIA and how we will: represent your views in GIA decision-making fund our GIA commitments, including by way of a new biosecurity readiness and response levy. Representatives of the dairy and sheep meat and beef processing sectors have already signed the GIA. If we do not join GIA, these and other livestock bodies, rather than B+LNZ, would make decisions on incursion responses that have consequences for our sector.

3 WHAT WE WANT YOU TO DO step 1 Please read this B+LNZ brochure and the accompanying Summary Document. You can also view and download a larger, more detailed Discussion Document at step 2 Most importantly, please tell us what you think by making a submission on our proposals. Although we have included a paper submission form, we encourage you to make your submission using the online form option as this will enable us to collate and analyse your submissions more easily. step 3 Please go to to make your online submission before 6 December. Once we have received your feedback, this will be compiled and considered by the B+LNZ Board prior to any decision. B+LNZ intends to publish a summary of feedback we receive so our farmers have an opportunity to learn what others had to say. If, before submitting your views, you have any questions or would like to discuss this proposal directly, please phone 0800 BEEFLAMB ( ) or GIA@beeflambnz.com KEY DATES MORE INFORMATION 31 October 2017 Consultation opens 6 December Consultation closes. Submissions must be received by 12 noon. 6 to 20 December B+LNZ compiles and reviews submissions and other feedback before making a decision about whether or not to seek recognition from the Minister that we have a mandate to sign the GIA Deed. 22 December If there is clear support for our proposals, this is the date by which we will aim to submit our application to be a GIA Signatory to the Minister for Primary Industries. The larger Discussion Document (referred to above) and the Summary Document accompanying this brochure were jointly developed with DairyNZ, Deer Industry New Zealand and Federated Farmers. The Discussion Document includes additional information on a draft Foot and Mouth Disease Operational Agreement (FMD-OA), minimum commitments under the FMD-OA, and how funding shares would be determined. There is also an appendix with several GIA questions and answers. We will be providing other opportunities for you to have your say including: a teleconference for all farmers to hear about the proposal we will let you know further details about this Members of the B+LNZ team will be on hand to answer questions at various B+LNZ events We will also include information on the GIA proposal in our regular e-diaries to all farmers. To find out more about the GIA Deed and other GIA matters generally, please visit: For more information on the GIA and its potential impact for sheep and beef farmers specifically, visit

4 PROPOSALS Proposal to become a GIA Signatory B+LNZ considers the sector it represents (i.e. all sheepmeat and beef producers) to be a beneficiary of readiness and response activities for exotic pests and diseases, which would directly impact upon the production of meat, meat quality and the access of meat and meat products to overseas markets. For the reasons outlined in the Discussion Document online and the Summary Document that accompanied this brochure, we propose that B+LNZ signs the GIA. This brochure sets out some further B+LNZ-specific detail about our representation and funding arrangements (including a new biosecurity levy), if we were to become a GIA Signatory. Proposal for sector representation in GIA decision-making The B+LNZ Board would be accountable for decisions made by B+LNZ within the GIA. The Board will appoint representatives to the GIA Deed Governance Group and the Livestock Sector Council (LSC). This could be the same, or different, person(s). The Board will delegate to its representatives appropriate decision-making powers to enable them to act and make GIA commitments on behalf of the Board and our sector. Representatives would use this authority in consultation with the B+LNZ Chair, the wider Board, and others to make sure decisions made are consistent with our sector s interests and capabilities. Decisions regarding the entry into GIA Operational Agreements would be made by the Board. Under normal circumstances, the Board s decision would be based on consultation with farmers via B+LNZ s usual communication channels. When there is a response covered by an Operational Agreement we are a Party to, the B+LNZ Board will appoint a suitably qualified and skilled representative to act on the Response Governance Group. That representative will be delegated the powers they need to make commitments on behalf of B+LNZ subject to seeking Board input on certain matters and providing the Board regular progress reports. An incursion of a previously unknown or unexpected organism of significance to the livestock sector could occur. In this situation, we may need to rapidly agree an Operational Agreement to respond to that organism. In these situations, the B+LNZ representative on the LSC would be empowered to make appropriate commitments on behalf of B+LNZ. As indicated above, the Board would also appoint a representative to act on the Response Governance Group.

5 Funding proposals and implications of GIA commitments Before we can sign the GIA, we must also say how we would fund our commitments under the Deed and any other activities that B+LNZ may choose to make through GIA Operational Agreements. Please review the Discussion Document for information on how costshares between government and industry and between industry sectors will be determined for GIA Operational Agreements. If we become a GIA Signatory, we propose to fund our GIA commitments in the following two ways: Existing sheepmeat and beef levies, under the Commodity Levies Act 1990, would be used to fund our GIA minimum commitments and business as usual readiness work. Funding commitments under the GIA would depend on many things. For example, whether the exotic pest or disease impacts only on production, or whether there are wider impacts. Where more than one sector will benefit from readiness and response activities, there is also a need to consider the relative impacts on each sector. A new biosecurity readiness and response levy: under the Biosecurity Act 1993, the Sheepmeat and Beef Producer Biosecurity Levy would be used to fund our contributions to incursion response costs under GIA Operational Agreements and, potentially, to fund significant, new, specific and time-bound biosecurity readiness projects. B+LNZ would not commit to funding a share of biosecurity readiness and response activities under the GIA that exceed our sector s share of benefit from those activities. Benefit will be determined on the basis of the sector s farm gate value of production and impact of the pest or disease, relative to benefits to other industries and (where possible) assessment of public benefit. The proposed new biosecurity levy, discussed in more detail below, would initially be set at zero. It would move from zero only when the industry, through B+LNZ, decided to commit to a significant readiness project or an incursion response. Even then, response and readiness costs would be limited by a pre-agreed maximum cap on B+LNZ s contribution for a particular response or readiness project. There are legal limits on what our sheepmeat and beef commodity levy income can be used for. While we can use commodity levy income for business as usual biosecurity and readiness activities, we cannot use those levies to fund biosecurity responses. B+LNZ will ensure that levies raised on beef will only be used on pests and diseases affecting beef production and not those specific to sheep, and vice versa. Where both species are impacted, costs will be split based on the separate impacts on sheepmeat and beef.

6 The proposed biosecurity readiness and response levy The points below cover all the matters that must be included in the Levy Order that would be made under the Biosecurity Act Our Sheepmeat and Beef Producer Biosecurity Levy proposals are that the levies: would be paid to B+LNZ if activated, would be spent on: - meeting the sheepmeat and beef sector s preagreed contributions to biosecurity responses; and/or - contributing to significant, targeted and time-bound biosecurity readiness projects would be used to fund a maximum of $2.5 million in any 12-month period for GIA readiness and/or response activities. This represents B+LNZ s annual fiscal cap within GIA, across any and all commitments funded by Sheepmeat and Beef Producer Biosecurity Levies. would be paid, without exception, by all sheepmeat and beef farmers (including dairy culls, but excluding bobby calves) 1. would be calculated on the basis of animals slaughtered and set as a dollar amount (GST exclusive) per animal slaughtered. Levies will not be collected from animals that are wholly condemned prior to be weighed as a hot, dressed carcase. would be zero-rated until B+LNZ signs a negotiated GIA Operational Agreement and, thereafter, would be set annually (where necessary) with maximum levy rates (GST exclusive) of: - $0.05 per head of sheep slaughtered; and - $0.45 per head for cattle slaughtered would be set in consultation with the levy payers at a level appropriate to meet our GIA funding commitments. rates (and variations of the rates) will be notified in the New Zealand Gazette and otherwise in the same manner that B+LNZ notifies meat commodity levy payers about variations to the commodity levy rates. would be collected and paid in the same manner as levies under the Commodity Levies (Meat) Order 2015 (the Meat CLO) namely, a collection agent who slaughters livestock at commercial slaughter premises would pay the levy and recover it from livestock farmer. would be subject to a collection fee of not more than 0.25% of the levy payable (exclusive of GST) plus the GST payable on the fee, and the collection agent may deduct the amount of the fee from the levy before paying the levy to B+LNZ. would involve record keeping and information requirements based on those prescribed in clause 22 of the Meat CLO. would have a robust dispute resolution process that aligns with the Arbitration Act We envisage dispute resolution procedures based on those in the Meat CLO including the ability of any party to the dispute being able to ask the President of the Arbitrators and Mediators Institute of New Zealand Incorporated to appoint a person to resolve the dispute. may be subject to audit and a person appointed as an auditor would be remunerated by B+LNZ at a rate determined by the Minister after consultation with B+LNZ. The different maximum biosecurity readiness and response levy rates proposed (in the points above) for sheepmeat and beef are sufficient to collect (in one year) the calculated share of costs attributable to producers of sheepmeat ($1.1 million) and beef ($1.2 million) associated with a single, medium-scale FMD incursion response. 2 To put this in context, the total response cost of a medium scale FMD outbreak is estimated at around $132 million. MPI would pay the 20% of response costs as the exacerbators share. A 90:10 government-industry cost share ratio would then apply to the remaining 80%. This means that the Government s share of the total responses costs would be 92% ($ million) and affected industries would cost-share the remaining 8% ($10.56 million). As per the attributed costs above, the total, combined cost-share for sheepmeat and beef (based on the farm gate value of each relative to other affected industries) would be $2.3 million. The proposed maximum per head levy rates for sheep and beef are based on kill data for The levy would be levied on meat, as defined in the Commodity Levies (Meat) Order 2015 (the Meat CLO) calculated on the basis of livestock (per head) slaughtered in commercial slaughter premises (as defined in the Meat CLO). 2 Foot-and-Mouth Disease Economic Impact Assessment: What it means for New Zealand MPI Technical Paper No: 2014/18 available at:

7 GIA consultation submission form Information for submitters We welcome your feedback! Once consultation closes, we will analyse the submissions and the Board will consider all the points raised by submitters before determining whether to apply to join the GIA. Name: Phone: Postal address: Responses to consultation questions Please answer all the questions. Please print or write clearly. Signing the GIA Deed B+LNZ is the industry organisation that represents the interests of New Zealand sheepmeat and beef farmers. B+LNZ, like many other primary sector organisations, proposes to become a GIA Signatory. B+LNZ considers that it is in the best interests of our sector to sign the GIA. Cut along fold and return form Question 1: Do you support B+LNZ becoming a GIA Signatory? Please explain the reasons for your answer: Representing the views of sheepmeat and beef farmers in GIA decision-making processes Sheepmeat and beef farmers views in the GIA decision-making processes will be through the B+LNZ Board and/or representatives appointed by the Board. Yes No Question 2: Are you satisfied with how B+LNZ proposes to represent sheepmeat and beef farmers views in the GIA decision-making processes? Please explain the reasons for your answer: Yes No Funding B+LNZ s commitments under the GIA Simply signing the GIA does not require any new funding. It is proposed that B+LNZ s minimum GIA commitments and business as usual biosecurity readiness would be funded out of existing B+LNZ meat commodity levies. However, any additional GIA readiness and response costs, once agreed (i.e. through a GIA Operational Agreement) would be funded by a new levy under the Biosecurity Act. Question 3: Do you support the proposed arrangements for funding B+LNZ s commitments under the GIA, including the new Sheepmeat and Beef Production Biosecurity Levy? Please explain the reasons for your answer: Yes No Please use and attach more paper if there is not enough room for your answers here.

8 Fold along here second and tape down FreePost Authority Number 429 FreePost 429 Beef + Lamb New Zealand Ltd PO Box 121 Wellington 6140 Fold along here first 0800 BEEFLAMB ( ) BY FARMERS. FOR FARMERS