Biosecurity Response Levy

Yes, we have previously said at the tail end of the response phase the response levy would drop down as we move to having no active, confirmed properties.

No, as recently as late last year we were still getting a few infected properties and may yet see more. However, we currently have zero active, confirmed properties, and work is being done on the next phase of the programme, to ensure we can declare New Zealand’s absence of M. bovis with confidence.

It’s unlikely, given the current progress and we have factored in the possibility of a few more infected properties in next year’s budget.

From the start of the eradication programme, we knew there would be a point where we would move from a Response into a National Pest Management Plan (NPMP). Arising from our M. bovis NPMP consultation late last year, Cabinet will make decisions around that in due course.

A lower order sharemilker will pay the portion of the Biosecurity Response Levy, depending on their contract. For example, if the sharemilking agreement is set at 22%, that sharemilker will be paying 2.9c on 22% of the farms production (2.9c is the rate set for 1 September 2019 – 31 May 2020). Whereas a 50/50 sharemilker will pay 2.9c on 50% of the farms production.

Yes this is a separate levy, managed by DairyNZ and paid to MPI.

The money can only be spent on response and recovery of an incursion. We are paying back the response costs after they are accrued. The levy will drop down with the response costs. By DairyNZ managing the Biosecurity Response Levy, farmers get more assurance that it will be spent on response activity and we have a seat at the decision making table. We will let farmers know each year what the levy will be.

There is always the risk of unwanted pests and diseases making their way to New Zealand and affecting dairy farming. The GIA commits industry and government to work together in partnership to improve readiness for future biosecurity events, and jointly respond to future outbreaks. By working together, we can be better prepared at stopping or immediately finding new arrivals, and as such reduce the damage from incursions, and have more certainty that we can eradicate.

DairyNZ has leveraged significant government funding in this partnership, with government funding 68% of the M bovis response. Government are not obligated to pay for biosecurity responses and using GIA we can get agreed contributions from Government tax payer money to fund both the M bovis and future biosecurity responses.

By signing up to GIA we have a seat at the decision-making table in setting biosecurity priorities. Non-GIA signatory beneficiaries are going to still be required to pay, but they won’t have any decision-making rights.

Yes, once a response starts you will have to pay if you benefit from the response, either through an agreement with other GIA partners that sign up to the response, or if you don’t sign up to an operational agreement MPI will still impose biosecurity levies to cover your share of the costs.

There are currently 21 GIA signatories, and all the significant animal and horticulture sectors have joined. MPI has been developing the policy and regulatory framework needed so that non-GIA signatory beneficiaries will be paying their share, but they won’t have any decision-making rights. The bottom line is industry will need to contribute to biosecurity responses, either by an imposed levy or through negotiation of funding proportion through a GIA operational agreement. Industry stand to get a better deal through the GIA route.

The DairyNZ Board has and will be prudent in only entering into commitments that can be funded. DairyNZ on your behalf decides what it will sign up for and whether we are beneficiaries of any response. We then negotiate with Government and other sector beneficiaries on fair and equitable cost shares specific to a response. The DairyNZ Board will make sure that liability is limited before we sign up to any commitment.