Compensation under the Biosecurity Act 1993
MAF’s policy on compensation under the Biosecurity Act
The Biosecurity Act establishes a compensation scheme to provide incentives for early reporting of risk organisms and fairly compensate people when the Crown destroys their property using legal powers.
Compensation is payable under section 162A of the Biosecurity Act where powers under the Act are exercised for the purpose of managing or eradicating any organism. The exercise of those powers must cause verifiable loss as a result of:
- the damage to or destruction of a person’s property; or
- restrictions, imposed in accordance with Part VI or Part VII (of the Act), on the movement or disposal of a person’s goods.
Types of losses that might be eligible for compensation
The types of losses that might be eligible for compensation include:
- plants or animals, not already affected by the risk organism, that are destroyed or reduced in value;
- losses arising from restrictions on sale or movement imposed by a restricted place notice or movement controls under the Biosecurity Act.
Types of losses not eligible for compensation
Compensation is not payable under section 162A of the Biosecurity Act:
- for a loss suffered before the time when the exercise of powers commenced;
- to a person who has failed to comply with the Biosecurity Act or regulations made under the Act and whose failure has been serious or significant or has contributed to the presence of the organism or to the spread of the organism being managed or eradicated;
- for damage caused by the organism itself;
- for losses resulting from the inability to sell, display, breed or propagate affected plants, animals or property that result from the status of the organism rather than the exercise of the powers; or
- for any voluntary action undertaken that is not a result of the exercise of powers under the Biosecurity Act.
Duty to mitigate losses
All reasonable steps must be taken by affected parties to mitigate losses and thereby minimise the amount of compensation claimed.
How compensation is calculated
Compensation is calculated so that those affected are no better or worse off than any person whose property or goods are not directly affected by the exercise of the powers.
Loss is based on the value of property at the moment before the exercise of the powers commenced, or the actual cost was incurred.
It is the responsibility of the individual or organisation incurring the loss to present a claim, which must be verified by evidence. MAF may require the claimant to provide additional evidence where the information is insufficient to establish a loss/claim.
MAF will consider all claims for compensation, and offer settlement where this is consistent with section 162A of the Biosecurity Act.
The Biosecurity Act provides for arbitration where there is dispute over the eligibility for, or amount of, compensation.
Ex gratia payments
Where losses are incurred, but fall outside of what is compensatable under section 162A of the Biosecurity Act, the Crown may consider providing an ex gratia payment on a case-by-case basis.
Other government assistance in a response
The Government may choose to provide other forms of financial and non-financial support to industry, communities, or businesses in accordance with the Adverse Event Recovery Policy administered by MAF Policy.
Further information is available here 
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Applying for compensation
Key forms
Contacting MAF
- Email: Grace.Clarke@maf.govt.nz
- Postal: Attn: Biosecurity Compensation Coordinator, PO Box 2526, Wellington 6140
- Telephone: 0800 80 99 66 and ask for the Biosecurity Compensation Coordinator
Page last updated: 15 June 2011