Funding review of plant and forestry exports

Logs

Biosecurity New Zealand (BNZ) is undertaking a funding review of its services for the export of plants and forestry products. This follows a review of its cost recovery mechanisms and charges for live animal and germplasm exports under the Animal Products Act 1999.

Objectives of review

The purpose of this review is to formalise regular consultation with industry groups and develop simple charging mechanisms that are easy to implement. This will give greater certainty to industries and will allow BNZ to establish better reporting systems that can assist in future planning and reviews. The key objective is to have equitable, efficient, justifiable and transparent charges for recovering the costs of services.

BNZ intends to consult with industry, at least annually, to set actual fees and charges within the proposed charging mechanism to provide for changing budgets and work schedules. Any changes to cost recovery mechanisms and charges will take effect from 1 July 2007.

Role of BNZ's Exports Group

BNZ's Exports Group is responsible for providing official assurances to overseas governments about certain products being exported. BNZ certifies all forestry, horticultural and arable plant products exported from New Zealand. For example, if the importing country requires an official assurance, the exporter of a kiwifruit consignment pays for BNZ to certify its phytosanitary status.

Role of the New Zealand Food Safety Authority

Included within the scope of this funding review are costs incurred by the New Zealand Food Safety Authority (NZFSA) for the export of plant food products. Both BNZ and NZFSA use the same regulatory model to support their official assurance regimes, although their responsibilities differ. This review does not address the content of their respective official assurance regimes.

NZFSA provides assurance to consumers of New Zealand's plant food products that those foods are safe and true to their label. The Exports Standards Group also provides an official assurance programme for organic plant foods that are exported to the European Union, an agrichemical residue assurance standard for fresh plant products and a quality grade assurance programme.

Consultation

Government guidelines require BNZ to consult with affected parties to develop cost recovery mechanisms that best meet government requirements while taking into account the expectations and needs of stakeholders. A reference group drawn from BNZ, NZFSA, and representatives from the horticultural, arable and forestry sectors has assisted with this funding review.

BNZ has recently met with the Plants Market Access Council (PMAC) and the Forest Products Export Council (FPEC) at five various meetings in Wellington. Both groups indicated a desire for charging mechanisms that are clear and easy to implement commercially. The proposed charging mechanisms for future cost recovery have been developed and endorsed by the working groups as a result of these discussions.

BNZ intends to release a public discussion paper with proposals for cost recovery mechanisms in March 2007.

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Page last updated: 30 April 2008