GIA Update 2016
Contributed by Chris Smellie, NZFGA
2016 has not seen a lot activity re GIA but an update is now due.
Government Industry Agreement [GIA]
Late last year on 29th of Oct Frans Van Dorsser and I attended a GIA workshop in Wellington at which there was some discussion around the concept of ‘Cost Recovery’; i.e. sharing the cost of bio security cleanups after a pest incursion, with all benefitting sectors. In the newsletter of November 2015 an article on GIA entitled ‘Primary Industries face a new set of Costs’, some detail on cost recovery and its implications were outlined.
Since then the Association (NZFGA) has only had communication from the GIA secretariat with regard to a review of the GIA Deed [governing statement].
However since then more producer groups have become GIA partners bringing the total to 10 [including MPI], there are a further 4 applications before the Minister and it is expected that by Christmas there may be 16 producer groups who are GIA signatories.
Perhaps more significantly over that period a ‘Fruit Fly Operational Agreement’ [OA] has been achieved and signed on 9th May, it will take effect mid 2016. It sets out how government and industry [signatories] will work together to prepare for and manage fruit fly incursions – Queensland, Mediterranean, Oriental & Melon, fruit fly - only ‘Deed signatories’ can become signatories to the operational agreement. Initial signatories to the operational agreement are: Pipfruit NZ, Kiwifruit Vine Health, NZ Avocado, NZ Citrus Growers Incorporated and MPI. Under the OA parties will agree, implement and fund a readiness work programme, to guide fruit fly management activities. The OA also sets out the rights, responsibilities, and liabilities of all parties involved in any response to a fruit fly incursion. Cost sharing between government and benefiting industries is for both readiness and response – details of cost sharing are:
Cost Sharing:
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Cost sharing for fruit fly readiness and response activities commences when the OA comes into full effect.
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The costs will be shared by the Government and industry as follows:
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70% Govt:30% Industry for readiness (annual cost)
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70% Govt:30% Industry for a Level 1 response
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80% Govt:20% Industry for a Level 2 response
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90% Govt:10% Industry for a Level 3 response
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The Government will pay the first 20% of costs on behalf of risk exacerbators
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Industry cost contributions will be shared based on industry value (first point of sale averaged over 4 years), which will be updated annually.
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Contributions can also be made to readiness and response activities in the form of in-kind contributions.
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Current annual readiness costs are approximately $1.85M. The share across all industries is 30% of $1.48m ($1.85M minus 20% risk exacerbator cost) per year.
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Response costs are limited by a fiscal cap.
Costs associated with readiness will occur every year, but costs for responses will occur only when fruit fly is detected in New Zealand
Non-Signatory Beneficiaries:
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MPI will seek to cost recover from Non-Signatory Beneficiaries identified in the Operational Agreement when a cost recovery mechanism has been implemented, and where it is cost effective to do so. The Non-Signatory Beneficiaries identified in the OA include:
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Tomatoes (consisting of commercial fresh Tomato growers)
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Summerfruit (consisting of commercial Apricot, cherry, Nectarine, Peach and Plum growers)
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Buttercup Squash (consisting of Buttercup squash growers)
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Capsicum and Chillies (consisting of commercial Capsicum and Chilli growers)
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Cucumbers (consisting of commercial Cucumber growers)
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Melons (consisting of commercial Melon growers)
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Eggplant (consisting of commercial Eggplant growers)
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Cucurbita other (consisting of commercial Pumpkin, Zucchini, Choko growers)
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Blueberries (consisting of blueberry growers)
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Persimmons (consisting of commercial Persimmon growers)
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Boysenberry (consisting of commercial Boysenberry growers)
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Feijoa (consisting of commercial Feijoa growers)
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Passionfruit (consisting of commercial Passionfruit growers)
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Nashi (consisting of commercial nashi pear growers)
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Tamarillo (consisting of commercial Tamarillo growers)
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As can be seen producers of cut flowers are not included as beneficiaries of a fruit fly cleanup. However this operational agreement is a landmark agreement, as it is the first of many such agreements which will follow the same pattern.
Full detail on this initial agreement can be viewed by going to the GIA NZ website article, http://www.gia.org.nz/Activities/Fruit-fly-Operational-Agreement to view the summary operational agreement or for more information
A Full understanding of the Biosecurity Threats to NZ .
A Little over a year ago at Lincoln University a forum was held – ‘The Lincoln University Biosecurity Forum’ which brought together New Zealand’s experts on NZ Biosecurity. John Mc Crone of Fairfax Media produced an indepth and somewhat alarming report –“Does the New Zealand economy stand with its toes on the Biosecurity precipice?”
Follow the link to discover the full (and fairly terrifying) story
Chris Smellie - Executive Officer NZFGA
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