CUT FLOWER

MPI reviews food safety, biosecurity services costs

20 January 2015

The proposals update the amount the Ministry for Primary Industries (MPI) charges industry to provide food safety and biosecurity services.

“Biosecurity and food safety are critical to the operation and viability of New Zealand’s primary industries. Without these systems, New Zealand’s $38.3 billion primary sector exports would never get past importing countries’ borders and New Zealand’s primary industries would be exposed to a much greater risk of potentially devastating pests and diseases,” says Dan Bolger, MPI’s Deputy Director-General, Office of the Director-General. “Over and above that benefit to industry, the systems ensure the safety for consumers of New Zealand products, at home and abroad.” 

The consultation marks the first review of fees to support the biosecurity system since the Ministry for Primary Industries was formed in 2011. It is the first review of food safety fees since 2008.

“Since that time demand for MPI’s services has increased, driven by increasing imports and exports as well as a greater number of food businesses. In addition to a rising volume of services required, inflation pressure has meant that the real cost of delivering services is also increasing,” Bolger said. “The different systems for recovering costs from industry were not developed at the same time. Over time this has led to potential inequities in current charges. The proposals are designed to address these inequities and ensure all industry – large and small – is treated fairly.

He added, “MPI has managed to keep costs down by improving efficiency while still maintaining its high quality of service. However change is needed to continue to ensure the quality of our systems is maintained. We need to strike the right balance between making sure that costs are fair, and making sure the Ministry is getting the right amount of money to continue doing the job for industry and New Zealand.

“The proposals amount to a total increase of $12.8 million across the food and biosecurity systems. To put this in context, the total amount being proposed to support both systems is a small fraction of one percent of New Zealand’s $38.3 billion primary industries,” Bolger said.

“Feedback from industry and the public is an important part of getting these updates to fee rates right. I encourage you to take part in this consultation.”

The proposals at a glance:

  • Update to over 250 biosecurity and food safety fees, charges and levies;
  • Changes to regulations which ensure fairness, clarify intent and reduce red tape;
  • Increase the amount recovered from industry for biosecurity by $6.0 million to $36.4 million;
  • Increase the amount recovered from industry for food safety by $6.8 million to $62.1 million. 

Interested parties can read the proposals in detail and find out how to make a submission on MPI’s website: https://mpi.govt.nz/news-and-resources/consultations/

The deadline for submissions is 20 February 2015.