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AgVetLink: Number 57, August 2006

Cost recovery

In 2005/2006 NZFSA has been appropriated $81.540 million (Vote Food Safety). Of the appropriation, Crown revenue is $25.629 million (31 per cent) and the remaining $55.911 million (69 per cent) is to be cost recovered from industry.

Review of funding

In 2003, NZFSA undertook a review of Crown/other funding across NZFSA and a review of the implications of harmonisation of cost recovery across the various groups involved in this activity in NZFSA. The review found the public/private funding mix varies markedly:

• Agricultural compounds and veterinary medicines – over 80 per cent privately funded;

• Animal products (including meat, fish and dairy) – over 80 per cent privately funded;

• Organics and plants – 60-70 per cent privately funded;

• Wine, domestic food and imports – less than 20 per cent privately funded.

In addition, the degree of differences in the charging structures for similar services across NZFSA’s directorates/sectors is notable. These variations are being addressed through a programme of harmonisation of cost recovery policy and methods throughout NZFSA.

Over the next 12 months major cost recovery projects under the Animal Products Act 1999 and the progression of the Domestic Food Review will provide a model that will have broader applicability across other areas of NZFSA subject to cost recovery. Amendments will also be made to existing cost recovery regulations, including the ACVM Fees and Charges Regulations 2002.