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Cost Recovery Proposals under the Animal Products Act 1999

1 Introduction

The purpose of this discussion paper is to present proposals for consideration for cost recovery under the Animal Products Act 1999 (Animal Products Act). It should be read in conjunction with the NZFSA Information paper ‘Cost Recovery Policy and Framework’ August 2006. The numbers presented are indicative of the final budget for 2007-2008 but gives examples of the impact of different charging mechanisms. Further consultation will occur, if necessary, in early 2007 on actual fees, levies and charges once the charging mechanisms have been finalised.

The paper has several key sections

Section Four details the policy and legislative framework that NZFSA is following

Section Five lists the services NZFSA provides to industry which are subject to the cost recovery proposals in this document.

Section Six details the costs of providing the services including how they are calculated

Section Seven categorises the services into public, private and industry goods and, based on those categories, proposes crown or industry funding.

Section Eight uses case studies to discuss where industry pays, who in industry it is best to charge.

Section Nine details the possible charging mechanisms

Section Ten proposes fees and charges for approval accreditation and registration functions

Section Eleven proposes the methodology for determining the mechanisms (fees, charges or levies) options for industry goods

Accompanying attachments have specific industry proposals on a sector by sector basis.

This discussion paper outlines the cost recovery principles and methods provided for in the Animal Products Act. In determining who should pay for the different service areas the Treasury Guidelines for Setting Charges in the Public Sector and the Audit Office Guidelines on Costing and Charging for Public Sector Goods and Services have also been taken into account. This paper also takes into account the constitutional principles as set out in Parliament’s Standing Orders and guidance received from reports of the Regulations Review Committee

The guidelines and legislative requirements have been consolidated into the NZFSA Background Paper ‘Cost Recovery Policy and Framework’ 29 August 2006 (available from www.nzfsa.govt.nz), which documents the policy basis for the proposals in this paper.