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Cost Recovery Proposals under the Animal Products Act 1999

12 Regulatory Impacts and Business Compliance Costs

The proposals will have some significant regulatory impacts on the sector. It is anticipated that the main impacts are:

• fees and charges will increase (double) for approval, accreditation and registration type functions, this will impact on all persons operating under the Animal Products Act

• persons operating in the poultry, eggs, bee and honey sector will be subject to programme rated charges that they previously did not have to pay. if charges are based on business size or throughput. This will have a significant impact on the three large operators in the poultry sector.

• a move away from a uniform fixed annual charge in the seafood and shell fish sectors will result in significant cost increases for large operators. Two large operators will meet between them 54% of the costs, while five medium operators will meet between them around 20% of the costs.

• domestic only meat, seafood and shellfish operators will have reduction in annual programme costs.

Business Compliance Costs

Government requires business compliance costs to be explicitly considered in the development of any regulatory proposals.

Compliance costs are the administrative and paper work costs to business in meeting government requirements. They include the costs associated with identifying and understanding regulatory requirements. Compliance costs are not the direct costs of the provision of a good or service.

The costs of complying with cost recovery requirements would be minor and relate to administrative responsibilities such as paying invoices and supply of data.