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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 3: Wet Fish Sector

Introduction

This section details the recovery costs of Industry Goods for primary processors of wetfish.

Costs to be recovered from sector

The costs of services provided to the sector are²

Service	Cost	Payable from
New Zealand Standards and Systems	$238,400	All domestic and export primary processors
Market Access	$64,443	Export primary processors
Export Standards	$95,111	Export primary processors

Current situation

Primary processors of fish other than bivalve molluscan shellfish are charged $2,266 p.a. per processor. The respective charges for the two types of fish processors are set proportionate to NZFSA’s estimated programme expenditure for the respective plants. Fishing vessels are charged a levy of $384 per month (with a fee waiver at $217 per month).

Cost Recovery options

1. Fixed annual charge per processor

All processors (73) $1,987 p.a.

Export processors (73) $1,450 p.a.

TOTAL $3,437 p.a.

Per vessel $286 per month

2. Levy Based (tonnes processed)

All processors (525,000 tonnes) $0.45 per tonne

Export processors (472,500 tonnes) $0.34 per tonne

Total for Export Processors $0.79 per tonne

The impact of applying a levy or differentiating fixed charges on a large, medium, small business size/scale would result in the two large processing companies paying around 54% of the total costs, five medium sized companies paying 20% (4% each) and small companies the balance between them.

Option to include secondary processing in primary processors costs

If secondary processing costs are added to primary processing the rates would be:

3. Fixed annual charge (including secondary processing costs)

All processors (73) $2,465 p.a.

Export processors (73) $1,499 p.a.

TOTAL $3,964 p.a.

Per vessel $330 per month

4. Levy Based (including secondary processing costs) (tonnes processed)

All processors (525,000 tonnes) $0.56 per tonne

Export processors (472,500 tonnes) $0.34 per tonne

Total for Export Processors $0.90 per tonne

² Please note those proposals are in addition to NZFSA Verification Agency annual charges.