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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 7: Bee and Honey

Introduction

This section details the recovery costs of industry goods for bee and honey producers.

Costs to be recovered from sector

The costs of services provided to the sector are

Service	Cost	Payable from
New Zealand Standards and Systems	$41,448	All domestic and export primary processors
Market Access	$2,649	Export primary processors
Export Standards	$5,475	Export primary processors

Current situation

No fees are applied to honey processors for industry goods

Cost Recovery options

1. Option - fixed annual charge

All processors (220) $188 p.a.

Export processors (220) $37 p.a.

TOTAL $225 p.a.

2. Alternative Option – Differential Charge/Levies

A levy based system may provide a more equitable distribution of costs, however, the cost of setting up and administering a levy system may negate the benefits gained. Consideration could be given to differential charges based on size of business (small, medium, large). Currently NZFSA does not have enough accurate information available to base such a charge on and therefore indicate what the respective charges would be.