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Cost Recovery Proposals under the Animal Products Act 1999

Attachment 13: Hide Skins

Introduction

This section details the recovery costs of industry goods from hide and skin operators.

Costs to be recovered from sector

The costs of services provided to the sector are:

Service	Cost	Payable from
New Zealand Standards and Systems	0
Market Access	$3,280	Export processors
Export Standards	$62,888	Export processors

Current situation

No industry good costs are currently recovered from hide and skin.

Cost Recovery options

1. Fixed annual charge

Fixed annual charge (131) $505 per operator.

2. 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.