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Cost Recovery Proposals for Dairy under the Animal Products Act 1999

1 Introduction

The purpose of this discussion paper is to present proposals for consideration to amend the cost recovery regulations for the dairy industry under the Animal Products Act 1999 (Animal Products Act or APA). It is proposed that existing fees and charges be increased to recover the full cost of the services provided by the New Zealand Food Safety Authority (NZFSA).

This paper should be read in conjunction with NZFSA’s Information paper ‘Cost Recovery Policy and Framework’ August 2006 (available from www.nzfsa.govt.nz ), which documents the policy basis for the proposals in this paper.

The paper has several key sections:

Section 4 details the policy and legislative framework that NZFSA is following

Section 5 lists the services NZFSA provides to the dairy industry which are subject to the cost recovery proposals to increase the fees and charges under the Animal Products (Dairy Industry Fees and Charges) Regulations 2005

Section 6 details the costs of providing these services including how they are calculated

Section 7 details the criteria for determining the Crown and industry contributions to the costs of providing NZFSA services

Section 8 sets out the proposed fees and charges – for industry goods – market access and export standards, New Zealand standards, and compliance activities

Section 9 sets out the proposed fees and charges – for private goods – approvals, accreditations, registrations and official assurances (certification).

This discussion paper outlines the cost recovery principals 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.