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Cost Recovery Proposals for Dairy under the Animal Products Act 1999

NZFSA Public Discussion Paper No 01/07

February 2007

ISBN number 978-0-478-29866-6
ISSN number 1174-961X

Important Disclaimer

Every effort has been made to ensure the information in this report is accurate.

NZFSA does not accept any responsibility or liability whatsoever for any error of fact, omission, interpretation or opinion that may be present, however it may have occurred.

The proposals in this paper are for consultation purposes and do not necessarily represent agreed Government policy.

Further copies :

Requests for further copies should be directed to :

Policy Group

New Zealand Food Safety Authority

PO Box 2835

WELLINGTON

Email: policy@nzfsa.govt.nz

Telephone: (04) 894 2583

Facsimile: (04) 489 2583

Submissions

NZFSA seeks submissions from all interested parties on any aspect of the proposed fees and charges presented in this document.

The following points may be of assistance in preparing comments:

• Wherever possible, comment should be specific to a particular section of the document. All major sections are numbered and these numbers should be used to link comments to the document.

• Omissions should be clearly and separately indicated.

• Comments should be to the point and, where possible, reasons and data to support comment are requested.

• The use of examples to illustrate particular points is encouraged.

• As a number of copies may be made of your comments, please use good quality type, or make sure the comments are clearly hand-written in black or blue ink.

Please include the following information in your submission:

• the title of the discussion document;

• your name and title (if applicable);

• your organisation’s name (if applicable);

• your address;

• the number(s) of the sections you are commenting on.

Please submit your response by 5.00pm on 16 April 2007.

Your comments should be sent to:

Policy Group

New Zealand Food Safety Authority

PO Box 2835

Fax: (04) 894 2583

Email: policy@nzfsa.govt.nz

Please note that your submission is public information and subject to the Official Information Act 1982. Therefore if you consider that any or all information in your submission should be treated as confidential or is commercially sensitive, please state this clearly when making your submission.

Table of Contents

1 Introduction 6

2 Background 7

3 The Process of the Review 8

4 Legislative Framework 9

4.1 Cost recovery principles in the Animal Products Act 9

4.2 Government guidelines 10

5 Services Provided 11

6 Cost of providing services 14

6.1 Current situation 14

6.2 Allocation of costs to services 15

6.3 Basis of the costs estimates 16

6.3.1 Process for calculating the costs 16

6.3.2 Generic standard setting 16

6.3.3 Limitations of the costing methodology 17

6.4 Current operating budget 2006/07 19

6.5 Estimated annual operating budget for 2007/08 19

7 Stakeholder Contributions to NZFSA Costs 20

7.1 Framework for determining service type 20

7.1.1 Public goods 20

7.1.2 Industry goods 21

7.1.3 Private goods 22

7.2 Application of the principles to NZFSA’s activities under the APA 22

7.2.1 Market Access 22

7.2.2 Export Systems and Standards 23

7.2.3 New Zealand Systems and Standards 24

7.2.4 Compliance 24

7.2.5 Generic Standards 25

7.2.6 Approvals, Accreditations and Registrations 25

7.2.7 Official Assurances (Certification) 25

7.2.8 Multilateral Standard Setting 26

7.2.9 Technical input to policy 27

7.2.10 Trans-Tasman activities 27

8 Proposed Fees and Charges – Industry Goods (NZ Standards, Market Access, Export Standards and Compliance) 28

8.1 Who pays? 28

8.2 Proposed fees and charges 30

8.2.1 NZ Systems and Standards 31

8.2.2 Market Access 31

8.2.3 Export Standards and Systems 32

8.2.4 Compliance 32

9 Proposed Fees and Charges – Private Goods (Approvals, Accreditations, Registrations and Official Assurances (Certification)) 33

9.1 Approvals, Accreditations and Registrations 33

9.2 Proposals 33

9.3 Proposed approval fees and charges (GST Inclusive) 34

9.4 Hourly rate charges 36

9.5 Official Assurances (Certification) GST excl 37

Appendix 1: Fee Calculation Workings 38

Appendix 2: Estimated Annual Operating Budget for 2007/08 (GST Excl) 44