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Cost Recovery Proposal under the Animal Products (Dairy Industry Fees and Charges) Regulations 2007

The New Zealand Food Safety Authority (NZFSA) is inviting public comment on a discussion document proposing to charge dairy quota holders quantity fees based on the percentage of quota allocated (in tonnes) to each company in any given year.  The proposals in the discussion document apply to processors of dairy material or products intended for those markets within the context of the Animal Products Act 1999 (Animal Products Act) and the Dairy Industry Restructuring Act 2001 (DIRA).

Under the DIRA, the New Zealand Dairy Board, a wholly owned subsidiary of Fonterra Cooperative Group Ltd (Fonterra) held initial exclusive access to dairy quota markets.

On 15 December 2007 DIRA amendments came into force.  The amended DIRA puts in place the policy framework to reallocate rights to designated dairy quota markets.  It provides for the rights to export to designated dairy quota markets after the expiry of the initial allocations to the New Zealand Dairy Board.  These amendments will allow a wider group of dairy processors to participate in the exporting to these markets to provide future certainty to the industry.

A new package will be required under the Animal Products Act to manage the certification, monitoring, compliance and enforcement rights to designated dairy quota markets.  As part of this package, Government has agreed to a new Regulated Control Scheme, by way of regulations, under the Animal Products Act. 

NZFSA’s involvement in running the new system is to manage the certification and enforcement functions for rights allocated to the regulated dairy markets.  NZFSA consulted on proposals for a Dairy Quota Regulated Control Scheme in August 2007. 

NZFSA has identified that the full cost of providing certification and reconciliation services would be recovered from quota license holders, and would be incorporated appropriately in amendments to the Animal Products (Dairy Industry Fees and Charges) Regulations 2007.  The discussion document outlines how NZFSA intends to recover costs.

Summary of Proposed Change

NZFSA proposes to charge dairy quota holders ‘quantity’ fees based on the percentage of quota allocated (in tonnes) to each company in any given year.

Discussion Document

The discussion document can be downloaded here:

http://www.nzfsa.govt.nz/policy-law/consultation/dairy-quota-cost-recovery/

Submissions

NZFSA seeks submissions from all interested parties on any aspect of the policy proposals to charge dairy quota holders quantity fees based on the percentage of quota allocated (in tonnes) to each company in any given year.  Clear concise comments will greatly assist in ensuring that the significance of your comments is understood. Please include the following information in your submission:

• the title of the discussion document

• name and title of submitter

• your organisation’s name (if applicable)

• submitter’s address and contact details (phone, email if available) and

• the number(s) of the section(s) commented on beside each comment.

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.

Please note that the deadline for receipt of submissions is 5pm Tuesday 3 June 2008.

For Further Information

Queries should be directed to:

Lisa Ralph
Policy Group
New Zealand Food Safety Authority
PO Box 2835
WELLINGTON

Email: policy@nzfsa.govt.nz
Facsimile: 04 894 2583
Phone: 04 894 2456