Ministry scopes biosecurity levy

Farmers could be hit with another tax as the Government reviews its biosecurity funding.

The Ministry for Primary Industries (MPI) confirmed yesterday it had been asked to investigate an additional revenue stream such as a levy, as part of the overhaul of the Biosecurity Act.

Speaking at the primary production select committee, MPI director-general Ray Smith said the Government had asked MPI to provide advice on the ‘‘idea’’ of a levy.

National Party biosecurity spokesman Nathan Guy asked Smith what advice MPI had given the Government about the insurance-type scheme to levy growers, farmers and the forestry sector.

But Smith said he could not discuss advice given to ministers and it was the beginning of a process.

‘‘We are undertaking this process in order to advise the Government ... They have asked us about how a levy might apply,’’ Smith said.

MPI would provide advice on the idea and then it would go thought the normal consultative mechanism, he said.

A Government Industry Agreement (GIA) on Biosecurity Readiness and Response already exists.

That partnership sees the Government and primary industry signatories share decisionmaking, responsibilities and costs of preparing for – and responding to – biosecurity incursions. Any levy would be in addition to the GIA, Smith said.

‘‘The question that is being asked of us is whether you essentially seek to levy for biosecurity events ... you establish some sort of pool to fund them rather than going out subsequent to the event,’’ Smith said.

He told the committee, whether or not it would be a levy, would be part of the advice given to Government.

There had been an idea of a broad biosecurity levy and MPI had been asked if that was something to be embraced, he said

Deputy director-general policy and trade Penny Nelson told the committee that MPI was in the early stages of scoping out how it would approach a review of the Biosecurity Act and one of the issues it would be looking at was how things were funded.

Minister for Biosecurity Damien O’Connor, who is not a member of the committee, responded afterwards, saying there was no specific proposal to add any additional levy to GIA members or partners.

A funding review was part of a comprehensive overhaul of the act.

‘‘The Minister of Finance has indicated that we have to look at how we fund biosecurity incursions over the long-term.

‘‘It is really important that we protect the industry’s position and the taxpayers’ position in a situation where globally there are increased risks ... they may occur more often.

‘‘We have got to work out a robust way of funding these properly.’’

At the moment it was a rather ‘‘messy system’’ and an ad hoc process that needed tidying up, he said.