MAF eyes boost in some biosecurity fees

Ministry of Agriculture and Forestry (MAF) officials are eyeing a boost in cost-recovery fees for some biosecurity checks at the border.

The average annual cost to be recovered from industry over the next three years is estimated to be an average $23 million a year, up from $21.7 million in 2008-2009.

The increase is part of a three-yearly review of cost-recovery, MAF Deputy Director-General Barry O'Neil told Parliament's primary product select committee last week. In the review, MAF is offering two options:

* Modify the existing structure of fees and charges by amending costs regulations and revising the rates for risk screening and shipping container levies; or,

* Simplify the charging regime by recovering a greater share of the costs through a single biosecurity system entry levy on all imported goods crossing the border, and removing shipping container and gypsy moth levies.

The second option would likely be more favourable for most large importers and some small importers who now pay three levies, zone fees and hourly inspection charges on each consignment of imported goods.

Under this option, staff carrying out screening would continue to be charged out at $100/hour, there would be a 62 per cent increase in car inspections to $40.50, and a 56 per cent increase for an import health standard permit, to $163. A $160 annual fee would be charged for containment facilities.

If the Government approved a proposed "joint border management system" with Customs then the biosecurity levy would be reviewed next year to help fund MAF's share of the costs, with new fees taking effect in 2012, when the first phase of the new system started.

Additional operating costs likely to be recovered from industry were expected to be approximately $18 million a year - with fees boosted across both agencies by about 30 per cent in 2012, rising to approximately 47 per cent from 2014 when the system was fully implemented.

MAF had been hard-hit by the global recession as a 13 per cent drop in container volumes and a drop from 150,000 second-hand cars to 60,000 left it with a $4.6 million deficit because it had too many staff for the cargo on which it was recovering costs from importers.

- NZPA