Signing EADRA- Horse owners ensuring an emergency response
Signing EADRA
Horse owners ensuring an emergency response
The Emergency Animal Disease Response Agreement (EADRA) and the horse industry
Why do we need a levy?
If a serious disease occurs that affects horses (called an ‘emergency animal disease’ in the EADRA) and a major campaign is needed to get it under control, the horse community decides the maximum amount of money it will contribute as its share for combating the disease. This is 1% of the Gross value Product (GVP) for an animal sector.
The most recent estimations of the GVP value for the horse sector is $3 billion dollars so 1% is $30 million.
Because no one knows how much the total cost will be to combat a disease until the campaign is over, and the disease is eradicated or controlled , the Australian Government underwrites the response for the animal sector (it puts the money up front). The Government does this because it knows, because of the EADRA deed, that the animal sector has already decided how it would repay its share of the debt.
The levy is a debt repayment option because almost all animal sectors do not have the money to repay the debt immediately. The levy is only collected after the share of the animal sector’s debt is determined by Animal Health
Depending upon what resources were required to remove or control the disease, the debt may be any amount up to the maximum amount determined at the beginning of the campaign
The maximum levy collection period is 10 years. It may take less than this period to pay off the debt.
When will the levy collection start?.
The present decision by the horse community is that the levy be an Emergency Disease levy and it is ‘zero rated’. This means the legislation to allow the collection of the levy is put into place (how to collect the levy when needed) but no levy is to be collected until the process described above occurs – there is a emergency animal disease outbreak, EADRA is activated, there is a campaign to remove or control the disease, a debt is generated that the animal sector is required to repay.
Will the levy on the horse community be raised every time EADRA is activated.
No. The levy will only become operational if the debt is to pay for a disease campaign to combat a disease that affects horses. There are 22 diseases listed in EADRA which can affect horses. For some of these diseases, the Government will pay all of the costs, in others either the horse community pays its share alone or it pays a share together with other animal sectors.
We have had only one major emergency animal disease outbreak affecting horses within the last 30 years that has required the resources required to activate EADRA.
Levy options
A range of levy options have been suggested by the horse community via email to the Australian Horse Industry Council, through web-based forums, as decisions at formal meetings of horse sector associations and by direct email contact to this office. Approximately 400 associations and individuals made contact. Thank you everybody for the time and effort put into these responses.
Every option suggested has been evaluated with the Horse Levy Working Group against the following guidelines.
· The legality of the option as a levy (does it comply with the Australian Government requirements).
· The definition for the levy option. The horse community, the supplier of the option and the government all need to be very clear about what the levy option is.
· How equitable is the levy option across the horse community. With an animal sector as diverse as the horse community, we took notice of the options you considered to be fair for a large proportion of the horse industry.
· How many units are there on which a levy can be placed – the greater the number of units, the less the actual levy per unit when it is required..
· How many ‘levy collection points’ are there? A levy collection point is the place where the levy money is collected to be remitted to the Government. The cost to collect a levy is as important as the number of units. The aim is to have a levy option which minimises ‘red tape’ and is relatively low cost to collect. If there are too many collection points, then this increases the cost of collection. As a rule of thumb, less than 200 levy collection points can be cost effective and manageable. The cost of collection will also be met by the industry sector.
· The number of unknowns about the levy options. We could not determine or even estimate the number of units or collection points for some options. There just isn’t any information available.
· Horse community attitude to the levy option. Some levy options had strong support by some sectors and very negative responses from others. This didn’t eliminate an option from the list because we have to evaluate the positive and negative aspects of every levy option. The only reason why options were eliminated was because they are not legal options for a levy.
The levy options, in order of preference by the horse community respondents are:
- Horse wormers – Products that include pastes, pellets, liquid formulations and other products defined and registered by the Australian Pesticide and Veterinary Medicine Authority to treat internal parasites in horses.
Reliable figures available on the number of units sold each year.
All levy collection points identifiable and considerably less than 200
Respondents considered this option covered all sectors of the community, even though the usage varied between horse owners.
Regarded as a good base levy to combine with other options.
- Manufactured horse feed – a product that is modified, an adulterated feed or specialist supplement that is produced and marketed for equines or identified as an equine specific consumable product. This definition does not currently include chaff products or specialist mineral additives.
Reliable production figures but estimates on usage by the horse sector
Majority of levy collection points identifiable and less than 200.
Increasing usage of manufactured feed by some horse sectors.
- Registration – definition not yet finalised but would include sectors with mandatory registration of horses or members.
Reliable figures on horse numbers from some sectors, estimates from others. Some figures on membership from few sectors.
Number of levy collection points unknown
- Horse shoes
Approximate figures on usage available.
Levy collection points are identifiable
Usage by some sectors, declining usage described by some respondents.
- Events - no agreed definition on what constitutes a ‘unit’ to be levied.
No reliable data on number of units or levy collection points
- Microchips Electronic device used to identify the ownership of a horse with data contained in a database.
Very few units currently available to be levied.
- Slaughtered horses – horses consigned for human consumption to domestic or export markets.
Very few units compared to other options.
Already levied ($5 per horse) for chemical residue testing.
- Horse gear - no clear definition as to type of product.
No data on number of units or levy collection points.
Two further options were suggested but, on advice, both were not considered as legal options for a levy. These are a levy on wagering and a levy on imported horses.
The Next Step - Circulate these options to your horse groups.
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We’ll need you to discuss these options with your horse groups and give us feedback by the second week of August (week starting 9 August).
If you are holding a meeting:
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Please make the EADRA and the levy an important item on any meeting of your organisation, society or committee agenda within the next 4 weeks and inform us of the discussion and outcomes of the meeting. To make sure that you capture all the relevant outcomes, please use the ‘proforma’ provided on our website (see weblink below and go to ‘Submission information’). By using the proforma you can ensure that all the information that the Government requires as evidence of your support is presented. If the matter has been recently discussed, please tell us the outcomes.
You can send the form back by:
email to Horse.EADRA@industry.nsw.gov.au – attention Dr Diane Ryan
fax to(02) 46406300
mail to: Dr Diane Ryan, Elizabeth Macarthur Agricultural Institute, PMB 4008, Narellan NSW 2567.
Where to get information?
The website http://www.animalhealthaustralia.com.au/aahc/horse-owners-and-the-eadra/horse-owners-and-the-eadra_home.cfm (or go to www.animalhealthaustralia.com.au and click on the Horse Industry and EADRA box)
Who to contact?
Do you have any other questions about this process? We can be contacted at:
Dr Diane Ryan, Regional Veterinary Officer, Industry & Investment NSW - Horse.EADRA@industry.nsw.gov.au
Dr Mike Bond, Animal Health
mbond@animalhealthaustralia.com.au
Kim Percy, Animal Health
