Independent Pricing and Regulatory Tribunal-

Review into the development of a

funding framework for Local

Land Services NSW

A submission to the review by

Hume Livestock Health and Pest Authority (Hume LHPA)

14June 2013

Hume LHPA -I PART Interim Submission

May 29, 2013 LHPA INTERIM SUBMISSION

Snapshot of public benefits generated by LHPAs

Although private benefit versus public benefit to the wider Australian community can be difficult to quantify, there is a clear public good that results from the activities of the LHPAs that ratepayers are funding .

Biosecurity Overview: Pests and disease outbreaks threaten the productivity and competitiveness of our industries and impact on communities (state Plan 2021 p54- also referenced in IPART submission paper p25)

Public/human health - In our surveillance role seeking to identify incursion of exotic diseases we also identify emerging diseases including zoonoses. 60% of emerging human health diseases originate from animals. Many of the most recent pandemics have emerged from human contact with domestic animals or human (and domestic stock) encroachments into wild ecosystems (Hendra virus, Nipah, swine flu , avian influenza , SARS (2003), AIDS). Our work helps protect humans from emerging zoonoses. In NSW the LHPA system provides frontline field surveillance services.

Food safety and supply - Our work in chemical residues and zoonotic disease is helping to ensure a healthy food and fibre source for the wider community. Our work to underpin export markets helps maintain returns from agricultural investment and supports continued production of food in Australia . Profitable livestock industries underpin regional economies and promote regional growth.

Exotic animal disease and emergency response - The economic impact of the 2007 equine influenza incident cannot be measured just against lost exports of equines from Australia , or even income lost to equine service industries and suppliers. Once again , the LHPAs provide the field services for any emergency animal disease response in NSW.

Emergency Preparedness - LHPA's maintain 'mission-ready' staff who may be deployed at short notice to attend biosecurity emergencies. These staff are often used in biosecurity emergencies where the risk creators and beneficeries had not contributed to the ongoing maintenance of these staff eg Equine Influenza, Avian Influenza.

Emergency response to bush fires , drought and other natural disasters - Using the skills of Rangers and Vets to manage traumatised affected animals. The support we give affected producers helps them recover with less impact on the (human) public health system. As a supporting agency, during floods and fires, all owners and animals- including companion animals are assisted .

Endemic Disease Surveillance - can be seen as a direct benefit to the landholder and industry. In addition to this surveillance is undertaken to collect data that keeps markets open by demonstrating proof of absence of particlaur diseases. Surveillance also enables on-farm investigations which may detect emergency Animal Diseases.

Animal welfa re - Is a national responsibility and is taken seriously by both ratepayers and non-ratepayers. Our animal welfare work satisfies a wider public expectation and benefit. Our staff are well recognised for their expertise in, and commitment to , the implementation of acceptable animal welfare standards.

Environmental - There are clear environmental and heritage benefits from our management of TSRs and pest animal control programs. TSRs are important habitat for various species of native fauna and flora . Often TSRs provide habitat for protected species listed under the National Parks and Wildlife Act 1974 and for threatened species listed under the Threatened Species Conservation Act 1995. The LHPAs strive to gain a balance between the need to provide pasture for livestock, and the need to conserve such native species, on areas of TSRs under their control. The work undertaken by LHPAs and landholders in controlling declared pest animals is not only for the protection of agriculture, but also the environment generally. For example, rabbits can cause profound damage to soils and vegetation in the areas they inhabit.

May 29, 2013 LHPA INTERIM SUBMISSION

Background Information

For the purposes of I PART understanding the LHPA and LLS some facts and figures:

LLS Region Area in Hectares

Central Tablelands

Central West

Greater Sydney

Hunter

Murray

North Coast

North West

Northern Tablelands

Riverina

South East

Western

Total area=

Riverina LLS will cover the following areas of LHPA :

• the old Wagga, Gundagai areas of Hume LHPA • the old Narrandera and Hay areas of Riverina LHPA • the Hillston area of the Western LHPA is part of Riverina LLS. I) Lf,Jull~

3,128,969

9,150,734

1,247,414

3,295,470

4,188,377

3,212,218

8,255,405

3,957,423

6,699,410

5,562,503

31,442,872

80,140,795

~iverina LLS is covered by the following Catchment Management Authorities :

• Murrumbidgee CMA • Small part of Murray CMA

• Small part of Lachlan CMA

Murray LLS will cover the following areas of LHPA :

• The old Albury RLPB area of Hume LHPA • The old Jerilderie area of Riverina LHPA • The old Murray, Deniliquin areas of Riverina LHPA.

Riverina LLS is covered by the following Catchment Management Authorities :

• Murray CMA • Part of the Murrumbidgee CMA

%of state

3.90

11.42

1.56

4.11

5.23

4.01

10.30

4.94

8.36

6.94

39.23

May 29, 2013 LHPA INTERIM SUBMISSION

Chapter 5 Cost Recovery Framework

Question 1 and Question 2- Page 34 of the IPART Issues Paper

External Who are beneficiaries I risk creators ? Item Core Area Service I Function What is the justification for the service ? benefit ? l andholder Industry Community

(Govt) 1 Strategy and NSWAnimal Implement the initiat ives within the NSW State 2021 Plan, NSW Yes Major

Planning Biosecurity & Biosecur ity St rategy and Business Plan and achieve the targets Welfare Business set, and this is in the public interest as it provides public good Plan, St rategic Plan outcomes. 2013-2015 and NSW Biosecurity St rategy 2013-2021. NSW 2021 Plan

2 Biosecurityl Residue detection, 1. Requirement of NSW Animal Biosecurity Business Yes Minor Minor Major Public Health investigation and Plan

management, 2. Many emerging diseases are coming from human organo-chlorine contact with animals. (Influenza, Hendra, SARS, monitor ing, liaison Corona virus) A surveillance service for animal health with NSW Health for is in a position to identify emerging diseases that zoonotic diseases may have an impact directly on human health. LHPA and wildlife and f ield veterinarians report to the government on ( feral animal t hese issues without t he pressures of conflict of monitoring. interest inherent in private practice. Monitor ing

chemicals in food-organochlorines, lead- is also part of LHPA service in responding to animal health cal ls. As is monitoring for diseases like Anthrax. (Zoonosis).

3. Monitored t hrough the National Livestock Ident ification Scheme ( NLIS) which is implemented in NSW by LHPA.

3 Biosecurityl Notifiable Disease 1. Requirement of NSW Animal Biosecurity Business Minor Major Major Disease detect ion and Plan Surveillance diagnoses and 2. Minimise emergency disease response costs, enable

reporting early detection for effective control and to prevent market failure

3. Market conf idence and contribution to NSW economy

4 Biosecurityl Disease Control 1. Requirement of NSW Animal Biosecurity Business Yes Major Minor Disease Plan Surveillance 2. Whilst major beneficiary is the private landholder,

t here is a f low on Community benefit (public good) in relation to publicising the event and far fewer individuals subsequently suffer the loss. LHPA is in the business of preventing economic loss across its region rather than simply diagnosing the problem on

( individual 10 or 20 farms. For example : Emerging seasonal problems e.g. (1 ) plant poisonings where we have a proven track record of pub I icising losses (including on farm TV interviews news coverage) and clea r feedback that it has prevented district and even state-wide and interstate result s eg lupinosis, and lesser loose strife publicity (feedback from much of NSW and as far away as western Victoria). Additionally, these on farm visits provide for extension and education that extend far beyond the farm gate as often a wide range of LH issues are diagnosed and can be far more important fro m a district point of view i.e. lame sheep w ith footrot ; and this is how we may even pick up on a suspect exotic disease event.

5 Biosecurityl Minimise impacts of Demand is clear in legislation and policy : Yes Major M ajor Major Disease established an imal 1. Legislated in Rural Lands Protection Act, Stock Surveillance pests and diseases Diseases Act

2. Requirement of NSW Animal Biosecurity Business Plan

3. NSW Footrot control program 4. National BJ D program 5. National OJD Program 6. Cattle t ick program 7. Sheep Lice program

May 29, 2013 LHPA INTERIM SUBMISSION

Diseases such as footrot can not be eradicated from wide areas until we recognised we had to eradicate it from all the farms in an area at the same time to prevent reinfection from neighbours and by common road use. LHPA uses quarantine measures under the RLP Act to isolate the infected farms to ensure the disease does not spread far throughout the district and often the State, providing a public good component.

6 Biosecurity Market access It is critical that we can demonstrate to our trading partners Yes Major Major that we have active disease surveillance. This clearly demonstrates a public benefit from ensuring Australia has adequate measures in place to detect and eradicate any foreign diseases. Equally experience and computer simulation models show that the earlier an exotic disease is detected the lower the cost of its control, and eradication. Disease eradication such as the eradication of bovine brucellosis maintained our access to the USA market. Successfully dealing with residue issues has maintained access to the world market. Recent example re Hunter Water and pipeline with lead in pipeline joins leading to cattle deaths and residue issues. Cattle successfully traced and tested from affected properties (using NUS), benefit to buyers but most importantly benefit to beef and offal trade (there is a considerable trade in cattle livers to the EU), positive lead residues would be a disaster for this trade. This is a good example of trade+ consumer confidence benefit viz public good

7 Biosecurity Product failures I Example - backl ine lice treatment failures where the first case of Yes Major Minor Minor Adverse reactions magnum resistance was diagnosed and our research and

subsequent conference presentations, papers and press releases alerted vets and farmers state-wide to that problem providing a public good. Other examples include drench resistance in sheep and cattle, Zapp failures re lice, Synthetic pyrethroid failure re lice, Tetravet adverse reactions- in one case, Vet work led to refunds in the order of $17,000 to affected ratepayers. Commercial ales with little or unlikely benefits are not likely to be scrutinised and reported on without LHPA's eg. trial work re vitamin 812 and its failure to deliver a result despite enormous commercial sales pressure on farmers.

8 Biosecurity NUS Scheme NSW implements the National Livestock Identification Scheme Yes Minor Major Major (NUS) to LHPA staff ensure compliance at saleyards with NUS provides a public good aspect ensuring strong compliant markets. NUS is used for residue recording and management against PICs or animals.

9 Biosecurity General Surveillance Demand would be evenly shared. Yes Minor Major Major Herd level disease investigation, collect, store PIC related data, provide reports to stakeholders (landholders, DPI, private vets, etc) Local projects - disease surveys, disease control programs

( (Pestivirus), Ovine Johne's New national plan- recommence meetings, poll ing prior to planned 117113 deadline. Footrot-Footrot control and eradication programs, surveys, active surveillance (Riverina) Ovine Brucellosis- Extend eradicat ion

area, maintain testing regime BJD - Manage quarantines, ext ension work, property management plans

10 Biosecurity Stock Inspectors I Demand is clear in legislation and policy : Yes Minor Major Compliance 1. Legislated in Rural Lands Protection Act, Stock

Diseases Act ; DPI-LHPA MoU, Biosecurity Policy State project to strengthen delivery of LH regulatory program by remodell ing stock inspection appointment process andre-appointment where needed (previous training, appointed then may not use so many not current, also linked to progression for Rangers). Role of the stock inspectors provides for a public benefit and therefore should be funded by the community as a public good.

11 Biosecurity Voluntary groups Demand from individuals and groups No Major For a range of animal disease (and pest animal) control have only worked with significant LHPA support. Our role in initiating; coordinating; and encouraging these groups is pivotal. These groups required very high levels of RLPBILHPA support that could include reminders to hold meetings, posting information and meeting notices to members. This extension and education is considered for the public good as it assist the prevention and spread of disease throughout the district.

May 29, 2013 LHPA INTERIM SUBMISSION

12 Emergency EAD investigation, Demanded by Government and community. Recognised in Yes Major Major Major Animal Disease management & NSW 2021 Plan and in Animal Biosecurity Business Plan.

Exotic Diseases High profile diseases like Anthrax can disrupt export markets and industry. Swill feeding is well recognised as a significant risk factor for the introduction of several EAD's including Foot and Mouth (FMD) disease. Hendra virus endemic in flying foxes and spill over to horses can cause highly fatal infection that pose risk to horses and humans.

Exotic diseases cost us markets in produce and tourism, and most recently the horse racing industry in NSW (Horse Flu). In some cases the disease is int roduced by the industry (Horse Flu). However the potential for non rated city dwellers to bring in compromising products by mail or international travel is a high risk. The potential for 'tastes from home'-like salami from Europe or bush meat from Africa· to illegally introduce a biohazard increases. The city dwellers don't contribute by paying rates but do present a biohazard risk that will impact the community widely.

-13 Biosecurity Pest Animals Requirement of NSW Wild Dog Strategy - Community is Yes MajL

beneficiary for having Government plans in place, provides a clear public benefit.

14 Biosecurity Pest Anima ls Implementation of Wild Dog management plans, ground Major Major Minor baiting, coordinate strategic aerial baiting programs and reporting. Co-ordinated across nil tenure landscape -meaning the programs carry across private land, public land including Crown land and NPWS. Greater public good is realised from strategic wild dog control.

15 Biosecurity Pest Animals Group programs and provision of advice, control equipment Yes Major Minor and restricted poison bait (1080, Pin done) to landholders. Individual farmer benefits however when done in groups the whole community benefits from broad scale rabbit control with less damage to native vegetation and the environment

16 Biosecurity Pest Animal control Demand by community ie Coordinated control programs in Yes Major of significant sites RAMSAR wetland areas, multi agency program with NPWS,

provides greater public good 17 Biosecurity Pest Animals· 1. Landholder demands ie Vertebrate Pest Induction Yes Major Minor

training Training of landholders for use of Pindone & 1080. 2. Also legislated through Pesticides Act 3. Cooperative Programs with landholders & other

NRM agencies & Councils.

I _I 18 Welfare Animal welfare 1. Allow market access Yes Minor Major MajL

2. Legislated through Prevention of Cruelty to Animals Act. Obligations under POCTA in relation to livestock failure, assisting stock owners understanding and meeting livestock industry welfare standards.

3. Meets community and industry expectations

I I 19 Extension & Extension Maintaining extension networks within rural communities is Yes Major Minor Minor

Research critical to the success of the programs and to ensure the community have the skills, knowledge and information from the latest research. This community wide exercise is considered public good.

I I 20 Emergency Floods, Fires & LHPA Vets and Rangers are utilised for emergency management Yes Major Minor Major

Management Drought situations throughout NSW for fires, floods and during drought. This work extends beyond individual farmers and is often in towns and on sma ll holdings, none of which are ratepayers.

21 Emergency Animal LHPA is largest contri butor of sheep and cow brains for Mad Yes Major Major Major Disease (EAD) Cow and Scrapie testing. EAD preparedness, training- for

outbreaks such as Foot & Mouth, Tick fever, Avian Influenza, Newcastle disease (poultry), El, Hendra(horses), Swine Flu (pigs).

22 Locust Outbreaks LHPA are involved in broadscale planning, management and Yes Major Minor Major control of large scale locust outbreaks. Provide chemical and assist the DPI with reporting, mapping and follow up. Beneficiaries are the community as it results in protection of

May 29, 2013 LHPA INTERIM SUBMISSION

crops, and parks and gardens within towns are regional cities, this is considered public good.

I 23 Overheads - A proportion of overhead administration involved in running Yes Major Major Major

Administration the Animal Health, Biosecurity and Emergency Management and support programs can be contributed to all the programs as ad min is a

key function and requirement such as management of the NUS database. The broader community benefit and therefore public good is realised. This includes a proportion of the transaction costs of rating for the Animal Health Rate including staff time, database management, mail outs, media, communications, newsletters, debt collection and general management.

I I 24 Natural resource TSR Management Implement weed and pest control programs, ensure Yes Major Major

Management drovers/permit holders comply with requirements. Weed control is carried out to ensure LHPA are not risk creators but the flow on benefit for pub I ic good is that the TSRs are managed for their NRM values, environmental values such that the native vegetation is conserved and managed on behalf of the public for future generations.

25 TSR Habitat Public good aspect being that TSR values such as habitat Yes Major protection and protection for threatened species and maintaining corridors of conservation native vegetation throughout NSW for wildlife movement.

-26 TSR Biodiversity Continued implementation of Federal Government funded Yes Major

projects program & CMA funded programs for natural resource management outcomes (funds cover opportunity costs lost from grazing permits, weed control, pest control) for public benefit.

27 Grazing Public good aspect being that TSR values such as habitat Yes Major Major Management protection for threatened species and maintaining corridors of

native vegetation throughout NSW for wildlife movement.

28 Grazing Permits Private good as the benefactor is the permit holder No Major 29 TSR public use RSMP, apiary sites, advertising, reserve use permits- Issue and Yes Major

maintenance & routine monitoring

(