FAQs about cost recovery

  1. When do the levies come into effect?

    The levies will come into effect when the NAIT scheme is mandatory.  For cattle this is 1 July 2012 and for deer this is 1 March 2013.

    The cattle tag and slaughter levies will come into effect from 1 July 2012. 

    The deer contribution will come into effect from 1 March 2013.

     

  2. Where can I get information on the cost recovery proposal?

    NAIT produced a consultation document on the proposed cost recovery levy mechanism.  This is available in soft copy on our website click here if you want to see or print the document NAIT Scheme Cost Recovery Proposal (pdf) or the NAIT Cost Recovery Analysis of Submissions (pdf).

     

  3. What will the cost of the levy be?

    For cattle, based on NAIT Limited’s projected operating costs, the levy will be about $2.50 over the lifetime of each animal.  In 2012/13 this includes a cattle tag levy of $1.10 per tag (GST exclusive) and a slaughter levy of $1.35 per head (GST exclusive).

    For deer, based on NAIT Limited’s budgeted operating costs, the indicative levy for the deer industry in total is $35,195 per quarter (GST exclusive). 

    The deer industry’s preference is a collective contribution to be paid by Deer Industry New Zealand, funded by a levy on deer producers at deer slaughter or velvet removal under s24(a)(i) of the Deer Industry New Zealand regulations 2004.  This collection mirrors the deer industry’s current contribution to the Tb control programme.

     

  4. Will the cattle tag levy be on top of the current price of tags?

     The cattle tag levy, which will come into effect from 1 July 2012, will be on top of the current price of ear tags.

     

  5. Will this information be used to charge me for my emissions (ETS)?

    No.  NAIT data will be protected from unauthorised use or disclosure as required by the NAIT Act and under the provisions of the Privacy Act 1993.

    The statutory purpose of the NAIT Bill is limited to lifetime animal traceability for the purpose of enhancing New Zealand’s biosecurity response in the event of a biosecurity or food safety event.

    Accordingly, the NAIT scheme is designed around people in charge of animals rather than animal ownership.  The purposes of the scheme are contained in clause 40 of the NAIT Bill.  Scheme participants can consent to their information being available for non-statutory purposes (clause 41) if they choose.

     

  6. You are imposing a royalty on tags from 1 January 2012 to 30 June 2012. Why?

    NAIT Limited is moving from establishment phase to delivery mode.  Establishment costs have been shared between the Crown and NAIT shareholders (Beef+Lamb New Zealand, DairyNZ, and Deer Industry New Zealand).  Shareholder funding ceases at the end of 2011.  This means funding from farmers directly is required.  NAIT Limited is imposing royalties from 1 January 2-012 as statutory levies under the NAIT Bill cannot be imposed until July 2012.

     

  7. What does the tag royalty apply to?

    The tag royalty applies to white NAIT-approved RFID cattle ear tags only.

     

  8. Why doesn’t it apply to deer?

    The deer industry prefers that its contribution towards NAIT is provided through Deer Industry New Zealand.  If tag levies were charged on deer tags (which are orange) there would be an over-recovery from that sector.

     

  9. How much is the tag royalty?

    The tag royalty will be the same as the proposed tag levy i.e., $1.10 (GST exclusive) per white NAIT-approved RFID ear tag.

     

  10. When does the tag royalty come into effect?

    The tag royalty of $1.10 (GST exclusive) per white NAIT-approved RFID ear tag comes into effect on 1 January 2012 and ends on 30 June 2012.