Horse flu cost-sharing limit raised
NMG/EFA National Office, Wednesday, 14 November 2007
The National Management Group (NMG) has released a communiqué advising that the original cost-sharing limit for the control of the EI outbreak has now been raised.
The agreed upper limit for meeting containment and eradication costs of the equine influenza outbreak has been increased to ensure the national response to the disease continues.
The decision to increase the cost cap from 1 per cent to 2 per cent of the gross value of production (GVP) of the horse industry has been agreed to by the National Management Group (NMG) overseeing the response.
Under industry/government agreed cost-sharing agreements for emergency animal disease responses including equine influenza, control and eradication costs are capped at 1 per cent of the gross value of production (GVP) of that particular sector unless an alternative upper limit is agreed.
As horse flu response costs exceeded the previously agreed GVP limit of $36 million, NMG was required to hold discussions to seek the agreement of all parties including horse industries to a revised upper limit.
In agreeing to a new funding cap, NMG re-stated its view that eradication of the disease is achievable and presented as positive evidence of this goal a substantial reduction in the number of new infected premises being reported.
However, NMG stressed that control and eradication efforts will be jeopardised if adherence to ongoing good biosecurity and risk mitigation measures are relaxed by horse owners or those associated with horses, along with compliance with movement controls, quarantine and hygiene measures.
NMG has also agreed to a review of existing cost apportionments under the cost sharing deed as well as the eligibility of costs under the arrangement. Currently industry meets 80 per cent of the containment and eradication costs for equine influenza and governments the remaining 20 per cent.
NMG is comprised of the Chief Executive Officers of the Commonwealth and State/Territory departments of agriculture/primary industries across Australia and also the heads of the peak bodies representing the horse industry.
The National Management Group (NMG) has released a communiqué advising that the original cost-sharing limit for the control of the EI outbreak has now been raised.
The agreed upper limit for meeting containment and eradication costs of the equine influenza outbreak has been increased to ensure the national response to the disease continues.
The decision to increase the cost cap from 1 per cent to 2 per cent of the gross value of production (GVP) of the horse industry has been agreed to by the National Management Group (NMG) overseeing the response.
Under industry/government agreed cost-sharing agreements for emergency animal disease responses including equine influenza, control and eradication costs are capped at 1 per cent of the gross value of production (GVP) of that particular sector unless an alternative upper limit is agreed.
As horse flu response costs exceeded the previously agreed GVP limit of $36 million, NMG was required to hold discussions to seek the agreement of all parties including horse industries to a revised upper limit.
In agreeing to a new funding cap, NMG re-stated its view that eradication of the disease is achievable and presented as positive evidence of this goal a substantial reduction in the number of new infected premises being reported.
However, NMG stressed that control and eradication efforts will be jeopardised if adherence to ongoing good biosecurity and risk mitigation measures are relaxed by horse owners or those associated with horses, along with compliance with movement controls, quarantine and hygiene measures.
NMG has also agreed to a review of existing cost apportionments under the cost sharing deed as well as the eligibility of costs under the arrangement. Currently industry meets 80 per cent of the containment and eradication costs for equine influenza and governments the remaining 20 per cent.
NMG is comprised of the Chief Executive Officers of the Commonwealth and State/Territory departments of agriculture/primary industries across Australia and also the heads of the peak bodies representing the horse industry.
posted by Horse Deals at
8:04 am
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