2017-12 - Independent Review of the Live Animal Export Program Cost Base

28 September 2017

Species: All

Country: All

For information:

  1. Livestock Exporters
  2. Non-Livestock Exporters
  3. Registered Premise operators
  4. LiveCorp
  5. Australian Livestock Export Industry (ALEC)
  6. Departmental Officers

Purpose

To advise all exporters of live animals and reproductive material of the independent review of the live animal export program cost base.

Background

  1. As part of implementing changes to cost recovery arrangements in late 2015, the minister agreed to a request for an independent review of the cost base of the Live Animal Exports Program. The review was scheduled to com​mence in 2017, allowing time for data to be collected on exporters operating under the approved arrangement model.
  2. In June 2017 the Minister approved the Terms of Reference for the review.
  3. The review is to validate the cost recovery model, all costs (and therefore prices) currently applied to live animal and reproductive material exports. In particular, the review is to consider:
    1. if the costs being recovered by the department are legitimate costs for industry (and not costs of government)
    2. the appropriateness of the existing cost recovery model and price settings
    3. how all departmental costs are attributed to the live animal export arrangement and particular sectors within the arrangement (i.e. livestock and non-livestock sectors)
    4. whether the model is appropriate, considering the reforms that have been undertaken and are planned for the live animal export program
    5. whether the arrangement is defensible, equitable and consistent with Australian Government cost recovery guidelines
  4. Following a procurement process, PricewaterhouseCoopers Consulting (Australia) Pty Ltd has been engaged to carry out the independent review.
  5. The review is to include consultation with relevant industries through an Industry Consultative Committee and an electronic stakeholder feedback form.
  6. The Department of Agriculture and Water Resources has established a new Live Animal Export Finance Industry Consultative Committee (LAEFICC) to support the conduct of the independent review and implementation of any agreed outcomes. LAEFICC will also provide an ongoing forum for consultation with industry on the department’s Live Animal Export cost recovery arrangement.
  7. Industry membership to the LAEFICC have been drawn from relevant industry sectors.
  8. Stakeholder feedback is being sought until 13 October 2017 through the LAEFICC and the electronic stakeholder feedback form​ provided by PricewaterhouseCoopers.

Instructions

  1. All industry participants are encouraged to:
    1. Provide feedback through the electronic form provided by PricewaterhouseCoopers in the stakeholder engagement period 28 September 2017 through to 13 October 2017.

Cost Recovery Operations
Industry Support Branch
Finance and Business Support Division
Department of Agriculture and Water Resources

Contact Officer: Cost Recovery
Phone:  02 6272 4581
Email: Cost Recovery​​

Last reviewed: 11 November 2019
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