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Varroa destructor Management Programme: Guide to completing a claim for compensation under section 162A of the Biosecurity Act 1993

INTRODUCTION

The Ministry of Agriculture and Forestry (MAF) and the Varroa Compensation Advisory Group have developed these guidelines to help ensure a fair and timely compensation process.   The MAF Director of Animal Biosecurity is responsible for determining compensation claims and will seek advice from the advisory group as required.

The advisory group is made up of people with a range of relevant skills and knowledge including:

  • Beekeeping practices.
  • Rural accountancy and auditing.
  • Biosecurity practices.
  • Legal interpretation.
  • Public policy.

Answers to the following questions are set out below to inform beekeepers and others that may be entitled to receive compensation.

  • What are the legal criteria for the payment of compensation?
  • How will the compensation processes operate?
  • What do claimants need to do now?
  • Where can claimants get further advice and free technical assistance to support a claim?

Information is also provided to assist with completing the compensation claim form and deciding what supporting information must be submitted to support the claim.

WHAT ARE THE LEGAL CRITERIA FOR THE PAYMENT OF COMPENSATION?
The legal requirements for the payment of compensation are set out in section 162A of the Biosecurity Act 1993.

Section 162A states as follows:

(1) Where -
(a) Powers under this Act are exercised for the purpose of the management or eradication of any organism; and
(b) The exercise of those powers causes verifiable loss as a result of -

  1. The damage to or destruction of a person's property; or
  2. Restrictions, imposed in accordance with Part VI or Part VII, on the movement or disposal of a person's goods, -
that person is entitled to compensation for that loss.

(2) The compensation payable under this section must be of such an amount that the person to whom it is paid will be in no better or worse position than any person whose property or goods are not directly affected by the exercise of the powers.

(3) Compensation payable by a Minister or by a chief executive is payable from money appropriated by Parliament for the purpose.

(4) Compensation must not be paid under this section to any person -

  1. In respect of a loss in relation to unauthorised goods or uncleared goods; or
  2. In respect of a loss suffered before the time when the exercise of the powers commenced; or
  3. Who has failed to comply with this Act or regulations made under this Act and whose failure has been serious or significant or has contributed to the presence of the organism or to the spread of the organism being managed or eradicated.

(5) Any dispute concerning the eligibility for, or amount of, compensation must be submitted to arbitration and the provisions of the Arbitration Act 1996 apply.

(6) Nothing in this section applies to any loss suffered by any person as a result of the exercise of powers under this Act to implement a pest management strategy.

What this means is that compensation can only be paid under section 162A for a loss that:

  • is verifiable; and
  • results from damage to, or destruction of property, or from restrictions placed on the movement or disposal of goods; and
  • is caused by the exercise of powers under the Biosecurity Act for the purpose of managing the varroa mite.

Please note that damage caused by the varroa mite itself cannot be compensated for under section 162A.

While every claim for compensation will be considered on its merits, section 162A provides that compensation must not be paid:

  • for a loss related to unauthorised goods or uncleared goods;
  • for a loss suffered before the time the exercise of powers commenced;
  • to any person who has failed to comply with the Biosecurity Act or regulations made under the Act where the failure is serious or significant or contributed to the presence or spread of the organism being managed or eradicated

HOW WILL THE COMPENSATION PROCESSES OPERATE?

The compensation process will be ongoing.   However, it will be most efficient to deal with claims in 'batches' relating to defined periods of time. This first batch is for the period ending Tuesday 31 October 2000.

Every effort will be made to settle claims within a reasonable time.   Where claims are more complex, the Director will seek advice from the advisory group before an offer of compensation is made.

The Biosecurity Act provides for arbitration where eligibility for, or the amount of, compensation is disputed.   However, claimants will first be able to request that MAF reconsider a claim for compensation.   The diagram on page 6 of this guide illustrates the process that will be employed.

WHAT DO CLAIMANTS NEED TO DO NOW?

Any person who considers they are legally entitled to compensation should lodge a claim with MAF as soon as possible.   For now, claims should only be made for losses incurred up to and including Tuesday 31 October 2000.

Please send completed forms and all necessary supporting documentation to Mr Ashley Edge, Varroa Compensation Coordinator, MAF Biosecurity Authority, PO Box 2526, Wellington by Thursday 30 November 2000.

WHERE CAN CLAIMANTS GET FURTHER GENERAL ADVICE AND FREE TECHNICAL ASSISTANCE TO SUPPORT A CLAIM?

General advice may be obtained from the MAF Biosecurity Authority by contacting the Varroa Compensation Coordinator, Ashley Edge.

Ashley's contact details are:
Telephone: 04 474 4213
Facsimile: 04 470 2730
E-mail: edgea@maf.govt.nz.

Free technical assistance to support a claim is available to claimants needing technical support to verify losses.   Any person requiring free technical assistance to support a claim should contact Mr Murray Auld.   Murray is the Rural Coordinator appointed to support the Government rural sector support programme to assist beekeepers facing severe financial hardship as a result of varroa.   Murray will discuss your requirements and ensure all necessary arrangements are made.

Murray's contact details are:
62 Jamieson Road, RD 2, Pukekohe
Telephone: 09 238 7122
Mobile: 025 622 1576

COMPLETING THE COMPENSATION CLAIM FORM - SOME EXPLANATORY NOTES

MAF prefers for claims to be submitted on the forms provided (copy attached).   Please ensure that all sections of the form relevant to your claim are completed in full.

If completing your claim in handwriting, please take care to ensure it is easy to read.   Typewritten claims can be easily prepared, as the form is also available on the MAF website (www.maf.govt.nz/pests&diseases/varroa/compensation.htm) or available for download here.

Section 1: General information and contact details

1A requires details about the owner of the damaged or destroyed property or goods affected by restrictions. Please fill in as many of the fields as you can.

In 1B, details of the owner's authorised agent are not required if you are the owner, and wish to be the person contacted in relation to the claim.

Section 2: Details of the loss for which compensation is sought

Please supply as much detail as possible about the cause and the value of the loss you have suffered.   Summary information in the tables on pages 2 and 4 of the claim form is important, but additional comments on pages 3 and 5 may be necessary to help MAF understand the nature of your claim.

To avoid confusion about the nature, quality or quantity of property or goods affected, descriptions should be as precise as possible.

Please indicate the date or period of time in which each loss was incurred.

Section 3: List of supporting documents

To help MAF keep track of all the documents, it is recommended that you number the front page of each supporting document.   Please ensure the number you put on the page matches the number beside that document on the list of supporting documents.

Please supply any relevant supporting documentation necessary to verify your claim.   The type of documentation necessary will differ depending on the nature of the claim.

Section 4: Declaration and Privacy Act notice

Part 4 of the completed claim form must be signed and dated in the presence of a Justice of the Peace, Solicitor, Notary Public, Court Registrar or any other person authorised by law to administer an oath.   Please read the declaration, Privacy Act notice and the important notes in part 5 of the claim form, before you sign.

DIAGRAM: THE COMPENSATION PROCESS



Varroa Management Programme - Compensation Claim under Section 162A - Biosecurity Act 1993

Download the Varroa Compensation Claim Form 5 here