Back to National Beekeepers' Assn of NZ
Back to Latest News page



TWO YEAR INTERIM MANAGEMENT PROGRAMME FOR VARROA BEE MITE

Office of the Minister of Agriculture

Chair
The Cabinet Finance Infrastructure and Environment Committee



TWO YEAR INTERIM MANAGEMENT PROGRAMME FOR VARROA BEE MITE
Proposal
  1. This submission:

    • proposes a Government-supported interim management programme for Varroa destructor (varroa) for the period 1 November 2000 to 31 October 2002;
    • notes that during this period a long-term management programme for varroa will be developed;
    • proposes funding be provided to the National Beekeepers' Association (NBA) to enable it to purchase the technical support necessary to contribute to the development of varroa management programmes;
    • outlines a process and seeks funding to settle compensation claims arising from the exercise of powers under the Biosecurity Act 1993 to slow the spread of varroa.

    Executive Summary

  2. The Cabinet directed the Ministry of Agriculture and Forestry (MAF) to report back to the Cabinet Finance Infrastructure and Environment Committee (FIN) by 15 September 2000 with detailed proposals for a two-year Government-supported interim management programme for varroa.  The FIN report back was deferred until 31 October 2000, with the agreement of the Secretary of the Cabinet, after the beekeeping industry requested additional time and a series of regional meetings to develop its positions.

  3. MAF has consulted widely with the beekeeping industry in developing an interim management programme proposal.  Broad agreement on the proposed programme has been achieved.  MAF has also agreed with beekeepers a process for addressing current and future compensation claims relating to the exercise of statutory powers under the Biosecurity Act 1993.

  4. The objectives of the interim management programme are to ensure that the South Island remains free of varroa for as long as practicable, and that the economic impacts in the North Island are mitigated.  The programme will run from 1 November 2000 until 31 October 2002.  It will be administered by a Varroa Management Group, which will include industry representation.

  5. The following table summarises the components and costs of the proposed programme.  Funding is sought in this paper for all components of the programme except South Island incursion response.

    Components and costs of proposed varroa interim management programme

  6. The estimated cost of responding to a South Island incursion is $6.000 million per incursion.  Funding for any South Island incursions will be sought on a case by case basis.  In addition, the costs of varroa research for 2001/02 (and possibly outyears) will be sought by MAF as part of the new 2001/02 budget new initiatives round.  At this stage, it is estimated that the likely cost of this research could be up to $0.900 million.

  7. The interim management programme provides for the transitional management of varroa while a sustainable long-term management strategy is developed.  A programme co-ordinator has been employed within MAF to facilitate the development of a national pest management strategy (NPMS) proposal in accordance with Part V of the Biosecurity Act 1993.  It is proposed that MAF report back to the Cabinet by December 2001 with progress on the development of a NPMS proposal.

  8. It is also proposed that the Minister of Agriculture make a public announcement concerning the Cabinet's decisions in relation to this paper.

    Background

  9. The presence of varroa was confirmed in South Auckland on 11 April 2000.  On 17 July 2000, the Cabinet agreed to a three phase management programme for varroa involving [CAB (00) M 23/2C refers]:
    1. a 10 week programme of immediate assisted treatment of high-risk hives;
    2. a two-year Government-supported interim management programme;
    3. the development of a long-term varroa pest management strategy proposal using the process set out in Part V of the Biosecurity Act 1993.

  10. On 11 September 2000, the Cabinet further agreed to a rural sector support programme to assist beekeepers facing severe financial hardship as a result of varroa [CAB (00) M 30/1F refers].  A Rural Co-ordinator has been appointed to support this programme.

  11. The programme of immediate assisted treatment commenced in late July 2000. The programme has progressed according to plan and under budget, with over 90% of eligible hives now under treatment.  Treatment products are currently being withdrawn from hives and returned to MAF's contractor for safe disposal.

  12. The Cabinet directed the Ministry of Agriculture and Forestry (MAF) to report back to the Cabinet Finance Infrastructure and Environment Committee (FIN) by 15 September 2000 with detailed proposals for the two-year Government-supported interim management programme.  This programme will provide for the transitional management of varroa while a sustainable long-term management strategy is developed.  The FIN report back was deferred until 31 October 2000, with the agreement of the Secretary of the Cabinet, after the beekeeping industry requested additional time and a series of regional meetings to develop its positions.

  13. MAF has consulted widely with the beekeeping industry in developing an interim management programme proposal.  As well as attending the NBA annual general meeting, MAF conducted fourteen regional meetings and two national meetings to seek beekeepers' views and finalise an operational plan.  The meetings with beekeepers were also used to communicate the Government's intention to develop a proposal for the long-term management of varroa, and to outline the process for this work.

  14. Broad agreement on the proposed interim management programme has been achieved.  However, the additional consultation requested by the beekeeping industry has pushed the commencement of the programme beyond the time when large numbers of hives are moved for kiwifruit pollination and honey production.  On 9 October 2000 the Cabinet agreed that several elements of the proposed programme be implemented immediately, to minimise the spread of varroa during the pollination season [CAB (00) M 33/3 refers].

  15. MAF has also agreed with beekeepers a process for addressing current and future compensation claims arising from the exercise of powers under the Biosecurity Act 1993, to slow the spread of varroa.

    Comment

    Interim management programme

  16. The objectives of the two-year Government-supported interim management programme are to ensure that the South Island remains free of varroa for as long as practicable, and that the economic impacts in the North Island are mitigated.  The main components of the programme involve movement controls, surveillance, treatment, and South Island incursion response.  The programme also includes extension services, and the initiation of research, to assist beekeepers to adapt to varroa's presence.  The programme has been designed to enable a smooth transition to sustainable long-term arrangements.

  17. The following sections outline objectives, measures and costs for each component of the proposed two-year interim programme.  All costs are GST inclusive.

    South Island movement controls

  18. Cook Strait is an effective barrier to the natural spread of varroa.  MAF proposes to maintain the current statutory controls on the movement of specified risk goods (such as live bees, bee products and beekeeping equipment) to the South Island.  A risk analysis will be undertaken to ascertain the primary risk pathways for varroa entering the South Island, and measures will be targeted at pathways of greatest risk.  Movement controls will be enforced by MAF, and will be complemented by programmes to educate beekeepers and the public to minimise the risk of accidental spread.

  19. The cost of maintaining South Island movement controls is estimated at $0.052 million in 2000/01, $0.026 million in 2001/02, and $0.010 million in 2002/03.  This funding would be applied to the preparation of a risk analysis, the development of education and signage materials, and the administration of permitting policies.  In addition, it is expected that the movement controls will result in some beekeepers incurring business losses, giving rise to compensation claims of approximately $0.050 million in 2000/01, $0.035 million in 2001/02, and $0.025 million in 2002/03.  Compensation costs are discussed in a separate section below.

    South Island surveillance

  20. The objectives of South Island surveillance are to verify freedom from varroa, and to detect any varroa incursion early enough to ensure eradication is both technically feasible and economically worthwhile.  The proposed surveillance is based on overlaying a 20 x 20 kilometre grid on the South Island, and identifying which grid squares contain high risk areas (eg, ports and container terminals).  A minimum number of apiaries will be sampled from each high-risk grid.  If there are no apiaries available for sampling within a particular high-risk grid, sentinel hives will be established.  Random sampling will be carried out on apiaries selected from the remaining low-risk areas.  Information to confirm South Island freedom (or otherwise) will be collected in the first year of the programme.

  21. Sampling will be carried out on an annual basis (with a higher frequency in some high-risk areas), managed by an agency contracted to MAF.   In the first year AgriQuality NZ Ltd will be appointed as the contract agency.   In the second year, competitive tendering will be considered if potential alternative service suppliers can be identified.   Specifically trained beekeepers will undertake the field operations.

  22. It is proposed that the Government meet the cost of diagnostic products, diagnostic services, and direct costs incurred by beekeepers.  Beekeepers working in their own hives would contribute the cost of their time.  Where it is necessary for a beekeeper to sample other beekeepers' hives, it is proposed that MAF pay an hourly rate.   The active surveillance programme would be complemented by additional passive surveillance carried out by vigilant beekeepers on a voluntary basis.  Where passive surveillance would complement the active surveillance programme, sampling materials and laboratory diagnosis may be provided at no cost to the beekeeper.

  23. The cost of South Island surveillance is estimated at $0.875 million per annum in 2000/01, $0.876 million in 2001/02, and $0.438 million in 2002/03. .

    South Island incursion response

  24. It is intended that, subject to assessments of technical feasibility and cost benefit analyses, an attempt be made to eradicate South Island incursions.  The probability of eradication would be significantly enhanced through effective incursion response planning.  The following planning activities are proposed:
    • establish a decision-making framework;
    • compile information to support decision-making, such as potential benefits of eradication;
    • prepare an incursion response plan, including industry consultation arrangements;
    • establish memoranda of understanding with the Department of Conservation, the Ministry of Health and regional councils on issues affecting the responsibilities of these agencies;
    • undertake research into depopulation of feral bee colonies.

  25. It is proposed that the costs of a South Island incursion response be met by the Government.  MAF is not funded to carry out incursion responses.  If an incursion is detected, funding for a delimiting survey to determine the geographical extent of the infestation will be sought urgently.  Based on the results of the delimiting survey, advice would be prepared for Government on the technical feasibility and costs and benefits of pursuing eradication.  It is difficult to estimate the total cost of an incursion response, as it will depend on the extent of the infestation when it is detected, and the type of environment in which an operation must be managed.  An average incursion is estimated to cost approximately $6 million to eradicate.

    North Island treatments

  26. It is important that the treatment strategy for varroa is based on the principles of integrated pest management (IPM).  The strategy must support both general and organic beekeeping practices.  IPM requires the treatment of infestations only when they reach economic thresholds, and the rotation of treatment products to delay the build up of resistance in varroa populations.  The development of a long-term IPM programme will require research on varroa population dynamics in the New Zealand environment, but a programme can commence immediately based on overseas experience.

  27. Both general and organic beekeeping require at least two treatment products with different modes of operation.  There are currently two chemical treatment products approved for varroa in New Zealand (Apistan and Bayvarol), but these products have a similar mode of operation and are not suitable for rotation.  There are currently no organic treatments approved.

  28. The process of approving varroa treatments is managed by MAF's Agricultural Compounds and Veterinary Medicines Unit.  MAF intends to fast track the approval of sufficient treatment products to enable both general and organic beekeepers to implement IPM.  The product approval process involves considering efficacy, safety and residue issues.  Generally, pharmaceutical companies have a commercial incentive to seek approval for their products, and are able to supply the necessary data.  MAF is working with potential product suppliers to encourage them to seek approval of their products.

  29. Formic acid solution will be one of two organic compounds for which approval will be sought.  However, formic acid is a readily available substance, and little commercial interest has been expressed in developing and seeking approval of a standardised treatment regime for this compound.  It is proposed that MAF fund the development and approval of formic acid solution treatment regimes as part of the interim management programme.

  30. Affected and high-risk apiaries have already received a first round of assisted treatments as part of the immediate treatment programme commenced in late July 2000.  The next round of treatments will be due in March/April 2001.  The ongoing provision of Government-funded treatments is not sustainable under a long-term management strategy, however, it is proposed that MAF provide beekeepers with free treatment products for one further round of treatments.  This would provide time for the development of an IPM programme, and the delivery of extension services to affected beekeepers.  Beyond March/April 2001, beekeepers should be in a position to take responsibility for delivering and funding their own varroa treatments.

  31. The cost of the proposed North Island treatment programme is estimated at $0.316 million in 2000/01 only.  This cost is made up of $0.040 million for the approval of treatment products, and $0.276 million for the cost of treatment products for one further round of treatments.

    North Island movement controls

  32. The objectives of North Island movement controls are to slow the spread of varroa, and minimise the impact of regulatory controls.  Minimising the impact of regulatory controls is important both to maintain a viable beekeeping industry, and to reduce the Crown's compensation exposure.

  33. A movement control line between the upper and lower North Island has been finalised, largely with the agreement of beekeepers, following a formal mediation process.  The line's location aims to minimise the risk of varroa spreading to the lower North Island, while at the same time enabling beekeepers to continue normal beekeeping activities.  To avoid significant disruption to a number of beekeeping operations, the line includes two 'bubbles' where a degree of intermixing of hives from the upper and lower North Island will be allowed, although no hives will be permitted to exit from the mixing zones to the south.

  34. Movement of high-risk goods across the boundary line is prohibited, and a permit is required for the movement of hives from north and south of the boundary line into the boundary line bubbles.  Southbound hives moving into a zone 10 kilometres north of the boundary line require a permit, and pre-emptive treatment.  Permits are also required for the movement of high-risk hives within other parts of the upper North Island.

  35. A large number of hives will be moved into confined areas during kiwifruit pollination.  These hives will be dispersed widely throughout the upper North Island once pollination has been completed, presenting a significant risk of varroa spread.  To minimise this risk, high-risk hives moving into pollination areas will be treated to lower their level of infestation, and hives from uninfested areas will be pre-emptively treated while in pollination areas where varroa is known to be present.

  36. The cost of treatments to minimise the risk of varroa spread during pollination is estimated at $0.316 million in 2000/01 only (this cost can be met from within MAF's existing varroa appropriation, as the immediate assisted treatment programme has been delivered under budget).  The cost of permitting and pre-emptively treating high-risk hives moving into the 10-kilometre zone is estimated at an additional $0.202 million in 2000/01 only.  This expenditure will enable most normal beekeeping to continue, reducing the Crown's compensation exposure by an estimated $1.3 million.  If movement controls are successful in preventing the spread of varroa to the lower North Island, there may be a need to consider extending the 10-kilometre zone pre-emptive treatment policy for one or more further seasons.  This would be the subject of further advice to Cabinet.

  37. In addition, it is expected that compensation costs of approximately $0.450 million will arise in 2000/01, $0.405 million in 2001/02, and $0.135 million in 2002/03 as a result of beekeepers incurring business losses.  Where customary or contractual arrangements are affected, but no legal liability to pay compensation exists, some modest ex-gratia payments totalling up to $0.020 million in 2000/01 only may also be required.  Compensation and ex-gratia payment costs are discussed in separate sections below.

    North Island surveillance

  38. The objectives of North Island surveillance are to provide information on the geographical spread of varroa for the ongoing review of movement controls, and to provide an 'early warning' system for beekeepers so that they can commence varroa management in newly infested apiaries.  The proposed surveillance is based on randomly sampling apiaries in a similar 20 x 20 kilometre grid to that used in the South Island.  The intensity of surveillance will be less in the North Island, as the information is being generated to track varroa's spread rather than to detect and eradicate a new incursion.

  39. The surveillance programme would be managed by the same agency that is contracted to manage the South Island surveillance.  Field operations would be carried out by trained beekeepers.

  40. It is proposed that, as with the South Island, the Government meet the cost of diagnostic products, diagnostic services, and direct costs incurred by beekeepers.  Beekeepers would contribute the cost of their time, except where they were asked to sample other beekeepers' hives.  The active surveillance programme would be complemented by additional passive surveillance carried out by vigilant beekeepers on a voluntary basis.  The cost of North Island surveillance is estimated at $0.072 million in 2000/01, $0.429 million in 2001/02, and $0.055 million in 2002/03.

    Extension services

  41. The objective of the proposed varroa extension programme is to provide beekeepers with the knowledge and confidence to implement efficient IPM in their apiaries.  Technical training will be required in management to reduce varroa build-up and spread, surveillance, application of treatments, minimising the use of chemicals, and avoiding residues and resistance.

  42. The proposed programme is based on overseas experience, and involves:
    • developing and disseminating a varroa handbook containing information on best management practises and technical and regulatory issues;
    • delivering a series of workshops to train beekeepers in the skills and techniques required for varroa management;
    • supporting the establishment of regional networks, and attending regional field days, to ensure on-going sharing of information and experience;
    • dealing with requests from individual beekeepers for assistance and information.

  43. In addition, the formal extension programme will be complemented by the transfer of knowledge and skills during the delivery of the surveillance and treatment components of the programme outlined above.

  44. The cost of the proposed extension programme is estimated at $0.253 million in 2000/01, and $0.116 million in 2001/02.

    Research

  45. The objective of the proposed varroa research programme is to initiate the urgent research required to both support the interim two year management programme, and assist the development of the long-term strategy.  Specific research is required into varroa population dynamics, treatment regimes, feral bee control, and biological control options.  MAF considers that, based on its experience with rabbit calicivirus and other major pest responses, it will be necessary to contract the equivalent of four full time researchers (FTEs) for the next two years.  The beekeeping industry believes this to be a minimum requirement.  Some industry research funding may also be available, possibly from the kiwifruit industry.

  46. A Varroa Research Advisory Group will be convened to determine research priorities and contract research providers.  Contracts will be managed according to MAF's existing operational research policy.  This policy establishes criteria against which research proposals are assessed, and ensures research funds are efficiently managed.

  47. It is proposed that MAF be appropriated $0.500 million in 2000/01 only to commence urgent research.  Research in the second year of the programme will be subject to priorities determined by the Varroa Research Advisory Group.  It is therefore further proposed that MAF be directed to report back to the Cabinet with firm proposals for research in 2001/02 as part of the 2001/02 budget new initiatives round.  The likely cost of this research is up to $0.900 million. Research of a long-term nature (beyond two years) would need to be transferred into the existing process for pest management research (managed through Vote Research, Science and Technology) at the end of the two-year period.

    Programme administration

  48. To ensure overall co-ordination of the interim management programme, and the efficient use of public funds, MAF proposes to establish a Varroa Management Group to administer the interim management programme.  The Group would be chaired by MAF's Director of Animal Biosecurity, and would initially include representation from MAF and the beekeeping industry.  Other stakeholder groups such as regional government, the horticulture industry, and Federated Farmers could be included later. The Group will oversee the:
    • use of regulatory controls associated with varroa management;
    • management of varroa related contracts;
    • management of varroa related research and extension.

  49. The cost of the proposed Varroa Management Group is estimated at $0.060 million per annum in 2000/01 and 2001/02.  This funding assumes quarterly meetings, and would be used to meet the cost of fees and disbursements for non-government members of the Group.  In addition, $0.020 million is sought in 2000/01 only to pay the costs associated with distributing the approved operational plan to all beekeepers, and $0.030 million per annum is sought in 2000/01 and 2001/02 to purchase the technical support necessary to assess compensation claims.

    Re-negotiation of market access requirements

  50. Following the outbreak of Varroa in New Zealand, it was necessary to re-negotiate market access requirements for live bee exports.  This has been achieved with good success in almost all markets through remote or indirect approaches via New Zealand Embassies.  The exception is the Republic of Korea, where there is a long history of difficult negotiations, and progress has been dependent on direct negotiation.

  51. Arrangements have been made through the New Zealand Embassy in Seoul for a senior MAF official to meet with the Animal Health Division of the Korean MAFF in late November 2000.  The cost of this trip is estimated at $0.004 million, which would normally be cost recovered from the beneficiary exporter.  The beekeeping industry has requested that this cost be funded by the Government as part of the interim management programme.  MAF considers this is a reasonable request, and that the expenditure of a relatively small sum will generate significant industry goodwill.   The cost of the visit has been included in the programme administration budget.

    National Beekeepers' Association support

  52. A key participant in the Varroa Management Group will be the NBA. Effective beekeeper representation is critical to successful varroa management.  The NBA Executive is made up of unpaid volunteers from the beekeeping industry.  The organisation is already under financial pressure, and is having difficulty discharging its responsibilities as the management agency for the American foulbrood national pest management strategy.  The varroa incursion has exacerbated this situation.

  53. The NBA Executive has proposed in discussions with MAF that the Government provide it with support for the critical next two-year period.  This support would take the form of a Government-funded expert adviser to help the NBA develop industry positions and assess Government proposals.

  54. The cost of purchasing expert advice for the NBA is estimated at $0.020 million per annum in 2000/01 and 2001/02.  MAF considers this would substantially improve the NBA's capacity to contribute in a meaningful way to the development of long-term varroa solutions.  MAF proposes that this support be approved as part of the interim management programme.

    Compensation for losses arising from the exercise of statutory powers

  55. Section 162A of the Biosecurity Act requires that compensation be paid for verifiable losses arising from the exercise of powers under the Act.  To date, movement controls are the only statutory powers invoked by MAF in relation to the varroa response.  MAF has invited beekeepers to lodge statements of intent to claim compensation for losses resulting from these controls, and convened a Compensation Advisory Group to develop formal claim procedures, and make recommendations in relation to compensation issues.  The group includes representation from the:
    • NBA;
    • varroa response team;
    • MAF Biosecurity Authority;
    • MAF Legal;
    • rural finance sector.

  56. Claims will be assessed on their merits.  It is MAF's intention to settle all claims promptly, however, a review and statutory arbitration process will be available if settlements are disputed.

  57. Forty-four statements of intent to claim compensation have so far been received.  Total losses of approximately $2.080 million have been indicated, with the largest indicated loss in excess of $1 million.  It is expected that the continuation of movement controls will give rise to further compensation claims, although a mediated re-definition of the North Island boundary line and revised movement controls conditions have reduced the Crown's exposure.  Total compensation liability is estimated at $3.200 million over two years.  It is proposed that MAF be appropriated an additional $2.600 million per annum in 2000/01, $0.440 million in 2001/02, and $0.160 million in 2002/03 to settle claims.  Unspent funds will be returned to the Crown.

    Ex-gratia payments for southern beekeepers adversely affected by movement controls

  58. A small number of southern beekeepers have customary or contractual arrangements to provide pollination services or to collect honey in the north.  Movement restrictions in the northern part of the North Island adversely affect these beekeepers, because while bees may be shifted into the movement control area, they would be prevented from returning south once pollination or honey collection had been completed.  MAF legal advice is that compensation for losses is unlikely to be payable under the Biosecurity Act in this situation.

  59. MAF considers that adversely affecting customary arrangements without compensation for losses is inequitable, particularly where the affected beekeepers have made substantial concessions in negotiations to establish the movement control boundary.  Accordingly, MAF seeks approval, as part of the movement control regime, to consider and make a small number of modest ex-gratia payments to affected beekeepers.  It is proposed that MAF be appropriated an additional $0.020 million in 2000/01 only to make up to four ex-gratia payments.

    Long-term pest management strategy proposal

  60. As noted above, the two-year interim management programme provides for the transitional management of varroa while a sustainable long-term management strategy is developed.  The provisions of the Biosecurity Act provide an appropriate framework for considering the complex issues associated with long-term varroa management.

  61. A programme co-ordinator has been employed within MAF to facilitate the development of a national pest management strategy (NPMS) proposal in accordance with Part V of the Act.  This may or may not result in a decision to proceed with a NPMS.  Developing the NPMS proposal will involve extensive industry consultation, and if the industry indicates it does not require statutory powers to manage varroa long-term, then a NPMS is probably not warranted.  One advantage of a NPMS, however, is that it provides an opportunity to apportion the costs of management to beneficiary industries.

  62. It is proposed that MAF report back to the Cabinet by December 2001 with progress on the development of a NPMS proposal for varroa.

    Legislative Implications

  63. There are no legislative implications associated with the recommendations in this paper.

    Financial Implications

    Cost of proposals

  64. The following table summarises the costs of the proposed varroa interim management programme.  Funding is sought in this paper for all components of the programme except South Island incursion response.

  65. The estimated cost of responding to a South Island incursion is $6.000 million per incursion.  Funding for any South Island incursions will be sought on a case by case basis.  In addition, the costs of varroa research for 2001/02 (and possibly outyears) will be sought by MAF as part of the new 2001/02 budget new initiatives round.  At this stage, it is estimated that the likely cost of this research could be up to $0.900 million.

    Cost benefit analysis

  66. MAF has analysed the costs and benefits of the proposed interim management programme using the economic impact assessment (EIA) developed for the decision on whether to attempt eradication.  This EIA was completed with the assistance of the beekeeping, horticultural, arable and pastoral sectors, and assumes a beekeeper only management scenario (ie, no direct government involvement).  The EIA found the potential impacts of varroa on New Zealand agriculture are at best around $400 million and at worst around $900 million (in present value terms) over the next 35 years.

  67. Compensation costs already incurred are not amenable to cost benefit analysis.  The balance of the proposed costs fall into three categories:
    1. mitigating impacts in currently infested areas (treatment, extension, research, administration, and NBA support);
    2. delaying the spread of varroa to the lower North Island (North Island movement controls and surveillance);
    3. maintaining South Island freedom (South Island movement controls, surveillance and incursion response).

  68. In the absence of effective treatment, varroa impacts would be much greater the $400 million to $900 million identified above.  Measures in category (i) will enhance the ability of beekeepers to manage varroa effectively.  Without Government support, effective treatment would be less likely, and impacts at the upper end of the range could be expected.  Government support, provided it is followed by appropriate long-term management, will drive economic impacts toward the lower end of the range.  At a total cost of $1.829 million, MAF considers that Government support for these measures is economically worthwhile.

  69. The total benefit of a two-year delay in the spread of varroa to the lower North Island is estimated to be in the range of $10 million to $18 million (present value).  This represents a deferral of economic impacts on agriculture in this region.  The measures in category (ii) will contribute to achieving this benefit.   The total cost of the proposed measures is estimated at $1.768 million.  Even allowing for some varroa spread into the lower North Island, and a consequent reduction in the benefits achieved, the proposed movement controls and surveillance appear economically worthwhile.

  70. The total benefit of a two-year delay in the spread of varroa to the South Island is estimated to be in the range of $26 million to $48 million (present value).   The measures in category (iii) will contribute to achieving this benefit.  The cost of the proposed measures is estimated at $2.387 million, with the cost of each incursion response estimated at an additional $6 million.  The proposed movement controls and surveillance appear economically worthwhile, even if several incursion responses are required to achieve a two-year delay.  Separate advice would be prepared for the Cabinet on the costs and benefits of responding to any South Island incursion.

    Regulatory Impact Statement

  71. A Regulatory Impact Statement is not required as the proposals in this paper will not result in a Government Bill or statutory regulations.

    Publicity

  72. There is predominant support within the beekeeping industry for the proposed programme.  It is proposed that the Minister of Agriculture make a public announcement concerning the Cabinet's decisions in relation to this paper.  It is further proposed that, concurrent with the Minister's statement, MAF provide details of the Cabinet's decisions to the NBA Executive.

    Consultation

  73. The following departments have been consulted in the preparation of this paper: The Treasury, Ministry of Health, Department of Conservation, Ministry for the Environment, Ministry of Research, Science and Technology.  The Chair of the Biosecurity Council and the Environmental Risk Management Authority have been provided with a copy.

    Recommendations

  74. I recommend that the Cabinet:

    Summary of initiatives

    1. the summary of initiatives, as follows:

      Background

    2. note that the Cabinet directed the Ministry of Agriculture and Forestry (MAF) to report back to the Cabinet Finance Infrastructure and Environment Committee (FIN) by 31 October 2000 with detailed proposals for a two-year Government-supported interim management programme for varroa [CAB (00) M 23/2C refers];

    3. note that the varroa interim management programme will provide for the transitional management of varroa while a sustainable long-term management strategy is developed;

    4. note that MAF has consulted widely with the beekeeping industry in developing an interim management proposal, and that broad agreement on the proposal has been achieved;

      Interim varroa management programme

    5. direct MAF to implement a two year interim management programme for varroa, covering the period 1 November 2000 to 31 October 2002, with the objectives of maintaining South Island freedom for as long as practicable, and mitigating economic impacts in the North Island;

    6. agree that the interim management programme will incorporate the following main components:
      1. South Island movement controls;
      2. South Island surveillance;
      3. South Island incursion response capability;
      4. North Island treatments;
      5. North Island movement controls;
      6. North Island surveillance;
      7. Re-negotiation of export agreements
      8. Extension services;
      9. Research;
      10. Support for the National Beekeepers' Association;

    7. note that funding will be sought on a case by case basis for the costs of responding to any South Island incursion;

    8. note that MAF will seek approximately $900 million (GST inclusive) for varroa research in 2001/02 as part of the 2001/02 budget new initiatives round;

    9. direct MAF to convene a Varroa Management Group, inclusive of industry representatives, to administer the interim management programme;

      Compensation and ex-gratia payments

    10. note that MAF has agreed with beekeepers a process for addressing current and future compensation claims arising from the exercise of powers under the Biosecurity Act 1993 to control the movement of bees, bee products and beekeeping equipment;

    11. direct MAF to negotiate and settle compensation and ex-gratia payment claims relating to the exercise of statutory powers;

      Long-term varroa pest management strategy

    12. note that a programme co-ordinator has been employed within MAF to facilitate the development of a national pest management strategy (NPMS) proposal in accordance with Part V of the Biosecurity Act;

    13. direct MAF to report back to the Cabinet by 31 December 2001 with progress on the development of a varroa NPMS proposal; Publicity

    14. invite the Minister of Agriculture to make a public announcement concerning the Cabinet's decisions in relation to this paper;

      Appropriation changes

    15. approve the establishment of "Varroa Compensation" as a new non departmental other expense appropriation in 2000/01, 2001/02 and 2002/03 in Vote Biosecurity-Agriculture and Forestry;

    16. approve the following changes to appropriations to put into effect the decisions in recommendations (a) to (o) above, with a corresponding impact on the Government's operating provisions:

    17. agree that the appropriation changes referred to in (p) above be included in the 2000/01 Supplementary Estimates and that, in the interim, these expenses be met from imprest supply.


    Hon Jim Sutton
    Minister of Agriculture