NFF opposes biosecurity levy, DAFF slammed in capability review

The industry's concerns appear to be backed up by a recent independent review of the Department of Agriculture, Forestries and Fisheries, which slammed its financial management and decision making.

All of the National Farmers' Federation member groups voted to formally oppose the biosecurity levy, which will be introduced from mid-2024 and be "equivalent to 10 per cent of the 2020-21 levy rates".

The industry cited several issues and unanswered questions, including a lack of transparency about how the money will be spent.

NFF farming systems committee chair, Chris Groves, said the move wasn't about farmers dodging contributions to the biosecurity system, it was about "an ill-thought-out policy with a raft of potential risks".

"Based on what we've been told to date, there's no transparency on how producers' money will be used to deliver additional and tangible biosecurity outcomes," Mr Groves said.

"Will we actually see better biosecurity outcomes, or will it just vanish into the Department's funding black hole?"

A recent government-ordered capability review of DAFF was extremely critical of its financial management and followed in the wake of its funding woes.

The department was forced to adopt austerity measures after its cash reserves were depleted, and subsequently received a $127 million lifeline in the May budget.

"DAFF does not currently have the systems in place to reliably understand its financial circumstances at any given point in time," the report found.

"It cannot reliably forecast how actual expenditure is tracking against estimates."

ACM has previously reported the nation's front-line biosecurity services have slipped below pre-COVID levels, despite costs ballooning by almost $100 million in four years, with fewer ships, travellers, mail and cargo inspected at the border.

The capability review also found "evidence-based decision-making is not currently visible in the department" and only 40pc of staff believed DAFF's leaders make well-informed evidence-based decisions.

Mr Groves said industry was also genuinely concerned the biosecurity levy would undermine the existing levy system for marketing and research and development.

"That levy system is underpinned by long-standing principles supported by government and industry - principles like giving producers a say in how their money is spent," he said.

"Producers will very likely see this as just an increase in their existing levies.

"We hold real fear about the unintended consequences this might have, including for producer support and confidence in the system. The levies system is simply too important to risk like this."

The ag industry is also frustrated by the lack of action on the long-called for importer container levy.

In the past, Labor criticised the former government for scrapping a $10 levy on incoming shipping containers, which would have funded the biosecurity system, but since coming to power has been slow to act on the proposal, claiming the move could breach international trade laws.

"We were told they needed to review the trade implications, how long can that take? They said that 4 months ago and we've heard nothing," Mr Groves said.

The industry's concerns will be voiced in a joint submission to the government, which is seeking feedback on the policy, which will shape its final form.

Agriculture minister Murray Watt has consistently reiterated the need for the new levy.

"I understand that producers might not be thrilled about the idea of contributing a bit more towards our biosecurity system," Mr Watt said.

"But the reality is that with this new levy, which is only 10 percent of the existing levies that farmers already pay, they will get the biggest injection of biosecurity, funding that our country has ever seen.

"Importers will still pay nearly half the cost of our biosecurity services, with taxpayers picking up almost the rest of it with a small contribution from producers."

Sign up here to Good Fruit and Vegetables weekly newsletter for all the latest horticulture news each Thursday...