Animal Quarantine Stations
The Animal Quarantine Stations Program comprises the management and operation of government facilities for the quarantine of imported animals after they have arrived in Australia. The stations are used for quarantine isolation and testing of imported animals from a variety of countries, many with a differing disease status. Their basic function is to protect against the entry of animal pests and diseases present in the country of origin that may not be detectable at the time of arrival.
There are five government-owned and operated post-arrival animal quarantine stations:
· Byford in Western Australia (dogs and cats);
· Cocos Islands in the Indian Ocean (livestock, zoo animals and large birds e.g. ostriches);
· Eastern Creek in New South Wales (dogs, cats, horses and bees);
· Spotswood in Victoria (livestock, horses, dogs and cats, live bird facility); and
· Torrens Island in South Australia (hatching egg facility).
Most animals arrive by air with consignments of larger animals usually arriving by chartered air freighter. Companion animals and other groups of small animals generally arrive as cargo on scheduled passenger flights. Although the on-arrival examination of animals may be carried out at the quarantine station, the testing of animals for the exclusion of exotic diseases both overseas and in Australia, is treated as part of the import clearance program (see Appendix E).
One of the recommendations from an internal review of animal quarantine stations in 1991, was that — at least in relation to companion animals — a system of deposit and booking fees should be introduced (AQIS 1991b). Subsequent reviews recommended an extension of this principle to other animals. Such a system was identified as necessary because with live animal imports, there is often a need to conduct a series of tests under pre-embarkation quarantine in the exporting country. At times it can take several weeks to prepare a consignment for export to Australia, and consequent delays in shipment and cancellation of bookings at short notice can leave quarantine facilities idle while new consignments are being prepared. The system proposed was that where space was booked at an animal quarantine station and for reasons beyond the control of animal quarantine staff that booking was not taken up, the costs associated with that cancellation would be borne by the person or group of persons, making the reservation. The Quarantine Act 1908 was amended in December 1994 to allow AQIS to charge deposits and booking fees for reservations at animal quarantine stations.
The Review Committee understands that this policy has not yet been fully implemented. Reasons advanced for this are that although a cancelled booking has a significant effect on program revenue for the live bird, hatching egg and Cocos Islands facilities, this has not occurred regularly in recent times. Further, because of the irregularity of the problem across the three facilities and the changing nature of many of the relevant importation protocols, it has been difficult to formulate appropriate charges. However, with the changing international avian health situation and the economic situation regarding imports of ‘new’ species through the Cocos Islands facility, the risk of booking cancellations has risen significantly.
The Review Committee is aware that AQIS is seeking approval for revised fees, including those for deposits and bookings. The Review Committee believes that the financial viability of the stations is most important, and supports the introduction of procedures for deposits and booking fees.
Recommendation 81: The Review Committee recommends that the animal quarantine stations operated by Quarantine Australia should be on a more commercial basis by introducing a system of forfeitable bonds for allocations of space, with bonds being forfeited if offers are not taken up within a specified period.
Australia’s animal quarantine stations have been government-owned and operated for more than 70 years. These stations were perceived as necessary safeguards or insurance policies against the introduction of exotic animal diseases. Consequently, station establishment and maintenance costs — together with running cost deficits (the difference between fee revenue and expenditure) — were budget-funded. As pointed out in Section 8.13.3, for many years the stations were not a commercial success and continued increases in fees led to importer dissatisfaction and increased losses due to declining use of the stations. Although in recent times losses have been greatly reduced, solutions are needed to ensure the long-term viability of the stations.
The Lindsay Review recommended, inter alia, that ‘subject to security standards and other conditions to be determined and reviewed as appropriate by AQIS, and supervised on its behalf by the States, private and other commercial interests should be authorised to own and/or operate a wider range of low to medium security plant and animal quarantine facilities … Existing high security quarantine stations should continue to be owned and operated by government, in the medium term at least’ (DPIE 1988, p. 123). An internal AQIS review of animal quarantine stations commenting on the Lindsay Review also saw as an option the ‘full privatisation of all quarantines considered to be medium or low risk with the retention of key high security government facilities only’ over an eight-year implementation program (AQIS 1991b).
The Review Committee agrees with the principles outlined in the Lindsay Review but believes that those principles could be taken further with all Government stations — irrespective of their security status — being offered for private ownership and management. However, the extension of these principles to the private ownership of high security quarantine stations and facilities should be introduced gradually, and only after a reasonable time to assess experience with privatised low to medium risk stations. This Review is concerned to ensure that any proposals for private ownership of Government quarantine stations of any level of security, should be permitted only after development of the necessary security controls and conditions, and subject to strict audit.
Recommendation 82: The Review Committee recommends that, in principle, Government animal quarantine stations should be offered for privatisation, subject to audit by Quarantine Australia and maintenance of appropriate security.
The question also arises as to the feasibility and desirability of fostering a program of privately owned offshore or onshore quarantine stations. A small number of submissions to the Review supported the proposition that privately owned stations offer an effective alternative to government-run stations, although these views were mainly from individual industries. A small number of submissions opposed any such a move. Arguments were put that offshore facilities — particularly those not on Australian territory — could lead to a loss of control of monitoring of animals, their breeding, and attention to strict quarantine procedures. An example of recent experience with private quarantine is the Scrapie Freedom Assurance Program. As part of this program, private quarantines were conducted at Glendook, Terraweena, Kirra and Wongan Hills. The quarantine period extended over many years and was particularly suited to private operation, albeit under strict quarantine supervision. These and other quarantines of live animals such as laboratory, circus and zoo animals, alpacas, llamas, deer, sheep, goats and horses demonstrate that the private ownership and operation of quarantine facilities is possible and even desirable in many circumstances.
The question of private high security offshore quarantine stations was examined in a recent review (Snowdon 1995). This review examined the existing government-owned and operated Cocos Islands station and made recommendations on requirements that would need to be met if similar stations were to be established. The Review Committee notes that private enterprise has since entered the market, with the establishment of a private high security animal quarantine station on the Pacific island of Niue and development of a private high security facility near Goulburn, New South Wales, for importing hatching eggs of domestic poultry. Both facilities are expected to commence operation before the end of 1996.
In the preceding recommendation, the Review Committee put the proposition that, if adequate controls, conditions and audit are in place, there is no reason why private ownership could not be extended to high security stations. Further to that recommendation, the Review Committee believes that, with the necessary safeguards, this policy could be extended to onshore as well as offshore stations, subject to audit by Quarantine Australia and maintenance of appropriate security.
Recommendation 83: The Review Committee recommends that, in principle, private onshore high security animal quarantine stations should be permitted, subject to audit by Quarantine Australia and maintenance of appropriate security.
Plant Quarantine Stations
Plant quarantine includes pest and disease screening, treatment and care of plants and plant materials at government post-entry plant quarantine stations. It includes maintenance of the stations with respect to quarantine security and proper horticultural practices in the establishment and maintenance of plants in quarantine. It may also encompass research activities supporting improved disease screening efficiency and effectiveness.
Plants that undergo post-entry quarantine have minimum quarantine periods ranging from three months for ornamental varieties to three years for pome fruit, although the quarantine period may be extended until the disease screening process is completed to the satisfaction of quarantine authorities. AQIS currently accredits selected overseas plant health systems and has instituted reduced quarantine requirements in recognition of this.
Pressures to reduce the cost of this program and achieve full cost-recovery for user-attributable costs led in 1992 to an internal review of the station program. The review sought to identify a more efficient mechanism for delivering an effective and appropriate service, without compromising quarantine security. The key recommendations of the review were to withdraw AQIS funding from certain stations and offer the facilities to the States to be State-run and funded. The alternative was to close the stations and institute a research program into improved disease detection methods with a view to reducing the time in quarantine. Unfortunately, the research component has not progressed due to lack of available resources.
Charges for post-entry plant quarantine have been developed to reflect the cost of providing the variety of pest and disease testing and plant maintenance and establishment services necessary in post-entry quarantine. The current charging levels have largely been in force since August 1992, with only minor changes to some rates. It has long been a general view that high fees can lead to an increased incidence of smuggling of plant material. Where economies of scale have been identified, the charges have been structured to pass these savings on to users of the services through lower charging scales.
There are plans to relocate the plant quarantine station to Commonwealth property at Eastern Creek as a result of the proposed closure by the New South Wales State Government of the Biological and Chemical Research Institute at Rydalmere in Sydney (see Section 10.4.5.2). However, significant strains are still being placed on plant quarantine facilities and all indications are that this situation will continue. In view of this, the Review Committee believes that a system for setting priorities for the use of plant quarantine facilities should be introduced.
Recommendation 84: The Review Committee recommends that Quarantine Australia form a review committee to set priorities for imports of plant genetic material.
Smuggling and Community Service Obligations
Due to historically high running costs, post-entry quarantine stations were for many years a drain on the quarantine budget with substantial losses being incurred. Several internal efficiency reviews were undertaken between 1991 and 1993 to correct this unsatisfactory situation. The benefits of these reviews can be seen in that animal quarantine stations are now largely cost-recovered. The small shortfall in revenue over expenditure for these stations is boosted by a budget-funded grant for the avian import program. The subsidy of $298 000 a year is provided to ensure the continued viability of the program and help curb smuggling — the primary reason for establishing the avian facilities originally. The Review Committee supports the provision of the anti-smuggling subsidy and its continuation.
The plant quarantine stations program significantly under-recovers its expenditure, and this situation is expected to continue. In this regard, a Department of Finance subsidy of $1 million initially granted for each of the three years from 1992-93 to assist this program was continued into the 1996-97 financial year. In view of the very important role that these facilities play in plant quarantine protection and the risk of an increase in smuggling if the subsidy were to cease, the Review Committee believes that this subsidy should be continued, contingent on adequate demand for the facilities.
Recommendation 85: The Review Committee recommends that Government continue to provide Quarantine Australia with community service obligation funding for its avian and plant quarantine stations.
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