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MPI FEES

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It seems that MPI is looking to increase fees for importation of fish etc,

http://www.mpi.govt.nz/news-and-resourc ... od-safety/

Not sure if anyone has seen this , but it seems to be a major which will have major consequences for the hobby.

Currently importers pay about $100 a hour to get fish checked and to do paper work/audits etc, looks like this fee is almost to be doubled.

All clubs should be putting in a submission to reject all fee increases.

i Believe FNZAS has a close relationship with MPI, do they have any info.?

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It appears that they are doing this to recover costs and make it more equitable for all importers with some possibly paying less

4.8.2 Problem definition

Some applications for import permits require MPI staff time beyond that anticipated by the

current unit charge of $144.89, either because of problems with the standard of the application

(requiring additional time to resolve) or complexity.

While most permits take around the standard time, a significant minority exceed this, with

approximately five percent taking around eight hours.

Options considered were:

 introducing an hourly charge for those permits that exceed the standard time;

 setting a maximum charge of eight hours staff time above the unit charge;

 introducing a higher unit charge or a second unit charge for other more complex ‘classes’

of application.

Introducing an hourly charge would mean those cases where applications take much longer

than the standard time could be cost recovered on the basis of the actual time taken. That

would provide an incentive for applicants to ensure their applications are in order when they

are submitted.

4.7.1 Background

Activities that take place outside standard working hours impose a higher cost on MPI as we

must pay staff over-time and penal rates.

While the Regulations allow for call-outs (when staff are called back to work) to be recovered

for at higher hourly rates to reflect the additional costs, other activity outside standard

working hours

4.7 BIOSECURITY#1 – RECOVER FOR ACTIVITY OUTSIDE STANDARD WORKING

HOURS

4.7.1 Background

Activities that take place outside standard working hours impose a higher cost on MPI as we

must pay staff over-time and penal rates.

While the Regulations allow for call-outs (when staff are called back to work) to be recovered

for at higher hourly rates to reflect the additional costs, other activity outside standard

working hours that does not constitute a call-out is currently recoverable only at the standard

hourly rates.

4.7.2 Problem definition

Activities undertaken by staff outside of standard working hours (those that are not call-outs)

impose a higher cost than MPI currently recovers because staff must be paid overtime and

penal rates. Out-of-standard-working-hours services for border clearance staff (quarantine

inspectors) are infrequent. There is, however, substantial under-recovery (about $0.3 million a

year) currently occurring for veterinary professional services undertaken to clear live animals

at the border and in transitional and containment facilities.

The options considered to address this under-recovery were:

 increasing the BSEL or (standard) hourly rates to recover the higher costs;

 increasing quarantine inspector and veterinary inspector rates;

 increasing veterinary inspector rates only;

 ceasing to provide rostered veterinary professional services outside of standard working

hours.

Changes to the BSEL or hourly rates are not considered appropriate solutions since both

would result in cross-subsidisation and would therefore be inequitable. Providing the

veterinary professional services in question outside of standard working hours where required

is also not considered to be discretionary.

4.7.3 Proposed charges

MPI proposes to amend the Regulations to allow recovery at the higher rates that MPI pays

veterinary professionals for rostered work outside of standard working hours (being either 1.5

times or 2.0 times normal rates). These rates would equally apply to any periods of ‘waiting

time’ experienced during a call-out. This would apply to both veterinary inspector services

provided, and to veterinary inspector travel during this time (see also Biosecurity #4 ─ 22  Consultation Paper on Proposed Revisions to the Cost Recovery Regime Ministry for Primary Industries

Additional travel zone and travel costs for veterinary inspectors). The proposed veterinary

inspector hourly rates are:

 standard T1.0 hourly rate ─ $186.30;

 hourly rate incorporating T1.5 staff costs ─ $252.17;

 hourly rate incorporating T2.0 staff costs ─ $318.04.

Given the administrative complexity associated with differential charging and the relatively

low volume of work that is done outside standard working hours by (non-veterinarian) border

clearance staff, we propose that the hourly rate for quarantine inspectors undertaking rostered

work outside standard working hours remains the same as now (that is, at the regular hourly

rate).

The proposal to recover costs at higher rates for veterinary inspectors would support

efficiency, as it would mean the users of these services would be paying their actual costs, and

would be equitable, as it would not involve cross-subsidisation by BSEL payers and/or those

requiring services during standard working hours.

4.7.4 Questions for consideration

Question 4.7:

1) Should these out-of-hours services be offered as standard and instead recovered

through the BSEL or standard hourly rates?

2) What is your preferred option for cost recovery of outside of standard working

hours for veterinary services?

  • Author
It appears that they are doing this to recover costs and make it more equitable for all importers with some possibly paying less

How does 105% increase in fee make it equitable, no one will be paying less.

Plus also fee increases for getting goods cleared, increase in yearly permits. Plus there are many other hidden fees that most are not aware of yet. like getting clearance for fish food/ bacteria etc ,

This has a Massive impact if it goes ahead.

  • Author
4.10 BIOSECURITY#4 – AMEND CHARGES FOR ADDITIONAL TRAVEL ZONE AND

For veterinary professionals

MPI proposes to amend the Regulations to provide for a ‘time plus mileage’ approach to

recovering all travel costs of veterinary professionals. This would better suit the nature of

veterinary professional activities, align with the charging approach for exports under food

safety legislation, and allow MPI to fully recover travel costs. The basis for calculating

charges would be:

 a charge per hour for time spent away from base (at the normal, time and a half, or double

time rate, as appropriate), plus

 a per kilometre charge for distance travelled ─ being the per kilometre rate published by

the Commissioner of Inland Revenue in accordance with section DE 12 (3) of the Income

Tax Act 2007, currently $0.77. See section 9.4for further information on a proposal to link

all vehicle mileage rates to the rate calculated by the Inland Revenue Department (IRD),

plus

 the actual and reasonable costs associated with the activity being undertaken.

Travel will also have a massive increase. instead of the current set fee , importers will pay time plus mileage fee

So a 25km return trip will cost around $300.

It seems to me that they wish to recover the costs involved in the work they do. Does this not fit it with policies of "user pays", "private enterprise" and "capitalism", which seems to me the system that we live and work under. You would not expect to be subsidised by people with no interest in fish would you---that would be communism. Democracy is at work and you have the right to put your case to the "powers that be". We are just the consumers and we will end up paying no matter what.

  • Author

I think also the lack of input by clubs/industry over the last 10 years have compounded the predicament the hobby is in.

The ornamental fish importation has so many requirements which have come about from the lack of input over the years, which has translated into substantial compliance cost.

The end of the hobby is not far away and will only be available for the rich.

  • Author

There are going to be meetings, so i suggest people go along.

Date Biosecurity Food Safety

Mon 26 Jan DUNEDIN

Scenic Hotel Southern Cross

123 Princes Street

1.00-2.00 PM CHRISTCHURCH

Rydges Hotel

10.30 AM

Tues 27 Jan CHRISTCHURCH

MPI Office, SWPD Meeting Room 1

14 Sir William Pickering Drive, Burnside

1.00-2.00 PM NELSON

Rutherford Hotel

11.00 AM

Weds 28 Jan

WELLINGTON

Rydges Hotel Meeting, Grand Space

75 Featherston Street, Pipitea

1.30 PM - 3.00 PM

AUCKLAND

Rendezvous Hotel, 10.30 AM

and Holiday Inn Auckland Airport, 2.30 PM

Thurs 29 Jan NAPIER

Napier War Memorial

Main Room

48 Marine Parade, Bluff Hill

10.30 AM - 12.00 PM HAMILTON

Kingsgate Hotel

10.30 AM

Fri 30 Jan TAURANGA

Trinity Wharf Hotel, Pool House

51 Dive Crescent, Bay of Plenty

10.30 AM - 12.00 PM WELLINGTON

MPI, Pastoral House

25 The Terrace

10.00 AM

Mon 2 Feb NAPIER

War Memorial Conference Centre

11.00 AM

Tues 3 Feb

AUCKLAND

Crowne Plaza, 10.30 AM

and Sudima Auckland Airport, 2.30 PM

Weds 4 Feb AUCKLAND

Rendezvous Hotel

71 Mayoral Drive

10.00 AM and 1.30 PM PALMERSTON NORTH

Copthorne Hotel

10.00 AM

Thurs 5 Feb AUCKLAND AIRPORT

Holiday Inn Auckland Airport

Jean Batten Room

10.30 AM and 1.00 PM DUNEDIN

Southern Cross Hotel

12.30 PM

Fri 6 Feb Waitangi Day Waitangi Day

Mon 9 Feb TAURANGA

Daniels in the Park Function Centre

10.30 AM

In answer to your original question Reef - nothing has been received from MPI about this. They have been communicating re other matters but as yet, not this.

Oh and thank you for the link :)

Yup

11am Rutherford Hotel on 27 January

It's either short or there are several people doing the tours around the country.

  • Author

Would be good if you can.

As many need to go as possible as it is a major hurdle the hobby will have going forward,

current proposal to increase MPI fees by 105% will make a major impact on fish prices, plus in a few years we will likely see further increases,

  • Author

Have advised the Pet industry association, so hopefully they will advise all stores and make a submission

  • Author

To give you a idea what retail price might look like for marine fish/corals after the proposed MPI fee increases.

Banggai Cardinalfish $135

Blue-Sided Fairywrasse Male $130

Coral beauty $180

Decorated fire fish $140

Clown fish $130

Jawelled Blenny $120

Bubble coral $150

Torch coral $190

Blue mushrooms $160

Catalaphyllia jardinei $190

Cleaner shrimp $130

Now who is happy with that.

I dont have fresh water indication , but will look to get one.

To give you a idea what retail price might look like for marine fish/corals after the proposed MPI fee increases.

Banggai Cardinalfish $135

Blue-Sided Fairywrasse Male $130

Coral beauty $180

Decorated fire fish $140

Clown fish $130

Jawelled Blenny $120

Bubble coral $150

Torch coral $190

Blue mushrooms $160

Catalaphyllia jardinei $190

Cleaner shrimp $130

Now who is happy with that.

I dont have fresh water indication , but will look to get one.

That looks about like what I remember paying when I had my tank...

I think MPI are entitled to recover their actual and reasonable costs---so long as that is what they actually are. Get breeding you salties, it may become worth your while to start with some of the easier ones and leave the fancy stuff with the fancy prices to the importers. If the prices get too high it may be worth the importers looking at what their mark up is as well. 100%+ mark up may be alright on some items but perhaps they could look at the mark up on more expensive items as there is a limit to what the market is prepared to pay. The days where you think of a number and double it may be over.

  • Author
Similar to when there wasn't much competition in the importing of marines

Really?? fact-less.

To give you a idea what retail price might look like after the proposed MPI fee increases. also added some prices currently charged at Hollywoods

Yellow tang $300- Yellow Tangs $199.90

Banggai Cardinalfish $135

Blue-Sided Fairywrasse Male $130

Coral beauty $180- Coral Beauty $110.00

Decorated fire fish $140 - Fire Goby $99.90

Clown fish $130

Jawelled Blenny $120- Lawnmower Blenny $79.90

Bubble coral $150- Green Bubble Coral $129.90

Torch coral $190- Torch Coral $139.90

Blue mushrooms $160-Blue Mushrooms - Discosoma sp. $139.90

Catalaphyllia jardinei $210 - Catalaphyllia $179.90

Cleaner shrimp $130

Note prices can vary depending what size/supplier etc.

Looking back to price list i have 4 years ago a coral beauty would retail at $80 with so called none competition.

Your facts are not correct , not really helping the hobby with false facts and lack of industry experience.

The issue is not about competition its about dramatic price increase which will effect every hobbyist and make it very hard for small importers to cover the costs.

Sure it can all be pass on, but that does not help the growth of the hobby.

Get breeding you salties, it may become worth your while to start with some of the easier ones and leave the fancy stuff with the fancy prices to the importers. If the prices get too high it may be worth the importers looking at what their mark up is as well. 100%+ mark up may be alright on some items but perhaps they could look at the mark up on more expensive items as there is a limit to what the market is prepared to pay. The days where you think of a number and double it may be over.

if it was that easy. why would a importer take the risk in just importing so called fancy fish. its based on volumes, plus you still get deaths after QT. who covers that. also not easy to get fancy fish in large numbers.

Marine can't be breed in large numbers. only about 2% of all species can be breed. good luck with that.

Freshwater fish will be effected by the proposed increase, however not as much given the volume per shipment.

I think MPI are entitled to recover their actual and reasonable costs

To some degree. however they have put major compliance in place , which cost to manage. plus they have a monopoly , no competition to there pricing.

PLUS, How does overpricing Business's with extra costs, how does this encourage growth. Jobs,? If the tax payer has to fund some of the cost so be it, as it is recovered in other ways like Jobs, Growth, trade & taxes from Business etc.

Question.

why employ a Vet to check fish? they have no experience, not interested in the condition of fish, and its all about spread sheets and paper work.

seems to be a major MPI business structure problem.

Marines are at the stage where fresh water fish were at 20-30 years ago and people were thinking "If only I could work out how to breed neons." I admit marine breeding is not as easy but I am sure that many will be commercially produced in the near future. We still have to compete with the idiots throwing cyanide over the reefs though.

  • Author
Marines are at the stage where fresh water fish were at 20-30 years ago and people were thinking

Totally different ball game.

marine go threw a plankton stage, so very difficult to feed them, will never we easy to breed most of them.

Plus its not just about fish imports, the big picture means that less fish will be imported, which mean less hobbyist and less stores buying drystock.

Higher fish prices will mean bigger mark ups as the risk is higher.

its a price increase to $200/hr then in 4 years it could be another $200hr. That is how they have operated in the past. to continue to find ways to increase cost recovery that a tax payer never sees anyway

  • Author

thats already been covered

Question.

why employ a Vet to check fish? they have no experience, not interested in the condition of fish, and its all about spread sheets and paper work.

seems to be a major MPI business structure problem.

thats already been covered

What expert do you propose checks it instead?

(To note: I'm not particularly happy with price increases and hope to attend one of the meetings myself)

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