NEWS EADRA & Horse Levies

27th November 2008

Riders can be Encouraged by the Latest Advice About Horse Levy Bills On November 20th 2008, Peter McGauran, CEO of Thoroughbred Breeders Australia released his view of the Horse Disease Response Levy Bills and their progress through the Senate Committee and beyond. Peter was the Minister for Agriculture in the Howard Government and therefore has an in depth understanding of political processes. The following is taken from the Thoroughbred Breeders Queensland newsletter. Horse Levy Bills May NOT be a ‘Done Deal’ The Government of the day always delivers the report because it has the majority on the committee but what is more important is the minority report of the opposition and minor parties who combined will decide the fate of any Bill on the floor of the Senate. Here all nongovernment Senators put in a minority report opposing the Government's legislation which means that the Horse Disease Bills will not be passed if they were put to a vote in the Senate. The non-government Senators believe that there is insufficient evidence of how a wide spread registration scheme would be developed by the Government and believe it could lead to the levy burden being carried by a minority of horse owners. Also, they strongly object to the levy being imposed on future registrations only and not on currently registered horses and believe the thoroughbred industry especially will therefore get a free kick. Finally, the dissenting minority want the recreational or pleasure horse sectors exempt from the levy or to pay a lesser levy than professional horses. The net result is that the Government will not amend the Bills to this extent and the Opposition and minor parties will not pass them unless they do. Consequently, the Government is likely to withdraw the Bills and put them in the too hard basket for an indefinite amount of time. Without a signed EADRA and a levy system the thoroughbred industry, as with all other horse sectors, will be entirely reliant on the goodwill of the Government to fight any future disease outbreak. There is no obligation on them to do so as there is in every other livestock industry. Peter McGauran CEO Thoroughbred Breeders Australia If you have not read the Senate Committee’s report you can find it at: http://www.aph.gov.au/SENATE/committee/rrat ctte/horse disease/report/report.pdf Author: Dr. Fiona Thompson BVSc (Hons) Queensland Horse Council increase HORSE POWER, join the QHC www.qldhorsecouncil.com

18th November 2008

Horse Disease Response Levy Bills to Proceed Levy A report from the Senate Committee on the Horse Disease Response Levy Bills was released late last week. The Senate Committee have recommended that the Bills pass without amendment. The purpose of the Bills is to impose a levy on the initial registration of horses.  This is to ensure that the horse industry is able to repay any money paid by the Commonwealth on behalf of the industry in the event of an emergency disease outbreak. Although in chapter two of the report the Senate Committee states, “it recognises the concern of community recreational associations like pony clubs over the issue of levies, but points out that owners of horses engaged in these and similar organisations will not be liable to pay a levy”, it will be interesting to see whether this is actually the case when and if the levy comes into play. EADRA The levy is proposed to assist the industry fund it's obligations under the Emergency Animal Disease Response Agreement (EADRA).  The horse industry is not a signatory to EADRA and the proposed legislation would allow this to occur.  Under EADRA, the cost of responding to emergency disease outbreaks is shared by the affected parties.   Compulsory Registration The Senate Committee supports the implementation of compulsory horse registration for all horses together with the establishment of a national register.   However it acknowledges that the Commonwealth would need the full cooperation of the states and territories to implement compulsory registration.  The concept of compulsory registration has been referred to the Animal Health Committee of Primary Industries Ministerial Council for evaluation. Levy Regulations The Senate Committee is confident that the regulations can be framed so as to take account of the wide diversity of horse ownership and riding activity in the community. Other groups however do not share the optimism of the government that all equity issues will be taken into account in the regulations. Without seeing the regulations it is impossible to be convinced that the concerns of recreational riders will be addressed in an equitable way. The report states it is too early to condemn the proposed legislation without consideration of the regulations that are to come.  The QHC believes that it is too early to support the proposed legislation without knowledge of the regulations that are to come. It would have been informative if the Senate Committee provided the draft regulations before their report was finalised however the Government declined this request.   Author: Dr. Fiona Thompson BVSc (Hons) Queensland Horse Council Inc.

10th October 2008

Update on Senate Enquiry into Horse Disease Response Levy Bills QHC members will already have received this information: An interim report has been issued by the Rural and Regional Affairs & Transport Committee: "The committee met on Friday 3 October 2008 to consider the chair's draft report on the bills. After discussion the committee agreed to extend its deliberation on provisions of the legislation dealing with the imposition of levies with a view to making further recommendations to Government. The committee agreed to report on 13 November 2008." We will keep you updated when this committee’s final report is handed down.

7th October 2008

Update on Senate Enquiry into Horse Disease Response Levy Bills An interim report has been issued by the Rural and Regional Affairs & Transport Committee: "The committee met on Friday 3 October 2008 to consider the chair's draft report on the bills. After discussion the committee agreed to extend its deliberation on provisions of the legislation dealing with the imposition of levies with a view to making further recommendations to Government. The committee agreed to report on 13 November 2008.” We will keep you updated when this committee’s final report is handed down. The QHC Board of Directors will meet this Thursday 9th October in Brisbane. If you have any items you would like addressed, please email me. Dr. Fiona Thompson BVSc (Hons) Chief Executive Officer Queensland Horse Council Inc. Level 5 Primary Industries Building 80 Ann Street, Brisbane Qld 4000 Telephone: (07) 3239 3192 Facsimile: (07) 3239 3504 Email: Fiona.Thompson@dpi.qld.gov.au

23rd September 2008

Horse Levy Senate Committee Submission and Hearing Last Tuesday 16th September, delegates at the Queensland Horse Council‘s Emergency Workshop reconfirmed their position of opposing the signing of the Emergency Animal Disease Response Agreement (EADRA) in its current form. In a Catch 22 situation, the Agreement (EADRA) cannot be signed until the Horse Disease Response Levy Bills 2008 are passed. Despite intensive lobbying of Federal MPs the Bills were passed by the Federal House of Representatives on 3rd September and the Bills have been referred to a Senate Standing Committee for Rural and Regional Affairs and Transport before being put to the Senate for final approval. However, the timeframe for this Committee’s deliberations is alarming with Submissions being due by Monday 22nd September and hearings set for 24th September leaving precious little time for organizations to scrutinize the Bills, prepare a submission and ensure that a representative will be available to travel to Canberra to give evidence. Despite this, QHC lodged a Submission based on the outcomes of the Emergency Workshop and will be financing a representative to attend and represent members at the Senate Committee hearing on Wednesday 24th September. In another Catch 22, a condition of lodging a Submission to the Senate Committee prevents the QHC from publishing or circulating copies of its Submission. Last Tuesday’s Workshop analyzed the implications and ramification of the Bills and concluded that the Bills could not be supported without far reaching amendments. The Bills in question are: • Horse Disease Response Levy Bill 2008 An Act to impose a levy on the registration of horses/ponies and for related purposes. • Horse Disease Response Levy Collection Bill 2008 Provides for the collection of horse disease response levies and the liability of registration bodies to pay the levy payments to the Commonwealth. Imposes penalties for unpaid levies. • Horse Disease Response Levy (Consequential Amendments) Bill 2008 Amends the Australian Animal Health Council (Live-stock Industries) Funding Act 1996. Unfortunately they are constructed on framework which is not pertinent to the equine industry and are fundamentally flawed as they do not comply with many facets of the Government’s Guidelines and Principles. Ambiguous terminology, incorrect definitions and undefined areas relating to the legal implications and ramifications for voluntary horse organizations and volunteers have rendered the Bills unacceptable, unworkable and most importantly, not cost effective. Other areas of concern surround the fair and equitable collection of any proposed horse levy. Approximately 70% of the Equine Industry does not derive any income from their horses although they pay millions of dollars in GST which is not reclaimable and without benefit from tax deduction on horse related expenditure e.g. feed, fuel, vet expenses, farriers, saddlery and competition entry fees, although these same horse owners are the main stay of these subsidiary industries. Prior to the September 16 Emergency Workshop, The Queensland Horse Council conducted three surveys on EADRA, proposed levies, compulsory registration and microchipping. At a QHC General Meeting held on the 15th July 2008 members clearly indicated that they were not prepared to be signatories to EADRA at this time or agree to a levy and the following motion was carried without dissent:- "that the members of the Qld Horse Council Inc are not in favour of signing the Emergency Animal Disease Response Agreement or committing to any associated levy at this time" Furthermore, the members rejected any proposal for Compulsory Registration of horses or Compulsory Microchipping. The QHC’s National affiliate, the Australian Horse Industry Council (AHIC) has been fully informed of the QHC’s members’ views, survey results and formal motions but the AHIC has not represented this to the Federal Government. Under advice from members, the Queensland Horse Council has deferred its membership of the AHIC for the first time in 22 years in order to distance itself from the AHIC’s commitment to support the Bills as they stand and sign EADRA. For any enquiries, please contact: Chief Executive Officer Dr Fiona Thompson BVSc (Hons) Level 5 Primary Industries Bld 80 Ann Street, Brisbane Q 4000 Tele: 3239 3192 Fax: 3239 3504 Mob: 0423 662 338 Email: ceo@qldhorsecouncil.com

Author: Dr Fiona Thompson BVSc CEO, Queensland Horse Council Inc HORSE DISEASE RESPONSE LEVY BILL Last week the Horse Disease Response Levy Bill and cognate Bills were passed through the House of Representatives. The Bills have now been referred to the Senate Rural and Regional Affairs and Transport Committee for further review and consultation. This levy would be put into place after an emergency disease incursion. The QHC is continuing to voice member’s views as is demonstrated by several readings of QHC correspondence in the parliamentary records (Hansard-see). Follow the link below, then click on House Hansard on the left hand side, then go to September 1, 2, 3, 2008 to view the transcripts. www.aph.gov.au/hansard QHC Directors and members will be attending a workshop to come up with submissions to meet the 22nd September 2008 deadline set by the Senate Rural and Regional Affairs and Transport Committee. The Senate Committee will be expecting their report on this matter out by the 3rd October 2008.

ACA Welcomes a Respite in the Overheated Horse Levy Debate The Australians' Campdraft Association Inc (ACA) congratulates the Senate on intervening to inject common sense into the debate over the introduction of a horse disease levy across Australia. ACA President, Noel Chiconi, said today's decision to refer the package of `Horse Disease Response Levy Bills' to the Senate Standing Committee for Rural and Regional Affairs and Transport is a positive move. "We now have a chance to rectify a flawed levy and collection mechanism which could destroy the viability of the Performance and Pleasure Horse Sector if introduced in its current form." Mr Chiconi says under the current proposal the performance and recreational horse sector is being disproportionately slugged with the cost of responding to a future exotic disease outbreak like Equine Influenza. He said the Horse Disease Levy Bills have passed through the House of Representatives, yet the focus of the debate preceding vote was not on the merits of an Emergency Animal Disease Response Agreement (EADRA) itself, but on the Levy Collection Mechanism clauses within it. "Revision of the proposed levy collection mechanism is integral to EADRA being accepted by the Performance and Pleasure Horse Sector," said Mr Chiconi. He noted that "the Minister realised that there certainly was not widespread support for the concept of levy collection on `registered' horses" and therefore more consideration needs to be given to devising an unbiased system for all. "The solution must be equitable without recreational horse owners across the country being made the signatories to a blank cheque." He said the suggestion by Federal Agriculture Minister, Tony Burke, of a `contingency fee' that would be administered at arm's length from the government is also adding fuel to this fire. "We're extremely concerned about the possible use of the contingency fee to fund a peak body which is not accountable to a membership of horse owners." Mr Chiconi said it is understood that the Senate Committee will now review the current legislation with actual industry participants and organizations who would be responsible for collecting an EADRA Levy. "The ACA welcomes the chance for proper consultation and the opportunity to directly offer the Senate Committee productive, quality advice and meaningful facts which are well researched by a creditable industry body." ACA Media Contacts Noel Chiconi, ACA President, ph: (07)4623 2711 Robyn Paine, ACA Secretary, ph: (07)4665 9277 Email: aca@campdraft.com.au

23rd July 2008 The Hon Tony Burke MP Minister for Agriculture, Fisheries and Forestry PO Box 6022 Parliament House CANBERRA ACT 2600 Dear Minister Re Emergency Animal Disease Response Agreement (EADRA) Thank you for your letter of July 15 in response to my correspondence of the 7th March 2008 and explaining your desire for the horse industry to become a signatory to the EADRA and the best method to raise funds to cover the industry’s potential share of future costs. The Queensland Horse Council has conducted three surveys on EADRA, proposed levies, compulsory registration and microchipping. The QHC promoted these surveys in conjunction with and in support of the AHIC and requested all horseriders to also respond to the official AHIC surveys. Not all associations registered their opinion, however the response represented approximately 20,000 horse riders. The results were:- 1. Should the horse industry sign up to EADRA? (Emergency Animal Disease Response Agreement) 60% No 25% Yes 15% Undecided 2. Do you think horse owners should pay a Government Levy to help pay for stopping disease outbreaks? 87% No 13% Yes 3. Do you think your horse/s should be compulsory registered on a central Government database? 48% No 35% Yes 17% Undecided In addition, the QHC convened a General Meeting on 15th July 2008 to further discuss these issues. As a result I have been instructed to inform you that the members are not prepared to be signatories to EADRA or agree to a levy and the following motion was carried without dissent:- "that the members of the Qld Horse Council Inc are not in favour of signing the Emergency Animal Disease Response Agreement or committing to any associated levy at this time" Furthermore, the members rejected any proposal for Compulsory Registration of horses or Compulsory Microchipping. I have also been instructed to advise you that the membership of the Queensland Horse Council represents in excess of 37,500 horse riders and to request that you consider this as a substantial and relevant indication of opposition to EADRA in its present form. The main concerns relate to you viewing the Horse Industry in the same light as industries such as cattle, dairy and sheep. In brief, the Horse Industry has three sectors, Racing (Thoroughbred & Harness), Commercial and Recreational. The Recreational Sector accounts for 80% of the whole industry but this 80% sector does not derive any income from their involvement and therefore believe they should not be levied or taken as a whole with the other two sectors. A parallel may be seen with the back yard chicken/fowl sector which is far greater than the chicken meat and laying chickens Industries but not included with either Industry. While the Recreational sector does not derive any income they pay millions of dollars in GST which is not reclaimable and do not get the benefits of the other two sectors such as tax deductions on horse related expenditure e.g. feed, fuel, vet expenses, farriers, saddlery and competition entry fees, although the Recreational Sector is the main stay of these subsidiary industries as was demonstrated by the recent EI crisis. It was also demonstrated during the EI crisis that the Recreational Sector accepted and co-operated with lock downs and restrictions without the benefit of the financial support given to the other two sectors. This co-operation has not diminished and the QHC membership would welcome further discussion with you. The following gentlemen are available for this purpose:- John R Brodie Ph/Fax. 07 4659 9706, Mob. 07 439 211 665. Email: longestride@uqconnect.net Yours sincerely Lorraine Decker Hon Secretary

No horse levy yet, says Burke 4/09/2008 10:43:00 AM The Government has moved to quell horse owners' fears about a levy to fund its disease response activities, saying the Bill passed by the House of Representatives does not impose a levy, but only provides a mechanism for a levy to be imposed if needed in the future. The Rudd Government yesterday succeeded in passing the controversial Bill through the House of Representatives after three days of debate. A spokesperson for Mr Burke said the Bill was aimed at providing a mechanism for imposing a levy on horse owners to help cover the cost of responding to future disease outbreaks. She said the levy set by the Bill was "zero" and would only be raised if needed in future. And the levy rate would be set only after consultation with horse industry stakeholders, she said. However, Coalition MPs yesterday opposed the Bill, arguing it unfairly placed the majority of the burden on the amateur sports and pleasure horse industry, over the highly commercial thoroughbred and racing industries. The Bill next faces the Senate where Labor will have to negotiate with the minor parties to ensure its passage into law.

Horse owners to be hit by levy 2/09/2008 5:21:00 PM Federal Member for Maranoa, Bruce Scott will tonight oppose the Rudd Government's legislation to enforce a horse disease response levy on Australia's equine industry. Mr Scott said the levy, which would be activated in the event of another equine disease outbreak, such as the equine influenza and Hendra virus, would be imposed upon all registered horses, regardless of the risk they posed to Australia's biosecurity. “With 80pc of registered horses used for pleasure activities, the burden of this ill-conceived levy will fall on the industry's recreational sector, despite it being highly unlikely it would be responsible for the introduction of a foreign disease,” Mr Scott said. “The outbreak of equine influenza last year had a financially devastating impact across all sectors of the horse industry - racehorse owners, jockeys, equine-related small businesses, vets, horse breeders, camp drafters and pony club families were all affected by the virus. “Should another outbreak of an equine disease occur, imposing such a levy would only further hurt an industry facing financial hardship. “The Rudd Government should not be focused on recouping costs from a possible future outbreak, but instead should be dedicated to immediately improving our quarantine measures to ensure it does not happen again,” he said. Queensland Country Life

QHC MEMBERS VOTE NOT TO SUPPORT EADRA AT THIS TIME Members at the QHC's General Meeting on 15th July 2008 endorsed the findings from three surveys and voted against signing the Emergency Animal Disease Response Agreement or committing to any associated levy at this time. Furthermore, the members rejected any proposal for Compulsory Registration of horses or Compulsory Microchipping. Concerns which were voiced in surveys and at the QHC General Meeting related to the Federal Government viewing the Horse Industry in the same light as industries such as cattle, dairy and sheep. Leading up to the QHC's General Meeting on July 15, key stakeholders meet in Canberra on 25th June 2008. The following report has been jointly compiled by the Queensland contingent present at this meeting.