18 October 2007

Equine Influenza Special Edition

The full costs of the equine influenza

Editorial

The Australian Government’s Mid-Year Economic and Fiscal Outlook 2007-08 (expenditure and revenue measures that supplement the Australian Government Budget released in May) released in mid October has revealed the full cost of Australian Government expenditure on equine influenza.

The expenditure costs of a $92.5 million assistance package plus a $9 million spent on the commission of inquiry.

In addition, the Treasury document notes that the “The Australian Government may become liable for compensation actions should the Department of Agriculture, Fisheries and Forestry be found negligent in relation to the recent outbreak of EI. At this stage any potential liability resulting from the EI outbreak cannot be quantified. An independent inquiry is being conducted into the entry and spread of EI in Australia.”. The amount of compensation is unknown but could become enormous

Details of expenditure

Below are details of the expenditure.

Equine influenza — assistance

The Government will provide $92.5 million in 2007-08 to assist those suffering additional costs and financial hardship as a result of the equine influenza outbreak and associated quarantine measures. This includes funding for Centrelink of $5.5 million in 2007-08.

The assistance includes:

• a hardship fund to provide emergency grants of up to $1,500 to eligible individuals and businesses (a total of $4.0 million);
• a wage supplement, eligible for the beneficiary tax offset, to low-paid workers and sole traders who have lost their jobs or the majority of their income (a total of $18.0 million);
• taxable grants of up to $5,000 to support eligible businesses that derive the majority of their income from the commercial horse industry and that have been significantly affected by the outbreak (a total of $31.5 million);
• a commercial horse assistance payment for the welfare and ongoing training of horses to ensure they remain fit and healthy (a total of $32.4 million); and
• grants of up to $200,000 for non-government, not-for-profit equestrian organisations that have provided assistance and services over and above their normal activities during the outbreak (a total of $1.0 million).

Equine influenza outbreak — Commission of Inquiry

The Government will provide up to $9.0 million in 2007-08 to establish a Commission of Inquiry into the circumstances surrounding the entry of equine influenza into Australia.

The inquiry’s terms of reference are to inquire into and report with respect to:

• the circumstances that have contributed to the outbreak of equine influenza in Australia; and
• the need for any strengthened biosecurity procedures for quarantine management of imported horses.

Contact details, and other information including the terms of reference for the Inquiry, are available on the Commission’s website: www.equineinfluenzainquiry.gov.au