MPI says oyster biosecurity claims compo not guaranteed

MPI says the call to "depopulate" farms was widely supported by technical experts and "the local oyster industry". Photo / Otago Daily Times

The Ministry for Primary Industries says it can't be assumed all losses claimed by Stewart Island oyster farmers will be paid out.

The country's biosecurity guardian was responding to a Herald story on the progress of compensation payments after 2017's cull that led to farmers claiming losses understood to be around $100 million.

One year after it ordered the destruction of millions of oysters, MPI had paid out less than $1m in compensation.

But the ministry said while the Biosecurity Act provides for compensation, it does not mean any claim is automatically eligible.

"Each claim has to go through a rigorous assessment and verification process. This is important and fair. So the dollar claims submitted is not necessarily going to reflect the amount owed by the Government," said a spokesperson.

"The amount that has to date been paid to oyster farmers is for the verifiable loss as so far assessed."

Some of the $100m in claims cited by oyster farmers has yet to be verified.

"We have much sympathy for those affected by the bonamia ostreae (disease) outbreak. You will however appreciate that, where taxpayers' money is concerned, particularly when the amounts involved are so significant, due care has to be taken to assess and verify claims," the spokesperson said.

Asked by the Herald last week for the total amount of claims made, MPI responded: "Indication valuations of eligible compensable payments, based on assessments undertaken to date equal $5.2 million". Two out of 40 claims by 15 parties had been settled in full and three partially, MPI said.

However claims by one affected business, New Zealand's Bluff Oyster Company, total $70 million according to its principal Rodney Clark, while the EEC marine farming company said it lost two million oysters to the MPI destruction order.

Both companies say Big Glory Bay, from where the farmed flat oysters were removed to save the wild Foveaux Strait oyster population, is today teeming with healthy oysters because the disease bonamia ostreae was never proven to be established there.

But MPI says the call to "depopulate" the farms was widely supported by technical experts and "the local oyster industry".

Asked also for its expectation of total claims MPI said "assessments are still being concluded".

The Act requires claims to be submitted to MPI within 12 months of the loss being incurred.

MPI also takes issue with a claim by Rodney Clark, who said his business was "ruined" by the MPI order, that he had received no payment beyond a $30,000 emergency grant which disappeared into a big debt hole.

"While we cannot discuss the actual detail of payments, we can confirm the New Zealand Bluff Oyster Company (sic) received a second and substantial payment from MPI in June 2018. In addition, the company has received payment for assisting with removing oysters from the farm," said the spokesperson.

Clark, who has no job now, stands by his claim, saying his company received a payment of about $191,000 in June, but he has received nothing for his personal claims for loss of wages.

MPI also challenges EEC company principal Joe Cave being reported as calling the destruction order "a knee-jerk reaction" when MPI's decision to destroy the oysters was "widely supported by technical experts and the local oyster industry".

Cave, who declined to say how much EEC is claiming, called MPI's performance "highly unsatisfactory" and said MPI had refused to engage in email correspondence.
MPI said the ministry "has no emails that have not been responded to".