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Home / Business

'Incentive lost' if taxpayer foots GM bill

Brian Fallow
By Brian Fallow
Columnist·
20 Jul, 2004 10:34 AM2 mins to read

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By BRIAN FALLOW

Farmers who inadvertently plant genetically modified maize, and the seed importer which supplies them in good faith, will be compensated by the taxpayer for the costs of containing the incursion.

However, a Sustainability Council report said yesterday that paying compensation weakened the incentive on seed importers to choose the
lowest-risk option when selecting seed to import.

But the seed importer involved in the latest incident, Corson Grains, says it does not need any additional incentive to take precautions.

The Biosecurity Act requires growers and importers to be left no better or worse off after whatever measures the Ministry of Agriculture takes to contain the problem.

In this case, that is milling the harvested grain so it cannot reproduce and destroying any unsold seed.

But Corson general manager Shane Lamont said that covered only realised costs, not damage to the brand.

"There will be damage to our sales, I suspect, and we are not for a minute expecting to be compensated for that."

MAF is readying a paper for the Cabinet on whether zero tolerance policy on GM should be maintained.

The council, which opposes relaxation of the standard as a threat to the national clean, green brand, says how much risk seed imports pose depends heavily on choices importers make, including where they source the seed and the quality assurance programmes they use.

Executive director Simon Terry said before the Hazardous Substances and New Organisms Act was amended last October, no compensation was normally payable to parties which were required to clean up GM contamination.

But now, following lobbying by Federated Farmers, compensation payments were compulsory regardless of the degree of risk chosen by the importer.

Said Terry: "It's socialising the losses caused by those who elect to take greater risks."

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