Govt: PSA outbreak will cost $75m

Biosecurity Minister David Carter. Photo / Christine Cornege

The Government has announced a $50 million plan to fight the kiwifruit vine bacteria PSA and expects total losses from the infection of $75 million over the next two years.

The vine canker bacteria has so far been found at 28 orchards, including half a dozen outside the 23km area of infection south of Te Puke, two of them in Hawke's Bay, one in Motueka, and one in Golden Bay.

At a media conference in Wellington this morning, Biosecurity Minister David Carter said $25 million would be provided by the Government to fund an "urgent, aggressive strategy" - subject to a dollar-for-dollar match from the industry.

"This is the government and industry taking a leadership role to ensure the future of one of New Zealand's brightest primary sector industries," Mr Carter said.

"By tomorrow night we expect confirmation from growers and industry that they are prepared to accept the package."

The funding package will cover a range of actions including limited grower compensation for income loss, management techniques and continued research into the disease.

Mr Carter said it was now accepted that "eradication is not an option" and much of the funding would be used for an aggressive containment programme involving more spraying to suppress the bacterium and heavy pruning of vines showing signs of infection, in some cases right back to the root stock.

At present about 300ha of the country's 13,000ha of vines were affected and would be pruned. However, up to 700ha may eventually need to be cut back. That represents just over 5 per cent of New Zealand's production.
Outbreaks of PSA in Italy and Korea in recent years had reduced production by 50 per cent and 90 per cent respectively.

Mr Carter said the industry and government's rapid co-ordinated response had probably prevented losses on a similar scale.

Even with the compensation under the plan announced this morning, grower losses over the next two or three years were expected to be about $25 million taking the expected overall cost of the outbreak to about $75 million.

Over time it would be necessary for the industry itself to develop and fund a longer term strategy to deal with PSA, and no more government cash would be forthcoming, Mr Carter said.

The funding announced this morning follows a meeting last night where Mr Carter took an urgent plea from the kiwifruit sector for financial help to Prime Minister John Key and Finance Minister Bill English. Mr Carter said this morning's package was exactly what was requested by the industry yesterday.

There are 3077 registered kiwifruit orchards in New Zealand and their production earns about $1.5 billion.

The Ministry of Agriculture and Forestry (MAF) biosecurity arm recently started talks with primary producers to create Government-industry agreements to manage readiness and response activities, while the taxpayers continued to fund general border controls.

It wants a single deed of agreement for all sectors, with specific operational agreements for various pests and diseases. "The proportion of public benefit relative to industry benefit will determine the cost shares for readiness and response," biosecurity executives said.

The new Australian-style system is expected to be brought into biosecurity legislation when it is amended in the middle of next year.

Labour's biosecurity spokesman Damien O'Connor has welcomed the Government's commitment but said it was still being short-sighted over its trimming of biosecurity staff.

- with NZPA