Affected farmers can claim compensation where MPI's exercise of legal powers (under the Biosecurity Act 1993) has caused them a verifiable loss.
How compensation works
Compensation may be paid to people who have incurred a verifiable loss as a result of directions they are given by MPI under the Biosecurity Act to manage Mycoplasma bovis.
Farmers that are directed to have animals culled, or their farm operations restricted under movement controls, may be eligible for compensation.
Eligibility to claim compensation
If you can show that MPI’s exercise of powers has caused you loss, then you may be eligible to be paid compensation.
Yes - you can claim if all 4 of the following criteria are satisfied:
- MPI has exercised powers to eradicate or manage an organism, and
- The exercise of powers has caused a loss to you, because either:
- the damage or destruction of your property, or
- restrictions being imposed on the movement or disposal of your goods, and
No - you cannot claim if:
1. The loss was suffered before the exercise of powers commenced, or
2. The loss was suffered more than a year before the claim was submitted, or
3. You failed to comply with biosecurity law in a serious or significant way, or in a way that contributed to the presence or the spread of the organism, or
4. Your goods are unauthorised or uncleared (i.e. imported items which had not been cleared).
Compensation claim form
If you're eligible, you'll need to complete a compensation form and submit proof of your loss. Check the guidance documents to ensure you fill out the form correctly.
Download the compensation application form [DOC, 244 KB]
What you need to know when making a claim
Compensation may be paid to the legal owners of:
- property that was damaged or destroyed, and/or
- goods that were affected by movement restrictions.
You can authorise someone else (an agent) to prepare and submit a claim on your behalf.
If you are submitting a claim, you must:
- provide all relevant evidence to support the claim
- lodge the claim within 1 year of the loss occurring
- sign the statutory declaration in front of an official witness, such as a justice of the peace or solicitor.
These are losses incurred due to MPI’s exercise of the powers causing damage to, or destruction of, your property.
This loss might have been caused by MPI issuing a Notice of Direction (NOD). These directions may require you to depopulate animals in a prescribed way, causing you a direct loss.
NOTE: The Biosecurity Act compensates for the loss caused following MPI’s exercise of powers began. This means that, if a loss occurred before the power was exercised, compensation cannot be paid.
You may claim compensation if you have suffered a loss because MPI exercised its powers by placing restrictions on the movement or disposal of your goods.
This loss might have been caused by MPI issuing:
- a restricted place notice (RP)
- a controlled area notice (CAN)
- a notice of direction (NOD).
You must comply with any movement or disposal restrictions if directed to do so by an MPI inspector or authorised person. These directions might prohibit the movement of certain goods on and/or off your premises, or may require changes in specific business practices that have caused you a direct loss.
If MPI’s movement or disposal restrictions mean that you cannot sell your goods as normal for a period of time and your business incurs a loss as a result, you may apply for compensation for the loss of profit. The compensable loss will usually be calculated based on the net profit margin, not the sales price.
If MPI’s movement or disposal restrictions mean you have incurred additional costs in order to meet these requirements, you may apply for compensation for these expenses.
You are entitled to be paid compensation under the Act for a loss that you were unable to mitigate by taking every step that is reasonable in the circumstances.
The more complete the information and supporting documentation you provide with your claim to verify your loss, the easier and quicker it will be for MPI to assess your claim.
If information is missing or unclear, MPI may have to come back to you for clarification and/or request additional evidence to support your claim. This may also hold up the processing of your claim. For any losses you claim, MPI must be able to verify this – please include detailed supporting documents along with your claim form.
Once I submit my form, what happens next?
Once MPI has received your claim, we will check it for completeness, and may need to come back to you for further information. We cannot fully assess a claim until all the necessary information has been provided.
Once your claim has been allocated to an assessor at MPI, they will be your first point-of-contact if you have any enquiries, including the progress of your claim.
The time it then takes to assess and authorise your payment will depend on a number of different factors, such as the information you have provided with your claim, and the value of the claim. While we make all endeavours to pay you as soon as we can, please be aware that once we have made our assessment any decision will require the appropriate internal and external approvals to endorse and authorise your claim.
Find out more
For general information about claiming compensation contact the MPI compensation co-ordinator:
- Phone: 04 894 0055
- Email: email@example.com
- Fax: 04 894 0720
- Post: Ministry for Primary Industries, PO Box 2526, Wellington 6140
- Courier: Ministry for Primary Industries, Pastoral House, 25 The Terrace, Wellington.
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