ACC for the Cows? Analysing How Best to Deal with the Losses Caused by Biosecurity Breaches

Abstract

Since 2010, New Zealand has suffered a number of biosecurity breach events causing losses to primary industries. The response decisions from the Ministry for Primary Industries have had huge impacts on different sectors ability to recover their losses. This paper considers the current approach to recovering financial losses caused by biosecurity breaches. It evaluates the options available for reform; Negligence claims, comprehensive state compensation schemes, private insurance and improving the existing scheme. The ability for capped state compensation schemes to share costs according to benefits gained, increase certainty and consistency in the application of compensation and the avoidance of long drawn out negligence cases makes it the most viable solution to these compensation issues.

Keywords: ACC, biosecurity breaches, negligence, private insurance, state compensation