Senate Rural and Regional Affairs and Transport Legislation Committee, , 21:00 to 24:35
Senator Canavan questions the department on ANAO findings regarding biosecurity cost recovery surpluses and the management of financial risks.
Topics: Biosecurity, Export cost recovery, Government spending
Speakers: Matthew Geysen, Hon Matthew Canavan, Miss Victoria Anderson, Senator Glenn Sterle, Unknown Speaker
>> Thank you, Mr. Anderson. And I'll invite questions on corporate matters. Senator Canavan.
>> Thank you, chair. Uh thank you uh minister and secretary. I've just got some questions about um report number four, believed uh in May about biocurity uh how much >> bio security cost recovery revenue has DAFF collected how much was spent and what was the surplus in each of the last three financial years
>> thanks Senator I think our CFO will take this question Mr. Garnon.
>> Uh thank you, Senator. Matthew Garson, chief finance officer. Uh so for the last 3 years in the biocurity arrangements. Uh I'll start with 2223 total revenue was 364 million. Uh total expenses was 351 million.
>> Million.
>> Sorry,
>> I think you said billion.
>> Sorry, million. >> Uh with an accumulated uh deficit of 6.8 8 million. In 2425, total revenue was 428 million. Total expenses were 408 million with a surplus of 13.6. Uh sorry, that's the accumulated result. Sorry, I'll come back to um the accumulated deficit. Uh and then for 2526, the total revenue was 466 million and total expenses were 453.
Okay. So, um, so as the ANA report found, there's been surpluses recovered here. I mean, why why is why is why farmers being overcharged then for these services at
>> Firstly, Senator, it's mostly not farmers who are paying these fees. It's importters. So, um, just wanted to clarify that. I think we don't budget to either over or under recover expenditure that is cost recovered from industry. The department we sets prices consistent with the government policy and in most cases this is u the cost to estimate estimated to fully recover uh for the provision of regulatory services. So our assumptions to calculate prices can change during the financial year and that can result in surpluses or deficits and we've had both over the last uh four or five years and this is normal. We do try to minimize variances wherever possible, but where there are unforeseen fluctuations, it's often because we've taken time to staff up to the levels required to deliver the services rather than um anything else. But Mr. G may want to add to that.
>> Um and just seconding Senator what the secretary has said, we have [clears throat] had that significant growth in revenue over the past couple of years, uh in particular uh with the implementation of the the self assess clearances. And so for 2526 compared to 2324 that's added another $60 million worth of uh revenue to the biocurity arrangement. So um and for us to be able to respond to that growth uh we actually uh receive or or invoice in a rears. So understanding the demand and being able to respond to that and staff up to that does take time.
>> So I understand the evidence you provide is you don't intend to overcharge. I suppose the issue is the auditor general found that and I quote, excuse me, quote from the report that DAFF is not managing the risk of under or over recovery. Do you agree with that conclusion? And if so, why weren't you managing the risk of this occurring?