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What needs to happen - Tasmanian Shellfish Executive Council
- 1. What needs tohappen!!
- 2. What needs tohappen!!
- 3. What needs tohappen!! Do we retain our current structure and funding model? If we do we will have to reduce the service to industry. OR Do we evolve to suit our needs? We will need to restructure our representation and our financing.
- 4. What needs tohappen!! • What can we afford to have happen? • Under the current funding structure NOT MUCH! • Farm Gate Value of $23.8 million (3,724 tonne @ $6,400/tonne) • Actual Investment of 0.0% to Communication, Advocacy and Support. • This Industry body (TSEC) is funded by donations of goods and services from suppliers that are sold at the Annual Auction.
- 5. What needs tohappen!! There is very little real contribution from farmers as they receive goods for their funds. (Albeit overpriced at times) General acceptance across Australian Industry is up to .4% of Gross Product Value for Communication, Advocacy and Support. What is the best process to collect the funding required?
- 6. What needs tohappen!! TSEC Directors meeting in February 2013 consensus was for a Single Levy To fund a Part or Full Time Executive Officer What do we base a levy on? Licences? Turnover? Hectares Leased? Seed Purchased? There are “Pro’s and Con’s” for the differing methods.
- 7. What needs tohappen!! Need to look at the legal requirements. Practicalities of situation are: TSEC is an Incorporated Body. has no funding stream or formal mechanism to collect levies. TORC is a Not for Profit Limited Company. has a formal levy system to fund research. articles do allow for it represent the Industry in ALL matters.
- 8. What needs tohappen!! How do we collect funds from ALL industry participants? Levy: Invoiced and collected by Industry Body No guarantee of payment Levy: Collected by Government with yearly Licence and Lease Fees Applied to ALL Industry participants Secure payment Seed Purchased: TORC Levy Only applies to ACTIVE participants not ALL participants.
- 9. What needs tohappen!! Levy based on: Licences: Easy to manage. Not entirely equitable due to varying sizes of Leases. Turnover (Sales): Hard to manage. Open to manipulation as disclosure and privacy of financial records is required. Hectares: Easy to manage. Not entirely equitable as same service is available to ALL.
- 10. What needs tohappen!! Levy based on: Seed Purchased: Easy to manage (current system already operating). Places the collection burden on hatcheries. Only captures active industry participants. Total Income stream for the Industry body relies on seed sales.
- 11. What needs tohappen!! How do we BEST structure for OUR Industry representation? The Board of TSEC and TORC have both considered this and believe that it would be best served by a single entity. It would: Streamline Industry administration Enable the employment of a fulltime Executive officer.
- 12. What needs tohappen!! Oysters Tasmania or Shellfish Tasmania Board This body should have two (2) sections – Research and Advocacy Finance Executive Officer Advocacy and Communication Research Oyster Health Surveilence ASI Amalgamate TORC and TSEC as a single entity Breeding Experimental Aquaculture Facility Government Industry TSQAP
- 13. What needs tohappen!! 2012 Industry Statistics 109 Marine Farm Licences 78 Different Names on Licences 63 “Actual” Operating Entities 1,523 hectares Production 3,724 tonnes Farm Gate Value $23.8 million
- 14. What needs tohappen!! Contribute to Advocacy 0.4% of Production Value $23.8 million Gross Farm Gate Value = $95,200 funding pool
- 15. What needs tohappen!! Results of Grower Poll for Industry Levy Prepared to Pay FEES Yes Industry Levy Collected by Govt' No Yes No Increase TORC Fees Yes No Poll of Growers was conducted to gauge the level of 49 10 10 support to raise a 58 levy to1support a restructured Number industry body. Percent 98.31% Number of MF Licences 109 Total Grower Responses 59 Percentage Response 54.13% Total hectares Surveyed 1523.5 1.69% 83.05% 16.95% 16.95% 49 83.05%
- 16. What needs tohappen!! Flat Fee per MF Licence Levy Based on Licences Required Funds Total Licence No Fee per Licence $90,470 109 $830.00 Grouped by Operating Name on Licence Levy Based on Operators Required Funds Number of Operator Names Fee per Operator $93,600 78 $1,200.00 Grouped on Operating Entity Levy Based on Actual Operators Required Funds Operating Groups Fee per Group Entity $93,600 63 $1,485.00
- 17. Examples Base Fee Hectare Fee Total Whatneeds to happen!! 5 hectare MF $500 $22.50 x 5 = $112 $612 10 hectare MF $500 $22.50 x 10 = $225 $725 TSEC Levy Examples 20 hectare MF Base per Licence Hectares $500 Fee Base 112 30 hectare MF 5 hectare MF $500 $400 50 hectare MF hectare MF 10 Total $500 $400 20 TSEC Levy Examples MF hectare $400 Base Fee Levy per Hectare Base per Licence 1523.5 Base Fees Totals Weighting $600.00 $65,400.00 74.11% $22.50 x 20 = $450 Hectare Fee $22.50 x 30= $150 $30.00 x 5 = $675 $15.00 $22.50 x 50 = $1,125 $30.00 x 10 = $300 $88,252.62 $30.00 x Fee Hectare20 = $600 $950 Total $1,175 $550 $22,852.62 25.89% $1,625 $700 $88,252.62 $1,000 Total 112 $500.00 $54,500.00 61.39% 1523.5 $22.50 $34,278.94 38.61% 50 hectare MF hectare MF 10 Total $400 $600 $15.00 $88,778.94 20 TSEC Levy MF hectare $600 30 hectare MF 5 hectare MF Levy per Hectare $400 $600 $30.00 x 30 $75 $15.00 x 5 = = $900 $30.00x 10 ==$150 x 50 $1,500 $15.00 x 20 = $300 $1,300 $675 $1,900 $775 $88,778.94 $900 Base per Licence $600 112 $400.00 $43,600.00 48.82% Levy per Hectare 1523.5 $30.00 $45,705.25 51.18% $89,305.25 $89,305.25 30 hectare MF 50 hectare MF Total $600 $15.00 x 30 = $450 $15.00 x 50 = $450 $1,050 $1,350
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- 19. What could happen!! Remember!!! We do not want Oyster Farmers to be like our following friends.