The document discusses options for restructuring the representation and funding of the Tasmanian oyster industry body. It notes that under the current funding model of donations, very little is actually invested in communication, advocacy and support. Two options are presented: retain the current structure and reduce services, or evolve the structure and representation to better suit industry needs through restructuring and alternative financing such as a levy. A survey of oyster farmers showed strong support for amalgamating the two existing bodies and collecting a levy managed by the government to fund industry representation and services. Various options for calculating the levy amount are presented and analyzed.

1. What needs to happen!!

2. What needs to happen!!

3. What needs to happen!!
 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 to happen!!
•
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 to happen!!
 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 to happen!!
 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 to happen!!
 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 to happen!!
 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 to happen!!
 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 to happen!!
 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 to happen!!
 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 to happen!!
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 to happen!!
 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 to happen!!
 Contribute to Advocacy
 0.4% of Production Value
 $23.8 million Gross Farm Gate Value
 = $95,200 funding pool

15. What needs to happen!!
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 to happen!!
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
What needs 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

18. What could happen!!

19. What could happen!!
Remember !!!
We do not want
Oyster Farmers
to be like our following friends.