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A Principles-Based Cost-Recovery Framework for Biosecurity and Wider Government Investment Decisions

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Abstract
  • Australian governments spend millions of dollars each year on pre-border, border and post-border biosecurity programs. The majority of these programs are resourced through existing deeds of agreement, but some currently fall outside of these funding frameworks. Frameworks not based on economic principles have the potential to deliver sub-optimal outcomes with regard to the efficiency and equity of cost-recovery arrangements. This paper presents a principles-based biosecurity investment decision framework that is designed to produce objectively determined decisions in the absence of suitable quantitative evidence. The framework is an extension of past research by the Productivity Commission into cost recovery by government agencies. It equips the decision maker to determine whether a role exists for government to intervene in relation to a problem being considered. The framework encourages the application of a market failure test and then guides the decision maker to both identify the most appropriate government initiative to put in place and to establish the most efficient cost-recovery mechanism. The framework has been adopted by NSW Trade & Investment for program evaluation purposes and for the NSW Biosecurity Strategy. While presently customised for biosecurity, this framework would be suitable for wider government application.
  • Keywords: Special Topics, Cost-Recovery Principles for Fisheries and Biosecurity, Fisheries Economics
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  • Smith, Harley and S. Webster. 2014. A Principles-Based Cost-Recovery Framework for Biosecurity and Wider Government Investment Decisions. In: Towards ecosystem based management of fisheries: what role can economics play?: Proceedings of the Seventeenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 7-11, 2014, Brisbane, Australia. Complied by Ann L. Shriver & Melissa Errend. Corvallis, OR: International Institute of Fisheries.
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  • Fisheries Research & Development Corporation, World Wildlife Fund, MG Kailis Group, AquaFish Innovation Lab, NOAA Fisheries, The European Association of Fisheries Economists, Japan International Fisheries Research Society, United Nations University, NORAD
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