Horse Industry Consultative Committee - Meeting Minutes 24

The Chair welcomed members to the 24th meeting of the Horse Industry Consultative Committee (HICC). The Chair acknowledged apologies from those who could not attend and recognised members’ effort to travel to Canberra and participate in the meeting.

Dr Martin introduced herself as First Assistant Secretary of Biosecurity Animal Division and welcomed members. Dr Martin provided an update about the 2021-22 Federal Budget and the government’s recognition of the importance of biosecurity. The pre-budget package for biosecurity announced $371 million in additional supplementary funding to be spread over four years. This is intended to help reform biosecurity systems in recognition of changes to trade patterns, with large volumes of cargo and mail arriving onshore, and in anticipation of the reopening of international borders.

Dr Martin mentioned the changing status of biosecurity risks offshore with emerging infectious diseases such as African Horse Sickness and its risk of entry into Australia. There is more funding for offshore work including consulting closely with pacific neighbours to improve the system as a whole. The aim is for a robust system to manage the breadth of biosecurity threats which includes a focus on preparedness, improved diagnostic testing, and understanding vectors. Funding is targeted at modernisation of border systems including through improved technology. Dr Martin confirmed the package for managing the risk of African swine fever will continue.

The Post-Entry Quarantine (PEQ) Biosecurity Operations Assistant Secretary Dr Finnin introduced himself and provided an update on recent changes to staffing and the restructure within the Biosecurity Operations Division.

Dr Finnin advised that he will be moving to Animal Biosecurity Branch and his position will be replaced with a new Principal Director which will be announced soon. Dr Finnin advised where there was previously a standalone PEQ group there would now be changes to the upper-level reporting structure for operations management. Dr Finnin reassured members that there would be no changes on the ground and Ms Nolan (PEQ Operations) is still the primary contact point for horse importers.

Mr Burke (IRT) called for this agenda item, stating to the committee that PEBS may be acceptable for single-use clients but doesn’t work for the horse industry because the technology can’t support repeat clients. PEBS does not have the capability to save or upload horse data and does not have the basic ability to save importer account details. Repetitive data entry for every consignment is inefficient and frustrating. Furthermore, PEBS is a web-based database with no security assurance, which concerns importers when entering private data. Mr Burke noted that industry has raised this problem many times and that industry continually does not get traction on issues that need to be addressed to help importers operate businesses effectively. Mr Burke wanted to make sure bigger picture vision is being taken on board to consider internal and external parties and wants to see better partnership with the department as biosecurity is a shared responsibility.
 
Dr Finnin (PEQ Operations) acknowledged and empathised with the situation and provided context. The horse team were aware a horse module was built back in 2015 and were exploring if it could be put into use for horses. Dr Finnin has liaised with a lot of people and acknowledged significant shortcomings with the system. PEQ Operations are looking into what systems could be used and are currently updating systems particularly around invoicing. He appreciates industry’s willingness to engage with what is and isn’t working and will continue to liaise going forward to develop a solution. PEQ Operations may need to put together a business case to invest in or build a new system. The aim is to find a solution that will work for both the department and industry long term.

Dr Martin acknowledged the department has a number of older systems that need to be updated as they are not user-friendly. There is currently a significant injection of money into export reform and the simplification of their systems. Imports are hoping to piggyback off these improvements. The department will look into available options.

Mr Small (Racing NSW) requested time frames against milestones for this. Mr Burke (IRT) pointed out the department drives the timelines with very little engagement with industry, or late engagement when it does occur. Mr Burke offered to travel to Canberra to discuss with the relevant teams.  Dr Martin and Mr Terpstra (Chair) acknowledged Mr Burke’s feedback and the need to find a solution.

ACTION ITEM 3: PEQ Operations to engage with industry to discuss mutually agreeable solutions that improve the usability of the PEBS system or adapt a suitable system for horse imports.

Mr Douglas, Director of Biosecurity Cost Recovery in the Finance Division spoke to this item. Mr Douglas is new to the role (three months). Finance Division has put together a summarised version of the report, so it is tailored to horses, although Mr Douglas is happy to share more information if requested and happy to take suggestions on what information members would prefer to see in future reports. The paper ‘Biosecurity Cost Recovery Arrangement for Horses’ shows that this financial year is tracking better than last year with less of a discrepancy between revenue and expense. Forecast to the end of financial year is for a similar surplus position of an estimated $83,000, assuming the remaining scheduled horses are imported as predicted.

Mr Kendell (horse industry consultant) questioned a large step up in expenses this year compared to a lower number of horses and referred members to the graph on the second page of the paper. Mr Kendell asked if there was any single obvious reason why this has occurred. Mr Douglas acknowledged the large expenses and will investigate and provide further information out of session to members.

Mr Burke (IRT) mentioned less horses are being booked due to COVID-19 and advised that the numbers may be softer (by an approximate 5-10% reduction), and that this will continue in the following years as there has been less competition and less travel to international horse sales. Mr Small (Racing NSW) advised that the last Canterbury Park intake had no Japanese horses and that the last European horses were only able to come via private aircraft.

Mr Terpstra (Chair) asked if there have been any more changes in transport route opportunities. Mr Burke advised that horse transport options are very limited and dependent on Qatar airways. They have been more willing than other airlines. Singapore Airlines are still not taking bookings for grooms out of Europe. The main thing is when there are less passenger flights, it removes the additional room in the belly hold of aircrafts for cargo and so airlines are doing a lot more cargo only routes to keep their industry viable. This leaves less opportunities for horse transports.

ACTION ITEM 4: Mr Douglas (Finance Division) to find out more details on larger expenses this year (noted in the Biosecurity Cost Recovery Arrangement for Horses paper) and get back to members out of session.

The Director of Cost Recovery Design in the Finance Division Mr Passer updated members on the Cost Recovery Implementation Statement (CRIS). The Finance Division has been working on a 2021-2022 CRIS after consultation with the Live Animal Exports Consultative Committee. The proposal is for a new fees and charges structure as the current arrangements were never intended to be ongoing.

The new CRIS is expected to be released on 14 May 2021. The department is seeking feedback on both CRIS and pricing structures and will be open to industry for consultation for a four-week period. There is not a lot in the way of cost reductions noted yet. Investment has been made into assessing the department’s regulatory arrangement to reduce expenses and improve efficiency. A consultation meeting with stakeholders is planned and members are encouraged to contact cost recovery if they haven’t been contacted but would like to attend. Contact can be made through the secretariat (horses@awe.gov.au) or the cost recovery mailbox (CostRecovery@awe.gov.au). The CRIS release may be delayed depending on ministerial priorities.

There is also a page on the department’s ‘Have your say’ website that HICC members can subscribe to. The page will be updated, and a link circulated to members by the secretariat.

Mr Burke (IRT) asked for an indication of the types of increases in charges industry should expect. Mr Passer advised the CRIS gives indicative charge increases required to recover for the significant regulatory costs of livestock. Reprofiling is being done to ensure fees go to the appropriate charge point so there is no cross-over between livestock and non-livestock.

Mr Burke noted there will be a substantial cost increase over the next three years. He requested FaBS provide the figures to industry as soon as possible and encouraged members to provide feedback.

Mr Passer said current investment reform includes digital reform and continued business changes with the hope of driving down prices over time. The 2021-22 CRIS is aiming to be an over projection of costs.  It is expected that price increases are to be implemented on 1 July 2021. 

ACTION ITEM 5: Secretariat to circulate the link to the department’s ‘Have your say’ page for CRIS.

Mr Douglas (Finance Division) reiterated he is new to this job role and apologised for not having in-depth knowledge of the offshore charging guidelines. However, he understands it needs to be resolved and is currently familiarising himself with them and will follow up with his predecessor. He will then provide members with more updated information out of session.

Mr Terpstra (Chair) acknowledged it is not as urgent as other agenda items due to international travel currently on hold pending the COVID-19 pandemic and that in the interim the department has already been using the draft guidelines to maintain an appropriate contemporary practice that best aligns with business needs more broadly.

ACTION ITEM 6: Mr Douglas (Finance Division) to provide additional updates to members on the offshore charging guidelines out of session.

Mr Burke (IRT) raised this agenda item and requested information on whether the Commonwealth has been approached on the proposed human hotel quarantine facility for COVID-19 next to the Mickleham Post-Entry Quarantine Facility (for animals and plants) and if the Department of Finance was looking into the matter.

Dr Finnin informed the committee that there has been a formal proposal provided to the Commonwealth by the Victorian state government, although nothing has been finalised. The Commonwealth is consulting with all relevant departments and are in active discussions.

Mr Terpstra (Chair) provided background information relating to the original intent of the land that was purchased for the Commonwealth facility with intended allowance for future biosecurity needs. This was historically pitched for plant and animal use, but it is a Commonwealth asset. The department’s views are only part of the much more complex broader discussion of COVID-19 management with the national cabinet in this political environment. There is no certainty or further information we can provide.

Mr Small (Racing NSW) asked if a human hotel quarantine facility for COVID-19 conflicted with any future master plan for the site. The Chair advised this is difficult to answer and would depend on what was built and the permanency of what was built. This would be contingent on the level of investment, a decision which would include the Department of Health.

Mr Kelly on behalf of Harness Racing Australia (HRA) updated the committee about the proposed equine industry Emergency Animal Disease (EAD) discussion exercise. The paper was circulated to members prior to the meeting.

Mr Kelly advised the exercise is still in development and is missing the draft scenario. HRA is funding the exercise and has commissioned Animal Health Australia (AHA) to organise this on their behalf. The timing of the exercise is flexible, taking into account major events such as the Spring Racing Carnival to encourage high participation rates by stakeholders. A formal planning team will be co-ordinated, and a concept document drafted by 31 May 2021.

The Chair introduced Dr Thomson (Animal Health Policy Branch). Dr Thomson noted it is a well drafted plan with good topics included and expressed interest in seeing more when the exercise and scenario is developed.

Responding to a question from Dr Gilkerson (AVA), Mr Kelly advised the AVA would be playing a pivotal role in this exercise. The intent is to select a disease that will provide genuine experience of an emergency disease outbreak. It was agreed communication through AVA is best for alerting veterinarians of disease outbreaks and for on-ground coordination of veterinarians and their clients to investigate, report and treat an outbreak. Members agreed there needs to be rapid clear communication with all parties every time a disease outbreak does occur as historically when the AVA are not involved there have been poorer communication outcomes.

Dr Thomson raised the importance of clear communication when training industry in the exercise. Dr Ellis (Australian Horse Industry Council) informed HICC that the recent Australian Horse Industry Council meeting highlighted communication with horse owners that are not members of any associations as being a key difficulty area and must be improved.

Mr Kelly is pleased with how the plans are progressing and will keep updating members as milestones are reached.

BREAK FOR LUNCH 12:20pm – returned at 1pm

Ms Massa-Ward, Director of enhanced traceability in Exports Division provided an update on the progress of NEXDOC. Several delays have impacted the project.

NEXDOC for dairy will go live on 17 May 2021 and will add efficiencies for end users. Users will be able to amend their own registrations, request replacement certificates and reprint certificates without any intervention from the department. This benefits the client and workflow within the department. All reviews will happen in one system and will only come to the department when required.

Blue paper for export health certification will no longer be required. Plain or white paper can be used with the addition of a QR code that can be scanned from a phone or through a department application. The aim is to expedite movement of products to importing countries.

The changes will tie in with other commodities, but live animal exports have not been scheduled for release yet. The changes are starting with fish and eggs, plant, and meat. Experience through the development process has shown that validating business requirements and user-experience testing early on generally results in a more user-friendly product that meets functionality and need.

Currently exports are all performed through third party software which requires either the exporter to purchase or engage an agent. There will now be a direct portal from the department’s website.

Mr Burke asked for clarification on software and how to register interest for when the horse commodity is being scheduled. Ms Massa-Ward expects to be able to give a better time frame of commodity scheduling at the next meeting.

ACTION ITEM 7: Ms Massa-Ward (Exports Division) to provide an update on release schedule to members at the next meeting or circulate details through the secretariat if information is available earlier.

Item raised by Dr Ellis (Australian Horse Industry Council) and Mr Burke (IRT). A paper (EU legislative updates and impact on horse exports) provided by Animal Biosecurity Branch (ABB) was circulated to members prior to the meeting. Dr Daly (Senior Veterinary Officer, Animal Biosecurity Branch) spoke to the paper and Dr Naylor (Assistant Director, Live Animal Exports) provided additional guidance.
Dr Daly outlined the most recent regulations to supplement the EU legislation known as The Animal Health Law.  Regulation (EU) 2021/403 updates the conditions for live terrestrial animals being moved within the EU and for entry into the EU. This includes horses and equine reproductive material, along with several other commodities. These new export conditions apply from 20 April 2021. However, there is a transition period until 21 August 2021.

Members were referred to the table in the paper (on pages 2 and 3) for the new categories of horse exports to the EU. The EU will no longer have a temporary import category for horses. There are also changed requirements around pre-export isolation which apply for transits and permanent exports. These changes may facilitate shuttle stallions returning to the EU. There have also been changes to reproductive material and ABB can provide more detail for those who are interested.

Dr Naylor recommended continuing to trade as normal using the old certificates under the interim period to give as much time as possible to implement the new certificates. Mr Burke expressed concern over the large amount of paperwork now required and asked for clarification of registered breeds in Europe and how these breeds are approved and recognised. Mr Burke also suggested trialling the new certificates before the cut-off date to help iron out any issues that may arise from clarification of clauses. Dr Daly asked Mr Burke to provide examples of which clauses have interpretation issues so they can be addressed sooner rather than later. 

ABB are aware of the EU animal breeding regulations, but the department has no official controls or legislative authority to allow it to meet the requirements of this legislation. ABB noted that the zootechnical certificates are not required as part of the normal process for entry into the EU. LAE added that some livestock/breed associations have current breed accreditation with the EU. Trade, Market Access and International Division (TMAID) acts as a conduit for members to facilitate delivering applications to the EU for breed accreditation, noting that the department cannot help with completing applications or influence the assessment / approval process.

Members and ABB discussed the incentive tariff for having a horse with a zootechnical certificate when it enters the EU. Mr Burke advised registered breeds and entire horses (stallion/filly/mare) pay value-added tax (VAT) but no duty tax. For all other horses both VAT and duty tax must be paid.

Dr Ellis requested more background on the definition of a registered breed and what impact being registered may have on the type of pre-export isolation required for horses transiting through the EU. ABB advised that the EU defines a registered equine animal / horse according to Regulation (EU) 2019/2035, article 2(30). For example, a registered thoroughbred or a horse registered with The International Federation for Equestrian Sports (FEI) would be considered a “registered” horse. The ability of a horse to meet this EU definition has a significant impact on the type of pre-export isolation required.
 
ABB’s assessment is that the legislation changes may make it more difficult for horses from the UK when transiting through the EU en route to Australia if they do not meet the EU definition of registered. Most UK horses have a passport with a pet registry which seems to be solving current issues, but new problems may emerge. It is now a case of meeting transit certificate requirements in addition to separate import requirements for horses travelling through the EU.  

ACTION ITEM 8: ABB to meet with LAE, ABIB and horse transport agents to discuss the changes in new EU legislation, including the impact of transit certificates and the EU registered horses definition.

ACTION ITEM 9: Dr Naylor (Live Animal Exports) to confirm the contact in Trade, Market Access and International Division (TMAID) for EU breed association accreditation and the secretariat to circulate the contact details to members.  

ACTION ITEM 10: Mr Burke (International Racehorse Transport) to provide feedback to ABB for which new EU export condition clauses were interpreted differently at EU Border Inspection Posts and may therefore cause issues.

Dr Daly and her team provided updates on the following 6 items (a through to f).

1. ABB staffing update
   Dr Maddison has joined the Companion Animal and Horse team. Dr Usher has returned from maternity leave and will be working from the Townsville office. Dr Chung is returning from maternity leave next week.
    
2. Glanders review for horse imports
   ABB has completed a draft of the glanders import conditions review, which is undergoing internal review. ABB will advise HICC members when the external comment period for the draft review commences.
   
   The review takes an evidence-based approach to glanders in order to determine the biosecurity risk to Australia through the importation of horses and their semen. Current global distribution trends, testing methodologies, internationally recognised biosecurity measures and a framework to assess country glanders freedom has been included in the review. The glanders import conditions review remains a priority for the team.
   
   Dr Gilkerson asked if ACDP’s current diagnostic testing and validation work was included in the review. ABB researched current and new testing methodologies but noted that there are many scientific reports of the development of tests, which have not yet been validated. As new tests are validated in the future, ABB will review these and consider their suitability for use as appropriate.
    
3. New Zealand piroplasmosis
   The department has assessed the information provided by New Zealand about their investigation of their piroplasmosis incursion. The department has accepted that New Zealand has demonstrated that they are again free from Theileria equi based on serological testing. The Ministry for Primary Industries (MPI) was notified of the department’s decision on Friday 7 May 2021. On this basis ABB will negotiate updates to the export health certificate to ensure the piroplasmosis import requirements appropriately manage the biosecurity risk.
   
   Mr Burke raised the point that the cost of piroplasmosis testing is significant, greater than $800 which is more than 10% of the transportation cost for each horse so industry would appreciate the new health certificate agreement being prioritised. ABB will work with ABIB to streamline piroplasmosis import conditions as soon as possible. ABB will update importers once the proposed new health certificate has been submitted to MPI. In the meantime, ABIB and ABB will consider interim equivalence arrangements to ensure trade can proceed efficiently.
    
4. Japan Olympics
   ABB advised the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF) have provided a lot of information about their equine piroplasmosis control measures for the 2021 Japan Olympics. MAFF have advised how they will ensure separation of horses and the planned tick controls. ABB have written to MAFF to propose piroplasmosis equivalence measures for horses returning from the Olympic games and are waiting for a reply. The main concern is for returning horses being able to meet Australia’s import conditions as the import conditions require premises freedom from piroplasmosis for the 60 days prior to export.
   
   Dr Gilkerson raised the European Equine Herpes Virus 1 (EHV-1) outbreak and the impact on the games. ABB advised that Australia’s import conditions do have a requirement for EHV-1 premises freedom. MAFF also has a 90-day premises freedom requirement for horses being imported into Japan for the games. If an equine disease outbreak occurred during the Olympics, the biosecurity risk would have to be assessed at that time and appropriate measures would be put in place.
    
5. Appendix B issues
   ABB explained the department is planning to update Appendix B certificates to be split into two parts:

6. 1. Owner/agent declarations about residency, preventative medicine/treatments, and disease testing, and
   2. the official veterinarian’s certification around the country’s health status declarations. The department is also developing a guidance document which will be translated into multiple languages. ABB have requested feedback from EU on this guidance document.
      
      In the recent EU health certificate changes, vesicular stomatitis was removed as notifiable and surra updated to be notifiable. This does not affect Australia’s import conditions where approved countries continue to have vesicular stomatitis as a notifiable disease based on national legislation. ABB have been communicating with approved countries to ensure this is the case. ABB asked importers to report if there are any Appendix B certification issues.
       
7. Export protocol negotiations - Philippines piroplasmosis
   ABB added this item to advise that the Philippines has responded to the proposed export health certificate for horses going to the Philippines and that they are happy to remove the requirements for piroplasmosis testing. ABB are liaising with the Philippines to finalise the certification requirements. Mr Croucher (EIAF) asked about the Japanese Encephalitis export requirements. ABB to take offline and follow up with exporters out of session.

ACTION ITEM 11: ABB to circulate the glanders review to members for comment when available.

ACTION ITEM 12: ABB to update importers when the proposed new import health certificate for horses being imported from New Zealand has been provided to NZ MPI.

ACTION ITEM 13: Importers to report to the department on any problems with obtaining Appendix B certification so the department can assist. This will also aid ABB in making updates to the Appendix B certificates.

Mr Burke asked if there was a scientific reason the EHV-1 neurological strain at the FEI event in Spain appeared to be more virulent. Dr Gilkerson explained that infected horses are lifelong shedders. A shedding horse allows the disease to spread well in competition conditions with high numbers of horses under stress in a small area with widespread dispersal of the horses after the event. Multiple points of breakdown in biosecurity is the norm in these situations rather than an increased virulence in the organism involved.  There is currently some sequencing being conducted in France following the Valencia outbreak. One particular nucleotide polymorphism in the sequence has not previously been described and may be used for ongoing monitoring to show if an infection originated from the Valencia outbreak or not.

Dr Forbes (Racing Victoria) raised Agenda Item 11 again and reported several bloodstock agents are upset about the cost of transit through the UK creating double tariffs since Brexit. 20% VAT has been placed on the value of the horse until the horse departs and this needs to be paid upfront. The money isn’t rebated until months later. Mr Burke confirmed there was a risk of money not being returned for multiple reasons. The whole bond would be lost if a horse died prior to being exported or came into the UK for quarantine but was injured and could not then leave the UK, or if there was a change of ownership, even just in part of a syndicate. Furthermore, it is at customs discretion, so they are not obliged to refund. There is an allowance for movement of animals to ‘graze’ which is being investigated by industry.

The Chair closed the meeting and discussed the timing of the next meeting. Members confirmed they would like a teleconference update on Action Items which could be held in November 2021. Members agree that this is useful and would like these teleconferences between annual meetings to continue. ABIB will look to schedule the follow-up teleconference toward the end of the calendar year accounting for horse industry events and priorities.

The next ‘full’ HICC meeting will be held in April/May 2022. The secretariat will provide a range of dates closer to the time. Location for this would be dependent on any COVID-19 restrictions at the time.

Action Items from this Meeting 24 were confirmed with members.  

The Chair thanked everyone for their attendance and closed the meeting.

ACTION ITEM 1: Further discussions to be had between the department and importers to investigate a way forward and/or appropriate contact/liaison for industry to assist in national coordination of travelling grooms for imports and exports of horses (due to COVID-19 travel restrictions).

ACTION ITEM 2: Secretariat to provide members with the new Notice to Industry for nasopharyngeal swabs and vials for equine influenza testing once finalised.

ACTION ITEM 3: PEQ Operations to engage with industry to discuss mutually agreeable solutions that improve the usability of the PEBS system or adapt a suitable system for horse imports.

ACTION ITEM 4: Mr Douglas (Finance Division) to find out more details on larger expenses this year (noted in the Biosecurity Cost Recovery Arrangement for Horses paper) and get back to members out of session.

ACTION ITEM 5: Secretariat to circulate the link to the department’s ‘Have your say’ page for CRIS.

ACTION ITEM 6: Mr Douglas (Finance Division) to provide additional updates to members on the offshore charging guidelines out of session.

ACTION ITEM 7: Ms Massa-Ward (Exports Division) to provide an update on release schedule to members at the next meeting or circulate details through the secretariat if information is available earlier.

ACTION ITEM 8: ABB to meet with LAE, ABIB and horse transport agents to discuss the changes in new EU legislation, including the impact of transit certificates and the EU registered horses definition.

ACTION ITEM 9: Dr Naylor (Live Animal Exports) to confirm the contact in Trade, Market Access and International Division (TMAID) for EU breed association accreditation and the secretariat to circulate the contact details to members.  

ACTION ITEM 10: Mr Burke (International Racehorse Transport) to provide feedback to ABB for which new EU export condition clauses were interpreted differently at EU Border Inspection Posts and may therefore cause issues.

ACTION ITEM 11: ABB to circulate the glanders review to members for comment when available.

ACTION ITEM 12: ABB to update importers when the proposed new import health certificate for horses being imported from New Zealand has been provided to NZ MPI.

ACTION ITEM 13: Importers to report to the department on any problems with obtaining Appendix B certification so the department can assist. This will also aid ABB in making updates to the Appendix B certificates.

ACTION ITEM 14: ABB to follow up with exporters regarding the Philippines export protocol.