Emergency Plant Pest Response Deed / Owner reimbursement costs
Owner reimbursement costs
Payment for defined costs or losses during a response plan
To contain the spread and eradicate an emergency plant pest (EPP), a property may need to be quarantined, certain crops to be destroyed or a grower may be required to undertake actions that are additional to their normal production practices (such as control measures or a forced fallow). Implementing these requirements often results in additional costs or potential losses to impacted individuals.
An agreed component of the EPPRD are Owner reimbursement costs (ORC). An ORC is a type of payment made under the EPPRD to an individual to reimburse them for specific defined costs or losses incurred following the implementation of a response plan.
Guidelines for owner reimbursement costs under the plant pest deed (Centre for International Economics, June 2004) provide an overview of the framework for calculating ORC payments for the plant industry sectors, with the provision of the EPPRD defining:
- what comprises an ORC payment
- who may receive a payment
- how cost sharing is applied
- and the general valuation and payment processes undertaken.
A crop sector specific evidence framework is also prepared to support a specific calculation of ORC payments for growers in an auditable, transparent and fair way.
More information is available in Framework for owner reimbursement cost determination.